Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Patrick Grady

Tuesday 2nd July 2019 Commons Chamber

[Patrick Grady (Glasgow North) (SNP)]

2. What discussions he has had with the Secretary of State for Scotland on the economic effect on Scotland of the UK leaving the EU.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

I regularly discuss EU exit with the Secretary of State for Scotland and other members of the Cabinet. The Government remain committed to securing a deal that works for the entire United Kingdom.

[Patrick Grady]

There might be two people competing to be Prime Minister, but I think there are at least five who think they will be the next Chancellor, so perhaps the right hon. Gentleman should just get to stay in post and then they will all be equally disappointed. He seems to be concerned that they are somehow going to ruin his deal dividend, but is not the truth that there is no real dividend from any Brexit, that the best possible deal for Scotland and the rest of the UK is the one we already have, which is membership, and that that is the case that he and other sensible Government Members should have the courage to be making?

[Mr Hammond]

I have consistently made the case and explained to this House that there is fiscal headroom within the current fiscal rules. If we have a smooth exit from the European Union through a transition that will remove the economic uncertainty that is hanging over our economy, it will then be safe to release that headroom and make it available for additional public spending or, at the choice of the next Government, to reduce taxation. Either way, we have the headroom available once we have removed the Brexit uncertainty.

--- Later in debate ---

[Mr Philip Hammond]

We made an announcement this morning about our plans for green finance. Over the coming months and years, it will be essential to demonstrate how we are able to mobilise our capital markets and the instruments of a market economy to deliver on this huge enterprise. If we do not demonstrate how the market economy can provide solutions to decarbonising our economy, there are others with alternative solutions to present.

[Patrick Grady (Glasgow North) (SNP)]

T4. During the Department for International Development estimates debate yesterday, there was a clear consensus across the House that the 0.7% of GDP aid commitment should remain and, for that matter, that DFID should remain an independent Department. Will the Chancellor restate that that remains the whole of Government policy, and does he believe that it should continue to be Government policy after 24 or 25 July?

[Mr Philip Hammond]

As I think the hon. Gentleman knows, that position is enshrined in statute, and only this House of Commons could change it.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Patrick Grady

Tuesday 24th October 2017 Commons Chamber

[Mr Philip Hammond]

Yes. As I said earlier, the UK economy is fundamentally strong. We have the world’s second largest services export sector at a time when emerging economies across the globe are sucking in new demand for services, and we have a global lead in various areas of emerging technology that will drive the fourth industrial revolution. This country has a bright long-term future. Of course we must deal with short-term uncertainty, and of course we must tackle our productivity challenge, but we are fundamentally in good shape.

[Patrick Grady (Glasgow North) (SNP)]

Given that support for a single Scottish police force was in the 2011 Scottish Tory manifesto, can we assume that the Government think that the £280 million VAT fee is a price worth paying, or will they finally see sense and scrap the VAT on Scotland’s fire and police services?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Patrick Grady

Tuesday 29th November 2016 Commons Chamber

[Mr Philip Hammond]

We have done two things. Within the £23 billion that I announced last week to raise the UK’s productivity game is a significant increase in public R and D investment. We also said—we will do this before the Budget—that we would carry out a review of the way that tax support for privately funded R and D works, with the objective of ensuring that the UK is the most attractive place in Europe to do private R and D work. I will report at Budget 2017.

[Patrick Grady (Glasgow North) (SNP)]

T6. The autumn statement shows that, as gross national income falls, so will the total projected official development assistance budget. Can the Chancellor assure us that, within that, the Department for International Development budget will be maintained as much as possible and that, if ODA has to contract, cuts will have to fall on other spending Departments before DFID?

[Mr Hammond]

No, not necessarily at all. We spend our ODA in different ways, and different Departments have relatively small pools of ODA. Of course, the great majority of it goes through DFID. Where GNI contracts and the ODA budget needs to be trimmed accordingly, we will look to take away the lowest-value ODA spending. I think that that is the way the taxpayer would expect it to be done.

Autumn Statement

Debate between Lord Hammond of Runnymede and Patrick Grady

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

I can certainly guarantee that the Transport Secretary will look at it. What I am afraid I cannot guarantee for my hon. Friend is where it will be prioritised in the rail investment programme—as he knows, it is a very long-term programme. What I have done today is announce specific funding for piloting and trials of digital railways. This is another transformative area, because if we can get trains on main line railways running at the kind of headways we are used to on the London underground, for example, we will not need to build expensive additional infrastructure; we will be able to squeeze a lot more juice out of the infrastructure we have, and that is my preferred route forward.

[Patrick Grady (Glasgow North) (SNP)]

In the light of the move to an autumn Budget, will the Chancellor listen carefully to any recommendations from the Procedure Committee about reform of the estimates process, particularly in terms of opportunities for us on Scotland’s Benches to scrutinise Barnett consequentials, which we were told we would be able to do through estimates as a result of the English votes for English laws process that was introduced?

[Mr Hammond]

I will certainly look at the point the hon. Gentleman raises. I do hope he welcomes the move to an autumn Budget. Certainly, one of the considerations when we were looking at this was the way it will interact with the Scottish Government’s Budget, and I hope it will be helpful.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Patrick Grady

Tuesday 25th October 2016 Commons Chamber

[Mr Hammond]

The hon. Gentleman is right to identify financial services as one of the areas that is particularly concerned about the way in which the exit from the European Union is managed, because the industry is particularly dependent on the passporting regime that is in place. He is also right to draw attention to the often overlooked fact that 75% of financial services jobs are outside London. This is an important UK-wide industry.

On the specific points that the hon. Gentleman makes, I have certainly sought to reassure financial services businesses that we will put their needs at the heart of our negotiation with the European Union. We understand their need for market access. We also understand their need to be able to engage the right skilled people. I have said on the record—I am happy to say this again today—that I do not believe that the concerns the British people have expressed about migration from the European Union relate to those with high skills and high pay. The problem that people are concerned about relates to those taking entry level jobs. I see no likelihood of our using powers to control migration into the UK to prevent companies from bringing highly skilled, highly paid workers here.

[Patrick Grady (Glasgow North) (SNP)]

2. What his Department’s objectives are in negotiating double taxation treaties with developing countries.

EU Membership: Economic Benefits

Debate between Lord Hammond of Runnymede and Patrick Grady

Wednesday 15th June 2016 Commons Chamber

[Mr Hammond]

I will just make a little progress if my hon. Friend will allow me.

If we left the EU, the practical consequences of lower trade and lower investment would be felt directly by the British people: fewer jobs and higher unemployment. An estimated 3.3 million jobs in the UK—more than one in every 10—are linked to exports to other EU countries, with 250,000 jobs in Scotland, a quarter of a million in the south-west, half a million in the midlands, and 700,000 in the north. How secure will they be if we vote for Brexit next Thursday? How will the spectre of rising unemployment undermine consumer spending and sap business confidence—to blight, once again, those areas of the country that have been in this cycle all too often?

[Patrick Grady (Glasgow North) (SNP)]

Given the risks to the nations and regions of the United Kingdom that the Foreign Secretary is outlining, and given that the most recent poll shows support for leave in Scotland at only 32%, is he beginning to regret rejecting the SNP’s call for a four-nation lock on the referendum’s outcome?

[Mr Hammond]

No, I am not. This is a very important debate, but we have to use the power of persuasion to win it, not tricks. We have a week to make the case—openly and fairly. We need to let the British people decide, and then, as the hon. Member for Hayes and Harlington said, whatever their decision and however much we may not like it, we have to accept it, abide by it and implement it, and that is exactly what we will do.

Over 100,000 British businesses export to the EU. The future of every one of them—and of every person who works for them—will be put on hold if next Thursday there is a vote to leave. Will they be able to maintain access to their markets? Will they face tariffs? Will their customers hedge their bets and take their business elsewhere, just in case? It is difficult to see how even the most upbeat Brexiteer could not see that we are likely to face months, years and perhaps a decade of confidence-sapping, investment-eroding, job-destroying uncertainty that will take this country back to the dark days of 2008, and I for one never want to go there again.

Libya

Debate between Lord Hammond of Runnymede and Patrick Grady

Tuesday 19th April 2016 Commons Chamber

[Mr Hammond]

I was Defence Secretary at the time, so I well remember the plans for training at Bassingbourn. As the hon. Gentleman says, it did not end well, and the Libyans are acutely conscious of that. This would be a very different operation in very different circumstances. There are no plans yet, and there has been no request, so I am afraid that I cannot give the House any further information about what such a training programme might look like or where it would be conducted, but I can give him an assurance that the lessons of what happened at Bassingbourn have been taken on board by the Ministry of Defence and will be properly factored into any future plan.

[Patrick Grady (Glasgow North) (SNP)]

If spending 13 times as much on bombing Libya as on reconstructing it is not one of the Prime Minister’s worst foreign policy decisions, I wonder whether the Foreign Secretary could tell us what is. Of the £10 million announced today for the conflict security fund, how much will be counted as official development assistance, how much will be counted towards the NATO 2% target, and how much will be counted towards both?

[Mr Hammond]

I do not think that Libya qualifies for ODA because of its GDP per capita, but if I am wrong about that I will write to the hon. Gentleman and place a copy of the letter in the Library.

European Affairs

Debate between Lord Hammond of Runnymede and Patrick Grady

Thursday 25th February 2016 Commons Chamber

[Mr Hammond]

The Prime Minister gave a commitment to go to Brussels, to negotiate hard and to bring back the very best deal that he could achieve. That is what he has done. I think that people will look in the round at the commitments that were made and what has been delivered. In the end, it will be the British people who give their verdict on that package.

[Patrick Grady]

The Foreign Secretary has talked many times about the opinions of the British people, but does he not accept that there is a divergence of opinion across the United Kingdom, with a clear majority in Scotland in favour of remaining in the EU and considerably more sympathetic to the European project? I grew up in the Scottish highlands, where there are bridges and roads that simply would not exist without the gold-starred blue flag pinned alongside them. There is a lot more sympathy and appreciation among the people of Scotland for the positive things that the European Union has achieved.

[Mr Hammond]

This is a UK-wide question and a UK-wide referendum. I sincerely hope that when the dust has settled and the counting is done, the hon. Gentleman will discover that a significant majority of people across the United Kingdom believe that Britain is better off, stronger and safer inside the EU. When the debate plays out, however, I hope he has a stronger argument than, “They bunged us a few quid to build a road”, because, frankly, that is not a sustainable argument across the European Union as a whole.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Patrick Grady

Tuesday 23rd February 2016 Commons Chamber

[Mr Philip Hammond]

We should be alert to Russia’s aggressive actions in former Soviet Union countries wherever they are, not just in Ukraine. Arguably, we were too slow to recognise that what was happening in Georgia was the beginning of a new dimension to Russian foreign policy, and we should resist it robustly wherever it arises, and push back against it wherever we can.

[Patrick Grady (Glasgow North) (SNP)]

T6. Will the Secretary of States confirm whether his discussions with the United States about Libya have included the possibility of UK military action, and that there will be no UK military action in Libya without approval from this House?

Daesh: Syria/Iraq

Debate between Lord Hammond of Runnymede and Patrick Grady

Wednesday 16th December 2015 Commons Chamber

[Mr Hammond]

This is about de-confliction. It is about ensuring that we are not flying our aircraft in the same bit of airspace where, inadvertently or by accident, they might come into conflict with others. That has been working well. In fact, coalition aircraft and Russian aircraft are generally operating in different areas. Of course, the situation with regard to Turkey is different. The Turkish aircraft in question in the incident that the hon. Gentleman refers to, which tragically led to the death of a Russian lieutenant colonel, the pilot, were defending Turkish airspace. It was a routine air defence patrol of the type that we fly in the UK, and we would be in the same position if our airspace was threatened or challenged. The de-confliction of airspace for operations between the coalition and Russia is working well, but the conflict—the tension—remains along the border, where Turkish aircraft are flying in their airspace and Russian aircraft are flying in Syrian airspace. We are all extremely keen to see any risks in that area de-escalating, and we are working hard to achieve that.

[Patrick Grady (Glasgow North) (SNP)]

The Foreign Secretary says that a minimum of £1 billion has been put aside for reconstruction. Is that a blank cheque, and, if so, what alternatives is it at the expense of? What needs analysis is that figure based on? What plans exist for spending it, and over what timescale?

[Mr Hammond]

I do not think it is a blank cheque: it says on the top line, “People of Syria”, and on the next line, “£1 billion”, so it is clearly not a blank cheque. The Prime Minister has made it clear that we are going to remain committed to the Syrian people through this conflict, through the formation of a transitional Government and in the rebuilding of their country after the creation of that transitional Government and the end of the conflict. He made it very clear in the debate two weeks ago that £1 billion is not the limit of our support for the Syrian people; it is a first instalment to which we have committed.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Patrick Grady

Tuesday 20th October 2015 Commons Chamber

[Mr Hammond]

I am happy to agree with the right hon. Gentleman that co-operation between states is the right answer. Unfortunately, however, that is not what happens when competences are ceded to the EU, which results in dictation to states by the European Union. That is a distinction that he would be well advised to study.

[Patrick Grady (Glasgow North) (SNP)]

2. If the Government will invite a Minister of the Scottish Government to join the UK delegation to the Paris climate change conference in December 2015.