European Union (Withdrawal) Bill

Debate between David Hanson and Chris Leslie

Committee: 5th sitting: House of Commons
Wednesday 6th December 2017 Commons Chamber

[Mr Leslie]

New clause 17 relates to clause 12 —[Interruption.]

[The Temporary Chair (David Hanson)]

Order. Will Members leaving the Chamber please do so quietly so that the hon. Member for Nottingham East (Mr Leslie) can continue?

[Mr Leslie]

Clause 12 relates to the financial provisions of Brexit. New clause 17 seeks to clarify that a specific legislative instrument is needed to authorise payment in relation to a withdrawal agreement settlement and that that can be permitted only if approved by a resolution of the House of Commons.

It is important that we do not glide by some of the big aspects of Brexit. It has massive ramifications, one of which is the fabled “divorce bill” as it is sometimes characterised. Some people say that it is simply the settlement of obligations and liabilities, but phase 1 of the discussions, which the Government have agreed with Michel Barnier to conduct before we move on to phase 2 on the framework of future trade relations, has to include a financial settlement. It is therefore important that Members of Parliament understand it, approve it and enter into the arrangement with their eyes wide open.

We are not considering small sums of money. Last week, it was widely reported that the financial deal had been made, but we can never be absolutely sure about such reports. It was also reported that the Prime Minister had a deal with the Republic of Ireland and the rest of the EU on the Northern Ireland border, and we all know what happened to that in recent days. However, it feels as though Ministers, the European Commission and others have sort of agreed a financial settlement, so last week we tabled an urgent question to press the Government. The Chief Secretary to the Treasury responded to it, but unfortunately she was a bit coy about the divorce bill. We were not allowed to know how much it would be. We were told that it was still part and parcel of the negotiation process, and how dare we ask? We were also told that it was unreasonable of us to intrude on sensitive negotiating arrangements. It seemed peculiar to me that it was all right for the British Government to tell Michel Barnier, Jean-Claude Juncker and the European Commission how much HM Government and British taxpayers were prepared to pay, but somehow Members of Parliament, never mind the British public, were not grown up enough to know the real sum.

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[The Temporary Chairman]

Order. The right hon. Lady must make short interventions. If the hon. Member for Nottingham East (Mr Leslie) wishes to give way, he can do so again, but the right hon. Lady must make short interventions.

[Mr Leslie]

The right hon. Lady was making an incredibly important point, Mr Hanson. It is not just a question of the divorce bill—the financial settlement—and it is not just a question of the billions to be set aside for Brexit preparations. The bigger issue that the right hon. Lady was raising is what will happen in a dynamic economy if our trade opportunities shrink, and if obstacles and tariffs are put in the way. This is not just our assessment, or opinion. The Chancellor himself published a table in his Red Book which showed what he and the Office for Budget Responsibility expected to happen to tax receipts over the next few years. He anticipates that by 2021 tax receipts will have fallen by not just £10 billion or £15 billion, but by £20 billion. That is £20 billion less revenue for the Exchequer to spend on the vital public services we want. This is a triple whammy, therefore, in terms of the costs of Brexit, and it is a surprise to many members of the public, who were told precisely the opposite.

Finance (No. 2) Bill

Debate between David Hanson and Chris Leslie

Wednesday 17th April 2013 Commons Chamber

[Chris Leslie]

It is absolutely true. We have to face facts. We have to put direct support into housing supply. These rather opaque and indirect attempts to manipulate the public accounts with complicated and convoluted guarantees and underwriting arrangements do not communicate to the wider public who might be consumers of housing—looking to buy their first home or to rent differently. The Government must be far more direct about this approach.

It is clear that the Government’s ideological aversion to supporting the construction of affordable housing still inhibits recovery of the broader housing market. That is why housing starts fell 11% over the last year to 98,000 and why the number of private and local authority home starts was down, and the number of housing association home starts, at just over 19,000, was the lowest for eight years. There are 136,000 fewer home owners than when the Government came to power, and of course the youngest are hardest hit. Apparently, the average age of a first-time buyer is now 37.

We have doubts and questions about whether this Help to Buy scheme will work. Have the Government thought it through sufficiently? There are plenty of organisations focusing on housing policy. The first-time buyers pressure group PricedOut said that the Government should assist construction of more houses where there are chronic shortages. That is absolutely true. However, there is a point about whether help should no longer be targeted at lower and middle-income families, with the cap of £60,000, and used to support first-time buyers. We need from Ministers a thorough analysis of what is happening, particularly how many higher rate, or additional rate taxpayers will be taking advantage of the new scheme. What analysis have they made of that?

[Mr David Hanson (Delyn) (Lab)]

May I add a further inconsistency to those that my hon. Friend has mentioned? Under the current scheme, a single person could buy a three-bedroom house with a taxpayer subsidy for the mortgage, yet at the same time a social tenant who is single and wants a three-bedroom house is being penalised.

[Chris Leslie]

Never let it be said that this Government have any consistency whatsoever, but perhaps that is where we should turn to the Liberal Democrats—or the Liberal Democrat as I will henceforth call the hon. Member for Bristol West (Stephen Williams).

There is another part of the Help to Buy scheme. We have talked about the equity loan aspect. The second part is the mortgage guarantee, supposedly designed to help individuals without a large deposit; they may have only 5% and are looking for a 95% mortgage from participating lenders. The Government say they will guarantee up to 15% of the mortgage in an attempt to encourage banks and building societies to offer loans to borrowers with small deposits.

Interestingly, the scheme is not starting in April; it will not start until January 2014. I hope Ministers can explain why they picked that date, because there is a potential risk of forestalling. We may have constituents who are wondering whether they should get on the housing ladder to help their family, or who are in the construction sector wanting to supply new homes. Is there not an incentive for many potential home purchasers to wait—to hold off and not enter the housing market until January next year? Paradoxically, further problems might emerge as a result of the scheme.

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[Chris Leslie]

I live in hope that if not Ministers, the Minister’s officials will try to apply sticking plasters to bodge the thing together, but it is a real mess. Ministers need to go back to the drawing board and think more directly about the support that can be provided for affordable housing.

[Mr Hanson]

As I understand it, the scheme in question is administered by the Department for Communities and Local Government, so it might even be possible for a resident of, say, Chester to buy a second home in Wales under the scheme; for a resident of Berwick to buy a second home in Edinburgh; or for a resident of Liverpool to buy one in Belfast. Has that been thought through by the Government?

[Chris Leslie]

I doubt that very much. I know that will shock my hon. Friends, but I suspect the Government have not thought about that.