Covid-19 Update
Debate between Sajid Javid and Geraint Davies(2 years, 4 months ago)
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Geraint Davies (Swansea West) (Lab/Co-op)
In the United Kingdom, there are 45,000 infections a day. In Japan, there are just 200 infections a day, because people in Japan understand that they do not have the right to put other people at avoidable risk. Will the Secretary of State consider extending what he is saying to introduce vaccine passports and testing at pubs, because I for one do not want to go into a pub where I can be infected by someone who is not vaccinated. Secondly, will he look to introduce masks into schoolrooms for older children? Let us get to grips with this.
Sajid Javid
When it comes to case numbers, we should be cautious about making straightforward comparisons between countries, not least because different countries have different ways to measure infection and different capacity. Regarding the measures to which the hon. Gentleman has just referred, what we have set out today is proportionate and balanced.
Oral Answers to Questions
Debate between Sajid Javid and Geraint Davies(2 years, 6 months ago)
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Sajid Javid
I absolutely agree with my hon. Friend, and I thank her for raising this issue. I share those concerns. Over the past year, the number of young people being urgently referred for eating disorders has doubled. In the light of that, I was astonished to learn that one of Facebook’s own internal studies, which was brought to light by Ms Haugen, found that 17% of teen girls said that their eating disorders got worse after using Instagram. Facebook did not think it was appropriate to inform parents, healthcare professionals and legislators. I do think it is time for Facebook to do the right thing and publish what it knows.
Geraint Davies (Swansea West) (Lab/Co-op)
Sajid Javid
The Government have a proud record on combating air pollution. The hon. Gentleman is right to raise the ongoing challenges of that, and I know that the Government, including the current Chancellor and the Environment Secretary, take it very seriously.
The Economy
Debate between Sajid Javid and Geraint Davies(4 years, 6 months ago)
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Sajid Javid
Sound public finances are the foundation of economic prosperity and strong public services, and we have come a long way since 2010. We inherited a deficit of 10% of GDP. At that time, that was the biggest Budget deficit of any advanced economy. It was equivalent to borrowing £5,000 every single second.
European Union (Withdrawal) Act
Debate between Sajid Javid and Geraint Davies(5 years, 4 months ago)
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Sajid Javid
The hon. Gentleman is quite right to highlight the importance of our automobile industry and the need for skills, particularly in areas such as engineering. I can give an assurance that we will want to make sure that the new immigration system allows for these vital skills where they are needed.
Geraint Davies (Swansea West) (Lab/Co-op)
Will the Home Secretary confirm that in the case of a no deal, there will be an immediate hard border in Northern Ireland to stop the passage of people and products, and that in the event of a deal, people will just be able to fly into Dublin and walk into the UK via Northern Ireland?
Sajid Javid
No one wants a no deal, but I can confirm that in the event of a no deal, the UK Government would not do anything to create a hard border between Northern Ireland and the Republic of Ireland.
Unrestricted immigration has caused some people some concerns. As I have said, I will shortly introduce a White Paper, which will set out proposals for the future immigration system. I understand hon. Members’ frustrations about the timing of the White Paper, but I say again that it is an entirely new system—the most significant change to our immigration rules in 45 years—and we need to take the time to get the details right. We have made it clear that it will be a system based on skills, not on someone’s nationality.
The design of the future system has to be based on evidence about the needs of our economy. This is why we have commissioned the independent Migration Advisory Committee to report on the economic impact of EU workers and to ensure that the new system benefits Britain. In addition, we have been listening and engaging with businesses up and down the country to hear their views, concerns and ideas. I am grateful to all those who have taken the trouble to give us their views and have submitted evidence to the MAC. We have considered that advice, and we will be setting it out and taking it into account when we publish our White Paper.
Our future system will be flexible, so that the trade deals we agree with the EU and with others can allow businesses to provide services and move existing staff between offices in different countries, supporting our dynamic economy. The agreement we have reached with the EU will enable us to do this through visa-free travel for tourists and business travellers, and arrangements for service providers and for researchers and students.
UK Steel Industry
Debate between Sajid Javid and Geraint Davies
Sajid Javid
The hon. Gentleman is absolutely right: there can be a devastating effect on the community that goes way beyond the actual job losses at SSI. That is why we must do everything, together, to prevent the same thing from happening to any other community, and we must support the supply chain, because, as he says, there is a ripple effect throughout the community on many, many businesses.
Geraint Davies
The Secretary of State may know that I worked very hard with Members on both sides of the House to secure a proper pension for the Visteon pensioners from Ford when it had short-changed them. Given that Tata has almost fully paid up its pension fund, will the Government socialise that fund, so that the pensioners can be secure in the knowledge that they will have a pension in future, and so that prospective buyers need not be concerned about that?
Sajid Javid
I will move on to the subject of Tata in a moment, but the hon. Gentleman is right to identify pensions as an issue, and we are considering all possible solutions.
Let me say a little about the action that we have already taken. We have taken action on power: £76 million has already been paid to steelmakers to compensate for high energy bills, and we expect to pay more than £100 million in the current financial year alone. In the autumn statement, just five months ago, we announced that we would go further. Energy-intensive industries will be exempted from renewable policy costs—a move that will save the steel industry more than £400 million by the end of this Parliament.
UK Steel Industry
Debate between Sajid Javid and Geraint Davies
Sajid Javid
As I have said, I am very pleased about the fact that the mills in Scotland have been saved and that those jobs have been secured, but I hope the hon. Lady will agree that the reason those mills have a very bright and secure future is the strength of the British economy. Had Scotland been independent, I think the outlook would have been very different. The hon. Lady wants reassurance that we will do everything we can for steel businesses in other parts of the UK, and that is exactly what we will do.
Geraint Davies (Swansea West) (Lab/Co-op)
Tata Steel has invested hundreds of millions of pounds in Port Talbot in recent years. Along with Swansea University, it has developed multi-layered steel that generates its own electricity and that therefore has a negative carbon footprint when it clads buildings. Will the Secretary of State consider the possibility of minority equity share- holding in Tata Steel, to show that we are all in it together and to get a margin from Government procurement? At the very least, will he match Tata Steel on any offer he gives to prospective buyers, including help with the pension funds?
Sajid Javid
I know that the hon. Gentleman has worked hard on this issue and he has suggested some other good ideas. When I visited Port Talbot for the third time last week, I saw the power plant as well as the blast furnaces. I saw how they worked together and also learned about some of the recent investment that has taken place and the efficiency it provides. He is absolutely right to highlight that. On the question of whether we would consider investing alongside others, I said earlier that we would look at co-investment. I am trying to make it clear that no option is off the table.
Oral Answers to Questions
Debate between Sajid Javid and Geraint Davies(8 years, 3 months ago)
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Mr Speaker
Order. Dr Hunt, you were not taught to behave like that at your very expensive public school.
Geraint Davies (Swansea West) (Lab/Co-op)
That was a very funny joke, Mr Speaker.
The Environmental Protection Agency in America is suing Volkswagen for installing defeat devices that cheat emissions testing in millions of cars. What work is the Secretary of State doing with manufacturers in Britain to ensure that such devices are not installed, so that we can look forward to a future of greener cars where all cars are properly tested at MOT and the public are safe in the knowledge that more and more people will not die unnecessarily from pollution?
Sajid Javid
That is a good question. It should be very clear to all companies that if they engage in such cheating or bad practices, the Government will crack down hard on them. We will work with our colleagues in the European Commission and elsewhere to make sure that all rules are applied. We in the Department for Business, Innovation and Skills are working on introducing real emissions testing, with the Department for Transport and colleagues in the European Union.
Budget Resolutions and Economic Situation
Debate between Sajid Javid and Geraint Davies(8 years, 9 months ago)
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Sajid Javid
What I accept is that we need a welfare system that protects the vulnerable and is affordable and sustainable for the long term. As we deal with excessive welfare spending, we are able to strengthen the economy, which means higher wages for working people. I hope that the hon. Gentleman can support that.
Geraint Davies (Swansea West) (Lab/Co-op)
Does the Secretary of State accept that child tax credits are, in fact, work incentives based on the American earned incomes tax credit, and that the reason the cost is so high at £30 billion is that productivity and wages are so low? In particular, there are 800,000 fewer people now earning over £20,000 than there were in 2010. Is that not a complete failure?
Sajid Javid
I think the hon. Gentleman would agree that it is better to have a sustainable welfare system that protects the vulnerable while at the same does not allow companies to get away with paying lower wages than they otherwise were. I hope he supports our national living wage, especially the fact that it means someone working at the national minimum wage today will get at least £5,000 more a year by 2020 because of our national living wage.
A business-led economy in which hard work is rewarded, entrepreneurs are encouraged and aspiration is applauded —that is at the heart of our Budget. Above all, it is a Budget that supports business. For all the rhetoric one hears from politicians, Governments do not create jobs; businesses do. As my right hon. Friend the Secretary of State for Work and Pensions said last week:
“It is only when businesses are thriving that the people of our country can thrive too.”—[Official Report, 9 July 2015; Vol. 598, c. 482.]
It is only a strong and growing economy that allows us to invest in the NHS and schools; and it is only a strong and growing economy that allows us to spend money on protecting our most vulnerable citizens. Anyone who is successful in business should be congratulated and not condemned.
Sajid Javid
If the hon. Gentleman had joined me in Longbridge on Friday, he would have heard me set out the Government’s productivity plan, which I shall come to in a moment.
Productivity is not just some obscure measure that is of interest only to economists. Higher productivity means higher incomes. When productivity rises, standards of living rise too. That is why, as part of last week’s Budget, we published “Fixing the foundations: Creating a more prosperous nation”. It is our blueprint for getting Britain moving, building and growing, and creating the environment that is needed to tackle the productivity gap once and for all.
The productivity plan will support apprentices with a new compulsory apprenticeship levy that requires large businesses to invest in their own future. It will boost skills with a radical streamlining of further education qualifications and the creation of prestigious institutes of technology. It will support infrastructure, with vehicle excise duty paying for a new roads fund, and a plan to put Network Rail and the rail investment programme back on track. It will allow us to invest in innovation, putting nearly £7 billion into the UK’s resurgent infrastructure, and developing our network of Catapult centres for commercialising technology. It will make our world-class universities open to all, removing the student cap and putting higher education on a more sustainable footing. It will ensure that superfast broadband is available to 95% of UK households and businesses by 2017, and it will make it easier for the market to roll out fixed and mobile infrastructure by reforming planning rules on taller masts. It will mobilise the whole of Government behind exporting, working alongside a more effective UK Trade & Investment and building stronger links with emerging markets.
Geraint Davies
I am grateful to the Secretary of State for his generosity in giving way again. Why did the front page of The Economist sum up the Budget with the words “politically astute, economically flawed”? Why did its editorial observe that it was a result of quick fixing that focused not on productivity but on abandoning investment in the railways, not allowing enough easy access to universities, and not raising skill levels and improving infrastructure in order to make Britain strong?
Sajid Javid
Probably because The Economist was published before I launched the productivity plan on Friday.
The productivity plan will strip further red tape out of the planning system, making it easier to build the homes that British workers need. It will rebalance our economy, devolving further powers and responsibilities to the elected mayors of London and Manchester and working towards devolution deals with the west midlands, Sheffield, Liverpool, Leeds and West Yorkshire. It will create open and competitive markets with the minimum of regulation, an environment in which innovative businesses can thrive to the benefit of consumers.
The drivers of productivity are not a mystery; the barriers that prevent it are well understood. What has been lacking in this country for too long is the political will to do something about the problem by making the bold decisions that are necessary to unleash the full potential of British business. That is not lacking any more. This Government have the mandate and the will to deliver lasting change, and that is exactly what the Budget will do.
In the past few days, we have heard Labour’s former Chancellor say that his party lacks “a credible economic policy”. The Leader of the Opposition has attacked our changes in tax credits one day and supported them the next. We have heard the SNP’s economy spokesman, the hon. Member for Dundee East (Stewart Hosie), promise somehow to reduce the national debt while still running a deficit. On the Opposition Benches, economic competence is almost as rare as a Liberal Democrat Member.
Only this Government have the policies and the will to back British business. Only this Government have the foresight to invest in infrastructure and skills. Only this Government will build the homes that the country needs and the economy that it deserves. This Budget does not just fix the roof while the sun is shining. It fixes the foundations too, and I commend it to the House.
Cost of Living
Debate between Sajid Javid and Geraint Davies(10 years, 5 months ago)
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The Financial Secretary to the Treasury (Sajid Javid)
When the Opposition first tabled this motion, the title referred to the Government’s “economic failure”. The word “failure” has been mysteriously removed and replaced with “policy”. Perhaps the Opposition originally asked the Rev. Paul Flowers, who was their economic adviser, to help draft the motion. Now that they have been forced to sack him, they have had to amend the deluded original title of the motion. Even before the debate started, the Opposition have had to back down.
The Government recognise that many people up and down the country are facing living standards challenges. Each and every week I speak to many hard-working people in my constituency who are still suffering from Labour’s recession, and whose businesses or employers were hit hard in 2008 and 2009 and are still feeling the impact. Of course we all want the situation to improve.
Geraint Davies
On failure, does the hon. Gentleman accept that the movement of debt to GDP from 55% when he came into office, to 75% now and 85% by 2015, is a sign of failure both in increasing debt to a higher level than we borrowed throughout our term, and through not getting any growth?
Sajid Javid
I accept that the sharpest move in debt to GDP that this country has seen in recent times was under 13 years of Labour rule when national debt more than doubled. We will take no lectures from the Labour party about growing public debt. Allow me to remind the House, especially Labour Members, why people are facing such challenges.
Royal Bank of Scotland
Debate between Sajid Javid and Geraint Davies(10 years, 10 months ago)
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Madam Deputy Speaker (Dawn Primarolo)
Last but not least, I call Geraint Davies.
Geraint Davies (Swansea West) (Lab/Co-op)
This announcement has already helped to wipe £2 billion off taxpayer-held share value, so will the Economic Secretary consider a staged sale of RBS, in chunks, to maximise the return? Will he also consider keeping a residual shareholding, to maintain influence so that the ambition we all share can be met that RBS continues to focus on small and medium-sized enterprises, rather than runs off, as it has before, in ways that are not in the interests of the British economy?
Sajid Javid
First, the hon. Gentleman should know that share prices go up and down, often with the general direction of the market. If he is really concerned about shareholder value, presumably he was against all the changes that the Government he supported made during their time in office, which led to the true destruction of taxpayers’ money. The Government believe that the strategy RBS has set out and made clear yesterday—a bank that is more focused on the UK economy and working with British business, with a smaller investment bank—is the right one, as is the strategy of getting a CEO who can see that process through for the next few years. We think that that will lead to value creation.
Finance (No. 2) Bill
Debate between Sajid Javid and Geraint Davies(11 years ago)
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Sajid Javid
The right hon. Gentleman asks a good question. Those are some of the details that we will flesh out. If he will allow me, I will look into the question further. I hope it is clear to him that the intention is that the mortgage guarantee scheme is a UK-wide scheme.
In the time that I have left, I shall turn to new clause 5. We have always been clear that the proposed mansion tax is an issue on which the two parties of the coalition have differing views. Our Liberal Democrat colleagues have supported the principle for some time, as we heard today so eloquently from my hon. Friend the Member for Bristol West (Stephen Williams). In contrast, Conservative Ministers have very real concerns about such a proposal.
We have concerns that a third of properties in London worth more than £2 million have been in the same ownership for 10 years, and that a mansion tax could hit asset-rich but potentially income-poor households. We have concerns that a family could live in a £2 million house, but have a very large mortgage. That would mean that their net wealth was a lot lower than the actual value of the home. We have concerns that any mansion tax would be administratively burdensome for HMRC to operate, not to mention intrusive for the person having their home inspected. But Opposition Members should be aware that we are taxing anyone purchasing a new home at this high value through the stamp duty land tax of 7% on residential properties costing £2 million or more. That is a policy that is easy to administer and it will not impact on existing home owners.
The Opposition have proposed that a mansion tax could pay for a tax cut for millions of people on low and middle incomes. The Government have already introduced tax cuts for those who need it most. We are increasing the personal allowance to £9,440 from April—the largest ever cash increase. That will be increased by a further £560 to reach £10,000 in 2014-15, meeting the Government’s commitment a whole year early. That is a tax cut for 24 million people and together takes 2.7 million people out of income taxation altogether.
Budget 2013 also announced that the fuel duty increase planned for September will be cancelled. The Finance Bill keeps fuel duty frozen at current levels, resulting in the longest freeze in fuel duty for 20 years, helping households and businesses with the cost of motoring.
Meanwhile, those with the highest incomes continue to contribute the most. This year the top 1% of taxpayers—those with an income of more than £150,000 a year—will pay approximately a quarter of all income tax. The top 5% of taxpayers—those on incomes of £68,000 or more—will pay nearly half of total income tax. As part of the Government’s commitment to create a fairer tax system, since 2010 the Government have raised taxes on the rich in every Budget. Budget 2010 introduced a higher rate of capital gains tax, Budget 2011 tackled avoidance through disguised remuneration, and Budget 2012 raised stamp duty land tax on high value homes and announced a cap on income tax reliefs. The autumn statement of 2012 took action to reduce the cost of pensions tax relief.
In Budget 2013 we announced further significant measures to tackle aggressive tax avoidance and offshore tax evasion by high earners. The richest now pay a higher percentage of income tax than they did under the previous Government. No doubt those on the Opposition Benches think a better approach would be to introduce a new starting rate of income tax, but let us not forget that the 10% rate is a policy that they introduced and then scrapped once before, to the cost of many further down the income scale—the people whom they claim they want to help. Fortunately, the Government have a more coherent income tax policy, as we heard from my hon. Friends the Members for Stevenage (Stephen McPartland) and for Bristol West. Our increases to the personal allowance have replaced the 10p rate, which Labour doubled; there have been successive increases to the tax free personal allowance. Effectively, we have introduced a 0% band.
Geraint Davies (Swansea West) (Lab/Co-op)
On a point of order, Mr Amess. The Minister is not addressing new clause 5. Surely this is not in order.
Oral Answers to Questions
Debate between Sajid Javid and Geraint Davies(11 years, 1 month ago)
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Sajid Javid
My hon. Friend makes a good point about how we must tackle the record national debt that we inherited. It went up threefold during the 13 years of the previous Government’s time in power. When we set out the Budget forecast next week, my hon. Friend will get a good answer.
Geraint Davies (Swansea West) (Lab/Co-op)
Businesses in Swansea are telling me that assessing net debt should include an assessment of net assets, and they have written to me and the Chancellor asking that Swansea be considered for superconnectivity status, namely that the Government invest in our broadband capability. Is that something he is willing to look at positively with the businesses involved?
Infrastructure (Financial Assistance) Bill
Debate between Sajid Javid and Geraint Davies(11 years, 7 months ago)
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Sajid Javid
I agree with the hon. Gentleman: they are unusually silent, although they are welcome to intervene on my speech. However, I can tell the hon. Gentleman that people in Northern Ireland should be assured that the Bill is intended to help infrastructure investment throughout the United Kingdom. I agree with him that there are often some special cases in Northern Ireland, which suffers from a relatively higher level of unemployment than other parts of the UK. I look forward to receiving applications from the Province.
Two issues—two myths, I should say—arose again and again in the speeches of Labour Members. The first—
Geraint Davies
Are the Government going to become involved in the brokering of deals and the forming of partnerships with the private sector? I am thinking specifically of easyJet’s move to Cardiff airport and its discussions with First Great Western about the provision of more passenger links to ensure that when the two come together it makes sense for everyone. Are the Government willing to become involved in that?
Sajid Javid
The purpose of the Bill is to establish a structure to provide guarantees for credit-worthy projects in the private sector. Of course the Government will work very closely, step by step, with the private-sector promoters of each of the projects, and if one of the companies feels that it has a viable project that the Government should consider, it will be encouraged to discuss it with the Treasury. A specific Treasury team called Infrastructure UK, which was set up a couple of years ago, is full of specialists who understand infrastructure and have a great deal of experience. It will be keen to look at every single project, and if the hon. Gentleman has one in mind he should please present it as soon as possible.
The two myths that I heard from the Opposition—