Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Tuesday 22nd May 2018 Commons Chamber

[Mr Philip Hammond]

A pilot railcard for that age group was launched as a trial, and was fully subscribed very quickly. The Department for Transport will be announcing in due course when the continuation of the scheme will take place.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

As the Minister knows, the communities that I represent in Carmarthenshire received the highest form of EU structural aid. Will he give a guarantee that they will not lose a single penny following the introduction of the UK Shared Prosperity Fund?

[Mr Hammond]

As I think I have already said earlier in this session, we will be consulting, during the course of this year, on the design of the UK Shared Prosperity Fund, the scope and scale of the fund and how the money in the fund should be allocated. I look forward to the hon. Gentleman’s input to that consultation.

Spring Statement

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Tuesday 13th March 2018 Commons Chamber

[Mr Hammond]

I am glad to be able to tell my hon. Friend that there will be 20 construction skills villages. We look forward to the bid from Redditch, and I am sure that it will be considered carefully.

As I said earlier, my right hon. Friend the Education Secretary is contributing an extra £80 million specifically to help small businesses that are non-levy payers with the costs of engaging apprentices, and from April many small businesses will benefit from the flexibility that allows large business levy payers to transfer 10% of their levy funds to small businesses in their supply chain. The impression that I have from talking to the CBI and other organisations is that businesses are keen to do that, and many of them will make such transfers.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Is the OBR right to calculate in its report that the United Kingdom will be making payments to the European Union until 2064 as part of the divorce settlement and that that will not include any new commitments that the British Government may make in the remaining parts of the negotiation? Would it not be better just to stay in the EU?

[Mr Hammond]

The payment profile has three parts. There are payments during the two years—more or less—of the implementation period; there are payments as the EU dispenses the so-called reste à liquider over the following few years; and then there is a very long tail of what will actually be very small payments relating to pensions. Of course, by their nature, they will stretch over a very long period, but they are very small amounts of money.

Economy and Jobs

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Thursday 29th June 2017 Commons Chamber

[Mr Hammond]

Let me do the maths. Hmm, it would be £1.5 trillion that they raise. Perhaps one of my hon. Friends will check down the back of the Treasury Bench in case the previous Chancellor hid that away down there. As usual, the right hon. Gentleman is talking absolute nonsense.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Will the Chancellor give way?

[Mr Hammond]

I want to make a little progress, but I will give way in a moment.

I have set out our record, but the British people did not get where they are today by admiring their achievements. We have work to do: we have to negotiate our future relationship with the EU; we have to enhance our global competitiveness through raising our productivity; we have to rise to the challenge of sustaining our public services in the face of demographic pressure; we have to address the needs of our population for affordable routes into home ownership; and we have to show the courage and vision to grasp the opportunities ahead. We will meet those challenges head on, as we have always done, with a plan that builds on the strengths of our economy, not one that denigrates them.

Let me say something about our public services and their funding. We all value our public services and the people who provide them to us. Health and social care, education, roads, local authority services, police, fire and rescue, defence and the many, many other services we enjoy all form part of the vital fabric of our society and contribute to the vibrancy of our communities. The challenge of funding those public services is accentuated by the changing age profile of the population, which necessitates a proper debate about how to make the funding of public services sustainable not just next year, but over the decades of demographic change to come. We have to be clear about the choices and what they mean because there are no free lunches or money trees in the real world, and all decisions have consequences.

There are three ways for the Government to increase spending on public services: higher taxes, higher borrowing or higher growth. Higher taxes have a cost in terms of business investment, economic growth and take-home pay. Conservatives are instinctively in favour of keeping taxes as low as possible so that business can continue to create high-quality jobs and hard-working people can keep more of the money that they earn. That is why we reject Labour’s manifesto plan, which would, according to the IFS, take taxation to its highest ever peacetime level. The right hon. Member for Hayes and Harlington is not listening, but—[Interruption.] Pay attention. If he wants to make the case for higher taxation to fund public services, will he at least make this a grown-up debate? Will he at least ask voters whether they want to pay higher taxes to fund public services, not whether they would like someone else to pay higher taxes? As Ed Balls reminds us, in the real world, it is ordinary people who pay.

When we already have an eye-watering amount of debt, higher borrowing makes our economy vulnerable to future shocks. With £1.7 trillion of national debt outstanding and an annual interest bill of £50 billion, even at the current low rates, we should be reducing debt, not increasing it. However, borrowing means something else, too. It means that we are asking the next generations—our children and our grandchildren—to consume less in their lifetimes to pay for our consumption today. That is simply not fair; it is the opposite of sustainable.

[Mr Hammond]

As I have already said, if it were ever to look like the shadow Chancellor was anywhere near having his hand on the lever of power, I suspect that his programme, given what we know about his values and principles around the management of the economy, would lead to a pretty sharp rise in interest rates.

We must continue the job of getting our public finances back in order, over a sensible period of time, so that we are living within our means. The shadow Chancellor referred to the decision in my first autumn statement to push back the date on which we will reach fiscal balance. I made that decision to protect our economy during a period of uncertainty due to our exit negotiations from the European Union, therefore giving ourselves a little more headroom to respond should the economy need support. I would have thought that the right hon. Gentleman welcomed that measure.

The only fair and sustainable way to fund better public services, higher real wages, and increased living standards—[Interruption.] I say to the Opposition Front-Bench team that that is absolutely not the way to do it. The only fair and sustainable approach is to increase economic growth through higher productivity. Our plan will support our public services and living standards.

[Jonathan Edwards]

Based on the rosy picture that the Chancellor has been endeavouring to portray this afternoon, will he explain why Britain has the worst-performing economy in the G7 under his watch?

[Mr Hammond]

The hon. Gentleman is wrong. Last year, the British economy was the second-fastest growing in the G7 after Germany. In the year before that, our economy was the second-fasting growing after the United States.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Tuesday 28th February 2017 Commons Chamber

[Mr Hammond]

I will take that as a Budget representation, and yes I do agree with my hon. Friend. We set out in the autumn statement how we would increase investment in infrastructure. That is one of the challenges we face in raising this country’s productivity. Skills is another.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The Swansea Bay city region deal has the potential to boost infrastructure development in the west of my country. The board’s proposals, which have been presented to the Treasury, have the support of the relevant local authorities and universities and of the Welsh Government. When can we expect the Treasury’s response to them?

[Mr Hammond]

This discussion is still ongoing. I hope we may bring it to a conclusion within, let’s say, the next eight days.

Autumn Statement

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

I am grateful to my hon. Friend for her generous words.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The Chancellor quite rightly noted at the beginning of his statement that one of the big challenges that he faces is the gross wealth inequality in the British state—a task that will be made harder with the loss of EU structural funds—so is it his intention in future statements to announce a UK convergence fund to replace the lost EU regional money?

[Mr Hammond]

I recognise the hon. Gentleman’s concern. He will know that I have made two statements since becoming Chancellor seeking to reassure businesses, universities and others who apply for EU grant funding that, where they are successful in such applications, however long the funding runs on, we will underwrite it, so if Brussels does not foot the bill, the Treasury will. But he is absolutely right: we will have to put in place alternative arrangements for the period after we leave the EU. We will have to have a discussion with the devolved Administrations about how that works—between Whitehall and the devolved administrations—and once we get into the negotiation with the EU, we can start to see the direction of travel. I think that it will then be appropriate to have this discussion, but I do recognise the concern.

Iran: Nuclear Deal

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Wednesday 15th July 2015 Commons Chamber

[Mr Hammond]

I and my hon. Friends will be talking to our colleagues across the Gulf, and the Prime Minister is also intending to engage with some of his interlocutors. I was very pleased that the UAE issued a statement welcoming the deal, indicating that it intends to engage positively with the opportunities that now arise. That is hugely important. The UAE is an influential state in the Gulf, and its commitment to making this agreement work and changing the dynamic in the region is hugely significant.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The Secretary of State said the deal would help the alignment of western and Iranian foreign policy in the middle east. What does he think the implications of this deal will be for western foreign policy in respect of the conflict in Syria?

[Mr Hammond]

I did not say that; what I said was that we are aligned in our view of ISIL as an existential challenge that needs to be dealt with. We do not agree on everything and we will not agree on everything, but where we do agree we can work together, and that is the important thing.

Army Basing Plan

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Tuesday 5th March 2013 Commons Chamber

[Mr Hammond]

Some additional money has been provided by the Chancellor in, I think, the last Budget, and a refurbishment programme is continuing with that finance. The £1 billion is in addition to the baseline programme of Defence Infrastructure Organisation maintenance and upgrading, which has a two-year pause partly ameliorated by the Chancellor’s additional contribution. Those two programmes will run in parallel.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Will the Secretary of State confirm that of the 165 Army units listed in the basing review, only one will be located in Wales? How much of the £1.8 billion MOD relocation fund will be spent in Wales?

[Mr Hammond]

I do not think that is right; I am conferring with my right hon. Friend the Minister for the Armed Forces. I am happy to write to the hon. Gentleman to confirm to him, as set out in the document, exactly what the lay-down will be in Wales after the completion of this move.

Nuclear-powered Submarines

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Monday 18th June 2012 Commons Chamber

[Mr Hammond]

My hon. Friend is well aware of the plans for Devonport dockyard, and nothing that I have said today changes the previously announced policy of relocating our submarine capability to the naval base at the Clyde.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Has the Secretary of State given any thought to where Trident will be located following Scottish independence in 2014? May I assure him that there will not be a welcome in the hillside if he is thinking about a Welsh port?

[Mr Hammond]

The Government do not expect that the people of Scotland will opt for independence in a referendum in 2014. We are quite confident that, on mature consideration, they will see the advantages of remaining within a United Kingdom and enjoying the benefit of the security afforded by the United Kingdom’s nuclear umbrella.

Afghanistan (Troop Levels)

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Thursday 26th April 2012 Commons Chamber

[Mr Hammond]

The strategic threats are acknowledged in, and form a core part of, ISAF’s thinking. I do not know whether my hon. Friend had a particular aspect in mind, but it is clear to us that building a sustainable and reliable relationship with Pakistan and ensuring the security of the border with Pakistan will be fundamental to the future of Afghanistan.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The UN assistance mission in Afghanistan recently confirmed that there were 3,000 civilian deaths in 2010, that 25% of Afghan children die before they are five and that 70% of people live in poverty. Is not that the real legacy of a decade of war?

[Mr Hammond]

No, it absolutely is not. The number of civilian casualties is of course a matter of extreme regret, but more than 76% of civilian casualties are caused by Taliban activity, not by ISAF or ANSF activity. Health care, literacy and poverty have all taken great strides forward since 2006. The Taliban banned girls from schools. There were no girls in school—

Coastguard Modernisation

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Thursday 14th July 2011 Commons Chamber

[Mr Hammond]

I am grateful to my hon. Friend and to the Committee for the work that it did. I suspect that he may get the prize for being the Member with the constituency furthest from the coast who has contributed to this discussion today. I would be happy to talk to him offline, but I sense that Mr Deputy Speaker would not encourage me to explain in detail the technical features of the new maritime operations centre.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

What discussions has the Secretary of State had with the new Welsh Government about the proposal to aim the axe at Swansea rather than Milford Haven? Has he received any representations from new Welsh Ministers?

[Mr Hammond]

No, I have received no representations about the choice between Swansea and Milford Haven.

McNulty Report and West Coast Rail

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Thursday 19th May 2011 Commons Chamber

[Mr Hammond]

My hon. Friend is right. High-quality rail services deliver major economic benefits to the towns they serve, which, of course, is one of the major rationales behind the Government’s enthusiasm for the high-speed rail project.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

What consideration has been given to a Welsh franchise based on a not-for-profit model operated by the Welsh Government? I believe that is the policy of at least two of the main parties in the National Assembly.

[Mr Hammond]

I am pleased to be able to tell the hon. Gentleman that franchising policy in Wales is a matter for the Welsh Assembly Government, so it will be for them to decide when the current Arriva Trains Wales franchise comes up for renewal, which—off the top of my head—is in 2016. However, I said something this morning that he will be interested in: I indicated that when we return to the House later this year with our proposals for broader rail reform, we will consider the greater devolution of regional railways and regional railway funding, both to the devolved Administrations and to local authorities and integrated transport authorities around the country. That will enable us to oversee the national strategic rail routes, but not manage the regional and local railways system, from the Department in London. That seems a sensible way of proceeding.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Thursday 10th March 2011 Commons Chamber

[Mr Hammond]

I understand the hon. Gentleman’s question, and I am aware of the proposal that East Midlands Trains is examining to introduce bi-modal running on the line. The difference between the midland main line and the Great Western main line is that the midland main line’s future function will be affected by the decision on High Speed 2. It is right that we consider the matter as one for the next control period, in the full light of the decision on HS2 that will be taken later this year.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

12. What recent representations he has received on the electrification of rail lines between Cardiff and Swansea and west of Swansea.

[The Secretary of State for Transport (Mr Philip Hammond)]

I have received representations calling for electrification of the Great Western main line to be extended as far west as Swansea. We have looked carefully at the arguments but I regret to tell the hon. Gentleman that there is not, at present, a viable business case for electrification of the main line between Cardiff and Swansea. I have given the House an undertaking that I and my right hon. Friend the Secretary of State for Wales will keep the matter under review.

[Jonathan Edwards]

I regret to inform the Secretary of State that last week’s announcement went down like a lead balloon in the communities in west Wales that I represent. Later in the week, the Business Secretary made a speech saying that investment in high-speed rail and electrification was an example of how the UK Government were going to rebalance the economy. Is the message therefore that as far as the UK Government are concerned, the Welsh economy stops at Cardiff?

[Mr Hammond]

No, I will tell the hon. Gentleman what the message is. It is that my announcement last week will result in the journey time to Swansea being cut by 20 minutes, to two hours and 39 minutes, delivering to people in Swansea all the time-saving benefits that would be delivered were electrification to progress as far as Swansea. I am sorry to have to tell him this, but if he looks at the facts of the case, the costs to the taxpayer and the benefits to the people of Swansea, he will discover that at the present time our decision is the right one. As I have said, we will keep it under review.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Thursday 27th January 2011 Commons Chamber

[Mr Hammond]

The Under-Secretary of State for Transport, my hon. Friend the Member for Lewes (Norman Baker) is looking precisely at how to increase take-up of the smarter driving training courses.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

As the Secretary of State knows, the Department turned down a joint private and public consortium bid, including Cardiff and Bristol councils and the Energy Saving Trust, for a network of electric car-charging points between both cities on the M4. Will he explain to the people of south Wales why he turned down that bid?

[Mr Hammond]

The number of bids exceeded the available resources for the second wave of plugged-in places pilot schemes. All the bids were evaluated, and those that represented the greatest value for money were allowed to proceed. The promoters of the unsuccessful bids have been debriefed by the team in the Department, so they will have a detailed understanding of why their bid, on this occasion, failed. I hope that they will be encouraged to resubmit a bid in the next wave.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Jonathan Edwards

Thursday 2nd December 2010 Commons Chamber

[Mr Hammond]

Yes, of course I am. The Thameslink project will deliver relief on lines across London from north to south and to Brighton, and will hopefully relieve part of the problem on the Brighton-Victoria line to which my hon. Friend refers.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Does the Secretary of State agree that electrifying the Great Western main line would be one way of increasing capacity, especially in south Wales?

[Mr Hammond]

I do not believe that electrification will deliver increased capacity; there is capacity on the main line now. I told the House last week that we will work with the Welsh Assembly Government to build and validate the business case for electrification of the Great Western main line into south Wales. I spoke to the Deputy First Minister late last week, and such work between officials in the two Governments is now ongoing.