Mortgage Charter

Desmond Swayne Excerpts

Monday 26th June 2023 Commons Chamber

[Jeremy Hunt]

I often do not agree with what the right hon. Gentleman says, but I thank him for the constructive tone of his comments this afternoon, because he is absolutely right to talk about external shocks. He will know, as we do, that interest rates have gone up by similar amounts in the United States, Canada, Australia and New Zealand and that core inflation is higher in 14 EU countries. We need to look at all the tools at our disposal. Whether the Bank of England Governor issues forward guidance is a matter for the Governor, but I am sure he will have heard the right hon. Gentleman’s comments. It is important, because we respect and support the independence of the Bank of England, that I allow the Governor to make those judgments. I disagree with the right hon. Gentleman’s suggestion of reviewing the target for inflation. That target is the right target, and it is important that we give everyone confidence of our total commitment to hitting that target, which we will.

[Sir Desmond Swayne (New Forest West) (Con)]

Given the significant tightening in the measures of monetary growth, is the Chancellor absolutely sure that the Bank of England has got it right?

[Jeremy Hunt]

The Bank of England Governor himself has been very open about the fact that the Bank’s inflation forecasting has not been accurate, and it is conducting an independent review to see how it can do that better. It is clear that there have been some issues with how that process has worked, but what I would say to my right hon. Friend—

Mortgage Market

Desmond Swayne Excerpts

Tuesday 13th June 2023 Commons Chamber

[Andrew Griffith]

It may cause the hon. Lady some distress, but I am enormously proud of the £94 billion the Government have provided to support households in these difficult times. I am proud, too, of the Government’s response to the covid pandemic and to Ukraine—would it ill behove any Opposition seeking office to mention those things a little more when talking about the economy? Above all else, I am enormously proud that when any Conservative Government leave office they do not leave notes behind saying, “Dear Chief Secretary, I am afraid to tell you that there is no money left.”

[Sir Desmond Swayne (New Forest West) (Con)]

Inevitably, the level of Government borrowing itself is a determinant of interest rates, isn’t it?

[Andrew Griffith]

My right hon. Friend—I congratulate him as well—is right to say that one factor is the level of Government borrowing. This Government have had to borrow unprecedented amounts due to the covid pandemic and the war in Ukraine, and to provide households with that support of about £3,300 over this year and last. That is one reason why one of our key priorities is to reduce the level of debt.

Oral Answers to Questions

Desmond Swayne Excerpts

Tuesday 21st March 2023 Commons Chamber

[Jeremy Hunt]

What I say to the hon. Lady, whom I greatly respect, is that we did a lot for public services in the autumn statement, including a £3 billion increase in the annual schools budget and an £8 billion increase in the annual health and care budget. We are always focusing on public services, and we do support a progressive tax system.

[Sir Desmond Swayne (New Forest West) (Con)]

Will the Chancellor tweak the childcare initiative to enable families in which one parent wants to care for children full-time to have a realistic prospect of being able to afford to do so?

[Jeremy Hunt]

We think these reforms will make a big difference to all parents. Our priority is parents who want to work and who are prevented from working by the expense of the current system. I would remind my right hon. Friend that we still have a 15-hour free childcare offer for all parents, irrespective of whether they work, for three and four-year-olds.

Silicon Valley Bank

Desmond Swayne Excerpts

Monday 13th March 2023 Commons Chamber

[Andrew Griffith]

It is not uncommon for banks to have a particular specialism. Labour Members have worked to bring forward regulations that will help us have more credit unions, which tend to have a geographical concentration, and there are agricultural banks and other wholesale banks, so it is not of itself an unusual feature. In this case, we were able to take action precisely because of the UK regulatory structures and the interventions we can make. We will learn any lessons, but this is a Government who are on the side of technology companies and the life sciences, and we have been proud to deliver this outcome—this important certainty—and to remove the jeopardy they otherwise faced at the opening of business this morning.

[Sir Desmond Swayne (New Forest West) (Con)]

What estimate had the Bank of England made of the health of SVB before the events of the weekend?

[Andrew Griffith]

It would not be right for me to answer on behalf of the Bank of England, if my right hon. Friend will forgive me. We have an independent regulator that looks at these matters. The Treasury Committee regularly takes evidence from the Bank of England, and I am sure it will do so in future.

IMF Economic Outlook

Desmond Swayne Excerpts

Tuesday 31st January 2023 Commons Chamber

[James Cartlidge]

I am pleased to say that there is very colourful support on our Back Benches today. I am sure that there will further pertinent and brilliant questions to come. The hon. Lady quotes the IMF, but I simply reiterate what its economic counsellor said this morning about the UK. He said:

“Let’s start with the good news: the UK economy has actually done relatively well in the last year. We’ve revised”—

growth—

“upwards to 4.1%...that’s one of the highest growth rates in Europe”.

That is exactly what the IMF said.

[Sir Desmond Swayne (New Forest West) (Con)]

What should the IMF make of our burgeoning £65 billion trade surplus in financial services?

[James Cartlidge]

The IMF always stresses the importance of sustainable growth. It is sustainable growth that matters, and, of course, my right hon. Friend is absolutely right: exports are crucial to that. The City and financial services are a massive UK success story. We want to build on that, which is why we have announced the Edinburgh reforms and further measures to strengthen UK financial services. We are quite clear that the future for this country is optimistic and we will get there by backing brilliant British business.

Stamp Duty Land Tax (Reduction) Bill

Desmond Swayne Excerpts

Committee stage
Tuesday 10th January 2023 Commons Chamber

[Victoria Atkins]

It is a pleasure to serve under your chairmanship, Sir Roger.

At the autumn statement, my right hon. Friend the Chancellor set out set out how the Government are dealing with the global economic challenges that we face. The consequences of Putin’s illegal invasion of Ukraine and the covid-19 pandemic mean that we must be fiscally responsible while supporting the economy and encouraging our businesses to grow and our constituents to thrive. We need a balanced approach to support our objectives, which includes helping people get on to and move up the housing ladder—and indeed to downsize.

[Sir Desmond Swayne (New Forest West) (Con)]

Will my hon. Friend allow me?

[Victoria Atkins]

It is very soon, but because it is my right hon. Friend, I will certainly give way.

[Sir Desmond Swayne]

My hon. Friend is most generous and kind. Those of us who voted with enthusiasm for the Bill’s Second Reading on the grounds that there was to be a permanent change for the benefit of those people wanting to get on to the housing ladder are somewhat discomfited by the fact that Government amendment 1 will make it merely a temporary measure to assist those who want to do so. We want them to be permanently assisted. Can she reassure me?

[Victoria Atkins]

I very much understand why my right hon. Friend raises that point. I know he took a great interest in the autumn statement and listened carefully to the submissions and oration of the Chancellor of the Exchequer, my right hon. Friend the Member for South West Surrey (Jeremy Hunt). We had to take some difficult decisions in the course of the autumn statement to ensure that our approach to the economy is fiscally responsible. This is one way in which we hope to stimulate the housing market in the next two years in the difficult economic circumstances we find, but thereafter we are confident that the economy will improve and we will be able to return to the status quo as it was before 23 September. However, the broader picture about reducing the taxation burden on our constituents still stands. Indeed, I hope my right hon. Friend listened with great interest to the Prime Minister’s speech last week in which he made it clear that that is our ultimate goal.

Non-domestic Energy Support

Desmond Swayne Excerpts

Monday 9th January 2023 Commons Chamber

[James Cartlidge]

I am grateful to the hon. and learned Lady for mentioning the charity in her constituency. As I said, I appreciate that the energy increase has been a challenge for every type of SME, charity and institution up and down the country. I am sorry to hear about the challenges for Gorgie city farm, which I have not had the pleasure of visiting but it sounds fascinating. Charities have shown huge resilience over the past two years and will continue to receive support with their energy bills from the latest iteration of the discount scheme. I emphasise that there is wider support to help them with their costs, including a reduction in VAT from 20% to 5% and an exclusion from the main rates of the climate change levy on some of the energy they use. The key point is that we are announcing a scheme that is still universal in nature and still includes charities. It is not as generous as before, but when we engaged with stakeholders about the £18 billion six-month scheme, what was interesting was the number of them who remarked that they had not expected that scheme to continue at that level of generosity. They could see the issue about sustainability for the taxpayer, which we all have to understand and address. It is in all our interests, and in the interests of every single business and charity, that this country has sustainable public finances.

[Sir Desmond Swayne (New Forest West) (Con)]

Has any analysis been made available to Ministers regarding the movements in wholesale prices and the tariffs actually being offered to customers going forward?

[James Cartlidge]

It is very timely that my right hon. Friend raises that point. He will have heard me mention to the former Lord Chancellor, my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland), that the Chancellor has today written to Ofgem to encourage it to update him as soon as possible and as a matter of urgency about the review of the non-domestic market, because we are hearing about many issues with it. A key point I will be feeding back is that colleagues on all sides of the House have experienced cases in their constituencies relating to deposits being asked for, deals being rejected and what will happen at the end of fixed rates. There is clearly work to be done and that is why the Chancellor has written as he has. I will ensure the letter is published on gov.uk along with the other documents.

Economy Update

Desmond Swayne Excerpts

Thursday 26th May 2022 Commons Chamber

[Rishi Sunak]

My hon. Friend the Economic Secretary to the Treasury is in regular dialogue with the Financial Conduct Authority to ensure that the industry is properly regulated. Last year, we also introduced the breathing space programme, for which he deserves enormous praise and which we continue to believe will help people. It provides a space where all statutory debt repayments are paused to allow families time to work through them, with the benefits that that brings.

[Sir Desmond Swayne (New Forest West) (Con)]

What difference in monetary policy has protected Japan and Switzerland from the levels of inflation that we are encountering here, in the United States and in the rest of Europe?

[Rishi Sunak]

Japan, as my right hon. Friend will appreciate, is a very particular case, but even Japan is experiencing its highest relative inflation rate in many years. For Switzerland, there are a couple of reasons. The first is a particularly strong Swiss franc, which happens at times like this. The second is a different mix of energy, which I believe from memory is provided overwhelmingly by hydro and nuclear. That is a completely different energy mix, which means that Switzerland suffers less from the shock we are experiencing.

Prime Minister’s Chief of Staff Appointment

Desmond Swayne Excerpts

Monday 7th February 2022 Commons Chamber

[Michael Ellis]

I had no idea that the hon. Gentleman presented himself as an expert in Erskine May, but I have to say, with respect, that I do not think many others would. The reality is that my right hon. Friend the Member for North East Cambridgeshire (Steve Barclay) is not a civil servant; he remains a servant of this House—a servant of the people of this country—democratically elected and highly accountable.

[Sir Desmond Swayne (New Forest West) (Con)]

On the whole, Governments do not do things well, so will my right hon. and learned Friend persuade the new chief of staff to concentrate the Government’s efforts on doing fewer things a bit better?

[Michael Ellis]

As the House will recognise, the Chancellor of the Duchy of Lancaster has a long history of ministerial service in this House, which he has performed par excellence. I have no doubt, and nor do my colleagues, that he will continue to perform his functions with excellence, whether they be in 10 Downing Street or elsewhere.

Downing Street Garden Event

Desmond Swayne Excerpts

Tuesday 11th January 2022 Commons Chamber

[Michael Ellis]

The right hon. Lady’s first point was that the Prime Minister is not here in person. She knows as well as everyone else in this House that it is not routine for the Prime Minister to answer urgent questions before the House, but that his Ministers are appointed to do so. However, he also attends this House more often than anyone else to answer questions and will be doing so tomorrow in the normal way at Prime Minister’s Question Time.

The right hon. Lady mentioned the appalling loss suffered by one of her constituents. My heart goes out to that constituent and, indeed, to all others from whom we have heard in this House—from all parts of this House—who have suffered tragic loss as a consequence of this appalling pandemic.

There is a need for investigation. The right hon. Lady said that there was not. There is a need, and that need is clear. The investigation is in progress. It is being conducted by someone in whom we have great confidence and who is, if I may put it this way, a paragon of independence and integrity in the civil service, of long standing. She is conducting that investigation.

The Prime Minister was himself affected by the consequence of covid-19 infection. He takes this matter very seriously, as does everyone in government. I will say this: the right hon. Lady asked if I have confidence in the Prime Minister’s integrity and honour, and I do.

[Sir Desmond Swayne (New Forest West) (Con)]

All this should be a powerful corrective to the urge to order the rest of our lives, should it not?

[Michael Ellis]

We each of us, in this House and no doubt everywhere else, live our lives in the best way that we can. Those of us in positions of responsibility acknowledge that responsibility. That is why there is an investigation in progress, which will get to the bottom of all these matters. That is in progress.