(5 years, 10 months ago)
Commons ChamberMay I, on behalf of my party, express our sympathies to those who have lost loved ones during this health crisis, and to those in the health service who have, manfully and womanfully, worked hard to ensure that lives are saved?
We welcome the Government’s measures, and the announcements made in the Chamber today and by the Prime Minister last night. It is, of course, very difficult to balance the economic needs of the country with the imperative to safeguard people’s health. With hindsight, many people might criticise some of the things that the Government have done, but I believe that the decisions that were taken have had success in reducing the death toll and helping many businesses to survive, and we welcome many of the measures to be introduced.
I believe that dealing with the virus and how we get out of lockdown should be approached on a UK-wide basis. Of course there are going to be different nuances and conditions in different regions of the United Kingdom. For example, in Northern Ireland we have a different school year from other parts of the United Kingdom, so some of the education measures may well be different. The peak of the virus is also different in different regions, so that may lead to different timings. Nevertheless, a UK-wide approach is important.
A number of Members have already mentioned the fact that we share a common border with the Irish Republic. Surprisingly, despite the Good Friday agreement and the emphasis that the Irish Government have placed on it, at every step of this crisis they have not consulted the Administration in Stormont. When they had the lockdown, they did not consult. When they relaxed some of their measures, they did not consult. They are even taking a different approach to quarantining people who come in from outside Ireland and would eventually finish up in the United Kingdom. I think it is important that we have a UK-wide approach. We appreciate the co-operation that there has been on a weekly basis with the Administration in Stormont by Westminster.
Looking forward is the important thing, because many businesses are concerned about what happens when the lockdown stops and this situation finishes. We see a number of issues. First, there has to be no cliff edge, but a tapering of the job retention scheme, which has been so vital to ensuring that workers have some money on which they can live and that employers do not have to lay off vital workers and then have to recruit them again.
Secondly, various sectors of the economy have been hit far more than others. Tourism in Northern Ireland is an important sector of the economy, and it will take some time for it to ramp up. It is important that we look at sectoral support.
Thirdly, many companies have already taken on additional debt through the bounce back loans and the coronavirus business interruption loan scheme, but they are debt-heavy, and there needs to be some reconsideration of how that leverage is reduced and debt replaced with equity. The banks have an important role to play in that, and I hope the Government will work with the banks. It is important that we work our way out of this together. I will finish, because I see you are rising to your feet, Madam Deputy Speaker.
(6 years ago)
Commons ChamberI can confirm to my hon. Friend that the loans available already will be available to those who are self-employed and that many of them, those who do have small properties, will benefit from the business rate reliefs and grants too.
My party also wishes to work with the Government on ensuring that we get through this crisis as easily as we can. Redundancies are already starting across a range of industries in Northern Ireland. It is important that if the Chancellor is coming with the next step, it addresses the issue of how we keep people in employment and how firms are supported. I understand that he wants to get this right, but he also has to get it done.
I can tell the right hon. Gentleman that we will get it done, we will do it at pace and we very much agree that it is important to protect people’s jobs. That is the security we want to provide.
(6 years, 1 month ago)
Commons ChamberI am a passionate believer in improving east-west connectivity across the north. I am pleased to say that I met the leader of Bradford Council just the other week. Bradford has an exciting future as one of the younger cities in the country. I believe that the plans that NPR has put forward include Bradford. We are happy to look at those. Transport for the North is actively engaging with local stakeholders on the various routes for improving connectivity between Manchester and Leeds, and that includes Bradford city centre.
What progress has been made on the feasibility study on a bridge between Northern Ireland and Scotland, as promised by the Prime Minister? More immediately, have there been any discussions with the Scottish Government on the upgrading of the A75—an important road link to Northern Ireland and important to the economic corridor in south-west Scotland?
The Prime Minister is passionate about improving connectivity across the United Kingdom. As my right hon. Friend the Member for East Antrim (Sammy Wilson) will know, that is one particular project that the Prime Minister has expressed interest in and he can assume that we are busy at work fleshing out what it might look like.
(6 years, 2 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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Absolutely, and the hon. Gentleman makes that point very clearly. I will come on to the importance of staycations in this country now.
Does the hon. Lady agree that because motorhomes are used on average for only 31 days each year, a tax of £70 a day is not likely to produce the kind of result that she is talking about?
Absolutely, and the right hon. Gentleman must have read my speech because I will come on to that very point later.
What happens to staycationing locations across the UK that will lose income and tax revenue because of these proposals? Have the Government completed any studies on this issue? What do they propose to do for people who lose their jobs in the tourism sector because of this arrangement?
We know that staycations stop people from getting on planes, which damage our air, or taking cruises, which damage our marine ecosystems and pollute our waters. So, by holidaying at home, we see lower levels of greenhouse gas emissions and thus less pressure is put on our environment.
The increase in taxation is already having a significant impact on the staycation industry. Unlike the car industry, the motorhome sector saw modest growth year on year up to September 2019, when it recorded a fall of over 7%. That was the very month that the increase came into effect.
I would like the Minister to explain why the Government are penalising 15,000 motorhome-owners, who all contribute to our domestic tourism industry and only use their motorhomes for leisure purposes for about 30-odd days a year, as we have already heard. The policy cannot be about reducing air pollution levels, because if it was, the Government would have a more thought-through and logical approach.
Does the Minister accept that it is not the percentage of the purchase cost that is important but the running costs per year? If a vehicle is being used on the road an average of 3,000 miles a year, a duty of more than £2,000—nearly 60p or 70p a mile—is a substantial increase in its running costs.
The right hon. Gentleman raised the issue with me in the House at Treasury questions. He is obviously very committed to ensuring that we look at it again. Of course, VED is a one-off expense that is paid at the point of purchase; it does not accrue to the running costs per se. The way in which we tax that is through fuel duty. If someone drives more miles, they will pay more fuel duty. That is the real correlation and link. However, I recognise that, if people do not use the vehicles a great deal during the course of any given year, VED represents a substantial one-off cost in the first year of operation.
(6 years, 2 months ago)
Commons ChamberMy right hon. Friend stands up with a positively lengthy question. As he knows, I share his enthusiasm for escaping certain EU regulations when we leave the EU on 31 January. We are, however, convinced of the need to incentivise the reductions in our transport emissions that I have referred to, which represent a third of the UK’s total CO2 output.
Does the Minister think that this green tax, which has increased vehicle duty by 1,000% for many motorhomes—which are used, on average, for 31 days per year and do about 2,000 miles per year—is fair, and will he review it?
The figure of 1,000% is somewhat misleading. Only motorhomes with the very highest emissions would fall into that category, and the extra VED applies only in the first year. But of course we keep all taxes under review. I am sensitive to the concerns of the industry; clearly, a significant number of jobs are supported by it. As always, we keep these things under a watching brief.
(6 years, 5 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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Does the Minister not find it ironic that the shadow Chancellor should be concerned about the future value of the pound and the impact on speculation, given that he and his party have spread economic gloom and doom, have talked the economy down, and have proposed lunatic economic policies if ever he should get his hands on the levers of power in this country? Does the Minister agree that the real honeypot for speculators is not our leaving the EU but the prospect of a Labour Government?
(6 years, 6 months ago)
Commons ChamberI agree wholeheartedly. Let me take this opportunity to thank my hon. Friend for—along with other Conservative colleagues—helping me to focus on the issue of Scottish farmers, which has helped to secure the £160 million. She is also right about the extra £1.2 billion for Scotland. It is a huge amount—a record amount—but, unfortunately, one thing that we can be sure of is that the SNP will waste it.
Notwithstanding the best efforts of some Opposition Members to talk the economy down, I am glad that the Chancellor has been able to make these announcements. I welcome the £400 million for Northern Ireland, which will help us to recruit police officers, reduce waiting lists and give some relief to school budgets. Does he recognise, however, that, if he is to realise his goal of levelling growth across the United Kingdom, much more still needs to be done to ensure that resources are sent to Northern Ireland and other regions of the United Kingdom to ensure that growth is experienced equally across the UK?
My right hon. Friend has made an important point. I thank him for his welcome for the extra £400 million for Northern Ireland, and also for his reference to levelling growth across the country. In my statement, I referred a number of times to the need to ensure that we have growth in every part of our great United Kingdom. That will require infrastructure investment and I hope that, when I set out the infrastructure strategy later this year, he will welcome it for those reasons.
(7 years ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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I thank the hon. Gentleman for his comments. The key issue for many of these people, who have been waiting for a very long time—sometimes up to 10 or 11 years and longer—is to make sure they can get access to a mechanism that interrogates the evidence and deals with it swiftly. I was not indicating to my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) that we should not say there are not parallels or themes, but I just feel that we have to look at the evidence on a case-by-case basis. I am certain that there is good will in the dispute resolution mechanism to interrogate thoroughly past cases that are unresolved.
We acknowledge the work that the Government have done to date, and the point the Minister made about the need to strike a balance between banks being able and encouraged to lend and, at the same time, meeting the interests of their customers. Does he agree with me that an equally important balance is that between powerful financial institutions that have all the resources—and sometimes the resources of the state—behind them and small businesses that have been damaged economically by the actions of those banks and very often do not have the resources to fight back? Despite all the measures undertaken, 10 years down the line many are still seeking redress, still finding themselves blocked by the actions of the banks and now, ahead of the historical compensation scheme coming in, finding themselves forced into the courts and perhaps having their cases dealt with before the scheme comes in. Does he not agree that now is the time for an independent financial services tribunal, and for the FCA to make it clear to the banks that, ahead of the historical compensation scheme coming in, no further court action should be taken against individuals?
I believe the dispute resolution service that has been set up gives the scope to go back over 10 years of disputed cases, and there is a desire to provide quick access. As the right hon. Gentleman points out, some of these cases have been going on for far too long. The situation is that the banks were in a very bad place with respect to the power they wielded over individuals and small businesses. They want to sort this out, and that is why they have engaged constructively in the construction of this dispute resolution service.
(7 years ago)
Commons Chamber
Mr Hammond
I can give my right hon. Friend that assurance. I am acutely conscious of the fact that we are committed to building a tunnel under the Thames but we have not yet committed to the link roads that will link that tunnel to the rest of the road network, and of course we absolutely will do so. This is a broader-based review to look at how we replace PFI and EIB funding over the medium term.
I welcome this statement and the news that despite the best and concerted efforts of those who think that by talking the UK economy down they can somehow stop us leaving the EU, it is pleasing that employment is up, job creation is up, and the Government finances are in a better shape. That shows that we do not need the EU as some kind of economic crutch in order to enable us to stand on our own two feet. I also welcome the Barnett consequentials for Northern Ireland.
For the future, what progress has been made on the review of air passenger duty and VAT on the hospitality industry in Northern Ireland? If the Chancellor is going to help subcontractors deal with late payments, will he consider the use of project bank accounts, which have been very successful in Northern Ireland in ensuring that public sector spend on infrastructure projects actually reaches the companies that spend the money?
Mr Hammond
I welcome the right hon. Gentleman’s comments. I draw the House’s attention to the fact that one of the features of the jobs growth we have delivered is the regional distribution of it. This is not London-centric jobs growth; it is across the country. Productivity, wages and employment have grown in every region of the UK, which is very welcome.
The APD working group has been established, as the right hon. Gentleman knows, but we are not in a position to take any action in that area until there is a devolved Administration in Stormont. On VAT, as he knows, we are not able to take any action while we are members of or subject to the rules of the European Union, but we will continue to look at these issues.
(7 years, 4 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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What the Exchequer Secretary said at the Dispatch Box was right, and these reports deliver on exactly what he said. [Interruption.] If the hon. Gentleman gives me a moment, I will try to explain the answer to his charge. First, he sought a comparison with the baseline, as he termed it. The baseline comparison is there: it is the status quo—it is our arrangement with the EU27 that we have at the moment as a member of the EU. He then suggests that we did not make a comparison of the deal with that, but many Labour Members have said, “We don’t know exactly what the deal is and we want to know what it is now.” We do not know what the deal is because the political declaration—understandably, given that we have a negotiation now to go through—sets out the parameters and the spectrum of potential outcomes. Therefore, in order to fulfil the obligation the Exchequer Secretary made at this Dispatch Box, we have made just that comparison—a comparison of the Chequers arrangement, with a sensitivity around that, with the base case. That is exactly what the Exchequer Secretary said we would come forward with.
It is probably a gross understatement to say that economic forecasts have a very poor record. Since the referendum, all the forecasts have indicated that we should now be in the midst of a deep economic recession, yet the Government are boasting—and have real-time evidence—that we are riding the crest of the economic wave. In the Minister’s initial response, he said that this document was only about the potential fiscal impacts. He also said that it did not anticipate future policies, that it was based on a hypothetical free trade arrangement, and that some of the effects would be felt only in the long run, which of course is very uncertain. Can he understand why many of us in the House do not believe that it is worth the paper it is written on? This is certainly not the basis on which we should make a judgment on whether to vote for a flawed and deeply damaging deal.
These papers put forward an honest appraisal of the estimated impacts of the different scenarios that we have been discussing this afternoon. The right hon. Gentleman makes a more general point about the inexactitude of economic forecasting, and he is right. We have a whole slew of variables, and we are looking at casting 15 years beyond the end of the implementation period—in other words, to 2034-35—which is quite a challenge. However, that is not the same as saying that we have not taken an honest and robust approach to this task. We have done that, and we have gone further. At the behest of the Treasury Committee, we have said that we will have an expert to go through all the details of the analysis, with access to all the officials across all the Departments involved, and that that information will in turn be made available.