Class 4 National Insurance Contributions
Baroness Morgan of Cotes Excerpts(7 years, 1 month ago)
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Mr Hammond
I find it a bit extraordinary that that should be the hon. Gentleman’s intervention. He, after all, is the one who said that Labour would fund its £500 billion plans by doubling income tax, doubling national insurance, doubling council tax and doubling VAT. He is the one who sounded the alarm on the Opposition side.
Look, I have had extensive conversations with colleagues since the Budget, over the weekend, and in the Lobby last night and on Monday. I have had lots of discussions with the Prime Minister over the last few days, as the hon. Gentleman would expect. As he would also expect, I am not about to give the House the full detail of those private conversations.
Nicky Morgan (Loughborough) (Con)
I commend my right hon. Friend for his statement today and for recognising what colleagues and others have been saying to him. I also commend him for recognising that the employment market in this country is changing: there are more people who are self-employed, and that needs to be addressed. Does he not think it is right that it is the Conservative party that is asking those questions about how we balance our books, rather than the Labour party, which has no clue whatever about how to pay off the deficit or pay off our debt?
ECOFIN
Baroness Morgan of Cotes Excerpts(9 years, 9 months ago)
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The Financial Secretary to the Treasury (Nicky Morgan)
A meeting of the Economic and Financial Affairs Council was held in Brussels on 8 July 2014. Ministers discussed the following items:
Level 2 legislation on bank contributions under bank recovery and resolution directive and the single resolution mechanism
The Commission briefed the Council on the preparation of implementing legislation that will determine the contributions to be paid by banks to resolution funds established under the directive on bank recovery and resolution (BRRD) and the regulation on the single resolution mechanism (SRM).
Presentation of the Italian presidency work programme
The incoming Italian presidency presented its work programme for economic and financial affairs, and the Council adopted a statement on economic growth and reform.
Review of the EU 2020 strategy
Council held an initial discussion as part of a mid-term review of the Europe 2020 strategy.
Savings taxation: update on negotiations with third countries
Following agreement on the amended savings taxation directive, the Commission updated the Council on third country negotiations on the directive between the EU and Switzerland, Liechtenstein, Andorra, Monaco and San Marino.
Childcare Payments Bill
Baroness Morgan of Cotes Excerpts(9 years, 10 months ago)
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The Financial Secretary to the Treasury (Nicky Morgan)
I beg to move, That the Bill be now read a Second time.
Hon. Members will be aware that, as we sit in the Chamber this afternoon, not only is overall employment in the United Kingdom at record levels, but female participation in the work force is at an all-time high. That means that across the country more people than ever before have jobs to wake up for at the start of the day, and pay cheques to take home at the end of the month. That is something that this Government can be proud of having helped to achieve.
However, we are by no means complacent, and we know that we can do more to remove the barriers that still prevent people who want to go to work from being able to do so. That is where the Bill comes in. Tax-free child care will be a simple scheme that is responsive to the needs of working families, whatever their work arrangements. The Bill will provide greater support to parents and, in turn, open up greater opportunities for them.
I would like to use my time at the Dispatch Box this afternoon, first, to remind Members why we are introducing these changes; secondly, to talk through exactly what form these changes will take; and finally, to explain how the changes will differ from, and improve on, the employer-supported child care scheme currently in place.
Hywel Williams (Arfon) (PC)
I am grateful to the Minister for giving way so early in her speech. I am concerned that the Bill does nothing about the supply of child care, particularly in rural and disadvantaged areas. How confident is she that the measures she proposes will indirectly stimulate greater provision?
Nicky Morgan
I thank the hon. Gentleman for that point. As I am sure he will be aware, my colleagues in the Department for Education, and particularly the Under-Secretary of State, my hon. Friend the Member for South West Norfolk (Elizabeth Truss), have been working to encourage the provision of more places, including by providing £500 to enable child minders to set up new businesses, and through schools and a wide variety of places. He is absolutely right that in order to tackle the issues of child care, we need to think about not only the costs but the supply side. We are confident that there will be places available for all the families who want them.
Let me turn first to the “why”. As hon. Members will know very well—many from their own experiences—every year millions of families across the country are faced with a difficult decision: whether it makes greater financial sense to stay at home and manage child care themselves or to go to work and arrange for someone else to do it.
Neil Parish (Tiverton and Honiton) (Con)
I very much welcome the Government’s approach to tax-free child care, especially for the self-employed. In the past they have been ruled out of help, so the sooner we can put that right, the better.
Nicky Morgan
My hon. Friend is entirely right. I will move on to talk about the importance of the scheme for the self-employed and for those setting up or growing their own businesses. I am very pleased that he has raised that at this stage in the debate.
Charlie Elphicke (Dover) (Con)
This measure will be welcomed by my constituents in Dover and Deal who work hard but do not get paid a lot of money. How many working families with children will benefit from this important measure?
Nicky Morgan
I am grateful to my hon. Friend for that question. Some 1.9 million working families will have access to the scheme. Of those, 1.25 million will have qualifying child care costs and will benefit under the scheme. As I will explain, more families will benefit under this new scheme than currently benefit from employer-supported child care vouchers.
Of course, for some families there is no choice about who should look after the children, because the parent or parents have to go to work, and must therefore arrange child care. It is worth reminding Members that the research shows that this issue has had, and continues to have, a disproportionate impact on women. The Women’s Business Council, which has done an excellent job in its first year in drawing attention to the barriers women face and suggesting changes to help remove them, has frequently pointed to the way in which child care costs can have an undue impact on women’s careers. Recent survey data from the Department for Education show that more than half of mothers in the United Kingdom who are not in paid work would prefer to be in paid work if they could arrange reliable, convenient, affordable and good-quality child care.
We need to think about what is at stake, not just for the mothers whose careers are held back, and not just for the many fathers who are primary carers and experience the same problems, but for our economy. If we can equalise the labour force participation rates of men and women, the United Kingdom can further increase growth by 0.5% per year. That will be a huge change which could make a real difference to our families and our economy.
Hon. Members will know that the Government have already taken action on this matter. We have funded 15 hours a week of free child care for all three and four-year-olds, which is available to all families, including those where a parent is not working. We have funded 15 hours a week of free child care for the 20% of two-year-olds who are most disadvantaged. From this September, we are extending that offer to about 40% of two-year-olds.
Jonathan Ashworth (Leicester South) (Lab)
I apologise for the fact that I am going to have to leave to pick up my own children from child care. Will the Minister confirm that a lot of parents who need access to child care help need it now, and that it was a mistake on the part of the Government, back in 2011, to reduce the child care support that was available when they made cuts to working tax credit?
Nicky Morgan
I entirely agree that families need support now. I have been setting out exactly what we have done in extending to 15 hours a week the free child care available for all three and four-year-olds, as well as for disadvantaged two-year-olds. On working tax credit, let me point out that the Government are spending £1.1 billion on the child care element of tax credits each year, so many families are still, rightly, receiving a huge amount of support through the tax credit system. We are proposing an enhancement of the child care offer that we already have.
We are taking action to drive up the supply of high-quality child care provision by legislating for childminder agencies, encouraging primary schools to open for longer, and reducing bureaucracy and red tape for providers—all steps that should help to drive supply up and costs down.
The Bill represents a further step towards helping hard-working families. We are committed to launching the scheme next autumn and rolling it out to all eligible families with children under 12 within the first year of its operation.
Ms Margaret Ritchie (South Down) (SDLP)
There is a concern that while single parents can access the new system, families with one parent in work and one not in work would not be entitled to anything. What can be done to assist people in such circumstances? From a Northern Ireland perspective, I know that there will be a legislative consent motion to deal with this legislation, but what advice can the Minister give now, in advance of such an LCM and in advance of the Bill’s implementation?
Nicky Morgan
I thank the hon. Lady for making that point, which is certainly of interest to everybody concerned with the issue of child care and who should look after children. I want to be very clear that this is about a choice, for those families who can afford it, in that they can decide that one parent will not be working, at least for a certain period. Of course, however, some families do not have that choice, with both parents needing to work, and there are lone parents who will need to work. For families where one parent is not working, we have introduced the married couples tax allowance, which has been legislated for in the Finance Bill, and those families will be receiving a tax benefit of just over £200 a year. This proposal is very much about enabling parents to play a full part in the labour market. That is why we have brought this Bill forward at this time.
Ms Ritchie
I am looking at this issue in a Northern Ireland context, and I am sure that there are many regions in Britain with similar circumstances. What happens if the other partner cannot access full-time or even part-time occupations, which is a reality for many families throughout the UK?
Nicky Morgan
Employment levels have gone up substantially under this Government. More people are getting jobs and more hours. As I say, the Bill is about a choice. With more people securing employment, this is about enabling families to make a choice if both parents need to or want to work, or, in the case of lone-parent families, providing support that is more generous than the current employer-supported child care voucher scheme.
The scheme, which launches next autumn, is to be rolled out to all those eligible families with children under 12 within the first year of its operation. The real triumph of the scheme is that it will make hundreds of thousands of parents who are currently excluded from support eligible for it.
The scheme has been designed so that support is available to the self-employed, who play a crucial role in our economy but are currently excluded, and so that it suits the needs of part-time workers, who are very often parents staggering their way back into full-time work, and those parents who are temporarily absent from the workplace—for example, during statutory parental leave. It is also designed to support those couples where one member is in work and the other is in receipt of carer’s allowance or employment and support allowance, by making them eligible for the new scheme.
Barbara Keeley (Worsley and Eccles South) (Lab)
The Minister is reading out a list, but on the question of future roll-out, Opposition Members are very concerned about universal credit, the future of which we spent much time discussing in the Chamber last week. When will additional support be made available for those low-income families, who deserve help with the costs of child care? Is it really the case that 4 million low-income families could be waiting until 2017, and why is there still so much uncertainty around funding this part of the programme for universal credit?
Nicky Morgan
I do not think there is uncertainty around that, but there is uncertainty among Opposition Members and I find it staggering that they are criticising and querying universal credit when it is absolutely needed. I think that all Government Members and most people in the Chamber will agree with that. From April 2016, working families will be able to recover 85% of their actual child care costs under universal credit.
Barbara Keeley
Where will that be funded from, because there is also a lack of clarity about how it will be funded?
Nicky Morgan
I do not think there is a lack of clarity. We have published regulations today and there will be further debate during the Bill’s Committee stage, so may I suggest—[Interruption.] More information and plenty of guidance will be made available to families who might move from universal credit to tax-free child care and to those who might have to move back again. That will be available online and there will be a provision to enable people to get guidance from Her Majesty’s Revenue and Customs as to which scheme is most suitable for them.
Nicky Morgan
I am not going to give way again. The point is that, under universal credit, families will get support for 85% of their child care costs. In short, this is a system that recognises and adapts to the complexities of modern working patterns. It also goes a long way towards providing the simplicity sought by many parents.
Someone with a screaming child in one arm and a BlackBerry with a screaming boss on the end of it in the other hand does not want to spend their time negotiating a complex and rigid child care scheme. We have therefore been working incredibly hard to ensure that the scheme will be simple, responsive and flexible. It will be easy for parents to register and open a child care account and to access the scheme through online portals. It will be flexible to the changing demands of child care they face. It will allow them to pay in money when they want to, and it will also allow other people to pay in, such as grandparents or an employer. In many cases, it may well be a family member who is keen to support the child’s upbringing. The scheme will also allow parents to spend money on qualifying child care at a time of their choosing, by allowing them to use their vouchers on, for example, summer holiday clubs, not just during the school term.
Hywel Williams
The service will be provided online. How confident is the Minister that parents in rural areas such as mine, where broadband is either very slow or non-existent, will not be disadvantaged?
Nicky Morgan
That is why this Government are providing a huge amount of money—more was announced last week—to enable communities to get online, including broadband. Many families are already able to access services online and via broadband. Rather than look for problems, it would be helpful if everyone in this House went out and sold the scheme to families, so as to enable them to register and make it a reality.
Nicky Morgan
I want to make some progress.
On flexibility, parents and families will be able to build up balances in their accounts, to meet the cost pressures of expensive times of the year. The scheme will also provide rigidity where parents need it. Once eligible for the scheme, parents can rest assured that they will continue to be entitled to support for three months, regardless of any changes in circumstances they may experience.
Hon. Members with further questions about the scheme’s practicalities may wish to note that we have today published the draft regulations for consultation. They contain the detailed rules concerning eligibility for the scheme—for example, what qualifying paid work means—and its operation, such as how and when a declaration of eligibility might be made.
Bridget Phillipson (Houghton and Sunderland South) (Lab)
In relation to the transparency of the regulations and the clarity of the scheme, will the Treasury publish a distributional analysis so that we can understand how families will benefit? How much will the average family benefit per year from the new scheme?
Nicky Morgan
We already have figures showing that for the 1 million families who will gain from the introduction of the scheme, the average additional support will be £600 a year. Obviously, the Government top-up very much depends on how much families put into the accounts for themselves. For example, a working single parent with one child who has child care costs of £5,000 will receive £1,000 of support from the scheme. I will certainly take away the hon. Lady’s suggestion, but the figures are already fairly clear. The level depends on families’ contributions, which will then be matched by the Government.
As hon. Members will be aware, when the tax-free child care scheme is introduced, employer-supported child care will be closed to new entrants. Parents who already receive support through that scheme can continue to receive it in exactly the same way as long as they continue to work for their current employer and the employer continues to offer the scheme. Workplace nurseries will not be affected by the changes.
Those who favour the current arrangements need to remember that under the present system less than 5% of employers offer employer-supported child care, leaving more than half of all employees—as well as all self-employed parents, and most employees on the minimum wage—without support. In contrast, tax-free child care will be available to all working families provided that they meet the eligibility criteria. As such, we expect the scheme to be open to at least twice as many families as the current one.
We expect the new scheme to be much fairer. One of the main failings of existing employer-supported child care is that it disadvantages lone parents by providing twice as much support to couples in which both partners work for employers offering the scheme than it does to single parents. To be completely frank, that does not seem right, so the Bill addresses that unfairness. It will ensure that the level of support provided is determined not by the number of parents in work, but by the number of children in the household. That means that for a family with two children, the maximum level of child care costs supported by tax-free child care will be three times the maximum level supported by employer-supported child care.
It is worth reminding the House that the existing scheme is an inefficient one. At present, employers receive a national insurance contributions disregard of up to 13.8% for operating an employer-supported child care scheme, despite the fact that it generally costs them significantly less than that to run their scheme. We should remember that that taxpayer money is not actually spent on child care support. There will therefore be no employer’s national insurance contributions breaks in tax-free child care once the new scheme becomes available.
We know that many employers value the role they can play in supporting their employees, including by helping them with their child care costs. We hope that such employers will continue to take an active, voluntary role in the new scheme. In fact, many have told us that they intend to do so. Although it may disappoint some hon. Members that the Government have no intention of making any form of employer role mandatory, they should remember that that is because we want to minimise the burdens on small businesses. We also want to maximise the scheme’s fairness so that it is the same whether people are self-employed, employed by a small shop or employed by a huge multinational.
We want to increase the support available to hard-working families with their child care costs as soon as possible. We especially need to support the women of the United Kingdom, who are disproportionately impacted by the complexity and unfairness of the current child care arrangements. The more women we can help back to work—if they want and need to work—then the more people we can get back to work, the more we can drive growth in our economy, the more we can reduce some of the inequalities that still blight our workplaces and the more we can raise the quality of life not only for millions of parents but, crucially, for their children.
I was tempted to say that the Bill represents a baby step in the right direction, but it represents so much more. This is a hugely important change for mothers, fathers, children, families and employers. As such, I am incredibly proud to stand at the Dispatch Box and to commend the Bill to the House.
Catherine McKinnell
My hon. Friend makes a powerful and important point, and I think we should celebrate on a cross-party basis the fact that we now have consensus that the Government need to take on board this issue and that addressing it can improve the life chances of families, in particular children. That is a huge credit to the last Labour Government who pushed this issue forward and raised it up in terms of political acceptance and cross-party agreement and as an issue that Government cannot simply turn their back on.
None the less we have seen soaring costs, falling numbers of places and cuts in tax credits for thousands of families and, as a result, in 2015 families will be worse off than they were in 2010. Even when the help arrives, it is unclear who exactly will benefit from this scheme, and even then it is unclear how much better off some people will be and many might legitimately ask whether they will actually be better off. In the Government’s original consultation last August, they estimated that 2.5 million working families would be eligible for support under this scheme, but in their revised consultation, set out in the subsequent consultation response in March, that number was reduced to 1.9 million families, and therefore around 2.6 million children. However, the Government estimate that only two thirds of those 1.9 million working families—so, about 1.25 million—will have qualifying child care costs. As far as I can tell, however, Ministers have never properly explained what that crucial difference is, because clauses 1 and 2 of the Bill define qualifying child care based on two criteria—first, whether the child care is provided by a registered and accredited provider, and, secondly, where one of the main reasons for the child care is to enable parents to go to work—but that does not explain why 1.9 million families are eligible, yet only 1.25 million such families have eligible child care costs. In fact, as far as I can tell, the Bill does not specifically refer to qualifying child care costs anywhere. I see the Minister shaking her head and I am sure she would like to clarify this point.
Nicky Morgan
First, I said in my speech that qualifying child care costs would be defined in the regulations that have been published today and that, no doubt, we will be discussing in Committee. In relation to the other two points the hon. Lady raised, first I am sure she welcomes the fact that, as part of the announcements in March, we said tax-free child care must be rolled out much more quickly, which partly accounts for the change from 2.5 million to 1.9 million, as we are much better able to estimate because we are rolling it out over a period of 12 months. Secondly, we must appreciate that some families will want child care but it will not be for the purposes of going to work and therefore the taxpayer will not be paying for it. There is also the element of child care having to be Ofsted registered, and, again, many families will decide that they do not want to access formal child care which is Ofsted-registered as they instead have other child care arrangements. Again, that is something the taxpayer is not going to cover at this stage.
Catherine McKinnell
I thank the Minister for that clarification, but I am surprised she thinks it is acceptable that on the day we are debating this Bill on Second Reading we should be able to debate these regulations that have only been published today. I am also very surprised by the comments she makes about the timetable. The Government have obviously had to re-consult on this issue so they are far behind their original timetable anyway, so I am not—
Catherine McKinnell
In a moment I will. First, I will finish what I am saying, which is that this is far too little, too late, and no child care support is available from this Government for this entire Parliament, but I would be happy for the Minister to correct me on that.
Nicky Morgan
The regulations were published today for this Second Reading debate, earlier than might otherwise have been the case, because I wanted the House to be informed. Moreover, the consultation that we have launched in relation to the delivery providers in no way affects the Bill’s timetable. I would not want the hon. Lady to let the House think that the timetable is affected. It certainly is not. We intend that the scheme will be launched and ready for families to access from autumn 2015, as we have always said.
Catherine McKinnell
I was referring to the Government’s original timetable that they are already behind on, but I appreciate that it is intended this offer will be implemented in autumn 2015, as she says. We hope that that will be the case. However I do have a number of questions about the implementation. Unfortunately, Ministers have repeatedly refused to set out the specifics of who will be better off and by how much, or whether people will be better off as a result of these measures. I have tabled a series of written parliamentary questions to try to gain clarity on those points, but disappointingly, although not surprisingly, the answers from the Financial Secretary have not been helpful in the slightest. In many cases, the right hon. Lady has simply failed to answer the questions. It would appear from her responses that the Department is simply not aware of what proportion of families paying for child care will benefit from the Bill, how it will benefit different income groups proportionally, and what the average top-up will be per child once the scheme is up and running. It is hard to believe that the Treasury is not in possession of such data. Surely it is fundamental to understanding what the Bill’s impact might be on the Exchequer, and on children and families.
The only indication that we have about how the Bill will impact on different income groups is from work undertaken by the Resolution Foundation, which suggests that the scheme could be skewed towards higher earnings, which might go some way to explain why the Minister has been so unforthcoming with responses to the various questions put.
Oil and Gas Fiscal Review
Baroness Morgan of Cotes Excerpts(9 years, 10 months ago)
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The Financial Secretary to the Treasury (Nicky Morgan)
Following the announcement at Budget 2014 that the Government would conduct a review of the oil and gas tax regime, HM Treasury is today publishing a call for evidence—“Review of the oil and gas fiscal regime: a call for evidence”. Copies of the document have been deposited in the Libraries of both Houses.
The review comes at an important time for the UK continental shelf. There is still a considerable amount of oil and gas left to recover—up to around 21 billion barrels of oil equivalent—and the Government’s tax regime has helped support record levels of investment to find and extract it. But exploration and production is becoming harder and more expensive, and the UK is facing competition for capital from other countries.
The review will look to ensure the UK’s oil and gas tax regime continues to encourage investment in the North sea and maximises the benefits of the country’s hydrocarbon resources for the economy, while ensuring a fair share of profits for the nation. The call for evidence marks the beginning of 12 weeks of discussion with the oil and gas industry and other stakeholders about the long-term shape of the tax regime.
The deadline for responses is 3 October 2014.
The call for evidence is available here:
https://www.gov.uk/government/consultations/review-of-the-oil-and-gas-fiscal-regime-a-call-for-evidence.
Customs Infringements and Sanctions (EU Legal Framework)
Baroness Morgan of Cotes Excerpts(9 years, 10 months ago)
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The Financial Secretary to the Treasury (Nicky Morgan)
I wish to inform the House that the Government have opted in to the proposal for a directive of the European Parliament and of the Council on the Union legal framework for customs infringements and sanctions.
This measure proposes to introduce an EU-wide set of customs infringements and associated sanctions. The objective of this directive is to improve the functioning of the single market by attempting to align better the range of infringements and sanctions imposed by member states. The directive is designed to support the recently updated Union customs code, which is the main body of EU law that sets down the rules on customs procedures and related matters and which will come into effect in 2016.
ECOFIN
Baroness Morgan of Cotes Excerpts(9 years, 10 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Financial Secretary to the Treasury (Nicky Morgan)
A meeting of the Economic and Financial Affairs Council will be held in Brussels on 8 July 2014. Ministers will discuss the following items:
Level 2 legislation on bank contributions under bank recovery and resolution directive and the single resolution mechanism
The Commission will brief the Council on the preparation of implementing legislation that will determine the contributions to be paid by banks to resolution funds established under the directive on bank recovery and resolution (BRRD) and the regulation on the single resolution mechanism (SRM).
Presentation of the Italian presidency work programme
The incoming Italian presidency will make a public presentation of its work programme for ECOFIN.
Review of the EU2020 strategy
Council will hold an initial discussion as part of a mid-term review of the Europe 2020 strategy.
Savings taxation: update on negotiations with third countries
Following agreement on the amended savings taxation directive, the Commission will update the Council on third country negotiations on the directive between the EU and Switzerland, Liechtenstein, Andorra, Monaco and San Marino.
Oral Answers to Questions
Baroness Morgan of Cotes Excerpts(9 years, 10 months ago)
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Neil Carmichael (Stroud) (Con)
1. What recent discussions she has had with her counterparts overseas on protecting the rights of women and girls internationally.
The Minister for Women (Nicky Morgan)
The Government are committed to the protection and promotion of women’s rights in the UK and internationally. I met many of my overseas counterparts at the global summit to end sexual violence in conflict last month, which brought together 128 country delegations, UN agencies and civil society. We discussed how best to achieve that aim, including providing opportunities for international collaboration and the exchange of best practices.
Neil Carmichael
I thank the Minister for that answer. What can the Government do to help prevent distressing cases such as that of Mariam Ibrahim which arose simply because she was a Christian?
Nicky Morgan
I am grateful to my hon. Friend for raising this case, and pleased that Mariam Ibrahim and her family have now been released. They are currently staying at the US embassy in Khartoum. The British embassy in Khartoum continues to follow the case closely and is in close contact with the defence team. We continue to raise our concerns about this case and the broader human rights situation in Sudan with the Sudanese authorities, including with a recent delegation of Sudanese female MPs whom I met. We will continue to work bilaterally and in international forums such as the UN to tackle violence and all forms of discrimination against women.
Bridget Phillipson (Houghton and Sunderland South) (Lab)
Ministers are right to draw attention to the appalling sexual violence faced by women and girls in conflict, but we also have responsibilities when women seek sanctuary in the UK. Will the Minister set out what action is being taken following the serious allegations and concerns about operations at Yarl’s Wood detention centre?
Nicky Morgan
The hon. Lady is right, and it is important and extremely welcome that the Government set up last month’s global summit. Those who seek asylum in the UK need to be offered protection, and the Government are committed to making our asylum system more gender sensitive. We have made significant progress, including putting in place new enhanced guidance supported by high-quality training for all decision makers. Women who seek asylum can request a female interviewing officer and interpreter. They can also bring a friend with them to interviews to provide emotional support if needed.
Hugh Bayley (York Central) (Lab)
In last night’s Adjournment debate, my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown) talked about the case of the abducted girls in Nigeria. He made the point that the problem is not that those girls were abducted, or that others have been abducted since, but that many are at risk and are no longer going to school. Will the Minister look at that speech and prepare a written statement on behalf of her Department to respond to the points my right hon. Friend made?
Nicky Morgan
I certainly will look at that speech—I am afraid I did not have a chance to read it in full before this morning’s Question Time. The hon. Gentleman is absolutely right that one of the tragedies of the situation that has evolved in Nigeria is that the girls who were abducted were doing exactly the right thing—they were in school and taking exams. We absolutely do not want to put girls around the world off their education. The UK remains committed to helping to find the schoolgirls. I shall look at the speech and think about how best to respond.
Heidi Alexander (Lewisham East) (Lab)
2. What steps she is taking to close the gender pay gap.
David Morris (Morecambe and Lunesdale) (Con)
3. What discussions she has had with her counterparts overseas on the contribution of women and girls to the global economy.
The Minister for Women (Nicky Morgan)
In June I met many of my overseas counterparts at a global ministerial round table at the global summit of women held in Paris. This event brought together business, professional and governmental leaders to explore strategies and best practices in accelerating women’s economic progress worldwide. The most important task for the UK Government, as for the rest of the global community, is to build a stronger, fairer economy capable of delivering lasting prosperity. Women and girls are essential to the UK’s economic growth.
David Morris
I thank my right hon. Friend for that comprehensive reply. What issues were identified in those recent discussions?
Nicky Morgan
What was really interesting about going to the international summit—it was the same when I went to the Commonwealth summit in Bangladesh last year—was just how many of the same issues we share around the world in terms of enabling women to play their full part in economies. We talked about gender equality, parental leave, returners to work, supporting older workers, women’s access to finance and the importance of coaching, mentoring and role models in encouraging women to set up their own businesses.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Last week we had national women in engineering day. As the Minister says, only 7% of professional engineers in this country are women. What she did not say is that that is the lowest figure in Europe. In eastern European countries, the figure is 30% and countries such as China and India are far ahead of us. In her conversations, will she see what we can learn from other countries that are more successful?
Nicky Morgan
When I speak to counterparts overseas, I always engage with the lessons Britain can share and what we can learn from other countries. I am proud to represent Loughborough university, which has, I am told, the highest number of female engineers in the country. I understand that last night the hon. Lady was at the Royal Academy of Engineering awards, where more than one half the rising stars awards went to female engineers. There is, however, more progress to be made.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
We want young girls to achieve and to travel the world. Many young girls want to get into business and to travel. If they do not have science and maths as a basis for getting into business and getting good careers, they will not succeed.
Nicky Morgan
I entirely agree with the hon. Gentleman. I assume that he supports the EBacc and that he welcomes the work of the Under-Secretary of State for Education, my hon. Friend the Member for South West Norfolk (Elizabeth Truss), who I think has done more than anyone else in recent years to triumph and to talk about the importance of all students, particularly girls, studying science and maths. [Interruption.] I am glad to hear the hon. Gentleman was there supporting her, too.
Steve Baker (Wycombe) (Con)
4. What recent progress she has made on encouraging women to set up their own businesses.
The Minister for Women (Nicky Morgan)
The Government offer a wide range of support to women entrepreneurs—for example, the new enterprise allowance, mentoring, business advice and start-up loans. I also recently announced a £1 million challenge fund specifically to support women to move their businesses online and take advantage of superfast broadband. We know these measures are making a difference, with more women running their own businesses than ever before.
Steve Baker
Which particular areas have the Government identified where we can celebrate the success of women entrepreneurs?
Nicky Morgan
There are many different areas, but let me just pick one. The latest statistics from the Federation of Small Businesses show a dramatic increase in the number of women starting up businesses in the retail sector, and high streets across the country are seeing the benefit. Half of all small businesses established in retail in the past two years are primarily owned by women. That is in stark contrast with 20 years ago, when it was less than a quarter. That demonstrates the fundamental role that women are playing in helping the country to recover from recession. I hope that Members on all sides of the House will encourage retail businesses on their high streets to apply for the Future High Streets Forum’s Great British high streets awards.
Keith Vaz (Leicester East) (Lab)
Nobody doubts the Minister’s commitment to equality, but why are there so few black and Asian women sitting on the boards of our companies?
Nicky Morgan
It is a very good question. There is no doubt that more progress is needed. Earlier this week I was at an event for the 30% Club, which has been campaigning for a voluntary business-led approach, started by Lord Davies, to get more women in particular on the boards of companies. Part of that is about working with executive search companies and asking the chairmen of companies to think differently about appointments. Often the traditional and expected route of a CV is not something that women or others, particularly from black and minority ethnic communities, can put forward. We need to broaden the way in which chairmen of boards, and the boards themselves, appoint new directors.
Richard Graham (Gloucester) (Con)
6. The rise and rise of women in business is boosting growth and opportunity across the country. We have an inspiring role model in Gloucester, in the first female editor of the Gloucester Citizen in its 138-year history, Jenny Eastwood. The chair of the Gloucestershire local enterprise partnership, Diane Savory, is one of only three female chairs of the 39 LEPS. Will my right hon. Friend join me in recognising their achievements, and in encouraging both Jenny and Diane to do even more to promote new female “Gloucesterpreneurs” like Sarah Churchill of the award-winning Artisan Kitchen?
Nicky Morgan
I congratulate my hon. Friend on coining the new word “Gloucesterpreneurs”, and I hope that he will campaign vigorously under that slogan over the next few months. I am happy to join him in congratulating Gloucestershire Media on its Women in Business awards. Through the work of the Minister for Cities—my right hon. Friend the Member for Tunbridge Wells (Greg Clark)—and the Deputy Prime Minister, the Government are focusing on regional growth, city deals and the power of local enterprise partnerships, and on encouraging growth outside London. That is why I am particularly pleased to hear about the new female entrepreneurs in Gloucester who have set up businesses during the past few years.
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
5. What recent steps the Government have taken to encourage access for, and participation by, under-represented groups in (a) grass-roots and (b) professional sports.
ECOFIN
Baroness Morgan of Cotes Excerpts(9 years, 10 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Financial Secretary to the Treasury (Nicky Morgan)
A meeting of the Economic and Financial Affairs Council was held in Luxembourg on 20 June 2014. The following agenda items were discussed:
Draft general EU budget for 2015
The European Commission presented its draft for the EU’s general budget for 2015. The UK made clear that the European Commission should not be asking for a cash increase to the annual budget of almost 5% compared to the agreed 2014 annual budget at a time when countries across Europe continue to take difficult decisions to deal with deficits.
Parent Subsidiary Directive
Council agreed an amending directive to the parent subsidiary directive, which will effectively close a tax loophole whereby companies operating across Europe could exploit differences between member states in the tax classification of certain financial instruments in order to reduce their overall tax liability.
Current Legislative Proposals
The presidency provided an update on the ongoing work on financial services.
Level 2 legislation on bank contributions under Bank Recovery and Resolution Directive and the Single Resolution Mechanism
The Council discussed the preparation of implementing legislation that will determine the contributions to be paid by banks to resolution funds established under the directive on Bank Recovery and Resolution (BRRD) and the regulation on the Single Resolution Mechanism (SRM).
Code of Conduct (Business taxation)
Ministers endorsed the report on business taxation prepared by the code of conduct group, and adopted the report’s conclusions.
European Semester 2014
Ministers approved recommendations for 26 member states and the euro area as a whole, in preparation for discussions at European Council on 26 and 27 June, and subsequent adoption at ECOFIN on 8 July.
Implementation of the Stability and Growth Pact
Council adopted decisions bringing to an end excessive deficit procedures for six member states.
Ministers endorsed terms of reference on the review of the methodology for assessing effective action in the context of the excessive deficit procedure.
Joint ECB and Commission Convergence Reports (including euro area enlargement)
Euro area member states adopted a recommendation on the adoption of the euro by Lithuania, in preparation for discussions at European Council on 26/27 June, and formal adoption at ECOFIN on 8 July.
Office for Budget Responsibility (Manifesto Audits)
Baroness Morgan of Cotes Excerpts(9 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Financial Secretary to the Treasury (Nicky Morgan)
I beg to move an amendment, to leave out from “House” to the end of the Question and add:
“recognises the important role of the Office for Budget Responsibility (OBR) in producing independent forecasts for the economy and the public finances, and the value this has had in restoring trust in official forecasts; notes that the OBR is a newly independent institution and judges that it would not be appropriate to involve it in party political matters at its first election; notes the comments made by the Chairman of the OBR, Robert Chote, in a letter dated 15 January 2014 to the House of Commons Treasury Committee that ‘to embark on this exercise in a rush, or with insufficient resources, could be very disruptive to the parties and very damaging to the OBR’; and supports the view expressed in that letter that it is ‘better to consider these issues at the beginning of the next Parliament’.”
I am sorry that the shadow Chancellor is disappointed that I am opening for the Government in this debate. I must say that I have only been in this House for just over four years, but it is always true in politics that there is a first time for everything. This afternoon, the shadow Chancellor accused the Government of playing political games and called for cross-party consensus, so there is a first time for everything and we heard it here first. The most sensible thing that he said in his speech was to offer the hon. Member for Bolton West (Julie Hilling) a job as his speech writer, so let us hope that his future speeches are dramatically improved.
The shadow Chancellor made his views on this matter very clear to the House, so I will begin by answering him with equal clarity. The Government do not believe that the OBR should cost the Labour party’s, or indeed any Opposition party’s, manifesto commitments for the election next year.
Mr Andrew Love (Edmonton) (Lab/Co-op)
In an effort to keep the tone of consensus so admirably set by the shadow Chancellor, will the right hon. Lady accept that the amendment she is currently moving is selective in the quotes that it gives from the OBR, giving the strong impression that it is opposed to this, when clearly, it is in favour?
Nicky Morgan
As I will come on to say, I do not think that the quotations in the amendment or the amendment itself are in any way selective. The amendment sets out the reasons why the Government are not supporting the Opposition’s motion. It does so very clearly, and the OBR, in its letter, sets out very clearly the reasons why it is not at this stage ready to cost the Opposition parties’ manifestos in the way that is wanted.
Nicky Morgan
Let me assure the hon. Gentleman that I will keep to the consensual tone that the shadow Chancellor, often with great difficulty, tried to strike. The letter from Robert Chote makes it very clear that these issues would be better discussed at the start of the next Parliament. The reality is that, actually, the Opposition are looking for a fig leaf for their lack of an economic plan. That is the reality of the motion.
Ed Balls
I spoke to the head of the OBR last Friday, who told me that if the House agrees to proceed, with Government support, by the end of June, he would be content, comfortable and pleased to proceed with the reform this year. So when the Minister says that he is against this reform, could she just correct the record, because I believe that to be incorrect?
Nicky Morgan
It is all very well for the right hon. Gentleman to have a conversation with the head of the OBR, but we do not know the details of that conversation; if he is going to release a transcript, I would be very interested to read it. In fact, the letter dated 15 January makes it very clear that
“To embark on this exercise in a rush, or with insufficient resources, could be very disruptive for the parties and very damaging to the OBR.”
Is the right hon. Gentleman saying that he wants it to be damaging to the OBR? I do not think that he does.
Jesse Norman
On the topic of misinformation, does the Minister share my surprise that the shadow Chancellor should have misrepresented the position of the Institute for Government on this, when he suggested that it was giving up on the idea of a reform of this kind in this Parliament? In fact, what it said—it was an expert judgment— was that:
“More feasible than making any hasty change…would be to consider this option…during the five-year review…due to take place in 2015.”
Does she not share my view that the shadow Chancellor should be invited to correct the record on what he said about that?
Nicky Morgan
I thank my hon. Friend for that very good point. He has eloquently set out the misrepresentation by the shadow Chancellor of what was said by the Institute for Government. I am sure that perhaps through later speakers and in the winding-up speech the Opposition will have a chance to correct the record.
Nicky Morgan
I am going to make some progress.
As our amendment makes very clear, we are not suggesting that the issues that the shadow Chancellor’s proposals present are insurmountable, but we do believe very firmly that the independence and operation of the OBR is critical. We need to make sure that independence and impartiality is preserved, and as such, Parliament would need time to scrutinise the proposals properly and the OBR still needs time to establish itself fully as an independent fiscal watchdog before being drawn into the political heart of a general election.
Let me turn to the situation that the Government inherited in 2010. First, it is worth reminding the Chamber of exactly why and when the OBR came into existence. Hon. Members will need no reminding of the economic inheritance left to this Government by the Labour party, and on taking office we recognised the need to act quickly in the short term to establish our country’s economic credibility for the long term. The creation of the OBR was vital in that respect.
Back in 2010, our country urgently needed a full and independent assessment of just how bad the problem was because, again and again, the possibility of fiddling figures was tempting, and some would argue that that temptation had been responsible for some of the greatest fiscal policy mistakes of the past 40 years.
Sheila Gilmore (Edinburgh East) (Lab)
One of the slightly odd things about the Minister’s line of argument is that in its initial reports the OBR predicted that growth would be much faster than turned out to be the case, which suggests that the situation then was not quite as dire in the OBR’s view as the Minister is trying to suggest. What happened, surely, was that Government policies then crushed growth.
Nicky Morgan
I listen to the hon. Lady in debate after debate trying to reinvent fiscal history as we have seen it over the past four or five years. The motion before the House and the moves of the shadow Chancellor, are a desperate attempt to do that. As we have seen in the Labour party political strategy 2015, which was recently leaked to a Sunday newspaper, Labour has to rebuild its credibility on the economy. This debate is a blatant attempt to do just that.
Mr Newmark
I asked the shadow Chancellor this question but perhaps my right hon. Friend will answer. Does she find it strange that the shadow Chancellor, who said that he does not want to politicise things, did not see fit to bring this matter up for three and a half years? Suddenly the polls are saying that the Opposition have no economic credibility whatsoever, and he tables this motion and says, “Gosh. Why don’t we have all of our manifestos audited?” Is that a little strange?
Nicky Morgan
It would be a little strange, but the shadow Chancellor and the Opposition have woken up to the need to rebuild their fiscal credibility as the election approaches. Of course they had 13 years to introduce an Office for Budget Responsibility, but no move was made.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
Will the Minister confirm how much more the Government are borrowing compared with what they planned?
Nicky Morgan
A lot less than the Labour party would have done had it been in government—[Interruption.] I thank the shadow Chancellor for the applause; that is very kind.
The creation of the OBR has meant that for the first time we have a truly independent assessment of the state of the nation’s finances. As the Chancellor noted in his Budget this March, it is to its credit that
“we now take it for granted that the figures presented at this Dispatch Box are not fiddled but fair and independent.”—[Official Report, 19 March 2014; Vol. 577, c. 781.]
By giving the OBR power to produce the official forecast, we have managed to remove many of the risks of the past and put the UK’s fiscal policy at the cutting edge of international best practice. The IMF said that
“strong fiscal institutions can enhance the credibility of consolidation plans”
and the shadow Chancellor wrote to Robert Chote affirming:
“Over the last three years, the Office for Budget Responsibility has become an established part of the framework of British economic policy with broad-based and cross-party support.”
I am sure that—it is not often I say this—we all agree wholeheartedly with the shadow Chancellor. It is also worth reminding right hon. and hon. Members that when the OBR was set up four years ago, it was deliberately designed to ensure that it would be independent and could steer clear of political wrangling. That independence and impartiality is crucial.
Mr Marcus Jones (Nuneaton) (Con)
My right hon. Friend is talking about the credibility that the OBR is building. Bearing in mind the political knockabout we have had today, the bogus calls from the shadow Chancellor, and the clear party politics being played, does she think that it would damage the OBR’s credibility if we entered into the plan that the shadow Chancellor is offering?
Nicky Morgan
My hon. Friend is absolutely right. One big issue that the Opposition have not addressed is that if this change were to be brought in without proper consideration, it would mean changes to the way civil servants work. That is something we value greatly in this country, and we would have to consider that issue when scrutinising any legislation.
Nicky Morgan
I entirely agree with my hon. Friend, who, as usual, talks complete economic sense, unlike the Labour party.
As academic evidence noted at the time of the OBR’s creation, it is vital that there should not
“even be a scintilla of doubt…about the OBR’s independence and impartiality, as negative perceptions may undermine the OBR’s reputation, requiring a major effort at changing such perceptions”.
Unfortunately, the Opposition’s proposal not only presents a risk to that impartiality, but raises several difficult practical questions, which I shall go through briefly.
Clive Efford
The right hon. Lady will be aware that the shadow Chancellor wrote to the Chancellor last October. How many meetings have Ministers had with the chair of the OBR to discuss this issue in the intervening period?
Nicky Morgan
As the hon. Gentleman will know, meetings held by Ministers are published in the normal way. I cannot give him a specific number, but a list of meetings is published in the usual way.
Clive Efford
In that case, the right hon. Lady is indicating that these discussions have taken place and that there have been meetings at which this issue has been discussed. If so, did the chair of the OBR indicate whether, if a consensus could be reached before the end of June, he could deliver these budget assessments before the general election?
Nicky Morgan
I certainly did not indicate that. It is to be expected that Treasury Ministers will meet the head of the OBR and that various matters will be discussed, and we received a clear letter from him about the motion and the proposals before us today.
I want about to talk about the practical questions that would require much greater scrutiny in the future. First, as I mentioned, the Opposition do not seem to have assessed how their proposal might compromise the OBR’s ability to avoid being drawn into political debate or the real danger that such a change could undermine its perceived independence and, by extension, the credibility of the UK’s official forecasts.
Nicky Morgan
I will make some progress, because I have already given way to the hon. Gentleman twice.
Secondly, the Opposition do not seem to have acknowledged that think-tanks such as the Institute for Fiscal Studies and the National Institute of Economic and Social Research already have a long and distinguished track record in providing costings to parties in the run-up to elections. This, then, is another example of the Opposition asking the public—hard-working taxpayers—to stump up for something that already works effectively.
Mark Garnier
The Minister raises an important point about the cost, and it is worth bearing it in mind that the Dutch Central Planning Bureau, which does this for nine political parties in Holland, has about 350 members of staff. Has the Treasury estimated how much it would cost to resource it properly?
Nicky Morgan
I am not aware that we have done any estimates, but my hon. Friend is absolutely right about the Dutch Central Planning Bureau—the figure I have is 170, but he says 350—and the American Congressional Budget Office has 250 members of staff. The point is that the Opposition are asking hard-working taxpayers to pay more money to staff up the OBR quickly so that it can certify and sign off their economic plan, such as it is.
Andrew Gwynne (Denton and Reddish) (Lab)
The Minister mentions the experience in the Netherlands, so I draw her attention to the comments of Peter Riddell, the director of the Institute for Government:
“As experience in the Netherlands shows, such a system has helped improve the quality of policies and encourages a more informed public debate as parties become more open about the costs of their proposals.”
What is wrong with that?
Nicky Morgan
I will come to the overall principle of having the OBR look at parties’ manifestos, but how long has it taken the Dutch Central Planning Bureau to get to that stage? If the hon. Gentleman has the answer, I would be interested to hear it.
Thirdly, there are genuine practical considerations that must be weighed in the balance. The Opposition do not seem to acknowledge that rather than producing costings of Government policies, the OBR certifies the costings already produced. The OBR, which currently employs only 19 members of staff, plus three members of the Budget Responsibility Committee, would need significant additional resources and a range of specialist skills in order to take on such a role. Have the Opposition considered where it would recruit from?
Ed Balls
I am grateful to the right hon. Lady for giving way. I have discussed every issue she has raised with the head of the OBR, whose view is that they do not provide a reason not to proceed, so long as the Government support the proposal. The Minister is setting out why she and the Government do not support it, but they should not hide behind the head of the OBR. He is happy to proceed; it is she who is blocking it.
Nicky Morgan
As far as Government Members are aware, the letter of 15 January put the comments of the head of the OBR on the record. The right hon. Gentleman has not made any transcript of any such conversation available. We do not know what was discussed or what reservations were expressed by the head of the OBR.
Ed Balls
I spoke to the head of the OBR last Friday, in preparation for this debate. The right hon. Lady, who has stepped in for the Chancellor, is quoting a letter from January. Surely, to prepare for this debate, she would have spoken to the OBR in the days before. If he has changed his views since last Friday and contradicts what he told me then, I will withdraw my comments. Did the Minister speak to him; is he content to proceed, or has she not bothered to have the conversation?
Nicky Morgan
It is not a question of not bothering to have the conversation. If the right hon. Gentleman has had a conversation, where is the transcript and why has it not been released to the House? If he has a transcript, we would like to see it. We would like to know what the head of the OBR said about—[Interruption.] If I allow the shadow Chancellor to stand up again, will he tell us how many additional staff the head of the OBR said he would need to recruit, where he is going to find them from and how quickly they can be appointed? That is the premise of the right hon. Gentleman’s argument.
Ed Balls
Is the right hon. Lady really saying that I am misleading the House? I spoke to the head of the OBR last Friday, and he said to me that if the Government agree by the end of June, we can proceed and these obstacles can be overcome. In his view, the issues that the Minister is raising about resourcing and independence can all be resolved if she chooses to do so. Is she really saying that I am misleading—[Interruption.]
Madam Deputy Speaker (Dame Dawn Primarolo)
Order. Interventions must be brief; the point has been made. I call the Minister.
Nicky Morgan
Thank you, Madam Deputy Speaker.
We are back to old social government: no notes, no transcript, nothing. If the right hon. Gentleman has exchanged correspondence or if he has a transcript of the conversation, he should put it before the House if he wants to bring it into the debate.
Nicky Morgan
I will give way briefly to the hon. Gentleman, but then I want to make some progress.
Mr Love
I thank the right hon. Lady. There is a transcript. After the production of the letter of 15 January, Robert Chote appeared before the Treasury Committee, where we interrogated him on all these issues. He confirmed that if all these issues could be resolved, he would be content to go ahead.
Nicky Morgan
I prefer to take notice of comments that are on the record, such as the following from Robert Chote. On 4 April 2014—[Interruption.] The shadow Chancellor should listen. This is what the head of the OBR said:
“The Chancellor perfectly reasonably has said he doesn’t think this is the right time to do this… The reasons he has cited are it’s the first general election we’ve existed…you don’t want to throw the OBR as a relatively young body into a politically contested territory now.”
David Rutley
Having recruited teams—very sizeable teams—in the past, I know it takes time to recruit talent. These are not unskilled people—[Interruption.] No.
David Rutley
Thank you, Madam Deputy Speaker, for your guidance.
I was making the point that it takes time to recruit skilled individuals, particularly in economic forecasting.
Nicky Morgan
My hon. Friend is entirely right; it will take time to recruit skilled members of staff to carry out the project that the Opposition say the OBR should be able to do within a matter of months.
Jesse Norman
Is my right hon. Friend aware that Mr Chote also made it very clear that his job would be made additionally complicated by the run-up to a general election? Is she surprised that the shadow Chancellor comes here to present his views with no form of back-up, official record, transcripts or anything on which this House might properly rely?
Nicky Morgan
Nothing in politics surprises me any more, so I am not surprised that the shadow Chancellor has done that. I am just surprised that he thinks that the House is going to buy it.
Mark Garnier
I am grateful to the Minister for giving way yet again; she is giving up a great deal of her time. Robert Chote appeared before the Treasury Committee, and, while he did say that if he were pressured to an unbelievable extent the work would be possible, he made it very clear that he was not happy with the idea of having to press it too quickly. Moreover, the resources required would be astronomical, and it would be made up of temporary members of staff—
Madam Deputy Speaker
Order. Interventions are not opportunities for speeches. They are supposed to be brief, and Members in all parts of the House should adhere to that convention.
Nicky Morgan
Both my hon. Friend the Member for Macclesfield (David Rutley) and the member of the Treasury Committee, my hon. Friend the Member for Wyre Forest (Mark Garnier), have eloquently described the reservations expressed to the Committee by the head of the OBR. On page 7 of his letter of 15 January, paragraph 4 states:
“Resource constraints in the OBR and responsible departments would argue for a longer process than that undertaken ahead of Budgets and Autumn Statements, so proposals might be required two or three months ahead of manifesto publication.”
Mr Chote went on to say:
“a May election date with April manifesto publications would imply that the work of certifying manifesto costings would need to be undertaken alongside the Budget and preceding Autumn Statement, when the OBR and responsible departments are at or near their peak workloads.”
In that part of the letter, he was referring mostly to resources.
Ed Balls
I spoke to the head of the OBR. He believes that if he is to cost manifestos in time, he will need to start in the autumn, he will need agreement by the end of June, and he will need the details to have been worked out by the end of August. The Minister is obfuscating. It is she who is blocking this, not the head of the OBR.
Nicky Morgan
Let me say for the last time that if the right hon. Gentleman wanted to pray in aid evidence from a conversation that he had last week, he should have put it in writing and presented it to the House, or placed it in the Library.
If we ask the OBR to recruit additional staff, what will they do between elections? I do not know whether Labour Members have considered the fact that what they propose would involve a radical change in the rules governing civil service contact with the Opposition. I do not know whether they have fully explored the primary legislation that would be required to make this happen, just as I do not know whether they have considered how the demands of Opposition parties would be balanced against other Government priorities.
Jacob Rees-Mogg
I am extremely grateful to my right hon. Friend for giving way, because I think that the shadow Chancellor has just proved the Government’s case. These references to private conversations are politicising the OBR in exactly the way that frightens the Government. I think that the shadow Chancellor is hoist with his own petard.
Nicky Morgan
As always, my hon. Friend has summed up the position brilliantly and eloquently. I was particularly impressed when he intervened on the shadow Chancellor and forced him to admit that the purpose of the Opposition’s proposal was to stop the shadow Cabinet making spending commitments left, right and centre.
I was referring to other Government priorities. I am thinking of, for example, Budget preparations. The time when those preparations are being made is one of the busiest times of the year for the OBR, during which specialist and other staff resources are already occupied.
As I have already said today, what I will not do is stand here and say that the problems are insurmountable, or that a solution could not be found in future. However, if we want to ensure that the OBR’s independence and influence are preserved, the issue merits much fuller and much more careful consideration than is represented by the Opposition’s proposals. That brings me to one of the most important points. We need to remember that the OBR is a very young organisation. We believe that it is doing an excellent job—as, clearly, does the shadow Chancellor—but it has not, as yet, been subject to any major review.
It was announced in last year’s autumn statement that, as required by legislation, the OBR would launch an external review of its publications during the current year, and that its findings would be published in September. The Government have also announced that following the outcome of that review, and following the general election, they will hold their own review of the OBR. I think—I am sure other Members will agree—that until those reviews of the OBR’s current responsibilities have been completed, we should not throw extra responsibilities at it. I consider it sensible for us to wait until after the OBR’s review, our review, and the OBR’s first general election before considering this issue further.
Unlike the Labour party, I do not want to pre-empt the OBR’s review, but I think it safe to say that, through its creation, the coalition has changed the way in which Budgets are made for ever and has created an independent office that has restored public confidence in the numbers that underpin the Budget. In its first four years, the OBR’s independent forecasts have supported the credibility of our long-term fiscal plans. Between now and the general election, the OBR should remain focused on doing that job. It should remain focused on ensuring that, as we fix the mess left to us by the Labour party, the numbers underlying our long-term economic plan are correct. That plan is making a real difference.
Nicky Morgan
No.
Inflation is at its lowest level in four and a half years. Employment is at its highest level ever. Just as our deficit is shrinking, our economy is growing, with the recovery balanced across all the main sectors, because of a long-term economic plan being taken forward by the Government and being properly scrutinised by an independent, impartial body. That is how it should stay for the next year. That is why I ask hon. Members to support our amendment.
Oral Answers to Questions
Baroness Morgan of Cotes Excerpts(9 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Nick de Bois (Enfield North) (Con)
6. What recent assessment he has made of the effectiveness of his long-term economic plan.
The Financial Secretary to the Treasury (Nicky Morgan)
The Government’s long-term economic plan is working, and the UK is expected to grow faster than any other G7 country this year. Inflation is below target, the deficit has been reduced by more than a third since 2009-10, and employment is at record levels, but the job is not yet done, and the biggest risk now to the recovery would be abandoning the plan that is delivering a brighter economic future.
Nick de Bois
Evidence of the Government’s long-term economic plan was on display when the Chancellor visited Enfield to see the Meridian Water site, which is delivering jobs, houses and transport infrastructure. However, under this Government, will the Minister look at the opportunity for revisiting the northern gateway access road, which links the M25 with this vital economic area?
Nicky Morgan
My right hon. Friend the Chancellor has said that, yes, he is very happy to look at it. As he said when he visited, infrastructure investment is an important part of our long-term economic plan. I know that my hon. Friend has been working for many years on this scheme. He has built a coalition of partners locally and this is important for the Lee valley. The Government will always look at important infrastructure investment to bring jobs and growth to all parts of our economy.
Helen Jones (Warrington North) (Lab)
In my constituency, 20% of people in work earn less than the living wage and others are trapped in part-time jobs and on zero-hours contracts. Why do the Government keep trumpeting a supposed recovery that, for the first time ever, has left more people in poverty in work than out of work?
Nicky Morgan
I am sure that the hon. Lady will welcome the fact that there has been a 24% fall in her constituency in the number of young people on jobseeker’s allowance, and the long-term economic plan is for all people. My hon. Friend the Exchequer Secretary has always talked about the rise in the personal allowance, and it is this Government, as we have already heard, who are taking action on zero-hours contracts. The last Government had 13 years to tackle them and failed to do so.
Mr Philip Hollobone (Kettering) (Con)
The Minister will know that Kettering is very much middle England at its best. With a 2,500 increase in local jobs since the last election, does that not demonstrate that plan A is most definitely working, and there is absolutely no need for a plan B?
Nicky Morgan
I know Kettering very well as I pass it on the Midland main line up to my constituency twice a week. My hon. Friend is absolutely right to say that the increase in jobs shows that the Government’s long-term economic plan is working. As I said, the job is not yet done, there are always risks to our economy, and we need to build a sustainable, strong economic recovery that benefits everyone, including everyone living in Kettering.
Jonathan Ashworth (Leicester South) (Lab)
Does the right hon. Lady agree that the Chancellor promised to balance the books, but is going to fail; he promised to deal with debt, but is failing; he promised to maintain triple A ratings, but he failed; and when it comes to the jobs market, as my hon. Friend the Member for Warrington North (Helen Jones) said, it is increasingly characterised by low pay, squeezed wages and zero-hours contracts?
Nicky Morgan
My right hon. Friend the Chancellor promised to fix the British economy, which is what we are doing. The hon. Gentleman might remember that the last Chancellor promised to abandon boom and bust, and we know where that got us.
Kerry McCarthy (Bristol East) (Lab)
8. What recent assessment he has made of the effect of the Government's policies on its commitments under the Child Poverty Act 2010.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
10. What recent assessment he has made of the level of child poverty.
The Financial Secretary to the Treasury (Nicky Morgan)
The Government are committed to our goal of ending child poverty in the UK by 2020. We are determined to tackle the root causes of poverty, not just the symptoms. Our draft child poverty strategy 2014-17 sets out our approaches, based on robust published evidence review. Work remains the best route out of poverty. We are making work pay and tackling low pay through our reforms to the welfare and tax systems. Universal credit, for example, will lift as many as 300,000 children out of poverty.
Kerry McCarthy
But this week the largest ever study of poverty in the UK, the Poverty and Social Exclusion project led by the university of Bristol, was published. It found that full-time work is not sufficient to keep families out of poverty and that the majority of children who suffer multiple deprivations live with both parents, at least one of whom is working, in small families, with only one or two siblings. When will the Government accept responsibility for the rising tide of in-work poverty and do something to help people who are trying their hardest but still struggling to get by, including the children who are living in those families?
Nicky Morgan
We have set out, as I have already said, a clear commitment by this Government to end child poverty by 2020. The hon. Lady’s question shows that there are a number of root causes of child poverty. Incomes, of course, are a very important part of that. We are working to raise the income of poor children’s families by helping them get into work and making work pay, and she will appreciate the rise in the national minimum wage. We are also raising educational outcomes for poor children, which is equally important.
Luciana Berger
But nearly 30% of children in my constituency, Liverpool Wavertree, are living in poverty, and many of those children have parents who are in work. This is the highest level in five years. Is the Minister embarrassed by her Government’s record on child poverty? What exactly is she going to do about it?
Nicky Morgan
Five years ago there was a Labour Government in power, and I am sure the hon. Lady will welcome the fact that there has been a 21% fall in jobseeker’s allowance claimants in her constituency. I am sure she will also welcome the rise in the national minimum wage that this Government have overseen.
Paul Maynard (Blackpool North and Cleveleys) (Con)
16. One of the key challenges to tackling child poverty in my constituency is the resilience of low income families to sudden financial shocks. The answer, surely, is to improve saving levels. What can the Minister do to improve the opportunities for families to save more?
Nicky Morgan
We have seen that the savings ratio has gone up under this Government, but my hon. Friend is right. The causes of poverty are many and various, but the important point is getting people into work. The troubled families programme, which this Government have introduced and overseen, has shown that getting an adult in a workless household into work has a transformative effect, alongside steps such as increasing savings. Getting people into work is the most important thing we can do.
Charlie Elphicke (Dover) (Con)
Is the Minister aware that child poverty, wider poverty and inequality rose in the previous Parliament and have been declining so far in this Parliament, as has the number of people who struggle to pay their food bill, according to OECD figures?
Nicky Morgan
My hon. Friend is right about the figures. We remain committed to continuing the fall and to eradicating child poverty by 2020. Our draft strategy sets out how we intend to achieve that. Children are three times more likely to be in poverty if they live in a workless household, which is why work remains the best route out of poverty.
Ian Lucas (Wrexham) (Lab)
9. What steps he is taking to promote private sector investment in the construction industry.
Kate Green (Stretford and Urmston) (Lab)
T3. The rate of employment of disabled people is approximately 30% lower than that of non-disabled people, and 650,000 more disabled people are required to look for work as a result of welfare reforms since 2008. The Chancellor of the Exchequer has spoken of his ambition of achieving full employment. Is he confident that the Government have a strategy sufficient to close this gap, as that will be essential to achieving that goal?
The Financial Secretary to the Treasury (Nicky Morgan)
The Department for Work and Pensions, and the Ministers responsible for disabilities and for employment, launched a strategy last December to help those with disabilities to find work. What this Government have not done is what the previous Government did, which was to say to people, “We don’t think that you can work.” We want to empower people to work, and schemes such as Access to Work are all about doing that.
John Pugh (Southport) (LD)
T6. May I congratulate the Chancellor on his excellent HS3 proposal? It follows on from an equally visionary plan from the Deputy Prime Minister—in the previous Government. How does the Chancellor’s plan exceed Lord Prescott’s ambition?