Oral Answers to Questions
Priti Patel Excerpts(5 years, 2 months ago)
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Mr Hammond
Both. Of course we want to encourage active travel—cycling and walking—particularly in cities where that is the most appropriate response to dealing with the twin challenges of congestion and air quality. Sheffield has benefited from funding that will allow it to enhance the offer to walkers and cyclists.
Priti Patel (Witham) (Con)
Over the last decade, we have seen a 25% increase in the number of enterprises in the fantastic county of Essex. That is despite our crumbling infrastructure and our roads. May I make an urgent plea to the Chancellor to support and invest in the two economic arteries that go through the heart of Essex and the Witham constituency—the A12 and the A120?
Mr Hammond
This is probably not the first time that my right hon. Friend has asked me about those two roads. She is a formidable champion of the transport infrastructure that runs through her constituency; I congratulate her on that. As I have just announced, we have made a commitment to hypothecate all road tax to the national roads fund. That will make a record amount of funding available for road projects in the next period.
Oral Answers to Questions
Priti Patel Excerpts(5 years, 3 months ago)
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Robert Jenrick
I would be very happy to meet the hon. Lady. We are continually pressing the Payment Systems Regulator and the LINK organisation, which manages the ATM network, to ensure a good supply of cash in all parts of the country. We recently issued a call for evidence at the Treasury to give greater consideration to how we can maintain that supply as we move to an increasingly cashless society and protect those who are vulnerable and harder to serve, perhaps including the hon. Lady’s constituents.
Priti Patel (Witham) (Con)
The Minister will know that Essex is the county of entrepreneurs. How are the Government supporting more small business creation, alongside new housing schemes such as the garden settlements that are proposed for the great county of Essex?
Robert Jenrick
I concur with everything my right hon. Friend has said. This is of course a country of entrepreneurs. All our most recent statistics have shown that the UK is attracting entrepreneurs from around the world. We are the third leading destination in the world, after the US and China, for inward investment. That is not happening by accident; it is happening as a result of the pro-business policies of this Government, creating the most globally competitive tax regime and investing in our productivity.
Mr Hammond
If the right hon. Gentleman believes what he has just told the House, he should get off his backside and get the Leader of the Opposition off his backside, and they should get themselves over to Downing Street to sit down and engage with the Prime Minister so that we can solve this problem in the national interest.
Priti Patel (Witham) (Con)
Mr Speaker
There is a lot to be said for Essex. The right hon. Lady and I can agree about that.
Oral Answers to Questions
Priti Patel Excerpts(5 years, 5 months ago)
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Elizabeth Truss
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 (Witham) (Con)
The Chancellor of the Exchequer (Mr Philip Hammond)
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
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?
Mr Hammond
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.
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.
Priti Patel (Witham) (Con)
Mel Stride
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.
Taxation (Cross-border Trade) Bill
Priti Patel ExcerptsMonday 16th July 2018
(5 years, 10 months ago)
Commons ChamberRead Full debate Taxation (Cross-border Trade) Act 2018 View all Taxation (Cross-border Trade) Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 16 July 2018 - (16 Jul 2018)
Priti Patel (Witham) (Con)
I rise to speak to new clause 36, tabled in my name and those of other right hon. and hon. Members. I want to be clear that a strong deal that delivers a new equal partnership between the UK and the EU based on co-operation to advance mutual interests while respecting the sovereignty of this country is of course in everyone’s interests. This is also a golden opportunity for our country to become a free and independent nation, setting up its own laws and in control of its own destiny. I do not think that anyone in this House would disagree with that. We understand that the Government are engaged in the negotiating process and that all negotiations require a degree of give and take. There are of course certain red lines that cannot be crossed, as is being made clear in the debates that we are having right now and in the proposals that we are taking to the European Union.
New clause 36 cements into legislation the principle of reciprocity. It is clear and unambiguous. It was disappointing to see that the White Paper did not commit to that principle. The proposal in the White Paper does not deliver an equal partnership. It delivers one that does not put us on a level playing field. Because it states that
“the EU would need to be confident that goods cannot enter its customs territory without the correct tariff and trade policy being applied”,
we would effectively adopt much of that policy and collect tariffs on behalf of the EU.
However, the White Paper then states that
“the UK is not proposing that the EU applies the UK’s tariffs and trade policy at its border for goods intended for the UK.”
We are therefore being asked to pass legislation that would mean that while the Government can agree with the EU to collect taxes for it and provide assurances about goods entering the UK that are heading to the EU, we would not expect the same arrangements to be provided by the EU in return. Why are we planning to give the EU assurances and confidence that we do not expect in return?
Paul Masterton (East Renfrewshire) (Con)
Will my right hon. Friend confirm whether it is her view that new clause 36 conflicts or is in line with Government policy, as per the White Paper published last week?
Priti Patel
I just made the point that it was disappointing that the principle of reciprocity was not in the White Paper. My hon. Friend has already heard me say that I want an equal partnership, but what has been proposed is not equal. It is yet another compromise with nothing in return.
The Government have the chance to address that by backing new clause 36. The EU would then know that it cannot attempt to steamroller the Government on this issue in the negotiations and that if it wants to benefit from the UK collecting its tariffs, it needs to adopt a similar reciprocal arrangement.
Thus far, the Government have negotiated in good faith with the EU. We have been open, transparent and have already made many compromises and concessions, which is only right and fair. Within a week of taking office, the Prime Minister gave up our turn to the hold the EU presidency in the second half of 2017 as a gesture of goodwill. We offered a guarantee on citizens’ rights as early as possible, but the EU would not accept it. We have offered £40 billion of British taxpayers’ money, yet the trade deal that would benefit this country and the EU has been blocked by EU officials, who are, quite frankly, not engaging with us.
As we progress to the next stage of the negotiations on the future of the UK-EU relationship, Britain needs to be an equal partner with the EU, not its tax collector. New clause 36 would ensure that genuine reciprocal arrangements are established and would put it into law that the UK will not be part of an EU VAT regime and that Northern Ireland will be treated the same as the rest of the UK. We propose putting into law as a safeguard what the Government have said they want.
The public want to know that their political leaders will stay true to the promise made to them that Brexit means Brexit and that we are putting plans in place for our nation’s economic and political renewal, so the Government need to have the desire to modify their proposals and listen to the public.
Several hon. Members rose—
Mr Speaker
The right hon. Lady used commendable brevity, upon which I congratulate her.
A120 Dualling
Priti Patel Excerpts(5 years, 11 months ago)
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Priti Patel (Witham) (Con)
It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank my colleagues for securing this important debate. It is a debate that gives me déjà vu, as I have previously held and spoken in a number of debates on this very road and on strategic infrastructure in Essex over the last eight years, in 2012, 2013, 2014 and 2015. Once again, the walls of Westminster Hall are about to hear the economic case for the A120.
As my hon. Friend the Member for Braintree (James Cleverly) has already outlined, the A120 is an economic corridor stretching from the international port of Harwich in the east, which has trade links across northern Europe and serves around 700,000 passengers a year, to Stansted airport in the west, an important international airport that is growing and expanding, and is a huge employer both in Essex and now also in parts of Hertfordshire.
The A120 is important to our economy; in my view and, I think, all our views, it is even more important to the United Kingdom because of the connectivity for the east of England. Research from the brilliant Essex chamber of commerce, a great champion of strategic infrastructure improvements across Essex that has campaigned and worked with the business community, has shown that 56% of Essex businesses that responded to its survey regularly use the A120. Only the A12 at 82% and the M25 at 72% were used more than the A120. However, the Government know, and have heard not just from me but from successive Members of Parliament from the east of England over the last decade and more, that the A120 is not fit for purpose. It needs investment to unlock future economic growth and jobs.
The A120 is also a dangerous road. I remember standing here in this Chamber in 2010, denouncing the A120 for being the 10th most dangerous road in the country. The number of fatalities and road accidents that take place on the A120 is simply appalling. In particular, the 12-mile stretch of carriageway between Braintree and Marks Tey has the greatest number of problems. This stretch of the road, which runs mostly through the Witham constituency, is one of the 10 most dangerous in the country. The accidents and fatalities are appalling. Figures produced in 2005 showed up to 25,000 vehicles using that stretch of the road every day, when single-carriage roads should usually carry up to around 20,000. Data published by the Department for Transport in 2010 on annual daily traffic flow suggested that 14% of vehicle movements on the A120 are accounted for by heavy goods vehicles, compared with an average of 6% across Essex. Too many people are getting hurt and injured on this road.
Likewise, too many businesses are haemorrhaging money while they are stuck in delayed traffic. The Minister will know—I do not think anyone in Government needs to be reminded—that Essex is an economic engine and the county of entrepreneurs. Since 2010 the number of entrepreneurs in the county has risen by 25%, from 52,000 to 64,000 and, as the county contributes £40 billion in gross value added to the economy, the economic case for investment in the A120 more than stacks up.
Back in 2008, proposals were put forward to dual the A120 so that we could meet new demands and sort out its dangerous nature; but as the last Labour Government trashed the economy they also spent a lot of time ignoring Essex, and the scheme was scrapped. Since then, colleagues and I have been campaigning with the Essex chambers of commerce, local businesses and the county council to get this back in the Government’s in-tray, so I was delighted when the Government and Essex County Council agreed a joint funding package to examine once again the feasibility of upgrading and dualling the A120.
Earlier this month, after route option selection, consultation and considerable analysis and assessment, Essex County Council announced its favoured route, known as route D. This route provides the best benefit to cost rate, at 3.75, of the options considered, and is less disruptive to the environment and existing settlements than other routes. It will also help to take traffic out of villages in my constituency, including Silver End and Bradwell, and could save travel time between Colchester and Braintree in the rush hour. Importantly, it will also be a safer route.
The proposal will bring the A120 from the location known as Galley’s Corner—we call it something else that I will not repeat here—through to a new junction with the A12 south of Kelvedon. I appreciate that the favoured route may still have its critics and that, as the proposals progress further, many other issues will need to be addressed, but our county has waited too long for road investment, for this road to be invested in, and for this strategic improvement to take place. We want to see clear action and leadership when it comes to investment in the A120. That means including the A120 in the second road investment strategy process, RIS2.
To make further progress, more work by Government and further work by Highways England is required. It will come as no surprise to our colleague the Minister that I will continue to press this case, as will all colleagues. While I appreciate that the Minister cannot prejudice the RIS2 process and the selection and prioritisation of routes for investment, the Department will have files, which I have no doubt are substantial, on the economic benefits of investment in the A120 and of the gross value added and the return from investing in Essex.
In discussions with the Treasury over the funding envelope of RIS2, it is fair to say that the Department for Transport can be confident in the economic case, which is part of a strong business case. The current cost estimate is around £555 million, which is an enormous sum. However, we do not speak enough about aggregate returns on investments, and we are talking about a strategic location that supports exports, trade and investment. Upgrading the A120 at the earliest opportunity will bring greater resilience to the economy, to the region and to our country.
Peter Aldous (Waveney) (Con)
Does my right hon. Friend agree that, when making the business case, it is important to look not only at Essex but at Suffolk? This road is vital to my constituency—connectivity is vital in attracting inward investment—and investing in it will very much help to attract investment to Suffolk, where significant plans are afoot for investment in the energy sector, both at Sizewell and in the offshore wind farms.
Priti Patel
My hon. Friend is absolutely right. Delivering route D will provide £1.1 billion in GVA through new jobs, businesses and housing. It is important that, when looking at the work that we do on transport across our region—on rail, for example—we put forward a coherent business case to the Government for that very purpose. We are an attractive part of the country and we have different sectors that are expanding and growing.
To be up front about this, when we think about our trading options and the economic benefit to the eastern region post Brexit, investing in our roads will enormously benefit Suffolk, Norfolk and Essex. That brings me to asking the Minister to look into not only the A120 but the widening scheme for the A12, which is linked to the A120—these roads cannot be seen in isolation. A failure of successive Governments in the past has been to look at transport and roads as a singular and not a plural, in terms of having an integrated transport strategy.
The Government have already committed to widening parts of the A12 in a three-lane carriageway scheme. Most of the first section to be upgraded—the stretch between the junction 19 Boreham interchange at Chelmsford and junction 25 at Marks Tey—runs through the Witham constituency and is parallel to the great eastern main line. That widening scheme was subject to a consultation by Highways England last year and we are expecting an announcement of the route and the sections to be re-routed.
However, Colchester Borough Council has unfortunately put a spanner in the works at the last minute, as part of its local plan process. I am mindful that I, other colleagues, Highways England and local councils put forward proposals for the A12 widening scheme—announced back in 2014—that would not be compromised by any work taking place with the local plans. We had that assurance from Highways England and the Department. That widening scheme needs to be re-established alongside the configuration with the A120, and all the councils must be clear with Highways England and the Department. We need to ensure that we again have an integrated approach to the development of our road transport links across Essex and to the facilitation of transport investment across the eastern region.
Essex needs the A120 to be upgraded and the A12 to be dualled. I hope that the Minister can answer fully today. As I said, her Department will have plenty of detailed engagement, work, correspondence and all the files from over the last decade on this, so there is no excuse for the Department not to put forward a coherent approach. The point to make today is that, when it comes to the A120, this is a huge, once-in-a-lifetime opportunity to use RIS2 to be much more strategic and to have an integrated roads strategy for the east of England and for Essex.
Will Quince
I thank my hon. Friend for that intervention; I could not agree more. I have touched on the international airport and the port, but there is so much more. Colchester, which is sandwiched between those two important infrastructure projects, is hugely important in terms of business growth. The University of Essex, which is just across in the constituency of my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) but hugely important to both our constituencies, is growing and contributing to huge amounts of business growth; it is attracting businesses to the area.
We know that this is coming. There are plans, as part of the garden settlement movement—that is a debate for another day—for a business park larger than the biggest business park, in Cambridge. If we get it right and if we get the transport infrastructure piece right, this will be a prosperity corridor, stretching from Stansted airport to the port of Harwich, and we can benefit from that.
Priti Patel
Does my hon. Friend share my view that there is an opportunity through investment in the A120 but also our wider road network—and, in fact, our railway lines—when it comes to the wider transport and infrastructure approach, and that Departments should be working in a much more joined-up way? He has already touched on planning; this is a question of the Ministry of Housing, Communities and Local Government, the Treasury and the Department for Transport working on a holistic and coherent case.
Will Quince
I thank my right hon. Friend for that intervention. I could not agree more that we do not have a holistic approach at the moment and, as a result, people are not seeing the bigger picture and the prize that is on offer.
Ms Ghani
My hon. Friend mentioned the phrase “slap in the face” a number of times; I am not sure how I can respond to that. However, the Labour party is not even putting this scheme on the drawing board; it will not even consider it. No doubt, that will be absolutely frightening for hon. Members’ constituents to hear.
I do not want to prejudice the outcome of the road investment strategy 2 process, but I hope that what I will go on to say later in the speech will provide some succour to the Members who are here today and their constituents. However, I was surprised just as much as my hon. Friend was that the Labour party will not even consider this scheme in the future.
In December 2014, the Government launched the first road investment strategy—RIS1—which outlines how £15.2 billion will be invested in our strategic roads between 2015 and 2021. This is the biggest upgrade to our strategic roads in a generation. It includes the widening of the A12. Many Members said we need to approach this work holistically: my right hon. Friend the Member for Witham; and my hon. Friends the Members for South Suffolk, for Braintree, for Colchester (Will Quince) and for Chelmsford (Vicky Ford). They understood that both these schemes—for the A120 and the A12—need to be linked, so I will just touch on the A12 first.
The proposed work will include the widening of the A12 between junction 19 at Chelmsford and junction 25 at Marks Tey, where the A12 currently joins the A120. We have also provided funding for smaller scale safety improvements. On the A120 east of the A12, at the Hare Green junction with the A133 to Clacton, Highways England has commenced construction of a new £3 million roundabout to improve road safety. Work there is expected to be concluded by the end of this year.
The Government continue to invest in improvements to rail infrastructure in Essex and Department officials continue to work closely with local partners to identify local transport improvements. The South East local enterprise partnership, which includes Essex, has secured £590 million from the three rounds of the local growth fund, supporting projects, including transport schemes, that facilitate economic growth and housing. It has enabled key schemes in the county to be taken forward, such as an investment of £16 million towards improvements on the A127, and an investment of over £70 million towards the widening of the A13 in Thurrock. Both those routes are seen as key routes in Essex.
We recognise the importance of the A120 as a key part of the wider transport network, including all the other benefits that it brings, such as tourism, housing and business. The A120 is a key east-west route connecting areas across the region from the port of Harwich to Stansted airport. It links the east of England to the midlands and the north, so is of national as well as regional importance.
The single carriageway section between Braintree and the A12 near Colchester is currently a bottleneck on the route. Heavy traffic is a burden on the towns and villages that it passes through. That is why we have provided £4 million to Essex County Council as a contribution to the development work for the proposed improvement scheme. I am very grateful to the council for the excellent work it has done to develop these proposals and take them through a non-statutory public consultation on a range of options.
The proposed scheme would support the plans for new housing and growth in the area, in particular the proposed development at Marks Tey. This will boost the economy in Essex and beyond. It will complement the widening of the A12 between Chelmsford and Marks Tey, which we are currently developing as part of RIS1.
Priti Patel
I thank the Minister for being very generous both in her remarks and in giving way. She touched on the A12 widening scheme, and I want to re-emphasise my earlier point on that. That road’s development has been put on hold because of the development of the local plan in Colchester. We were told that categorically about five weeks ago, having previously been told that all planning factors had been considered. I know that the Minister responding to the debate is not the Minister for roads, but perhaps her officials will take away that I would like a meeting with that Minister and with Highways England to find out what on earth is going on. It seems crazy to advance the A120 without the A12. We need to integrate much more this whole way of working, and I again make my plea that all three Departments I named earlier come together on the issue.
Ms Ghani
My right hon. Friend has been a strong campaigner for her constituency, particularly on this issue, and I do not doubt that her request for a meeting will be respected and taken forward. I understand that there was a delay and that the notification of it was made most recently.
The favoured option for the A120 scheme that the council announced on 8 June is supported by a strong analytical assessment and has gained support from both the public and the business community, providing a good case for its consideration as a candidate for inclusion in the second road investment strategy. I cannot comment enough on the strong representations made not only by those Members of Parliament here today but by others who have met repeatedly with the Department for Transport: my right hon. Friend the Member for Maldon (Mr Whittingdale) and my hon. Friend the Member for Saffron Walden (Mrs Badenoch). Strong cases have been made, not only within this debate but behind the scenes, in lobbying the Department for Transport.
We are currently developing an affordable, deliverable investment plan for the strategic road network—the SRN—for the period 2020-25. The work draws on two years of research and public engagement. For example, Highways England has refreshed its 18 route strategies, which cover the whole of its network and present a high-level view of both performance and constraints on the existing road network. The route strategy for the east of England identified a number of capacity and safety issues on the A120, as my right hon. Friend the Member for Witham mentioned.
In December 2017, Highways England published its initial SRN report, which set out its proposed priorities for RIS2 and looked at the strategic road network as a whole rather than suggesting specific enhancements. The Department consulted on the document over the winter and we are using the responses to shape our thinking as we develop the next road investment strategy. Essex County Council’s work in developing the A120 scheme is also feeding into the process.
Our consultation on RIS2 has confirmed the considerable competition for the funding available for new schemes. A great deal of evidence arguing for a range of investments was received, including responses in favour of the A120 upgrade, among other things. There was also support for the schemes that were included in RIS1 for development for RIS2—the A12 Colchester bypass widening and the A12/M25 to Chelmsford improvement. All those proposals are being considered for inclusion in RIS2, alongside others from across the country. I cannot prejudice the process and the outcome, but the Government will announce their final decisions on RIS2 in 2019. Strong representations regarding the business case, as well as the cases in support of homes, the social environment and tourism, have been made today.
I hope that my hon. Friend the Member for Braintree and other Members are reassured that the Government understand the importance of the A120 scheme, both in the region and nationally, and that we see the need for investment in transport infrastructure to provide much needed economic growth. We will take that into account as we finalise our plans for the next road investment strategy.
The Economy
Priti Patel Excerpts(6 years, 1 month ago)
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Priti Patel (Witham) (Con)
This should be a serious debate, given that future generations will look back at the economic situation over the past decade, and to the political leadership that we have all given, and ask this generation, “What did you do to secure our economic future?” I am therefore pleased to be able to contribute.
As my right hon. Friend the Chief Secretary to the Treasury said, 10 years ago this month, the last Labour Government introduced a Budget. The then Chancellor of the Exchequer, Alistair Darling, in his Budget speech in this Chamber, promised
“stability, now and in the future.”
He committed the then Government to
“maintain stability through the world economic slowdown.”
He proclaimed:
“Britain is better placed than other economies to withstand the slowdown in the global economy.”
He also forecast that
“the British economy will continue to grow throughout this year and beyond.”—[Official Report, 12 March 2008; Vol. 473, c. 285.]
That year’s Budget committed to £43 billion of borrowing. The then Chancellor forecast that that would fall to £38 billion in 2009-10 and then continue to fall to £23 billion in 2012-13. What followed was the deepest recession in modern history, which hit Britain harder than most. Of course, it led to a sharp increase in unemployment, destroying the life chances of a generation of young people. As we know, borrowing did not fall, but rose to record levels, going on to add over £150 billion a year to the national debt—and that was when the moderates were in charge of the Labour party.
Since 2010, the responses of the Labour party to our Budgets and fiscal statements have moved further and further towards the hard left. Over the past year, we have heard the Leader of the Opposition, the shadow Chancellor and other Members make reckless and irresponsible pledges and commitments. They fail to understand that the more we tax and borrow today—guess what?—the more that costs the country in the long term. Higher borrowing today means less money to invest in key frontline public services tomorrow. That approach to fiscal policy wiped more than 5% off the economy during the last downturn. The British public should be in no doubt of what that would mean for the long-term health of the economy, with more services starved of cash, and greater suffering when it comes to jobs, economic growth and prosperity.
This Government, through what was then our long-term economic plan, went out to reset the nation, and to support economic growth and investment. That growth and investment was possible, of course, as a result of very courageous decisions that led to unemployment falling, more young people in work than previously, and a record 32 million people in jobs. Growth has been steady and sustainable, and more businesses are being set up. Thanks to that economic plan, in my constituency there are 17% more enterprises than there were in 2010, and the claimant count is 70% lower than at its peak under Labour.
Let us not say that the job is done, however, because it is not. There is much more to do. The economic downturn created long-term damage to the public finances. It also led to something else that this generation of politicians must address: it damaged trust in politics. It threw open questions about the relationship between power and wealth throughout our society. There was a re-evaluation of the traditional economic models—monetary models, fiscal models and how we invest—but we have also seen quantitative easing, which has worked through the economy, making possible a new era of low borrowing costs and cheap debt, which has affected the burden of household debt.
We have a country with tensions between those who benefited from the boom years, whose assets have appreciated, and a generation under 40 who have effectively inherited a broken model of public finances and are now struggling for a secure prospect of owning assets and having a home of their own. That is why this Government need a radical economic vision—a challenge for us all—to really take the Conservative Government forward; to energise an economic revolution across our country that embraces freedom and opportunity; and to provide the next generation with the prospect of being able to provide for themselves, invest in housing, and hopefully raise a family as well—something which many of us have historically taken for granted, and which, of course, young generations want to do. They want to have the freedom to succeed. They want to have the economic freedoms that across the generations we have been able to take for granted.
People whom I meet day in, day out, tell me that they do not want a Government who tinker at the edges or the margins. They certainly do not want a Government who believe in the “nanny knows best” approach—centralisation and the command-and-control politics of the left. They want radical policies to tackle injustices in our country, to deal with the housing crisis, to promote genuine competition and choice in utilities, banking and other services, and also, importantly, to put families, consumers and entrepreneurs first. That means a coherent economic programme to tackle the underlying economic causes of the injustices that people feel today. It also means a more distinctive Conservative programme of economic reforms: opening up markets to new entrants; empowering consumers; setting free the power of technology and innovation; empowering local leaders across our communities; offering economic devolution across the country; accelerating housing and public transport investment; empowering and incentivising policies across the full spectrum of the public sector; and demonstrating leadership and reform alongside a skills revolution, a training revolution and education, supporting the practical impact of lifelong learning that future generations will experience.
My right hon. Friend the Chief Secretary spoke about the inspirational political leadership in the 1980s that adopted a bold policy of redistributing economic power and opportunity, and putting it in the hands of the people, when Britain became a share-owning and property-owning democracy. Of course, it was Margaret Thatcher who led that economic revolution. I pay tribute not just to the former Prime Minister, but to my right hon. Friend the Member for Wokingham (John Redwood), who was one of the economic advisers at the time, for putting power back in the hands of consumers and the public.
We must always be radical and reforming in government: shaking up the status quo and empowering consumers; unleashing the power of technology and innovation; and opening up markets here and around the world to new entrants, and a new cycle of growth and prosperity. Now, more than ever, for future generations, it must be our national mission to lead a new wave of economic reforms that ensures that we keep taxes low for families and businesses, provide more choice in public services, put pupils and patients at the heart of our education and health services, and back more reforms to skills and training to ensure that school leavers do not just have opportunities but become the market makers of the future. We must ensure that people can upskill and retrain in later life to enable them to adapt to a changing, vibrant economy.
We also need to continue our programme that empowers Mayors and local councils with more powers and freedoms to retain the proceeds of local economic growth. Our economic strategy must drive growth. Infrastructure bonds and other financial measures can be used to invest in infrastructure and regeneration throughout the country, and that programme grows the economy through investment in the country’s key strategic infrastructure, such as the great eastern main line, the west Anglia line, the A12 and the A120. We must ensure that we get Britain not just moving again, but accelerating in the 21st century.
We must be ambitious for British companies, both at home and abroad, and give dynamic innovators and wealth creators the freedom to succeed. Our economic freedoms matter, which is why this Government must continue to bang the drum for British businesses, of every shape and size, every minute of the day. British firms want to know that their Government are on their side no matter what, and that has to be at the heart of our economic strategy.
As well as focusing on our domestic reforms, in any debate about the economy we must look forward to our bright future as a free and independent nation when we leave the EU. Brexit should serve as a time of national renewal. We are seeing now more than ever—my right hon. Friend the Chancellor mentioned this in his statement last week—that this will be the start of the shaping of a new liberating chapter in our long history in which we will have many economic benefits. We will be a beacon for global free trade and pursue new trade and investment partnerships. My hon. Friend the Member for Clacton (Giles Watling) has already mentioned new partnerships with India, and I hope that you will appreciate, Madam Deputy Speaker, that where Essex leads, the rest of the country will follow.
By the middle of this century, the EU’s share of the global economy will fall below 10%. The old global economic order is being replaced by a new wave of economic powerhouses in Asia, Latin America and Africa. We are seeing change and we must ensure that we are at the front of the queue, leading that revolution of change, and that Britain is the first port of call for growing and newly emerging markets. As we reflect on the economy today, let us welcome not only the transformation, but the long-term economic stability that we have seen due to the macro and fiscal policies of this Government. I commend the Chancellor for his statement, but we must continue to be bold and ambitious for the future.
Oral Answers to Questions
Priti Patel Excerpts(6 years, 2 months ago)
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Julian Sturdy (York Outer) (Con)
Priti Patel (Witham) (Con)
Giles Watling (Clacton) (Con)
Mr Hammond
My hon. Friend is right that the major road network will support the creation of new housing developments by improving access to future development sites and boosting suitable land capacity, so investment decisions for this funding will include consideration of how proposed schemes will unlock land for housing developments, helping to improve how transport is planned for new developments at the outset. The ring road to which he refers is, of course, part of the proposed major road network.
Priti Patel
The Chancellor will know of the great eastern main line taskforce, which has made the economic and business case for rail infrastructure directly to the Treasury. He will also know that Greater Anglia commuters are forking out £3.7 billion to the Treasury under the current rail franchise. Will he ensure that we can get some of that money back out to invest in the much-needed infrastructure improvements for which our commuters are campaigning?
Mr Hammond
My right hon. Friend is a great champion of infrastructure in Essex, and I share her wish to create a more dependable railway with an increased focus on punctuality and reliability, which is why the Government are pursuing the biggest rail investment programme since Victorian times. Under the Greater Anglia franchise, there is a commitment to deliver more services and faster journey times, including two “Norwich in 90” trains each way a day from May 2019. The great eastern main line proposals are currently at an early stage of development, but we will carefully consider the case she has made for the passing loop.
Budget Resolutions
Priti Patel Excerpts(6 years, 5 months ago)
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Priti Patel (Witham) (Con)
It is a real pleasure to follow the hon. Member for East Dunbartonshire (Jo Swinson); this is the first time in a while that we have debated in the Chamber together.
I commend my right hon. Friend the Chancellor of the Exchequer for the Budget. From my ministerial apprenticeship at the Treasury three years ago, I recall the great efforts that the then Chancellor and the entire team made to put the Budget together, particularly as Ministers were lobbied constantly by a whole range of interests. It is, of course, a challenge to balance the needs with the responsibility to keep the public finances in good, sound, solid order. The Treasury should be commended for navigating those pressures and for continuing to put stability at the core of the Budget. Economic stability should rightly stand at the core of every Budget.
It is worth reminding Members, especially those on the Opposition Benches, of the progress that has been made in putting the public finances back in order after the appalling situation in 2010. Back then, the budget deficit exceeded £150 billion—more than our spending on health, education, policing and the armed forces. The level of public spending was financed by borrowing that was totally unsustainable. We know that the Opposition, who are chuntering away, never want to take responsibility for how they mishandled the public finances and love to point the finger of blame elsewhere, but it is a fact that before the financial crisis, the Labour Government racked up an eye-watering level of debt.
Ian C. Lucas
In 2010, the Conservative Government said they would eliminate the deficit by 2015. They were aware of the deficit at that stage, so why did they fail?
Priti Patel
The obvious answer is the scale of Labour’s economic mismanagement. The hon. Gentleman will recall that his party’s 2008 Budget planned for a £43 billion deficit, which is more than all the revenues raised in excise duty. That says everything we need to know about Labour’s financial economic management.
Mr Mitchell
Does my right hon. Friend not think that the Opposition have a brass neck to intervene on her in that way? They criticise the Government for not cutting the deficit faster, yet on every single occasion when they have been invited to support the deficit-cutting strategy they have voted against it.
Priti Patel
My right hon. Friend is absolutely right. On many occasions since 2010, the Labour party has not only not supported the Government’s approach on deficit reduction, but failed to vote to support policies to reduce the deficit and bring sound financial economic management back into our public finances. We have come a long way on bringing the deficit down and understanding the reasons why sound financial management matters. We need money to be available to invest in our public services. We need an economy that embraces enterprise, which brings in the tax receipts to pay for hospitals, schools, police and the armed forces. Today’s Budget absolutely recognises that fundamental point.
We have heard criticism in the debate about the NHS. Our NHS is a great institution. It is right that the Chancellor has today committed more public funds— billions—to the NHS. As an Essex Member of Parliament, I am delighted to see new support and capital investment in the NHS. Frankly, for 13 years under Labour, health services in Essex went backwards and suffered from underfunding. My right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) is right to say that Labour Members have a brass neck criticising the work we have been doing and the investment we have made.
One great success since 2010 is the record level of job creation in our economy. Like many of my right hon. and hon. Friends, I recall sitting through these debates from 2010 onwards hearing doom and gloom and scaremongering from the Labour party, with outlandish claims about unemployment and recession. As we know, those predictions proved to be completely wrong. In today’s Budget, we heard about greater investment in key sectors going forward. We know we have to think about the future of the labour market. Automation will be coming in, and we need to consider how we can invest in construction and key services.
Geraint Davies
Does the right hon. Lady not recognise that under the Labour Government the economy grew by 40% in the 10 years to 2008? The Conservative Government have doubled debt from 45% to 90% of the economy and we have the lowest growth in the G7. Surely that is not a success.
Priti Patel
In my constituency, the claimant count has fallen by 70% from its peak under Gordon Brown, and there has been a 17% growth in small enterprises. That means more jobs for my constituents and the county of Essex. We should welcome that, rather than talk it down.
Charlie Elphicke
Can my right hon. Friend recall an occasion when the Labour party talked up the economy, or is it always about more spending, more borrowing, more debt and more benefits and taking the country back to the brink?
Priti Patel
My hon. Friend is absolutely right. We have 32 million people in work and unemployment at a record low, and Opposition Members talk our country and our economy down. They seem to have a pathological hatred of enterprise, aspiration and free markets. They call for higher taxes on businesses, which only serve their agenda to tighten controls on the free market, stifle innovation and stop businesses succeeding. As we know, that is exactly what would harm the economy in the long run.
As we have seen in the Budget today, great Conservative Budgets support aspiration, opportunity and freedom. That is why the Conservative party has always been on the side of people who work hard and want to get on in life and own their own home. The Budget makes welcome changes to stamp duty to help people get on the property ladder: 95% of first-time buyers will now benefit and 80% will pay no stamp duty at all. That is the right action to support home ownership and increase supply through the investment announced in the Budget.
I stress to my right hon. and hon. Friends on the Front Bench the importance of ensuring investment in infrastructure around new housing from private as well as public sources. In Essex, we have been working assiduously to secure investment from the Government in a passing rail loop north of Witham and the upgrading of the A120—critical investments that will promote and support house building in that part of Essex—and also to ensure greater private funding, including from innovative financial products, to reduce the risk to the public purse and to secure more private sector contributions to deliver critical infrastructure.
As we plan for our exit from the EU on 29 March 2019, it is right that the Budget has set us on a course to make the most of the long-term opportunities that Britain will have. Of course, that means being a global beacon for free trade, a place that welcomes investment from overseas and enterprise, and finding ways to unlock the talent in this country.
I again welcome the new investment that my right hon. Friend the Chancellor announced in terms of skills, critical sectors and investing in people. There are fantastic opportunities not just for the City of London but for our country, and plenty of reasons to be optimistic when it comes to trading with the rest of the world and growing our economy. We must look outwards rather than inwards. This is a Budget that will facilitate a positive international vision for Britain. That is how we will be judged in the years ahead. It stands in marked contrast to the policies of the Labour party, which wants to tax more and thereby harm our country and our economy. Most importantly, however, this Budget lays the foundations for a Britain fit for the future.
Welfare Reform and Work Bill
Priti Patel Excerpts(8 years, 6 months ago)
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Peter Dowd
It is often my lot to be well down the batting order, although I prefer bowling.
Until last night, when they were fortunately brought down to earth by the other House, the Government were pushing on with their tax credit proposals. They are still pushing on with them, despite the fact that the Chancellor is, he tells us, in listening mode, and the fact that there is no palpable or sustainable action to move to a higher-wage economy. They are tinkering at the edges. This proposal affects working mums; as I said earlier, 70% of the burden is falling on them. It affects low-income families. It damages work incentives, despite what the hon. Member for Louth and Horncastle (Victoria Atkins) said. It affects the working poor. It will have a dire effect on those with chronic illnesses, particularly with mental health problems.
The question we have to ask is whether this proposal will make work pay and help people back into work. Many say no. Some have suggested alternatives for where the extra funding can be found. I am not saying whether I agree or disagree with them, but it gives the lie to the claim that there are no alternatives. Despite issues of phased implementation, inheritance tax, relocation of planned spending on the personal allowance, marriage allowance changes, help with childcare costs, working tax credit and universal credit, there is still no guarantee of higher wages.
The provisions on ESA and the WRAG were introduced specifically to assist with support for disabled people who were assessed as not being fit for work according to the Government’s own assessment regime. Some people, such as those with chronic mental health problems, find it difficult to work. The Work programme has supported only 9% of participants on ESA with mental and behavioural disorders into sustained employment. We have parity of esteem, but not for those on welfare. Support for those people has to be tailored to their needs. There can be a slow journey back to health. People need advisers with particular skills and they are not getting them, so how do they possibly get back into work?
As for the sanctions regime, a Church group in Scotland identified that 100,000 young people were affected by sanctions, that they were being debilitated by them and that the sanctions undermined their humanity. Yes, sanctions have existed since 1913, but they have to be humane and those under discussion are not.
The Minister for Employment (Priti Patel)
We have had a long and interesting debate on a range of amendments. I thank every colleague who has contributed to it, particularly my hon. Friends the Members for Faversham and Mid Kent (Helen Whately), for Beverley and Holderness (Graham Stuart), for Weaver Vale (Graham Evans), for Stafford (Jeremy Lefroy), for Bury St Edmunds (Jo Churchill), for Chippenham (Michelle Donelan) and for Louth and Horncastle (Victoria Atkins).
Given that time is short, I will speak very briefly to some of the amendments. On amendments 35 to 48, we introduced the benefits cap in order to increase work incentives, to promote fairness between those in work and those on benefits, and to not only help to address the deficit but to support people back to work. The benefits cap has been a key part of our reforms to the structure of the welfare system and to attitudes towards getting back into work.
It is clear from the evidence that the cap is working. Since the cap was introduced in 2013, more than 6,000 previously capped households have moved into work and more than 41% of capped households are likely to go into work. That trend did not exist before the cap, and those with higher weekly benefit payments used to be less likely to move into work. We have had some great results and we intend to build on them and to align the cap with the circumstances of many hard-working people throughout the country. We firmly believe that the new, tiered benefit cap will continue to build on those successes and that it will do more to improve work incentives throughout the country while promoting greater fairness when it comes to work and employment.
There was an extensive debate on amendments 56, 20, 57 and 31 on universal credit and the employment support allowance. The removal of the work-related activity and limited capability for work component will apply only to new claims. There will be no cash losers among claimants already receiving the rate, and clauses 13 and 14 do not affect the support group component.
In 2008, when the then Labour Government introduced ESA as a “radical reform package”, the work-related activity component was originally intended to act as an incentive to help people into work and to return quickly to work. However, the original estimates were incorrect and only 1% of people in the work-related activity group left the benefit each month. It is clear, therefore, that the existing policy is not working and that it is failing claimants.
As discussed in Committee and this afternoon, we believe that it is the duty of Government to support those who want to work to do so, particularly those with disabilities and health conditions who want to work, including the majority of ESA claimants. We know that 61% of those in the WRAG want to work. We will do everything we can to support them in that ambition, and it is right that we do so.
Universal credit supports people with small or fluctuating amounts of work. That is why it is particularly helpful that we look at the ESA component and universal credit together. It is that alignment that will help to bring people closer to work while tailoring the support they need to move into work. As part of the package of savings in the summer Budget, the Government were able to allocate new spending to ESA that would not otherwise have been available. That support is now funding up to £100 million per year to help claimants with limited work capability but who have potential, because they want to move into work, to get closer to the labour market. We will provide all the support necessary to make sure that they can get back into work.
Comments have been made about work coaches and jobcentres. May I reassure the House that all work coaches are trained to help claimants and that that is not based on the benefit they are on, but, importantly, on the actual support they require? That is particularly true for universal credit. The training for staff working with ESA claimants focuses on raising awareness of their individual circumstances and recognises that disability and health conditions affect individuals in different ways. Such factors change over time but, importantly, we will support claimants in their journey to get back into work.
We have had a debate about sanctions. Of course sanctions exist for a reason. Importantly, however, they also exist to support people into work. I recognise that many Members from both sides of the House have specific cases to which they have referred. I again extend my offer to look into such cases. The Government keep the operation of sanctions under constant review. We have clearly made a number of improvements to sanctions, including in relation to the Oakley review. Last week, we gave a very clear response to the Work and Pensions Committee report. Our response outlined the work that the Department has already undertaken to review the sanctions system and the changes we intend to make. The response was welcomed by the right hon. Member for Birkenhead (Frank Field), the Chair of the Select Committee.
Our response to the Committee includes the announcement that we will trial a sanctions warning system, which will give claimants a further opportunity to work with jobcentre work coaches to provide evidence before a sanction is applied. We will consider extending the definition of at-risk groups for hardship purposes, including those with health conditions—particularly those with mental health conditions—and those who are homeless, which means that they can seek access to hardship payments from day one of the sanction.
We want the sanctions system to be clear, fair and effective in promoting positive behaviours. Importantly, however, it should also support individual claimants, which is why we will continue to keep the system under review. I will make it very clear: there are no targets for sanctions, a point made on the Floor of the House this afternoon. I say to the hon. Member for Bishop Auckland (Helen Goodman) that she was wrong in her remarks not just about sanctions but about employment levels in this country and clearly about the economy.
On new clause 3, I thank my hon. Friend the Member for Beverley and Holderness, the hon. Member for Bermondsey and Old Southwark (Neil Coyle)—he was consistent in making points in Committee—and my hon. Friends the Members for Bury St Edmunds, for Gloucester (Richard Graham) and for Weaver Vale for their contributions. The PIP assessment is designed to treat all health conditions and impairments fairly. I assure all hon. Members that we consider the needs of those who are terminally ill in developing the assessment, and that we absolutely remain committed to providing support to disabled people and those with illnesses in all their circumstances. We know that such claimants, especially those who are terminally ill, have particular challenges.
I listened to all the contributions in Committee. As the hon. Member for Bermondsey and Old Southwark knows, I am meeting him tomorrow, with the hon. Member for Sheffield Central (Paul Blomfield), to discuss this matter further. I look forward to working with him on the points he has made, as well as on those expressed by my colleagues. The hon. Member for Bermondsey and Old Southwark was right to refer to the fact that rules have been introduced to ensure that the PIP system handles terminally ill claimants efficiently and sensitively, reducing the need for face-to-face assessments—we discussed that at length in Committee—and the degree of intrusion on claimants and their families, while, importantly, focusing on delivering vital support to claimants as quickly as possible.
It is very clear, as we discussed in Committee, that the Government are focused on rolling out PIP in a very safe and steady manner, ensuring that the claimant experience is protected and that the PIP system is as straightforward as possible for the user, particularly those who are terminally ill. PIP has been and will continue to be subject to independent reviews—we have committed to that in legislation—which, as ever, will help us to make continued improvements to what is a dynamic benefit. We are fully committed to ensuring that there is a positive evidence base for all changes that we make and that users understand their impact so that we can deliver the best possible service for claimants.
We will continue to work with all hon. Members, as I have said in Committee and this afternoon, as PIP is rolled out. I will continue to work with colleagues and to take on board their points. I thank them for their valuable contributions. The hon. Member for Bermondsey and Old Southwark has expressed some concerns, but I will take away his points for our meeting. I look forward to taking forward such considerations.
In summary, the Bill brings forward important changes that are designed to create the right incentives within the welfare system, and I urge hon. Members to withdraw their amendments.
Priti Patel
I beg to move, That the Bill be now read the Third time.
The Bill, alongside other measures, including the national living wage and the increase in the personal allowance for income tax, will ensure that the welfare system is fair to taxpayers while supporting the most vulnerable. It will help ensure that work always pays more than life on benefits. It will continue to build an economy based on higher pay, lower taxes and lower welfare.
Ian Lavery
As a result of these measures, people receiving family tax credits will lose up to £1,300 per annum and 200,000 more children will be pushed into poverty. Can the Minister explain how that is fair?
Priti Patel
I thank the hon. Gentleman for giving me the opportunity to respond once again on that issue and to make the case that, first, it pays to be in work, and secondly, through our package of measures, including the national living wage, the increase in the personal allowance and the extra support for tax-free childcare, families will be supported through the changes we are making. That contrasts with the system we inherited from Labour in 2010, which was not fair to the hard-working taxpayers who paid for it, and certainly did not support people trapped in a system of welfare, with no hope for a brighter future. That is why we are continuing to reform welfare so that work pays in the United Kingdom.
After 13 years in government, Labour left a welfare system that failed to reward work. Between 1997 and 2010, spending on tax credits increased by 335%, compared with an increase in average earnings of just 30% over the same period. Despite all the spending, 1.4 million people spent most of the last decade under Labour trapped in out-of-work benefits. [Interruption.] That is not a ridiculous point to make. Over the same period, the number of households in which no member had ever worked nearly doubled and in-work poverty rose, yet Labour has opposed every decision we have taken to fix the welfare system and support people off welfare and into work.
Our welfare reforms are focused on transforming lives by helping people to find and keep work. We are focused on boosting employment and ensuring fairness and affordability, while supporting the most vulnerable, and on making sure that people on benefits face the same choices as those not on benefits and in work. Over the past five years, 2 million more people have entered employment, while 2.3 million people are now in apprenticeships and the number of workless households is at a record low—down by more than 680,000 since 2010. This was achieved in the last Parliament, when welfare spending increased at the lowest rate since the creation of the modern welfare system.
Mr Burrowes
The Bill delivers on our ambitious manifesto commitment to halve the disability employment gap, but we need to be held to account for the progress we make, so will the Minister outline how, through the reporting mechanisms in the Bill, we can show we are delivering on that commitment and build on the good progress we have already made in helping over 200,000 more disabled people into work?
Priti Patel
My hon. Friend is right about the Government’s clear desire to support more disabled people into employment, and as we discussed in Committee, we will strive continuously to fulfil that commitment. I can assure him that in everything we do, including through the £100 million of investment to help people with disabilities and health conditions—something that Labour did not do in government—we will share information with the public and report back to the country on our progress. The Government stand by the principle of encouraging and rewarding work, and the Bill builds on that success.
Naturally, we want more people to have the dignity of a job, the pride that comes with earning a pay packet and, importantly, all the wider advantages that come with employment. All those who want to enter employment and contribute to the growth of our economy should be supported to do so, which is why we are committed to full employment. The Bill will support that commitment with a statutory duty to report on our progress towards full employment and our ambition to deliver 3 million new apprenticeships. In addition, it will put in place a statutory duty to report on our progress in supporting troubled families with multiple, highly complex problems, including in helping them to move closer to work. It will encourage parents into work and support those trapped on benefits without the opportunity to move into work, such as those with health conditions or disabilities in particular. As my hon. Friend the Member for Enfield, Southgate (Mr Burrowes) rightly highlighted, we will support them into work.
As a one nation Government, we believe that everyone in the country should have the chance to benefit from the security and sense of purpose that comes from being in work. Work provides purpose, responsibility and, in particular, role models for children, yet getting people into work is about more than earning a salary. Growing evidence shows that work can help people to remain healthy and help to promote recovery where somebody falls ill. It is right, therefore, that we look at how the system supports people with health conditions into work. We know that 61% of those in the work-related activity group want to work, but only 1% come off benefits each month. The system has failed them, and financial disincentives have left them trapped on benefits.
As we discussed in Committee and on Report, the changes in the Bill will apply to new ESA claims and universal credit from April 2017. This will enable us to provide significant new funding for additional support to help claimants with health conditions and disabilities into work and to transform people’s lives. Furthermore, we are providing £60 million of funding in 2017, which will increase to £100 million a year by 2020. That will be direct support to get people into work and provide new employment opportunities for those who want to work but have been unable to do so. We recognise the long-term conditions that some people face and will support them back into work.
Jeremy Lefroy
That help into work is absolutely vital, but what would the Minister say about those who have been in the work-related activity group for one or two years, or perhaps even longer, and who are unable to get back into work, however hard they try? New claimants will not have that work-related activity group component.
Priti Patel
We recognise that there are people who cannot work, as a result of illness, and they will be in the support group. They will absolutely be supported in that group, as is right and proper.
It is our responsibility to ensure that the welfare system is affordable and sustainable. Those on the Opposition Benches who oppose our making difficult decisions on welfare must say what they would cut or which taxes they would put up to pay for their proposals. The Bill will correct many of the unaffordable and disproportionate increases in benefits compared with earnings by freezing most working-age benefits. As we have said throughout the passage of the Bill, this will protect taxpayers from the cost of subsidising increasing social housing rents through housing benefit. Those rents have climbed by 20% since 2010, but we will now act to reduce them by 1% a year for the next four years.
The Bill will continue to restore fairness to the system. We do not think it is fair that someone on benefits should receive more than working households earn, and 77% of the public agree. The benefit cap reintroduced fairness. Reducing the benefit cap to £20,000—and to £23,000 in Greater London—reinforces and strengthens that message. The new cap better aligns the level with the circumstances of hard-working families across the country.
Paul Scully
Does the Minister agree that, as well as providing a fairer deal for the taxpayer and introducing a fairer, more sustainable system in order to help to pay off the deficit, this programme will help to encourage, nudge and support people back into work? Is that not better than just wringing our hands?
Priti Patel
My hon. Friend is absolutely correct. That is the whole purpose of what we have been doing through our welfare reforms. We are putting people first and providing the support they need to get back into work, in contrast to what we saw during the 13 years of the Labour Government, when people were trapped on benefits in a cycle of dependency, and trapped in poverty while having opportunities denied to them.
This Government are committed to working to eliminate child poverty and to improving life chances. Our new approach focuses on transforming lives, which is what the Labour Government failed to do through their arbitrary measures on poverty. We will tackle the root causes of poverty rather than focusing on the symptoms, as existing measures do. We saw the previous Labour Government’s pursuit of short-term, narrow and expensive policy solutions that attempted to lift incomes above an arbitrary line. They increased welfare spending by 60% in real terms—[Interruption.] That is a fact. They increased spending in an attempt to chase that moving poverty line, without driving any sustainable improvements in children’s lives.
In contrast, the Bill will place a duty on the Government to report annually on the key measures of worklessness and educational attainment. In these new life chances measures, we will focus on the root causes of poverty, rather than on the symptoms. That approach has been seen to fail—[Interruption.] The hon. Member for Islington South and Finsbury (Emily Thornberry) can shout all she wants, but these new measures will drive real actions and make the biggest difference to disadvantaged children now and in the future. We have also committed to publishing a life chances strategy—[Interruption.] What is embarrassing is that during 13 years, the Labour Government systematically failed to deal with the root causes of poverty or to change people’s lives by getting them back into work.
Priti Patel
I will not give way.
We are committed to publishing a life chances strategy, which will set out a wider set of measures on the root causes of poverty such as family breakdown and the problems of debt, drug addiction and alcohol dependency. We will report to the House on those measures annually. We are absolutely committed to protecting the most vulnerable in society, and the Bill will continue to ensure that the welfare system will support the elderly, the vulnerable and disabled people. We are exempting pensioner benefits, and benefits relating to the additional costs of disability, from the freeze on working-age benefits. We are also exempting the most disabled people from the benefit cap.
I would like to thank all Members on both sides of the House for their contributions on the Bill and on the other important issues that have been raised in our debates in Committee and on the Floor of the House. A number of amendments have been passed so that support for mortgage interest and social rented sector policies are delivered as intended. In the case of the social rents measure, we have been able to reflect comments made to the Government by the social housing sector. We have also added a clause that will enable the Government to recover the expenses they incur from administrating benefit diversions for the Motability scheme. As we agreed on Report, the wishes of the Welsh and Scottish Governments are now also reflected in the life chances measure.
This Bill will establish the principle of economic security, and will ensure that the welfare system is fair to taxpayers while continuing to build an economy based on higher pay, lower taxes and lower welfare. I commend the Bill to the House.
Finance (No. 2) Bill
Priti Patel Excerpts(9 years, 1 month ago)
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The Exchequer Secretary to the Treasury (Priti Patel)
It is a great pleasure to close this debate on Second Reading. I would like to thank everyone who has spoken for their contributions, particularly the hon. Member for Edmonton (Mr Love), who has served this House with such distinction. I wish him well. We have had an interesting debate. I should like to set it in the context of the Chancellor’s Budget last week.
A number of points about living standards have been raised. I reiterate that living standard will be higher in 2015 than they were in 2010, real household disposable income per capita will grow at its fastest rate since 2001 and, according to the Institute for Fiscal Studies, families are now set to be £900 better off this year than they were previously. That is all in line with our plan to fix the British economy, take us out of the dreadful mess we inherited back in 2010 and, quite rightly, give the British public the recovery they deserve.
The Bill marks the next step in that plan. It puts more money in people’s pockets, delivers further growth and puts fairness, which has been mentioned, at the heart of our recovery. We continue to put fairness at the heart of the recovery through our increase in the personal allowance. We will take people on the national minimum wage and working up to 30 hours a week out of income tax altogether by 2017. That is about rewarding work and raising living standards, which is what this Government stand for.
I will address a number of points that have been raised. The hon. Member for Edmonton spoke about £5 billion in tax avoidance. To answer his question, yes, it is a realistic achievement to bring in the revenue that has been spelt out. There is no reason to doubt that the Government can raise the figures we have already announced, so we will proceed with that. On the point about the tax code, we established the Office of Tax Simplification in 2010, and the Bill includes a number of measures that build on its recommendations.
Points were also raised about oil and gas. The Bill introduces radical measures to support the oil and gas industry, giving investors long-term certainty. We have been working very constructively with the industry to ensure that the package will provide it with the right fiscal environment.
On clause 12, which the hon. Member for Nottingham East (Chris Leslie) mentioned, the exemption will not apply where expenses are paid under a salary sacrifice arrangement. That will stop employers artificially lowering their national insurance contribution bills by replacing some of their employees’ salaries with expenses.
Clauses 13 and 14 implement recommendations set out by the Office of Tax Simplification. On clause 20, which relates to gift aid, more details will be set out in regulations, which of course will improve donor understanding of tax to cover. On clause 28, I should like to reassure the hon. Gentleman that it applies to expenditure on consumable items only if the item is transferable in the ordinary course of the relevant person’s business.
Flooding was mentioned. In the spending review the Government committed an unprecedented £2.3 billion to tackle flooding and coastal erosion. In addition, clause 35 supports business contributions to alleviate the impact of flooding.
The hon. Gentleman also mentioned clause 29, which sets out film tax relief opportunities. The structure of the current relief is completely different from that introduced under the previous Government’s scheme, which was prone to abuse, so there are no issues of avoidance in this case. He also mentioned zero-emission bands. Stakeholders have asked for rates to be announced four or five years ahead, and the Government have been committed to announcing rates three years in advance, which is why we have done so.
Let me move on to the whole issue of tax avoidance. The UK is demonstrating further leadership by implementing the diverted profits tax, which is also consistent with the principle of aligning taxing rights to economic activity. The Bill quite rightly ensures that everybody contributes fairly to the Government’s long-term economic plan. During this Parliament, Her Majesty’s Revenue and Customs has secured £100 billion in additional revenue, thanks to this Government’s avoidance and evasion policies. Over a third of the Bill’s provisions will enact measures that go even further in tackling avoidance and evasion, including new measures on corporation tax and offshore evasion and avoidance and, of course, increases in the bank levy. That will raise nearly £8 billion more over the next five years, helping to reduce the deficit and strengthen the country’s economic recovery.
The Bill will help households up and down the country with the cost of living, make the country even more competitive internationally and, through the tax avoidance and evasion measures that we are putting in place, ensure that everyone pays their fair share of tax. The Bill marks the next step forward in our long-term economic plan, and I commend it to the House.
Question put and agreed to.
Bill accordingly read a Second time; to stand committed to a Committee of the whole House (Order, 24 March).