Oral Answers to Questions Debate

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Department: HM Treasury
Tuesday 11th December 2018

(5 years, 4 months ago)

Commons Chamber
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Elizabeth Truss Portrait Elizabeth Truss
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It was indeed very good that we were able to give teachers, particularly those on the lowest wages, a 3.5% pay rise this year—the highest pay rise seen for a decade. FE colleges are set up differently. They are independent institutions that have the wherewithal to change the pay for lecturers who work within them.

Priti Patel Portrait Priti Patel (Witham) (Con)
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5. What criteria his Department uses to approve funding for major infrastructure projects.

Lord Hammond of Runnymede Portrait The Chancellor of the Exchequer (Mr Philip Hammond)
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All public spending proposals, including those for major infrastructure projects, are appraised against five key considerations: the strategic case for change, the net value to society of the intervention, the affordability of the proposal, the robustness of delivery plans, and whether a realistic commercial deal can be struck to deliver the proposal. As I announced in the Budget, there will be a zero-based review of capital spending at the spending review next year.

Priti Patel Portrait Priti Patel
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The Chancellor will know that Essex is a gateway for infrastructure and trade from around the world, but he will also know that we sorely lack major infrastructure investment across the county, despite having some very compelling business cases. What will he do to ensure that we can get the investment in for the A12, the A120, and the great eastern main line?

Lord Hammond of Runnymede Portrait Mr Hammond
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First, I acknowledge my right hon. Friend’s tireless work in campaigning to improve infrastructure and boost productivity in the Essex region, including her chairing of the Great Eastern Mainline Taskforce. We expect about £47.9 billion to be spent on the railway nationally between 2019 and 2024. I very much look forward to hearing the outcome of the Great Eastern Mainline Taskforce study. Regarding the A120, the Government are carefully considering Essex County Council’s proposals for a new dual carriageway to ensure that a robust plan is ready should that project secure funding in RIS 2—the second road investment strategy.

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Lord Hammond of Runnymede Portrait Mr Hammond
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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.

Priti Patel Portrait Priti Patel (Witham) (Con)
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T8. Lower taxes and a simplified tax system are crucial to long-term economic growth and competition. Will the Chancellor consider introducing new tax reforms in the future, including a combination of income tax and national insurance, to improve the efficiency of our tax system?

Mel Stride Portrait Mel Stride
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I entirely agree with my right hon. Friend about the importance of low taxes. Under this Government, corporation tax has been reduced from 28% to 19% and will be further reduced to 17%; and through the increase in the personal allowance that was announced in the Budget, we have taken about 4 million of the lowest-paid out of tax altogether. As for my right hon. Friend’s specific point about aligning national insurance and income tax, that is a very complex thing to do. There would be a considerable number of losers, as well as some gainers. However, the Office of Tax Simplification has looked into it in the past, and we will keep it under review.