Oral Answers to Questions

Stewart Hosie Excerpts

Tuesday 1st December 2015 Commons Chamber

[Mr Osborne]

The fact that the apprenticeships levy is set up in such a way that a large company employing high-quality apprentices will be able to receive back from the Government more than it puts in sets it aside from classic payroll taxes. Indeed, it has been broadly welcomed by the business community, even though it accepts the additional burden it represents. That is going to be very important. We made the calculations for the impact on the public sector in our public finance projections, and I am happy to write to my right hon. Friend with the precise numbers.

[Stewart Hosie (Dundee East) (SNP)]

Will the Chancellor confirm that in addition to the 17% cut to the funding of the Department for Business, Innovation and Skills, the autumn statement did, as other Members have said, add £11 billion to the tax bill of businesses, in the area of business growth and skills, and mainly driven by the apprenticeship levy?

[Mr Osborne]

I would have thought and hoped that the Scottish National party supported an apprenticeships levy whereby we use the money to create 3 million apprenticeships in this part of the United Kingdom and make sure that there are arrangements to pass the money to the Scottish Government so that they can improve skills in Scotland. But of course if one looks closely at the record of the SNP Government, one sees that they have been cutting further education places in Scotland. As usual, the SNP says one thing here and does something different in Scotland.

[Stewart Hosie]

The question was of course about the £11 billion extra tax cost for business and the cut to the Department for Business, Innovation and Skills—something the Chancellor does not want to talk about. Given that there was no increase in retail sales in the last quarter, that the CBI industrial trends survey is down, that consumer confidence is down, that the deficit in the trade in goods is a colossal £134 billion and that manufacturing output is down, why does this political Chancellor think that cutting BIS by 17% and adding £11 billion to business costs over the spending review period is even remotely sensible?

[Mr Osborne]

Because we do not equate the health of the business sector with the size of the Business Department. We have increased the money going into innovation by raising the budget for the catapult centres, and we have boosted the budget for science, one of the great UK strengths, which would be undermined if Scotland became independent. I would make a further point. The hon. Gentleman asked about economic projections, but in the independent OBR forecast growth is up, jobs are up, living standards are up and wages are up. That is all part of a successful economic plan which is delivering the goods for the whole United Kingdom.