Oral Answers to Questions

Vince Cable Excerpts

Monday 17th June 2019 Commons Chamber

[Mr Speaker]

Yes, but there is nothing to stop the right hon. Gentleman depositing a copy of his written request in the Library of the House, for its collective delectation.

[Sir Vince Cable (Twickenham) (LD)]

Does the Minister acknowledge that one unintended consequence of extending permitted development rights to commercial and industrial property is that a significant amount of housing is now being generated that is below accepted space and safety standards? What action is he taking to correct that?

[Jake Berry]

I do not accept that, but I will say that we are looking at PDRs more generally. I hope that the right hon. Gentleman would, like me, celebrate the fact that this one policy alone has provided in excess of 40,000 houses for people to move into. We universally acknowledge, across this House, that we have a housing crisis and we need to build more homes, so I would have thought he welcomed that.

Oral Answers to Questions

Vince Cable Excerpts

Monday 8th April 2019 Commons Chamber

[James Brokenshire]

My hon. Friend highlights the need for the Mayor to step up to the mark and ensure that he delivers on the housing agenda in London. I recognise that delivery has increased in recent years, but the latest net additions data for 2017-18 are worrying; London demonstrates a 20% drop, compared with a 2% rise nationwide. I hope that the Mayor will focus broadly on the housing agenda. We are providing support on infrastructure and other aspects to see that London does deliver.

[Sir Vince Cable (Twickenham) (LD)]

Does not the evidence suggest that the viability assessment system is suppressing social house building and that it is unnecessary given the high profitability in the development sector?

[James Brokenshire]

The right hon. Gentleman makes an interesting point about viability assessments, which we addressed through the national planning policy framework—effectively the high-level planning guidebook —to provide greater certainty for councils and developers. Such assessments can slow the delivery of housing, which is why we took steps within the NPPF.

Oral Answers to Questions

Vince Cable Excerpts

Monday 4th March 2019 Commons Chamber

[Rishi Sunak]

I know that the Secretary of State will be making a more detailed statement on the towns fund later when I am sure that he can address my hon. Friend’s specific question. This is a separate process from the fair funding review, which is, I know, something that all colleagues are interested to hear. That process is regarding ongoing spending and that will be done through the spending review later this year.

[Sir Vince Cable (Twickenham) (LD)]

Will the Minister say how the financial sustainability of local government is helped by what amounts to negative rates support grants, where councils are paying in more to central Government than they get back?

Oral Answers to Questions

Vince Cable Excerpts

Monday 28th January 2019 Commons Chamber

[James Brokenshire]

Yes, firmly in Cornwall. The national planning policy framework is about empowering some of those local decisions and choices, in Cornwall and elsewhere. I am continuing to discuss how we can have that additionality—that positive benefit that we can unlock from our national environment through our planning work—with colleagues at DEFRA and others across Government.

[Sir Vince Cable (Twickenham) (LD)]

The Government’s Help to Buy scheme has undoubtedly helped many families on to the housing ladder, but it has also driven many other families off it by pushing up the market price. How do the Government respond to research that suggests that the net impact is at best neutral and probably negative?

[James Brokenshire]

No, through our schemes more than half a million households have been helped into home ownership through Help to Buy and right to buy. The number of first-time buyers rose 82% between 2010 and 2017, and we have seen the first sustained rise in home ownership among 25 to 34-year-olds in 30 years. That is a positive step forward, although we know there is more to do. It is through initiatives such as Help to Buy that we are making that difference.

Budget Resolutions

Vince Cable Excerpts

1st reading: House of Commons
Thursday 1st November 2018 Commons Chamber

[Sir Vince Cable (Twickenham) (LD)]

I want to develop a point that was made by the right hon. and learned Member for Rushcliffe (Mr Clarke), who said that for many people the Budget was actually a pleasant surprise—it has promised them tax cuts and spending increases—but that in doing so the Chancellor is taking a big risk with an economy that is not particularly strong. It is not particularly strong because, as the Treasury forecast shows, the growth rate looking forward is abysmal—it is about 1.5%, which is one of the worst in the developed world—and that is quite apart from the poor growth at the moment.

The growth rate is also based on a fundamentally optimistic assumption. Quite apart from the lag on growth caused by Brexit at the moment, the assumption in the Treasury forecast is that the Government will land a deal, and not just a deal but a good deal, with a smooth transition to a trading arrangement not greatly different from the present. Well, it might happen—pigs might fly—but it is optimistic and, if that expectation is not realised, the economy has very little resilience. We have very high public debt, as the Government acknowledged. The domestic savings ratio is appalling—I think it is the worst in the developed world and is now negative. The corporate sector is heavily leveraged, as Governor Carney pointed out the other day. All of this is reflected in the current account deficit, forecast to be 4% of GDP, which is one of the worst in the developed world. If something goes wrong, there is no longer an inflow of capital and the exchange rate falls; we have had a devaluation of 17% since the referendum and we will have another one.

The main criticism I have of the Budget is that it may have seemed comforting, but the Chancellor did not actually confront the real issue that we have to face: how do we have a mature debate about how to end austerity? That is going to involve people paying more tax, and the issue is how we do it, and how we do it in the fairest and most efficient way. As the hon. Member for Sheffield South East (Mr Betts) has pointed out, we have not really got to the end of austerity, or even to the beginning of the end of it.

For most parts of public spending, there is a continued squeeze. That is true of schools. We did partially protect them under the coalition, but that is no longer happening. Colleges, which are necessary to deliver the Government’s training and apprenticeships, have been cut to pieces. Local government is potentially in an appalling situation. That means a squeeze on social care, which means that the money going to the health service will be wasted because it will have to accommodate lots of elderly people who should be at home. Bankrupt councils, many of them Tory county councils, will be forced to raise council tax, so we will get a tax increase, but it will be a tax increase by stealth, rather than by confronting the matter openly.

[Layla Moran (Oxford West and Abingdon) (LD)]

On the schools point, does my right hon. Friend agree that the wording the Chancellor used in relation to money for the “little extras” was insulting to teachers, who, day in and day out, find that they have to reach into their own pockets to deliver the basics in schools?

[Sir Vince Cable]

My hon. Friend is absolutely right. I am amazed that the Chancellor is not even aware of this. Many mainstream schools have seen cuts in teaching assistants, teachers, curriculums and so on. This will be compounded because there is nothing in the spending envelope that offers any hope that the problem is going to be dealt with.

That leads on to the question about how tax should be raised. The Government have offered tax cuts in the form of lifting the tax threshold for low earners and for middle earners. In principle, lifting the tax threshold is an attractive policy. I like to think that I was the author of the one we introduced in government. It was strongly resisted by the Conservatives at the time, but they have subsequently adopted it and claimed credit for it. The attraction was not just that poorer people pay less tax, but that the marginal rate of tax is removed when they move out of the welfare system, which encourages work.

In an ideal world, everybody should have a tax cut, but there is an issue about priorities here. Extending the tax cut to the upper threshold is, frankly, something that the country simply cannot afford. At a time when universal credit is being only partially financed following the cuts made by the Osborne Budget three years ago—only about half of that cut has been reinserted—that should be the priority. It is absolutely wrong that priority has been given to lifting the upper tax threshold. Because the two proposals are amalgamated in the Budget statement, I and my Lib Dem colleagues—and, I hope, others—will vote against this.

Beyond that, what this country now needs above all is a mature, grown-up debate about how the end of austerity will be managed. It is going to involve higher taxes for almost everybody—obviously, mostly at the top end, but there is going to have to be a general increase in taxation. I am afraid that the Chancellor’s pretence that we can have our cake and eat it is not realistic. It will rebound on him and on the Government.

Oral Answers to Questions

Vince Cable Excerpts

Monday 23rd July 2018 Commons Chamber

[Rishi Sunak]

I thank the Chair of the Housing, Communities Local Government Committee for his question. As he knows, the Department is considering the Public Accounts Committee’s report as we speak. As for his broader question, the Department is constantly evaluating local government sustainability, and in the upcoming meetings, and ahead of the spending review, the topics that he has raised will of course be closely scrutinised.

[Sir Vince Cable (Twickenham) (LD)]

How does the Minister justify an emerging system of negative rate support grants under which councils that have made themselves financially self-sufficient are now being told to make net contributions to the Government?

[Rishi Sunak]

I am pleased to tell the right hon. Gentleman that the Government will be launching their consultation on negative RSG very shortly, and I look forward to his contribution.

Windrush

Vince Cable Excerpts

Monday 30th April 2018 Commons Chamber

[Sajid Javid]

I thank my hon. Friend for his remarks. I know Home Secretary sounds very similar to Housing Secretary, but it is Home Secretary. He is right about making the right assumptions. The taskforce is making the process of helping some people to find the right documentation a lot quicker, and this is being done in a way where we are able to act much more subjectively, taking into account all the evidence that has been put in front of us.

[Sir Vince Cable (Twickenham) (LD)]

May I add my welcome to the Home Secretary in his important role? Will he help to clear up the question about who knew what and when about Windrush deportations by publishing in the House of Commons Library the report prepared by the former Foreign Secretary, the right hon. Member for Runnymede and Weybridge (Mr Hammond), in 2016, following meetings he had with Caribbean Ministers, because apparently this was copied to the Prime Minister and the Home Secretary at the time?

[Sajid Javid]

I will consider the right hon. Gentleman’s request.