Economy Update

Debate between Steve Barclay and Stephen Crabb

Wednesday 16th June 2021 Commons Chamber

[Steve Barclay]

May I first echo the remembrance by the hon. Lady and colleagues across the House of Jo Cox? I also pay tribute to the hon. Lady for the work that she has done, including with my friend Seema Kennedy, through the loneliness commission.

Let me turn to the various points raised by the hon. Lady. She said that she is not calling for support forever, but suggested that the Government were withdrawing support. The package announced by my right hon. Friend the Chancellor was designed deliberately to go long, until September. Measures such as furlough were extended to anticipate the fact that there were no guarantees on the covid road map. That was very much designed into the support, so there is no question of withdrawing support; it was in the very plan announced by the Chancellor.

The hon. Lady’s question about the delta variant was addressed comprehensively by the Prime Minister during Prime Minister’s questions, where he pointed out the timing. One can look back with hindsight now, but the issue was the timing of the delta variant becoming a variant of concern. I will not repeat the points made by my right hon. Friend the Prime Minister.

I am grateful to the hon. Lady for recognising the announcement regarding commercial rents. I hope that that is appreciated across the House. I know that it speaks to a very real concern that many Members will have seen through their constituency emails and post bags, and that it will provide some extended support.

The hon. Lady questioned whether the Government are doing whatever it takes. Again, I remind the House that the Government have spent £352 billion to date. By any definition, I think that is a comprehensive package. More to the point, the plan is working. We see that in the plan for jobs, in the fact that the unemployment projections have improved and in the number of jobs there have been since November. My right hon. Friend the Chancellor’s plan is working. He has done whatever it takes to protect our NHS and public services, putting a further £63 billion into the NHS for covid support measures last year. The plan is having clear benefits.

The hon. Lady asked specifically about the furlough taper. Labour market conditions have improved substantially since the turn of the year and will continue to do so. Indeed, demand for staff has increased at the quickest rate for more than two decades. With unemployment falling in the last four releases, there is clear evidence that the labour market is beginning to recover, but we went long in the first place to anticipate any slippage in the covid road map.



The hon. Lady had a query on business rates. Again, it is worth reminding the House just how comprehensive the support on business rates has been, with 100% business rates relief last year for many businesses, and those businesses now paying 75% over the course of this year. There is a comprehensive package of support for businesses. There is no question but that many businesses will feel strain as result of the further extension, and it is not a decision that my right hon. Friend the Prime Minister took lightly, but the package of support announced by the Chancellor anticipated this scenario. It went long in order to provide support and it continues to do so in a way that the evidence and the data shows is working.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

I welcome the Minister’s statement. He is right: the latest employment and job vacancy figures do demonstrate that the UK economy is now rebounding strongly. I cannot recall a time when so many businesses in my constituency were telling me that they are struggling to hire staff, right across all sectors. Does he agree that we need to take a sober and clear-sighted look at the furlough scheme, because it is the view of a great many employers out there that there are still far too many people being paid to do nothing, which is distorting the efficient functioning of the labour market as well as costing the country tens of billions of pounds?

[Steve Barclay]

My right hon. Friend draws attention to exactly why the attack from the Opposition is misplaced and why the furlough taper is justified—because there is demand for labour from businesses. He also knows that it is part of the wider package of support. As a former Secretary of State, he has done a huge amount to champion the need to support people looking for work. That is what the doubling of the number of work coaches is doing. We announced a further £2.6 billion of additional support for the Department for Work and Pensions in the spending review, alongside further specific measures such as the restart scheme, to tackle the situation of those who have been unemployed for over a year. Over 1 million unemployed people on universal credit will have access to that scheme.

This is about a combination of the furlough, which is providing much-needed support but needs to taper, and a wider plan for jobs, including the restart scheme, the kickstart scheme, the tripling of traineeships, and the increase in the apprenticeships incentive to £3,000—a whole package alongside the doubling of the number of work coaches.

Public Health Restrictions: Government Economic Support

Debate between Steve Barclay and Stephen Crabb

Tuesday 13th October 2020 Commons Chamber

[Steve Barclay]

Again, I appreciate the concerns the hon. Gentleman raises on behalf of businesses in his constituency, but, as I said to the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) a moment ago, by international standards the package of support the Chancellor has put in place stands fair comparison. That interaction between the support for those jobs and businesses that are able to be open, and the additional £7 billion of welfare support through universal credit, provides dynamic support for the workers to which the hon. Gentleman refers.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

My right hon. Friend spoke a few moments ago about the important role being played by universal credit at this time, so may I press him again on the Treasury’s intentions on the temporary uplift in universal credit? It is one thing for a Government to reduce a planned rate of increase of a benefit or even to freeze a benefit, but it is another thing altogether to give extra money to some of the poorest people in the country and then take that away. That is precisely what we are on course to do next April unless we change course, so will the Minister address that issue?

[Steve Barclay]

My right hon. Friend raised exactly the same issue at our urgent question last week, and I know he has a huge understanding of it from his time as Secretary of State for Work and Pensions. He knows full well that the announcement made was a temporary one to deal with the immediate consequences of the covid pandemic, and with all these decisions we need to balance the competing pressures at a particular time with the wider fiscal position.

Areas with Additional Public Health Restrictions: Economic Support

Debate between Steve Barclay and Stephen Crabb

Tuesday 6th October 2020 Commons Chamber

[Steve Barclay]

The hon. Lady raises a legitimate concern, but I do not see the panacea to that being an extended furlough for an indefinite period. What has never been clear to me from those who seek to extend the furlough indefinitely is for how long they would extend it, and how many sectors would be included. We have taken a different approach, as the Chancellor has set out, through the winter plan, the job support scheme and the self-employed income support scheme to support those jobs that we are able to support. I say respectfully to the hon. Lady that I do not agree that the panacea to this would be an open-ended furlough.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

I think there is a growing understanding that we will be wrestling with this crisis for perhaps many more months to come—far longer than any of us had perhaps hoped at the beginning of the pandemic. Does my right hon. Friend agree that it is essential we have a longer-term framework in place—a framework of support for families and for businesses through periods of rolling on-off lockdowns and through periods of self-isolation and sickness—and that, underneath that framework of support for society and for business, we need a strong safety net of social security, which is the hallmark of a decent society?

[Steve Barclay]

My right hon. Friend is absolutely right that our response to the pandemic needs to evolve as our understanding of the disease improves but also as we get a better understanding of how long we will live with the consequences of the pandemic. That is at the heart of the Chancellor’s strategy. In the initial phase in March, we locked down to protect the NHS to build our capacity. There was a shift to the second phase in July, with the plan for jobs and more recently with the winter plan as we look to move people from being furloughed at home to being brought back into the workplace. The more tailored approach of which he speaks is shaped by things such as track and trace and the significant funding that the Treasury has put into that programme in order, as he rightly says, that we can be very targeted as we deal with this in the months ahead.

Oral Answers to Questions

Debate between Steve Barclay and Stephen Crabb

Tuesday 15th September 2020 Commons Chamber

[Steve Barclay]

I know my hon. Friend takes a close and expert interest in this issue, not least through her work on the relevant Select Committee. Individual Departments are responsible for ensuring that all money spent as ODA meets the criteria of the OECD Development Assistance Committee, and that it is spent through the powers of the International Development Act 2002, which requires funding likely to contribute to a reduction in poverty.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

What fiscal steps he is taking to help families on low incomes during the covid-19 outbreak.

[The Chief Secretary to the Treasury (Steve Barclay)]

The Government are committed to all groups in society, including the most vulnerable, facing the challenges caused by covid-19. That is why we have put in place an unprecedented package of support, including the job retention scheme, the self-employed income support scheme and a package of welfare measures that the Office for Budget Responsibility estimates to be worth in excess of £9 billion.

[Stephen Crabb]

The commitment of this Government to ensuring that the most vulnerable in our society are protected through this crisis cannot be questioned. The scale of the intervention has been remarkable, but may I encourage the Chancellor and the Treasury team, as they begin making their plans for next year’s spending, to bear in mind the importance of the increase in universal credit that we made at the beginning of the pandemic, and to ensure that we keep it in place, because many more families will be relying on it in the months ahead?

[Steve Barclay]

My right hon. Friend is a passionate champion of this issue. He will have seen from the answer given earlier by my right hon. Friend the Chancellor that the distribution analysis at the time of the summer update illustrated that the measures taken by the Chancellor had protected the poorest households the most as a proportion of income. I know that he will have listened closely to my right hon. Friend’s representations.

Oral Answers to Questions

Debate between Steve Barclay and Stephen Crabb

Tuesday 24th March 2020 Commons Chamber

[Steve Barclay]

The hon. Gentleman raises an important point, because across the House people recognise the importance of early years and early intervention, but he will be aware of the wider package of funding showing the Government’s commitment to education, not just in primary schools and secondary schools but through the measures on further education set out by my right hon. Friend the Chancellor in the Budget.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

10. What steps he is taking to ensure the adequacy of funding for the NHS.

[The Chief Secretary to the Treasury (Steve Barclay)]

We have been clear that the NHS will get whatever it needs to respond to the coronavirus. The Chancellor announced at Budget a £5 billion response fund and we have already allocated a significant proportion of that to a range of measures.

[Stephen Crabb]

What frontline staff do in the NHS every single day is remarkable at the best of times, and what we are asking them to do now and in the weeks ahead will be incredibly challenging in terms of both the physical and emotional pressures and the personal risks to NHS staff, so would my right hon. Friend reaffirm that as well as providing the extra money announced in the Budget, the Government will do all they can to ensure that frontline NHS staff get all the equipment they need, including protective clothing, to get the country through this crisis?

[Steve Barclay]

My right hon. Friend is absolutely right. The Chancellor has made it clear that we will do whatever it takes to protect our NHS frontline, not just through PPE, as he correctly identifies, but by looking at additional capacity, such as in the independent hospitals sector, and at the support available, including the £1.3 billion allocated to speed up the discharge of patients, the £1.6 billion allocated to local authorities for adult social care and, of course, funding such as the £30 million for diagnostics research and £10 million for diagnostic testing that has also been allocated in recent days.

Oral Answers to Questions

Debate between Steve Barclay and Stephen Crabb

Thursday 5th September 2019 Commons Chamber

[Stephen Barclay]

The hon. Lady raises a legitimate issue in a constructive way, and I am very happy to work with her because she is championing a genuine issue on behalf of her constituents. There is always a balance in setting tariffs between protecting consumers and the issues for producers. It is about how we calibrate those two sometimes competing issues. She will understand that within the market—within the industry—there is domestic pressure, regardless of Brexit, but I am very happy to work with her on that issue.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

The Secretary of State will be aware from Yellowhammer that the proposed tariff regime under no deal creates very specific risks for the UK oil-refining sector. Given that the Valero refinery in Pembroke is the largest and most important private sector employer in west Wales, will the Minister tell me what the plan is for protecting the UK refining sector if we end up leaving the EU without a deal?

[Stephen Barclay]

My right hon. Friend will know that concerns have been raised by the industry in respect of that. Pertaining to the answer that I gave a moment ago, existing questions within that market are also a factor. I am very happy to have further discussions with him, as I am with the hon. Member for Redcar (Anna Turley), because a number of issues come into play for that industry.