Sajid Javid
Main Page: Sajid Javid (Conservative - Bromsgrove)Department Debates - View all Sajid Javid's debates with the HM Treasury
(5 years, 2 months ago)
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Helen Hayes (Dulwich and West Norwood) (Lab)
The Chancellor of the Exchequer (Sajid Javid)
We would prefer to leave with a deal, and we continue to work energetically and determinedly to get a better deal, but the Government are turbo charging their preparations to ensure we are ready to leave without a deal on 31 October. All necessary funds have been made available. The fundamentals of the British economy are strong: real wages are growing; employment is at a record high; and unemployment is at an historic low.
Rushanara Ali
The Government’s Yellowhammer document, or base case scenario, states that there will be job losses, that food supplies will decrease and that financial services and law enforcement data and information sharing will be disrupted. Last night, we heard about customs clearance zones in Ireland and Northern Ireland, and the Brexit Secretary has admitted that there is insufficient time to complete the work. The Government spent £100 million on a PR campaign called “Get Ready for Brexit”. Is it not time that the Chancellor admitted that the Government are far from ready for Brexit and instead are heading for causing chaos in our country?
Sajid Javid
The hon. Lady will appreciate that the uncertainty around Brexit has caused businesses significant concern. They want to see the Government deliver Brexit and leave on 31 October, and that is what we will do. Significant preparations have been made for a no deal, including trade agreements reached, increases in personnel at Border Force and more than 600 statutory instruments laid in this Parliament. If she wants to help, she should support the Government in getting a deal.
Helen Hayes
There is evidence of a rise in short positions being taken out against the pound. Is the Chancellor confident that the hedge funds taking those short positions, some of which donated to the Prime Minister’s leadership campaign and the Conservative party, have no inside information about the planning or timing of a no-deal Brexit?
Mr Philip Hollobone (Kettering) (Con)
If we leave the EU without an agreement, do we get to keep the £39 billion?
Sajid Javid
The figure of £39 billion is based on a deal. If we end up leaving with no deal, that £39 billion number is no longer relevant.
Charlie Elphicke (Dover) (Ind)
Is the Chancellor aware that the chief executive of the port of Dover has said that we are 100% ready to leave the EU, and will he help that readiness by bringing forward plans to dual the A2 to the port of Dover?
Sajid Javid
I thank my hon. Friend for drawing the House’s attention to this issue. I am aware of that. I know, for example, that the investment the Government have made through Border Force, including the extra officers, is helping, and I am confident that in all circumstances we can keep trade flowing.
David Linden (Glasgow East) (SNP)
Sajid Javid
We do not know that at all. That is just scaremongering from the Scottish National party. We know that businesses throughout the UK, including in Scotland, want this uncertainty to end and want us to leave on 31 October.
John Stevenson (Carlisle) (Con)
Does the Chancellor agree that if we were to leave with no deal, there could be a potential economic impact on our European partners and that therefore it is as much in the EU’s interests to reach a deal as it is in ours?
Sajid Javid
My hon. Friend has made an important point: it is in everyone’s interests—ours and our European friends and partners—that we reach a deal. Intensive negotiations are going on, both with the Irish Government and with other European partners, and there is a very strong recognition that it is in all our interests that we reach a deal.
Sir Edward Davey (Kingston and Surbiton) (LD)
Is the Chancellor aware that the Office for Budget Responsibility’s alarming fiscal analysis of a no-deal Brexit assumes that the Government’s preparations are successful—and so result in a miraculously benign no-deal Brexit—and that even with this least-damaging no-deal Brexit the OBR predicts a hit to Britain’s finances that would destroy every single spending announcement by the Prime Minister and the Chancellor? Given that, is it not unacceptable for a Chancellor in a Government publicly contemplating a no-deal Brexit to fail to tell the truth to the British public that spending on health, schools and police will be slashed in the event of a no-deal Brexit?
Sajid Javid
First, I do not recognise that picture at all. It has been made up by the Liberal Democrats. Secondly, the right hon. Gentleman talks about what is unacceptable. What is unacceptable is for the Liberal Democrats to pretend that the referendum on the European Union never happened.
Kirsty Blackman (Aberdeen North) (SNP)
We have heard in the media today that the UK Government will have proposals ready to send to the EU by the end of the Tory conference this week. The Prime Minister’s main negotiating strategy seems to be to convince the EU that we are willing to accept no deal, and hope that it will capitulate at the last minute. Can the Chancellor name one occasion on which the EU has folded at the last minute in international negotiations?
Sajid Javid
Can the hon. Lady name a single negotiation in which we have not had the ability to walk away, out of the room?
Kirsty Blackman
These are supposed to be questions to the Chancellor, not to me.
Businesses are not ready for a no-deal Brexit. They are already losing EU workers, and are closing down as a result. In a no-deal Brexit, they will be hit by tariffs, and many more of them will sink as a result of that. People will lose their jobs. Given that there is now less than a month until Brexit day, does the Chancellor really believe that there is time to negotiate a deal? If not, will he ensure that the Prime Minister respects the law and requests an extension?
Sajid Javid
Significant work is going on to prepare the whole country for a potential no-deal outcome, and that includes helping businesses. I have allocated an additional £2.1 billion on top of the £2 billion that was already there, and that means that we can do much more to help businesses, including sending them more than 750 communications on preparedness and more than 100 technical notices.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
The Government’s current policy is that we can have higher public spending, falling debt and a no-deal Brexit, but those three things are impossible to deliver together, so on which of them are the Government not telling the truth?
Sajid Javid
The Government are focused on leaving the European Union on 31 October. We are trying to do that with a deal, but if we do not, we will leave with no deal. The hon. Gentleman talks about the Government’s policy. At least this Government have a clear policy on Brexit; what is the policy of the Labour party?
Mr Peter Bone (Wellingborough) (Con)
Alison Thewliss (Glasgow Central) (SNP)
The Chancellor of the Exchequer (Sajid Javid)
The recent spending round has delivered the fastest real growth in day-to-day spending in 15 years, targeting additional money on the people’s priorities of healthcare, education and tackling crime. We will publish alongside the next Budget an analysis of how these spending changes are distributed.
Alison Thewliss
We on the SNP Benches welcome the Chancellor’s announcement on his pretendy living wage, because we have been calling for it for four years, but his promises still fall 5p short of the London living wage today, never mind in 2024. A 16-year-old today would have to wait five years to be entitled to it. Will he end the state-sanctioned age discrimination of his pretendy living wage, so that all people, regardless of age, can receive a fair day’s pay for a fair day’s work?
Sajid Javid
I welcome the hon. Lady’s support. It was this Government who introduced a national living wage in 2016. It was this Government who increased the rate, as recently as April this year. The announcement that we have made, which I will have more to say about later, will help to end—actually will end—low pay for good in our great country.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
The best way to improve living standards is to reduce tax burdens. Does the Chancellor share my concern that anyone in Scotland earning more than £27,000 is paying more than the equivalent English taxpayer, and that more than 1 million Scots are paying £500 million in extra taxation?
Sajid Javid
I believe the First Minister actually promised not to raise taxes, but in fact the SNP has raised taxes on more than 1 million Scots. Doctors, teachers and police are all paying more in Scotland than in any other part of the UK. Scotland is now the highest-taxed part of the UK, and the Scottish people will remember that at the next Scottish elections.
Chris Evans (Islwyn) (Lab/Co-op)
Since this Government came to power, they have relied heavily on monetary policy. The Chancellor of the Exchequer will know that quantitative easing and interest rates have now been cut to the bone. Is he concerned by noises coming from the Bank of England that interest rates could rise, and the effect that that would have on heavily indebted middle-income families?
Sajid Javid
The hon. Gentleman should know that the Bank of England is independent, and therefore monetary policy decisions are independent. I know that his friends on the Opposition Front Bench do not recognise or respect that, but it is a very important part of our economic system.
Sir Mike Penning (Hemel Hempstead) (Con)
The Chancellor will know that one of the Government’s fiscal policies that is fundamentally wrong is the loan charge retrospective taxes on our constituents. Whether it is one death, no deaths or seven deaths, families are being destroyed because of the retrospective charge. Surely we should put a stop to it now.
Mr Speaker
Order. The matter in hand is the effect of fiscal policies on living standards.
Sajid Javid
Well, it is fiscal policy, Mr Speaker, in the interests of my right hon. Friend, and he is right to raise the matter. He will have heard the Financial Secretary to the Treasury, in answer to the previous question, point to the independent inquiry that is taking place, led by a gentleman who has considerable respect. We will await the outcome of that inquiry.
Peter Dowd (Bootle) (Lab)
The effects of the Government’s fiscal policies on living standards have been devastating, especially for vulnerable people, so is it still Government policy to remove the benefits freeze in April 2020?
Sajid Javid
The hon. Gentleman talks about the Government’s fiscal policy, which is a core part of our overall economic policy, and it is that policy that has led to a jobs boom, with 3.7 million more people in work since 2010, and over 1 million fewer working households in our country living in poverty. The real threat to the living standards of working people is the agenda of the Labour party.
Peter Dowd
It would have been helpful to get an answer to the question. We have a Prime Minister who cannot be candid even with the Queen, a Health Secretary who claims there will be 40 hospital rebuilds when in fact it is just six reconfigurations, and a Chancellor who worked at a senior level for a bank that a US Senate Committee found had caused
“material damage to ordinary people and the wider global economy”.
Why would anyone believe a word that this self-serving Government say? They are led by a Prime Minister who, many claim, believes that telling the truth is an illness to be avoided.
Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)
Neil Coyle (Bermondsey and Old Southwark) (Lab)
The Chancellor of the Exchequer (Sajid Javid)
The Government remain committed to ending rough sleeping. That is why I announced £54 million of new funding to reduce homelessness and rough sleeping in last month’s spending round, following on from discussions with my right hon. Friend the Housing Secretary, which will take total resource funding to £422 million next year.
Neil Coyle
It has been revealed today that two rough sleepers died on the streets every day last year. The Government committed to halving rough sleeping by 2022, but their own guesstimate is that it fell by only 74 people last year, not the 500 required for them to be on target. That puts them three decades behind schedule, so when will the Treasury provide councils and homelessness charities with sufficient funds to properly tackle this national shame?
Sajid Javid
This is an important issue, and I am glad that the hon. Gentleman has raised it today. He will know that there are multiple causes of rough sleeping, which means that we need action across Government. That is why the Government have set out a rough sleeping initiative to deal with the causes, such as mental health, family breakdown and addictions. I think he will appreciate that we need cross-Government work. That needs to be properly funded. The £422 million that I referred to a moment ago is a 13% real-terms increase, and it will end rough sleeping by 2022.
Lyn Brown (West Ham) (Lab)
Many people going to work today, not just in London but in cities and towns across England, will have seen at least one fellow citizen sleeping rough. Eight thousand beds have been lost, universal credit has cost tenants their homes, and as we have heard, 726 people died on the streets last year. Charities say that the funding gap is £1 billion. The Chancellor has said that ending rough sleeping is in our gift, but how many more of our fellow citizens will have slept on our streets before he delivers?
Sajid Javid
I hope that the hon. Lady welcomes the extra resources being put into fighting homelessness and rough sleeping—as I said, a 13% real-terms increase. She might recall that when I was Housing Secretary, we introduced new programmes to deal properly with rough sleeping, for example the Housing First pilots that are taking place in three parts of our country and showing real resource. We are starting to see falls in rough sleeping for the first time in a number of years, and I think the British people would appreciate cross-party co-operation on this very important issue.
Robert Halfon (Harlow) (Con)
Daniel Zeichner (Cambridge) (Lab)
The Chancellor of the Exchequer (Sajid Javid)
Treasury Ministers regularly engage with Secretaries of State on all aspects of public funding, including 16 to 19 education funding. At the spending round, we chose to invest £400 million more in the sector next year, which will mean that the base rate of funding will rise to £4,188 and be growing at a faster rate than core school funding.
Daniel Zeichner
Away from the fantasy figures being peddled in Manchester this week, college heads and principals are struggling to work out whether to continue to raise their class sizes or to restrict subject choice. Will the Chancellor therefore tell Cambridge Regional College and the excellent sixth forms and sixth-form colleges in Cambridge whether they are going to be getting the extra £760 that the Raise the Rate campaign has calculated is necessary or the meagre £188 per pupil per year he is offering?
Sajid Javid
The hon. Gentleman might call these fantasy figures, but this is the biggest increase in funding for 16 to 19-year-olds in a decade, and it has been hugely welcomed by the sector. It includes £212 million of targeted interventions, on the courses that are the most costly to deliver, such as engineering and construction. I would have thought he would have welcomed that.
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
Sajid Javid
My hon. Friend will know that in the spending round I announced a £4.6 billion increase in school spending. I know that he has campaigned on funding for his local schools and can tell him that 80% of the secondary schools in his area will see their funding level go up to at least the new minimum level of £5,000 per pupil.
Huw Merriman (Bexhill and Battle) (Con)
Christine Jardine (Edinburgh West) (LD)
The Chancellor of the Exchequer (Sajid Javid)
I have three clear priorities as Chancellor: to ensure a strong economy, to get Brexit done and to deliver on the British people’s priorities. That is why I am pleased to confirm that this Government will bring an end to low pay. We are setting two new targets for the national living wage over the next five years: raising it to two thirds of median earnings and extending it to workers aged 21 and above. That will give 4 million workers an average pay rise of £4,000. I will set out further details in the next Budget. This Government are proving again that they are on the side of working people. Thanks to the hard work of the British people, we are moving from a decade of recovery to a decade of renewal.
Christine Jardine
When the Chancellor was Home Secretary, he told me and other More United MPs that officials were looking into the potential economic benefits of lifting the ban on asylum seekers working, which the Lift the Ban coalition says would bring £42 million into the economy. Now that he is Chancellor of the Exchequer, will he lift that ban in order to allow asylum seekers such as those in my constituency to contribute to the economy and to have the dignity that they deserve?
Sajid Javid
The hon. Lady makes an important point, and I am glad that she has brought my attention to it again. As Chancellor, I want to ensure that across Government every Department is doing its bit for the economy. Some of the people she is talking about will be vulnerable people and the current rules are worth looking at again. It is something that the Home Office is taking very seriously.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
John McDonnell (Hayes and Harlington) (Lab)
Will the Chancellor give the House a quick fact-check of his speech yesterday? The Conservatives have cut funding for buses by £640 million a year. Yesterday, he announced nothing new; he simply reannounced £220 million from the spending review. His Government have cut £900 million a year from annual youth services budgets. Yesterday, he offered £500 million, possibly as a one-off. The National Infrastructure Commission says that we need £33 billion to roll out full-fibre broadband. Yesterday, he offered £5 billion. All of those promises will count for nothing if there is a no-deal Brexit. Has he not just followed the Cummings code: grab a headline, possibly wrap it around a bus and ignore the truth? But there is one figure that I would like to ask him about: 120,000. What significance does the figure 120,000 have for him?
Sajid Javid
The right hon. Gentleman knows that the last time his party was in office, we had the biggest budget deficit in our peacetime history and the biggest banking collapse this country has ever seen, and our country was virtually bankrupt. Now our economy is strong, with the lowest unemployment rate in 45 years, and it is because the economy is strong that yesterday I could make the announcement of investments in buses, roads, youth facilities and full fibre. If he wants to see that kind of investment continue at the next general election, he should vote Conservative.
John McDonnell
I did not ask about the Chancellor’s record at Deutsche Bank; I never asked about the products he was selling that brought about the financial crash.
Let me tell the Chancellor what the figure 120,000 means. It is the number of deaths linked by the British Medical Journal to the Conservatives’ cuts since they came to power in 2010. No amount of spin will wash away the memory of nine years of this scale of human suffering. He claimed yesterday:
“We believe in a society where everyone knows that if they work hard, and play by the rules then they will have every opportunity to succeed.”
But isn’t it true that the Conservatives have broken the link between people working and being able to lift themselves out of poverty, when 70% of our children living in poverty are in households where someone is at work? And isn’t it the case that, despite the Chancellor’s pathetic attempt yesterday at playing catch-up to Labour party policy, under the Tories’ plans no one will reach the Tories’ target minimum wage until five years from now? And isn’t it the truth that, with this Chancellor and Prime Minister in charge, the Conservatives will always be the party of tax avoiders, bankers and the super-rich?
Sajid Javid
Let me tell the right hon. Gentleman a fact: the Labour party no longer represents working people and it is no longer the party of working people. That stopped a long, long time ago. He should reflect on his own policies of renationalisation; mass confiscation of private property, including the shares and homes of individual investors; protectionism; and state control. He calls business the real enemy, but the fact is that the Labour party is no longer fit to govern. It would wreck the economy and it would be hard-working people who would pay the price.
Amber Rudd (Hastings and Rye) (Ind)
I have had heartbreaking meetings with constituents from Hastings regarding the loan charge, where I have heard tragic and sad stories about the destruction of families and their finances. Although I of course welcome the review that is to take place, may I urge the Chancellor to reconsider the position of not suspending the loan charge during the review period?
Sajid Javid
I share the hon. Gentleman’s desire to ensure that all parts of our great country are benefiting from our strong economy. We have seen a jobs boom since 2010, after the deepest recession in our peacetime history under the previous Labour Government. Of the 3.7 million jobs that have been created, 65% are outside London and the south-east, which will be benefiting his communities and so many more.
Andrew Jones (Harrogate and Knaresborough) (Con)
One of the ingredients of economic growth—we have talked about boosting small businesses—is improving the productivity within the economy. What are the ministerial team doing to boost productivity?
Jessica Morden (Newport East) (Lab)
Sajid Javid
I will make certain that the Business Secretary is aware of the hon. Lady’s concerns. The Treasury obviously takes an interest in this issue but she will know that the Department for Business is taking the lead on it. Obviously, and rightly, she is concerned about jobs in her constituency. She would welcome the fact, I hope, that because of the policies of this Government more generally since 2010, we have seen in her constituency a 50% fall in the headline unemployment rate.
Greg Clark (Tunbridge Wells) (Ind)
As we leave the EU, we need to reinforce our international reputation as a powerhouse of scientific excellence. In 2017 we spent 1.7% of national income on research and development, while Germany spent 3% and Israel 4.3%. So will the Chancellor use his next Budget to make substantial progress towards our 2.4% target and recommit to the medium-term target of 3% of national income going into research and development?
Sajid Javid
First, may I thank my right hon. Friend for his excellent work as Business Secretary, including in this hugely important area of research and development? He set some ambitious targets. We intend to stick to those targets, if not go even further, which I am sure he would welcome. Obviously I will not set out the Budget now, but I absolutely share his ambition, and I think he will be pleased with what we eventually do.
Rachael Maskell (York Central) (Lab/Co-op)
Sajid Javid
We are investing in York and investing throughout the country by creating a dynamic, free enterprise economy that is creating jobs. We have the lowest unemployment rate in our country in 45 years. I would think that a party that calls itself Labour would actually welcome that. In the hon. Lady’s own constituency, since 2010—since the Labour Government were kicked out—we have seen a fall of 12,300, or 64%, in the unemployment numbers. That is something she should welcome.
Kevin Hollinrake (Thirsk and Malton) (Con)
I welcome the introduction of the new business banking resolution service that will start to hear cases of historical problems later this year. In the previous Chancellor’s letter of 19 January, he stated that that scheme should carefully consider all cases that come before it. How is that possible when the research of the all-party parliamentary group on fair business banking determined that 85% of cases are excluded?
Sarah Jones (Croydon Central) (Lab)
Sajid Javid
I can see that this is an important issue, and I will ensure that a meeting takes place with the appropriate Minister.
Several hon. Members rose—
David Duguid (Banff and Buchan) (Con)
I welcome the Chancellor’s commitment yesterday of £5 billion to support gigabit broadband across the whole of the United Kingdom. He will be aware that, historically, the Scottish Government have been responsible for the roll-out of superfast broadband, which is way behind what they promised, and not a penny of the £600 million that they announced in 2017 has been spent. Will my right hon. Friend confirm that future broadband funding will be paid directly to local authorities, bypassing the Scottish Government, who have failed rural constituents such as mine more than most?
Sajid Javid
The investment that I announced yesterday is hugely important for the entire country, including Scotland. My hon. Friend is right to point to the abysmal record of the Scottish Government in delivering broadband for their people, so we should certainly look at whether there is a much better way to deliver it.
Paula Sherriff (Dewsbury) (Lab)
Fiona Bruce (Congleton) (Con)
I thank Ministers for providing funding to help evidence and establish the business case for reopening Middlewich railway station—a key priority for my constituents. What wider fiscal steps are they taking to support my constituency by supporting the northern powerhouse and midlands engine?
Sajid Javid
I thank my hon. Friend for working tirelessly on behalf of her constituents to ensure that more infrastructure, including rail and road, is delivered locally. She will know that one of the first commitments of the new Administration was to Northern Powerhouse Rail and further funding for the midlands engine. She may also know that yesterday I announced a White Paper on further devolution, which I think she will welcome too.
Marsha De Cordova (Battersea) (Lab)
The social security benefits freeze has led many children and families into poverty and destitution. The Chancellor failed to answer the question from my hon. Friend the Member for Bootle (Peter Dowd), so I ask him again: yes or no, will he lift the social security freeze next year?
Justine Greening (Putney) (Ind)
Thank you, Mr Speaker. The Government seem to be making pre-election spending pledges with all the velocity of a high-power water jet. I wonder whether the Chancellor will point it in the direction of Hammersmith bridge. It has been closed for several months, but even its repair plan would not enable it to take double-decker buses. Will he look at whether his bus pledge can extend to the capital required to enable it to be successful?
Sajid Javid
I know that this is a very important issue for my right hon. Friend and her constituents. I share some of her concerns, which is why it has troubled me that the Mayor of London is not taking this issue seriously. Why is that? He has the funding available if he chooses to deploy it. He can make a difference immediately, but he refuses to do so.