Oral Answers to Questions

Jeremy Hunt Excerpts

Tuesday 15th November 2022 Commons Chamber

[Andrew Jones (Harrogate and Knaresborough) (Con)]

6. What recent steps his Department has taken to support families with the cost of energy bills.

[The Chancellor of the Exchequer (Jeremy Hunt)]

The Government have taken decisive action to support millions of households with the energy price guarantee, which caps the cost of energy at £2,500 for the average household. We are also spending £37 billion to support millions of low-income households.

[James Grundy]

Will my right hon. Friend tell me what the average household energy bill would have been if the Government had not intervened to help hard-working families across Britain?

[Jeremy Hunt]

I thank my hon. Friend for his informative question, because it allows me to say that with the energy price guarantee at £2,500, the average saving for consumers across the country—including his constituents in Leigh, for whom he is a formidable advocate—is £700.

[Andrew Jones]

I have received correspondence from park home residents about the £400 of support with their bills. I recognise and welcome the measures to limit prices, but these households are seeing their electricity bills go up alongside the cost of their heating oil or gas bottles. Can my right hon. Friend assure me that his Department and the Department for Business, Energy and Industrial Strategy are working together to get support to park home residents before the end of the year?

[Jeremy Hunt]

I, too, have park home residents in my constituency. It is very important that we treat them fairly and give them the help that we are giving others, so we have set up the energy bills support scheme alternative funding as a way of helping them. It is designed to give them the equivalent of the £400 that we are giving to people with more normal energy consumption patterns. I will write to my hon. Friend with more details.

[Sammy Wilson (East Antrim) (DUP)]

BBC Radio 4 erroneously claimed this morning that energy payments to consumers in Northern Ireland would be held up because of the non-operation of the Assembly as a result of the Northern Ireland protocol. Ministers have worked with the Minister for the Economy in Northern Ireland and have made commitments that payments will be made before Christmas, but some senior civil servants seem to be seeking to use non-payment as a lever to get the Assembly back into operation. Will the Chancellor confirm, first, that money is available for the package; secondly, that the energy companies are ready to deliver it; and thirdly, that the Government will keep their commitment to ensure that payments are made before Christmas? Will he also investigate whether civil servants are interfering in the political process in Northern Ireland?

[Jeremy Hunt]

I assure the right hon. Gentleman that we are absolutely determined to ensure that support gets out to everyone in the United Kingdom as quickly as possible this Christmas. I am absolutely not aware of any delay of the kind that he suggests, but I will happily make inquiries to make sure of that.

[Nick Smith (Blaenau Gwent) (Lab)]

The cold weather payment is a lifeline for those on low incomes, but the current £25 rate was set in 2008. Today, it should be worth £37. Will the Chancellor collaborate with the Secretary of State for Work and Pensions and look into updating the figure in the light of the energy crisis?

[Jeremy Hunt]

I can reassure the hon. Gentleman that I have had extensive discussions with our excellent new Work and Pensions Secretary about how we support people on low incomes—precisely the vulnerable people that he is talking about. He will have to wait until Thursday for the details of our plan, but we have said that, in a very difficult time, protecting the most vulnerable will be our top priority.

[Mr Speaker]

I call the shadow Minister, James Murray.

[James Murray (Ealing North) (Lab/Co-op)]

Two years ago, in a video entitled “Rishi Explains: Green Home Grants”, the current Prime Minister enthusiastically took credit for the green homes grant scheme. Six months later, the scheme collapsed and £1 billion was cut from its budget. The truth is that we have the draughtiest homes in Europe, but when it comes to insulating homes, the Government are nowhere to be seen. If the Government had followed our plan last year, 2 million of the coldest homes could already have been upgraded, saving households more than £2 billion on energy bills this year alone. Home insulation should be a no-brainer. Will the Chancellor explain why the Government will not follow Labour’s plans and get on with it?

[Jeremy Hunt]

There are all sorts of bigger reasons why we do not want to follow Labour’s plans, not least because they would bankrupt the economy. On the scheme to help people to insulate their homes, the picture that the hon. Gentleman presents is not correct. We are spending billions of pounds to help hundreds of thousands of families up and down the country to insulate their homes. We completely recognise that that is a vital part of our long-term energy policy.

[Mr Speaker]

I call the SNP spokesperson, Alison Thewliss.

[Alison Thewliss (Glasgow Central) (SNP)]

I welcome this latest Chancellor to his place. Many of our constituents, such as my constituent Angela, have seen their bills double. Angela’s gas bill has gone up from £130 to £260 a month. She lives in a tiny, two-bedroom flat on carer’s allowance and personal independence payment, with a son who has a disability, and she simply cannot afford these bills. Cornwall Insight has estimated that come March, when the energy support ends, the price cap will rise to £3,700. There has been talk of targeting support after that, but National Energy Action has pointed out the risk that many people who are already suffering in fuel poverty will be excluded. What reassurance can he give people out there whose bills are already unaffordable about what will happen in March?

[Jeremy Hunt]

I want to reassure the hon. Lady. My right hon. Friend the Chief Secretary to the Treasury spoke to John Swinney, the Scottish Finance Minister, yesterday. We are thinking very carefully about all these issues, but to correct any misunderstanding, let me add that the energy price support that we give to families will not end next April, and I will announce on Thursday what that support will be.

[Siobhan Baillie (Stroud) (Con)]

4. What steps he is taking with Cabinet colleagues to reduce red tape for small and medium-sized enterprises.

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[The Chancellor of the Exchequer (Jeremy Hunt)]

Inflation is the enemy of stability and this Government have acted decisively to bear down on it, including through the energy price guarantee, which will take up to 5% off the headline rate.

[Ben Everitt]

I was very grateful for the Chancellor’s time last week when he listened to feedback from businesses in Milton Keynes about the economic situation and the situation they are in. As well as support for households, businesses, schools and councils, the main thing that came through all the things I managed to feed back to him last week was the need for certainty so that businesses can invest, forecast and plan. Will the package that he announces on Thursday contain a long enough period so that businesses can put that planning and investment into our economy, and we can grow our way to prosperity?

[Jeremy Hunt]

My hon. Friend is absolutely right; having run a business myself, I know that that certainty and stability is what gives the confidence to invest. I want to reassure him that what I talk about on Thursday will include our plan for growth over the next five years as well as our plan for stability. Both matter, but in the end, as Conservative Members know, wealth is not created by Governments—it is created by businesses.

[Laura Farris]

I know that my right hon. Friend is working intensively to ensure that the United Kingdom can meet its current spending obligations, but can he confirm that the same prudence extends to our national debt? Throughout the summer, my right hon. Friend the Prime Minister said repeatedly that we cannot allow debt to spiral and we cannot burden future generations with further debt. Does my right hon. Friend share the Prime Minister’s commitment and will he use his statement on Thursday to set out a pathway to debt reduction?

[Jeremy Hunt]

My hon. Friend will know that Margaret Thatcher said that there is nothing moral about spending money you do not have, precisely because of what my hon. Friend says: it passes the burden on to future generations to pay it back. Currently, our debt to GDP ratio is about 98% and we are spending debt interest of £22 billion more in the year to date than at the same time last year—that is more than the entire budget of the Home Office. So I absolutely agree with her.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Our growth rate in the 12 years since 2010 has been just 1.4%, which is lower than the OECD average, and behind that of the USA, Canada and Germany. The public should have an answer to this: why does the Chancellor think that is?

[Jeremy Hunt]

What the public know is that unemployment is the lowest for nearly half a century under a Conservative Government.

[Chris Bryant (Rhondda) (Lab)]

Energy inflation and food inflation are already making the finances of schools and local authorities almost unsustainable, with many in real fear of going bust in the next few months. May I urge the Chancellor, as he is thinking about Thursday, not to push this all down on to council tax, because many of the poorest areas of the country have the highest level of need and the fewest people who can afford to make additional contributions? So it would be entirely counterproductive to do that, and the ratchet effect could make local authorities even more unsustainable.

[Jeremy Hunt]

I hear what the hon. Gentleman says. It is going to be a very difficult announcement on Thursday, because we are going to be asking everyone to contribute more. But we will be asking people who have more to contribute even more, and that will be reflected in our decisions on council tax and every other tax as well.

[Mr Speaker]

You might save something for Thursday as well. [Laughter.]

[Dr Julian Lewis (New Forest East) (Con)]

I was encouraged by the Economic Secretary’s answer to the question from my right hon. Friend the Member for Ludlow (Philip Dunne) about mortgages. I know that the Chancellor believes that the restoration of economic stability is essential for mortgages to come under control in the future, but will he confirm that he will bring in imaginative plans to protect people who took out mortgages in good faith and now find them unaffordable?

[Jeremy Hunt]

I can absolutely give my right hon. Friend that confirmation. Indeed, I intend to meet a group of lenders later this month to discuss that very issue.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I think people understand the difficult choices that they and their Chancellor face come Thursday, but will the Chancellor ensure that the small and medium-sized enterprises across the United Kingdom that provide the backbone of our economy and employment opportunities are not forgotten?

[Jeremy Hunt]

I can absolutely give the hon. Gentleman that undertaking. We must remember that, for those businesses, very often the most insidious taxes are those that they have to pay before making any kind of profit, because those are the taxes that can make them go under. As the Conservative party—the party of small business—we will think very hard about their needs.

[Peter Grant (Glenrothes) (SNP)]

Governments do not create wealth, says the Chancellor. Well, this Government certainly do not, nor did any of their predecessors.

Can the Chancellor tell us at what point in his predecessor’s so-called plan for growth did he realise that it was a recipe for economic disaster? If, like everyone on the Opposition Benches, he realised that before his predecessor had sat down, why did it take him so long to speak up about it?

[Jeremy Hunt]

I did actually reverse most of those measures within three days of becoming Chancellor, so, among my many failings, the one thing I cannot be accused of doing is being slow to change things.

[Kit Malthouse (North West Hampshire) (Con)]

As I understand it, the Chancellor is basing his fiscal strategy on Office for Budget Responsibility forecasts, but does he agree that the only thing we know for certain about those forecasts is that they are wrong?

[Jeremy Hunt]

We know that all economic forecasts are inaccurate, but that does not mean that it is better not to have a forecast than to have one. In defence of the OBR, I would say that its forecasts are more accurate than the Government forecast that we used to use before it.

[Dan Jarvis (Barnsley Central) (Lab)]

10. If he will make an assessment with Cabinet colleagues of the potential merits of reviewing HMRC mileage allowance rates to promote retention and recruitment in the public sector.

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[Rushanara Ali (Bethnal Green and Bow) (Lab)]

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

[The Chancellor of the Exchequer (Jeremy Hunt)]

I will be speaking for rather a long time on Thursday—

[Mr Speaker]

That is subject to agreement as well.

[Jeremy Hunt]

May I start again and say that, subject to your agreement, Mr Speaker, I may be talking for rather a long time on Thursday, so I will be brief today? I will just say that, despite the difficulty of the package I will be announcing, I will sadly not be drinking any whisky as I do so.

[Rushanara Ali]

I thank the Chancellor for the work he is doing and congratulate him on his new post. We hope that he lasts the week, or maybe the fortnight. The Government scandalously allowed organised criminals and fraudsters to take billions of pounds of public money through covid loan fraud as a result of the lack of proper checks. Estimates suggest that that has cost taxpayers £33 billion. Why should hardworking people pay for the Prime Minister’s fraud failures when he was Chancellor, and for the mini-Budget fiasco of the former Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss), who crashed the—

[Mr Speaker]

Order. These are topical questions and are meant to be brief.

[Jeremy Hunt]

Of course, there are lessons to be learned about the way those schemes were administered, but I am very proud that unemployment remains at a 50-year low because of the decisions that the Prime Minister took on the furlough scheme and Government-backed loans. That was the right thing to do.

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

I regularly visit small businesses and entrepreneurs across my constituency of Bexleyheath and Crayford. They are the backbone of our local economy, but like families, they have been badly hit by the cost of living. Will my right hon. Friend reassure me that this Government will do all they can to help small businesses across the country to thrive?

[Jeremy Hunt]

That is what Conservatives are all about so I am happy to give him that assurance. It is not just words; it is action: the halving of business rates for most retail, hospitality and leisure businesses; the freezing of the multiplier on business rates; the furlough scheme; the Government-backed loans and the energy price support that we are giving businesses. All that is because this Government back business.

[Mr Speaker]

I call the shadow Chancellor, Rachel Reeves.

[Rachel Reeves (Leeds West) (Lab)]

Today’s numbers show that real wages are down £1,000 a year. The Chancellor himself has admitted that the NHS is on the brink of collapse, and he is preparing for more stealth taxes on working people later this week. Getting our economy firing on all cylinders is essential for fixing this mess, so will the Chancellor tell the House where the UK is projected to finish in OECD growth rates over the next year?

[Jeremy Hunt]

May I say what a pleasure it is to do my first questions session with the right hon. Lady? I will very happily tell her about the international situation. Inflation is higher in Germany, the Netherlands, the eurozone and Italy. Our growth forecasts are falling less than the forecasts in Germany. Interest rates since the pandemic have gone up less here than in America, Canada and New Zealand.

“Despite what some…suggest, the recession has not been restricted to the UK, nor did it begin here.”—[Official Report, 24 March 2010; Vol. 508, c. 249.]

Those are not my words, but those of Alistair Darling in 2010. If the right hon. Lady wants to be the next Chancellor, she should listen to the last Labour Chancellor.

[Rachel Reeves]

It would be nice if the Chancellor tried to answer some of the questions.

Out of 38 advanced OECD economies, the UK is forecast to finish last. That is 38th out of 38. All industrialised economies have had to face covid and the consequences of Russia’s illegal war, yet our country is trailing behind because of Conservative choices and Conservative failure. There is an alternative. Why does not the Chancellor match Labour’s ambitions for British industries in hydrogen, insulation, carbon capture, solar, nuclear and wind power to create new jobs here in Britain?

[Jeremy Hunt]

We will have many exchanges, so I ask the hon. Lady, when she picks a statistic about next year’s growth, not to do so too selectively because this year, we have the fastest growth in the G7. Since 2010, we have had the third highest growth rate in the G7, and we have the lowest unemployment for more than 40 years. That is because Conservatives take the difficult decisions that are necessary to make our economy thrive.

[Andrew Selous (South West Bedfordshire) (Con)]

T4. Given that we have an energy crisis, will the Government allow onshore wind where communities want it, require built-in photovoltaics, where they will work, on new homes, and allow solar farms on 3b land?

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[Alison Thewliss (Glasgow Central) (SNP)]

Thank you, Mr Speaker. Austerity is a damaging Tory political choice, which is responsible for 330,000 excess deaths. A responsible and compassionate Government would explore all options to avoid it. Will the Chancellor consider taxing share buy-backs, as the US and Canada have done? The Institute for Public Policy Research and Common Wealth have pointed out that oil and gas, financial services and other companies have funnelled their mega-profits into share buy-backs. Does the Chancellor agree that that is inexcusable when he wants to hike taxes on working people and slash public services?

[Jeremy Hunt]

The hon. Member had better listen to what we say on Thursday before she jumps to conclusions. We will approach the difficult situation that we face progressively. We will ask those who have more to give more. I advise her not to talk down the financial services and energy industries, which employ thousands of people in Scotland.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

T6. As my right hon. Friend knows, Putin’s illegal war in Ukraine has driven up energy prices across the world. The Government were therefore right to support households throughout the country. What is the long-term plan to reduce our dependence on gas so that taxpayers do not have to subsidise energy bills?

[Jeremy Hunt]

My hon. Friend is absolutely right to point to the challenge of the past two years. Nationally, we are spending £140 billion more on energy. That is almost like supporting an entire second NHS. We have to have a long-term solution that is about energy independence and energy efficiency.

[Ben Lake (Ceredigion) (PC)]

T2. The Chancellor will be aware of concerns about the adequacy of the £100 payment that the Government have proposed to support off-grid households with the cost of their heating. It is equally concerning that we still await details of when and how it will be paid, as well as the support that will be made available to off-grid businesses. When will the Government publish that information?

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[David Linden (Glasgow East) (SNP)]

T7. It is not just individual mortgage payers who are impacted by increasing borrowing costs; that is a particular problem for housing associations such as Parkhead Housing Association, which I spoke to this morning. Previously, housing associations were able to borrow at fixed rates of 25 and 30 years, but that has been reduced. Would the Chancellor be willing to meet me, to look at how we can pursue this with lenders, to ensure that we do not stifle competition when it comes to building housing association properties?

[Jeremy Hunt]

We are looking carefully at that issue, and I would be happy for the hon. Gentleman to meet one of my Ministers.

[Alexander Stafford (Rother Valley) (Con)]

I welcomed the Chancellor’s predecessor to Rother Valley in the summer, to show him Dinnington high street and the money that was needed to upgrade it. He agreed to meet me further about levelling up. Will the Chancellor come to Rother Valley and Dinnington high street to see the levelling-up fund money that we need when the bid is in, and will he look kindly on our bid and make sure the whole of Rother Valley is levelled up?

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[Sarah Champion (Rotherham) (Lab)]

T9. Last week, over 100,000 civil servants from the Public and Commercial Services Union voted to take industrial action following attacks on their jobs. For the first time ever, the Royal College of Nursing has voted to strike over pay. Lecturers, health workers, teachers, postal and transport workers—all people who aim to support this country—are suffering because of the cost of living crisis and the former Prime Minister’s £30 billion ideological rant. The autumn statement needs to show that working people are being listened to. Will it do that, or will it just punish them?

[Jeremy Hunt]

I believe it will do that, because the cost of living crisis is at the top of our minds. We recognise the hard work that public servants do in a whole range of sectors and, as I know, with my background, in the health service as well. We must tread a fine line, however, because if we give inflation-busting pay awards to people who may deserve them and may be working extremely hard, that will fuel further inflation. We need to get the right long-term solution that brings down the root cause of people’s anger, which is over-high inflation.

[Richard Fuller (North East Bedfordshire) (Con)]

The Bedford to Cambridge section of East West Rail is rated “unachievable” by the Infrastructure and Projects Authority and a “waste of taxpayers’ money” by the Business Secretary, and growth in the Ox-Cam arc does not depend on it. Can the Chancellor use the autumn statement to finally clear the uncertainty around this deeply flawed project?

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[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Chancellor just mentioned my good friend Lord Alistair Darling. He should also look at the recent speech made in Huddersfield by another former Chancellor, Sir John Major. His analysis of what has happened to our economy since the Conservatives took over in 2010 is an absolute masterclass in what has gone wrong and what needs to be put right. Will the Chancellor read it and think about it before Thursday?

[Jeremy Hunt]

I always listen very carefully to anything that Sir John Major says. I know that he took difficult decisions that put the economy in excellent shape. The one thing that I do not want to do is bequeath it to a Labour Government.

[Sir Edward Leigh (Gainsborough) (Con)]

As the Chancellor prepares for his autumn statement, will he remember the good voters of middle England—people who have rarely, if ever, been on benefits and who have worked all their lives for their mortgage and pension pot? They fear that more and more of them will be dragged into becoming higher rate taxpayers and that their pension pot will be attacked so that the state can get larger and more can be spent on those on benefits.

[Jeremy Hunt]

Absolutely. I say to my right hon. Friend that it is the good voters of middle England who want us to be a country that pays its way, that does not borrow at the expense of future generations, and that can be trusted when it comes to sound money. That is what we will deliver.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

Skyrocketing inflation, much of it caused by calamities on the Government Benches, means that the Scottish Government’s annual budget is worth up to £900 million less than it was just a few weeks ago. When will the UK Government devolve more borrowing powers to Scotland, so we can give the extra, desperately needed assistance to those struggling the most in our country?

[Dr Julian Lewis (New Forest East) (Con)]

Given that we both agree on the need for a substantial increase in defence spending, does the Chancellor accept that any immediate, necessary freeze on it should not prejudice the goal of 3% of GDP in the medium term?

[Jeremy Hunt]

Let me just say to my right hon. Friend that he and I both agree on the vital responsibility of any Government to defend their shores and their peoples, and we are committed to doing what it takes to make sure we do that.

[Caroline Lucas (Brighton, Pavilion) (Green)]

In a letter to the Chancellor last week, Lord Deben, the chair of the Climate Change Committee, said clearly that demand reduction is “now the biggest gap” in UK energy policy. Will Thursday’s autumn statement include an emergency investment of at least £3.6 billion over the course of this Parliament, so we can finally roll out the long-awaited and very overdue home insulation programme that this country needs?

[Jeremy Hunt]

Lord Deben speaks extremely wisely on environmental and climate change issues, and we would always take what he says with the utmost seriousness.