Spring Statement

Debate between Vince Cable and Lord Hammond of Runnymede

Wednesday 13th March 2019 Commons Chamber

[Mr Hammond]

As my right hon. Friend knows, we are not able, under the current regime, to discriminate between cars made in British factories and cars made elsewhere, but we do keep all fiscal policy under review, and I am acutely conscious of the pressures that the car industry is facing at the moment.

[Sir Vince Cable (Twickenham) (LD)]

I am trying to find something positive to say about a rather less than earth-shattering event, but I do welcome the support for industrial strategy and innovation. I also welcome the Furman report. However, does it not rather give the game away that global monopoly abuse is being referred to the British competition authorities at a time when we are walking away from the much more powerful European Commission, which could really deal with the problem?

On growth, is it not the case that while we are escaping recession, which is very welcome, that is primarily due to continued extraordinary monetary policy and low or negative real interest rates, which cannot continue? It may have been useful after the financial crisis, but it is an addictive drug.

Finally, how on earth does the Chancellor expect this proposed surge of business investment to occur when, even under the Government’s Brexit plans, there is going to be a cliff edge in two years’ time that any business will naturally seek to avoid?

[Mr Hammond]

I do not know why the right hon. Gentleman would want to break the habit of a lifetime in finding something positive to say in response to a statement, but I will take him at face value. On the Furman report, I do think it is quite important that we ensure that the UK’s regulatory environment is at the cutting edge of the changes that are going on in the 21st-century economy. Regulation is one of our competitive advantages. We have excellent regulators, and there are plenty of examples of the UK being ahead of the global curve in setting regulations that can both protect the public and encourage investment.

I cannot comment on monetary policy, as the right hon. Gentleman knows—that is a matter entirely for the Bank of England—but as for a future cliff edge, it will be my fervent intention to give business the maximum confidence and clarity that we can about our future relationship with the European Union, as soon as I can.

Oral Answers to Questions

Debate between Vince Cable and Lord Hammond of Runnymede

Tuesday 29th January 2019 Commons Chamber

[Mr Hammond]

Let me put it this way: since 2016 I have made more than £4.2 billion available for EU exit planning, and funding for the 2019-20 financial year has now been allocated to Departments. That is funding to prepare the Government for leaving the EU in any scenario. In addition, I have made arrangements to ensure that Departments and the devolved Administrations can fund measures to address urgent civil contingencies in a no-deal scenario.

[Sir Vince Cable (Twickenham) (LD)]

The Chancellor has rightly made very clear his determination to avoid a no-deal Brexit. How in practice does the Treasury distinguish between those no-deal preparations that have enduring value for money and those that will have been wasted in the event that he is successful?

[Mr Hammond]

Some of the expenditure being undertaken by Departments will be required in any case for our post-EU future, whether we leave with a deal or no deal, but I have made no bones about the fact that some of the expenditure is of a precautionary nature. The expenditure will be nugatory if the deal is agreed and we leave with a smooth trajectory. Every responsible Government, across all areas of activity, undertake expenditure to deal with potential contingencies, to ensure that the country is prepared for eventualities that may arise. It is proper that we should do so.

Oral Answers to Questions

Debate between Vince Cable and Lord Hammond of Runnymede

Tuesday 6th November 2018 Commons Chamber

[Sir Vince Cable (Twickenham) (LD)]

1. What recent discussions he has had with the Secretary of State for Education on the adequacy of schools funding.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

More money is going into schools than ever before. Schools will receive over £42 billion of core funding this year and £43.5 billion next year. Our investment in schools is paying off, with 86% of schools now rated good or outstanding compared with 68% in 2010. Schools funding for 2020-21 onwards will be considered along with all areas of non-NHS departmental spending at next year’s spending review.

[Sir Vince Cable]

The Chancellor will already be aware that the £400 million for “little extras” has gone down like a lead balloon with schools that cannot afford the basics, but will he explain why there was not even a penny of additional money for post-16 colleges, most of which are in a desperate financial position and cannot carry out their training functions? Is the further education sector just another “little extra”?

[Mr Hammond]

As the right hon. Gentleman will know, we have launched a significant initiative for the FE sector with the Government’s new T-level programme, which is being rolled out over the next few years. The programme involves a funding commitment of an additional £500 million a year to increase contact time between learners and teachers or work environments by 50%.

Oral Answers to Questions

Debate between Vince Cable and Lord Hammond of Runnymede

Tuesday 17th April 2018 Commons Chamber

[Mr Hammond]

As my hon. Friend will know, the UK was one of the first countries to implement the OECD model for country-by-country reporting to tax authorities. Those reports have been required for periods that started on or after 1 January 2016. On public reporting, the Government are committed to a multilateral approach to ensure that reporting provides comprehensive information and is fair between UK-headquartered and non-UK-headquartered multinationals. We are engaging constructively on the EU proposals for public country-by-country reporting, which we see as a step in the right direction.

[Sir Vince Cable (Twickenham) (LD)]

The Chancellor will be aware of President Macron’s proposal for taxing the revenue of the big internet platforms, which the Chancellor acknowledges are difficult to tax under the existing rules. Are the Government considering building on the entente cordiale of recent days by co-operating with and learning from the French model for how we should tax that revenue?

[Mr Hammond]

I would not call it a French model; it is a Franco-German initiative. We have been working closely with the French and the Germans on this issue. We discussed it at the G20 in Buenos Aires a couple of weeks ago and we will discuss it again at the informal ECOFIN meeting in Sofia at the end of next week. The Government’s position is that we are supportive of the EU proposals, but we want to be clear that any such measure can only be a temporary solution. The long-term solution has to be an agreed multilateral approach to the taxation of the digital economy. That requires us to get the United States on side, because most of these global digital companies are domiciled there. Without the United States’ co-operation and support, it will be difficult to make any tax system sustainable.

Oral Answers to Questions

Debate between Vince Cable and Lord Hammond of Runnymede

Tuesday 27th February 2018 Commons Chamber

[Mr Hammond]

My constituency has also been affected by flooding, and some of the responses are major engineering projects that take time to develop. The Department for Environment, Food and Rural Affairs and the Environment Agency have funding for flood relief projects, but those developments have to be prioritised and worked up into proper business cases. I will look at the specific case the hon. Lady raises and, if I may, I will write to her and place a copy of my letter in the Library of the House.

[Sir Vince Cable (Twickenham) (LD)]

Some of the most important national infrastructure projects include the network of tidal lagoons for low-carbon energy. As the Treasury has, apparently, approved the project as good value for money, why is it allowing dinosaurs in the Department for Business, Energy and Industrial Strategy to block it?

[Mr Hammond]

I imagine that the right hon. Gentleman is referring to the Swansea Bay tidal lagoon project which, as he knows, is under consideration by the Government. An announcement will be made in due course.

Oral Answers to Questions

Debate between Vince Cable and Lord Hammond of Runnymede

Tuesday 24th October 2017 Commons Chamber

[Mr Hammond]

One of the remarkable achievements of the past seven years has been the increase in participation in the workforce, particularly in the number of women participating in the workforce. That is in large part due to the family-friendly policies this Government have pursued, with huge increases in the availability of childcare—free childcare—and in the tax deductability of childcare. We will continue to drive a set of policies that encourages women into the workforce, both because it is economically sensible and because it is socially inclusive.

[Sir Vince Cable (Twickenham) (LD)]

One of the biggest fiscal steps that can be taken to reduce unemployment is public sector investment in housing. May I therefore welcome the Communities Secretary’s statement yesterday that the Treasury has agreed to increase net borrowing by, I believe, £50 billion in order to enable this to happen? Will the Chancellor confirm that this is Government policy?

[Mr Hammond]

No, and that was not what my right hon. Friend said, as the right hon. Gentleman very well knows. I would, however, agree with him that increasing activity in the construction sector is a very good way of creating jobs, but he will know that at 4.3% our economy is approaching full employment and the output gap is extremely small.