Sajid Javid
Main Page: Sajid Javid (Conservative - Bromsgrove)Department Debates - View all Sajid Javid's debates with the HM Treasury
(11 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Andrew George (St Ives) (LD)
10. What progress he has made on implementing the housing market measures announced in Budget 2013.
The Economic Secretary to the Treasury (Sajid Javid)
The Government have made excellent progress in implementing the measures. For example, the Help to Buy equity loan scheme has helped 4,000 individuals and families reserve a new build home already and the Help to Buy mortgage guarantee scheme will be in place by January 2014.
Andrew George
In high house price and low wage areas such as mine, where four times more properties are sold to second home buyers than to first-time buyers, intermediate market solutions—shared equity and affordable homes with section 106 planning restrictions—are often the only way for local families to get a toe on the housing ladder, yet the equity loan scheme does not have the rules to enable them to take advantage of it. Will the Government reconsider the rules to help local people in such circumstances?
Sajid Javid
My hon. Friend is right to raise that issue. He will have upmost in his mind the fact that under Labour, house building fell to its lowest levels since the 1920s. The Government are supporting hard-working households who have saved but who do not have a large deposit from the bank of mum and dad to help in buying their own home. The Help to Buy equity loan scheme he mentioned will help 74,000 families and has already helped 4,000. My hon. Friend will be pleased to know that 20% of the £1.8 billion of additional funding we have promised for affordable homes will go to shared ownership.
John Cryer (Leyton and Wanstead) (Lab)
Will the Help to Buy scheme help to increase the supply of housing? I am not talking about buying capacity; will it specifically increase the supply of housing?
Sajid Javid
The short answer is that it most certainly will, and it has been welcomed by the Home Builders Federation. I am pleased that the hon. Gentleman is now concerned about the issue. House building fell to its lowest levels since the 1920s under the previous Government. The number of affordable homes decreased by 421,000 over 13 years and local authority waiting lists almost doubled from 1 million to 1.8 million under Labour—a shameful record.
Ian Mearns (Gateshead) (Lab)
12. What recent estimate he has made of the rate of increase of average earnings compared to the rate of consumer price inflation.
The Economic Secretary to the Treasury (Sajid Javid)
The best way to deal with today’s cost of living challenges is to have paid employment. In 2012, the number of people employed in the UK has risen faster than most of our competitors, including the US, France, Germany and Japan. As a result, household income has risen by 2.1% more than consumer prices over the past year.
Ian Mearns
Despite what the Minister has just said, the Office for Budget Responsibility says that living standards for many will be lower in 2015 than they were in 2010. Is it not the case that, while the rich and super-rich benefit from tax cuts, working people and their families are worse off? Is not the truth that we are not all in it together?
Sajid Javid
No, certainly not. I am pleased that the hon. Gentleman is concerned about this issue. The hon. Gentleman became a Member of Parliament in 2010, and he will know that in the last term of the stewardship of the previous Government, his constituency saw paid employment fall, and unemployment rise by a staggering 67%. Paid employment is the best way to raise living standards, and 1.3 million new private sector jobs have been created in the past three years. More people are in employment than at any other time in the history of this country.
Nadhim Zahawi (Stratford-on-Avon) (Con)
On living costs and standards, can my hon. Friend tell me how much more my constituents would have to pay to fill a tank with petrol if we had adopted the previous Government’s fuel price rises?
Sajid Javid
My hon. Friend highlights an important point. We scrapped Labour’s fuel duty escalator; we have frozen their escalator. Petrol prices are 13p per litre lower than if we had kept the policies of the previous Government.
Huw Irranca-Davies (Ogmore) (Lab)
Does the Minister see any correlation between wages being £1,300 a year less than they were at the time of the election and the number of people who are in work turning up at food banks?
Sajid Javid
What I see is jobs being created in the private sector at a record rate in this country—1.3 million jobs in the past three years; a faster rate of job creation than any other G7 country last year. If the hon. Gentleman really cared about his constituents, he would welcome that.
Charlie Elphicke (Dover) (Con)
What has the effect been of Government policies not just on petrol but on keeping interest rates low, freezing council tax, cutting income tax and helping pensioners?
Sajid Javid
My hon. Friend has raised the issue of interest rates. If we had not had a credible policy to deal with the record budget deficit that the previous Government left behind, interest rates would be a lot higher. In fact, in the last Budget delivered by them, interest payments on Government debt would have been £30 billion higher in this Parliament. If interest rates were just 1% higher, mortgages would rise by almost £1,000 a year for the average household.
John Pugh (Southport) (LD)
13. What assessment he has made of the role of community budgets in improving the efficiency of public expenditure; and if he will make a statement.
Sir Bob Russell (Colchester) (LD)
It is the Government’s policy that, to cover cutting the Army to its smallest size since the battle of Waterloo, people should be encouraged to join the reserves. Leading by example, will the Chancellor of the Exchequer say how many members of his staff have joined the Territorial Army since January this year?
The Economic Secretary to the Treasury (Sajid Javid)
I can tell the hon. Gentleman that the answer is none. He is passionate about the issue, which he has raised before. I can also confirm that the Treasury implements the policy of the Government—to make sure that all reservists who request a 10-day special leave on a paid basis get it.
Stephen Timms (East Ham) (Lab)
On infrastructure investment, there is widespread disquiet—including in the National Audit Office, it seems—about the management of the Government’s broadband investment programme. Does the Chancellor agree that it is essential to harness competition effectively in delivering infrastructure investment?