Oral Answers to Questions

Debate between Sajid Javid and Jonathan Reynolds

Tuesday 11th February 2020 Commons Chamber

[Sajid Javid]

I can assure the hon. Gentleman that we are working very closely with individual businesses and their representative groups. The one thing they have certainly welcomed in the past few weeks is that we have ended the uncertainty around Brexit by actually leaving the European Union, as we said we would. We will be working very closely with business as we forge that new free trade agreement, which I know we will do.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Three years ago, at my first shadow Treasury questions from this Dispatch Box, I asked the Government about their plan to continue market access for financial services to EU countries after Brexit. Since that time, the Government’s ambitions have faded from the wide-ranging access-all-areas free trade deal that we were promised, to a basic agreement barely covering goods. The Chancellor has announced this morning that he is asking for enhanced equivalence for financial services, which the EU has already ruled out and which does not even exist in sectors such as insurance. This is our largest export sector, so how is it that we are still waiting for a credible plan after three years?

[Sajid Javid]

The hon. Gentleman needs to get his facts right. The EU has not ruled out equivalence. Indeed, it agreed in the political declaration to work at speed on an equivalence decision by the end of July this year, and that is welcome.[Official Report, 13 February 2020, Vol. 671, c. 12MC.] We are working very carefully and closely with the EU on having a broad agreement that will mean that our financial services continue to thrive—not only for our benefit, but for its benefit.

Oral Answers to Questions

Debate between Sajid Javid and Jonathan Reynolds

Tuesday 1st October 2019 Commons Chamber

[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?

Housing White Paper

Debate between Sajid Javid and Jonathan Reynolds

Tuesday 7th February 2017 Commons Chamber

[Sajid Javid]

That is often a problem, and my hon. Friend makes a good point. In the White Paper he will see that we refer to some changes that will come about, following the consultation that has already happened, both to section 106 and the community infrastructure levy payments. I think that will help.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

We desperately need new houses, but development is not always popular with the public. The key issue is infrastructure. The best proposal I have ever seen is building new garden villages and putting in schools, roads and infrastructure at the same time. The Government have had a pilot, but is it something that they will take forward?

[Sajid Javid]

Yes, it is.

Casey Report

Debate between Sajid Javid and Jonathan Reynolds

Tuesday 6th December 2016 Commons Chamber

[Sajid Javid]

Moor End Academy sounds fantastic. It sounds like we can learn more from its approach, and I look forward to doing that.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Like other colleagues, I have concerns about integration in my community. That is by no means to say that things are bad, but I have certainly seen things that could get much better, and it is a two-way street. However, I ask the Secretary of State in good faith, where are the resources to do this? Where are the resources to run youth clubs to bring young people together? Where are the resources for the sports projects? Whenever something goes badly wrong, a huge amount of resource is always made available in the aftermath. We need some of that to go in before problems occur.

[Sajid Javid]

First, the report is independent. That means that, although there are several recommendations, we need to go through them carefully to see which ones we can take forward and build on. When I report back by spring, if extra resource is required, we will certainly ensure that it is available.

Budget Resolutions and Economic Situation

Debate between Sajid Javid and Jonathan Reynolds

Tuesday 14th July 2015 Commons Chamber

[Sajid Javid]

No one wants to see any company close in Britain, and no one wants to see any of the job losses that would potentially come alongside that. What is most important when changes in the economy affect businesses is a growing economy so that businesses are growing at record rates. We have record high growth as a country among the G7, which is exactly the sort of environment we want so that other companies can continue to grow alongside.

The national living wage will put more money in customers’ pockets. This will deliver a real boost to businesses right across the country, as eight out of 10 people who will see their pay rise live outside London and the south-east of England. These measures will all support growing, dynamic businesses, as we work with them to tackle the economic challenge of our time.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

The right hon. Gentleman has made an intellectual case for what he calls the national living wage, which most people would call a rise in the national minimum wage. Why did the Government not choose to bring in the national living wage? Surely the case he has made is for the national living wage.

[Sajid Javid]

Perhaps the hon. Gentleman missed last week’s Budget and what the Chancellor said. The Chancellor did introduce the national living wage. Of course it will be phased in over five years, but by 2020 it will be equal to at least 60% of median earnings. It is the national living wage.

Budget Resolutions and Economic Situation

Debate between Sajid Javid and Jonathan Reynolds

Thursday 24th June 2010 Commons Chamber

[Sajid Javid (Bromsgrove) (Con)]

I pay tribute to those hon. Members who have made their maiden speeches today. My hon. Friends the Members for Staffordshire Moorlands (Karen Bradley), for Hendon (Mr Offord) and for Camborne and Redruth (George Eustice), and the hon. Member for Kingston upon Hull East (Karl Turner), all made excellent maiden speeches.

After 13 years of Budgets that were predicated on the mistaken notion that boom and bust had ended, it is hugely reassuring to see a Budget that restores some fiscal sanity. This Budget puts at the heart of our economic policy the restoration of our nation’s finances and the laying of foundations for stronger economic growth. In response to the hon. Member for Walsall South (Valerie Vaz), however, I must add that we do not know what the previous Government’s legacy is, because some costs of the past two or three years’ actions have yet to be borne—but will be unless this Government take preventive steps.

I shall not dwell on what has been bequeathed to us, but I must mention a few statistics that speak for themselves. The budget deficit is more than 11% of GDP, and the largest of all advanced nations; the visible national debt is 68% of GDP; and a record 28% of the adult working population—8 million people—are currently described as “economically inactive”. Despite all Labour’s efforts, no amount of spin can hide the truth of the abysmal inheritance that we have been given. Once again, it has been left to a Conservative-led Administration to clean up the mess of a former Labour Administration. As it says in the Budget, we have to start doing that by addressing this record peace-time deficit.

I am somewhat surprised that Labour Members continue to act as though we can keep living beyond our means, when only £3 in every £4 of Government spending is raised through general taxation. Only eight weeks or so ago, even the Labour leadership admitted during the election campaign that if they won the election they would have to carry out severe cuts as well. There were various estimates, but they averaged about 20% of real cuts in unprotected Departments over the course of the next Parliament. Notably, the then Chancellor of the Exchequer said in an interview that if he were re-elected he would have to make bigger and deeper cuts than Margaret Thatcher did in her time. Now, however, Labour Members act as though those cuts are not necessary and we are able to make a choice.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

It is not the reduction of the deficit that is the point of conflict between us but the scale and the speed of doing it. Doing it in the way that has been proposed risks pushing the economy back away from growth and into recession. In that situation, the deficit will increase, not decrease. Does the hon. Gentleman accept that point?

[Sajid Javid]

The hon. Gentleman’s own party said before the election that it expected to make very large, severe cuts, in the order of about 20% in real terms. Our Budget proposes cuts of about 25% in real terms in unprotected Departments. Is he really saying that the only thing bothering him is a difference of 5%? I have not heard anything from Labour Members in the past two or three days that remotely suggests how they would achieve the 20% cut that they have talked about.

James Carville, who was President Clinton’s political adviser, once famously said:

“I used to think if there was reincarnation, I wanted to come back as the President or the Pope or a .400 baseball hitter. But now I want to come back as the bond market. You can intimidate everyone.”

Soon after that, President Clinton abandoned his plans to increase borrowing, recognising instead that, even at that time, he had no choice but to balance the budget. I have traded in the international bond markets for many years, and working on a trading floor I saw for myself just how severe the financial crisis was. There is no question but that we would have faced economic problems regardless of the actions that were taken by the previous Government, but their actions made things worse, and that is the key. The situation has been made worse by the huge amount of borrowing that we have taken on since that time.