Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Rachel Reeves

Tuesday 3rd July 2018 Commons Chamber

[Mr Hammond]

Yes. Female employment is indeed vitally important, and it has grown to a record high of 71.3%. As the labour market tightens, it is not just fair for us to make it possible and attractive for women to take part in the workforce; it is absolutely essential from an economic point of view. Dealing with any concealed discrimination is key to making it possible for women not only to enter the workforce, but to progress within the workforce to highly paid and rewarding jobs.

[Rachel Reeves (Leeds West) (Lab)]

One way to reduce unemployment is to encourage self-employment, and 4.8 million people are now self-employed. While that is welcome, there is a real problem of bogus self-employment, which is costing workers their rights and depriving the Treasury of tax revenue. Next week it will be a whole year since Matthew Taylor published his review “Good work” for the Government. When will they finally implement his recommendations and crack down on bogus self-employment?

[Mr Hammond]

The hon. Lady is right on both counts. Self-employment is an important contributor to our economy and genuine self-employment is very much to be encouraged, but there is a problem of bogus self-employment. People who are essentially employed are not paying the proper taxes and operating according to the proper rules for people who are employed, and in some cases employers are concealing the employment of people for their own selfish reasons. We need to deal with both those counts.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Rachel Reeves

Tuesday 22nd May 2018 Commons Chamber

[Mr Philip Hammond]

Yes.

[Rachel Reeves (Leeds West) (Lab)]

The cap on charges on payday loans legislated for by Parliament has made a huge difference in bringing down the costs, but it is now more expensive for a person to go into an unarranged overdraft at their own bank. Will the Government look to extend that legislation to cap also the rip-off fees and charges put on customers by our banks?

Spring Statement

Debate between Lord Hammond of Runnymede and Rachel Reeves

Tuesday 13th March 2018 Commons Chamber

[Mr Hammond]

It is always a pleasure to hear from my right hon. Friend. We are absolutely not complacent, because there are many challenges as well as opportunities ahead of us, but we have a plan to embrace the opportunities and rise to the challenges. This country has many advantages that our neighbours would give their right arm to enjoy. We must go forward robustly and in good heart to seize those opportunities and make the best of them for the future. On his specific point, of course in the forthcoming Budget we will look at taxation and spending over the future period. The OBR, of course, will decide what to present in its report to the House. He will have an opportunity to question OBR officials about their approach when they appear before the House shortly after the Budget statement.

[Rachel Reeves (Leeds West) (Lab)]

Consumer credit has risen by 9% over the past year, and the ratio of household debt to income, at 138%, is rapidly approaching a level not seen since before the financial crisis. With interest rates now forecast by the OBR to rise faster than we previously envisaged, are we not asking consumers to keep the wheels on the road for the economic recovery? Is that sustainable, and is that the right thing to do?

[Mr Hammond]

The hon. Lady is right to raise this issue. It is something we keep under constant review, and I talk regularly with the Governor of the Bank of England about personal debt. She will probably know that personal household debt rose in all but one of the 13 years of the Labour Government, and it is now lower than it was before the financial crisis. The judgment of the authorities at the moment is that household debt levels are sustainable, but she is right to draw attention to it. It is something we keep under close review.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Rachel Reeves

Tuesday 27th February 2018 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

It is now two years and two months since the Boxing day floods hit much of Yorkshire, including my constituency. Kirkstall in Leeds is no better protected from floods than it was on Boxing day 2015, and the Government still have not signed off money for the phase 2 Leeds flood alleviation scheme. When will that happen? The scheme is urgently needed to protect my constituents and local businesses from devastating floods such as those that we have already experienced.

[Mr Hammond]

My constituency has also been affected by flooding, and some of the responses are major engineering projects that take time to develop. The Department for Environment, Food and Rural Affairs and the Environment Agency have funding for flood relief projects, but those developments have to be prioritised and worked up into proper business cases. I will look at the specific case the hon. Lady raises and, if I may, I will write to her and place a copy of my letter in the Library of the House.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Rachel Reeves

Tuesday 18th July 2017 Commons Chamber

[Mr Philip Hammond]

I agree with my hon. Friend. The UK will have increased the tax-free personal allowance by over 90% compared with 2010, completing a decade of sustained tax cuts for working people. Over 31 million taxpayers will pay less tax in 2017-18, including 3 million taxpayers in the north-west. Since 2010, more than 4 million taxpayers have been taken out of income tax altogether.

[Rachel Reeves (Leeds West) (Lab)]

Personal contract purchase plans for financing cars have gone up by 394% in the past five years, and the Governor of the Bank of England has said that we are failing to learn the lessons of the past when it comes to easy credit. What action is the Chancellor taking to ensure that lending is affordable and does not pose a risk to the wider economy?

Economy and Jobs

Debate between Lord Hammond of Runnymede and Rachel Reeves

Thursday 29th June 2017 Commons Chamber

[Rachel Reeves]

The Chancellor seems to be more interested in talking about what is in the Labour manifesto than about what is in his own Government’s Queen’s Speech. Is that because there is so little about the economy in the Queen’s Speech, or is it because he does not believe in it?

[Mr Hammond]

No; it is because I am about to come to it. The shadow Chancellor talked about his programme, and I wanted to make the simple point that, for all the rhetoric about somebody else paying, it is always the same with a Labour Government: it is always ordinary working people who pay, through higher taxes, higher prices and fewer jobs.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Rachel Reeves

Tuesday 18th April 2017 Commons Chamber

[Mr Hammond]

My hon. Friend has made the case for free ports, and the Government have heard that case very clearly. We will consider all options that have the potential to support our ambition to see Britain as a great global trading nation, but before making any decisions we shall need to consider carefully not only the advantages that free ports can deliver, but the costs and potential risks associated with them.

[Rachel Reeves (Leeds West) (Lab)]

If towns and cities in our economy—including those in the north of England —are to flourish, we need banks and building societies that support them. Does the Chancellor agree that those banks and building societies should keep their branches open? Leeds Building Society has just announced that it will close its branch in Armley Town Street, which is in my constituency, following the closure of branches of HSBC and Yorkshire Bank in the last two years.

[Mr Hammond]

Of course we want there to be a viable branch banking network across the country, but we must recognise that the nature of banking is changing. More and more of us are using online digital banking, and that is bound to be reflected in the configuration of the branch networks that the banks operate.

Class 4 National Insurance Contributions

Debate between Lord Hammond of Runnymede and Rachel Reeves

Wednesday 15th March 2017 Commons Chamber

[Mr Hammond]

My hon. Friend is absolutely right: it is about the environment being conducive to people starting and running small businesses. I congratulate those in Rossendale who do that—who get up every morning and who are prepared to take those risks. They will now benefit from the abolition of class 2 national insurance contributions, making them that little bit better off.

[Rachel Reeves (Leeds West) (Lab)]

Will the Chancellor confirm when the decision to make this U-turn was made? Is not the truth that this was the Prime Minister’s decision, not his?

[Mr Hammond]

Clearly, that is the story the hon. Lady would like to believe, but, unfortunately, it is not true. As Members would expect, I have been discussing the Budget and these issues with the Prime Minister since last Wednesday, just as I have discussed them with many colleagues over the weekend, and we have had several meetings over the last few days. The final decision to make this announcement to the House was made this morning—just after 8 o’clock—and I have come here at the earliest reasonable opportunity to inform the House.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Rachel Reeves

Tuesday 28th February 2017 Commons Chamber

[Mr Hammond]

Yes. I welcome those investments by large companies, which will bring a large number of jobs to the area. It is also important that we support small and medium-sized enterprises, and the northern powerhouse investment fund will have a specific remit to target and support smaller businesses across the north.

[Rachel Reeves (Leeds West) (Lab)]

Fourteen months after the devastating Storm Eva floods, it is welcome news to people in Kirkstall that the Sheesh Mahal restaurant will reopen tomorrow. However, many other businesses in my constituency are still struggling with astronomical increases in the costs of insurance and we still do not have a date for having proper flood defences in my constituency. What assurances can the Chancellor give businesses in my constituency that he has not forgotten about us?

[Mr Hammond]

As I have said, we have put additional money into flood defence spending, but—notwithstanding the reopening of the Sheesh Mahal restaurant—I take on board the hon. Lady’s comments about the delay that others are experiencing and I will look at the facts.

Autumn Statement

Debate between Lord Hammond of Runnymede and Rachel Reeves

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

My hon. Friend has been kind enough to come to see me over the past few weeks to make some suggestions in this area. I did announce in my statement that the Treasury will conduct a review of the availability of patient capital in this country, and I include in that genuine individual investment in start-up businesses and how we make sure that that is incentivised to stay in for the long haul. I thank him for his input and we will look at this further.

[Rachel Reeves (Leeds West) (Lab)]

May I start by associating myself with the comments made by the Chancellor and the shadow Chancellor about the verdict in the Jo Cox trial? I hope that the whole-life sentence for Jo’s murderer can at least give some comfort to her family at this incredibly difficult time, and will also enable us to remember Jo for the way she lived, rather than the way she was murdered.

May I ask the Chancellor about the changes to universal credit that he announced today? The taper rate will now be 63p in the pound, which means that for every additional pound earned, the recipient of universal credit will lose 63p. That marginal tax rate is three times higher than the basic tax rate. Does he honestly think that sufficiently rewards work and encourages people to take on those extra hours that we all want them to do?

[Mr Hammond]

Again, I associate myself with the hon. Lady’s remarks. I am sure that she is right that the entirely sensible sentence that has been handed down will be a source of some comfort to the family.

The hon. Lady asks whether the taper rate is a disincentive or an incentive to work. Of course the lower the taper rate, the greater the incentive to work—I readily recognise that. I said in my statement that I had listened carefully to representations about doing something in this area and balanced those against my judgment about our fiscal capacity. I have funded every single spending commitment made today. If we had gone further than 63%, we would have had to raise more money somewhere else, and I judged that at the present time that was not the right thing to do. I also gently remind her that 65%, never mind 63%, is a lot lower than a marginal withdrawal rate of 90%, which was what many people were facing under the tax credits system.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Rachel Reeves

Tuesday 25th October 2016 Commons Chamber

[Mr Hammond]

I reassure my hon. Friend that that is not the case. North-east Lincolnshire is very much a focus of the Government’s attention. We have agreed growth deals with the Humber local enterprise partnership worth more than £110 million, including support for a regeneration programme for the centre of Cleethorpes. I am sure that one of my ministerial team will be very happy to meet him and his council colleagues.

[Rachel Reeves (Leeds West) (Lab)]

The floods in Yorkshire, including in Leeds, last Boxing day caused devastation, and many businesses have still not reopened. What conversations is the Chancellor having with insurance companies, which have restricted cover, increased premiums and put up excesses, thereby not only risking creating ghost towns in many of our communities, but risking jobs, too?

[Mr Hammond]

That is a matter on which my right hon. Friend the Minister for the Cabinet Office leads, but I have a considerable understanding of the problem, as my own constituency was subject to serious flooding in 2013-14. I will talk to my right hon. Friend and make him aware of the hon. Lady’s concerns.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Rachel Reeves

Tuesday 19th July 2016 Commons Chamber

[Mr Hammond]

We have no plans to announce any changes to the business rate plans that are already in place.

[Rachel Reeves (Leeds West) (Lab)]

The Government have announced that they are going to give £375,000-worth of banking fines to the Jo Cox fund that was set up by her family and friends to support charities that mattered to her. That fund has already raised £1.5 million in just a month. May I welcome the Government’s decision to allocate banking fines to support that fund? Will the Chancellor join me in encouraging people to give to the fund, which supports the White Helmets, Hope Not Hate and the Royal Voluntary Service?

[Mr Hammond]

I am delighted to join the hon. Lady in making such an appeal. I am glad that the Government have been able to support this very valuable fund in memory of Jo Cox, and I am sure that members of the public, seeing the Government contribution, will now want to redouble their efforts to support it.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Rachel Reeves

Thursday 27th January 2011 Commons Chamber

[Mr Hammond]

The hon. Lady is hinting at the fact that, at the moment, far too much time and energy in the rail industry is spent on allocating blame for things that have happened rather than on working out how to prevent them from happening in future. We believe that aligning the financial interests of the train operators and the infrastructure operators, so that they both have a stake in positive outcomes for passengers, is the way forward. We will await Sir Roy McNulty’s final recommendations and set out our proposals for the reform of the industry on that basis.

[Rachel Reeves (Leeds West) (Lab)]

In west Yorkshire, rail fares are set to go up by the retail prices index plus 5% from next year, which is the biggest increase in the country and 2% higher than in other areas. What will the Secretary of State do to avert those crippling hikes for people in Leeds and the rest of the region?

[Mr Hammond]

I cannot avoid the increases in prices to which the hon. Lady refers. They are partly driven by specific increases in rolling stock to alleviate overcrowding in the area. In the medium term, as I said in answer to the previous question, we must drive efficiency in the rail industry, and ensure that the cost base of our railway becomes comparable with those of other European countries, so that the upward pressure on fares can be alleviated.

Transport (Investment)

Debate between Lord Hammond of Runnymede and Rachel Reeves

Tuesday 26th October 2010 Commons Chamber

[Mr Hammond]

Where local authorities wish to impose workplace parking levies, they need the Secretary of State’s approval under current legislation. It is, of course, up to local authorities to promote such schemes if they feel that they are appropriate for their areas, but I have said recently that I would expect any further schemes proposed to me to demonstrate that they have properly and effectively consulted local businesses and addressed any proper concerns raised by local businesses during those consultations. So perhaps my hon. Friend can feed that back to Bristol city council.

[Rachel Reeves (Leeds West) (Lab)]

The Leeds rail growth package included a new railway station at Kirkstall Forge. Half of the money was to come from the private sector and would have facilitated private sector housing and business development, bringing hundreds of jobs and homes to one of the most deprived parts of the city. Why has the scheme, which the right hon. Gentleman says is good value for money, been sent back to the drawing board, with devastating prospects for jobs and homes in my constituency?

[Mr Hammond]

Dear, dear, it must be my ears again. I did not hear the hon. Lady mention the Leeds station southern access scheme, which has been approved—[Interruption] If I may say so to the hon. Lady, when one’s constituency is in a city, I think one will find that the effects of transport infrastructure improvement are a little wider than the narrow boundaries of a single constituency. Leeds station southern access scheme has been approved, and two further Leeds schemes, the Leeds rail growth package and the Leeds new generation transport scheme, have been included in the development pool, where we will work with the local authority to look at how we can ensure value for money and get the schemes into the best and most competitive form that they can be, after which we will make a decision on the allocation of the scarce capital that is available. I want to remind the hon. Lady one more time that the transport capital budget has been reduced by 11% for the next four years. The Government formed by her party before the last general election proposed to reduce capital spending by 50%.