Oral Answers to Questions

David Gauke Excerpts

Tuesday 29th November 2016 Commons Chamber

[Mr David Burrowes (Enfield, Southgate) (Con)]

2. What fiscal steps he is taking to increase housing supply.

[The Chief Secretary to the Treasury (Mr David Gauke)]

The Government are committed to supporting housing supply and ensuring that the housing market works for everyone. Good progress has been made since 2010, with housing supply now at an eight-year high. In October, my right hon. Friend the Communities and Local Government Secretary launched a £3 billion home building fund to provide loans to house builders to unlock over 200,000 homes. However, the scale of the challenge requires us to go further, which is why my right hon. Friend the Chancellor announced that the Government will invest £2.3 billion in a new housing infrastructure fund that will deliver up to 100,000 homes, and will invest an additional £1.4 billion to deliver 40,000 new affordable homes.

[Mr Burrowes]

Will the autumn statement’s £3.15 billion boost for London housing be flexible enough to meet the aspirations of both Londoners wanting a home they can afford to rent or buy and London’s homeless, whose complex needs include the need for supported housing?

[Mr Gauke]

I can provide that reassurance to my hon. Friend. The Government are committed to supporting housing supply and ensuring that the housing market works for everyone, including Londoners. London’s £3.15 billion affordable housing settlement will deliver over 90,000 affordable housing starts by 2020-21 across a range of tenures, including homes for low-cost home ownership and submarket rent, as well as supporting housing for Londoners with particular needs, and of course London will also benefit from the housing infrastructure fund.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

More people in my constituency rent privately than own their own homes and for most of them ownership is a distant or impossible dream. Are the Government considering looking at the supply of private rented housing on longer tenures, perhaps with rent guarantees, and possibly using tax reliefs or other mechanisms the Treasury has in its armoury, to encourage landlords to provide those longer-term tenancies and better security for the many private rented sector tenants?

[Mr Gauke]

The Government are taking action to ensure that we build more homes. There is a need for flexibility in terms of tenure, which was at the heart of my answer to my hon. Friend the Member for Enfield, Southgate (Mr Burrowes), but last week’s autumn statement included a series of measures that will help to ensure that we are building more homes in this country, which is what we need.

[Mr Philip Hollobone (Kettering) (Con)]

Why is there such a large gap between the number of planning permissions and the number of housing starts, and what specifically can the Government do to close that gap?

[Mr Gauke]

There has consistently been a gap. What is important is that there is certainty of supply. We need to ensure that we have the right planning system in place and the right fiscal support, and that is what the Government are determined to deliver.

[George Kerevan (East Lothian) (SNP)]

In last week’s autumn statement, the Chancellor raised the tax on house insurance by 20%. How is that supposed to help first-time home buyers to get access to housing?

[Mr Gauke]

We were very clear that the 2% increase in insurance premium tax was a revenue-raiser that enabled us to introduce the measure on changing the taper for universal credit, which increases the incentives to work. We believe that was the right course of action, but if we look at the autumn statement, and indeed the announcement made at the Conservative party conference, what is very clear is that this Government are committed to ensuring that we build more homes, which is what the public rightly expect.

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[Jo Churchill (Bury St Edmunds) (Con)]

8. What steps he is taking to support regional infrastructure development.

[The Chief Secretary to the Treasury (Mr David Gauke)]

In the autumn statement, we prioritised additional high-value investments, specifically in infrastructure and innovation, that will directly contribute to raising Britain’s productivity. The Chancellor announced a new national productivity investment fund of £23 billion to be spent on housing, transport, digital communications and research and development over the next five years. Local enterprise partnerships will receive £1.8 billion of growth deal funding. This will go towards the projects needed to bring about economic growth in local areas, including new homes, transport improvements and supporting businesses and people to access the skills they need.

[Jo Churchill]

I welcome all those measures to boost productivity and particularly to turn attention to infrastructure and the specifics for the east of England given yesterday. However, given the strategic importance of the A14 trunk road linking Felixstowe port with Cambridge and the rest of the country, as well as its significance to 80% of businesses in Suffolk, does the Minister agree that further improvements to a road that he knows well are vital to productivity?

[Mr Gauke]

My hon. Friend is right—it is a road that I know well. We certainly agree that the A14 is a critically important part of the network. We are investing £1.5 billion for a major upgrade to cut congestion on the A14, including a new 21-mile road between Huntingdon and Cambridge, and only yesterday my right hon. Friend the Transport Secretary was able to go there to witness the start of the work.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

24. Is not the simple truth that more than half the money announced for England will go to projects in London and the south-east and that, despite a £50 million shortfall in NHS funding by 2017 and a £130 million shortfall in social care funding by 2020, the Chancellor, like his predecessor, has short-changed Birmingham and the west midlands?

[Mr Gauke]

No, that is not true. There is a balanced package and all parts of England will benefit from the transport measures. The Barnett consequentials should mean that Scotland, Wales and Northern Ireland can also benefit in this area. A specific announcement about the midlands hub was made in the autumn statement and there is more to be said about the midlands engine. This is a Government who are determined to ensure that the whole country benefits from economic growth.

[Antoinette Sandbach (Eddisbury) (Con)]

17. Can the Minister assure me that digital infrastructure is as important as road infrastructure and that part of the £1 billion broadband fund will be allocated to address the productivity gap in rural areas—in particular, to help shops such as the hollies farm shop in my constituency, which has three business lines and 2 megabits of speed?

[Mr Gauke]

My hon. Friend highlights the fact that digital must be key to improving productivity. That is why a £1 billion package was announced in the autumn statement. There was also specific help for rural areas through rural rates relief. Our ambition is clear: to provide the best digital infrastructure we can for urban and rural areas.

[Rachel Reeves (Leeds West) (Lab)]

In table 4.21 of the report Office for Budget Responsibility’s it forecast that the Government will underspend on infrastructure by £15 billion in the next five years—two thirds of the additional money announced by the Chancellor last week. Why should the public have any confidence in the ability of the Government to deliver on their promises when their own watchdog clearly does not?

[Mr Gauke]

The OBR has always taken a cautious view on delivery of infrastructure, but let us remember that we have already delivered 3,000 projects. We have set out an ambitious plan for delivery of infrastructure improvements in the course of this Parliament, and that is exactly what we will deliver.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

10. What fiscal steps he has taken to help increase levels of UK exports since the UK’s decision to leave the EU.

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

T5. Chester’s status as a centre for the financial services industry, particularly FinTech, is under threat from continuing problems with retention by businesses, which cannot get staff to come to the area. Staff cannot get there, because our infrastructure is not good enough. Instead of gloating about the Oxford to Cambridge corridor, can we have some news about when money will be spent on the M56 to upgrade it to a smart motorway?

[The Chief Secretary to the Treasury (Mr David Gauke)]

I will take that as a representation and make sure that my right hon. Friend the Transport Secretary is aware of it. The hon. Gentleman will be aware that we are already setting out an ambitious programme for road spending over this Parliament. In addition, my right hon. Friend the Chancellor of the Exchequer made announcements last week about putting in more funding to improve our road network across the country. I am happy to look at the case that the hon. Gentleman raises.

[Suella Fernandes (Fareham) (Con)]

I recently visited ASV Global in Portchester, an innovator in unmanned and autonomous marine technologies. In just six years, ASV has designed 70 new products, which it has delivered to 10 countries and 40 customers. What further support for research and development is available to companies such as ASV to boost job creation and wealth?

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[Ms Margaret Ritchie (South Down) (SDLP)]

T10. Will the Chancellor confirm that the devolution of corporation tax, which is conditional on the Northern Ireland Executive’s finances being on a sustainable footing, is not a vehicle for the Treasury to interfere in Northern Ireland’s devolved policies?

[Mr Gauke]

It is not a vehicle to interfere, but we have been clear from the very beginning that if the Northern Ireland Executive wish to reduce corporation tax rates in Northern Ireland, they need to do so in an environment in which we can be confident that the public finances are on a sound footing in Northern Ireland.

[Martin Vickers (Cleethorpes) (Con)]

When I met the leader of North East Lincolnshire Council yesterday, he emphasised to me that one of the major challenges facing our coastal community is that many people retire there and put additional strains on the adult social care budget. Will Ministers assure me that that will be considered when allocating departmental budgets?

[Marie Rimmer (St Helens South and Whiston) (Lab)]

With just one in six people with autism in employment, would it not have been better to invest in improving the Work and Health programme, rather than cutting it, to assist people to gain employment and thereby save on benefits? They want to work.

[Mr Gauke]

The reforms that we have announced will enable us to spend £330 million on practical support to ensure that people in the work-related activity group can work. May I point out that, over the past three years, the number of disabled people in employment has increased by nearly 600,000?

[Richard Fuller (Bedford) (Con)]

The key insight of the Government’s productivity plan is that value can be unlocked through more timely implementation, so will the Chancellor have a word with the Transport Secretary to see how he can speed up the completion of the final part of the Oxford to Cambridge link from Bedford to Cambridge?