Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Sajid Javid Excerpts
Tuesday 7th January 2020

(4 years, 2 months ago)

Commons Chamber
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Sajid Javid Portrait The Chancellor of the Exchequer (Sajid Javid)
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First, Mr Speaker, may I associate myself with the message you have just sent to our Australian friends? I also take this opportunity to wish you and all hon. Members a happy new year.

At last year’s spending round, I announced a £7.1 billion increase in schools funding for 2022-23 compared with this year. That will level up funding across the country and ensure at least £5,000 a year for every secondary school pupil next year and £4,000 a year for every primary school pupil in 2021-22.

Mark Logan Portrait Mark Logan
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During the election campaign, my right hon. Friend the Chancellor visited Bolton Lads and Girls Club, which is a real hub for inspiring our children. Does the Chancellor agree that the uplift in funding for schoolchildren right across Bolton North East will ensure that our young people fulfil their true potential?

Sajid Javid Portrait Sajid Javid
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I remember that visit, and I was incredibly impressed by the club.

May I say how delighted I am to see my hon. Friend take his place in this House? I agree with him wholeheartedly. Our plans will ensure that funding for every pupil in every school can rise at least in line with inflation. Schools in Bolton North East will attract £4,800 per pupil in 2020-21 on average and, based on the current number of pupils, that means a 7.7% total cash increase.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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Having grown up in Bristol, the Chancellor will be familiar with the education system there, but we have a crisis in funding for special educational needs provision. More children are coming forward with special educational needs, but we do not have the funding to support them. I urge him to pay some attention to that and to donate the necessary funds to remedy the problem.

Sajid Javid Portrait Sajid Javid
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I agree with the hon. Lady about the importance of making sure that special educational needs are properly funded. That is precisely why in the last spending round I increased spending by £780 million, which I believe is the biggest increase in a decade.

Michael Fabricant Portrait Michael Fabricant (Lichfield) (Con)
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My right hon. Friend, coming from the west midlands, will know that Staffordshire has historically been one of the most underpaid counties per pupil. How will his changes affect counties such as Staffordshire and others in the f40?

Sajid Javid Portrait Sajid Javid
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My hon. Friend is right to raise this issue. He has been a champion of fairer funding for schools, especially in the west midlands, and I agree with him about the importance of this issue. That is precisely why, in the spending round, we made an exception for schools by having a three-year settlement, which means there will be a £7.1 billion increase for schools throughout England by 2022-23, helping to bring fairer funding.

Rupa Huq Portrait Dr Rupa Huq (Ealing Central and Acton) (Lab)
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2. What discussions he has had with Cabinet colleagues on the adequacy of funding allocated to programmes to reduce carbon emissions.

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Nicola Richards Portrait Nicola Richards (West Bromwich East) (Con)
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22. What fiscal steps he is taking to increase productivity throughout the UK economy.

Sajid Javid Portrait The Chancellor of the Exchequer (Sajid Javid)
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Increasing productivity is the best way to boost wages, improve living standards and enhance prosperity. We have worked hard to build a stronger, fairer economy, dealing with the deficit, helping to get people into work, and cutting taxes for families and businesses. We will continue to invest responsibly, including by investing billions more in infrastructure, creating a new national skills fund and boosting investment in research and development. We will invest to unleash the potential of the whole country, so that no place is left behind.

Kevin Hollinrake Portrait Kevin Hollinrake
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Productivity is damaged if SMEs feel that there is no fair system for resolving disputes with their bank, yet the eligibility rules for the new Business Banking Resolution Service exclude 85% of historical claims, including, incredibly, those that have been through the recently discredited Lloyds bank customer review. Will the Chancellor meet me to discuss how we make this fit for purpose and not simply a fig leaf to cover past banking malpractice?

Sajid Javid Portrait Sajid Javid
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My hon. Friend speaks with experience on this subject and is right about the importance of access to finance. I know that he has broadly welcomed the voluntary Business Banking Resolution Service but is not happy with the way it is exactly working at the moment. I know that he has a meeting coming up with the Economic Secretary on this important issue.

Stephen Hammond Portrait Stephen Hammond
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High-quality infrastructure is a key factor in improving productivity, so will my right hon. Friend consider establishing both a sovereign wealth fund and an infrastructure bond, which would enable part of the financing solution to allow that necessary infrastructure to be implemented?

Sajid Javid Portrait Sajid Javid
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The Government’s fiscal policy will allow for a step change in infrastructure investment, which is what we need to level up and unleash the potential of the whole country. That is why I am open to looking at ideas for new financing instruments, but I would need to be satisfied that they represent good value for money, that they can be sustained for the long term and that they are consistent with our wider fiscal objectives. I would be happy to discuss that with my hon. Friend.

Andrew Selous Portrait Andrew Selous
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Only 15% of people who start their working lives in entry-level jobs progress beyond such jobs by the end of their working lives. To deal with that situation, will the Chancellor look again at the national retraining scheme to see what we can do to help people to progress further in work, to reduce poverty as well as increase productivity?

Sajid Javid Portrait Sajid Javid
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As usual, my hon. Friend raises an important issue. Some excellent work has been done on the issue, including work to which my hon. Friend has contributed. In our manifesto, we set out our intention to have a new national skills fund, which will help to transform the lives of people who are trying to get on to the work ladder, to get new qualifications or to return to work. I know that my hon. Friend will welcome that.

Gareth Davies Portrait Gareth Davies
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Transport infrastructure is a critical factor for improving productivity in my constituency. Can the Chancellor assure me that the Government will make the necessary investments in key arterial roads such as the A1 in Lincolnshire?

Sajid Javid Portrait Sajid Javid
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First, may I welcome my hon. Friend to his place? He raises the important issue of infrastructure investment and its importance to productivity. I understand the incredible importance of the A1 in Lincolnshire, and a number of colleagues have raised it with me. We will soon publish our second road investment strategy, which will set out our plans, but I can assure my hon. Friend that in this Government’s infrastructure revolution no part of our country will be left behind.

Nicola Richards Portrait Nicola Richards
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Having spoken to business leaders in West Bromwich and throughout the west midlands, I know that tackling productivity and imbalances across the region is vital and key to levelling up our economy. Will the Chancellor commit to working alongside me to tackle the imbalances in West Bromwich East and the wider west midlands?

Sajid Javid Portrait Sajid Javid
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Yes, I will. May I also welcome my hon. Friend to her place? I remember my visit to her constituency last month; we met some excellent local businesses. She is right to talk about the need for further investment in the midlands. As a west midlands MP, I understand that as well, and I know exactly how much more potential can be unleashed. I look forward to working with my hon. Friend throughout this Parliament to do just that.

Peter Dowd Portrait Peter Dowd (Bootle) (Lab)
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Is that it? The Prime Minister’s special adviser now wants a civil service—perhaps modelled on the Cabinet—comprised of

“Weirdos and misfits with odd skills”.

As a member of that Cabinet, what weird explanation does the Chancellor have as to why, according to the Office for National Statistics, productivity is falling at its fastest annual pace for five years?

Sajid Javid Portrait Sajid Javid
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We have just had an unprecedented decade of growth: it is only the third time since 1700 that we have had an uninterrupted decade of growth, and that is thanks to the work of this Government. When it comes to weirdos and misfits, I know that there are many on the Opposition Benches, but they need not apply.

Peter Dowd Portrait Peter Dowd
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That speaks volumes, does it not? The worst recovery since the industrial revolution—is that what this Government can be proud of? It is absolutely pathetic. More bluster from the Chancellor, but the facts are absolutely clear: most people are worse off under Tory economic mismanagement, working longer hours on flatlining real pay. So, what targets has the Chancellor set for improved productivity? Will he make way for another weirdo or misfit when, inevitably, those targets are not met?

Sajid Javid Portrait Sajid Javid
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We should never forget that the Labour Government gave us the deepest recession in almost 100 hundred years, and the British people were clever enough not to allow them to do it again. Now, they throw stones at the firefighters who put out the fire that they set in our economy. That is what they do. We will not take any lessons from the Labour party.

Alison Thewliss Portrait Alison Thewliss (Glasgow Central) (SNP)
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May I first pay tribute to the economist Professor Andrew Hughes Hallett, who passed away on Hogmanay?

The Bank of England has said that pessimism and uncertainty around Brexit have had an impact on investment and productivity. That uncertainty has been compounded in Scotland by the fact that our Government found out only today in the media that the UK Government will finally be setting their budget, yet they have absolutely no certainty over whether that budget will include the £1.2 billion in Barnett consequentials promised by the Prime Minister during the election campaign. When does the Chancellor intend to meet the Scottish Finance Secretary to apologise?

Sajid Javid Portrait Sajid Javid
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I welcome the hon. Lady to her new position as, I think, Treasury spokesperson for her party.

When it comes to productivity, it is important that the Scottish Government play their role. They should examine their own policies, especially those on tax and infrastructure and skills, and see how they have let down the Scottish people time and again.

Alison Thewliss Portrait Alison Thewliss
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It is a huge disappointment. The Chancellor does not even have the dignity to apologise to Derek Mackay for making this announcement only in the media. Furthermore, the right hon. Gentleman may not be aware, but 11 March is the date by which councils in Scotland legally have to set local tax rates. The Convention of Scottish Local Authorities has described this delay as extremely worrying. Its resources spokesperson, the Conservative councillor Gail Macgregor, has said that this will significantly impede local authorities and disadvantage Scotland’s communities. Will the Chancellor tell me whether he thinks it is fair that Scottish local government must set its budgets blindfold without any notion of what its block grant will be? Is not the truth that he has given absolutely no thought to Scotland at all?

Sajid Javid Portrait Sajid Javid
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In the election that we have just had, we talked time and again about the need to unleash the potential of the entire United Kingdom, and of course that includes all of Scotland. Scotland has been let down time and again by the SNP Government, who are charging Scottish people the highest taxes in the United Kingdom and providing the worst public services.

Lindsay Hoyle Portrait Mr Speaker
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I call Rachel Reeves.

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Catherine West Portrait Catherine West (Hornsey and Wood Green) (Lab)
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May I say how warm your words were, Mr Speaker, vis-à-vis the Australian Parliament and how well they will be received?

With regard to productivity, what plans does the Chancellor have in the upcoming Budget to tackle the lack of investment in further education? Investment has been cut by 50% since 2010, and productivity relies very much on colleges and high-quality education outside the university sector.

Sajid Javid Portrait Sajid Javid
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The hon. Lady is right to raise the importance of FE and technical skills—I went to an FE college myself—and it is one reason why, in the spending round back in September, I allocated an increase of £400 million for the forthcoming year to FE budgets, which is the biggest increase in a decade. In our recent party manifesto, we set out plans for £2 billion of investment in the FE estate throughout England.

Marsha De Cordova Portrait Marsha De Cordova (Battersea) (Lab)
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4. What fiscal steps he is taking to ensure the adequacy of funding for youth services.

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Rob Roberts Portrait Rob Roberts (Delyn) (Con)
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10. What fiscal steps he is taking to support frontline health services.

Sajid Javid Portrait The Chancellor of the Exchequer (Sajid Javid)
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We are delivering on our five-year NHS settlement confirmed in January 2019, which is the largest cash injection in our public services since the second world war and will provide the NHS with an additional £33.9 billion more per year by 2023-24 compared with 2018-19. The settlement will shortly be enshrined in law.

Rob Roberts Portrait Rob Roberts
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Flint Community Hospital in my constituency of Delyn was closed by the Betsi Cadwaladr health board back in 2013, with the loss of a minor injuries unit and several important community beds where the elderly especially were able to recover from surgery close to their friends and family. Despite this being devolved to the Welsh Government, what hope can my right hon. Friend give to the people of Delyn and Flint that funds will be available so that such vital services in the community can be resurrected?

Sajid Javid Portrait Sajid Javid
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My hon. Friend will know that the NHS is this Government’s No. 1 spending priority. I just wish that it was the same for the Labour Government in Wales, who have let down Welsh people time and again, especially when it comes to healthcare. In the recent spending round in September, the Welsh Government received an additional £600 million, much of which can be put to good use in the NHS system in Wales. I hope that they are wise enough to help the Welsh people and, in particular, to look again at resurrecting Flint Community Hospital.

Meg Hillier Portrait Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
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One of the major crises is the recruitment of GPs, so it is not just money that needs to be thrown at the issues. What steps is the Treasury taking to ensure that when money is provided, it is spent well and, crucially, that it is not stop-start funding, so that the NHS can properly plan for the long term, particularly in the recruitment of frontline staff?

Sajid Javid Portrait Sajid Javid
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It is worth reminding Members that one of the reasons the NHS has so many problems, including with the recruitment of GPs and in hospitals, is the PFI policies of the previous Labour Government, which have cash starved many NHS trusts for far too long. We are now putting that right with our historic settlement. The hon. Member is quite right about the importance of recruiting more GPs to have more appointments, and that is why we set out in our manifesto exactly how we are going to do that.

Andrew Percy Portrait Andrew Percy (Brigg and Goole) (Con)
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The extra billions for the NHS are to be welcomed, but the real challenge in Goole, Scunthorpe and Grimsby hospitals is a backlog in capital. Can my right hon. Friend assure me that, come the Budget, there will be capital funding to ensure that our hospitals can be upgraded?

Sajid Javid Portrait Sajid Javid
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I can give my hon. Friend that assurance. He makes an important point. As he will know, the Government will have a comprehensive spending review later this year, and there will be a multi-year capital settlement. Having the right amount of capital to ensure that we do all that is required for our NHS will be a priority.

Tim Farron Portrait Tim Farron (Westmorland and Lonsdale) (LD)
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Some 50% of people living with cancer require radiotherapy treatment, and yet only 5% of the cancer budget is spent on radiotherapy. What that means in real terms is that constituents of mine have to make two, three or four-hour roundtrips to get life-saving daily treatment. Will the Chancellor commit to spending money on radiotherapy provision, to provide satellite units at places such as Westmorland General Hospital?

Sajid Javid Portrait Sajid Javid
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The hon. Gentleman raises a very important issue. We are absolutely committed to providing the resources necessary for the NHS to provide even better cancer treatment for all our constituents. That is one of the reasons for this record financial settlement. Capital is also necessary, and further capital investment to have better cancer treatment will also be a priority.

Nickie Aiken Portrait Nickie Aiken (Cities of London and Westminster) (Con)
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13. What fiscal steps he is taking to ensure that the Government meet their target of net zero emissions by 2050.

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Anthony Mangnall Portrait Anthony Mangnall (Totnes) (Con)
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T1. If he will make a statement on his departmental responsibilities.

Sajid Javid Portrait The Chancellor of the Exchequer (Sajid Javid)
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The year 2020 marks the end of a decade of economic recovery—10 years of uninterrupted growth, which is only the third time this has been achieved since 1700. At the election, I warned of a double whammy of uncertainty that risked the economy: continued Brexit delay and an agenda from the Labour party that would bankrupt our economy. We have removed those uncertainties and the markets have welcomed that. Now, since the election, I have appointed an excellent new Governor of the Bank of England, I have confirmed the national living wage will rise by 6.2% in April and I can confirm that I will bring the Budget to this House on 11 March. This Government will lay the foundations for a decade of economic renewal for every corner of our great country.

Anthony Mangnall Portrait Anthony Mangnall
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I welcome my right hon. Friend the Chancellor’s having further reduced business rates for small and medium-sized enterprises in rural areas. However, for businesses that do not fall within the rate relief levels, such as South Brent village shop in my constituency, will he work with me to see those rates reduced and review all business rates?

Sajid Javid Portrait Sajid Javid
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I welcome my hon. Friend to his place. He is absolutely right about the importance of business rates, which are a real burden, particularly on smaller community and village shops. That is why we have made our exemption for the smallest businesses—some 675,000 businesses—permanent, and we have a rural and retail discount scheme. He will also know that in our manifesto we committed to a fundamental review of our business rates schemes. I look forward to working with him and hearing his ideas.

John McDonnell Portrait John McDonnell (Hayes and Harlington) (Lab)
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Mr Speaker, may I associate myself with your words about the tragedy taking place in Australia?

Let me say to the Chancellor that I welcomed his statement yesterday that we are to have a Budget at last, as well as that the Green Book is to be rewritten—only two years after Labour proposed it; and that there is a new fiscal rule to accommodate new investment—only four years after Labour proposed it. But there was another statement, which he made reference to, which was the statement before Christmas about appointing Mr Andrew Bailey to be the Governor of the Bank of England. During Mr Bailey’s tenure as chief executive of the Financial Conduct Authority, we saw the scandals of London Capital & Finance and the Woodford Equity Fund, and the continuing saga of the Royal Bank of Scotland’s Global Restructuring Group. In all those scandals, many people—many on low incomes—were hit extremely hard. May I ask the Chancellor: did he consult any of the victims of these scandals before he appointed Mr Bailey?

Sajid Javid Portrait Sajid Javid
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First, I welcome the shadow Chancellor to his seat. He fought a hard campaign and I commend him for his efforts. As he noted, just before the Christmas recess, I announced the new Governor of the Bank of England—I have just referred to that. Mr Bailey was an outstanding candidate—the stand-out candidate to be the next Governor of the Bank of England. That is one of the most important public sector jobs that our country has to offer, and it is hugely important that it goes to a rightly qualified person. Any reasonable person who looks at Mr Bailey’s track record of outstanding public service will see that he is eminently qualified.

John McDonnell Portrait John McDonnell
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You will note, Mr Speaker, that I asked whether the Chancellor had consulted any of the victims of these scandals, and no response was received. Clearly, he did not. I referred to the Woodford Group, and in the filings lodged today at Companies House, it is reported that £13.8 million of dividends were received by Mr Ian Woodford, and his chief executive, in the 12 months leading up to the crisis that engulfed Woodford Investment Management and affected so many investors deleteriously. That adds to concerns already expressed by others that Mr Bailey was asleep at the wheel during his period of office at the FCA. Labour has already called for a short, sharp inquiry into the recent scandals and into the regulation of the financial services sector. May I suggest to the Chancellor that it would be appropriate to postpone Mr Bailey’s installation in office until an independent inquiry into those failures of financial regulation had taken place?

Sajid Javid Portrait Sajid Javid
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I believe the right hon. Gentleman means Mr Neil Woodford, not Mr Ian Woodford. The ongoing inquiry is, rightly, being led independently. It is not a matter for Ministers, and neither should it be. We are, of course, interested to ensure that an inquiry takes place and that we learn all necessary lessons. I believe the Economic Secretary to the Treasury again has a meeting with the FCA on this issue tomorrow, but we will let the inquiry take its course independently. Once it is complete, we will ensure that all necessary lessons are learned.

Amanda Solloway Portrait Amanda Solloway (Derby North) (Con)
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T2. The midlands engine for growth shows the Government’s commitment to the midlands, which is welcomed by me and by Derbyshire colleagues. What plans does the Chancellor have to push the engine forward and deliver investments and jobs for Derby North?

Sajid Javid Portrait Sajid Javid
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May I warmly welcome my hon. Friend back to her rightful place? Last month, I visited with her some excellent businesses in her constituency, and I want to see more such businesses, not just in Derbyshire and the midlands, but throughout the country. There is so much more we can do with the midlands engine, and in this coming Parliament we are going to really fire it up and spread opportunities. I look forward to working with my hon. Friend and colleagues in doing just that.

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James Wild Portrait James Wild (North West Norfolk) (Con)
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T3. When my right hon. Friend the Chancellor joined me in King’s Lynn during the election campaign, he heard from Merxin, an innovative medical company, about how our infrastructure revolution could benefit west Norfolk. Will he work with me, ahead of the Budget, to ensure that dualling the A47, and half-hourly rail services, are part of that investment programme?

Sajid Javid Portrait Sajid Javid
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I will work with my hon. Friend, and I welcome him to his place. I was incredibly impressed by Merxin, the company we visited together. It was a reminder of the difference the right infrastructure in west Norfolk can make and how it can attract even more local business success. I will work with him. We will have an infrastructure revolution. It will benefit Norfolk and it will transform the local economy.

Grahame Morris Portrait Grahame Morris (Easington) (Lab)
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T7. Durham County Council has developed a housing regeneration masterplan to tackle issues relating to absentee landlords, poor quality and low housing demand, but the scale of the investment requires a commitment from central Government. Will the Chancellor meet me and representatives of Durham County Council to discuss how the housing masterplan can be financed to deliver much needed regeneration in Horden?

Sajid Javid Portrait Sajid Javid
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The hon. Gentleman raises an important issue. Work has been done on absentee landlords, but there is always room for new ideas. I will make sure that the relevant Minister meets him.

Philip Davies Portrait Philip Davies (Shipley) (Con)
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T4. Now that Lord Berkeley has laid bare the overspend and lack of return on investment of HS2, will the Chancellor pull the plug on this white elephant project and ensure that the money is spent on infrastructure projects across the north to benefit the regional economy, starting with northern powerhouse rail, with a station stop in Bradford, and the much needed and long-awaited Shipley eastern bypass?

Chris Bryant Portrait Chris Bryant (Rhondda) (Lab)
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Can I first congratulate you, Mr Speaker, on your first and second election as Speaker? You are looking very well on it.

May I ask the Chancellor about the problem facing many people who are worried about whether they have cancer? The best way to save the lives of people with cancer is early detection and ensuring that tests come back very quickly. Unfortunately, nine out of 10 pathology labs in England, Wales and Scotland are short of pathologists, which means that people are waiting six and seven weeks. Is it not now time we had a major financial incentive to persuade more people to become histopathologists and pathologists in the NHS?

Sajid Javid Portrait Sajid Javid
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The hon. Gentleman is absolutely right to raise this issue, which is such an important issue for all our constituents. It is important that we ensure that at all times the NHS has enough funding to meet all demand, but especially for something as acute and as important as treating cancer. He is right about the need for more skills. Much more is work being done by the Secretary of State and we are looking to see what more can be done. If more funding is required, we will provide it.

Katherine Fletcher Portrait Katherine Fletcher (South Ribble) (Con)
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T6. South Ribble is blessed with many creative and hard-working smaller businesses whose products can and do grace the world. Will my hon. Friend confirm how small business exports are growing our national economy and set out what the Government are doing to support them?