Budget Resolutions

Simon Clarke Excerpts

Wednesday 27th October 2021 Commons Chamber

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

They are worth £76 billion.

[Felicity Buchan]

I believe that is 11% of our total tax take. This is an issue not just for London but for Edinburgh, Glasgow, Newcastle, Leeds, Bristol and Chelmsford. Financial services are critical, so let us not talk them down, as that would be equivalent to California talking down the film industry. Financial services are a huge source of our exports.

Finally, I welcome the £7 billion-worth of measures on business rates. These are short-term measures. I welcome them but, as my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) has just said, we need a longer-term solution. I would like to work with my Front-Bench colleagues on finding that solution.

One small technicality: the 50% discount for hospitality will be capped at £110,000. I represent a central London constituency with a lot of retail and hospitality. Central London has suffered about the most in the country, but many of my businesses will get very little help on a percentage basis. I would appreciate a conversation on that point.

This is a very strong Budget. The economy is faring well. We have alluded to some risks, but we can all get behind this Budget, which is good for the country and good for Kensington.

Budget: Pre-announcement of Provisions

Simon Clarke Excerpts

Tuesday 26th October 2021 Commons Chamber

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

(Urgent Question): To ask the Chancellor of the Exchequer for a statement on the details of all the provisions in the upcoming Budget that have been made public in advance of the Chancellor’s statement.

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

Mr Speaker, I have the deepest respect for you, this House and all its processes. It is a pleasure to be with you this afternoon. The ability of Parliament to scrutinise the Government, including the Budget, is clearly crucial, which is why we have five days of parliamentary debate ahead of us this week and next, and it is why my right hon. Friend the Chancellor will, in addition, be appearing before two Select Committees of this House next week.

Tomorrow my right hon. Friend will announce a Budget that delivers a stronger economy for the British people, invests in public services and levelling up, and delivers on growth and jobs with a pay rise for 7 million people— 5 million in the public sector and 2 million through an increase in the national living wage.

I will briefly summarise the headline announcements we have already made on the Budget, with the caveat that the bulk of the detail of the Budget will be delivered by the Chancellor himself at this Dispatch Box tomorrow. Importantly, that includes all market-sensitive information. Part of the Government’s objective in trailing specific aspects of the Budget in advance is to help communicate to the public what we are doing with their hard-earned money, because we believe there is merit in clear and accurate information.

I now turn briefly to just a few of the measures we have announced: an increase in the national living wage from £8.91 to £9.50 an hour, meaning an extra £1,000 a year for a full-time worker; £3 billion-worth of investment to build a high-wage, high-skill economy, with a doubling of investment in 16 to 19-year-olds and a quadrupling of the number of skills boot camps; and a multibillion-pound overhaul of local transport to help level up communities across England, with transport settlements for city regions increased to £5.7 billion and allocated directly to cities. As part of the spending review, there is a £5.9 billion deal for the NHS to tackle the backlog of non-emergency procedures and to modernise digital technology, with at least 100 community diagnostic centres to help clear most test backlogs by the end of this Parliament.

These are just a few of the measures that the Chancellor will outline to the House tomorrow as the Government continue their work to deliver a stronger economy for the British people.

[Bridget Phillipson]

Thank you for granting this urgent question, Mr Speaker.

We face an urgent cost of living crisis. Prices are up in our shops, at our petrol pumps and on our heating bills. Families and businesses are waiting and hoping for the Chancellor to take the action that they and our country desperately need. He has not even delivered his Budget yet and it is already falling apart. In recent days, we have read thousands of words about what he plans to do, but the silence is deafening on the soaring bills and rising prices facing families and businesses.

I have five questions for the Chief Secretary to the Treasury today, and I ask him to answer them clearly and simply, not through a press release but to this House. First, will he properly justify withholding from Parliament decisions that he and his colleagues have detailed in the press?

Secondly, the right hon. Gentleman just stood at the Dispatch Box and said that he believes in clear and accurate information. On that basis, will he confirm he understands that, for a full-time worker on the minimum wage in receipt of universal credit, a rise to £9.50 an hour will place far less than an extra £1,000 in their pocket?

Thirdly, will the right hon. Gentleman confirm that the public sector pay rises that Ministers told newspapers about yesterday will be real-terms pay rises, as the Under- Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Sutton and Cheam (Paul Scully), was unable to do so on the telly this morning?

Fourthly, will the Chief Secretary to the Treasury follow Labour’s lead and confirm today, now he is with us, that he will be cutting VAT on domestic heating bills to 0% for six months? Finally, will he back Britain’s high-street firms and freeze business rates now and replace them with a better system fast?

The right hon. Gentleman can tell the newspapers; it is time for him to tell this House.

[Mr Clarke]

It is important that we consider all the measures that have been trailed in the round. It is clear that the wider announcements that have been made are entirely accurate. The national living wage is to rise by £1,000 a year, which will take the benefit for a full-time worker on the national living wage to £5,000 since 2016. That is a substantial increase. It beggars belief that the Labour party can stand there and say that a 6.6% increase in the national living wage is somehow not enough. It needs to be considered in conjunction with all the other announcements that have been made, including the £500 million household support fund, the energy price cap and all the action that we have taken to freeze fuel duty and to keep bills low. We are acutely conscious of the pressures that face households and we take action to modify them.

On public sector pay, which the hon. Lady asked about, I am delighted that we will be returning to the normal processes that adjust public sector pay in the light of all the pressures that exist. It will be for the relevant pay review bodies to discuss that, in conjunction with the Government, in the normal way. I am not going to pre- empt that work, but we will work closely with them to make sure that what is announced is right. The Chancellor will have further details on that in his speech.

On the cost of energy, the energy price cap is protecting households, with up to £100 a year off their bills. That is the right thing to do. We all recognise that that is a priority for all our constituents.

On business rates, we will get the upshot of the fundamental review of how we can get the future of business rates right. The Labour party has committed to abolishing business rates, without any clear idea of how it would fund that. Indeed, the disconnect between what the Labour party has committed to and what it has actually identified the funding for is somewhere in the region of £400 billion of commitments with £5 billion of savings to pay for them. That is not a responsible way to run the economy.

What you will be hearing from the Government Benches tomorrow, Mr Speaker, is a clear plan to make sure that we can not only balance the books but take our economy forward in a way that works for the benefit of all our communities. That is obviously the priority for my right hon. Friend the Chancellor and for me.

[John Redwood (Wokingham) (Con)]

This is not the first Government who have wanted more than one day’s news out of a Budget, but the right way to do it is for all Ministers to observe complete Budget secrecy, for the Chancellor to announce the tax changes and the block totals on spending and then, in the days that follow, for Cabinet Ministers to come to the House to announce the detailed spending plans and subject them to our scrutiny. If that was right for all previous Governments, why is it not right for this one?

[Mr Clarke]

I thank my right hon. Friend for his question, and I completely share his assessment of the importance of this House, of which both the Chancellor and I are acutely aware. In 2013, the then Chancellor, George Osborne, asked the permanent secretary for Her Majesty’s Treasury to conduct a review of the practice of the release of Budget information under embargo on Budget day, and he set out a series of recommendations. His central conclusion was that the Treasury should introduce

“a ban on the pre-release of the core of the Budget…that is: the economic and fiscal projections, the fiscal judgement and individual tax rates, reliefs and allowances.”

We have observed that stricture in full and I am obviously totally committed to continuing to do that.

--- Later in debate ---

[Alison Thewliss (Glasgow Central) (SNP)]

I do not know whether to congratulate the Minister on his promotion, as he has come here to give us the Budget a day early. What he has not given this House is an apology. He should not be announcing things on Twitter; we should be waiting for the Budget to see the full detail. This has been going on since September—it is not new. There have been daily announcements drip-feeding the entire Budget ahead of time. Of course, the Government hold all the cards, along with the Office for Budget Responsibility, because we cannot tell what the detail actually means. For Scotland, we cannot tell what the Barnett consequentials —if, indeed, there are any—will be.

We know what is going to be in the Budget speech and we know what is not going to be in it, because the Government have not done things such as carbon capture and storage in Scotland. Of course, none of it is what the Government and the Chancellor should be doing in the Budget speech. They should be reinstating the £20 universal credit cut; scrapping the national insurance tax on jobs; tackling the spiralling cost-of-living crisis; and supporting hospitality and tourism with a VAT cut to see them through the winter months and into next year.

If the Government cannot be responsible with the powers that they hold and if they cannot be trusted to give us the actual truth on Budget day tomorrow, all the financial powers—I call for this again—should be given to the Scottish Parliament so that we can make the decisions that are right for the people of Scotland.

[Mr Clarke]

I thank the hon. Lady for her remarks. I think that we are much stronger as one United Kingdom. The OECD has reaffirmed that we are expected to have the fastest growth in the G7 both this year and next and that is something that we are achieving as one country together. She asked about the Barnett consequentials. Those will be set out very clearly in the Budget tomorrow. (Interruption.) I can assure her that, of course, we consider this very closely and we will be in a position to give good news for Scotland as part of a strong United Kingdom tomorrow. I had productive conversations about the future of the fiscal framework with the Scottish Finance Minister, Kate Forbes, just last week. I can commit that I will be speaking to her in accordance with the usual Budget conventions tomorrow morning, ahead of the statement.

[Jake Berry (Rossendale and Darwen) (Con)]

I am sure that my right hon. Friend accepts that the rabbit may be out of the hat. So if the Chancellor is still looking for a fluffy bunny to present on Budget day, may I advise that we make a huge announcement about the Government’s levelling-up fund? That would be welcomed by communities across the north of England and demonstrate our Government’s commitment to make sure that we level up the peoples of the north.

[Mr Clarke]

I thank my right hon. Friend for his question. He is absolutely right that levelling up is a core theme of this Government. It is something of which I am very proud, as a north-eastern MP, to have the chance to help deliver, and it is going to be one of the golden threads of the Budget and spending review tomorrow. I wish that I could start plucking rabbits out of the hat for him now, but he will have to wait just a few more hours to get some, hopefully, very welcome news.

[Mr Speaker]

Sky TV tomorrow.

[Dame Angela Eagle (Wallasey) (Lab)]

Thank you, Mr Speaker, for granting this urgent question. It has taken me nearly 30 years, but I now find that I agree with the right hon. Member for Wokingham (John Redwood) in his question. This is serious. As an Opposition, we cannot look in detail at the slew—the blizzard—of Budget announcements that have been going on week after week, because we do not have the OBR report and we do not have the detail. This is treating parliamentary democracy with utter contempt and the Minister should be completely ashamed of himself. He should have come to this House and apologised. His boss should have come to this House and apologised.

[Mr Clarke]

I thank the hon. Lady for her points. Clearly, as a former Treasury Minister herself, she would never have engaged in any activity of this kind. The point is that there is absolutely no question of our commitment to observing all the proprieties, reflecting the Macpherson review, which was an internal review conducted by Sir Nicholas, the then permanent secretary, to work out what was sensible in advance of the Budget. We have not commented on any of the substantive tax measures and there will be a raft of full information in both the Budget documents and the documents provided by the OBR, which obviously provides a level of detail that the last Labour Government never provided in terms of their equivalent events.

[Sir Desmond Swayne (New Forest West) (Con)]

There are two sides to this coin. The first is the Government broadcasting without first letting us know. The other is the information that they are trying to keep from us. Why was the leaked information on the substantial costs of winter plan B marked “Not for publication”? What are the Government trying to hide? Why are they frightened of our scrutiny?

[Mr Clarke]

I thank my right hon. Friend for his question. I will not comment on leaks—[Laughter.] The absolute bottom line is that we are, of course, committed to plan A, and there is no question but that he will find that plan A remains the resolute conviction of both this Government and, I believe, this House in terms of how we can most sensibly take the country through the winter ahead. We are not moving to plan B. We are committed to plan A. He should be reassured that we want to keep our economy and society open as we move through the challenges of the weeks and months ahead.

[Clive Efford (Eltham) (Lab)]

I have been here for many years and have seen many Budgets. I have seen the Order Papers being waved on the day, and then the Budgets fall apart over the following hours and the following days, but this is the first Budget that I have seen fall apart before Budget day. We have heard the announcement about public sector pay, but we have not heard whether, if it is increased, that increase will be funded, or whether it will have to come from within existing budgets. When the Government were forced to increase the pay rise for nurses from 1% to 3%, they did not fund it; they forced it to be funded from within NHS resources. Since we are into leaks, will the Minister tell us whether the Government intend to fund a public sector pay increase?

[Mr Clarke]

Ensuring that we can move out of the shadow of the public sector pay freeze is obviously something that we are all glad to be able to do. The Chancellor will set out the full details of how that will operate in his statement tomorrow.

[Dr Julian Lewis (New Forest East) (Con)]

The Minister is one of the nice guys in Parliament and richly deserved his promotion. What he did not deserve was to be put in this position by an untenable policy. I have to ask him the question: why is it important, right or necessary to share Budget information with the media before it is shared with this House, where it can be subjected to proper scrutiny, and will he give an undertaking on behalf of the Treasury team to stop doing it?

[Mr Clarke]

I thank my right hon. Friend for his kind words. As a Treasury team—indeed, as a Government—we are all committed to ensuring that this House is fully respected. That remains at the core of our work. As a Member of this House, I take that very seriously, and so does the Chancellor. Clearly, when we set out certain announcements, we try to provide some specific information about what the Government are seeking to achieve with those measures. We have respected absolutely and in full the stricture that we should not be talking about tax measures or adjustments, and that is something that I can commit we will absolutely continue to do.

[Wendy Chamberlain (North East Fife) (LD)]

Education has been very much missing from the pre-announcements. Given the amount of learning that our children have lost due to covid, I wonder whether the Minister would give us another leak or pre-announcement by letting us know whether the full £15 billion advocated by the Government’s education recovery adviser before he resigned will be allocated to education, and what support he will be giving to the devolved nations on the same topic.

[Mr Clarke]

It is obviously tremendously important that we help our schools to catch up, given the impact of the months of lost learning owing to the pandemic. I have seen that in my constituency, as the hon. Member will have in hers. The Government have committed £3 billion to date to help with education catch-up. The Chancellor will be speaking more about this matter in his statement tomorrow.

[Mr Philip Hollobone (Kettering) (Con)]

Funded by taxpayers through Her Majesty’s Treasury, the NHS hospital building programme is a flagship policy and a key part of the Treasury’s medium-term forecasts. Kettering General Hospital is one of those hospitals. When NHS England approves the strategic outline case for the hospital and submits those proposals to the Chief Secretary for sign-off, will he look favourably upon it, because it is a key priority for constituents in Kettering?

[Mr Clarke]

My hon. Friend is absolutely right to speak up for the hospital in his constituency. The Government have committed to 40 new hospitals and 70 hospital upgrades. That is a core part of our programme to ensure that the NHS is fit for the future. I will, of course, be delighted to look at the case for Kettering General Hospital, as will ministerial colleagues across the piece, including at the Department of Health and Social Care. I would be delighted to have further meetings on the subject with my hon. Friend, if that would be useful to him.

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

Mr Speaker, the Minister said at the beginning that he respected you and this House, but does he not accept that the reason that we are here now, having this urgent question, is precisely because the opposite has happened? When he answers that question, perhaps he can also enlighten us: has he had discussions with the Welsh Government about the UK shared prosperity fund in the way that he has with the editors of the national newspapers?

[Mr Clarke]

There is absolutely no doubt that we have observed all the proprieties by not talking about tax measures in any of the discussions that have been had. I am in regular contact with the Welsh Government. Indeed, I met the Welsh Finance Minister last week and will be speaking to her again tomorrow morning ahead of the Budget, in the usual way.

[Jacob Young (Redcar) (Con)]

I welcome the announcements that have been trailed ahead of the Budget, in particular the latest announcement on the national living wage. Will my right hon. Friend outline how this national living wage will help my constituents and his in Teesside?

[Mr Clarke]

Ensuring that work always pays is one of the foundational principles of this Government. It is what differentiates us, frankly, from the last Labour Government, who had a series of policies that, I am afraid, did not incentivise work. That led to what the then editor of The Spectator termed,

“the most expensive poverty in the world.”

I am afraid that that was the unfortunate legacy of a series of failed policies. My hon. Friend is absolutely right in saying that the national living wage rise is the right thing to do. I am excited about that policy, and it continues our strong track record of ensuring that our plan for jobs is matched by rising living standards.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

Diolch, Mr Speaker. Many of the pre-Budget announcements relate to the so-called levelling-up agenda, of which the community renewal fund is a key element. Given the delay in announcing the initial successful bidders, will the Minister press the Chancellor at this late stage to make an announcement tomorrow to extend the delivery time for those that were successful in the first phase?

[Mr Clarke]

I would be happy to look at the hon. Gentleman’s recommendation, but there will be further announcements on the community ownership fund tomorrow.

[Andy McDonald (Middlesbrough) (Lab)]

Mr Speaker, you may have read in the press that the Chancellor is preparing to tell us tomorrow that the national minimum wage will increase to £9.50 next April, but that remains way below the income that a worker can live on. Worse still, the savage age discrimination will carry on, with young people in Middlesbrough, across Teesside and across the country having to suffer appallingly low pay. The current rate for under-18s is £4.62 an hour. That is an increase of just 98p since 2010, meaning that their wages have gone down in real terms. Will the Government stop treating young people with such disdain, commit to scrapping the age bands and uplift the national minimum wage to £15 an hour, so that all workers can live fully flourishing lives?

[Mr Clarke]

I thank the hon. Gentleman for his point. Clearly, he might want to take this matter up with the leader of his own party, as I understand that it has been the subject of some disagreement. The Government are of course committed to ensuring that younger workers get fair pay. We obviously have to balance that against the wider commitment that we have to ensuring that we do not perpetuate the serious situation of youth unemployment that we inherited from the last Labour Government. There will be good news for younger workers in the Budget tomorrow.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

These decisions made by the Government deeply affect people’s lives: energy bills are rocketing; inflation is up; food and petrol prices are up; furlough has ended; and universal credit has been cut. It is no wonder that Citizens Advice Scotland is predicting that my constituents and others will face a really tough winter. They then face an increase in national insurance. With that in mind, is the Chancellor really going to give his old pals in the City a tax cut in the Budget tomorrow?

[Mr Clarke]

The hon. Gentleman will be aware that the £500 million household support fund is being put in place precisely to ensure that we protect families through the winter that lies ahead. That comes on top of all the measures that we have put in place to ensure that we adjust for the cost of living. This Government tax people very fairly. The richest 1% and 5% are paying more tax than they did under the last Labour Government. That includes the banks, which pay their fair share as part of a wider economic settlement.

[Catherine West (Hornsey and Wood Green) (Lab)]

VAT receipts have been climbing, which is a good thing. Will the Treasury look at helping those with very high fuel bills—for example, those with many children, those who have to keep their heating on during the day, those who are ill and pensioners—over the coming winter? Will the Minister consider that as part of tomorrow’s package—which, of course, will be announced tomorrow?

[Mr Clarke]

The household support fund is specifically targeted in order to help with the cost of living. Indeed, much of it is ringfenced for families with children, reflecting the sense of what the hon. Lady is saying. The energy price cap works with that, as does the warm home discount. The warm home discount is becoming more generous next year, as the number of people who benefit from it rises from 2.2 million to 3 million, and its value rises from £140 to £150. Those are the kinds of measures that we will continue to look at. The Chancellor will speak about VAT as part of the wider Budget settlement tomorrow.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Eighteen years ago, I was deputy general secretary of the Transport and General Workers Union. I was a founder member of the drive for the living wage, when we organised 3,000 cleaners in Canary Wharf and the City of London. I agree with the Resolution Foundation that the proposed increase would “not remotely compensate” those who will lose £1,000 as a result of the cut to universal credit. With workers facing a cost of living crisis, rising energy costs, rising inflation, rising fuel costs and rising food prices, is it not the case that workers’ living standards will continue to be squeezed as the Government give with one hand and take away with another?

[Mr Clarke]

No, I do not accept the premise of the hon. Gentleman’s point. We remain committed to our ambitious target of the national living wage reaching two thirds of median earnings by the end of the Parliament and expanding it to include workers over the age of 21. We have done an awful lot to help with living standards—doubling the personal tax threshold, doubling free childcare, expanding free school meals for all five to seven-year-olds, and introducing the new household support fund and the energy price cap—and further measures will be announced by my right hon. Friend the Chancellor tomorrow.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I suppose the attraction of delivering a Budget by press release is that it bypasses this House, so when the Government announce billions of pounds to level up transport in the north, I do not get to say that there is nothing in that for Newcastle, where extortionate bus fares are part of the cost of living crisis that my constituents are facing; and when the Minister says that the minimum wage is going up, I do not get to point out that universal credit recipients in Newcastle will still be £800 a year worse off. Why does he think that the Government should not be accountable to the people of Newcastle upon Tyne Central?

[Mr Clarke]

I absolutely do believe that we should be accountable to the people of Newcastle upon Tyne Central. That is why I am here. It is why there will be a five-day Budget debate over the course of the days ahead. It is why my right hon. Friend the Chancellor will appear in front of a Select Committee. On the hon. Lady’s point about transport settlements, we need to unlock devolution in north-east England. My No. 1 ask of the Labour authorities in that part of the world would be to make sure that they get their act together and unlock a devolution settlement.

[Stephen Flynn (Aberdeen South) (SNP)]

As well as knowing what the Government will be doing, we also know what they intend not to do. We know that they will not be investing in carbon capture and underground storage in Scotland, and we know that they will not be match-funding the Scottish Government’s £500 million just transition fund. Yet the Treasury has raked in some £350 billion of oil revenues over the decades, so why is the Minister’s Department now turning its back on Scotland?

[Mr Clarke]

Leaving aside tired clichés about our attitude to Scotland, which I am afraid is all we ever get from SNP Members, we are of course a Government committed to the success of the whole of the United Kingdom. The Budget will contain within it many things that reflect the major benefits of the Union for Scotland just as much as for England, Wales and Northern Ireland. As a proud British citizen, I would not accept the sense of what the hon. Gentleman says. On carbon capture, utilisation and storage, the Scottish project remains the first reserve, as he will know. We intend to take this project forward, alongside a flourishing North sea oil and gas sector, offshore wind and all the things that will go together to reflect the £30 billion-worth of commitments made as part of our net zero strategy.

[Matt Western (Warwick and Leamington) (Lab)]

Thank you for agreeing to this urgent question, Mr Speaker, because this is getting out of hand, as I am sure you will agree. Only yesterday, I asked the Universities Minister if she would announce the decision on the Augar review and the Government’s response publicly in the Chamber, and she would not commit to that. Perhaps, Mr Speaker, you could follow that up with the Department for Education and make sure that the announcement actually is delivered here in the Chamber. In the past few days we have had more announcements than you get on the Clapham omnibus about the Budget, much of it commercially sensitive. When were the newspapers given details of the announcements the Government were making in the Budget, and when was the advisory board of the Conservative party made aware of some of these announcements?

[Mr Clarke]

I really do not know what the hon. Gentleman is implying with his question, but clearly no impropriety has occurred. All announcements are made as usual through the normal Treasury and cross-Government processes to make sure that those announcements are released to the media.

[Jim Shannon (Strangford) (DUP)]

Does the Minister agree that being drip-fed Budget snippets from the press rather than in this House makes it more difficult for right hon. and hon. Members to fully consider the principles without the biased slant of the media? Is he prepared to consider allowing Members access to the Budget the night before, under strict embargo, to enable consideration of the documentation rather than media presentation?

[Mr Clarke]

I thank the hon. Gentleman, who is of course one of the most assiduous Members of this House. Clearly we all look to make sure that the Budget documentation is as full and as frank as possible—we have the work of the independent Office for Budget Responsibility as well—to make sure precisely that the Budget debate that follows can be as fully informed as possible as to the full implications of all the measures that are announced.

[Mr Speaker]

Can I just ask for a little clarification from the Minister? He has made an announcement to the House that I am not sure is correct: he said that it is a five-day debate, but I thought it was only four days.

[Mr Clarke]

My apologies, Mr Speaker: it is a four-day debate.

[Mr Speaker]

At least we have heard it in the House first.

Working People’s Finances: Government Policy

Simon Clarke Excerpts

Tuesday 21st September 2021 Commons Chamber

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

I beg to move an amendment, to leave out from “House” to the end of the Question and add:

“welcomes the £400 billion package of support the Government has put in place to protect jobs, incomes and livelihoods throughout this covid-19 pandemic, including a temporary cut to VAT, generous cash grants for businesses, a business rates holiday, and the furlough scheme which protected 11 million people at its peak; notes the launching of the Plan For Jobs to help people back into work and gain the right skills to succeed in the jobs of tomorrow through schemes such as Kickstart for young people, Restart for the long-term unemployed, the Lifetime Skills Guarantee and additional funding for apprenticeships, traineeships and work coaches; further notes the measures taken by the Government to keep costs down for working people, such as introducing and increasing the National Living Wage in 2016 so that a full-time worker is £4,000 a year better off than before, doubling personal tax thresholds giving individuals an extra £1,200 per year, protecting local taxpayers from excessive council tax increases, introducing an energy price cap which protects 15 million households by around £100 a year, and freezing fuel duty for 11 consecutive years which has saved drivers £1,600 compared to 2010; and believes that this plan is working, as evidenced by unemployment forecast to be 2 million lower than previously expected, job vacancies at record highs, household incomes protected, consumer confidence back to pre-covid-19 pandemic levels, and GDP recovering rapidly, with the IMF forecasting the UK to have the highest growth in the G7 this year.”.

It is a pleasure to be back at the Dispatch Box and to have the opportunity to respond to the hon. Member for Houghton and Sunderland South (Bridget Phillipson). I thank her for her kind words on my appointment. It is great that the north-east has two representatives in the debate, and I am delighted that the north-east economy is in robust shape, contrary to what we just heard.

In the last 18 months, safeguarding working people’s finances has been the Government’s defining mission, and we have succeeded in that task. Just today, the OECD economic outlook says that it expects the UK to see the fastest growth in the G7 both this year and next. The IMF has described the UK’s policy response as “aggressive” and as one of the

“best examples of co-ordinated action globally”,

helping to mitigate the damage wreaked by the pandemic, and

“holding down unemployment and insolvencies.”

[Catherine West (Hornsey and Wood Green) (Lab)]

The Chief Secretary begins his speech by talking about growth, which everyone in the Chamber would like to see, but what impact is there on struggling businesses from the clobbering increase in national insurance? That will have an impact on not just individuals but employers and the workplace.

[Mr Clarke]

We are clear that the right thing to do as we emerge from the pandemic, in which we have spent £400 billion on providing a comprehensive response, is ensure that our NHS is ready to deal with the backlog of cases that has inevitably arisen as well as providing a long-term fix for social care in a broad-based solution, bringing together a progressive tax rise in which the wealthiest pay more and business plays a fair role. I am confident that that is the right thing to do at this time.

Let me remind the House once more of the sheer scale of what this Government have been doing and of our support for the economy. The £400 billion I referenced a moment ago is spending that has been devoted to safeguarding jobs and incomes the length and breadth of the UK. It is spending that has given millions of people financial certainty through a very difficult 18 months.

The furlough scheme has protected 11.6 million jobs—that is equivalent to a third of the entire workforce—and it has paid out £68.5 billion to employers. The self-employment income support scheme has provided £27 billion to almost 3 million people. Businesses have been kept afloat thanks to loan schemes worth £79 billion, in addition to cash grants, VAT cuts and business rates relief, while the most vulnerable have been supported by a temporary uplift to welfare payments. HM Treasury’s own distributional analysis shows that our interventions have supported the poorest working households most as a proportion of income. That list is far from exhaustive, but it shows how the Government have met an extraordinary crisis with an extraordinary package of measures.

[Kim Johnson (Liverpool, Riverside) (Lab)]

In your constituency of Middlesbrough South and East Cleveland—

[Kim Johnson]

In the Minister’s constituency of Middlesbrough South and East Cleveland, the child poverty rate is 24.7%, smashing the national average of 19.1%, and up nearly 10% over the past six years. Can the Minister tell us exactly how he intends to justify his own Government’s decisions to hit the pockets of the most vulnerable families and disadvantaged people he represents?

[Mr Clarke]

I am incredibly proud to be part of the extraordinary transformation of Teesside’s economy, which is taking incredible shape under the work of our Mayor, Ben Houchen. Of course, that was reflected in the fact that the Tees Valley voted by 73% to re-elect our Conservative Mayor just this May. Why was that? It happened because of jobs and growth, and hope and pride in place—all the things that this Government are committed to delivering, and all the things that a Conservative Government are doing after years in which Labour neglected areas such as Teesside and left us with no plan, no options and no future.

Peak unemployment is now forecast by the Office for Budget Responsibility as being substantially lower than initially expected. All the evidence now points to a rebounding labour market. Just last week, the Office for National Statistics reported that vacancies are at a record high, while the headline unemployment rate has fallen for seven consecutive months and now stands at 4.6%.

[Kirsty Blackman (Aberdeen North) (SNP)]

I am a bit concerned that the Minister has not actually read the motion on the Order Paper. This is about people who are in work. I absolutely agree that people have been kept in work as a result of the schemes that are being scrapped—that is the case—but the thing is that if people are not being paid the living wage and are not being paid enough money to actually live on, they are going to continue to be in poverty no matter whether or not they are in work.

[Mr Clarke]

I can assure the hon. Lady that I have read the motion closely, which is of course why I am celebrating the fact that the ONS estimates that underlying regular wage growth is between 3.6% and 5.1%. It is why I am so proud that we are the Government who introduced the national living wage, which has of course meant more money in the pockets of working people. So this is exactly about bearing down on the cost of living and about supporting families throughout a really difficult time. That is what we have managed to do and what we will continue to do.

[John Cryer (Leyton and Wanstead) (Lab)]

The vast majority of people among my constituents who have written to me about the cut in universal credit are in work, some of them doing two or three jobs, yet many of them are going to be pushed into poverty by the cut the Minister is defending now.

[Mr Clarke]

The hon. Gentleman needs to bear it in mind that we are of course dealing here with a product, in universal credit, that has a number of different components. The change to which he is alluding affects the standard allowance, but the majority of households on universal credit of course receive many additional elements—for example, 58% receive additional support for housing costs and 38% receive the child element—and many households on UC will also have access to additional sources of income, such as child benefit. This comes before we come to all the things we have built into the system over recent years to make universal credit more generous. That includes, for example, the £1,000-a-year increase to the work allowance, which was announced in 2018 and is worth £630 to working parents and people with disabilities, and of course we have changed the taper rate so people get to keep more of the money they earn as their earnings increase. This is a very carefully calibrated system, and let us not forget that this is far better, frankly, than the legacy programme we inherited from the last Labour Government, which of course, as we know, did not incentivise work, did not properly support people and was a failure, so I am afraid I will not take lessons on universal credit from the hon. Gentleman.

[Several hon. Members rose—]

[Mr Clarke]

I want to make progress because it is important that we reflect on the employment situation in the United Kingdom. Our joblessness rate is now lower than that of the United States, lower than that of Canada and lower than those of France, Italy and Spain. People have been coming off the furlough scheme very rapidly now, and the numbers are down to 5.1 million in January to 1.6 million at the end of July, while almost half of those people still on the scheme, lest we forget, are already working through flexible furlough. The number of people claiming self-employment grants has fallen significantly, too. But that is not all: broader economic growth has exceeded expectations as restrictions have been lifted.

[Miriam Cates]

My right hon. Friend refers to the furlough scheme, which has of course been a phenomenally successful scheme. It has been credited with preventing mass unemployment and saving the job market. Does he not agree that Opposition cries that we are clobbering working people absolutely do not stack up when we consider the furlough scheme?

[Mr Clarke]

I thank my hon. Friend for her point, and this is absolutely right. The furlough scheme has been absolutely essential to supporting the UK throughout this very difficult period. It has been an historic success, and we only need to consider how serious the employment situation would have been had we failed to intervene and failed to show the decisive leadership that this Government have shown.

[Alex Cunningham]

rose—

--- Later in debate ---

[Jack Dromey]

rose—

[Mr Clarke]

I give way to the hon. Member for Stockton North (Alex Cunningham).

[Alex Cunningham]

As a fellow Tees Member of Parliament, the Minister will be aware that at the height, just a few weeks ago, there were 12,000 more unemployed people across the Tees Valley than there were in March last year. How does he reconcile that with talking up the Tees Valley employment situation?

[Mr Clarke]

I do so quite readily when I look at the extraordinary potential of our local economy. We have all the new jobs coming in at the Teesworks site, the former Redcar steelworks site. We have the hope and potential of green industry, which the hon. Member champions, as I do, with all the jobs in carbon capture, utilisation and storage as well as hydrogen. There is the new GE Renewable Energy factory, which will employ 2,500 people. Its construction starts incredibly soon, and it will be fully operational by 2023. Those are the reasons for hope and optimism. Of course, I will never apologise for talking up Teesside, just as we should never apologise for talking up the UK economy. We have done an extraordinary thing in this country: we have got through the pandemic—we have weathered the storm—and now we can move on to the recovery.

[Jack Dromey]

Three out of the 10 most deprived constituencies in England are in Birmingham and 42% of children in Birmingham are growing up in poverty, yet the Government are hitting Birmingham hard with the £1,000 a year cut to universal credit and the national insurance rise on top of the cost of living going up and soaring energy costs, with supermarket costs up, childcare costs up and rents up. Can I ask the right hon. Member this question: have the Government carried out any impact assessment of the consequences of their actions on Brummies, not least because the simple bleak reality is that tens of thousands face a tough Christmas and a bleak new year?

[Mr Clarke]

I thank the hon. Gentleman for his question, which basically re-summarised the speech we heard from the shadow Minister. I can confirm that HMT’s distributional analysis has shown that, as a proportion of income, our interventions have supported the poorest working households the most. Of course I recognise the challenges—I represent a constituency that has many challenges—but the number of children in absolute poverty, to which he alluded a moment ago, is lower than it was when Labour left office in 2009-10, both before and after housing costs are considered. These are incredibly important achievements, and we should never lose sight of them. In short, we took decisive action, and that action has worked.

It is clear that the world of September 2021 is very different from that of March 2020. The success of our vaccine roll-out means that most restrictions have now been lifted and we are seeing the benefits of our approach. These new circumstances therefore require a new response. We of course believe that the best anti-poverty strategy is a jobs strategy, and the best way to help vulnerable people is to provide them with the opportunities that they need for well-paid work.

[Aaron Bell]

My right hon. Friend is making a powerful speech. He is right about the importance of jobs, and not just well-paid jobs but high skilled jobs. Can he say something about how our plan for jobs is delivering people with skills? We have a limited amount of money to spend and it is better to invest that in people’s skills than endlessly into welfare.

[Mr Clarke]

I absolutely agree: it is very important that we invest in skills. The plan for jobs is not just about getting people into work or keeping them in work; it is about making sure they grow their skills during their working lives, which is why we have a focus on more skills for school leavers and generous apprenticeship hiring incentives. We are also tripling the number of traineeships for 16 to 24-year-olds, and we have the pioneering lifetime skills guarantee. These are all the sorts of things that will make a difference in Staffordshire as they will across the rest of the UK, and we should be incredibly proud of that.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

On the previous intervention about there being a limited amount of money that can only go so far, did the £1.6 billion allocated for a nil rate stamp duty on houses worth up to £500,000 help the poorest, the richest, or a combination of the richest and the housebuilders’ profits?

[Mr Clarke]

The hon. Gentleman asks us to apologise for keeping the housing market moving in the teeth of the pandemic and I make absolutely no apology for that; it was absolutely the right thing to do to make sure we did not see a collapse of that market.

It is important to recognise that supplying, protecting and creating employment opportunities is the right way forward both economically and politically for our country. That is why we have made a deliberate choice to invest in our plan for jobs, which we launched over a year ago to create work opportunities and assist workers to develop the right skills for the future.

Our plan is helping young people—a group disproportionately affected by the pandemic—through the £2 billion kickstart scheme. At lunch, I was talking to the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), about the impact of these programmes on young people, creating and fully funding hundreds of thousands of jobs for those at risk of long-term unemployment. I am proud that so far over 63,000 young people have had the chance to begin a kickstart job, with the numbers growing by more than 2,000 every week. Our plan will support more than 1 million unemployed people, many of whom are aged over 50, helping them find work through our three-year-long £2.9 billion restart programme, and providing jobseekers with the personalised, intensive support that will make a real difference to their prospects.

[Katherine Fletcher (South Ribble) (Con)]

On retraining opportunities, may I highlight the lifetime skills guarantee as well? If someone has a job and thinks they can do something better, we can give them £2,000 or £3,000 to help them retrain. That is huge for people in South Ribble who want to go and do something exciting.

[Mr Clarke]

My hon. Friend is right. For the first time, any adult without a level 3 qualification will be fully funded by the Government to access three courses worth £3,600 per person. There are 11 million adults across this country without level 3 qualifications; this policy is directly targeted to support them.

We have invested £2.3 billion to hire and retain work coaches, doubling the number to 27,000, a feat that we have achieved in just eight months, and we are spending over £200 million on providing unemployed people with tailored help with CV writing, interview skills and job search advice. [Interruption.] We have doubled free childcare for working families—we can carry this on all day. This is a comprehensive solution to a very challenging series of problems. The plan for jobs is not about quick fixes; it is about creating sustainable employment so that people can be confident about being able to support themselves over the longer term.

[Matt Western (Warwick and Leamington) (Lab)]

I understand the right hon. Gentleman’s point about job applications and employment but, as we have heard, this debate is about the cost of living. Can the right hon. Gentleman tell the House how much the average family has had to pay in increased petrol costs per year, as well as the average cost of filling up a car?

[Mr Clarke]

This Government have frozen fuel duty for 11 years, so we do not need to take any lessons on that.

It is vital that we keep bearing down on the skills crunch we have been talking about. Our employment strategy is supporting people through a variety of means to gain the knowledge, attributes and qualifications to find work in high-value sectors. Insofar as we achieve that, we will be achieving a much more sustainable, robust economy for the future. Our employment strategy is supporting the finances of people up and down the country, helping them back into work, and helping them earn more and succeed in the jobs of tomorrow.

Meanwhile, Labour offers absolutely no plan to tackle the challenges that the country faces. There is no plan to take the tough decisions on covid; the amounts of money to be raised that are talked about are a fraction of those required to support the demands they are making of the Exchequer. There is no plan to create the high-skilled, high-wage economy, no plan—they voted against it last week—to tackle the NHS backlogs. While we wait for the Opposition to reveal how they would do this, we are taking action.

In April we took definitive action, increasing the national living wage by 2.2% to £8.91 an hour, an increase worth more than £345 a year to a full-time worker on the NLW, and at the same time we extended the NLW to those aged 23 and over. Last year we took action to tackle rent costs by boosting the local housing allowance to the 30th percentile of market rates, and we are keeping cash levels at those higher rates going forward. That will cost more than £950 million this year and has meant that more than 1.5 million households benefited from an additional £600 last year compared with before the crisis. We have protected people from excessive council tax increases and given councils £670 million this year to provide families with help with their bills.

[Paula Barker (Liverpool, Wavertree) (Lab)]

Does the right hon. Gentleman not agree that the Government plans for social care reform will force local authorities to increase council tax?

--- Later in debate ---

[Mr Clarke]

We have always been clear, and it has long been the practice, that a proportion of social care bills are met through council tax, and that is the right thing to do. We are saying that, additionally, we need a credible solution to properly fund social care in the long term, so that people can have the dignity in their old age that they deserve. This is a complex and challenging area of policy. While we have stood up and said that we will do the difficult thing and actually increase taxes so that there is enough money for the system not to fall over, Labour simply plays politics with the issue. Voting against what was a progressive, broad-based tax increase to properly fund adult social care was an irresponsible choice, and in their hearts Labour Members must know it.

The new health and social care levy is a £12 billion a year injection into the NHS and social care that will benefit people of all ages and backgrounds. The decision to raise taxes was tough—of course it was; we believe in a low-tax economy—but it was the responsible thing to do given the impact of covid on the country’s finances. Most importantly, that decision was fair: the levy is progressive because those earning more will pay more, and businesses will share the burden.

[Dame Margaret Hodge (Barking) (Lab)]

I congratulate the right hon. Gentleman on his appointment. The point is not whether extra money needs to be raised to fund the NHS or indeed social care; the point is how it is to be raised. National insurance and council tax are regressive, not progressive, taxes, but there are alternatives such as reform of national insurance, looking at assets as well as income, or looking at regional differences. There is a whole raft of options that the Minister and the Government could have considered; why did they not do so? Why have they chosen a regressive system for raising additional money?

[Mr Clarke]

We did look at this, and Treasury analysis showed that lower-income households will be large net beneficiaries from the package announced by the Prime Minister, with the poorest households gaining the most as a proportion of income. This Government are unafraid to make tough choices in order to safeguard the nation’s finances. The difficult decisions that we have made to increase corporation tax rates and temporarily reduce overseas development assistance—which I know will be considered the right decision by my constituents on Teesside—are clear illustrations of our approach on this front.

As a final point, I remind Members that while we have taken extensive action to safeguard workers’ finances during the pandemic, our record of achievement stretches much further back. Indeed, according to official statistics there were 1 million fewer workless households at the end of 2019 than in 2010, while income inequality was lower going into the pandemic than in that year as well. In fact, over the past 11 years successive Conservative Governments have striven to keep the cost of living in check for millions of households.

Let me give the House some examples. Fuel duty has been frozen for 11 years in a row, cumulatively saving the average driver £1,600. The energy price cap has protected 15 million households in the two years since its launch. We have nearly doubled the personal allowance over the last decade, making it the highest basic personal tax allowance of all countries in the G20 and one of the most generous internationally. In combination, our changes to the national living wage, personal allowance and national insurance currently leave a full-time national living wage employee £5,400 better off in cash terms compared with 2010. I am proud of that, and I think all Conservative Members should be. These measures are just part of a record of achievement that has made a real and lasting difference to people’s lives.

[Tulip Siddiq]

The Minister is talking about everything that he is proud of. Is he proud that the childcare system in this country is the third most expensive in the world, and that parents are making the choice between paying childcare costs or paying their rent or mortgage? Does he think that removing the universal credit uplift will help working parents? I notice that he has not said anything about childcare, so would he care to elaborate?

[Mr Clarke]

I would be delighted to. This Government have doubled childcare for working families to 30 hours a week. That is worth £5,000 a year. For working families claiming universal credit, up to 85% of eligible childcare costs are met. That is the right thing to do. We want to keep women in the workforce, and we want to make sure that it is easy for families to adjust to whatever arrangements best suit them to support their children as they grow up.

A plan for jobs, incomes supported, the economy rebounding—this Government have safeguarded the finances of millions of people and, in doing so, set our country on the path to a strong recovery. Working people right across this country are seeing the benefit. We are not just promising a brighter tomorrow; we are delivering positive, tangible change today. Let me stress that we have no plans to alter our course. We will remain relentless in our mission to provide workers in every part of this country with the better prospects, greater security and increased opportunities that they so rightly deserve.

Better Jobs and a Fair Deal at Work

Simon Clarke Excerpts

Wednesday 12th May 2021 Commons Chamber

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

There is so much to welcome in the Queen’s Speech, which will make our great country safer, stronger and fairer. I am particularly pleased to welcome the legislation to support the introduction of the UK’s first freeports. We have already seen the impact of this Budget announcement in the Tees Valley, where GE Renewable Energy has committed to creating 2,250 jobs, mostly within the confines of the freeport zone.

Speaking of the Tees Valley, it would be remiss of me not to congratulate my friend Ben Houchen on his astounding victory in the mayoral election last week. To win re-election with 73% of the vote represents a huge personal mandate but also a resounding endorsement by the people of the Tees Valley of this Government’s plan to deliver on their priorities. That stands in stark contrast to the remarks of the hon. Member for Chesterfield (Mr Perkins), which were so typical, I am afraid, of the doom and gloom that characterises the Opposition’s approach not just to the crisis and our handling of it but to the wider prospects and outlook of this country. That goes to the heart, I fear, of their electoral dilemmas.

Creating a more prosperous country where someone’s life chances are linked not to where they come from but to who they are capable of being lies at the heart of the mission of levelling up. A good job, a good school for their children and a good home of their own are what millions of people rightly yearn for. On the last point, the planning legislation in the Queen’s Speech is vital if we are to deliver the number of homes required where they are most needed.

In constituencies such as mine, an ordinary family can, with hard work, aspire to own a really nice home of their own. Sadly, however, we need to acknowledge that in too much of the south of our country, our housing system is more less, as a market, completely broken. People working hard, even two-earner couples, are priced out of any realistic prospect of owning the home that they want and are instead trapped in an overpriced and heavily subsidised rental market, which further diminishes their ability to save.

[Richard Fuller (North East Bedfordshire) (Con)]

The issue of planning is particularly important for my constituency, which is growing at three times the national average already. Does my hon. Friend accept that one welcome aspect of reform would be that for the 1 million housing approvals already in place, the economic incentives are there and the pressure is there for those to be implemented?

[Mr Clarke]

I absolutely take my hon. Friend’s point. He is quite right that this is a complex problem and we need to address aggravating factors, including land banking by developers, which undoubtedly makes the situation harder to address.

We must confront the difficult reality that this is fundamentally a problem of supply. We should not privilege the interests of those who have homes over those who do not. In 1979, the green belt was 721,000 hectares. It has since more than doubled to over 1.6 million hectares, much of which is not genuinely green. Up to 11% of UK brownfield land, over 4,000 hectares, lies within the constraint of the green belt. The Government are proposing sensible steps to release some more land, a fraction of the total, to build the homes that are so badly needed while protecting areas that local residents cherish and choose to exclude.

Striking that balance deftly is vital. I am not advocating a planning free-for-all, and nor is anyone on the Government Benches, but I make a serious appeal to the House to recognise the urgency of the problem that we are storing up in the south-east corner of England, in particular, and to take action to address this. Fundamentally, land scarcity is the problem. Today the land that houses are built on accounts for 72% of its sale value. In 1995, it was 55%, while in the 1950s it was roughly 25%. The pattern is clear. From a centre-right perspective, we cannot be surprised if it becomes harder to make the case for popular capitalism in communities where too many people, particularly younger people, cannot see a realistic route to build that capital in their own lives.

We have to fix this, and I make a plea for us to do so. The most important thing we can do is to focus on sensible solutions to this planning impasse, because if we do not get it right, we will cut a generation of people out of home ownership, and there will be very serious consequences that we are already starting to see in the capital. We ought to look at how we distribute the burden of planning more sensibly. Rather than there being some additional homes in almost every community, perhaps we should be looking more at garden towns and even cities, because that might concentrate some of the pressures and some of the agglomeration advantages of creating those new communities.

However we choose to address this problem, we cannot ignore it, and the Government are right to be addressing it as part of a strong Queen’s Speech that will ultimately deliver on the promise of levelling up not just in communities such as mine, which are the typical centre of attention, but in the wider sense, recognising that if we do not get this right there will be exclusion and deprivation in parts of the country that are typically associated with being much more successful and affluent.

Covid-19: Ethnic Minority Disparities

Simon Clarke Excerpts

Monday 1st March 2021 Commons Chamber

[Kemi Badenoch]

I thank the right hon. Lady for her question. I wish that she had actually read my reports, because she would have seen that I addressed that not just in the October report, but in the one that came out last week. Recording ethnicity data on death certificates was one of the recommendations in my previous report. It is not something that can be done overnight—it will probably require legislation—but we are on our way to getting it, so that is some good news.

The right hon. Lady also mentioned the orthodox Jewish community—finally someone from the Labour Benches has talked about this community, and I am very pleased that she has. Research from the London School of Hygiene and Tropical Medicine estimated that 64% of the orthodox Jewish community may have had covid-19 in 2020. The researchers said that the reasons behind this high rate of infection are not yet known.

Strictly orthodox families have significantly larger households than the UK average. They also live in areas of increased population density and, in pre-pandemic times, had regular attendance at communal events and gatherings. I use them as an example because this is why it is wrong for us to mix together lots of different groups. The orthodox Jewish community has been more impacted than many of the ethnic minority groups that get a lot of attention in the press, but we do not say that that is due to structural antisemitism. We look at the underlying factors. Where there are multi-generational households, for instance, that is not due to racism, but is often due to cultural factors. We are not going to take grandparents away from their families because of covid. We are going to provide them with guidance to ensure that they can look after themselves safely; that is this Government’s priority.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con) [V]]

I commend my hon. Friend on the outstanding job that she is doing in encouraging the whole population take the vaccine when they are offered it, because that is so important. In an article on LabourList on 19 February reflecting on covid-19, Labour’s shadow Equalities Minister, the hon. Member for Battersea (Marsha De Cordova), claimed that Government Ministers continue to dismiss and deny “the realities of racism”, and went on to state that “structural racism” was the cause of those disparities. What is the Government’s view on this question?

[Kemi Badenoch]

I thank my hon. Friend for the question, and for the opportunity to reiterate what I said to the hon. Member for Battersea (Marsha De Cordova). Of course racism exists; no one in this Government has ever denied the existence of racism. In fact, I have spoken about my personal experience, as did the Home Secretary at this very Dispatch Box—and 30 Labour MPs, including the hon. Lady, dismissed the Home Secretary’s experiences as gaslighting. However, we will not assume that every issue experienced by ethnic minorities is caused by racism without looking at the evidence. We develop solutions based on where the evidence leads, unlike Labour, whose report in October recommended that we decolonise the curriculum to address covid-19.

There is a legitimate debate to be had on how we tackle racism and address ethnic disparities, but although our means of achieving these goals may differ, that should in no way undermine our shared commitment to building a fairer and more cohesive society. Let me be clear to those who have either misunderstood or deliberately choose to misrepresent what the Government have said: this Government condemn racism, an evil which has no place in a civilised society.

Government's Management of the Economy

Simon Clarke Excerpts

Tuesday 23rd February 2021 Commons Chamber

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con) [V]]

The motion before the House today is not one to trouble serious observers. Over the 10 years that followed the crash of 2007 to 2009, this Conservative Government rebuilt our broken economy. Before the appalling shock of covid, we enjoyed effectively full employment. Public spending was back within our means and the UK ranked eighth in the World Economic Forum’s ease of doing business ranking for 2020. The widespread understanding that the Conservatives are the party who will look after people’s family, home and job is among the most important reasons why we have won four successive general elections, and it will underpin, I am sure, our success in a fifth.

This Government have a clear, bold plan to build back better. Our £280 billion to the crisis was deliverable only because of the tough choices that Conservative Chancellors made in the last decade to fix the roof while the sun was shining. We have made decisive interventions that have preserved much of the muscle power of the British economy during this period of suspended animation, and as my right hon. Friend the Chief Secretary to the Treasury said in his opening remarks, we have been praised by the IMF for the nature of the interventions that we have made.

Even before next week’s Budget, we have the Chancellor’s £30 billion plan for jobs, the £12 billion green industrial revolution and £8.6 billion of accelerated infrastructure spending. This stimulus is hugely exciting areas such as the Tees valley, which had the chance to leverage great amounts of private sector investment off the back of Government commitments of this nature.

Not all the decisions that lie ahead will be easy; there is no point in sugaring the pill. Our public finances are gravely damaged. Some of the damage will of course be repaired when the free market is allowed to operate normally again. However, we need to be realistic. Nothing we said during the course of the 2010s about the danger of running unsustainable levels of public debt has changed. The fact that borrowing costs are historically low is to be welcomed, but we should regard it as a stroke of great good fortune that it coincides with our hour of need, rather than an ongoing inevitability. I challenge anyone in the Chamber to tell me with certainty what the world will look like in the 2030s or 2040s, or what borrowing costs will be.

I believe it would be nothing short of immoral to mortgage our children’s and grandchildren’s futures to chance. For debt to exceed 100% of GDP for the first time since 1963 is simply not sustainable, so I would support and indeed urge some measures of fiscal consolidation in next week’s Budget. These should be targeted at hard-pressed families, and key drivers of employer behaviour such as national insurance should be protected, but I can well see the sense of looking at other options to raise revenue in the medium term, including increasing corporation tax.

Companies are realistic about the economic landscape. They care more about policy certainty and the general prosperity of the economy than about a moderate rise in corporation tax. So I hope the Chancellor will be prudent as well as bold and emphasise the need for discipline and sound money next week as part of our recovery.

[Mr Deputy Speaker (Mr Nigel Evans)]

We hope to get back to Nadia Whittome before the end of the debate, and sooner rather than later. So we now go by video-link to Paula Barker.

Oral Answers to Questions

Simon Clarke Excerpts

Tuesday 20th October 2020 Commons Chamber

[Jesse Norman]

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

[The Exchequer Secretary to the Treasury (Kemi Badenoch)]

[Mr Clarke]

[Kemi Badenoch]

Oral Answers to Questions

Simon Clarke Excerpts

Tuesday 11th February 2020 Commons Chamber

[John Howell (Henley) (Con)]

3. What fiscal steps he is taking to ensure that the Government meets its target of net zero emissions by 2050.

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

The clean growth strategy sets out our proposals for decarbonising all sectors of the UK economy through the course of the 2020s. This year, the Government will be setting out further detail on plans to reduce emissions in key sectors such as transport, energy and buildings, as well as publishing our net zero review.

[John Howell]

The next UN climate conference is the perfect opportunity to set out exactly what we are doing to get our emissions down to net zero by 2050. Can the Minister assure me that the Government are committed to doing all they can to achieve that and to delivering the green jobs that come with it?

[Mr Clarke]

I am a passionate believer in the net zero agenda, and I believe that it is perfectly congruent with economic growth. COP26 presents a huge opportunity for the UK and globally. We are already a leader in tackling climate change, having reduced the emissions intensity of our economy faster than any other G20 country. We will be doing more at Budget.

[Sir George Howarth (Knowsley) (Lab)]

The Minister will be aware that, as part of the drive towards zero emissions, there was a recent announcement about bringing forward the phasing out of diesel, petrol and hybrid vehicles to 2035. What assessment has he made of the economic and fiscal impact of doing so, and in particular the loss of jobs that will happen, because the industry is in imminent danger of collapse?

[Mr Clarke]

We are consulting on the option of accelerating the phasing out of petrol and diesel cars, because the average lifespan of a vehicle is around 14 years, and if we are to hit our net zero targets by 2050, we need to be sensitive to that. I can reassure the right hon. Gentleman that we are listening carefully to the industry on this issue. Just last week, I met the Society of Motor Manufacturers and Traders for a productive conversation on how we can do this in a way that supports the sector.

[Anthony Mangnall (Totnes) (Con)]

5. What fiscal steps he is taking to help small businesses.

--- Later in debate ---

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

The UK takes our climate commitments exceptionally seriously, and we have pledged to end the use of unabated coal here in the UK by 2025. Clearly we want to ensure that that applies to our work overseas as well, and that is something that the Government as a whole take very seriously. It is the subject of ongoing ministerial discussions and we are determined to ensure that we support the right initiatives across the world.

[Mrs Flick Drummond (Meon Valley) (Con)]

T4. Over the past few weeks, I have met a number of businesses in the Meon Valley whose growth is being held back by poor internet connectivity. What funding exists to help businesses in rural areas to boost their productivity and growth by improving their broadband?

[Matt Western (Warwick and Leamington) (Lab)]

T8. Will the Chancellor ensure, in the Budget in March, that the automotive manufacturing sector gets the support it requires? He will know that there was a decline of 14% in our manufacturing production last year, which represents a big hit to the Treasury. Will he put in place the support to ensure a transition from fossil fuels, so that we can still produce vehicles such as diesel-powered units in good numbers while supporting the switch to electric vehicles?

[Mr Simon Clarke]

I thank the hon. Gentleman for his question. Tomorrow I am attending a roundtable at 11 Downing Street with representatives of the advanced manufacturing industry, and we are determined to take their views into account as we make this transition. We are supporting the industry through initiatives such as the Advanced Propulsion Centre and the Faraday battery challenge, and we are determined to ensure that the sector evolves in a way that boosts our growth prospects as we decarbonise.

[Damien Moore (Southport) (Con)]

T5. Last year my town of Southport benefited from a £25 million town deal. What more is my right hon. Friend doing to help other towns up and down the country to level up?

--- Later in debate ---

[Jo Gideon (Stoke-on-Trent Central) (Con)]

The Goodwin International training school in my constituency is an exemplar of skills training by a successful modern manufacturer with a world-class reputation. For less established firms such as challenger small and medium-sized enterprises, what support is on offer to level them up to Goodwin International standards?

[Mr Simon Clarke]

I had a good meeting yesterday with my hon. Friend and fellow Stoke and north Staffordshire MPs. The Government are supporting small firms across England through the network of 38 growth hubs, one of which is based on Stoke-on-Trent. In our manifesto, we announced our intention to create a national skills fund, which will help to transform the lives of people who have not got on the work ladder and lack qualifications, as well as people looking to return to work or to upskill.

[Peter Grant (Glenrothes) (SNP)]

Every year Scotland exports a quarter of a billion pounds worth of salmon to the European Union. This week, the Scottish Salmon Producers’ Organisation expressed serious concern about the continuing uncertainty of Brexit. What assessment has the Chancellor of the Exchequer made of the impact on this vital industry of the Chancellor of the Duchy Lancaster’s announcement that “as friction-free as possible” trade with the EU means “not friction-free at all”?

Beer and Pub Taxation

Simon Clarke Excerpts

Wednesday 5th February 2020 Westminster Hall

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

I join hon. Members in paying tribute to my hon. Friend the Member for Dudley South (Mike Wood). He has done the unusual thing of bringing half of Parliament along to a Westminster Hall debate, which is not only a great tribute to his popularity as chairman of the all-party parliamentary group, but a reflection of the importance that we all ascribe to this issue, which affects our communities.

I thank all hon. Members who have contributed to the debate. As has been said, there has been a tone of great unity on the issues. There is a clear consensus about the centrality of pubs and the beer industry, and about the solutions that exist in terms of making sure we help the sector to thrive long into the future. It must be said that asking elected representatives to talk about lowering the burden of tax on beer and pubs may be the nearest thing we ever get to motherhood and apple pie in this place, but it is a serious issue that goes to the heart of community life, as the hon. Member for Barnsley East (Stephanie Peacock) said. Pubs are places to meet and socialise, and breweries are important regional employers.

In his delightful speech, my hon. Friend the Member for Clacton (Giles Watling) reminisced about his trips to Stratford. As we know, Shakespeare has a line for everything, including the following from “A Winter’s Tale”:

“a quart of ale is a dish for a king.”

He was, of course, right—we can surely all agree on that. With that in mind, it is a great tribute to the United Kingdom that we have over 2,000 small breweries, and beer exports accounted for almost £500 million-worth of sales last year.

[Alex Chalk (Cheltenham) (Con)]

Does the Minister agree that, with a benign tax regime, independent British brewers can be an even greater exporting strength? The DEYA brewery in my constituency has achieved extraordinary international strength over the past five years. Has the time not come to back independent British brewers to go global?

[Mr Clarke]

I could not agree more, and that is the spirit of Brexit. We need to take advantage of opportunities to drive exports. It is something that we want to do across the piece to ensure that we deliver a successful economy, have a competitive business tax regime and support businesses large and small. That is what the Government have been intent on doing. Our employment allowance changes reduced national insurance contributions by up to £3,000 for over 1 million employers. We have cut corporation tax and frozen or cut beer duty in six of the last seven Budgets, which means that beer duty is now at its lowest level in real terms for over 30 years, and we have repeatedly given support to pubs through the business rates system.

[Jim Shannon]

UKHospitality has said that these businesses represent 10% of UK employment and generate £39 billion of tax for the Exchequer. Does the Minister agree that engaging with the sector would help businesses to survive and to grow?

[Mr Clarke]

The hon. Member is an assiduous attender of Westminster Hall debates, and I am absolutely delighted to say that his persistence will be rewarded. My officials and I will always be glad to engage with the sector.

One of the most important issues that came up in the debate was raised by the hon. Member for St Albans (Daisy Cooper) and my hon. Friends the Members for Devizes (Danny Kruger) and for North West Durham (Mr Holden): the impact of business rates and the associated challenges. Since 1 April 2019, eligible pubs with a rateable value below £51,000 have received a one-third discount on their business rates bills. As my hon. Friend the Member for Totnes (Anthony Mangnall) rightly pointed out in his excellent speech, they will receive even greater support from 1 April as we increase the discount from one third to 50% and introduce a new £1,000-worth of relief for pubs with a rateable value below £100,000. Eligible pubs will be able to claim both reliefs.

[Robert Largan (High Peak) (Con)]

I am pleased about the support the Government are putting into pubs. As hon. Members have mentioned, they are the centre of our communities. I want to highlight a pub in my constituency, The Pride of the Peaks in New Mills, which this Christmas gave 50 hampers and Christmas meals to elderly people to help combat loneliness. Does the Minister agree that pubs are the absolute heart of our communities?

[Mr Clarke]

My hon. Friend’s intervention draws attention to precisely the social value that pubs add. His constituency is a rural one in Derbyshire, and many small pubs currently benefit from 100% rural rate relief, as well as small business rate relief. Those are the kinds of reliefs that we want to encourage in order to ensure that we support businesses in all areas of the country, not just in our big towns and cities.

All pubs will continue to benefit from wider reforms to business rates, most notably the switch from RPI indexation to CPI indexation, which took place in April 2018. That change alone is saving business rate payers over £6 billion over the next five years. More widely, the Government are committed to carrying out a fundamental review of the business rates system, and further details will be announced in due course.

The hon. Member for Barnsley East mentioned the impact of pub closures on the high street, which is something the Government take into account. We have initiated the future high streets fund, which is designed to mitigate the pressures on the high street due to changing retail patterns.

[James Daly (Bury North) (Con)]

One of the main burdens on pubs in my area is the disgraceful expulsion of Bury football club from the Football League. Anything that can be done to assist pubs in my area and the rebirth of Bury football club would be an eminently good thing.

[Mr Clarke]

I was genuinely saddened by the expulsion of Bury. I am a football fan myself, and Middlesbrough came very close to expulsion from the Football League in 1986. I know the damage that it does to a community and the fear that it strikes. We will do everything we can to support pubs in Bury and elsewhere in the March Budget.

As hon. Members will know, recent data from the Official for National Statistics are more encouraging, showing that the number of pubs in the country has increased for the first time in a decade. The number of pubs employing fewer than 10 people also grew, showing that the revival extends beyond the big chains. I appreciate that it is early days, and we are certainly not claiming that we have reversed all the challenges facing the pub trade, but it is good to see data showing that the cumulative impact of the changes we are making is positive. In fact, pub revenue is at its highest level since 2010, and employment is at a high not reached since 2001. Those are fantastic results for the sector and show that the pub remains a vital part of modern Britain.

I now turn to future possibilities. The Conservative manifesto committed the Government to review the structures of our alcohol duties now that we are free to determine our own priorities outside the European Union, and the Chancellor will make announcements about this in due course. The hon. Member for Mitcham and Morden (Siobhain McDonagh) referred to our review of small brewers relief, which is obviously really important—indeed, the hangover has persisted for too long.

[Sarah Atherton (Wrexham) (Con)]

A few years ago, I owned and ran a microbrewery, so I know some of the difficulties facing breweries, including the fledgling Magic Dragon brewery in Wrexham. I urge the Minister to support the cut in beer duty and increase small brewers relief.

[Mr Clarke]

We absolutely want the Welsh dragon to be roaring, so I take my hon. Friend’s point. As a serial entrepreneur, she has a lot of experience in this area. We want to ensure that the operation of small brewers relief helps to drive innovation and growth, and we will shortly make further announcements about that through the Budget process. I want to reassure the hon. Member for Pontypridd (Alex Davies-Jones) that the review is not about whether to abolish small brewers relief; it is about its operation and ensuring that it is working effectively.

My hon. Friend the Member for St Austell and Newquay (Steve Double) referred to the 85 pubs in his constituency, which I look forward to going round when I come down to Cornwall in due course. He referred to the burden of taxation. Obviously, when we are doing these things as part of the Budget process, a cut to alcohol duties represents a significant loss in revenue for the Exchequer. The effect of inflation means that, in real terms, beer duty has been cut every time that we have frozen it over the past several years. Even in nominal terms, beer duty is now lower than it was in 2012, but we will continue to review all taxes.

[Grahame Morris]

Can the Minister clarify his thoughts about the cliff edge after the production of 5,000 hectolitres, to which several hon. Members have referred? Will there be a taper?

[Mr Clarke]

I am a big fan of the Castle Eden brewery. As a fellow north-easterner, I used to pass it regularly. Treasury policy is to avoid precipitate cliff edges that distort behaviour. Clearly, I cannot pre-announce any of the findings of the review. There are a range of factors and representations that need to be borne in mind, but we will issue clarity to the sector in the next few weeks.

[Dave Doogan]

I appreciate what the Minister says about prior notice, but will he take a look at the disproportionate effect of tax on on-sales compared with off-sales? It is unsustainable, notwithstanding the issues of public health, public nuisance and community support.

[Mr Clarke]

I take the hon. Member’s point. Clearly, we want to support drinking in social settings such as the pub. It has clear societal benefits as well as business benefits, and the Treasury takes that into account.

The Treasury keeps all taxes under review and is deeply sensitive to the range of challenges facing the pub sector and brewery sector, which we are keen to support. The support of all hon. Members present is powerful, and it speaks to the fact that this is a decision we need to get right. I know that all hon. Members will keep us under close scrutiny about the decisions we make.

I thank my hon. Friend the Member for Dudley South for securing the debate. What has happened today is a great tribute to his leadership on these issues, and he deserves our thanks.

National Productivity

Simon Clarke Excerpts

Wednesday 22nd January 2020 Westminster Hall

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

I begin by echoing the thanks of all Members to the hon. and gallant Member for Barnsley Central (Dan Jarvis) for calling today’s debate on an issue that goes to the heart of so many of the issues facing our economy and our society. I congratulate him on his key role in progressing the devolution deal for South Yorkshire, which we all hope will help to unlock significant productivity benefits for the people of his region. I know he shares this Government’s view that devolution across the nations and regions of the United Kingdom can boost productivity across the country, and we look forward to working together to achieve that.

Giving power to local people on the ground is undoubtedly the best way to make the most of every area’s unique strengths and to confront their unique challenges. That is why since 2014 the Treasury has led negotiations with several city regions across the country to strike landmark deals with eight places as part of a devolution revolution. The slogan might have changed, but the metro mayors are now delivering on local priorities. Tees Valley, where I live, is home to the South Tees Development Corporation, which is regenerating the former SSI site at Redcar. Manchester, the home of the hon. Member for Stalybridge and Hyde (Jonathan Reynolds), has a focus on trams. We are talking about Northern Powerhouse Rail connecting up the regions better. Liverpool has its rail networks, as the hon. Member for Wirral South (Alison McGovern) alluded to, which are key to driving the benefits that we all want. Our commitment to enabling local people, who know their areas best, to be the masters of their own economic destiny could not be stronger.

We saw further progress just last week, as South Yorkshire moved forward with its own deal that agreed £900 million of new Government funding over 30 years for investment in local priorities identified by the Mayor and his combined authority, not by Westminster. I will be travelling to Leeds next week to hold talks with West Yorkshire’s leaders on a mayoral devolution deal for Leeds city region. We are determined to build on Leeds city region’s strengths in digital, financial services and the creative sectors, as we level up and share the success of the opportunities ahead. We will put our money where our mouth is for the right agreement. I will go to Leeds next week in search of that deal.

We know that Britain is currently too centralised and that solving the productivity puzzle will need us to think differently. We cannot just sit in Whitehall, pull a lever and cross our fingers—I completely understand that. People want control over their lives to come up with their own plans and, crucially, to be able to put them into action more quickly than the machinery of central Government sometimes allows. We need to give them that. We are hugely committed to making devolution to Sheffield city region a success. We look forward to continuing to work closely with regional leaders to build an economy that works for everyone by improving connectivity, strengthening skills, supporting enterprise and innovation and promoting trade to ensure that the people of South Yorkshire benefit from the powers and investment envisaged in the deal.

Clearly, such issues transcend the borders of England. The hon. Member for Strangford (Jim Shannon) referred to Northern Ireland, and I am delighted that we have managed to get devolution back up and running at Stormont. It is crucial to ensuring that all parts of the community in Northern Ireland feel the benefits of renewed growth and renewed control over their own destiny. I very much look forward to picking up talks with the new Ministers there as part of our efforts to make sure that our policies and theirs work as closely as they can for our shared benefit.

In her powerful speech for the SNP, the hon. Member for Glasgow Central (Alison Thewliss) mentioned the UK shared prosperity fund. Obviously, we are determined to make sure that that is delivered correctly; we need to take the time to get that right. I confirm that we will be setting out our full plans at the comprehensive spending review later this year. That will be the moment when we start unveiling how that will work and give people the clarity that they need to make the investment decisions over the course of the years ahead, as we transition out of the European Union.

[Alison Thewliss]

The Minister says “correctly”. His definition and interpretation of that might be slightly different from mine. Will the Scottish Parliament and the Scottish Government have full control over the purse strings and decision making for the shared prosperity fund?

[Mr Clarke]

I am afraid the hon. Lady will have to wait for the publication of the consultation at the comprehensive spending review. The key point is that we want to make sure that this gives the Scottish Government meaningful control over key aspects of resources. She mentioned European funding in her remarks. The point I would submit is that that money was fundamentally UK money that was recycled back to this country, with conditions attached. We should be clear that we want to devolve control of that funding to the lowest possible level, and we will inevitably want to do so in a spirit of genuine concord with Holyrood.

The Government will set out further information about our plans here in an English devolution White Paper this year, which will outline our strategy to unleash the potential of our regions, level up powers and investment and give power to people and places across the country. Alongside that, we will publish a refreshed northern powerhouse strategy, building on the successes of the existing strategy in bringing together local leaders to address key barriers to productivity in the regions.

As the hon. Member for Islwyn (Chris Evans) said, productivity is not a concept that always commands headlines, but it goes to the heart of national prosperity. It is the best way to boost wages, improve living standards and enhance economic growth across the country, regionally as well as nationally. We are working hard to build a stronger and fairer economy—dealing with the deficit, helping people into work and cutting taxes for businesses and families. There are 3.7 million more people in work, and the hon. Member for Wirral South alluded to the record rate of women in employment, which is worth highlighting. More than 60% of the increase is in regions outside London and the south-east, but we need to go further and we need to be candid about the extent of the productivity challenge we face. Productivity growth slowed globally in the aftermath of 2008, but the slowdown has been particularly acute here. The Government are committed to tackling that challenge as we enter a new decade in which we are less under the shadow of the financial crisis and the impact on our public finances.

The key will be an ambitious programme of investment. Infrastructure is a key driver of productivity—it is not sufficient in itself, but it is an absolute good. It links people to jobs and products to markets and supports supply chains, encouraging domestic and international trade. It affects daily life: speeding up internet connectivity means less time staring at blank screens; improving roads and trains, which the hon. Member for Stalybridge and Hyde rightly mentioned, means less time stuck waiting to get to work and more time to play; decarbonisation means cleaner air for us all to breathe and more efficient energy. When the national infrastructure strategy is published alongside the Budget on 11 March, that will be a core moment in this piece. We will set out further details of our plan to invest £100 billion to transform our infrastructure and achieve a real step change. The strategy will set out our long-term ambitions across all areas of economic infrastructure, including transport, local growth, decarbonisation, digital infra-structure, and infrastructure finance and delivery.

Alongside that investment in our physical capital, it is essential to focus on and improve our human capital, as the hon. Member for Wirral South, whom I had the pleasure of serving alongside on the Treasury Committee, rightly said. I know that from my constituency. The hon. Member for Barnsley East (Stephanie Peacock) is right to say that talent is evenly spread across this country, but opportunity is not. We know that, which is why our recent manifesto pledged a national skills fund—I was briefed on it yesterday, and it is exciting, bold and visionary. We all know that it needs to happen, because there has been profound personal, human dislocation as part of our transition from one era of industrialisation to a new one. That has had uneven consequences across England, let alone across the UK. We will seek to give a leg up to people looking to get onto the career ladder, support those wanting to switch careers, and support growth by ensuring firms can get access to the skills they need.

The hon. Member for Stalybridge and Hyde referred to Be the Business. I had the pleasure of meeting it last week, and it is hugely impressive. I heard first-hand from several of the entrepreneurs it has helped about how targeted interventions and upskilling have helped them to be better business leaders. We need more of that to create a culture of entrepreneurship, which, as the hon. Member for Islwyn said, is not always common in all parts of the United Kingdom.

Increasing our productivity also means innovating. The hon. Member for Barnsley Central referred to the AMRC in Sheffield. That is precisely the kind of thing that we want to see more of. That is why we are committed to meeting our target of raising investment in research and development to 2.4% of GDP by 2027, ensuring that the UK remains at the cutting edge of science and technology. One of the great frustrations of recent decades is that the UK has so often come up with brilliant ideas but has not had the opportunity to build them out at scale. That needs to change. If we do that correctly, there is so much good that we can unlock and economic potential that we can unleash. We are increasing public spending on science and innovation by an additional £7 billion by 2021-22, which marks the biggest increase in 40 years.

The point that the hon. Member for Wirral South made about human capital, and in particular women, was well made, and I take it to heart. It is something I have been talking to my officials about. The Government are seized of the cost of childcare and the need to resolve fundamentally the problem we face with social care, which has so many spillover consequences for our health service and our economy, and we will be coming forward with proposals. Particularly on the social care piece, we genuinely welcome constructive engagement with the Opposition as we try to build a settlement that has lasting legitimacy. We want to do it right for successive generations, which will doubtless encompass Governments of both colours.

On female entrepreneurship, my predecessor—the current Secretary of State for Housing, Communities and Local Government—and I are working with Alison Rose to develop the Investing in Women code, which will help to pioneer work. We are looking to increase lending to female entrepreneurs to increase the possibilities. Clearly, if someone cannot even make the time to work because of competing priorities, that constrains them. I genuinely take the hon. Lady’s point to heart, and I will continue to work on it with officials.

[Alison McGovern]

Will the Minister make a commitment that the Treasury’s next productivity strategy, connected to the Budget or otherwise, will have a gender analysis of who does what work and for what remuneration?

--- Later in debate ---

[Mr Clarke]

That is certainly an interesting idea, which I promise to look at. I would very much welcome the hon. Lady’s sending through her thoughts on this. We have, for example, committed to compulsory gender pay gap reporting. Those kinds of tools that can help to shine a light on hidden inequities, and we are keen to look at that. I am certainly happy to consider that idea.

We are excited about putting our plans into action, but we have to make sure that, when we begin to tackle the productivity puzzle, everyone in our country benefits. That is why we are taking advantage of low interest rates to invest in our priorities across the regions and nations of the UK. In our manifesto, we committed to spend £4.2 billion on upgrading local transport connections in England’s largest cities, and £500 million a year on tackling potholes—a recurrent source of frustration for all of us across the country. We are spending over £28 billion on roads through the national roads fund from 2020 to 2025—the largest ever investment in England’s roads. We are making sure every corner of the country benefits: we are spending almost £3 billion in the north, £2 billion in the midlands, and £2 billion in the south-west on improvements to our major road infrastructure. We are investing £2.5 billion in up to 18 city regions across England to improve roads, public transport, and cycling and walking networks through the transforming cities fund.

The hon. Member for Barnsley Central will no doubt welcome the fact that the Sheffield City Region and West Yorkshire Combined Authorities have both been shortlisted for the £1.2 billion transforming cities fund. We will be announcing allocations from the fund shortly. I am sure that he has seen that the Government are also investing in a £3.6 billion towns fund to unlock regional potential and create places across the UK where people can live and thrive. I am sure he will be pleased that we have allocated more than £12 billion from the local growth fund to local enterprise partnerships, to be spent on local priorities.

I pay tribute to everyone who has taken the time to contribute. This has been a genuinely good debate, conducted in a tone of consensus. So many of the issues raised are accepted on both sides of the Chamber as priorities that we need to tackle as we move into the 2020s. From Strangford to Sheffield, we remain highly ambitious. On 11 March, the Chancellor will set out a Budget that lays the foundations for what we should all hope is a decade of renewal that will unleash our country’s potential and level up opportunities.

[Jonathan Reynolds]

In an interview with the Financial Times at the weekend, the Chancellor very ambitiously said he intends to double the trend rate of economic growth that we have seen since the Conservative party returned to power. What kind of improvement in productivity would the Minister like to see, and what can we use to hold him to account for the successes of the strategy?

[Mr Clarke]

It is best that we wait for a fiscal event to set out our targets in this area. The Government are clear that we need to increase trend growth. There is no doubt that we accept that challenge, which is thrown down quite legitimately. As we have now cleared the rubble from the 2008 crisis, we need to aspire to do more. I accept that in the spirit in which it is offered. It is right to challenge the Government and hold us to account on whether we can now put that vision into practice. There is always a lag when it comes to investment on the scale and of the nature that we are talking about, but we are doing things that I hope by the end of the Parliament will have made a demonstrable impact, in terms of changing our economic structure.

[Alison McGovern]

I apologise for testing your patience, Mr Paisley. Doubling the trend rate of growth would really return it only to pre-crash levels of growth. To repeat the questions that my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) just asked, what measure for the Government to be held to, specifically on productivity, will the Minister commit to?

[Mr Clarke]

That is simply not something that I am in a position to commit to on behalf of the Government today. As I said to the hon. Member for Stalybridge and Hyde, we are resolved to do more to increase growth in a way that will mean that, the next time we come to review these statistics at the start of a new Parliament, there is a new tone and a new level of ambition realised in the results. That is genuinely the Government’s commitment. We are particularly interested in ensuring that areas such as Merseyside, Teesside, Greater Manchester and South Yorkshire lead the charge and are not left behind.