Oral Answers to Questions

Baroness Morgan of Cotes Excerpts

Tuesday 28th January 2014 Commons Chamber

[Stuart Andrew (Pudsey) (Con)]

2. What assessment he has made of the effect of freezing fuel duty on the price of petrol.

[The Economic Secretary to the Treasury (Nicky Morgan)]

My right hon. Friend the Chancellor confirmed in the 2013 autumn statement that fuel duty will be frozen for the remainder of this Parliament. As a result of this Government’s actions, average pump prices are now 13p per litre lower than if the Government had implemented the previous Government’s fuel duty escalator and it will be 20p per litre lower by the end of this Parliament.

[Stuart Andrew]

Does my hon. Friend agree that it is only because of the difficult decisions that the Government have taken on deficit reduction that they have been able to provide this action on fuel duty? Does she further agree that if these difficult decisions on spending had not been taken, not only would it have been impossible to help motorists, it would have put at risk the economic recovery?

[Nicky Morgan]

My hon. Friend is entirely right. We all know of many businesses across our constituencies, as well as households, who rely on their vehicles—their lorries and vans—to get about. By 2015, the average motorist will be saving £680 a year and the average small business with a van will be saving £1,300 a year in their fuel costs.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

Will the Minister explain to my rural constituents in a low-wage economy area why of the 10 areas where the Chief Secretary has endeavoured to get a special rural fuel discount scheme into place, eight are in Lib Dem constituencies and two are in the hon. Gentleman’s constituency? Is that some kind of coincidence?

[Nicky Morgan]

The point is that there were very strict criteria relating to pump price thresholds, cost of transporting fuel and population density. That is how the list was arrived at and that is why the hon. Gentleman’s constituency was not included.

[John Thurso (Caithness, Sutherland and Easter Ross) (LD)]

On that latter point, I commend the Government for listening in a way that the Labour party never did and I commend the scheme, but may I draw to my hon. Friend’s attention one anomaly, namely the petrol pump at Bettyhill? It meets all the criteria of the others, but because of an anomaly in postcodes will not be included. Is there anything at all that can be done to help that one station?

[Nicky Morgan]

As I mentioned before, very strict criteria were laid down by the EU. The scheme was brought in by this Government, not by the last Government, to help rural areas. My hon. Friend might like to consider campaigning for the postcodes to be changed.

[Mr David Hanson (Delyn) (Lab)]

Rural north Wales has the highest petrol prices in the United Kingdom but is not included in the rural discount. Is that because we made the mistake of not electing a single Liberal Democrat Member of Parliament?

[Nicky Morgan]

The right hon. Gentleman seems to have forgotten that if the last Labour Government had continued in office prices would have been even higher, because it is this Government who reduced fuel duty.

[Alun Cairns (Vale of Glamorgan) (Con)]

3. What recent fiscal steps he has taken to support small businesses.

--- Later in debate ---

[Andrew Griffiths (Burton) (Con)]

9. What assessment has he made of the effect on the brewing industry of the reduction in beer duty announced in the 2013 Budget.

[The Economic Secretary to the Treasury (Nicky Morgan)]

The Government reduced the tax on a typical pint of beer in the Budget 2013, and ended the beer duty escalator. A British Beer and Pub Association survey suggests that 76% of its members have increased investment, and 61% are employing more staff following the beer duty changes.

[Andrew Griffiths]

On Friday I will open a new bottling plant at Marston’s brewery in my constituency—a £7 million investment made possible because of the Chancellor’s decision to cut beer duty. In the past six months, beer sales have gone up for the first time in 10 years, and 120 million extra pints have been sold. Does the Minister agree that the Chancellor was right to cut beer duty to get growth, and can we have the same again please, George?

[Nicky Morgan]

I thank my hon. Friend very much indeed. He ran a magnificent campaign before the Budget last year in representing Burton, which I understand is the home of British brewing. By ending the beer duty escalator at Budget 2013, it is already assumed in the public finances that beer duty will rise by less than other alcohol duties this year. Pubs and brewers will also benefit from other actions that we have taken to support businesses, including support with business rates and ending employer national insurance contributions for those under 21, but I hear what my hon. Friend says.

[Mr David Heath (Somerton and Frome) (LD)]

Knowing that the Government would always wish to recognise and celebrate cultural diversity, will the Minister ensure that anything done for beer is also done for cider?

[Nicky Morgan]

I hear the hon. Gentleman’s request. I am sure he is aware that in the 2010 Budget the Government reversed the previous Government’s 10% above-inflation rise on cider duties, and as he will know, the Treasury keeps all duties under review.

[Yvonne Fovargue (Makerfield) (Lab)]

10. What recent assessment he has made of the level of child poverty.

[The Economic Secretary to the Treasury (Nicky Morgan)]

Estimates of child poverty are published in the National Statistics “Households below average income” series. The Government remain committed to ending child poverty, but strongly believe that looking at relative income in isolation is not a helpful measure to track progress towards that.

[Yvonne Fovargue]

There are now more than 1,000 food banks throughout the country, and the Brick food bank in my constituency is forced to give out cold food packs and kettle packs to some working families who cannot afford to eat or heat. Will the Minister explain why the number of working families with children in relative poverty is increasing?

[Nicky Morgan]

I thank the hon. Lady for her question. As a Member of Parliament who has held a number of surgeries in my local food bank in Loughborough, I know that there is a variety of different reasons for people having to rely on food banks, and I am sure she will recognise that, under this Government, jobcentres are now able to direct people to food banks. Work remains the best way out of poverty, and the number of children living in workless households has fallen by more than 100,000 since the Government came to office.

[Mr Brooks Newmark (Braintree) (Con)]

Does the Minister agree that Labour’s abolition of the 10p tax rate drove more households into child poverty? By raising the tax threshold to £10,000 and creating more jobs than ever before, this Government are reducing child poverty.

[Nicky Morgan]

At the heart of my hon. Friend’s question is the fact that, as I said, work remains the best way out of poverty, and the number of children living in workless households has fallen since this Government came to office. He is absolutely right, and we must do more to get people into jobs and therefore benefit from changes to the personal allowance threshold.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

16. The Institute for Fiscal Studies estimates that an extra 1.1 million children will be living in poverty by 2020 as a direct result of this Government’s economic policies. Today, research from Demos shows that children living in poverty are also less likely to do well at school. What will the Government do to prevent the multiple and lifelong effects of children living in poverty?

[Nicky Morgan]

On poverty projections, in October 2012 the IFS suggested that the number of children in relative poverty would fall by 100,000 in 2010-11, but in fact it fell by 300,000. If the hon. Lady wishes to talk about educational attainment, I am sure she will join me in welcoming the news yesterday that thanks to strong reforms of the education sector by the Secretary of State for Education, more schools are now offering better education than under the previous Government.

[Mr Julian Brazier (Canterbury) (Con)]

Does my hon. Friend agree that, as the Centre for Social Justice has argued for a long time, we must tackle the underlying drivers of poverty—family breakdown, illiteracy and innumeracy, substance abuse among parents and so on—as well as put a welcome emphasis, as she has done, on getting people back into work?

[Nicky Morgan]

I entirely agree with my hon. Friend. The Government remain committed to ending child poverty by 2020 and to the Child Poverty Act 2010. We understand that poverty is about more than income alone. As he has said, we need to focus on the root causes, one of which is poor mental health, in which I have taken a particular interest.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

11. What recent assessment he has made of the effect of domestic energy prices on consumer price inflation.

[The Economic Secretary to the Treasury (Nicky Morgan)]

Consumer price inflation was 2% in December. That is the first time it has been at or below the 2% target since November 2009. It is well below half the peak of 5.2% in September 2011. The Office for Budget Responsibility is responsible for producing independent economic and fiscal forecasts, and factored in energy prices in the latest forecasts for consumer price inflation.

[Stella Creasy]

Given what the Minister says about inflation, in plain English, can she tell us whether she accepts that the energy bills of my constituents and those of all hon. Members have gone up this winter? Does she think that is good or bad for them and our economy?

[Nicky Morgan]

I thank the hon. Lady for her questions. Yes, energy bills have gone up, but how come she voted for a decarbonisation target last autumn that would have added a further £125 to all average bills?

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

Will my hon. Friend look at the impact of domestic energy prices on off-grid customers and try to find common measures to enable them to access lower energy prices?

[Nicky Morgan]

I certainly will do so. I am sure my hon. Friend welcomes the moves the Government have made so far—in the autumn statement 2013—to cut £50 off household bills. Of course, we would like to do more, working with the companies.

[Mrs Linda Riordan (Halifax) (Lab/Co-op)]

23. What assessment has been made of the impact on fuel poverty of the proposed changes to the carbon emissions reduction obligation funding, which will prevent insulation work from being carried out on hard-to-treat cavity properties, particularly in the north?

[Nicky Morgan]

I am interested to hear the hon. Lady’s question, as she also voted for the decarbonisation target that would have added £125 to bills. However, I am sure she welcomed the winter fuel payments made to 14,000 people in her constituency in winter 2012-13. This Government are on the side of helping people to deal with the rising cost of their fuel bills. In autumn statement 2013, we extended the energy company obligation target, but we have certainly not given up on it.

[Mr Aidan Burley (Cannock Chase) (Con)]

13. What assessment he has made of the level of recent job creation in the private sector.

--- Later in debate ---

[Andy Sawford (Corby) (Lab/Co-op)]

T8. Her Majesty’s Revenue and Customs is investigating 12 employment agencies in my constituency for underpayment of the minimum wage. Two investigations have been concluded, penalties imposed and money repaid to local workers, but local people simply do not understand why the Government will not name and shame those two agencies. I think the Government are wrong. Will they reconsider?

[The Economic Secretary to the Treasury (Nicky Morgan)]

I think the hon. Gentleman raised this topic in the debate on the national minimum wage. I am very happy to take this away and to have a conversation once I have had a chat with Treasury officials.

[Harriett Baldwin (West Worcestershire) (Con)]

T4. This time last year, the shadow Chancellor said that the economy would get worse. Can I lob the following question to the Chancellor and ask him how that prediction turned out?