Iran-Israel Update

Debate between Rishi Sunak and Seema Malhotra

Monday 15th April 2024 Commons Chamber

[The Prime Minister]

I am happy to reassure my right hon. Friend that, as we speak, we are in active dialogue with our international partners, following yesterday’s G7 call, to co-ordinate further diplomatic measures to contain the threat from Iran.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

The core issue now must be de-escalation, an immediate ceasefire on all sides to end the devastating situation in Gaza, and a political solution for the long term. UNRWA is arguably the single biggest multilateral tool to support a political solution, and it is unmatched in its administrative ability to deliver aid. The UK stands behind other countries in not renewing funding to UNRWA. Further to the question of my hon. Friend the Member for Battersea (Marsha De Cordova), will the Prime Minister set out a clear path for funding to resume?

[The Prime Minister]

I refer the hon. Lady to my previous answer. I do not think it is right to say that we are behind other countries. We are in active dialogue with other countries on the approach to UNRWA. We recognise the operational and logistical role it plays on the ground while recognising the very shocking concerns that we all had about what happened previously. It is right that we take the time to get our future approach to UNRWA right.

Economy Update

Debate between Rishi Sunak and Seema Malhotra

Thursday 26th May 2022 Commons Chamber

[Rishi Sunak]

I thank my hon. Friend. What I would say to him is that I believe that a pragmatic and compassionate Conservative Government would act to provide support to the most vulnerable at a time of great need and that a fiscally responsible Conservative Government would look to try to fund as much of that as possible in as fair a way as possible.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Recent research by 38 Degrees has shown that in Feltham and Heston, 68% of the population are experiencing more expensive energy bills, 78% are experiencing more expensive groceries and 25% have seen household incomes cut by the cut to universal credit. That has had a massive impact on the wellbeing of families and their confidence in the future, and in being able to feed and clothe themselves and pay their rent. Landlords in blocks such as Trinity Square in my constituency have massively increased tenants’ energy bills. Can I take it from the Chancellor’s answer to my hon. Friend the Member for Brighton, Kemptown (Lloyd Russell-Moyle) that he will ensure that landlords and housing associations pass on the benefits to the hard-working families that urgently need the support?

[Rishi Sunak]

I am fairly certain that my colleagues the Energy Secretary and Housing Secretary previously engaged with landlords’ associations to ensure that they passed on the benefit and I am happy to talk to them to make sure that they do the same thing again.

Financial Statement

Debate between Rishi Sunak and Seema Malhotra

Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

I thank my right hon. Friend for his warm words of support, and I can reassure him that we keep everything under review. We have stood by the British people over the past few years, and we will continue to stand by them. It is thanks to the responsible decisions of this Government that we are able to provide the support that is required when the times call for it.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Consumer spending is vital to the growth of our economy in the aftermath of the pandemic, but with inflation at its highest level for 30 years—the Chancellor has seen the data—consumer confidence is declining, hitting our small businesses hard and setting back their recovery from the pandemic. Why on earth is the Chancellor not fully U-turning on his rise in national insurance contributions at this time—a rise that the Government themselves have admitted will increase inflation and decrease spending power?

[Rishi Sunak]

The hon. Lady may not realise that for 70% of people, this is more generous than doing what she suggests. Those people will pay less tax as a result of this policy as opposed to the one that she advocates, and I believe that it is the right policy. We are on the side of hard-working people, and this will help them at a time when they need that help.

Economic Update

Debate between Rishi Sunak and Seema Malhotra

Wednesday 8th July 2020 Commons Chamber

[Rishi Sunak]

I am very happy to accept my hon. Friend’s invitation. He is absolutely right. The best way for us to provide opportunity for people is to give them the skills and the education they need, whether through universities, institutes of technology, further education, schools or apprenticeships. Providing people with that knowledge is what will enable them to build a better future for their lives. That is something that he and I both feel very passionately about. We will, as a Government, deliver that.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op) [V]]

I am genuinely surprised that the Chancellor has not today brought forward a flexible furlough scheme for aviation, which he knows will have a longer recovery tail. I hope that, as he keeps in touch with the industry, he will also keep in touch with MPs from aviation communities for place-based support. He is right that young people and others will need support and access to jobs, and I welcome the kick-start scheme. However, with experts estimating that over 30,000 work coaches are needed and unemployment in the sector set to hit a record high in October, the Secretary of State for Work and Pensions expects 4,500 new work coaches to be in place by then. Is the Chancellor concerned that there will not be enough in place to meet demand when we most need it, and what more does he think can be done?

[Rishi Sunak]

I commend and applaud all the efforts the Work and Pensions Secretary and her team are doing at the moment. Just for reference, they are doubling the number of work coaches and doing it in record time. We will have 13,500 in just eight months—a 100% increase. It is worth comparing that to what happened in 2008-09, when the Department for Work and Pensions recruited just 10,000, a 60% increase, which took 12 months. We will go as fast as is necessary, but no one can accuse us of not doing as much as we can, as quickly as we can, to provide people with the support that they need.

Economic Update

Debate between Rishi Sunak and Seema Malhotra

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

Hopefully it will benefit today from the significant measures that have been put in place to provide forward business rate relief and immediate cash support through grants. That should provide the business with some reassurance that help is on its way to enable it to protect jobs, with more to come.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Yesterday a constituent of mine was laid off from his employment, along with 50 colleagues. He described how he watched the company’s owners trying to hold back tears as they let go people who have worked for them for decades. Why will the Chancellor not cut off this problem at the root by providing to British businesses the same reassurance that President Macron has provided to French businesses: that no business will go bankrupt?

[Rishi Sunak]

As I have already said, the French Government announced €300 billion of loan guarantees yesterday. We have gone a step further with £330 of loan guarantees, equivalent to 15% of our GDP, to provide the same level of support. Beyond that, the fiscal measures that we have taken between last week and today are comparable in scale to those undertaken by any major economy.

Budget Resolutions

Debate between Rishi Sunak and Seema Malhotra

Thursday 9th March 2017 Commons Chamber

[Rishi Sunak]

I am not sure that I recognise the right hon. Gentleman’s figure. The schools budget has been protected, and the Government are rightly consulting on the iniquity in the current funding system which means that constituents in my rural area are worse off to the tune of hundreds of pounds per pupil compared with very similar pupils in other parts of the country. I am delighted that the Government are addressing those iniquities in their consultation.

[Seema Malhotra]

Will the hon. Gentleman give way?

[Rishi Sunak]

If the hon. Lady does not mind, I will make some progress and come back to her.

I begin with small businesses. My predecessor, Lord Hague, has a well-documented enthusiasm for beer, so it will come as no surprise to Members that pubs are a cornerstone of my rural constituency’s economy. Following in his footsteps is difficult enough, but it is impossible for me to visit a pub in my constituency without seeing a picture on the wall of William pulling a pint with the landlord. Not only is my constituency home to more than 200 pubs, but I am proud to say that it hosts the Campaign for Real Ale’s 2017 pub of the year: the community-owned George & Dragon in Hudswell. I was delighted to be in Hudswell just last Friday when the landlord Stu Miller, his family and team received their award in the loud company of everybody from the village.

In recent months I, like many other hon. Members, raised concerns that the revaluation of business rates risks penalising such small, enterprising businesses. I am delighted to say that this was the Budget of a Chancellor who, like any good barman, listens to our concerns. For the landlords who run them, the jobs that depend on them and the communities that enjoy them, this Budget’s £1,000 business rate discount will make a real difference to many pubs at a time when money is still tight.

But pubs are not the only rural businesses that the Budget will help. Auction marts and livery yards across North Yorkshire have seen particularly steep rises in their business rates because the idiosyncrasies of such companies are not well understood by officials and because the last revaluation coincided with the disastrous foot and mouth epidemic. Such idiosyncrasies are more than even the most ingenious civil servant could be expected to foresee. Auction marts, livery yards and riding schools are particularly important to the fabric of our rural community, so I thank the Chancellor for the extremely welcome creation of the new £300 million discretionary business rates fund, which will put decision making back in the hands of communities and allow businesses in constituencies such as mine to benefit from the local knowledge of councils in ensuring a smooth transition to the new schedule.

[Rishi Sunak]

What I say to customers and to the hon. Gentleman is that I am sure that the Minister doing the wind-up will be able to say how much better off customers are from having benefited from several years of freezes in beer duty that would otherwise have been put in place. I am sure they would also like to hear that this Government will be consulting on new duty rates for white cider and still wine to see what more could be done to help customers who drink those alcoholic beverages. Lastly, let me say that I would welcome him back to my constituency any time and will be happy to share a pint with him next time he is there.

[Seema Malhotra]

I have not yet been to a pub in the hon. Gentleman’s constituency, but I recognise the benefits for pubs in my constituency. May I extend the question about customers in pubs, many of whom may be self-employed? Have they reflected with him on their concerns about the proposed rise in national insurance?

[Rishi Sunak]

I thank the hon. Lady for raising that issue. If she will allow me, I will deal with that exact point later in my speech.

The last measure in support of local businesses that I wish to highlight is the £690 million fund available for local authorities to address urban congestion. Congestion is not something one would ordinarily associate with the rural idyll of North Yorkshire’s villages and market towns, but the residents and community of Northallerton are relentlessly frustrated by the level crossing near our vibrant and diverse high street, as its impact on local business is substantial. I have convened meetings of local authorities and Network Rail to discuss plans to alleviate the congestion, and I very much hope the Chancellor’s new fund can help us.

As the Chancellor so rightly pointed out in his Budget speech, supporting our businesses is a means to an end, not an end in itself. If our children are to benefit from the more than 2 million new jobs created since 2010, they will need the right skills. The 2.4 million apprenticeships created in the last Parliament are a momentous achievement, but we must also recognise that although most of us think of apprentices as young people, 16 to 19-year-olds—school leavers—account for less than 10% of the increase in new apprentices. That means that too many school leavers are still sticking with an inappropriate classroom education rather than a first-class technical one. The Chancellor’s announcement of new T-levels is a crucial step in redressing the balance and closing for good the gap between the classroom and the factory floor, for which our economy has paid a high price for too long. I therefore welcome the new half a billion pound investment in increasing training hours, the streamlining of technical qualifications, the provision of high-quality work placements and the introduction of maintenance loans. Taken together, that is a powerful package to help to ensure parity of esteem between technical and academic education.

Yet I also urge Ministers to continue to look carefully at my campaign, supported in the recent industrial strategy, to create a UCAS-style system for apprenticeships. This branded, one-stop-shop portal would not only end the classroom divide between those applying to university and those applying for apprenticeships, but, by bringing everything together in one place, help businesses to connect more easily with young apprentices in schools.

Turning to national insurance, I, like many Conservative Members, have always believed in low taxes as a spur to economic growth, but when a Government inherit a deficit of £100 billion the greatest priority must be returning to sound finances and doing so in a way that is fair. I believe it is right that those who benefit from public services make an appropriate contribution to paying for them, and that is what this Budget’s changes to national insurance will ensure. Sixty per cent. of self-employed workers—those earning less than £16,000—will see a decrease in their national insurance contributions as a result of the removal of the regressive class 2 band. Workers earning up to almost £33,000 will be no worse off when these changes are taken together with the increases to the personal allowance, and for those earning more the average increase in contributions will be a few hundred pounds. It is right to ask: is this fair? I believe that it is.

Historically, different rates of national insurance for the self-employed and the employed reflected significantly different benefits and access to public benefits, but that difference is no longer there. Indeed, changes to the state pension, which is partly funded by national insurance, mean that self-employed workers now benefit from an extra £1,800 annually in pension—this is something they would need to save up to £50,000 for to receive in the private sector. Similarly, self-employed couples starting a family can now benefit from almost £5,000 in tax-free childcare support.

In this House, I always hear calls for investment in public services, such as this Budget has provided for in social care, but those investments need to be paid for. Her Majesty’s Revenue and Customs has estimated that it is losing about £5 billion a year from the increasing trend of self-employment, so it is right that we make small changes to ensure that everybody contributes to the public services and benefits we value. It is important to recognise that even after these changes the tax system will still recognise the particular issues faced by self-employed workers and will favour them in its tax rates and treatment. They will benefit from a lower rate of national insurance than employees; they will still not bear the cost of employers’ national insurance, which is levied at a substantial 13.8%; they will still have the ability to offset losses and gains over years; and they will still benefit from a more generous treatment of tax-deductable expenses. I am also encouraged that in the longer term the Government are committed to looking at the whole issue of the increasing trend towards self-employment, and to ensuring that we reflect those changes in the economy in our tax system and ensure that everybody is treated fairly. This small change is thus necessary to protect the things we value, and it is fair and proportionate.

In conclusion, we have all learned to be a little cautious of economic forecasts, but if the Office for Budget Responsibility is right, the first students to sit their T-levels will do so in a country with 1 million new jobs, double today’s productivity growth and, for the first time in two decades, national debt falling as a percentage of GDP. This Budget, like the ones that came before it, is building a country where our businesses will not have to pay for the profligacy of the past and our children can look forward to a bright future. Nothing could be more important than that, so I commend this Budget to the House.