Spring Statement

John Bercow Excerpts

Wednesday 13th March 2019 Commons Chamber

[Several hon. Members rose—]

[Mr Speaker]

Order. It might be helpful to the House if I indicate that, given the pressure of time and the importance of subsequent business—to which reference was made earlier—it will almost certainly not be possible on this occasion for me to take everybody on this statement, which, as the House knows, is ordinarily my practice. I am looking to move on at approximately 2.45 pm. It may be possible to move on before then, but I certainly do not want it to be significantly later than then.

[Mr Kenneth Clarke (Rushcliffe) (Con)]

May I sincerely congratulate my right hon. Friend the Chancellor on keeping his head while all around are losing theirs? I am sure that he would have liked to have delivered a rather different statement if the vote had gone the other way last night. Does he agree that economic forecasting is difficult at all times, particularly at a time of slowing global growth, trade war, Chinese debt problems, and, above all, the uncertainty of Brexit? Does he agree that the optimistic forecasts by the OBR are based on a smooth progression to Brexit, with no new barriers to trade and investment with our most important market on the basis that we currently enjoy under the customs union of the single market?

Finally, will the Chancellor guarantee to me that he will keep his fiscal powder dry—keep his reserves, as he may need them to avoid a recession or a financial crisis; that he will resist the irresponsible approach of the Opposition, who have the idea of spending and borrowing money only as a policy platform on every issue; and that he will resist all the other understandable demands from all parts just to spend money in response to lobbies, because he has the duty of keeping the British economy intact at a time of almost unprecedented crisis and unforeseeable problems?

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[Mr Hammond]

My right hon. Friend is right, of course, about the OBR’s Brexit assumption—I said so earlier and the OBR has said so clearly. It has to make an assumption, and until there is a new policy, that is unfortunately the way it is mandated to work. On the forecast, I have addressed this in this House many times before. The forecast is based on those assumptions. We are either going to have a no-deal exit, in which case I would expect a significantly worse outturn, or we are going to lift this cloud from above our economy, in which case I would expect a significantly better outcome. A number of important commentators, including the Governor of the Bank of England, have suggested over the past couple of weeks that there is more juice in the economy if we can just lift this cloud.

I have noted my right hon. Friend’s early bid for further education in the spending review. There will be lots to discuss as we go into the spending review, and we will ensure that there are proper, structured arrangements for Members of this House to make their views known. My right hon. Friend the Chief Secretary will be happy to engage across the House.

My right hon. Friend asked about the target for the mid-2020s. I simply do not accept that the figures published today show that it is impossible to reach a balanced budget in the mid-2020s. In 2023-24, the deficit will be 0.5% of GDP, but whether we choose to get the deficit down to zero or choose to do other things is a choice, and we are lucky to have it.

[Mr Speaker]

The hon. Member for Manchester Central (Lucy Powell), who is ordinarily known for her buoyant and enthusiastic smile, was gesticulating at the Chancellor to speed up. I think she was auditioning for the role of Speaker, and presumably seeking to give the right hon. Gentleman a masterclass in brevity, notwithstanding her desire often to make her own point with enormous eloquence but at not inconsiderable length—but we will see.

[Rachel Reeves (Leeds West) (Lab)]

In today’s forecast from the OBR, GDP growth this year is being revised down by 0.4%. The largest downward revision is to business investment—a downward revision of 3.2%. Business investment is now expected to shrink by 1% this year after shrinking by 1% last year. The Federation of Small Businesses says today that confidence is at “rock bottom”. The CBI says on tariffs that there has been

“no consultation with business and no time to prepare”,

and that this is

“a sledgehammer for our economy.”

Does the Chancellor recognise that businesses are losing patience with this Government and that unless businesses invest and help to grow our economy, productivity and wages are going to stay at rock bottom? What is he going to do to reverse this incredibly worrying and dangerous reduction in business investment?

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[Several hon. Members rose—]

[Mr Speaker]

The hon. Member for Manchester Central is much talked about. I think it is time we heard from her.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

Thank you, Mr Speaker. I am reclaiming “bossy”.

Is it not the case that cuts to police, local services and schools are a false economy? We pay for the cost of failure, the cost of rising knife crime, the cost of school exclusions, the cost of rising poverty and the cost of failing families and children. Will the Chancellor prioritise in his forthcoming spending review early intervention, to support families and help children get the best start in life?

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[Several hon. Members rose—]

[Mr Speaker]

Order. We need to speed up, because I want to accommodate colleagues. Can we have a one-sentence question?

[Ann Clwyd (Cynon Valley) (Lab)]

I, too, want clarity from the Chancellor. When he talked about environmental spending in England, did he mean only England, or England and Wales? Will a certain amount of money be given to Wales? When I was first elected, 35 years ago, my constituency had one of the worst industrial polluters in the whole UK. It has left us with 27 acres of derelict land at the bottom of a valley, and a lot of wasted investment. Will he please help us to get that toxic waste cleared up and taken away so that the land can be made suitable for people to use?

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[Several hon. Members rose—]

[Mr Speaker]

Now, this is the challenge: can people ask their question in fewer than 30 seconds?

[Caroline Lucas (Brighton, Pavilion) (Green)]

It seems that the Chancellor is hoping to buy off the rising tide of youth campaigning with a sprinkling of announcements on the environment, but the science is clear and he is doing nothing like enough. We have 11 years to avoid climate breakdown, and protected species are in freefall. I have one test for him to prove whether he is remotely serious about the agenda: will he reverse the savage funding cuts that his Government have made to Natural England—yes or no?

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[Several hon. Members rose—]

[Mr Speaker]

May I very gently exhort caring and sharing comrades to care for and share with each other, and not to speak in such a way as to stop others speaking? I am sure they would not want to do that—it would be uncomradely.

[Neil Gray (Airdrie and Shotts) (SNP)]

I and my colleagues, the Joseph Rowntree Foundation and, I presume, the Work and Pensions Secretary have encouraged the Chancellor to scrap the final year of the benefit freeze. Given that he knows that, alongside the two-child policy, it is one of the worst policies for driving up child poverty, why has he maintained it? Why has he not scrapped it in the spring statement?

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[Several hon. Members rose—]

[Mr Speaker]

Who’s up for a single sentence?

[Ben Lake (Ceredigion) (PC)]

Will the Chancellor clarify the extent to which reduced business investment and fewer tax reliefs have contributed to higher corporation tax receipts?

[Mr Speaker]

Splendid.

[Mr Hammond]

I am not sure I entirely understand the question, but clearly corporation tax receipts have gone up as a result of reducing corporation tax rates, making the UK one of the most attractive places for businesses to establish and invest. As I have acknowledged, business investment is depressed by Brexit uncertainty. The sooner we can end it, the sooner we can get back to business.

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[Several hon. Members rose—]

[Mr Speaker]

One sentence each.

[Alison Thewliss (Glasgow Central) (SNP)]

When will the Government end state-sanctioned age discrimination and ensure that everybody, including those under 25, are entitled to a real living wage?