Oral Answers to Questions

Debate between Simon Clarke and Clive Betts

Monday 17th October 2022 Commons Chamber

[Mr Speaker]

I call the Chair of the Levelling Up, Housing and Communities Committee.

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

It seems that investment zones are one of the few bits of the mini-Budget that are still on the table. Can the Secretary of State clearly explain how investment zones will be financed? Will it be completely new money, and, given the pressure that local authorities have been under from austerity and now from inflation, will he give an assurance that the money for investment zones will not be found by transferring it from other parts of the local government budget and particularly from levelling-up funds?

[Mr Clarke]

Yes, this is new money. It is coming from the Treasury as part of the settlement. Clearly, my right hon. Friend the Chancellor will be setting out the medium-term fiscal plan on 31 October and that will be the moment of confirmation.

Oral Answers to Questions

Debate between Simon Clarke and Clive Betts

Tuesday 28th June 2022 Commons Chamber

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

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

[Mr Simon Clarke]

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

National Insurance Contributions (Increase of Thresholds) Bill

Debate between Simon Clarke and Clive Betts

2nd reading
Thursday 24th March 2022 Commons Chamber

[Mr Clarke]

The hon. Gentleman is a fantastic contributor to this place and he takes a keen interest in looking after people, including the most vulnerable people, in his constituency. I absolutely recognise that we want to make sure that families right across the income spectrum are supported. That is why, as I say, we have put in place a package of measures that has at its heart a desire to make sure that we have a strong safety net in place. We have to consider all the decisions we take in the round. To put it in some context, the United Kingdom spends £243 billion a year on our wider welfare spend, including pensions. This is a country where we do a huge amount to make sure that everyone is supported. We have to consider all our decisions in the context of both wider affordability and how the system operates. The welfare system always operates on the basis of an uprating in September for changes in the ensuing April. If there is high inflation during the course of 2022, as is forecast, that will be reflected in the uprating figures for April 2023, and the triple lock will be in place to protect families.

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

The Minister has talked about one side of the budget. The other side of the budget is spending. Local authorities provide incredibly important services that are of particular benefit to the poorest in society. Local authorities have suffered more than any other part of the public sector from the austerity period. The Government claimed that local authorities would get an increase in their spending power this year, but will he now confirm that, with the predicted level of inflation, they face a significant real-terms cut to their spending that will affect all the services that they provide?

[Mr Clarke]

As a former local government Minister, I hope the hon. Gentleman knows that I do value the impact that good local government can have on people’s lives, which is why we apportioned £4.8 billion extra at last autumn’s spending review to support local authorities in delivering vital services. It is of course the case that all the budgets that we announced at the spending review are affected by inflation, but the Chancellor is rightly clear that we cannot keep on simply mechanically adjusting the spending review decisions in the light of inflation, because that option would not be affordable within our headroom and would obviously not be open to family budgets either.

All Departments—national and local—will have to play their full part in managing the impact of inflation. There is much that can be done in this space through improved innovation and driving down costs. That is why a new Cabinet committee has been established in the last week that will squarely address how we can drive efficiency, including, for example, by doubling NHS efficiency targets so that we can deliver better value for money for the taxpayer. These are difficult times, but we have to ensure that we live within our means.

National Insurance Contributions Increase

Debate between Simon Clarke and Clive Betts

Tuesday 8th March 2022 Commons Chamber

[Dr Caroline Johnson]

Will the Minister give way?

[Mr Betts]

Will the Minister give way?

[Mr Clarke]

I will take one more intervention and then I will make some progress.

--- Later in debate ---

[Mr Clarke]

I heard a lot of warm and fairly vague phrases, but I did not hear a concerted plan, and that of course goes to the heart of this question. The hon. Member for Leeds West said in her speech that the voters are smart and savvy, and I agree with her, but they know an Opposition playing politics when they see it.

The £12 billion average annual investment, which is of course a recurring investment—that is the crucial point—to meet a recurring need, will tackle the elective NHS backlog, while ensuring that the health service has the resources it needs over the coming years. It will strengthen our adult social care system, allowing us to invest at least £500 million to give our army of extraordinary social care workers new skills, and it will enable the Government to roll out the long-awaited reforms to funding for families through a cap on adult social care costs.

This is a transformative policy that will tackle serious and long-standing issues, but to fund such a significant increase in permanent spending we have had to make the tough but responsible choice to increase taxes. Only a broad-based tax such as income tax, VAT or national insurance can raise the sums needed for such significant investment. Using NICs as the base has several advantages. First, it means the levy will be paid for by employers, employees and the self-employed, including, from April next year, by workers over state pension age.

Secondly, this is a progressive way to raise funds because those who earn more will pay more: the top 15% of taxpayers will pay half the revenue. A basic rate taxpayer will pay about £3.49 per week, while 6.2 million—6.2 million—of the lowest earners will be exempt entirely from the levy and most small businesses will not be affected at all.

[Mr Betts]

Will the Minister give way now?

[Mr Clarke]

I will give way.

[Mr Betts]

The Minister talks about health and social care, but will he confirm that there is not a single penny in this extra funding to enable local authorities to cover their social care costs in their budget, which they are struggling with, or to improve the level of the social care they are offering? This crisis has now been going on for years and years, and the Government have promised to fix it. Given that this is a permanent increase in funding, will he also confirm that we are not going to see a tax cut in the next couple of years, just before the election—up today, down tomorrow?

[Mr Clarke]

On the hon. Gentleman’s point about our support for local authorities, we are giving £1.6 billion extra in each year of the spending review we announced in October to support local authorities with the challenges they face. Of course, the levy will fund £5.4 billion of investment in social care over the next three years, so it is a serious response to a serious challenge.

To return to the advantages of the way we have structured the levy, the third design advantage that stands out is that we have also announced an equivalent increase in dividend tax rates. There is therefore fairness across the spectrum in how this is being paid for.

I know there are some who ask why we need to raise tax at all, and instead say that we should borrow to fund permanent increases in spending. Throughout this speech I have outlined all that the Government have done to protect people’s finances as we recover from the pandemic and deal with the rising cost of living, and those actions mean our economy has made a strong recovery from covid-19. Our GDP has rebounded, and over the past months job vacancies have hit record highs, while the unemployment rate has fallen sharply. However, it is easy to forget that all those steps come at a huge cost. Covid casts a long shadow across our economy. Indeed, our debt is at its highest since the early 1960s. As I have reminded the House on many occasions, that high level of borrowing leaves us susceptible to shocks, including changes in interest rates and inflation.

Oral Answers to Questions

Debate between Simon Clarke and Clive Betts

Monday 20th July 2020 Commons Chamber

[Mr Clarke]

I pay enormous tribute to the care workers on Teesside and of course to our local NHS, which we share as Teesside MPs. This has been a constantly evolving and very complex situation, as Governments around the world, including our own, have obviously learned as matters have progressed. We have acted consistently and in good faith throughout. We have worked very hard with the care sector to protect patients. The £600 million infection control fund that we have instigated is designed to ensure that the care sector is safe, with a strong measure of containment against the disease for patients going forward.

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

The Minister may not know this, but on 1 June, following the Prime Minister’s appearance at the Liaison Committee, I wrote to him about local authority involvement in tackling this virus. In particular, I asked him to

“give an assurance that data will be shared fully with all partners…In particular…directors of public health.”

I have not had a response to that letter, but I have heard from Greg Fell, the director of public health in Sheffield, and other directors that they are only getting generalised data—they are not getting, on a daily basis, the names, addresses and NHS numbers of those infected and those they have been in contact with. Does the Minister accept, therefore, that while this information is held by Public Health England, it needs to be passed on to directors of public health, and passed on quickly, and will he give an assurance that that will happen this week?

[Mr Clarke]

Since 24 June, all local authorities have been able to access postcode-level testing data through their director of public health, and that is securely shared by PHE on a weekly basis. I understand that that has been going on pretty much from the moment that it became available. PHE also shares information with local directors of public health as part of the routine investigation of outbreaks and incidents. That includes information on individual cases and their contacts, as required, to support the public health response.