ONS Decisions: Student Loans

Baroness Morgan of Cotes Excerpts

Tuesday 18th December 2018 Commons Chamber

[Elizabeth Truss]

I have been very clear in my response that this is fundamentally an accounting decision. It does not affect our decisions on higher education policies. The bodies that we are talking about—the ONS and the OBR—are independent bodies. It is right that the Government do not make decisions on how to treat these figures in our national statistics—they are made by independent bodies, and we fully respect that. The ONS is going to be working out more details. It would therefore be completely wrong for me, outside a fiscal event, to comment on the precise implications for the public finances.

I can reassure Members across the House that we will do the right thing by students, and we have done the right thing by students. We have a record number of students in our universities. We rightly have a system where students contribute to their degrees, which deliver them higher future earnings and greater prospects in later life.

It is a bit of a cheek hearing all this from Labour Members, whose party promised in the 2017 general election that it would write off all the student loan book and then—surprise, surprise—said after the election that it would not any more. I think it is a bit of a joke that Labour Members are coming to this House and trying to give us lectures about student finance.

[Nicky Morgan (Loughborough) (Con)]

The hon. Member for Ilford North (Wes Streeting) is right to say that the Treasury Committee covered this in our report to the House published earlier this year, but the Chief Secretary is right to say that the decision does not affect any financial help that students now, or students starting in September or beyond, will get. Does she agree that this is actually a debate about political scrutiny of the deficit, which is an important figure at every fiscal event, and that the change will give a truer picture of what is happening with the deficit?

[Elizabeth Truss]

My right hon. Friend, the Chair of the Treasury Committee, is correct. Ultimately, this is about making sure that our independent bodies are giving us advice about how our public finances should be presented in order to give the best possible picture. That is completely independent from our decisions about what is best for students. The fact is that this decision does not affect cash flows; it affects the presentation of accounts. We should not conflate that with the very right and proper debates we are having about making sure that our students have a finance system that supports them.

Oral Answers to Questions

Baroness Morgan of Cotes Excerpts

Tuesday 11th December 2018 Commons Chamber

[Mr Hammond]

I am not sure whether the hon. Gentleman was in his place for the Budget, but I did in fact announce a digital services tax based on turnover. I also announced a reduction of one third in the business rates for independent retailers. I am very happy to have a meeting with him and explain the changes in detail.

[Nicky Morgan (Loughborough) (Con)]

I thank the hon. Member for Batley and Spen (Tracy Brabin) for mentioning the Treasury Committee report published this morning. The Treasury Committee is about more than Brexit, as I hope this House is too, and next week we will be holding a joint Committee session with the Housing, Communities and Local Government Committee on business rates. I am sure that the Financial Secretary is looking forward to his evidence session greatly.

[The Financial Secretary to the Treasury (Mel Stride)]

indicated assent.

[Nicky Morgan]

I see the right hon. Gentleman nodding.

Business rates are an issue for retailers, and there are some simple things that could be changed now. Does the Chancellor agree, for example, that, for many retailers, their busiest period is Christmas when they could perhaps agree to pay more in business rates and then pay less in periods when they are less busy, so, overall, the same amount is paid, but there is flexibility in payment?

[Mr Hammond]

If my right hon. Friend is asking whether there is anything that local authorities can do to help with the cash-flow challenges of seasonally based businesses, I am very happy to take that away and look at it and see whether there is anything that we can do to help in that way. The challenge, of course, is that business rates raise £25 billion a year and are a vital part of our overall tax system. If we are to change them, we must find a sustainable way of replacing them.

Leaving the EU: Economic Analysis

Baroness Morgan of Cotes Excerpts

Wednesday 28th November 2018 Commons Chamber

[Mel Stride]

No. The right hon. Gentleman raised specifically the issue of a Brexit dividend, and the Chancellor has rightly always been very clear on that. There is uncertainty in the economy at the moment and this is one of the key reasons why, if we can agree a deal, get that deal to stick and get rid of that uncertainty, a huge level of investment will come to our shores and this will be a huge shot in the arm to the British economy.

[Nicky Morgan (Loughborough) (Con)]

Let me start by saying that this economic analysis has been published at the behest of the Treasury Committee, but none of the three men called before me so far from the Government side is on that Select Committee. I say to the Minister that I was very clear in the letter that I wrote to the Chancellor of the Exchequer on 27 June, which is available on the parliament.uk website for any interested parties. I said:

“The long-term analysis should consider the economic and fiscal impact of… implementing the Withdrawal Agreement and the terms of the future framework”.

It is clear, sadly, that that is not what has been published today. It may be the case that it is not possible, as we have heard, to model particularly those agreements and the future framework, but that should then be explained to the House out of respect for the House. This is only the first part of the economic analysis to be published. We will have the Bank of England’s economic analysis at 4.30 pm and that of the Financial Conduct Authority, and then there will be various relevant witnesses, including the Chancellor, giving evidence to my Committee in the course of next week. So I say to hon. Members that, rather than leaping to conclusions about what is on the printed page today, we should all take the time to read it in detail—all 90 pages, and the technical amendment of over 70 pages—and the Bank of England’s analysis, and we should listen to the evidence given next week, then listen to the debate, and then we will make our judgments on 11 December.

[Mr Speaker]

Order. Before the Financial Secretary responds, and I note what the right hon. Lady said, I just say to the House that by contrast with the experience of earlier periods, during and indeed throughout my tenure, it has been my overwhelming and almost invariable practice—[Interruption.]—as the sedentary nod of the hon. Member for Wellingborough (Mr Bone) testifies, to call everybody in urgent questions and statements. That did not use to happen. It almost always happens with me, so if people would just be a little bit patient, rather than everybody thinking, “I am more important than the other person,” everybody will get in. I called the Father of the House and two Secretaries of State of some standing. [Interruption.] And the right hon. Member for Loughborough (Nicky Morgan) was a Secretary of State, but the Chair decides who to call and when, and I will always ensure that everybody gets a fair opportunity. It has to be that way. I have always treated the right hon. Lady with the very greatest of respect and I will always do so. I will also try to equalise the gender balance, but I hope that people will understand when I say that there are limits to what the Chair can do. The Chair also depends on who is present and who is standing. I am doing my best and I always will.

Oral Answers to Questions

Baroness Morgan of Cotes Excerpts

Tuesday 6th November 2018 Commons Chamber

[John Glen]

The Government are fully committed to achieving a good deal with the EU. We will make lots of assessments during that process, but our mind is focused on achieving that deal and the Government will achieve it.

[Nicky Morgan (Loughborough) (Con)]

Mr Speaker, through you, may I assure all Members of this House that the Treasury Committee will take very seriously the job of scrutinising the analysis produced by the Treasury on the final deal on behalf of all Members, and will let Members know the conclusions that we draw from that before the meaningful vote?

My hon. Friend the Minister may well be aware of the OBR discussion paper published last month on Brexit and the OBR’s forecasts. Paragraph 1.27, which talks about the risk of a disorderly Brexit, says that

“while not a direct parallel, it is worth noting that the ‘Three-Day Week’ introduced in early 1974…was associated with a fall in output of…under 3 per cent that quarter.”

The shadow Chancellor might think that the 1970s was a good way to manage the economy, but can my hon. Friend assure us that he does not think that that is the way forward for this country?

[John Glen]

That is certainly not the way forward. I can assure my right hon. Friend that we are doing everything we can to plan for all eventualities. That is why I am taking through a large number of statutory instruments to take account of all possibilities next year, but we are working on, and focused on, achieving a good deal.

Oral Answers to Questions

Baroness Morgan of Cotes Excerpts

Tuesday 11th September 2018 Commons Chamber

[Mr Hammond]

The hon. Gentleman needs to look a little deeper. The real answer to low wages is improving productivity. The challenge for this Government—for any Government in this country—is to work with industry, trade unions and training institutions to ensure that we address our productivity challenge. That means investment in infrastructure and skills, support for businesses to improve management and access to capital for growing businesses. Only when business is growing, successful and productive can it pay the higher wages that we all want to see.

[Nicky Morgan (Loughborough) (Con)]

One of the people most interested in the trends in wage growth and inflation—and who gives the Treasury Committee evidence about that—is the Governor of the Bank of England. Will my right hon. Friend indicate to the House when he expects to be able to let us know about the discussions that he has been having with the current holder of that post about extending his position?

[Mr Speaker]

Not least because he will have important views about wage growth and inflation.

Taxation (Cross-border Trade) Bill

Baroness Morgan of Cotes Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 16th July 2018 Commons Chamber

[Anna Soubry]

In a moment.

The reality, which is faced in the White Paper, is that if we do not deliver frictionless trade in the way in which companies such as Toyota need and demand, they will simply not be able to operate. Some 81% of Toyota cars produced at Burnaston are exported into the European Union. And before anybody says, “Well, there will be new markets”—those unicorns that our Government will be chasing in new deals—please understand how the modern manufacturing industry works. Companies such as Toyota already make cars in other parts of the world to satisfy and supply the local market.

[Nicky Morgan (Loughborough) (Con)]

Will my right hon. Friend give way?

[Charlie Elphicke]

Will my right hon. Friend give way?

[Anna Soubry]

I will give way to my right hon. Friend the Member for Loughborough and then I will come down the row.

[Nicky Morgan]

Does not the intervention on my right hon. Friend made by our hon. Friend the Member for Gainsborough (Sir Edward Leigh) show what is the matter with this Brexit debate? Rather than talking about the detail and the risk to thousands of jobs across the country in our manufacturing sector—the Conservative party has championed that sector since 2010—he prefers to trade insults and trade on personalities.

[Anna Soubry]

Here is a surprise: I completely agree with my right hon. Friend.

Oral Answers to Questions

Baroness Morgan of Cotes Excerpts

Tuesday 3rd July 2018 Commons Chamber

[Mel Stride]

The issue that the hon. Gentleman identifies is an important element of the tax avoidance that has been happening in our country. The vast majority of people pay the correct level of tax, but there have been schemes, such as the disguised remuneration schemes to which he refers, through which essentially very little tax indeed has been paid. The Government believe that that is wrong and that we should act to clean up the arrangements. We have given individuals until April 2019 to do exactly that. On the support that he mentions, HMRC’s door is of course always open for individuals in that situation to have discussions. I would urge all those individuals to make contact with HMRC to find a sensible way forward.

[Nicky Morgan (Loughborough) (Con)]

I warmly welcome what the Chancellor says about putting all information before Parliament before we vote on the final withdrawal agreement later this year, but of course that will not be the end of parliamentary involvement, because we will have to onshore all the current EU financial services legislation, including the binding technical standards. Will the Chancellor set out the Treasury’s thinking so far about how that process will be democratically accountable to Parliament or perhaps the Select Committees?

[Mr Philip Hammond]

My right hon. Friend asks about Parliament’s role in dealing with the onshoring of a very large number of financial services regulations. Some of them will be dealt with through a parliamentary process, but other areas of financial services regulation are dealt with by the independent regulators—the Financial Conduct Authority and the Bank of England. I will write to her and give her as much detail as I can about how that will break down between the different categories.

Oral Answers to Questions

Baroness Morgan of Cotes Excerpts

Tuesday 22nd May 2018 Commons Chamber

[John Glen]

I am of course happy to look at that case. Following my appearance at the Treasury Select Committee, I asked my officials to look at the guidance on the website, as I am anxious not to put misleading advice on there. The LISA is available for long-term savings. That was the scheme’s objective when it was set up.

[Nicky Morgan (Loughborough) (Con)]

I am pleased the Minister just mentioned his appearance before the Select Committee, where we explored the issue of the 25% charge and the fact that a further 6% of capital can also be lost. Will he update us? He has talked to officials about looking at the website. Will he ensure that the Treasury website is fully compliant with Financial Conduct Authority rules applicable to firms in the private sector?

[John Glen]

I am taking this up further, but I am concerned not to put a misleading flat-rate percentage on there, given that most savers who make an unauthorised withdrawal will pay a different amount according to their circumstances.

Customs and Borders

Baroness Morgan of Cotes Excerpts

Thursday 26th April 2018 Commons Chamber

[Nicky Morgan (Loughborough) (Con)]

It is a pleasure to follow three such excellent speeches, two of which I agreed with and one that, as I think the hon. Member for Vauxhall (Kate Hoey) will not be surprised to hear, I did not. However, I do agree with one point that she made. Right at the end, she mentioned a dishonesty in debate, and I take the tenor in which she made that point. Actually, Parliament is doing today exactly what it should do and teasing out the issues in these complex and important negotiations, as my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) said.

The Select Committees are bringing before Parliament the hours and hours of evidence that we have gathered from expert witnesses. I know there is a suspicion of experts, but there are many people who want to share their thoughts, their expertise and the points that they had to get on the record before the Select Committees. It is right that those Committees should have called today’s debate via the Liaison Committee, because this is a very important issue. When the hon. Member for Vauxhall talks about dishonesty, let me say to her that the dishonesty is not fronting up to the issues that we face. We must be able to discuss them, and part of the reason for today’s debate is that we are not having it in the heat of amendments to legislation, when we know there is enormous pressure on Members on both sides to vote one way or another. I hope that today’s debate can remain calm and rational, so that we can get the evidence out there. If there is any doubt about the amount of evidence, Members have only to look at the number of reports on the Table here in the Chamber or the number of reports tagged on today’s Order Paper.

Time is very limited and I do not want to repeat all the points that have already been made, but I want to say a few things, in particular to my party colleagues and party members out in the country, some of whom seem to think that it is an affront for Members such as myself and others with my views to be making these points today. First, the Prime Minister was very clear in both our manifesto and the Lancaster House speech when she talked about wanting a customs agreement. The manifesto talks about a

“free trade and customs agreement”,

and the Prime Minister said in the Lancaster House speech:

“I do want us to have a customs agreement with the EU. Whether that means we must reach a completely new customs agreement, become an associate member of the Customs Union in some way, or remain a signatory to some elements of it, I hold no preconceived position.”

Much has been said about free trade agreements and the fact that they will take some time to negotiate, but it is not just the new free trade agreements to be negotiated; it is the ones that we are currently party to that have to be renegotiated. That is a complex project. It will take a long time to make that pulling apart happen, and I do not think that the time necessary for it has been allocated by the Government.

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

I utterly agree with everything that my right hon. Friend has just said. I joined a free-trading Conservative party that was pro-business. Does she agree that inevitable delays and complexities, the additional form filling that is required and dead-weight costs on businesses can do nothing but reduce the competitiveness of British business, unless we have the kind of effective customs union that she is talking about?

[Nicky Morgan]

My hon. Friend is absolutely right. The cost to business, as identified already by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), must not be forgotten. This is not just about costs for the Government; it is about costs for business.

[Mark Garnier (Wyre Forest) (Con)]

rose—

[Nicky Morgan]

I give way to the former Trade Minister.

[Mark Garnier]

Just on a small technical point, my right hon. Friend is absolutely right that a trade deal takes a long time to complete and negotiate, but the plan is to transfer across the existing trade deals that we enjoy within the European Union at the early stage and then renegotiate at our leisure where we can improve them, so we will ensure continued business afterwards without deviation.

[Nicky Morgan]

I understand the point my hon. Friend has made; he is a former Minister and everything else. I will talk about this in a moment if I have time, but the trouble with it is that we have been saying, “The plan is—” for some time now. We had a speech last month from the Prime Minister and we had position papers last summer: “The plan is—”. Time is running out, as we heard from the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper), the Chair of the Home Affairs Committee. The hon. Member for Dundee East (Stewart Hosie) is not in his place, but as he said, when we travelled to the United States with the Treasury Committee, the US was very clear: “Yes, you can have a free trade agreement. It’ll be on our terms.”

Let me talk about logistics. As I have said, part of today’s debate is about getting the evidence, and we took evidence in the Treasury Committee from Jim Harra, a senior official at Her Majesty’s Revenue and Customs, who said:

“The key challenge, for example, in ro-ro ports, in contrast with container ports, is that in a lot of them there are no port inventory systems in place.”

We have less than 12 months to go to March 2019 and not that much longer to December 2020, and no port inventory systems are in place. He also talked about ensuring that declarations can be linked

“to the vehicle that is carrying the goods,”

so that they can

“flow off the ferry and we know what…lorry we need to check.”

The British Irish Chamber of Commerce has come up with a proposal for a new customs arrangement. Have the Government been exploring it? Much mention has been made of Northern Ireland, and for me this is a critical issue. I had the pleasure in the 2010 to 2015 Parliament of being a Treasury Minister. I was the Duties Minister, and I visited the Northern Ireland border. Other hon. Members will know far more about it than I do, but it is over 300 miles long and incredibly porous. Had it not been for the policemen I was with, I would not have known which side of the border I was on. It was impossible to tell. Realistically, how on earth is such a border going to be policed? This is not just about the economy; it is about the political and cultural sensitivities of the border. We have already heard about the Northern Ireland Affairs Committee’s conclusion about the aspirational aspects of the technology that might be needed.

This is a debate of the Government’s own making, because as we have heard, time is running out and silence on these important issues is no longer an option. It is completely right that Members of Parliament and Select Committees should ask questions about these issues. What are the Government’s plans? How are things going to work? We have to listen not just to those in the country, but to individuals and business in our constituencies. The Treasury Committee and the Select Committee on International Trade had a joint evidence session this week. When asked about the free trade agreements and the free trade policy that we are apparently going to pursue, Professor Patrick Minford, who many Members on my side of the House will say is somebody we should listen to, said:

“We don’t have any precedents for this.”

This country is being asked to experiment, at other people’s pleasure, with a free trade policy when we do not know what the costs will be for constituents and businesses in this country. I say to my party: if we undermine and ignore the evidence, the peace in Northern Ireland and the business and financial security of people in this country, we will not be forgiven for a generation.

--- Later in debate ---

[Mrs Sheryll Murray (South East Cornwall) (Con)]

On Monday, Michel Barnier laid bare for all to see what staying in the customs union would mean for the UK: effectively staying in the EU. In his speech he mentioned the need for state aid rules, and that would probably mean no bailing out of the steel industry or any other industry that needs it in future. I remind hon. Members of the situation of a Shetland leasing and processing company that was run by Shetland Islands Council. More than a decade ago it fell foul of the European Commission when a Labour MEP reported it for operating outside state aid rules.

Mr Barnier also mentioned the need for tax rules. All those who hoped for the end of taxation on women’s sanitary products, and thought that Brexit could finally make that happen, might be very disappointed. He also talked about the need for shared social and environmental standards, which would mean that although people had thought that live animal exports could be banned, that would not be likely to happen. He spoke of the need to clarify the role of the European Court of Justice, and, yes, that probably means that he wants the EU Court of Justice to continue to rule over our laws. If hon. Members want an example of that, I refer them to the Factortame case.

When I knocked on the doors of my constituents, I found that people were absolutely sick of an EU over which they have virtually no say making the laws that govern them. Last month, the Prime Minister clearly said that

“the jurisdiction of the ECJ in the UK must end.”

I wholeheartedly agree; let us make it so.

[Nicky Morgan]

Will my hon. Friend give way?

[Mrs Murray]

I will not give way because other Members wish to speak. I am really sorry.

The worst of all possible scenarios would be one in which we had to abide by and be ruled by the European Union, but without any say. I wonder how long it will be before we start hearing suggestions about EU access to our fishing grounds—my fishermen—to pay for trade. How long will it be before we hear what the cost of staying in such a customs union will be? No doubt we will still have to pay a divorce bill, but on top of that, if people voted for a customs union, we might face an annual bill for effectively staying in.

The Prime Minister has always maintained that no deal is better than a bad deal. I can think of no worse deal than effectively staying in the EU with all the costs, but no say over it. That would also be a massive betrayal of the British people, who voted to leave. South East Cornwall voted to leave for the reasons I have outlined, and Cornwall voted to leave. Most importantly, the whole country voted to leave, and to do anything else would be a massive betrayal of the people we are supposed to represent. Brexit means Brexit; leave means leave. We just need to get on with it.

Oral Answers to Questions

Baroness Morgan of Cotes Excerpts

Tuesday 17th April 2018 Commons Chamber

[Mr Hammond]

As the hon. Gentleman knows, the tidal lagoon project is under careful consideration by the Government, and a decision will be made and announced in due course.

[Nicky Morgan (Loughborough) (Con)]

One of the consequences of increasing productivity is of course higher wage growth, which I think would make everyone feel much better. The Chancellor may be aware of the Treasury Committee’s recent report on childcare, which called for more childcare support for those undergoing retraining—another way of increasing productivity. What were his thoughts on that, and what is his progress on talks with the national retraining scheme?

[Mr Hammond]

I am happy to tell my right hon. Friend that we have had a very productive first meeting with the CBI and the Trades Union Congress to flesh out the shape of the national retraining partnership, which is clearly going to be a crucial part of our investment in skills in future. I do take her point on childcare. We have of course seen the Select Committee’s report and will respond to it in due course.