Oral Answers to Questions

Debate between Stephen Hammond and David Gauke

Tuesday 6th March 2018 Commons Chamber

[Stephen Hammond (Wimbledon) (Con)]

21. What plans the Government have to ensure that the UK legal system operates effectively after the UK leaves the EU.

[The Secretary of State for Justice and Lord Chancellor (Mr David Gauke)]

It is absolutely right that we provide legal certainty for businesses, families and individuals as we leave the European Union. That is why, as the Prime Minister said in her speech on Friday, part of our future partnership with the EU will be to have effective reciprocal arrangements with the EU to deal with cross-border legal disputes in civil and family matters. The best way to deliver that co-operation is with a close and comprehensive agreement between the UK and the EU that sets out coherent common rules.

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[Stephen Hammond]

Professional services, including legal services, are clearly one of the key exports of this country. What is my right hon. Friend doing to ensure that there will be new arrangements for the recognition of legal standards and qualifications?

[Mr Gauke]

My hon. Friend raises a good question. We recognise that this is an important right to protect UK nationals, so that they can continue with their chosen line of work. It has already been agreed that those who have received a recognition decision or applied for one before the withdrawal date will be able to have their qualifications recognised after exit, including lawyers. Talks on many key issues, including the mutual recognition of professional qualifications, will continue into the next phase of negotiations. We will seek to reach an agreement with the EU on parts of MRPQ that are not seen as in scope of the withdrawal negotiations, such as home title practice. The Prime Minister has been clear that she wants EU nationals in the UK and UK nationals in the EU to be able to continue their lives broadly as now.

Pensions

Debate between Stephen Hammond and David Gauke

Wednesday 19th July 2017 Commons Chamber

[Mr Gauke]

John Cridland looked at exactly those issues and concluded that the divergence within the regions and nations on this matter was greater than the divergence between them. However, if the Scottish Government believe that there should be more support from the state for those approaching retirement age, they will have the power to provide it. If they wish to provide that support in Scotland—effectively, providing support a year or two years earlier than in the rest of the United Kingdom—they have the power to do that. I would not particularly advise them to do it, but that is their decision, and I really do not think there is a complaint to be raised with the UK Government on that front.

[Stephen Hammond (Wimbledon) (Con)]

I commend my right hon. Friend for his statement. He is right to be tackling the issues of intergenerational fairness, but retirement is not about the state alone. What other measures, alongside this one on intergenerational fairness, will he propose to ensure that younger people can save for their retirement alongside state provision?

[Mr Gauke]

One thing I would highlight, as my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) did a moment ago, is what we have done on auto-enrolment. That means 10 million more people saving for retirement, which is a huge step forward. I am delighted with the success of auto-enrolment—the very low opt-out rates—and that is one example of how the Government are ensuring that people will have a dignified retirement, but we must remember that the public finances need to be in good order as well.

Budget Changes

Debate between Stephen Hammond and David Gauke

Monday 21st March 2016 Commons Chamber

[Mr Gauke]

If I were the hon. Gentleman, I would be a little embarrassed for not being aware that there are no votes on personal independence payments in the Budget resolutions tomorrow.

[Stephen Hammond (Wimbledon) (Con)]

The role of the Budget is surely to promote growth and create employment. Has the Minister noticed that the small business rate relief measures have been widely welcomed by the Federation of Small Businesses because they will promote growth and employment across all strata of society?

[Mr Gauke]

Yes; my hon. Friend is absolutely right. There has been strong support from small businesses for the contents of this Budget. This is a Government who are backing small businesses and ensuring that they can provide the growth and employment opportunities that the British people need.

Protection of the EU’s Financial Interests

Debate between Stephen Hammond and David Gauke

Monday 8th February 2016 General Committees

[Mr Gauke]

There is a general view that the UK is strongly determined to address fraud. We have a strong record of budgetary discipline in the EU and with multinational projects, and we have demonstrated that we take fraud very seriously.

From the documents before us, it is hard to draw comparisons between the UK and other member states. There is no directly comparable error rate for the UK’s management of EU funds against which the ECA’s error rate for the EU budget can be measured. To our knowledge, there are no national accounts of major economies, including the UK’s, that can be meaningfully compared with the ECA’s audit of EU accounts. Only a few countries—the UK is one—produce whole of Government accounts. It is hard to compare precisely our record with those of other member states or countries outside the EU. The UK remains determined to root out fraud, wherever it might be.

[Stephen Hammond (Wimbledon) (Con)]

Like so many others, I want to say that it is a pleasure to serve under your chairmanship, Sir Edward. I confess to my right hon. and hon. Friends on the Front Bench that I have not read these documents cover to cover.

[Stephen Hammond]

It is indeed shocking, although I thought it would be more useful to spend my weekend trying to ensure that my hon. Friend the Member for Richmond Park (Zac Goldsmith) is elected in May.

I agree with my right hon. Friend the Member for Ashford that it is shocking that this is the 21st year in which the accounts have not been properly audited and signed off. That would not be acceptable in the financial world. With my financial hat on, I read three of the chapters, and I would like to test something with the Financial Secretary. Chapter 3 is about getting results from the EU budget. The common themes include poor performance setting, poor planning and objectives that are not fit for management purposes. My hon. Friend will have noticed that it states that budgetary strategy is not aligned with political strategy, which is an explicit criticism of the inability to make proper financial judgments.

Hidden in the documents—the Commission did not even bother to reply—is paragraph 3.79, which gets to the heart of the lack of results in partnership arrangements. I would like to hear from my hon. Friend exactly how the Government will put pressure on the Commission to respond with more a bit more force than its bland statements.

[Mr Gauke]

My hon. Friend raises an important point. It is traditional in these debates that we focus on error and specifically on fraud, but as I touched upon in my opening remarks the focus on performance should not be forgotten. We welcome the ECA’s increased focus on performance while retaining its valuable role on compliance. That shows there is recognition that compliance without performance will achieve little. Strengthening the ECA’s work on performance could help to maximise the efficiency, economy and effectiveness of EU spending.

It is also in line with Vice-President Georgieva’s budget for results initiative, which aims to develop a more performance-orientated budget that delivers tangible results for EU citizens. We see this as an important opportunity to help to improve the transparency of EU spending to taxpayers, and its value and efficiency. My right hon. Friend the Chancellor made our position clear at ECOFIN last year.

We are working closely with the Commission on this issue, offering our expertise in areas such as transparency and value for money. The Commission is keen to drive this agenda forward. In particular, it is our priority to ensure that this work feeds into the mid-term review of the multi-annual financial framework this year. It is important that the work in this area is joined up with other related initiatives to improve budgetary management, such as proposals for simplification of the common agricultural policy and structural funds, which were launched earlier this year by the Commission, and the wider mid-term review this year.

My hon. Friend the Member for Wimbledon raises an important point. Having heard Vice-President Georgieva discuss these matters on a number of occasions, I know that she is clearly very personally committed to a move towards ensuring that performance is at the forefront of how EU money is spent, and that is an initiative that we support and welcome.

[Stephen Hammond]

I am grateful for that response and I am sure that many in this Committee will hope that Vice-President Georgieva’s performance will show the result of that next year.

The one other issue that I just wanted to raise with my hon. Friend is the contentious nature of state aid rules and infringements, because obviously that goes quite far towards the heart of trade. Paragraph 6.39 indicates that there were 14 projects that infringed state aid rules and the Commission’s response is, “We’ll deem whatever action’s necessary.” Given that these projects are obviously usually highly controversial and get to the source of quite a lot of disagreements, can he assure the Committee that we will be pushing the Commission to act where deemed necessary so that action is taken?

[Mr Gauke]

In terms of UK infringement of state aid rules, the mandate of the relevant audit authorities for structural funds in the UK includes checks on compliance with state aid rules. The UK project reference here is not identified by the ECA, so it is not possible to comment on the nature of the errors. However, if my hon. Friend’s concern is about ensuring that state aid rules are properly enforced, I say to him that we will continue to push the Commission to focus on the areas of greatest error, and we think that that would be beneficial in ensuring that the EU state aid regime works as effectively for Europe as it can.

Oral Answers to Questions

Debate between Stephen Hammond and David Gauke

Tuesday 1st December 2015 Commons Chamber

[Mr Gauke]

The devolution of business rates will retain the system of top-ups and tariffs that currently exist, so there will be no immediate loss to any local authority as a consequence of devolution. The point is that it devolves power to local authorities so that they have stronger incentives to boost growth. Local authorities that grasp that opportunity will see their business rates revenue increase.

[Stephen Hammond (Wimbledon) (Con)]

Does my hon. Friend agree that the point about last week’s announcement was that it was a defining moment for local authorities? Those local authorities that accept the principle of devolution of business rates can incentivise strong local business growth, and secure a local economy that is strong and that has jobs for its constituents. That is the key point.

[Mr Gauke]

My hon. Friend is absolutely right. He puts it very well. That is the key point: it is about ensuring that local authorities have the incentives to boost growth, and then local people can hold those local authorities to account.

Future Government Spending

Debate between Stephen Hammond and David Gauke

Wednesday 4th March 2015 Commons Chamber

[Mr Gauke]

My hon. Friend raises an interesting point, and the big tax cut that this Government have delivered has been the huge increase in the personal allowance that has benefited millions of hard-working people up and down the country.

[Stephen Hammond]

The Minister is right to point out those things, and, as my hon. Friend the Member for Esher and Walton (Mr Raab) pointed out, we have taken many people out of tax altogether. On Labour’s watch, if it were ever to be in government, the deputy leader of the Labour party has already said:

“Yes I think people on middle incomes should contribute more through their taxes”.

Therefore anyone earning more than £26,000 will have a tax rise under the next Labour Government. That is what the deputy leader of the Labour party has committed to.

[Mr Gauke]

As I said, the money has to come from somewhere, and middle-income earners are probably pretty high up the list. To be fair, it is not just the 50p rate, although that is the only policy mentioned in the motion. In television interviews, the shadow Chief Secretary to the Treasury has proclaimed one other policy to reduce the deficit. This is the key to deficit reduction and the policy that will restore public finances to health: a future Labour Government will put up fees for gun licences. How much will that raise? A whopping £17 million—except, to be fair, the shadow Home Secretary has already pledged to spend that money elsewhere.

Oral Answers to Questions

Debate between Stephen Hammond and David Gauke

Tuesday 4th November 2014 Commons Chamber

[Mr Gauke]

No; we have brought forward 40 measures to reduce tax avoidance, reduced the tax gap as a proportion of tax receipts, and increased by £7 billion the yield brought in by HMRC. The truth is that it is this Government who have acted in this area, and the record of the previous Government does not bear comparison.

[Stephen Hammond (Wimbledon) (Con)]

5. What progress he has made on his fiscal consolidation plans.

Oral Answers to Questions

Debate between Stephen Hammond and David Gauke

Tuesday 2nd September 2014 Commons Chamber

[Mr Gauke]

My memory is that the Labour party did not support the OBR all the way. There is a debate to be had about the future of the organisation, but we do believe that, in its infancy, an organisation of this sort needs to be secure. That argument was used by the Labour party when the relevant Bill was passed in the House of Lords.

[Stephen Hammond (Wimbledon) (Con)]

Does my hon. Friend agree that, rather than trying to untangle the mess of the current spending plans, the OBR’s time might be better used looking at the spending plans of the Labour party when it was in government so that the public have a verified and independent record of the mess it left before the next general election?

[Mr Gauke]

I am grateful to my hon. Friend for that suggestion, but I think the record is fairly clear whether the OBR looks at it or not. The previous Government left our public finances in a desperate mess and we are continuing to recover from that mess.