Oral Answers to Questions

Debate between David Gauke and Chris Williamson

Tuesday 18th December 2018 Commons Chamber

[Mr Gauke]

I am grateful to the hon. Lady for raising those cases and I will certainly look at the incidents she mentions. She is right to highlight the importance of addressing mental health issues within prisons. A very large proportion of prisoners have mental health issues and, in answer to an earlier question, I addressed the need to work closely with the NHS and the Department of Health and Social Care to ensure that we address such points.

[Chris Williamson (Derby North) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Lord Chancellor and Secretary of State for Justice (Mr David Gauke)]

Today the terms of reference for the review of the criminal injuries compensation scheme have been announced. Compensation has long been an important part of the Government’s support for victims of violent crime, and we are determined to ensure that every victim gets the compensation to which they are entitled. The review will look at the scope of the scheme, its eligibility rules, the value and composition of awards and how to provide easier access to compensation. The review will give particular consideration to victims of child sexual abuse and terrorism and look to ensure continued financial sustainability. We have separately announced our intention to remove the pre-1979 same roof rule from the scheme and we will table an amended scheme before Parliament as soon as possible.

[Chris Williamson]

We know the Government see public services as a cash cow for the private sector, but the privatisation of the probation service has been an abject failure. The contract had to be terminated two years early, despite a £0.5 billion bailout. The privatised service failed to reduce reoffending, so why is the Secretary of State proposing to privatise the service again in 2020? Is this not an example of ideology over plain common sense?

[Mr Gauke]

I do not know whether the hon. Gentleman is best placed to lecture on common sense versus ideology.

The reoffending rate has fallen in the time since “Transforming Rehabilitation” and we would like it to fall further. There are issues with how the system is working, which is why we took the entirely pragmatic approach of bringing the contracts to an end and making some important and necessary changes to ensure that we can do more to reduce reoffending.

Finance Bill

Debate between David Gauke and Chris Williamson

Wednesday 2nd July 2014 Commons Chamber

[Mr Gauke]

It is a pleasure to respond to this debate, and in particular to follow my hon. Friend the Member for Burnley (Gordon Birtwistle), who has been a great advocate for manufacturing industry over the years he has been in Parliament. He has provided a strong voice on the issue of capital allowances.

Labour’s new clause asks that the Chancellor review the impact on business investment of changes to the Capital Allowances Act 2001 made by the Finance Act 2011. The new clause is identical to the new clause 5 we opposed in Committee and we will be opposing this new clause for the same reasons. As set out in our corporate tax reform road map, the Government’s central objective is to secure a low corporation tax rate, with fewer reliefs and allowances. We remain of the view that that strategy provides the best incentives for business investment. As part of that approach we reduced the annual investment allowance to £25,000 a year in the Finance Act 2011, at the same time as we were setting out our plans to reduce corporation tax—we have extended those plans and as of next April our corporation tax rate will be 20%, the lowest in the G20.

[Chris Williamson]

The Minister is trying to set out the Government’s position, which he would assert is one of success. If their policies are really so effective, how does he explain the fact that we are living through the slowest economic recovery for more than 100 years?

[Mr Gauke]

If the hon. Gentleman wants to debate that, I am happy to do so. We faced a crisis in the eurozone and we had to deal with the impact of the financial crisis that occurred on the last Government’s watch. Clearly that had a considerable impact on the growth of the UK economy and the economies of other developed countries, but the reality is that our economy is now growing strongly, and we need to ensure that that continues to be the case. There are risks to a recovery, but if we are to compete and succeed, we need to ensure that we have a competitive tax system, the conditions for growth and credible fiscal plans, all of which this Government are delivering as part of our long-term economic plan.

--- Later in debate ---

[Chris Williamson]

The Minister has just asserted that the economy is growing strongly, but I am surprised by that. Will he help the House by comparing that “strong growth” with the growth that took place in the 1950s, 1960s, 1970s and even in the 1980s, at a time, before the regrettable election of Margaret Thatcher, when regulation was significantly greater than it is today and when trade unions were more numerous than they are now? How does this “strong growth” compare with what happened in the period I have just outlined?

[Mr Gauke]

It is a little difficult to compare a period in the 1980s before the election of Margaret Thatcher, given that she was elected in 1979. What I say to the hon. Gentleman is that we are forecast to have the fastest growth in the G7 this year. Clearly, Members on both sides of the House should welcome that, but we must not be complacent because we have further to go and we need to ensure that we stick to the plan to deliver that growth on a sustainable basis.

--- Later in debate ---

[Mr Gauke]

The hon. Lady does not seem to recognise that there is a link between the annual investment allowance and corporation tax; it is an allowance set off against corporation tax. The two are not separate subjects. Of course, if we are discussing certainty within our tax system, one has to look at the bigger picture, and this Government, through the corporate tax road map, have provided much greater certainty for businesses in this country. The biggest threat to the certainty of our tax system at the moment appears to be a Labour party that is at least considering increasing corporation tax to 26%, which would be a huge increase and deeply damaging for the UK’s competitiveness.

[Chris Williamson]

Let me return the Minister to the historical context. He keeps implying that a Labour Government would be anti-business, but I challenge him to compare the economic growth record of previous Labour Governments with that of this Conservative Government. I think he will find that the Labour record compares extremely favourably. The truth is that Labour Governments have invested in our economy; what we should be concerned with in this place is improving the living standards for the British people, and they have always achieved that.

[Mr Gauke]

We saw the economy shrink by 7% in a year or so under the Labour Government. That is not a record of which to be proud.

[Chris Williamson]

rose—

[Mr Gauke]

I will give way one last time.

[Chris Williamson]

The Minister seems to imply that the worldwide downturn—the economic recession that was a consequence of the banking crash—was the responsibility of the previous Labour Government. It is a ludicrous assertion. Surely he will accept that there was an international banking crash that led to the economic difficulties with which the Labour Government were faced in 2007.

[Mr Gauke]

Let me summarise the hon. Gentleman’s position: when the economy grows under a Labour Government, the Labour Government get the credit, but when it shrinks under a Labour Government, that is to do with international factors. At least we know where he stands.

We have heard a lot of criticism of the reduction in the annual investment allowance, and I have attempted to try to put that in the context of what we have generally done within our tax system. The impression given by the hon. Member for Newcastle upon Tyne North at all times was that it was a disastrous decision that resulted in business investment being slashed. I do not accept that position at all, and I have made it clear, by putting this in the context of what we are doing with corporation tax, that we are encouraging investment.

Just this week, the Labour party set out its plans for business tax. As far as I am aware, nothing was said in those plans about the annual investment allowance, or about extending the increase to £500,000 beyond December 2015. We heard a lot about an allowance for corporate equity, but I do not think that I heard anything at all from the Opposition on this subject. If it is so important to them, why do they not have a policy in this area? Indeed, at one point, it seemed to come as a surprise to the hon. Member for Newcastle upon Tyne North that this was a temporary measure, although subsequently in her speech it became clear that she was aware of that. What is Labour’s position? If Labour Members feel so strongly about this issue and it is a priority for them, why have they said nothing on the subject? On that point, I urge the House to reject new clause 10 if it is put to a vote.

Living Standards

Debate between David Gauke and Chris Williamson

Monday 5th March 2012 Commons Chamber

[Mr Gauke]

The people who voted Conservative at the election, and indeed others, recognise that this Government are prepared to take difficult decisions to get the public finances on track to provide the long-term credibility that our public finances need and to ensure that our economy can grow strongly once again. By sticking its head in the sand and opposing every step taken to get the deficit under control, the Labour party does itself no favours.

[Chris Williamson (Derby North) (Lab)]

The Minister talks about putting the public finances in a sound state, yet are not the Government’s policies singularly failing because the Government are having to borrow an additional £158 billion? Surely that should tell the Minister that he is getting it wrong, that he needs to think again and put people back in employment to give them the opportunity to pay tax and contribute to society rather than wasting taxpayers’ money on keeping people idle on unemployment benefit.

[Mr Gauke]

For the hon. Gentleman’s information, borrowing is falling year on year, and we are not going to get borrowing down by borrowing more—however often the shadow Chancellor claims that that is the case.

--- Later in debate ---

[Mr Gauke]

All the measures that will be put in place in 2012-13 are being implemented by this Government. That is the point. It is impossible to disaggregate those measures. They are all going to be put in place, and we are responsible for all of them. If we had wanted to reverse some of them, we could have done so, but we did not.

Of course, none of what we are doing ignores the fact that this will be a tough year for households across the board. We know that that is the case, and it is our reason for going even further to support families and businesses throughout the country.

[Chris Williamson]

Will the Minister give way?

[Mr Gauke]

I want to make some progress.

We are limiting the increase to Transport for London and regulated rail fares, funding South West Water to enable it to cut bills by £50 per year for households that currently face the highest water bills in the country, setting aside an extra £675 million for local authorities in England to freeze or reduce council tax in 2012-13, and providing real help for households that are feeling the squeeze. We are deferring the fuel duty increase that was due to take effect on 1 January to August this year, while also cancelling the further increase in August. As a result, tax on petrol will be a full 10p lower than it would have been, and families will have saved £144 on the cost of filling up the average family car by the end of next year.

Oral Answers to Questions

Debate between David Gauke and Chris Williamson

Tuesday 21st December 2010 Commons Chamber

[Mr Gauke]

I can assure the hon. Lady that we will ensure that the link with national insurance contributions will be maintained, and that mothers in those circumstances will not lose out. We will announce details in due course.

[Chris Williamson (Derby North) (Lab)]

T1. If he will make a statement on his departmental responsibilities.