Oral Answers to Questions

Andrew Jones Excerpts

Tuesday 18th July 2017 Commons Chamber

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

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

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

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

[Ian C. Lucas]

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

[Andrew Jones]

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

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

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

[Andrew Jones]

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

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

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

[Andrew Jones]

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

[Vicky Ford (Chelmsford) (Con)]

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

[Mims Davies (Eastleigh) (Con)]

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

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

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

[Vicky Ford]

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

[Andrew Jones]

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

[Mims Davies]

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

[Andrew Jones]

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

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

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

[Andrew Jones]

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

[Kirsty Blackman (Aberdeen North) (SNP)]

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

[Andrew Jones]

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

[Kirsty Blackman]

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

[Andrew Jones]

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

[Bob Stewart (Beckenham) (Con)]

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

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[Alex Chalk (Cheltenham) (Con)]

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

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

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

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

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

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

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

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

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

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

[Christian Matheson]

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

[Andrew Jones]

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

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

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

[Andrew Jones]

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

[Mr Speaker]

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

[Kelvin Hopkins (Luton North) (Lab)]

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

[Andrew Jones]

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

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

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

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

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

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

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

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

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