(6 months, 3 weeks ago)
Commons ChamberThe hon. Gentleman raises an excellent point—one that I will be discussing with the Northern Ireland Finance Minister in a couple of weeks.
Small businesses drive our economy, and we support them to thrive using levers across Government, whether through our small business rates relief, by increasing the VAT registration threshold, or providing reliefs such as the annual investment allowance.
In England, many small businesses receive a 75% reduction in business rates thanks to action by this Conservative Government. In Wales, the Labour Administration have cut that level of support to 40%, meaning that excellent hospitality businesses such as Martha’s Vineyard in my constituency must find thousands of pounds more in tax. Does the Minister agree that that is not the way to support the tourism and hospitality sector at a challenging time, and that it is an example of the Labour party saying one thing here at Westminster and doing another where they are in government?
My right hon. Friend is right that in the autumn statement the Government extended retail, hospitality and leisure relief in England, essentially to cut tax for 230,000 businesses—a tax cut worth £2.5 billion. The Barnett formula allows the Welsh Labour Government to offer similar relief to Welsh businesses, and it is disappointing, if not surprising, that they have chosen not to.
(8 months, 1 week ago)
Commons ChamberMy hon. Friend is right: we increased the VAT threshold for small businesses, which will benefit 28,000 businesses across the country. We feel that the £90,000 threshold strikes the right balance between managing public finances sustainably and supporting businesses, but as my hon. Friend knows, we keep these things under review.
The port of Milford Haven in my constituency has been right out in front, taking a lead in investing in decarbonisation and showing how it can boost the economy of Wales and reduce inequality. Yesterday, it was told that its bid to the Government’s floating offshore wind manufacturing investment scheme—its port funding scheme—had been rejected out of hand. Will my hon. Friend ask his good friend the Chancellor of the Exchequer to meet me to talk about the important work being done at the UK’s leading oil and gas port, and about how the UK Government can support those efforts financially?
FLOWMIS is an incredibly important scheme in improving and enhancing our ability to expand floating offshore wind. We are a huge supporter of my right hon. Friend’s constituents and of the whole of Wales. If the Chancellor cannot meet him, I would be very happy to do so.
(1 year, 2 months ago)
Commons ChamberYes, I will be very happy to meet the hon. Gentleman. What happened with Safe Hands is a scandal, and that is why we have enlarged the regulatory perimeter to bring those who seek to sell funeral plans within the regulatory conduct.
Over the summer ports have been bidding to the Government’s infrastructure fund to help them get ready for the delivery of the new floating offshore wind industry. May I encourage Ministers to look favourably on the bids from the Celtic sea ports of Milford Haven and Port Talbot, because those two ports are key to unlocking the enormous economic benefits of this new clean energy industry?
I am absolutely happy to do that, and I agree with my right hon. Friend about the enormous potential of those areas.
(1 year, 5 months ago)
Commons ChamberThe hon. Gentleman poses many questions for me, some of which are very complicated. VAT relief for the hospitality sector was important in the aftermath of the pandemic, but it cost us a great deal of money and we have had to raise it back up to 20%. We keep the other VAT matters under review, and I would be delighted to meet him to discuss the complexities behind them.
A great many of the new job opportunities and career paths being created in Pembrokeshire are in the tourism and hospitality sector. Does my hon. Friend agree that the very last thing that business people who are creating those growth opportunities need right now is a tourism tax of the kind being brought forward by the Welsh Labour Government in Cardiff, which will hit businesses with new burdens and raise the cost of going on holiday in Wales?
The sun always shines in my right hon. Friend’s corner of Pembrokeshire when he speaks up for it. He is quite right to identify how the Conservatives in Government are trying to help businesses through our business rates relief in England, through our energy support scheme over recent months and, of course, through the Brexit pub guarantee. Welsh Labour, on the other hand, wants to call last orders and have higher taxes for the businesses he is so keen to support.
(1 year, 6 months ago)
Commons ChamberIt is certainly the hon. Gentleman’s fault if, having asked that we assess performance across the G7 and we do precisely that, he does not like the answer. The reality is that across the G7, growth has fallen and inflation has risen, but we know the sources of that—it is not this Government; it is the fault of Putin and the global covid pandemic, whether the Opposition like it or not.
My hon. Friend is right to ignore the gloom and negativity coming from the Opposition Benches. They will always find a reason to talk down the British economy. Is it not the case that today, with more people in our country going out to work than ever before, our economy is demonstrating a dynamism and resilience that few other economies around the world can emulate and a dynamism that we do not get with a Labour Government?
My right hon. Friend is absolutely right. Resilience is a strong word, and thanks to the actions that this Government have taken over the past six months, the Office for Budget Responsibility has confirmed that the UK is now expected to avoid a recession this year.
(2 years ago)
Commons ChamberI am grateful to my hon. Friend; it means until March 2028.
In response to the criticism of the hon. Member for Edinburgh West (Christine Jardine) about not responding fast enough to proposals to extend the windfall tax, I would say that changing the rules of the game regarding tax for some of the biggest investors and employers in different regions of the United Kingdom is a huge thing for a Government, so proceeding cautiously in response to changing events and to the precise quarterly profits that those companies posted was exactly the right thing to do.
My right hon. Friend puts it perfectly. These are significant changes for the industries concerned and one should not go about it in a wanton fashion. We have to try to carry the industry with us, which is why, for example, we have a very generous investment allowance in the North sea levy. As I said, I think the wider public support that but he is right that we have to go about it pragmatically to ensure that we balance the interests of investment with raising the revenue.
Let us not forget that that revenue is going to fund support for energy bills at an extraordinary level through the energy price guarantee, which the OBR now estimates will cut £900 from the typical energy bill this winter. Next year, with the new energy price guarantee, a further £500 will be cut. We are taking these difficult measures to be compassionate and help those at the bottom the most: earlier this year, the amount of energy support for the most vulnerable was £650; next year, it will be £900. We are taking serious steps to support the most vulnerable.
Madam Deputy Speaker, you would never imagine from listening to Labour Members that we had just been through the biggest public health emergency in a century, the biggest European war for three quarters of a century and the biggest energy crisis since the 1970s. That is not a light task for any Government to deal with. Yes, of course, as the Prime Minister said, some mistakes were made in the handling of things back in September, but the reality is that this is a challenge facing Governments across the western world. Despite all the rhetoric that I hear from the Labour party, there is much in this country to feel that we can benefit from—it is not universally a bad news story. None the less, like other countries across the western world, we face enormous challenges in turning things round.
I absolutely agree with my right hon. Friend the Member for North West Hampshire (Kit Malthouse) about the need to drive growth. He was absolutely right to look back over the discussions of recent years about inflation and whether it had gone away. A simple lesson of economics is that the moment somebody says that something will never come back is the moment we need to start worrying that it will come straight back. Inflation is here and we have to deal with it. It has been driven by a huge increase in energy costs, the destabilisation caused by the war in Ukraine, the collapse in global supply chains in the wake of the pandemic and the continued lockdowns in China, which have created real issues for businesses here and internationally.
I want to focus on three things. One of them is very much a UK problem, which we have to deal with as a matter of urgency: the number of people who have left our labour force in the past few years. This country is much more seriously affected than other nations. We have to get to grips with the problem. The explanations for it are multifarious—it is not simply about long covid or backlogs in the NHS—but if we do not solve it, it will be a continuing issue.
I call on Conservative Front Benchers to look back at what we did in 2010. As the Labour party has conveniently forgotten, we inherited unemployment at nearly 3 million and rising, and real difficulties in our labour market. The programmes we put in place made a real difference to the long-term unemployed and to people who were sick, off work and claiming employment and support allowance: they helped them, step by step, back into the labour market. Over the years, they made a real difference to the situation that the long-term unemployed in this country face.
The reality is that the longer someone is out of the workplace, the more difficult it is to get back in. People need support and guidance. I was very encouraged by what the Chancellor said about increasing Access to Work coaching, but we need to go much further. We need to learn from what was done in the Work programme and other programmes and look at how we can put support back in place for the long-term unemployed. If we do not do something about it, they will become further and further away from the workforce.
My right hon. Friend makes an important point. Does he agree that one of the most worrying aspects of the trend that he highlights is the increase in younger people being signed off as long-term sick, often with mental health issues? They are not being treated effectively by our NHS and are not getting effective employment support either, so they are at the greatest risk of spending the rest of their life cut off from the labour market.
Absolutely—that is a crucial issue. We need to start working with those people to help them back into a workplace environment. They are better off there: if people are out of work, they tend to have poorer health, live less long and have mental health problems. My right hon. Friend is absolutely right.
We must now put back some of the conditionality that, for understandable reasons, was taken away during the pandemic. There cannot be an expectation that people will simply stay on out-of-work benefits indefinitely. Our welfare state should be a ladder up which people climb, not a place in which people live.
My second point is about energy. There is no doubt that we have to do more to drive energy independence in this country. I have listened to Labour and SNP Members: they seem to think it is better for this country to ship gas all around the world in great tankers, with much higher emissions as a result, than to generate it from the sources available in this country. We need UK gas and we should develop it. The tax measures that have been put in place to encourage investment in the North sea are the right thing to do.
It cannot just be about fossil fuels, however. It is also right to develop nuclear. I completely disagree with the SNP on the issue: renewables are an essential part of our future, but the reality is that the wind does not always blow and the sun does not always shine. We need a core capacity to generate electricity in this country, and nuclear will be a crucial part of that. We also need to drive more progress on the renewables front. The most obvious missing piece is to ask why we do not have an obligation in this country, as a matter of rule, to put solar panels on the roofs of new houses and commercial buildings. I say to Government Front Benchers that that should be central to our policy. I have supported it for a long time, and I know other Conservative Members support it. We really need to get on with it.
Thirdly, a project that commands support on both sides of the House and that must drive future growth is the expansion of Heathrow airport. When we voted on it in this House four years ago, it had a majority of nearly 300. There was support from Labour and from the SNP—not the party, but individual Members. There was support from Northern Ireland, from Wales and from across England. It is a project that would lead to better regional connectivity, helping the levelling-up agenda, and would strengthen our trade ties around the world. It is essential. It is a project that has somewhat lost its way because of the pandemic’s impact on aviation, and there are clearly issues to address around aviation emissions, but this is not a project that will happen overnight. It will take a decade to bring to fruition, and by the time we get into the 2030s we will have short-haul planes coming on to the market that will be driven by new generation fuels such as hydrogen and sustainable aviation fuel.
We cannot simply say to future generations, “We are going to can this project. We are not going invest in our main gateway to the world; we are going to leave this to one side.” Those on the Labour Benches, the Northern Irish and Scottish Benches and the Conservative Benches all voted for it, and there is a duty on all of us to throw our political weight behind the project to get it back on the agenda and moving forwards. We need to take a symbolic step that would send a message to the world that this country is focused on growth. I say again to those on my Front Bench: please bring the Heathrow expansion project firmly back on to the Government’s agenda. This country needs it. We have needed to take difficult decisions. It has been essential in the short term to take decisions that are going to be difficult and unpopular, but now we have to focus. My right hon. Friend the Chancellor is absolutely right about the Budget in the spring. We need to focus on getting the economy growing again.
It is a pleasure to follow the hon. Member for Richmond Park (Sarah Olney). I want to take a few minutes to make a few brief points, which I hope go with the flow of some of the excellent speeches we have heard. Before I do, I want to say something about the nature of last week’s autumn statement. One Opposition Member said that it was full of smoke and mirrors, but it was nothing of the sort. It was a straightforward, honest, blunt assessment of our economic situation and fiscal circumstances. Before the autumn statement, I made the point that if anybody in this House could be trusted to come up with the most “untricky”, straightforward, honest fiscal event, it is the Chancellor of the Exchequer, my right hon. Friend the Member for South West Surrey (Jeremy Hunt), and that is exactly what he did.
Opposition Members have been suggesting, yet again, that we are not spending enough and we need to spend more. I say to them that all the way through the pandemic and the lockdowns, theirs were the voices calling for further lockdowns and more restrictions. Even though we were spending hundreds of billions of pounds supporting families and businesses, Opposition Members were calling for yet more spending. Who did they think was going to pay for that? These moments of reckoning we are facing were always going to come, and the statement presented by the Chancellor last week reflected the honesty of that.
As other Members have said, the backdrop to the statement is the global energy crisis, which is fuelling the cost of living pressures that so many families in our constituencies are facing. An extraordinary number of households in this country lack basic financial resilience; they do not have the savings and reserves to enable them to withstand the shocks we have seen in the past two to three years. So I welcome the cost of living measures that my right hon. Friend has brought forward in the autumn statement.
We have heard the idea that this package lacks either compassion or financial firepower behind it, but next year alone the cost of living measures will cost £26 billion, and that does not include the extra £11 billion cost of the full uprating of working-age benefits. As one voice who had consistently been calling for the full social security uprating at this event, I welcome the clarification that the Chancellor brought, but this is a very expensive policy. We are talking about implementing the triple lock on the state pension and the full uprating of social security for working-age people by 10.1%.
I pay tribute to the right hon. Gentleman for being one of the few voices on the Government Benches who have spoken about the need to uprate benefits. However, does he not agree that part of the problem with the cost of living crisis, which is not necessarily a new thing, is that it highlights the inadequacy of the current social security system and why we must have a root-and-branch review of what had gone wrong long before the war in Ukraine and long before covid?
I am grateful to the hon. Gentleman for that intervention, and I will go on to say something about that, but I agree with the point he is making.
Over the past 10 to 11 years, what the Government have done, in essence, is hold back increases in working-age benefits while boosting the state pension for older people. That is very much part of the picture. When wages did not increase in the way we wanted them to, following the last financial crisis, we saw an increase in in-work poverty as a direct result. I wish to flag up three areas that should be longer-term concerns for this Government.
I welcome the additional spending on health and education announced in the autumn statement, but let us not forget that our spending on education, as a percentage of GDP, has been squeezed over the past 10 or 20 years; this is a long-term trajectory. As a country, we are not spending anything like as much as we should be on our skills and vocational education if we are to see increases in productivity. We are also not spending as much as we should on our armed forces and on defence. We are not spending what we should be on these other areas because three large areas are not sustainable in the long run and they are constraining Chancellors of the Exchequer in their decisions.
The first area I wish to flag up is the triple lock. I called for it to honoured during this cost of living crisis, but there are long-term question marks as to its sustainability. I asked the House of Commons Library to do some calculations for me. It found that over the past 10 years if we had increased the state pension by CPI—the consumer prices index—inflation rather than by the triple lock measures, we would have saved almost £13 billion. If we had applied the same uprating measures to the state pension as we did to working-age benefits, that figure would have become about £23 billion. The triple lock is a very expensive long-term policy. It has played a hugely important role in lifting many pensioners out of poverty—no one will forget the derisory 75p increase in the state pension that the last Labour Government made—but I want those on the Treasury Bench to bear in mind that we need a more honest discussion about that area.
The second area to mention, which has already been flagged up this afternoon, is working-age benefits and economic inactivity. Some 9 million people in this country are economically inactive. Many of them have good reasons for this, such as older people and students, but there are millions of people in this country who could work—many of them want to work—but are finding themselves increasingly distant from the labour market.
The right hon. Gentleman will know that the Select Committee on Work and Pensions is looking at some of what he is discussing. Is he as concerned as I am that a good number of disabled people were in work during the pandemic but there has been an increase in unemployment among them since, because employers are moving away from home working? We need to look at incentives to help disabled people, particularly in respect of home working, and to be creative in some of our thinking.
I agree with the hon. Gentleman’s point. A number of trends since the pandemic should be causes of concern: the drop in the number of older workers; the increase in younger people with mental health issues who are being signed off on long-term sick; and the trend in disabled workers that he mentions. There is a lot there that the review of working-age people needs to get to grips with. We all meet employers in our constituencies who complain that they cannot hire workers and cannot find enough staff, yet we are paying millions of people to not work. There is a hugely important job to be done in this area in the longer term.
The final area I wish to flag up is NHS spending. For an increasingly large number of people, certainly in my constituency, the vision and model of the NHS is just not working. NHS dentistry is ceasing to operate for a great many families. People are emptying their savings accounts so that they can go private to pay for hip and knee replacements, which they cannot get on the NHS. That is happening under the Welsh Labour Government in Wales, but some of the same pressures and trends are at work elsewhere in the country as well.
We continue to find more and more funding for the NHS every year, but this health service is not meeting needs, particularly those of working-age people. We are not seeing people who are facing long-term sickness getting their health needs addressed. Especially important—I flagged this earlier but I will finish by reiterating it—is the crisis in mental health in our country, particularly for younger people. If we do not invest in mental health and real solutions for younger people, we are going to see increasing numbers of them signed off as long-term sick.
(2 years ago)
Commons ChamberThis issue has certainly captured the imagination in East Anglia, where the hon. Lady may be aware that there are certain proposals to bring forward improvements in the grid, although that is ultimately the responsibility of National Grid. We need to address the grid, but I hope she will agree that the country has already made enormous progress in increasing capacity from offshore wind. She may be aware that in 2011 renewables made up just 9% of our electricity; that figure is now over 40%.
Floating offshore wind is emerging as a major new industry, both globally and for us in the UK, in places such as the Celtic sea. The key question for us is how much of the real economic value of that new industry stays here in the UK. To that end, I encourage my hon. Friend to meet Business, Energy and Industrial Strategy Ministers and the Crown Estate, to ensure that the leasing rounds are properly structured and that the contracts for difference process and other policy tools, such as the FLOWMIS port funding and the freeport policy hopefully coming to south Wales, are all properly aligned to deliver British content.
I repeat the point I made to the hon. Member for Aberavon (Stephen Kinnock) about content. I hope that addresses some of my right hon. Friend’s concerns, but I am more than happy to meet him first and then feed back to other Ministers and see what more we can do. He is absolutely right that this is an extraordinarily positive opportunity and, if we seize it, it will deliver for parts of our country such as his constituency.
(2 years, 5 months ago)
Commons ChamberThe hon. Gentleman is probably talking about the rural fuel relief scheme, which is specifically targeted at a small number of locations where fuel prices are much higher than the national average, perhaps because they are a long distance from the refinery. In proposing an extension to the scheme, he should consider the potential unintended consequences. For example, people might drive out of their way to go to a petrol station in these rural areas.
Thanks to this Government, we have record low unemployment and more job vacancies than jobseekers, but almost 9 million people are economically inactive, including many who can work and many who have worked in the recent past. Does my right hon. Friend agree that getting more of this group back into work is key to filling the labour shortages that many Members have spoken about today, and to strengthening our economy for the longer term?
My right hon. Friend is absolutely right, and he knows about this from his time as Secretary of State for Work and Pensions. There is no doubt in my mind that the work we are doing, through the spending review, to provide more than £1.1 billion of measures to support disability employment and the effective management of health in the workplace will be important. The Government’s Way to Work programme is yielding fantastic results, and is a sign of our intention in this space.
(2 years, 9 months ago)
Commons ChamberI will give way to my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) and then to my hon. Friend the Member for Brigg and Goole (Andrew Percy).
My right hon. Friend is making a powerful speech and I commend him on how he has gone about bringing forward this new clause to close a specific loophole on public sector pensions. In the context of his point about the wider boycott, divestments and sanctions movement, does he agree that it is a pernicious movement that singles out Israel time and again, to undermine the UK-Israel bilateral relationship and the very notion of the integrity of the Israeli Jewish state? I very much hope the Government will accept his new clause, but does he also accept that there is a need for a broader piece of work by the Government to address the BDS movement in its entirety when it comes to public sector choices?
My right hon. Friend makes a series of powerful points, which I entirely agree with. In particular, I agree that, were this new clause to pass, it should merely be the beginning of a wider effort to tackle BDS within the public sector and that we as the Government should make good on our manifesto commitment to a full BDS Bill, which I hope will be in the forthcoming Queen’s Speech.
I am listening closely to the hon. Member’s argument, but I am afraid I just do not accept the points he is trying to string together in what is a fairly strange argument. The reason this amendment is so important and the reason we do not expect council chambers to be dabbling in foreign, defence or security policy is precisely that they are not given the competences over those policies. It is the same for the Welsh Senedd, and the Scottish Government have a limited number of competences. Yes, we want them to exercise their powers fully in those areas where they are given competence, but it is a complete diversion of activity and attention to say that we want councils to be getting involved in incredibly sensitive and complicated subjects of the kind that my right hon. Friend the Member for Newark (Robert Jenrick) has already described.
I certainly cannot agree with the right hon. Gentleman. As I have made perfectly clear, how the British system works is that Ministers have the authority to take policy decisions, and Parliament is right to hold Ministers to account for that. Parliament has the ultimate right to decide what becomes law. If nobody else is allowed to discuss it, and councils are not allowed to express views in the interests of the people they are there to represent, the whole system starts to fall flat on its face.
It is as plain as the nose on my or anyone else’s face that decisions on foreign policy can easily have a disproportionate impact on residents in some parts of these islands. Certainly, decisions on defence policy can have a significantly greater impact on some places than others. Remember that councils are directly democratically elected by local people to represent their views. Are we suggesting that they should not be allowed to debate matters of foreign policy simply because they do not have the right to take the final decision? If that is what Government Members are saying, why is it that almost every Tory MP who pops up on their hindlegs at Prime Minister’s questions to ask a planted question invites the Prime Minister to interfere in local democratic decision making? We have had two examples today, with the right hon. Member for Newark expressing his views on possible decisions by councils that, with respect, are nothing to do with him, because they are not the council area he represents.
I do not know whether Wirral Council or Hertfordshire will take the right decision, but I am happy to trust the good people of the Wirral and Hertfordshire to sort out councillors who get it wrong too often. That is what local elections are about. I do not like to see the Government, having substantially stripped back the powers of local authorities, then deciding to give local authorities the power to take decisions they agree with, but taking away the power for local authorities to do things that might go in a different direction.
Among all this, we are losing sight of the vital fact that as a matter of law, the trustees of a pension fund are a completely different organisation and a completely different entity in most cases from the organisation whose current and former employees are members of that fund. My wife has for many years been a trustee of the Fife Council pension fund, as well as having clocked up nearly 30 years as a councillor. The decisions that the trustees of the pension fund make are completely different from the decisions many of the same people will take as members of Fife Council. Nobody believes that the decisions of the pension fund reflect the views of the council; the council is not allowed to try to whip pension trustees, for example.
(2 years, 9 months ago)
Commons ChamberMy hon. Friend, as always, makes an excellent point. I join her in encouraging all those local authorities and others to get those funds out to people who need them as quickly as possible. That is why we have created the household support fund: half a billion pounds to provide £100 or £150 to millions of our most vulnerable families. It is there to help, and I hope we can get the rest of the money out as quickly as possible.
The Chancellor of the Exchequer is exactly right in all the measures that he describes the Government taking to protect families’ incomes. He has always shown a powerful instinct for protecting those on the very lowest incomes, but may I say respectfully to him that we must do something about energy costs? On Friday, I met a couple in my constituency who showed me their fixed tariff agreement with their energy company, which is coming to an end, and the new one coming on stream, which is more than double. They will really struggle to pay their energy costs this year, so may I ask the Chancellor of the Exchequer to look at the issue? The warm home discount scheme is not perfect, but it is a useful vehicle for doing something to help those on the lowest incomes.
My right hon. Friend speaks with compassion and authority on these topics, and I join him in making sure that we are aware of the issue. I am, of course, aware of people’s anxiety about what is coming; he can rest assured that we continue to look at all the policies we have in place to make sure that we are supporting people in the best way possible through the months ahead.