Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Helen Goodman

Tuesday 11th December 2018 Commons Chamber

[Helen Goodman (Bishop Auckland) (Lab)]

T2. Further to the answer that the Chancellor just gave my hon. Friend the Member for Bootle (Peter Dowd), may I point out that the Father of the House, the right hon. and learned Member for Rushcliffe (Mr Clarke), pointed out last week that if we were to be in a customs union, we would need to have the same regulatory standards as the Europeans? That is true, because they fear unfair competition through a regulatory race to the bottom. If the Prime Minister does not succeed today, will the Chancellor revisit that option?

[Mr Hammond]

I am very confident that my right hon. Friend the Prime Minister will succeed in the mission that she is undertaking today, and I look forward to her reporting to the House on the progress that she has made.

European Union (Withdrawal) Act

Debate between Lord Hammond of Runnymede and Helen Goodman

Thursday 6th December 2018 Commons Chamber

[Mr Hammond]

The hon. Lady is simply wrong. We have record numbers of disabled people in work and that is a record of which this Government are extremely proud. She needs to go away and check her facts.

[Helen Goodman (Bishop Auckland) (Lab)]

I agree with what the Chancellor says about the dire problems caused by no deal. However, he described the transition period as a time in which business could prepare for the new world. The truth is that the Government will be negotiating in parallel with those businesses trying to make changes, so they will not know the destination and will not be able to use that time because the fact is that it is uncertain.

[Mr Hammond]

The hon. Lady is too absolutist. Yes, of course there is further negotiation to be done, but the shape and key elements of the deal are clearly set out in the political declaration. I have described some of them already today. Business will be able to begin to prepare. I completely accept that further clarity will arise during the ongoing negotiations in the transition period. I am sure that she has talked to businesses, so she will know that this is the way that business wants to go. The alternatives—of a no deal exit, or of trying to overturn the referendum decision and risk fracturing our country for a generation—are too awful to contemplate. We have to take this opportunity that is presented to us to protect our economy and to heal our country.

To protect the living standards of the people of the whole United Kingdom, we need to act now. We need to act now to end uncertainty, to protect jobs, businesses and prosperity and to begin to heal the divisions in our country. But what if we do not? What if we turn our backs on this opportunity of a negotiated exit and a transition to the future? I have heard that we have nothing to fear from no deal—nothing, that is, except a cliff-edge Brexit in just four months’ time; the end of frictionless trade with our biggest export market; restrictions on our citizens travelling in Europe; and being the only developed economy in the world trading with the EU on purely WTO terms with no customs facilitation agreements, no data sharing or protection agreements and no approvals regime to allow our industries to trade with their nearest customers and suppliers—just tariffs, paperwork and bureaucracy.

UK car exports would face tariffs of 10%. Many clothing exports would face tariffs of 12%. Agricultural exports would face even higher tariffs. Almost 90% of UK beef exports and 95% of lamb exports go to the EU, where they could face tariffs of over 70% and 45% respectively.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Helen Goodman

Tuesday 3rd July 2018 Commons Chamber

[Helen Goodman (Bishop Auckland) (Lab)]

Ending tax secrecy in the overseas territories will bring in £10 billion a year. Will the Chancellor organise a lunch for my right hon. Friend the Member for Barking (Dame Margaret Hodge), the right hon. Member for Sutton Coldfield (Mr Mitchell) and the entire Labour Whips Office, who were instrumental in securing this change?

[Mr Philip Hammond]

When I have the money in the bank, I will invite them around for a glass of champagne.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Helen Goodman

Tuesday 17th April 2018 Commons Chamber

[Mr Hammond]

We are undertaking the largest rail investment programme since Victorian times and the largest road investment programme since the 1970s. Overall, the Government are now investing public capital at the highest rate for 40 years. This is one of the components that drives productivity in one of the areas where we have a long-standing gap with our principal competitors: too little public infrastructure. We are closing that gap and that will have a positive impact on productivity growth, but we still have to tackle skills, capability at the level of the firm, and access to capital. It is an important strand, but it is only one strand of the productivity conundrum.

[Helen Goodman (Bishop Auckland) (Lab)]

As the Chancellor just said, skills are a crucial plank of improving the nation’s productivity. Since the introduction of the apprenticeship levy, apprenticeships have collapsed. The Government have also slashed resources for further education institutions, such as the excellent Bishop Auckland College in my constituency, so what is the Chancellor going to do about the middle-level skills base?

[Mr Hammond]

The Government are highly committed to the apprenticeship programme. I recognise that starts are down—we always expected that—but something else is happening, because analysis shows that now that employers are contributing with their own levy to apprenticeship programmes, they are opting for higher-level apprenticeships. There are fewer starts than we expected, but we are seeing a much higher level of apprenticeship. There are more degree-level apprenticeships and more apprenticeships at the higher levels. The Department for Education and the Treasury are looking carefully at how this is working—[Interruption.] This is a serious issue, but the important question is about making sure that the skills that the economy needs are generated.

Spring Statement

Debate between Lord Hammond of Runnymede and Helen Goodman

Tuesday 13th March 2018 Commons Chamber

[Helen Goodman (Bishop Auckland) (Lab)]

Much is not under the Chancellor’s control, but the subject of my question is. One year ago, we were promised that Making Tax Digital would be put back to help small businesses, but in the intervening time—since the election—very little progress has been made in the countryside on broadband roll-out, so will he please consider putting it back by another year for small businesses?

[Mr Hammond]

No. We made our decision to defer Making Tax Digital mainly because there was a need for greater awareness among businesses and more time to prepare for the relevant software and so on. We are confident that businesses will be able to roll out the programme on the current schedule. Although I readily accept that there is some disquiet among potential business users, I also confidently predict to the hon. Lady that once they have got used to it, they will find that it is hugely beneficial to them, and that it saves them a lot of time and angst in their dealings with HMRC.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Helen Goodman

Tuesday 16th January 2018 Commons Chamber

[Mr Hammond]

Yes, I can agree with my hon. Friend on that. Any party that aspires to government and is serious about properly managing the public finances should be able to explain how it would fund the expenditure it is committing to—and to do so without consulting an iPad.

[Helen Goodman (Bishop Auckland) (Lab)]

The Chancellor says that he does not want to incur more debt, but yesterday the Treasury approved a minute providing for a contingent liability on Carillion, for which we have had no estimate. Will he please explain to the House what sort of expenditure will be covered—I see that he has given an indemnity to the receiver—and how he will report to the House on how much money the Government will be liable for?

[Mr Hammond]

Yes, the Government have given an indemnity to the official receiver so that it can take on the role of special manager of Carillion’s assets to ensure the continuity of public services in the many schools, hospitals and local authorities that have contracts with Carillion. The Treasury has provided the official receiver with a line of credit that enables the official receiver’s office to operate the company’s public sector contracts, after which it will, in due course, recover the costs from the Department that would have paid fees for those services anyway. The official receiver can only step in and do this with the Treasury’s underwriting, and we deemed it appropriate to give that underwriting.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Helen Goodman

Tuesday 24th October 2017 Commons Chamber

[Helen Goodman (Bishop Auckland) (Lab)]

The Chancellor acknowledged earlier that the fall in the exchange rate following the Brexit vote has pushed up inflation. What is the Treasury’s estimate of the impact of that on people’s standard of living?

[Mr Philip Hammond]

The hon. Lady will be aware of the increase in inflation—CPI inflation stands at 3%. Most forecasts suggest that it might go 0.1% higher before falling steadily from late this year. Obviously any increase in inflation will have a negative impact on real wages, and we very much look forward to CPI inflation falling and real wage growth resuming in this country next year.

Economy and Jobs

Debate between Lord Hammond of Runnymede and Helen Goodman

Thursday 29th June 2017 Commons Chamber

[Mr Hammond]

I give way to the hon. Member for Bishop Auckland (Helen Goodman).

[Helen Goodman (Bishop Auckland) (Lab)]

I want to ask the Chancellor a question that I think he does know the answer to. Does he agree with the right hon. Member for West Dorset (Sir Oliver Letwin), who said yesterday that some tax rises will be needed in this Parliament to maintain the quality of public services, or will he stand at the Dispatch Box and rule out any tax rises?

[Mr Hammond]

I read the comments of my right hon. Friend the Member for West Dorset (Sir Oliver Letwin), and I am sure that what he said will prove to be a very important contribution to a debate that we will have, and should have, in the House. I welcome that.

Class 4 National Insurance Contributions

Debate between Lord Hammond of Runnymede and Helen Goodman

Wednesday 15th March 2017 Commons Chamber

[Mr Hammond]

My hon. Friend is right. I did not mention this because it is not something that I particularly want to make a big issue of, but it is true that when the National Insurance Contributions (Rate Ceilings) Bill was debated in this House, Ministers made it clear that they were legislating to lock class 1 only. No amendments were tabled and no issue was raised. Indeed, the hon. Member for Salford and Eccles (Rebecca Long Bailey), who was then a shadow Treasury Minister, said at the Dispatch Box that this Bill discharged the Conservative party’s commitment on national insurance contributions in the manifesto. [Interruption.] Well, the hon. Lady might want to check Hansard.

[Helen Goodman (Bishop Auckland) (Lab)]

I know that the Chancellor of the Exchequer will want an endorsement from me like a hole in the head, but I am rather disappointed because there is a lot wrong with national insurance. In the wider review, will he also look at the absurd way in which it kicks in at £8,000, well below the personal tax allowance, and at the very unfair top 2% rate?

[Mr Hammond]

I am grateful to the hon. Lady for her comments. It is important to separate the two issues involved: the substantive underlying issue about the way in which national insurance contributions and entitlement to contributory benefit work, and the equally important but separate issue of the way in which manifesto commitments work. The review that we will conduct will look specifically at the differences between the self-employed and the employed, and the access of the self-employed to contributory benefits, so her suggestion is beyond the scope of that particular piece of work. However, as she especially will be aware, all these things are routinely reviewed by the Treasury in the run-up to fiscal events.

Autumn Statement

Debate between Lord Hammond of Runnymede and Helen Goodman

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

I welcome my hon. Friend’s comments as Chairman of the Science and Technology Committee. Of course, the £2 billion a year referred to is just public investment in R and D. Most investment in R and D in this country is done by the private sector. As the Prime Minister said in her speech to the CBI on Monday, we are committed to looking at the R and D tax credit system to make sure that the UK is the most attractive place for an innovative company to do its research, development and innovation.

On immigration, I absolutely recognise the points that my hon. Friend makes. Many companies that choose to locate in the UK depend on being able to bring people with high skills into the UK to work in their businesses. I have said before and I am happy to say again today that, although it is our clear intention to introduce controls on migration into the UK from the European Union, I cannot conceive of any circumstances where we would use those controls to strangle investment in our businesses by not allowing high-skilled, high-paid individuals to be transferred here to work in them.

[Helen Goodman (Bishop Auckland) (Lab)]

The most alarming number in the OBR forecast is the 13% drop in forecast business investment, and the Chancellor said it himself: the big problem is uncertainty. The OBR says rather plaintively:

“we asked the Government for ‘a formal statement of policy as regard its desired trade regime…as a basis for our projections’”

but they left us

“little the wiser.”

The Chancellor had a real opportunity today to tackle this uncertainty, which is the basic problem, by setting out the objectives for the Brexit negotiations to keep us with access to the single market and in the customs union. Why did he not do so?

[Mr Hammond]

I did not, because to do so would be to give away our negotiating cards in what will be a very complex negotiation. With respect to the hon. Lady, even if I or the Prime Minister set out precisely our objectives, our tactics and our strategy for the negotiations, that will not remove the uncertainty because the outcome will depend on the negotiation itself. As the Prime Minister has said, a negotiation is a process of give and take between the parties to get to a mutually acceptable outcome, and that is what will be embarked upon.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Helen Goodman

Tuesday 25th October 2016 Commons Chamber

[Mr Hammond]

Yes. I am glad that my hon. Friend has raised this point. The Thames Estuary 2050 Growth Commission has been asked to develop an ambitious plan for north Kent, south Essex and east London. I am grateful to Lord Heseltine and his fellow commissioners for leading this important work, and I look forward to receiving the interim report ahead of next year’s Budget, when I will respond to it.

[Helen Goodman (Bishop Auckland) (Lab)]

When the Chancellor came to the Treasury Select Committee last week, he was unsure whether analysis of the effects of leaving the European Union was being done by region. He has had a week to find out, so will he now give us an answer?

[Mr Hammond]

If the hon. Lady checks the video, she will find that I was not unsure. I was advising my civil service colleague that I understood that we were doing such regional analysis. We are carrying out regional analysis, which will help to inform the Prime Minister’s negotiating strategy.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Helen Goodman

Tuesday 20th January 2015 Commons Chamber

[Mr Hammond]

My hon. Friend is right. This will be a negotiation. In the present pre-negotiation phase, we are quite properly setting out our broad agenda. Understanding our partners’ concerns, where their agendas coincide with ours and where their red lines are is all perfectly legitimate. It is clear already that some of our partners are beginning to line up for a negotiation. Giving away our hand at this stage would be foolish.

[Helen Goodman (Bishop Auckland) (Lab)]

22. My constituents are extremely concerned about the payment of child benefit for children living not in this country, but in other European countries. Did the Foreign Secretary make any progress with Chancellor Merkel recently on this, or is it still the Government’s view, as expressed by the Prime Minister in May, that it would be impossible to stop this? Is that why the Government have resisted publishing an accurate estimate of the cost?

[Mr Hammond]

There are accurate estimates in the public domain of the amounts of child benefits paid overseas. I have seen them regularly. When I was shadow Chief Secretary in opposition, I remember briefing them to the media regularly, so those data are published. The Prime Minister has made it clear that the Conservative party intends, if re-elected, to proceed down a route that will include ending the payment of child benefits in respect of children not resident in the United Kingdom.

Defence Reform Bill

Debate between Lord Hammond of Runnymede and Helen Goodman

Tuesday 16th July 2013 Commons Chamber

[Mr Hammond]

My hon. Friend knows well, because he was a Minister at the time, that we made a commitment that a fixed minimum percentage of the defence budget will be spent on research and development. That is a matter of policy and such matters will remain for the MOD to determine. If a GoCo is appointed, it will execute policy, not make policy. I am happy to give him that reassurance.

Our reserves make an essential contribution to delivering the nation’s security at home and overseas. They are a valuable and highly valued part of our armed forces who work alongside their regular counterparts to deliver our military capability. Earlier this month, I published a White Paper that signalled a step change in the offer that we make to individual reservists and their employers. It set out a range of measures to revitalise the reserve forces and reverse the decline of the recent past, including paid annual leave and pension entitlements in respect of training days, access to key defence health services, greater predictability of reservists’ liability for call-out and a £500 per month per reservist award to small and medium-sized enterprises when their reservist employees are mobilised. There will also be substantially improved equipment and training opportunities.

[Helen Goodman (Bishop Auckland) (Lab)]

I asked the Secretary of State a parliamentary written question because the centre in Bishop Auckland in my constituency is to close. I asked what that will save the Government. Instead of answering the question, I received the information that the Government are investing £8 million in the reserve estate. I would like to give him another opportunity to answer the question. How much is being saved? Quite honestly, if nothing is being saved, do not close it.

[Mr Hammond]

I do not know whether the hon. Lady was in the House for my statement on the reserves. If she thinks that closing Army Reserve bases is about saving money, she has the wrong end of the stick. It is about delivering the commitments that we have made to the Army Reserve about training, equipment and proper organisation. It is about reflecting the changes in the regular Army and our commitment that reserve units will be paired with regular Army units.

I cannot answer the hon. Lady’s specific question at the Dispatch Box, but I will write to her. The vast majority of sites from which we are withdrawing Territorial Army or Army Reserve activity will remain because they house cadet units that will continue, so that is likely to be the case. This is not about saving money; it is about organising the reserve forces in a way that allows them to make their vital contribution to Future Force 2020.

The White Paper details a comprehensive package of changes that will allow us to create the integrated regular reserve force of the future. A small number of the planned changes require primary legislation. The first of those is the renaming of the Territorial Army. The TA was founded in 1908 and has served this country superbly in peace and in war. However, today’s TA soldiers have a function that is far wider and more important than the original home defence role envisaged by Haldane. As we reshape the Army—regulars and reserves—for the 21st century, it is right that we change the name of the TA to the “Army Reserve” better to reflect its future role. The Bill also provides for the consequential renaming of the Army’s ex-regular reserve force as the “Regular Reserve”.

Reflecting the integral role that reservists will play in almost all future military operations, the Bill extends the powers to mobilise reservists across all three services. Under the Reserve Forces Act 1996, reservists can be mobilised only under specific circumstances. The Bill will enable reservists to be mobilised for the full range of tasks that the armed forces may be asked to undertake.

Intercity Express and Rail Electrification

Debate between Lord Hammond of Runnymede and Helen Goodman

Tuesday 1st March 2011 Commons Chamber

[Mr Hammond]

My hon. Friend puts it very eloquently. He has clearly spotted the glass-half-empty tendency of Opposition Members, which disappoints me. I cannot think why they would wish to score political points today.

[Helen Goodman (Bishop Auckland) (Lab)]

The Secretary of State probably knows that the first steam trains were made in Shildon, so it is quite right that the skills of the County Durham work force should be recognised in his statement. He says that he will work for financial close over the course of this year, but can he say when jobs will materialise?

[Mr Hammond]

I understand that Hitachi will issue a press release broadly simultaneously with my statement that will set out more details of its plans, but clearly, it will be unable to start building factories until financial close occurs later this year. There will then be a factory to build, which will create hundreds of temporary jobs in the area. I have heard that the owners of the industrial estate on which the factory will be built have also indicated that they will expect to build other units simultaneously on a speculative basis in anticipation of suppliers to Hitachi wanting to locate around the factory. I therefore hope that there will be significant construction job creation quite early in the programme. Then, of course, Hitachi will begin recruiting for the permanent jobs for the actual building of the trains—my guess is that this will happen later next year, but it is for the company to confirm.