Oral Answers to Questions

Steve Barclay Excerpts

Tuesday 24th October 2017 Commons Chamber

[Robert Neill (Bromley and Chislehurst) (Con)]

2. Whether his Department has made an assessment of the potential merits of recommendations from the London Finance Commission on fiscal devolution for London.

[The Economic Secretary to the Treasury (Stephen Barclay)]

I thank my hon. Friend for his work on the London Finance Commission, which recommended giving London a wide range of additional powers. The Government have committed to continue to work with the Greater London Authority and London Councils to ensure that London has the powers it needs to maintain its status as a world-leading city.

[Robert Neill]

I am grateful for that response, but will my hon. Friend particularly and urgently consider whether an element of fiscal devolution—for example, a tourist levy or something similar—might be part of a robust funding package for Crossrail 2, which is a critical part of national infrastructure and will give a boost worth around £150 billion to the whole UK economy?

[Stephen Barclay]

As my hon. Friend is aware, the Department for Transport is scrutinising the business case for Crossrail and discussing it with Transport for London. It is right that the London region does not retain disproportionate amounts of revenue. Some of the recommendations in the commission’s report are very broad ranging.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

If the ministerial team are to deliver anything for the London Finance Commission, will the Minister at least talk to the commission about the difficulty, with Brexit coming, of recruiting anyone to come to live and work in London? The search for talent is very difficult indeed. No one wants to work in this financial capital because of Brexit—what is he going to do about it?

[Stephen Barclay]

The hon. Gentleman needs to question whether Labour Members are fully signed up to the recommendations of the London Finance Commission. For example, many of his colleagues on the Opposition Benches may not support the retaining of almost half of all stamp duty across England.

[Paul Masterton (East Renfrewshire) (Con)]

3. What assessment he has made of the contribution of the UK internal market to the Scottish economy.

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[Luke Graham (Ochil and South Perthshire) (Con)]

14. What assessment he has made of the effect of Government investment on infrastructure since 2010.

[The Economic Secretary to the Treasury (Stephen Barclay)]

Infrastructure is at the heart of the Government’s economic strategy, and our investment will boost productivity and growth. Since 2010, more than £250 billion has been spent on public and private sector infrastructure.

[Mr Wragg]

The biggest investments in transport infrastructure in generations, including the Ordsall rail curve in Greater Manchester, have been made possible by this Government. Will my hon. Friend commit to further investment in our rail network, particularly on local commuter routes through my constituency?

[Stephen Barclay]

My hon. Friend makes a good point. This Government have committed to the largest rail investment programme since Victorian times, including a £55.7 billion investment in High Speed 2. He will be aware of the Chancellor’s announcement in Manchester last month of £300 million to improve connectivity to High Speed 2 across the northern region.

[Luke Graham]

Will my hon. Friend confirm his commitment to the Tay cities and the Clackmannanshire and Stirling city deals, and will he commit to meeting the local leaders and me to discuss how we can deliver this transformational change for our region?

[Stephen Barclay]

The Government remain fully committed to agreeing both city deals, and to working constructively with the Scottish Government and local partners. I am, of course, very happy to meet my hon. Friend to discuss this further.

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

A decent transport infrastructure is an essential platform for economic growth, but the Minister will be aware that public transport investment in the north-east is only £200 per head, whereas it is £2,000 per head in London. Will he now commit to investing in the north-east on the Tyne and Wear metro, and with public money, not some private finance initiative?

[Stephen Barclay]

The Government are committed to increasing infrastructure investment across all regions, including the north-east. Indeed, investment is 30% higher than it was under the Labour Government. It would be better for Opposition Members to recognise the record investment in infrastructure, which is driving productivity and growth.

[Mr Jim Cunningham (Coventry South) (Lab)]

Will the Minister say how much investment is going to the west midlands, as it is very important to the British economy?

[Stephen Barclay]

The investment going to the west midlands as part of the midlands engine and through the devolution deal is part of wider investment—the £23 billion of investment that has been announced through the national productivity investment fund. The hon. Gentleman will be aware of the Secretary of State for Transport’s announcement on rail spending between 2019 and 2024, which includes the £24 billion announced just last week.

[Alex Chalk (Cheltenham) (Con)]

12. What recent progress he has made on reducing the level of corporate tax evasion.

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[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

We are having difficulties with mobile banking in my constituency. I know of instances in which two different mobile banks have arrived in the same community while other communities have seen no mobile banks at all. We have problems with people queueing in rough weather and getting wet, and problems with paper banking. Will the Chancellor, or some other Minister, propose ways of reorganising mobile banking and making it more user-friendly, and of getting the banks to co-operate with each other to deliver a service that is vital in the highlands?

[The Economic Secretary to the Treasury (Stephen Barclay)]

Mobile branches are vital to many communities, and I am sure that many banks will have heard the hon. Gentleman express his concerns, but these are commercial decisions. It should be recognised that since 2011 the number of branch visits has fallen by roughly a third, that more than 600,000 people aged over 80 are now registered for internet banking, and that a fifth less cash is used for payments. Those changes in the market reflect the way in which branches, including mobile branches, are being used.

[Robert Neill (Bromley and Chislehurst) (Con)]

T9. Does my hon. Friend accept that the contribution made by UK financial services vastly outweighs any cost of our contribution to the European Union, and that securing a sensible deal from day one is not only an imperative, but much more likely to be achieved through the patient work of my right hon. Friend the Chancellor than through the anti-business rhetoric of Opposition Members?

[Stephen Barclay]

My hon. Friend is right. The UK financial services industry pays more than £71 billion to the Exchequer in tax and employs more than 1 million people directly and 2.2 million through the sector as a whole, two thirds of whom are outside London. Because of his work as chair of the all-party parliamentary group for Gibraltar, my hon. Friend will be aware of the importance not just of financial services in the UK, but of our links with industries in territories including Gibraltar.

[Rachael Maskell (York Central) (Lab/Co-op)]

Teachers have travelled from all over the country today to lobby Parliament about severe real-terms cuts in their pay. The Chief Secretary has said that she has lifted the pay cap owing to the pressure that Labour has placed on her, but will she confirm that her Department will fund the recommendations of the pay review body rather than cash-strapped local authorities?