Draft Scottish Banknote (Designation of Authorised Bank) Regulations 2017

Andrew Jones Excerpts

Tuesday 5th December 2017 General Committees

[The Exchequer Secretary to the Treasury (Andrew Jones)]

I beg to move,

That the Committee has considered the draft Scottish Banknote (Designation of Authorised Bank) Regulations 2017.

From 1 January 2019, the largest UK banks must separate core retail banking from investment banking. That ring-fencing is an important Government reform that will support financial stability and benefit the whole UK economy. As the Royal Bank of Scotland makes structural changes to prepare for ring-fencing, the draft regulations amend part 6 of the Banking Act 2009 and move the authority to issue banknotes in Scotland from one legal entity within the RBS banking group to another.

This is a technical change so that RBS can continue to issue banknotes. It has been agreed with RBS, the Bank of England and the Financial Conduct Authority, and it did not attract any controversy during consultation. If the draft regulations are passed, they will enable the issuance of banknotes in Scotland by RBS to continue. I commend the draft regulations to the Committee.

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[Andrew Jones]

I am very glad that there is support across the House for these regulatory changes. It is important that currency continues to be issued. We have three issuing banks in Scotland and four in Northern Ireland, reflecting the financial history of those important parts of the United Kingdom. I hope that we can get the regulations in place without delaying Members too much further.

Question put and agreed to.

Public Sector Pay

Andrew Jones Excerpts

Monday 4th December 2017 Westminster Hall

[The Exchequer Secretary to the Treasury (Andrew Jones)]

It is always a pleasure to serve under your chairmanship, Mr Stringer.

I thank all Members who have contributed to the debate today. We have had 37 Back-Bench contributions or interventions. I have to say that there was remarkable knowledge from the hon. Member for Glasgow South West (Chris Stephens) about the 1823 Act—194 years ago; I am not even sure the Conservative party existed then.

Lots of points have been raised. Let me answer the one by the hon. Member for Blaydon (Liz Twist) about Northern Ireland. The decision and implementation is actually with the Northern Ireland civil service. I do not think that there are any decisions outstanding with Ministers, but of course the key thing is to get that Administration back up and running and hope the parties in Northern Ireland can find the common ground to achieve that.

Housing and housing challenges have been raised, which is entirely fair. It has been very tough for people all over the country to deal with housing costs, whether those relate to getting on the housing ladder or not. I have to say that I do not think that is an entirely private sector or entirely public sector issue. It applies equally to everybody right across the country and that is why housing was the centrepiece of the Budget.

[David Linden]

Will the Minister give way?

[Andrew Jones]

I will get going first, and then I will come back to the hon. Gentleman.

Members also raised the paradise papers—the tax evasion papers. We have not actually seen those papers yet, because they would not be provided to Her Majesty’s Revenue and Customs, but the point remains. Should we be bearing down on anybody who is not paying their fair share of taxes? Absolutely, and that is why this Government have taken more action to do so than any other Government in history and have raised £160 billion from it since 2010.

Many Members have paid tribute to those in our public services, and I would simply agree. Within our society, public sector workers are among the most hard-working, talented and committed people. There are more than 5 million public sector workers right now, right across the UK. They carry out essential roles: they keep our streets safe; they teach our children; and they work day and night in our hospitals. At Christmas time in particular, they will be working when many others are enjoying time off with their families, and we should pay tribute to them for that and recognise their contribution. We should also recognise the contribution of those working overseas, who see their families even less frequently. The hon. Member for Warrington North (Helen Jones) said that they go the extra mile and deserve respect, and I entirely agree. But the right hon. Member for Warley (John Spellar), who I do not think is still in his seat, said that those on the Government side of the House see them as the enemy, and I am afraid that is just wrong. I do not think that anybody sees our public servants as the enemy.

[Chris Stephens]

Does the Minister believe that when a Government pay their own workforce decently the whole country benefits from the increased tax revenue generated and the increased spending it allows?

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[Andrew Jones]

I will come to the issue of payment. It is of course part of a balanced approach to delivering public services, but I will address the hon. Gentleman’s point later.

I would like to re-emphasise the point that nobody on our side of the House in any way thinks that public sector workers are the enemy. I entirely agree with the hon. Lady’s point that modern economies have a mixture of public and private and the two are interrelated and work strongly together.

[Laura Pidcock]

For clarity, not one Conservative Member of Parliament has written to the Speaker to speak on behalf of public sector workers on the pay cap. They may not be the enemy, but there is a strong lack of interest in public sector workers.

[Andrew Jones]

I think that perhaps the hon. Lady is getting a bit carried away. We have no idea what the motives are for people being or not being at this debate. I have certainly been here in debates where there has been no Labour Member of Parliament, but I have not sought to make some kind of cheap political point off the back of it, because that is simply not appropriate and not reasonable.

To recap, the Government are acutely aware of how public sector workers form the backbone of our society and again I join Members in paying tribute to them. We have also had some questions about the reasons for pay policy. It is fair to remind the House that in 2010 we inherited the biggest deficit in our peacetime history. There was an urgent need to get public spending under some control, and that has been a key ingredient in returning our economy to health. The coalition Government implemented a two-year pay freeze, which has been mentioned several times by Members during the debate, but I remind the Labour party gently that it supported that policy at the time. The pay freeze was followed by a series of 1% pay awards for public sector workers. In the autumn Budget the Chancellor—he did mention this, I point out to the hon. Member for Bootle (Peter Dowd)—reconfirmed that under this Conservative Government the policy would end. It was a reconfirmation because that had been previously announced by the Chief Secretary to the Treasury in a statement on 12 September.

What does that mean? That means that for 2018-19 the Secretaries of State will have much greater flexibility in how they consider pay awards for public servants. I will return to the substance of the Chancellor’s announcement in a few moments, but first I will highlight the scale of the challenge. Public sector workers account for roughly £1 in every £4 that the Government spend, so we are dealing with some enormous sums of money here. The public sector pay bill in 2016-17 was £179.41 billion. That was an increase of 3.6% on the previous year, when it was £173.2 billion. There is a ginormous scale to the amount of money that has to be found. That leads me to one of the factors in determining pay policy: getting the right balance between finding the money and rewarding public servants for their vital work, while being fair to all taxpayers and ensuring that we return our public finances to balance.

[Peter Dowd]

In line 11 on page 4 of “Funding Britain’s Future”, Labour shows exactly how it would fund lifting the pay cap. Can the Minister be as explicit and comprehensive as Labour has been on this matter?

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[Andrew Jones]

I am not entirely sure that the Labour election manifesto, which claimed that their policies were fully funded, was 100% accurate. Perhaps we could go back to some of the rather awkward interviews that the shadow Chancellor gave in the media over the weekend.

[Chris Stephens]

The Minister talked about the size of the pay bill. Have the Government done any research on its size and how much activity that has generated in the wider economy?

[Andrew Jones]

The hon. Gentleman asked whether the Government have done research on the size of the pay bill; I have just detailed the numbers. We are acutely aware of how public spending has an impact across the country. Any expenditure has an impact on the local economy as money recirculates, so of course that point is understood.

[Rachael Maskell]

Will the Minister give way?

[Andrew Jones]

I am being very generous, but I will give way to a fellow north Yorkshire Member.

[Rachael Maskell]

I am grateful; I am looking forward to hearing about the Government’s generosity, because I want to know how much the Treasury is expecting public sector workers to receive in the total package, or the total envelope. How much—the figure?

[Andrew Jones]

I will come on to the process ahead. Despite the difficult economic circumstances from 2010, the Government have continued to invest in our public servants. We are helping them, alongside all others, to keep more of their money by increasing the personal allowance. That is a significant change. In 2010, the personal allowance stood at £6,475, but in the Budget only a few days ago, the Chancellor announced that in April 2018, the allowance will rise to £11,850. That means that public sector workers on a basic rate of tax will be £1,075 a year better off compared with 2010.

[Helen Jones]

Does the Minister accept, first, that most of the money spent on raising the tax threshold actually benefits the better-off? Secondly, does he accept that the combined effects of the Government’s tax and benefit changes, even when raising the tax threshold is taken into account, has been to hit low-paid families in work hardest?

[Andrew Jones]

I do not accept that. I have looked at the distribution analysis and what the hon. Lady said is simply not the case.

We have not just helped through the personal allowance. We have invested a further £100 million to recruit 2,500 extra police officers, and in July, my right hon. Friend the Education Secretary announced an additional £1.3 billion for schools to support the transition to the national funding formula. Let us go back to the NHS; in the Budget, the Government announced an additional £6.3 billion of new funding for the NHS. As I mentioned, we reconfirmed in the Budget the ending of the 1% public sector pay policy. That means that the Government are no longer pursuing a one-size-fits-all policy on pay for public servants.

[Matt Western (Warwick and Leamington) (Lab)]

This was before my time, so correct me if I am wrong; a few years ago it was voted through that Members of Parliament would receive a pay increase. If the principle was right then for MPs and it was seen to be appropriate, why is it not appropriate for all our public sector to receive a pay increase?

[Andrew Jones]

The hon. Gentleman is perhaps not absolutely correct about the process. That also predates my time in the House and goes back to the expenses crisis in 2007 and 2008. Any hon. Members who have been here a bit longer are welcome to jump in, but I think that at that point, Parliament basically gave all responsibility for its pay rises to an independent body. Since then, I do not think that it has voted on the matter. I have certainly never voted on Members’ pay. I recognise that that is a contentious point, but Parliament is no longer responsible for its pay.

[David Linden]

I accept that IPSA decided on MPs’ pay, but does the Minister not accept the absolute reality, which is that all of us are on at least a basic salary of £76,000 a year? He gets an extra allowance on top of that. Does he understand why members of the public watching this debate will find it absolutely bizarre to see a Minister earning such a high salary telling public sector workers that they should not be paid a basic rate?

[Andrew Jones]

Nothing the hon. Gentleman said about what I have said is remotely accurate—I have not said that public sector workers should not be paid a decent salary—so I am afraid I do not accept at all the point he makes. It is right that Secretaries of State have the responsibility to determine the right pay award for their workforces. That is because across the public services, each workforce is different, with different requirements, starting points, starting salaries and allowances, and each faces different recruitment and retention issues. Following the announcement, Departments will be able to fund appropriate pay rewards for their workforces from their existing budgets, just as we have done in the Ministry of Justice.

[Liz McInnes]

I want to make a point about IPSA and independent pay review bodies. NHS workers went on to Agenda for Change terms and conditions. One attraction of that was that it gave NHS staff access to a pay review body, but the Government have been overriding the recommendations of pay review bodies since 2010. The analogy just does not work: the Government have not overridden IPSA’s decisions, but they have overridden the NHS Pay Review Body’s decisions.

[Andrew Jones]

I draw the hon. Lady’s attention to the interview given by the shadow Chancellor yesterday in which he said that public sector pay reviews were always subject to negotiation. Perhaps he needs to have a conversation internally first.

Before any decision on pay is made, there is indeed a well-established process for the consideration of pay across the public sector. For local government workers, pay awards are considered by the National Joint Council for Local Government Services. Firefighters have the corresponding National Joint Council for Local Authority Fire and Rescue Services. The vast majority of the remainder are people employed in workforces with an independent pay review body. As part of the process, Departments will shortly submit evidence to the corresponding pay review body for their workforces.

[Rachael Maskell]

I must correct the Minister on what he has just said. Pay review bodies make a recommendation to Government, and the Government then do or do not accept it. There is no negotiation process in place.

[Andrew Jones]

I accept that—I was actually quoting the shadow Chancellor. Let me press on. The pay review bodies will consider evidence from stakeholders, including employers, Governments and unions, and they will make their recommendations in spring and summer next year. Secretaries of State will use the recommendations to inform the final pay awards in the normal way. The PRBs’ recommendations will recognise the wider economic context. The need remains for continued fiscal discipline, and Departments will take that into account when making any decisions.

Many Members have mentioned the NHS, which I want to spend a bit of time discussing. First, the Government are entirely committed to the NHS. Funding for the health service is at record levels. [Interruption.] Opposition Members may mock, but funding is in fact at record levels. They should be doing what we are doing, which is backing the service.

We know that pay restraint has been challenging and we are listening to the concerns of NHS staff and their representatives. We recognise that the NHS now faces greater pressures than at any point in its history, and the reasons for that are an ageing population, which is a significant challenge for western economies, and the greater demand that we are therefore seeing for NHS services.

[Matt Western]

rose—

[Catherine West (Hornsey and Wood Green) (Lab)]

rose—

[Andrew Jones]

I have given way already to the hon. Gentleman, so I will give way to the hon. Lady.

[Catherine West]

Does the Minister accept that there is a link between the current crisis in numbers of nurses in the NHS and the pay on offer, particularly given the huge student debts that many nursing graduates have? It is up to £54,000 for those at London Metropolitan University. Does he believe that there is any link between a starting salary of £21,500 and a huge student debt of £54,000 for nurses?

[Graham Stringer (in the Chair)]

I remind hon. Members who wish to intervene on the Minister that there are 10 minutes left. I am sure that people would like to hear from the Chair of the Petitions Committee after the Minister. Time is now beginning to get tight.

[Andrew Jones]

I was not watching the clock, so thank you, Mr Stringer.

I recognise that starting salaries and debt are clearly related for people making choices, but our NHS provides a magnificent career with long-term security and pay progression. The current average salary for a nurse is £27,635, which is very near the national average salary. Nursing presents a great career.

I mentioned earlier the pressures within the health service. That is why the Chancellor announced at the Budget that if the Health Secretary’s ongoing discussions with the health unions bear fruit, he will provide further funding for pay awards for Agenda for Change staff. That will, of course, follow the pay review body process in the spring. We cannot prejudge those discussions or the pay review body process, but we want the talks to succeed, and we share with NHS workers the common objective of a highly skilled, compassionate, productive workforce working to improve outcomes for patients. The Chancellor made his public commitment with that in mind.

I re-emphasise that the Government are committed to providing fair pay awards across the public sector. That is why we have the pay review body process, which ensures that pay for public sector workers is fair to all sides. We must also recognise the depth of public feeling on the issue, which the 150,000 signatures on the petition demonstrate. The 1% pay policy is ending, as announced on 12 September and reconfirmed in the Budget on 22 November. However, it is important to remember that we now face the established processes for determining those pay awards, and we cannot prejudge them. I cannot comment on a report that has not yet been written.

For that reason, the Government have not set out an explicit target for public sector pay, but I can provide an assurance that this Government will take the recommendations into account. We will continue to invest in our public services and ensure that our public sector workers continue to be fairly remunerated. They deliver a fantastic level of public service on which we all rely, and that will continue to be the case under this Government.

Budget Resolutions

Andrew Jones Excerpts

Thursday 23rd November 2017 Commons Chamber

[The Exchequer Secretary to the Treasury (Andrew Jones)]

I thank all the 30 or so hon. Members who have contributed to today’s debate for their very thoughtful speeches. I will make sure that all their points, suggestions and concerns—including the specific ones mentioned by the hon. Member for Blaenau Gwent (Nick Smith), my hon. Friends the Members for Stafford (Jeremy Lefroy) and for North Cornwall (Scott Mann), and especially my right hon. Friend the Member for Sevenoaks (Sir Michael Fallon)—are raised with the relevant Departments. I gently say to the House that we have had many representations regretting what was not in the Budget, but I am not sure that we received so many in advance of it and before its details were set, even though my door was always open and I met colleagues from all parties.

I will focus my comments on housing. This is a Budget that builds a Britain fit for the future. It is one that aims to ensure that every generation prospers and can look forward to a better standard of living than the previous one. When he opened the debate, my right hon. Friend the Secretary of State for Communities and Local Government spoke very passionately about the importance of home ownership, and I simply could not agree with him more. Providing homes is key to building communities, and to giving families the stability and the security they deserve. Moreover, bringing home ownership back within the reach of first-time buyers is part of our broader intergenerational commitment to younger generations.

However, affordability is a problem. The average house price is now almost eight times the average person’s salary, compared with just 3.6 times two decades ago—in my own area, the ratio is over 14 times—and the number of 25 to 34-year-olds owning their own home has dropped from 59% to just 38% over the past 13 years.

The core of this problem is clearly a lack of supply. However, we have delivered 1.1 million new homes since 2010, including nearly 350,000 affordable homes, and the total housing supply reached 217,000 last year. It is worth noting that that was the first time in almost a decade that the 200,000 milestone had been reached. We of course need to go further, and to make sure that more homes are built. This Budget sets in train a comprehensive set of reforms to address the failure of, I must say, successive Governments to provide enough homes.

[Mr Bacon]

Does my hon. Friend agree that if it was as easy to go and buy a serviced plot of land on which to build a house as it is to go into a Ford dealership and buy a motor car, that would go a very considerable way towards solving the housing problem?

[Andrew Jones]

I simply say to my hon. Friend that I know he has worked very hard on this issue. I welcome his work, and he has made a very valuable contribution to the housing debate.

This Budget sets out an ambition to deliver 300,000 new homes every year, which is 40% more than the current output and 50% more than the target we were left by Labour.

[Wera Hobhouse]

I cited very stark figures showing that social homes are not being built: 32,000 were built in 2011, but only 5,000 were built in 2016. Will the Minister address that problem?

[Andrew Jones]

I point out to the hon. Lady that affordable home building has gone up by 27% in a year, and that is of course a key part of delivering a housing mix that will work for everybody. We need a series of effective planning reforms and substantial investment.

This Budget pledges more than £15 billion of financial support to boost housing supply over the next five years. It will open up new land, and get housing associations and councils building, including by lifting borrowing caps by £1 billion in high-demand areas. It will provide £400 million of funding for regeneration projects and to support SME developers. That brings the total amount of financial support available to at least £44 billion over this spending period. That support includes £40 million towards the development of the construction skills that we will need to deliver those homes.

The Budget also makes serious, sensible planning reforms to help towns and cities grow in the right way, while continuing to protect the green belt. We know that we cannot build new homes overnight, so it also introduces measures to support those who are looking to get on the property ladder now. The Budget has permanently removed the upfront cost of stamp duty land tax for all first-time buyers who are buying a home worth £300,000. That will save the average first-time property buyer nearly £1,700. That should be viewed not in isolation, but in the context of a balanced and broader package of supply and demand.

Those who wish to buy are not the only ones struggling in the current housing market, and many tenants in the private sector would like more security. We will work to understand the barriers to landlords offering longer, more secure tenancies, and then remove those barriers. There is also a £950 million budget to tackle homelessness in the spending period. Fixing our housing market is one of the most important issues that we currently face, and the Budget presents a balanced package of supply-side and demand-side reforms to do just that.

The second part of today’s debate was on public services. We have a great track record of delivering first-class public services, but in the time available I am able to comment on only two things and give two examples of such delivery. First, more than 1.8 million more children are being taught in good or outstanding schools—a significant achievement. Secondly, the NHS is treating more people every year for cancer, and the UK now has its highest ever cancer survival rate. We are doing all that while sticking to our credible plan.

I am running out of time so I will highlight one final point. We must continue to focus on our deficit, and the Budget highlights that both debt and deficit will go down in each year of the spending period. At the same time, we can expect the economy and rates of employment to grow—that is very positive. The Budget sets out how we are investing in the future. It tackles housing supply by getting Britain building, and it addresses the long-term issue of undersupply, while also providing relief in the near term for those who are struggling to buy now. It also backs our public services.

Yesterday, my right hon. Friend the Chancellor spoke about the opportunities and optimistic vision that lie ahead for our country. I will say just this: Britain’s future is bright, and this Budget makes it even brighter.

Ordered, That the debate be now adjourned—(Andrew Stephenson.)

Debate to be resumed tomorrow.

National Insurance Contributions Bill

Andrew Jones Excerpts

Thursday 2nd November 2017 Written Statements

[The Exchequer Secretary to the Treasury (Andrew Jones)]

The Government are announcing today that they will introduce the National Insurance Contributions (NICs) Bill in 2018. The measures it will implement will now take effect one year later, from April 2019. This includes the abolition of class 2 NICs, reforms to the NICs treatment of termination payments, and changes to the NICs treatment of sporting testimonials.

The Government have decided to implement a one-year delay to allow time to engage with interested parties and parliamentarians with concerns relating to the impact of the abolition of class 2 NICs on self-employed individuals with low profits. The Government have committed to abolishing class 2 NICs to simplify the system, so it is therefore right to take the time to ensure that there are no unintended consequences for the lowest paid.

[HCWS220]

Taxation: Beer and Pubs

Andrew Jones Excerpts

Tuesday 31st October 2017 Westminster Hall

[The Exchequer Secretary to the Treasury (Andrew Jones)]

It is always a pleasure to serve under your chairmanship, Mr Owen. I congratulate my hon. Friend the Member for Dudley South (Mike Wood) on securing this well attended and enthusiastic debate. I participated in the Adjournment debate seven years ago—I remember it well. I take this opportunity to commend the work of both the all-party parliamentary beer group, which my hon. Friend the Member for Dudley South chairs so effectively, and of which my hon. Friend the Member for Burton (Andrew Griffiths) is a distinguished former chair, and the all-party parliamentary save the pub group. No one in the pubs and brewing sector across our country can be in any doubt that they have some enthusiastic and eloquent champions within Parliament.

I will try to respond to as many of the issues as I can, but I am sure that hon. Members will appreciate that I am not able to pre-empt what my right hon. Friend the Chancellor may or may not say in three weeks and one day’s time. The requests to do so have been very tempting, but I am afraid that those making them will be disappointed. Before commenting on duty, let me just say that the Government recognise the importance of the UK beer and pubs sector. We hugely value the industry and its contribution to employment, to promoting responsible drinking and to community life. The sector’s footprint covers every single constituency in the country.

As colleagues across the House have said, pubs play a central role in our communities, whether in urban areas, in villages or on the high street. They are often far more than just a social venue; they double as restaurants and I can think of somewhere where they are also the village shop and, indeed, the post office. In my constituency we have a very good not-for-profit organisation called Pub is The Hub, led by John Longden, which does fantastic work helping pubs to diversify their offering.

Colleagues have also mentioned the charitable work in which pubs are involved. Pubs raise more than £120 million per year for charity, so there is a significant impact. The British Beer and Pub Association estimates that the sector as a whole invests more than £2 billion per year in its pubs and breweries, which in turn has an impact on employment; the sector is estimated to employ nearly 900,000 people throughout its supply chain, generating £23 billion in economic value. The very good points made by colleagues about the sector’s employment record have been powerful, and I entirely agree with them. In the run-up to preparing the Budget, I have met the British Beer and Pub Association and other businesses from the industry, including pubs and brewers of all sizes, and we recognise the contribution they make to economies and to the wider beer market—I have made that very clear to them.

The number of breweries in the UK has risen by 64% in just the past five years, to more than 2,000. The growth in the number of small breweries in recent years has increased the diversity and choice in the beer market, and has promoted consumer interest in a much larger range of beers, which has benefited the entire sector. My hon. Friend the Member for Dudley South commented on export, and I can provide some further information about that. More than 1 billion pints of beer are exported from Britain every year and reach 184 countries. Beer is one of the top three food and drink exports, generating nearly £700 million in sales—nearly £2 million, therefore, every day.

Colleagues have spoken about beer duty. I must say, first, that since ending the escalation of the beer duty in 2013, we have demonstrated clear Government support for this industry. After ending the duty escalator, the Government proceeded to cut beer duty in the 2013, 2014 and 2015 Budgets, before freezing it in 2016. It is worth noting that, as has been the Government’s policy since 2013, the public finances assume that alcohol duties will rise with the retail prices index each year. That means that there is a cost. If we choose to cut or freeze duties, there is an impact on the amount of money taken into our Treasury, which affects other areas of public expenditure or perhaps means that we have to seek to raise tax elsewhere. We just need to balance all those points; colleagues must remember that we are still running a giant deficit, which we inherited from the Labour party.

I know that hon. Members will want to reiterate the point made here this afternoon, that cutting duty supports growth and increases revenue. We have seen some evidence of that. I am, instinctively, a low-tax Conservative and I recognise that the lower the tax environment, the more businesses have to invest. It is not as straightforward to see direct cause and effect where we have had cuts, but the principle is, I think, understood. We, therefore, had to take the difficult decision last March that beer duty, along with other alcohol duty rates, needed to rise in line with RPI, but it is worth noting that in light of all the cuts and freezes to beer duty since 2013, a pint of beer costs 11p less than it would otherwise.

Some hon. Members have mentioned the price difference between the on-trade and the off-trade. That issue is raised regularly, and people would like to see the Government applying higher duty rates in the off-trade. Currently, however, that is not legal. European Union law requires member states to charge excise duty on all alcohol and alcoholic beverages, which prevents the UK from selectively charging excise duty on particular products, such as off-trade alcohol, or relieving other sectors, such as on-trade. I need to be clear about that so that we can manage expectations here. I cannot say what is in the forthcoming Budget, but I can say that I will take to it all the representations from today’s debate and share them with my right hon. Friend the Chancellor.

A number of colleagues have raised the issue of business rates, recognising that they are a high fixed cost for some businesses, including pubs. We fully recognise that, and that is why in last March’s spring Budget the Chancellor announced a £1,000 business rates discount for pubs with a rateable value of less than £100,000. To put that into context, that is 90% of all pubs, which basically means that the pubs that do not qualify are more likely to be managed by the much larger chains and are therefore able to manage business rates much more easily. Having said that, I can assure colleagues that we are aware of the request made both here and by the sector to extend the discount, and I can confirm that we will include it within our Budget representations, as we will the comments on business rates overall. However, I should just note that the cuts in business rates announced in the 2016 Budget will cost nearly £9 billion over the next five years, so we are out there helping businesses.

I turn finally to small brewers relief. We know that the number of small brewers has increased significantly over the years, from 400 in 2002 to 2,000 now. I mentioned earlier that the Government recognise that that diversification has added to the sector and the small brewers relief has really helped the growth of the industry. However, we are aware of the concerns about small brewers relief that many have raised with me. When I consider what we need to do, I want to ensure that we work with the whole sector. I want to work with the sector, not against the sector, to support growth, and I would like to see what evidence can be produced to suggest that we can have some uniformity of opinion before moving anywhere forward.

We have heard the points that my hon. Friend the Member for Congleton (Fiona Bruce) made about white cider and will respond in due course. We have had a consultation on that; there is no doubt that it is a problem area.

I finish the debate by saying that it has been a great, constructive and positive one. We have clearly demonstrated support for the sector and the Government are clearly a part of that, with all the actions we have been taking, for all the excellent reasons that have been presented throughout the debate. I assure everyone here that I have listened keenly and that we will take the contributions to be Budget representations. It is only three weeks and one day until we all get to hear what the Budget says—not very far away. I thank hon. Members once more for their contributions and for raising the issue.

[Albert Owen (in the Chair)]

I thank the Minister. I call Mike Wood to make the concluding remarks.

Scotch Whisky Industry

Andrew Jones Excerpts

Tuesday 31st October 2017 Westminster Hall

[The Exchequer Secretary to the Treasury (Andrew Jones)]

It is always a pleasure to serve under your chairmanship, Mr Bone. I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing this debate. I understand his passion for the subject, given his constituency’s long-standing tradition of producing fine whiskies. He mentioned the Highland Park and Scarpa distilleries; I have been fortunate enough to visit his constituency and those places on my holidays and I entirely agree with his basic point. I also agree with his underlying point that producing whisky is a lifetime commitment. People cannot enter into it for the short term. It takes a long time to produce the product, particularly in the premium sector. It is a proper, significant long-term commitment. We are seeing huge innovation and people entering the marketplace—both signs of a good, strong sector.

I will try to answer as many of the issues raised as I can, but in particular I must comment on the duty rates—a key element of the right hon. Gentleman’s speech. However, as one might expect, I am unable in discussing that to pre-empt what my right hon. Friend the Chancellor may or may not do in the forthcoming Budget. That is only three weeks tomorrow, so there is not long to wait. Before I discuss the duties, I reassure the House that the Government recognise the important contribution that the Scotch whisky industry makes to both the UK economy and local communities.

I met with the Scotch Whisky Association and with large and small distillers in the run-up to and preparation of the Budget. The Scotch Whisky Association estimates that the industry adds over £5 billion to the UK economy and supports over 40,000 jobs, 7,000 of which are in the rural economy. Its footprint extends beyond those fortunate enough to have a distillery in their immediate constituency. As my hon. Friend the Member for South Suffolk (James Cartlidge) says, the industry creates jobs throughout the UK, whether in the agricultural sector in East Anglia or, in this case, the bottling technology, but primarily it is a great Scottish industry. Distilleries are also increasingly significant tourist attractions in their own right. Some 1.6 million tourists visited distilleries in 2015, an increase of more than 20% in visitor numbers since 2010.

The Government also recognise that Scotch whisky is a UK export success story. Exports account for about 93% of total production. More Scotch whisky is sold in France in one month than cognac in an entire year—an enjoyable stat to consider. In 2015, we exported 1.2 billion bottles of whisky worldwide. The industry estimates that whisky exports were worth nearly £4 billion last year. That is over £7,500 of Scotch whisky sold every minute, accounting for around a quarter of all UK food and drink exports. It is a fantastic success story for the UK to be proud of.

The reach is equally impressive. In 2016, whisky was exported to 184 countries—that means that over 90% of countries have a taste for whisky. South-east Asia in particular has grown as an export market, with Singapore alone importing £224 million of Scotch whisky last year.

We are seeing an increasing premiumisation of some exports, which reflects a broader food and drink trend within the UK, and Scotch whisky is poised to take advantage of the appetite for premium British products in this area.

[Mr Carmichael]

I agree with everything the Minister is saying, but two things are worth consideration. First, although we are seeing that growth in premiumisation, it is on the basis of a shrinking market share globally in a very competitive market. Secondly, when opening up new market opportunities, Governments in other countries look here to how we treat our own industry. That is why the domestic market and taxation of it cannot be divorced completely from the export market.

[Andrew Jones]

The right hon. Gentleman makes points that I broadly agree with. The signal that the UK supports the industry and recognises its impact on our economy and our exports particularly is entirely understood. In recognition of the quality of the product, Scotch whisky was one of the first food and drink products to feature in the Government’s GREAT campaign, which gave it high international visibility in key markets. I assure Members that we will continue to support the Scotch whisky industry, so that it continues to thrive and prosper.

[Kirstene Hair (Angus) (Con)]

I welcome all the export trends the Minister has outlined, but we have the fourth highest excise duty rate in the EU. Other EU countries support their home industries and we need to follow suit—even more so, now. Does he agree?

[Andrew Jones]

That tempts me towards Budget comments, which I cannot make at this moment. I need to rewind a little bit from that question and make a quick point before coming on to duty rates.

The protected food name scheme remains in place while we are still a member of the EU. The European Union (Withdrawal) Bill, which is currently passing through this place, will ensure that all EU law passes into UK law when we leave the EU. That will include the legal definition of whisky, which is a significant point for the protection of the sector in the long term.

[Ian Murray]

I am grateful to the Minister for giving way; I know he has limited time. I wonder whether the Treasury and the Department for International Trade would talk to the industry in Scotland, which is such a successful exporter. In the post-Brexit world, the Government could learn a lot from the industry and how it has been able to export so successfully. That could happen to other sectors when we leave the EU.

[Andrew Jones]

The hon. Gentleman makes an important point. I have to say, though, that I have been talking to the industry and will continue to do so. One thing I have learned in the preparation of Budgets is that a significant number of representations are made either for Government spending or relating to duty. My door is open. I want to hear from the industry and ensure it understands that it can access the Treasury, which will be entirely supportive of British companies developing, investing and exporting. I particularly include the Scotch whisky industry. I have been trying to get across my support for it, and my door will be open for future meetings.

Let us get to the issue of duty rates. The actions taken by this Government are estimated to have reduced all alcohol duty receipts by around £2 billion since 2013. That is a significant duty cut. The actions taken to freeze or cut spirits duty at Budgets in 2014, 2015 and 2016 mean that the tax on a bottle of Scotch is now 90p lower than it would otherwise have been. I understand the point made by the right hon. Member for Orkney and Shetland about price elasticity within the marketplace. The £4 billion of exports per year are unaffected by duty changes as no duty is paid on exported spirits. No UK duty is paid therefore on around 93% of all Scotch whisky produced.

As we approach the Budget, the Government face some pretty tough choices. As I said, I cannot pre-empt what my right hon. Friend the Chancellor of the Exchequer may announce. However, it is the Government’s policy for our public finances to assume that alcohol duties will rise by retail prices index inflation each year.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

We had a success in reducing corporation tax, which increased the tax take, and we are minded to further reduce corporation tax to achieve the same goal. Does the Minister think that that would also apply to a reduction in the duty on spirits? Would that generate an increased tax take, as per the corporation tax?

--- Later in debate ---

[Andrew Jones]

That is a very interesting question, and it slightly tempts me into a Budget thought, which I am sure was entirely my hon. Friend’s intention. While not commenting on the Budget, I assure him that I am instinctively a low-tax Conservative. That is my principle when dealing with the industry, and I think that can be said of my predecessors in the Treasury, otherwise we would not have had the £2 billion reduction in duty rates over the past few years.

[Douglas Ross]

I know the Minister does not want to be dragged into questions about future Budgets, but does he accept the scenarios that have been painted since previous Budgets? As the right hon. Member for Orkney and Shetland (Mr Carmichael) said, a 2% reduction increased revenue by £124 million, yet the increase of 3.9% on spirits in March this year reduced the revenues going to the Treasury in the first quarter by 7%. That is looking not at the future but at the impact these decisions have had in the past.

[Andrew Jones]

That is an important question, and it has certainly been considered within the Treasury. There is a general view that if we cut duties, we can increase growth and therefore revenue, as the evidence suggested in 2015. However, sales of some drinks have increased after duty cuts, and sales of some drinks have increased after duty increases. It is very hard to evidence that the sales growth my hon. Friend talks about is directly caused by that duty cut.

The principle of supporting a sector in a competitive way through a fiscal and regulatory regime, with support for infrastructure and skills, is exactly what the Government are about: creating the most benign environment in which to do business. I reinforce to the House that our public finances are under some significant pressures. The Government estimates of costs to the Exchequer are scrutinised by the Office for Budget Responsibility before they are certified, so they have independent scrutiny.

I would like to emphasise in the last moments that we will carefully consider all Members’ representations this morning as part of the representations for the forthcoming Budget. I want nobody to leave the debate without a clear understanding that this Government support the Scotch whisky industry. We recognise its importance and are utterly committed to ensuring that this great British success story maintains its global pre-eminence and global growth. The passion for the sector is clearly shared by colleagues here today. When we look at recent trends within the industry and the new entrants into the marketplace, new products becoming available, innovation and export growth, I think we can all say that the future for the Scotch whisky industry is bright.

Question put and agreed to.

Oral Answers to Questions

Andrew Jones Excerpts

Tuesday 24th October 2017 Commons Chamber

[The Exchequer Secretary to the Treasury (Andrew Jones)]

The Government are investing more than £1 billion to stimulate the market to build the next generation digital infrastructure that the UK needs for the future. This includes the £400 million digital infrastructure investment fund and the £740 million for full fibre broadband and 5G mobile. That is in addition to the Government-led £1.7 billion superfast programme, which will extend coverage to 95% of UK premises by the end of the year.

[Andrew Percy]

The vast majority of my constituents in east Yorkshire and north Lincolnshire now enjoy superfast broadband, but a small number in rural areas still struggle with access to broadband and to good 4G, 3G or even 2G mobile coverage. What more can the Government do to give BT Openreach and the mobile networks a kick up the backside to make sure that we get the coverage that we are all paying for?

[Andrew Jones]

The Government are working to continue their progress on the superfast broadband roll-out. We expect to reach 95% by the end of this year. We have already seen some changes from the internal reorganisation within British Telecom, separating out Openreach. The progress will be maintained through Government expenditure in that programme and in the digital infrastructure investment fund.

[Helen Goodman (Bishop Auckland) (Lab)]

The Office for Budget Responsibility has just reported on the poor productivity record in this country. Investment in broadband is crucial to improving that, so when will the Minister respond to the letter that I wrote to him on 1 September about broadband in Teesdale?

[Andrew Jones]

I absolutely agree that broadband and digital progress are critical to the productivity of our economy. I am not aware of that letter. I will look into it with immediate effect, and I apologise for the delay.

[Alan Mak (Havant) (Con)]

As the fourth industrial revolution accelerates, superfast broadband will be key to the productivity of our high-growth technology businesses. Will the Minister continue working with entrepreneurs and businesses to ensure that they get the broadband system that they need?

[Andrew Jones]

I most certainly will continue to work on that. My hon. Friend has consistently spoken up on behalf of entrepreneurs and enterprise since he arrived in this House. The Government’s intention to pursue our broadband investment, whether it is superfast or full fibre, is right at the heart of our efforts to improve productivity.

[Sammy Wilson (East Antrim) (DUP)]

BT has received hundreds of millions of pounds from the Government for public investment in the digital network. But there are parts of my constituency—both rural and urban—where broadband coverage is still very poor, such as the town of Carrickfergus. BT refused to look at innovative ways of splitting the network. Is it not time that the Government looked to other bids for some of the money they are investing in broadband in order to ensure that there is better coverage?

[Andrew Jones]

The hon. Gentleman makes an important point. All our constituencies have some areas that are not yet fully able to access the important benefits of broadband. I will discuss his points with my colleagues in the Department for Communities and Local Government, and report back to him.

[Peter Dowd (Bootle) (Lab)]

I am pleased that the Communities Secretary has been inspired by Labour’s fiscal credibility rule in relation to investment in infrastructure—including digital infrastructure and, recently, house building. But this does beg crucial questions. Does the Minister support his colleague’s bid to “borrow more to invest” or is it more a bid to steal the Chancellor’s job?

[Andrew Jones]

I have already outlined the Government’s progress on broadband. The hon. Gentleman mentions, I think, some kind of speculative comment regarding the forthcoming Budget. The Chancellor has already answered that question.

[Peter Dowd]

The digital infrastructure plans are wholly inadequate, as my hon. Friend the Member for Bishop Auckland (Helen Goodman) indicated. Is the Minister aware that productivity figures are at pre-crisis levels, and is he really aware that regional industries are up to seven times more productive than others? What is the digital investment strategy doing to close that shocking gap?

[Andrew Jones]

The hon. Gentleman seems to have forgotten the announcement of the national productivity investment fund—a £23 billion pot of money for investment in infrastructure, including digital infrastructure, across the country. I have already mentioned the £400 million digital infrastructure investment fund and the £740 million for full-fibre broadband and 5G. We are already approaching the figure of 95% of UK premises having access to superfast broadband by the end of the year, and that puts us in a strong place for the future.

[Sir Edward Leigh (Gainsborough) (Con)]

5. What steps he is taking to reduce tax-related bureaucracy for small and medium-sized enterprises in the east midlands.

--- Later in debate ---

[Ms Esther McVey (Tatton) (Con)]

9. What investment his Department has provided for transport infrastructure projects in Cheshire in the last 12 months.

[The Exchequer Secretary to the Treasury (Andrew Jones)]

I wish my right hon. Friend many happy returns of the day.

I confirm that the Government are taking big decisions for Britain’s future and investing in transport infrastructure in Cheshire and across the north. Just last week, my right hon. Friend the Secretary of State for Transport announced road investment of £65 million in Cheshire. That included £18 million of funding for five different local road schemes and £47 million for the Middlewich bypass. That is on top of improvements that the Government are already making to the M6, M62 and M56.

[Ms McVey]

I welcome the Minister’s reply. The Cheshire and Warrington local enterprise partnership has a bold agenda for increasing business in Tatton and Chester. The local plan has an equally bold agenda for increasing the number of houses, which will bring money to the Exchequer and help to meet the country’s housing need, but we have a significant need for the mid-Cheshire rail line. May I ask the Chancellor and his team to look at that for the forthcoming Budget?

[Andrew Jones]

I will take that as a Budget representation. The basic point is that we are clearly very ambitious to unlock, through transport investment, both residential and commercial opportunity. That has been a feature of Government policies over the past few years, and I am sure that it will continue to be.

[Tony Lloyd (Rochdale) (Lab)]

In Cheshire and across the north, the reality is, as the Minister says, that infrastructure investment will unlock productive capacity. Does the Minister recognise that the disproportionate investment per head between the south-east and the rest of the country is unacceptable and must change?

[Andrew Jones]

The hon. Gentleman’s assessment is simply mistaken: Government investment is broadly equal across the different regions of our country. I highlight to him that the central Government investment going into the north during this spending period is £13 billion, which is a record in British history.

[Several hon. Members rose—]

--- Later in debate ---

[Amanda Milling (Cannock Chase) (Con)]

T5. The location of Rugeley B power station is a large strategic site in the west midlands. Will my hon. Friend join me in urging all the parties involved in the redevelopment to be ambitious, bold and visionary, and will he outline what Government assistance is available to attract innovative high-tech businesses?

[The Exchequer Secretary to the Treasury (Andrew Jones)]

I will most certainly join my hon. Friend in both celebrating the project and urging everybody working on it to be as ambitious as possible. In terms of support, since 2010, my hon. Friend’s area has benefited from more than £300 million in grants to support cutting-edge innovation in the west midlands through Innovate UK. The Government welcome private investment in innovative and high-tech businesses right across the economy, which is why we announced an additional £4.7 billion for research and development at the 2016 autumn statement.

[Joanna Cherry (Edinburgh South West) (SNP)]

T3. The Scottish National party has repeatedly asked the Government to take action to enable Scotland’s police and fire rescue service to reclaim VAT in the same way as they have done for national bodies such as Highways England. If that action can be taken for Highways England, why not for Police Scotland and the fire and rescue service in Scotland? Will Ministers commit to doing that in the next Budget?

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

T6. When is the Treasury likely to give the sign-off to phase 2b of HS2, which you will know, Mr Speaker, runs through Cheshire?

[Andrew Jones]

I will take the matter up with my right hon. Friend the Secretary of State for Transport and get back to my hon. Friend.

[John Mc Nally (Falkirk) (SNP)]

T7. Inflation now stands at a staggering five-year high and businesses in Scotland, Falkirk and across the UK face the prospect of increased trade tariffs post-Brexit. On the high street, it is increasingly a case of bricks versus clicks, and businesses are closing down, as people buy online, leaving town centres struggling. Has the Chancellor spoken to retailers about the possibility of reducing the amount of VAT paid by businesses in our town centres to help them cope with online trade and the impending extra burdens?

--- Later in debate ---

[Antoinette Sandbach (Eddisbury) (Con)]

May I urge my right hon. Friend when looking at the business case for HS2 phase 2b to consider carefully the additional £750 million cost to the Exchequer of building over the Cheshire salt fields?

[Andrew Jones]

We discussed this issue when I was a Transport Minister. All the topography and construction implications as the route is finalised will be taken into consideration as part of the business case.

[Mr Speaker]

We all remember when the hon. Gentleman was a Transport Minister and he enjoyed telling us how he travelled to work by bus; I remember thinking that the fellow passengers on the bus must have been absolutely exhilarated to know that they were accompanied at the time by the Under-Secretary of State for buses.

Infrastructure (Financial Assistance) Act 2012: Annual Report

Andrew Jones Excerpts

Monday 23rd October 2017 Written Statements

[The Exchequer Secretary to the Treasury (Andrew Jones)]

The annual report to Parliament under the Infrastructure (Financial Assistance) Act 2012 for the period 1 April 2016 to 31 March 2017 has today been laid before Parliament.

The report is prepared in line with the requirements set out in the Infrastructure (Financial Assistance) Act 2012 that the Government report annually to Parliament on the financial assistance given under the act.

Copies are available in the Vote Office and the Printed Paper Office.

[HCWS191]

Crown Estate Transfer Scheme 2017

Andrew Jones Excerpts

Tuesday 17th October 2017 Written Statements

[The Exchequer Secretary to the Treasury (Andrew Jones)]

The Smith Commission agreement recommended that the management of The Crown Estate’s assets in Scotland should be devolved. It also stated that, following this transfer, responsibility for the management of those assets should be further devolved to local authority areas. It was agreed that the UK Government would not determine how the Scottish Government managed further devolution. The Crown Estate Transfer Scheme 2017 brought this change into law on 1 April 2017.

During the passage of the Scotland Bill which implemented the Smith Commission recommendations, the UK Government promised that they would update Parliament on progress made by the Scottish Government with the onward devolution of management of The Crown Estate assets via a written ministerial statement six months after the transfer.

The Scottish Government held a consultation on the long term management of The Crown Estate in Scotland, including opportunities for further devolution. The consultation opened on 4 January and closed on 29 March 2017. It covered four key areas:

Vision

Managing Crown Estate Assets for Scotland and Communities

Securing the Benefits for Scotland and Communities

Assessing Impact

The Scottish Government are currently in the process of analysing the consultation responses. These will inform policy and proposals for a Bill to be introduced in the current session of the Scottish Parliament.

The consultation document is available at: https://consult.scotland.gov.uk.

[HCWS178]

Oral Answers to Questions

Andrew Jones Excerpts

Tuesday 18th July 2017 Commons Chamber

[Ian C. Lucas (Wrexham) (Lab)]

3. What steps he is taking to incentivise private sector investment infrastructure projects in the nations and regions.

[The Exchequer Secretary to the Treasury (Andrew Jones)]

This Government are committed to supporting private investment, which finances about half our infrastructure. We have a trusted and stable regulatory system, and through the UK guarantees scheme we have supported projects worth more than £4 billion. We are also introducing innovative support such as the digital infrastructure investment fund, which will accelerate the roll-out of the ultrafast network.

[Ian C. Lucas]

The north Wales Mersey Dee region hosts world-beating businesses such as Kellogg’s, Airbus and JCB, but we need competitive infrastructure in order to ensure that we remain competitive. For that reason, and in the absence of the public sector investment we are crying out for, may we please have the ability to deliver private sector investment? What are the Government going to do to deliver roads and rail?

[Andrew Jones]

I simply do not recognise what the hon. Gentleman says; investment in our infrastructure is at a record high. We are seeing investment in roads, rail and south-east air capacity—in all modes of transport. The point is how we deliver that investment, and it is a combination of public and private. He is clearly right to champion the requirement for infrastructure in his area and to highlight its impact on the economy, but to say we are not doing anything is just factually wrong.

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

One disincentive for the private sector to invest in infrastructure is the delay that sometimes occurs in bringing major projects through to completion and commencement. The private sector is already committed to making a significant contribution to the funding package for Crossrail, but we have been waiting since March for a decision to take it forward. Will the Minister do all he can, across government, to speed up that regional and national infrastructure project?

[Andrew Jones]

I see significant merits in Crossrail 2, just as I see them in northern powerhouse rail and projects right across our country. I will of course take on board my hon. Friend’s point and relay it to the Transport Secretary.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Private investment thrives on stability, but we have a Cabinet in a state of anarchy when it comes to the terms of our exit from the European Union. Do the Government agree with Labour Members that an early announcement on transitional arrangements is therefore essential? If the Minister does agree with that, will he tell us the Government’s position on the latest date such arrangements could be announced—or are we more likely to see a transitional Chancellor than a transitional deal?

[Andrew Jones]

I am not going to speculate on the negotiations, as that would be way above my pay grade. I just refer the hon. Gentleman to the Chancellor’s answer a moment ago on the merits of a Brexit deal that secures our economic future.

[Vicky Ford (Chelmsford) (Con)]

4. What assessment he has made of the effect of Government investment in infrastructure since 2010.

[Mims Davies (Eastleigh) (Con)]

7. What assessment he has made of the effect of Government investment in infrastructure since 2010.

[The Exchequer Secretary to the Treasury (Andrew Jones)]

Infrastructure is at the heart of this Government’s economic strategy, and our investments will boost productivity and growth. Since 2010, more than a quarter of a trillion pounds has been invested by the public and private sectors, about 3,000 individual projects have been completed, we have almost completed Crossrail, and more than 4 million homes accessed superfast broadband for the first time.

[Vicky Ford]

Nearly 100 years ago, the world’s first radio broadcast was sent out from Britain—from Chelmsford. Does my hon. Friend agree that the digital infrastructure investment fund will give a massive boost to fibre and superfast broadband so that the UK can continue to lead the world in the digital and communications sectors?

[Andrew Jones]

I thank my hon. Friend for that question. I have just learned something about Chelmsford and its history in the development of our digital and radio infrastructure. The investment will boost Britain’s internet, making it more reliable and consistent and easier for people to live and work more flexibly, which will of course boost productivity right across the UK. Fibre is the technology of the future, just as radio was 100 years ago, and this fund will significantly assist small and medium-sized enterprises with capital to roll it out, with both Chelmsford and the UK benefiting.

[Mims Davies]

Investment and infrastructure projects are absolutely key to keeping our nation moving. As the Minister knows, Chickenhall link road and Botley bypass in my constituency were helped to do just that and to improve the quality of life of my constituents. I welcome road funding through the national productivity investment fund. Will Ministers meet me to discuss the delivery of those projects, which will affect my constituency in Eastleigh?

[Andrew Jones]

My hon. Friend is a great champion for her constituency and for these projects. I have absolutely no doubt about the importance of them locally. If nothing else, we have met on the subject a number of times, and she is very tenacious. These projects not only open up opportunities for development, but help to relieve the congestion in the heart of her constituency. I will of course ensure that she meets the Transport team as soon as possible to progress those projects.

[Chris Evans (Islwyn) (Lab/Co-op)]

The electrification of the Great Western Railway between Paddington and Swansea was to provide huge economic benefits for businesses along that line. Unfortunately, the project has now overspent by £1.2 billion, and not a yard of the line has been electrified. What are the Government doing to ensure that projects such as this do not run over and waste taxpayers’ money in future?

[Andrew Jones]

The efficiency in the way that we deliver our infrastructure is a critical consideration when the Government are putting in so much money to transform our infrastructure. The points that the hon. Gentleman makes about Network Rail will have been heard by my hon. Friends in the Transport team, and I will highlight his comments to them.

[Kirsty Blackman (Aberdeen North) (SNP)]

Last month, the Institute for Government produced a report on infrastructure spending that said that decision makers do not know whether projects deliver value for money. It also believes that Parliament and the public are misinformed. What action are the Chancellor and his Department taking to ensure that future infrastructure spend delivers value for money and that costs do not spiral out of control like they have for Hinkley Point C?

[Andrew Jones]

I simply highlight the extremely rigorous business case process, which every single project has to go through before it receives approval. The idea that these schemes are not considered is just wrong.

[Kirsty Blackman]

The Scottish Government have committed to delivering 50,000 affordable homes by 2021. We recognise the calls that are being made by organisations such as Shelter Scotland and Big Issue, which believe in prioritising affordable housing. Why are the UK Government committing to build only 40,000 affordable homes in the same period?

[Andrew Jones]

Again, that is a question that will have to go to colleagues in another Department. I will make sure that they hear the hon. Lady’s comments.

[Bob Stewart (Beckenham) (Con)]

5. What assessment he has made of how to balance the needs of (a) business and (b) the Exchequer in setting the corporation tax rate.

--- Later in debate ---

[Alex Chalk (Cheltenham) (Con)]

18. Government investment in Cheltenham’s cyber-accelerator since 2015 is now yielding results, with numerous cyber start-ups benefiting from local mentoring from experts at GCHQ. Does my hon. Friend agree that mobilising the UK’s sovereign expertise in areas such as cyber boosts jobs for young people and opportunity in places such as Cheltenham?

[The Exchequer Secretary to the Treasury (Andrew Jones)]

The GCHQ cyber-accelerator in Cheltenham is part of the Government’s £1.9 billion cyber-security strategy. It allows business start-ups to gain access to GCHQ’s world-class personnel and expertise, and the accelerator helps these businesses to expand, contributing to jobs and opportunities, including in Cheltenham, and it makes the UK a safer place online. I know that my hon. Friend has worked very hard on this for a considerable period of time. He makes an important point as he speaks up for his constituency, and how it is leading in the UK and across the world.

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

How does the Minister expect to reduce youth unemployment, given the further education budget cuts across the country, particularly in Coventry, where the budget has been cut by 27%?

--- Later in debate ---

[Christian Matheson (City of Chester) (Lab)]

10. What fiscal steps his Department is taking to incentivise businesses to invest in rooftop solar.

[The Exchequer Secretary to the Treasury (Andrew Jones)]

Immaculate parliamentary manners, but not immaculate parliamentary procedure—sorry about that, Mr Speaker; I thought we had moved on from that question.

Solar is a UK success story. In 2013, solar capacity was expected to reach between 10 and 12 GW by 2020; we now expect Government support to bring forward about 13 GW by then. Feed-in tariffs provide an incentive for businesses to invest in rooftop solar.

[Christian Matheson]

The sun might be going down on the Chancellor’s time at No.11, but it remains an important source of energy and income for 44,000 microgenerators, including schools and hospitals. But since April they have seen their business rates increase by up to 800%, in some cases. Some major deployers of the technology are now pulling out of the rooftop market. Will the Government reassess the business rate levy paid on rooftop solar, so that we can give real growth to this important environmental sector?

[Andrew Jones]

The Government are continuing to support the take-up of solar panels through business rates by maintaining the exemption for new installations of solar power generating less than 50 kilowatts of power; of course, we also have all the transitional relief schemes and the cut in business rates announced in the Budget last year, which cost nearly £9 billion. The Government have listened to the voice from solar. We are keen to see progress on solar, and these schemes will help that.

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

Will not the roll-out of solar panels be greatly helped by Brexit, when the very high tariffs imposed on cheaper Chinese photovoltaic cells are removed and we will no longer be protecting the inefficient German industry?

[Andrew Jones]

I thought my hon. Friend was going to say that the sun may be shining more brightly post-Brexit. We are very keen to see the progress of solar as well as all other renewables. We will have to see what happens with pricing, but the key thing is that we will be supporting solar, as it is a key part of our power mix for the future.

[Mr Speaker]

There was I thinking that the hon. Member for North East Somerset (Mr Rees-Mogg) was taking an interest in energy saving because he has six children. Apparently not.

[Kelvin Hopkins (Luton North) (Lab)]

Have not the Government actually cut support for solar because, together with new storage technologies, it threatens to become so successful that it would kill off any case for horrendously expensive nuclear?

[Andrew Jones]

The support for solar comes directly from people’s bills. When the costs of installation and generation come down, through efficiencies and economies of scale and production, so should support. We are taking steps to control the cost of support schemes and putting solar on the path to delivery without subsidy.

[Catherine West (Hornsey and Wood Green) (Lab)]

11. What plans he has to introduce measures to tackle tax avoidance and evasion carried out through non-domiciled status and offshore trusts.

--- Later in debate ---

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

T7. The new Conservative Mayor of the Tees Valley, Ben Houchen, is setting up the first mayoral development corporation outside London on the former SSI site in Redcar. The regeneration of the site and the attraction of inward investment are obviously vital. Will my hon. Friend work with me and the Mayor to deliver the best outcome for the site and the local economy?

[The Exchequer Secretary to the Treasury (Andrew Jones)]

The South Tees Site Company is currently undertaking ground investigations to assess the levels of any contamination on the SSI site. The mayoral development corporation is leading on the development of plans for the future of the site. I look forward to working with my hon. Friend, the Mayor of the Tees Valley and others to promote the economy of the area.

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

In the Budget, the Chancellor promised a consultation on business rates, but we have not yet seen that. Businesses in York are really struggling and some are leaving the city because of the astronomical business rates. When will we have that consultation—what is the date?