Oral Answers to Questions

Simon Clarke Excerpts

Tuesday 28th June 2022 Commons Chamber

[Sarah Atherton (Wrexham) (Con)]

8. What fiscal steps his Department is taking to encourage levelling up across the UK.

[The Chief Secretary to the Treasury (Mr Simon Clarke)]

The levelling-up White Paper set out a clear plan to level up every corner of the United Kingdom by 2030. At the spending review last autumn, the Government showed how we would deliver our ambitious plan by delivering over £600 billion in gross public sector investment over this Parliament. That includes £4.8 billion in increased investment in local communities through the levelling-up fund, £1.6 billion for the next generation of the British Business Bank’s regional investment fund, and £2.6 billion for the shared prosperity fund.

[Sarah Atherton]

Wrexham’s levelling-up gateway bid has been supported by a 16,000-signature petition to create the first international sporting stadium in north Wales. Does my right hon. Friend agree that people are at the heart of the Government’s levelling-up agenda, and that the amount of people who have signed that petition demonstrates the need for such a scheme in places like Wrexham, which has been ignored by the Welsh Labour Government for 20 years?

[Mr Clarke]

My hon. Friend is a fantastic champion for Wrexham. I remember her coming to see me to talk about the merits of this particular bid, which obviously has enormous popular support; the number of people who have signed her petition testifies to precisely that.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Real levelling up requires money, and that means everybody paying all the tax they owe. So why did the spring Budget allocate three times more additional funding to the Department for Work and Pensions than to HMRC to deal with fraud, when we know that every £1 spent on fraud in the DWP recovers £6, but every £1 spent on fraud in HMRC recovers £18? Why are the resources not prioritised to bring the greatest reward?

[Mr Clarke]

This is undoubtedly an important issue, and the hon. Lady is right to raise it. Clearly, we are at a very important moment in the fight against fraud. Only next month, the new Public Sector Fraud Authority reporting to this Department and the Cabinet Office will go live, backed up by an additional £25 million over the spending review period. This represents increased resources for further support in terms of active measures on data, intelligence, risk and enforcement—all the things we need to do to crack down on fraud and to pursue the perpetrators.

[Chris Green (Bolton West) (Con)]

9. What fiscal steps he has taken to support investment in UK infrastructure.

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[Martin Vickers (Cleethorpes) (Con)]

T2. The Chancellor is familiar with the opportunities in northern Lincolnshire and the wider Humber region to advance economic growth; what plans does he have to develop the infrastructure and support local authorities to achieve that?

[The Chief Secretary to the Treasury (Mr Simon Clarke)]

My hon. Friend is a fantastic champion for his region and his support for a freeport on the Humber has been noted across Government. We are of course investing in our levelling-up programme, which has a direct bearing on areas such as the Humber. Crucially, we want to advance devolution within England to allow areas such as his to reap the full rewards and take full control of this exciting opportunity.

[Dan Carden (Liverpool, Walton) (Lab)]

T4. Recently, it was revealed that Her Majesty’s Revenue and Customs is failing to use the third-party data information that we get through international agreements to investigate how much tax is being evaded through offshore assets. Given that £850 billion is held offshore, with two thirds of it stashed in known tax havens, either Ministers are content for the super-rich to evade paying their fair share in the knowledge that their offshore wealth is not being systematically checked, or they will direct HMRC to use this reporting data, as is done in the US and Denmark, to uncover tax evaders. Which is it?

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[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

T5. In his answer to my hon. Friend the Member for Glasgow Central (Alison Thewliss), the Chancellor seemed actually to be boasting that unlike the Scottish Government he is not willing to invest in tackling child poverty or in supporting carers. May I therefore suggest that instead of boasting about his poverty-inducing social insecurity system he tries looking at and replicating the Scottish child payment and the carer’s allowance supplement?

[Mr Simon Clarke]

My right hon. Friend the Chancellor set out very clearly the choices the Scottish Government made at their most recent spending review, on which they can be judged. Let us be very clear: it is the Scottish Government and the Scottish Government alone who are wasting millions of pounds of this country’s and indeed their country’s citizens by pursuing a referendum. That is the last thing that Scotland or the UK needs, soaking up resources that should be spent on people who need them.

[Anthony Browne (South Cambridgeshire) (Con)]

T7. The east of England is the only region in the country without a dedicated children’s hospital which is why I am delighted that the Government have committed £100 million to building Cambridge children’s hospital. It has recently got planning permission and its exciting designs were shown last week to the Duke and Duchess of Cambridge, William and Kate. Will my right hon. Friend the Chancellor or the Chief Secretary to the Treasury commit to working with me to make sure the hospital is built on schedule?

[Mr Clarke]

This Government are determined to deliver for the people of Cambridgeshire. My colleagues at the Department of Health and Social Care will have heard my hon. Friend’s comments about the importance of this facility, and that is why we are investing £4.2 billion in new hospitals over the course of this Parliament.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

T10.   The recent announcement by the Chancellor on support with energy bills was welcome as far as it goes; however, I remain deeply concerned about my constituents in North Ayrshire and Arran who live in park homes, many of whom are elderly and vulnerable, who have no clarity as to whether they will receive the same support for energy bills as every other household in the UK. Will the Chancellor put an end to this uncertainty and confirm today that he will make a firm commitment to ensure that park home residents do not miss out on this vital support?

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[Mr Clive Betts (Sheffield South East) (Lab)]

Last year, at the spending review, the Government announced that after years of austerity there would be a small real-terms increase in local authorities’ spending power—but that was when inflation was around 2% to 3%. Has the Chancellor seen the recent assessment from the Local Government Association showing that, with inflation at a somewhat higher level now, it will cost local councils £2.4 billion extra this year? What steps will he and the Levelling Up Secretary take to have talks with the Local Government Association about extra help for local authorities so that we do not get another round of austerity imposed on our constituents?

[Mr Simon Clarke]

Of course, we invested £1.6 billion in local authorities in each year of the spending review precisely to help them with all the responsibilities that they must discharge. I would say to all Departments and devolved Administrations that, if we are to live within the spending review, it is vital that they make responsible choices about how to deliver services at best value to the taxpayer. We cannot be in a situation where we chase after inflationary pressures as that will only worsen and prolong the crisis that we face.

[Felicity Buchan (Kensington) (Con)]

T9. My constituents want to see a low-tax, high-growth economy where work and productivity are prioritised and incentivised. Will my right hon. and learned Friend assure me that the next move in taxes will be downwards and that that will happen at the first available opportunity?

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[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Thanks to this Government, we have record low unemployment and more job vacancies than jobseekers, but almost 9 million people are economically inactive, including many who can work and many who have worked in the recent past. Does my right hon. Friend agree that getting more of this group back into work is key to filling the labour shortages that many Members have spoken about today, and to strengthening our economy for the longer term?

[Mr Simon Clarke]

My right hon. Friend is absolutely right, and he knows about this from his time as Secretary of State for Work and Pensions. There is no doubt in my mind that the work we are doing, through the spending review, to provide more than £1.1 billion of measures to support disability employment and the effective management of health in the workplace will be important. The Government’s Way to Work programme is yielding fantastic results, and is a sign of our intention in this space.

[Valerie Vaz (Walsall South) (Lab)]

Some £11.8 billion was lost to fraud during the pandemic, according to a plethora of organisations such as the National Investigation Service and the Insolvency Service. I know the Chancellor is keeping tabs on public money, but will he publish a real-time dashboard on the recovery of public money?

[Mr Clarke]

We provide regular updates on the amount of money lost to fraud because all Members on both sides of the House want action to pursue perpetrators. We have shown our intention in this space with a series of targeted interventions against fraud, the most recent of which is putting in place the new Public Sector Fraud Authority, which goes live in July.

[Mr David Davis (Haltemprice and Howden) (Con)]

The laws around IR35 are loosely defined, and it looks as though Her Majesty’s Revenue and Customs is using the tribunals and courts to pin down the case law on it. The effect is that I now know of a number of people whose legal bills are many times what their original tax bill might have been. This is impoverishing them, and in some cases bankrupting them, and obviously it is terrifying them. Will the Chancellor institute a review of this procedure? Although it is important that HMRC raises all the money necessary, it should not do so by destroying lives.