Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Steve Barclay Excerpts
Tuesday 7th July 2020

(3 years, 9 months ago)

Commons Chamber
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Scott Benton Portrait Scott Benton (Blackpool South) (Con)
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What fiscal steps he is taking to improve local transport infrastructure.

Steve Barclay Portrait The Chief Secretary to the Treasury (Steve Barclay)
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Upgrading local transport links is a key part of this Government’s commitment to levelling up across the country. That is why we announced at the Budget £500 million for the potholes fund; £4.2 billion has been announced for discussion with the eight devolved Mayors; and there is a further £2 billion across this Parliament for boosting cycling and walking.

Scott Benton Portrait Scott Benton
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Reinstating a passing loop on to the south Fylde rail line will help to double the number of trains travelling into Blackpool South every single day, bringing additional tourists into Blackpool and helping to create new jobs, investments and opportunities. Does my right hon. Friend agree that delivering these local transport infrastructure projects is vital for furthering economic growth, assisting our recovery from covid-19 and delivering much-needed investment into Blackpool, a part of the world that I know he is very familiar with?

Steve Barclay Portrait Steve Barclay
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It is a key part of this Government’s commitment to improve transport links such as that. I know that my hon. Friend has submitted a proposal, which the Department for Transport is considering. Having been able to hear the trains on that line from my kitchen growing up, it is one that I take a particular interest in, and I know that it is a very strong scheme.

Grahame Morris Portrait Grahame Morris (Easington) (Lab)
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What assessment he has made of the economic effect on domestic supply chains of stimulating house building and regeneration.

Steve Barclay Portrait The Chief Secretary to the Treasury (Steve Barclay)
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House building is an important catalyst for the wider economy and we have put in place an unprecedented package of support in this sector. Last week, the Prime Minister announced measures to stimulate house building, including a £450 million boost to the short-term house building fund.

Grahame Morris Portrait Grahame Morris
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I thank the Minister for his answer. Horden, Easington and Blackhall in my constituency need investment in housing regeneration. The recovery plan is ready. However, we need investment to help us transform our communities with new, modern, clean and green housing. Will the Chancellor invest in housing regeneration in east Durham, because these schemes can deliver jobs, training, opportunities, green energy and sustainable domestic supply chains, and boost the local economy?

Steve Barclay Portrait Steve Barclay
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This is an area where I agree with the hon. Gentleman. That is why, in addition to the fund I mentioned a moment ago, the Prime Minister also confirmed £12.2 billion of funding for affordable homes, and there is the £400 million brownfield land fund to get schemes working immediately with Mayors for exactly the reason he sets out.

Wes Streeting Portrait Wes Streeting (Ilford North) (Lab)
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The Conservative manifesto promised £9 billion for energy efficiency schemes, but the Committee on Climate Change described even that as

“welcome but not enough to match the size of the challenge”.

Given that the Chancellor is about to announce a £2 billion scheme, why are the Government scaling back their ambition when they should be scaling up to bring down people’s bills, tackle climate change and create the jobs we need to get Britain back to work?

Steve Barclay Portrait Steve Barclay
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If the hon. Gentleman had listened to the answer I gave a moment ago, he would have seen that we are learning from the lessons of the 2008 crash. One of the measures that was put in place then saw a fall of a third in the number of small house builders, so part of the £450 million fund is providing the finance to enable small house builders to build the schemes that Members on both sides of the House agree on. It is about learning the lessons of the schemes that Labour put in place in 2008, which led to a fall in construction work.

Sarah Champion Portrait Sarah Champion (Rotherham) (Lab)
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What assessment he has made of the potential effect on levels of unemployment of withdrawing the (a) coronavirus job retention scheme and (b) self-employment income support schemes.

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Andrew Bowie Portrait Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
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What fiscal support he has provided to Scotland during the covid-19 outbreak.

Steve Barclay Portrait The Chief Secretary to the Treasury (Steve Barclay)
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The UK Government’s response to covid-19 has been UK-wide. More than 750,000 people in Scotland have benefited from the job retention scheme and the self-employed income support scheme, and Scotland has received £3.8 billion of Barnett consequentials.

Andrew Bowie Portrait Andrew Bowie
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I thank my right hon. Friend for that answer. It shows the benefits of being in the most successful political and economic Union in the history of the world. What support are the Government thinking about giving to the oil and gas sector, which is struggling from the dual blows of record low oil and gas prices and the covid-19 pandemic?

Steve Barclay Portrait Steve Barclay
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My hon. Friend is right to identify the benefit of pooling through the UK approach, and the specific issues relating to the oil and gas industry. That is why industry leaders met the Department for Business, Energy and Industrial Strategy on 11 June. Work is ongoing, particularly in relation to what support can be provided to the sector. We are very mindful of its significance to the economy of Scotland.

Gareth Bacon Portrait Gareth Bacon (Orpington) (Con)
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What fiscal steps he is taking to support local authorities during the covid-19 outbreak.

Steve Barclay Portrait The Chief Secretary to the Treasury (Steve Barclay)
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Last week, the Government announced a comprehensive package to support councils in responding to the pressures caused by covid-19. We have now provided more than £3.7 billion of additional grant funding for councils, and announced a major new scheme to reimburse them for their lost income.

Gareth Bacon Portrait Gareth Bacon
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Fears have been expressed that the Government will fully bail out financially poorly managed local authorities, while better managed local authorities, such as the London Borough of Bromley, may have to meet covid-19 shortfalls through their reserves. Will my right hon. Friend offer reassurances on that point? If covid-19 funding shortfalls remain, will he consider allowing a capitalisation directive to enable councils to fund one-off shortfalls through capital receipts or borrowing?

Steve Barclay Portrait Steve Barclay
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We have always taken the approach that borrowing is allowed for infrastructure and capital projects, but not day-to-day revenue. That policy will continue. At the same time, all councils have received support, and £16 million has been allocated to Bromley. It is right that the support addresses councils’ varied needs, and that is very much the approach that we have taken.

Meg Hillier Portrait Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
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Of course, one of the areas that local government has gone into more in order to fund its services is commercial investment. The package last week does not cover the shortfall in that, which is hitting some local authorities very hard. A number of them are looking at section 114 notices. Is the Minister prepared to see councils go bankrupt on his watch, or is there a package of support for those councils?

Steve Barclay Portrait Steve Barclay
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The Chair of the Public Accounts Committee will know very well that commercial income carries risk for councils investing in it. We are cognisant of that fact. I advise councils, where there is the risk of a section 114, to talk to the Secretary of State for Housing, Communities and Local Government ahead of any such decision.

Dan Carden Portrait Dan Carden (Liverpool, Walton) (Lab) [V]
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The Prime Minister promised to do whatever it takes, and the Housing Minister told councils:

“spend whatever it takes, the Government will reimburse you”.

Will the Minister reaffirm that pledge? Councils need certainty. Many are already cutting services, and the one-size-fits-all approach simply does not work. Will he further commit to the principle that packages announced by the Government should meet the financial cost of coronavirus, and the social need for those local authorities?

Steve Barclay Portrait Steve Barclay
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The hon. Gentleman will know that the cost for local councils will be uncertain for some time, not least in terms of the impact of lost tax income. That is why we have addressed the short-term pressure through the £3.7 billion grant and additional funding that has been allocated, including the recent £600 million for infection control.

Clive Lewis Portrait Clive Lewis (Norwich South) (Lab)
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What assessment he has made of the potential merits of including a four-day working week as part of the Government's covid-19 recovery strategy.

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Sarah Owen Portrait Sarah Owen (Luton North) (Lab)
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What discussions he has had with the (a) Secretary of State for Transport and (b) Home Secretary on providing financial support to protect jobs in the aviation industry.

Steve Barclay Portrait The Chief Secretary to the Treasury (Steve Barclay)
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Treasury Ministers meet the Secretary of State for Transport and the Home Secretary on a regular basis to discuss a variety of important issues, including the aviation industry.

Sarah Owen Portrait Sarah Owen [V]
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I have asked Ministers multiple times why it is that we have not yet seen a specific package of support for the aviation industry, and I have received general answers about general measures that are clearly not working, with easyJet already consulting on 4,500 job losses. Thousands of jobs in Luton and its council are reliant on income from Luton airport. If the Governments of France and Germany are protecting their aviation workers, why are this Government not doing the same?

Steve Barclay Portrait Steve Barclay
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We continue to work closely with the sector and are willing to consider the situation of individual firms, providing that all other Government schemes have been explored and all commercial options exhausted, including raising capital from existing investors.

Jo Gideon Portrait Jo Gideon (Stoke-on-Trent Central) (Con)
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What fiscal steps he is taking to support the charity sector during the covid-19 outbreak.

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Jonathan Gullis Portrait Jonathan Gullis (Stoke-on-Trent North) (Con)
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What recent discussions he has had with the Secretary of State for Education on ensuring adequate funding for schools.

Steve Barclay Portrait The Chief Secretary to the Treasury (Steve Barclay)
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I regularly meet the Secretary of State for Education to discuss school funding. We are providing a £1 billion package to help students catch up on lost learning, and that sits alongside the £100 million to boost remote education and the additional £7.1 billion of core funding for schools that we announced at the 2019 spending round.

Jonathan Gullis Portrait Jonathan Gullis
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I know that my right hon. Friend enjoyed his time in Stoke-on-Trent during winter last year, but he will also know that, sadly, the area of Stoke-on-Trent, Kidsgrove and Talke is ranked in the bottom 20% of the social mobility index. Sadly, we are also well below the national averages in both young and old taking up courses at levels 3 and 4. Will he set out the steps that the Department is taking to support further education? Does he agree that post-16 providers, such as Stoke-on-Trent Sixth Form College, play a vital role in levelling up opportunity and upskilling and retraining both young and old, enabling them to be better off than those before them?

Steve Barclay Portrait Steve Barclay
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As a former teacher, my hon. Friend speaks with great authority on such issues. I absolutely agree that a strong post-16 education system is vital to our recovery. That is why we have applied a range of flexibilities to the usual funding arrangements, and the Department for Education has set out further details.

Jane Stevenson Portrait Jane Stevenson (Wolverhampton North East) (Con)
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What fiscal steps he is taking to support innovative and fast-growing firms during the covid-19 outbreak.

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Lee Anderson Portrait Lee Anderson (Ashfield) (Con)
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For too long, Ashfield has been left behind. My constituents are waiting with anticipation for the Chancellor’s financial statement tomorrow. They care about infrastructure, roads, rail transport, town centre funding and the future high streets fund. Can my right hon. Friend please assure me that Ashfield will be prioritised as we begin the process of levelling up across the country?

Steve Barclay Portrait The Chief Secretary to the Treasury (Steve Barclay)
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As the Prime Minister said last week, we are doubling down on levelling up, and he committed last week to £95 million for shovel-ready projects in the east midlands, in addition to the £10.25 million of accelerated funding from the towns fund for Kirkby-in-Ashfield. I look forward to working with my hon. Friend in his commitment to levelling up his constituency.

Emma Hardy Portrait Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
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It has been a pleasure to meet the young entrepreneurs in Hull. Many of these young people faced great adversity before setting up their own businesses, but they have had no income, no support and no grants from the Government. Have these young people been forgotten?