Live Treasury Questions House of Commons

Welcome to BBC Parliament's live coverage from the House of Commons.

The main business today is the remaining stages of the welfare

make ?12 billion of welfare cuts and make ?12 billion of welfare cuts and

apprentices. Member to join me for a apprentices. Member to join me for a

round-up of the day in both Houses of Parliament at 11pm this evening.

First, we have questions to George Osborne and his team of ministers.

Order! Questions to Mr Chancellor of the Exchequer, -- Chancellor of the

Exchequer. I would like to answer Exchequer. I would like to answer

this question together with this question together with

questions two, three and four. Last night, unelected Labour and Liberal

peers voted down the financial measures on tax credits approved by

the selected House of Commons, which raises clear constitutional issues,

which we will deal with. We will continue to reform tax credits and

save the money needed so that Britain lives within its means.

While at the same time, lessening the impact on families during the

transition. I will set out the plans in the Autumn Statement. We remain

determined to build low tax, low welfare economy that written needs

and the British people want to see. 6800 children in South Shields are

growing up in families which rely on tax credits. One of my constituents

told me tax credits at the moment only make it possible for families

to feed and clothe their children as it is. If the government keeps

making cuts to those who are the lowest paid, we may just give up

hope. The public, experts, some of his MPs and the other place agree

that he is victimising working parents and their children. So can

he give my constituents some hope and shelf these ridiculous cuts. We

will give her constituents support, and the constituents we all

represent in the House, by delivering economic security.

Economic security that has seen unemployment fall in her

constituency by 44% since 2010. One of the ways we deliver economic

security is by controlling the welfare bill and making sure the

country lives within its means, that is what we will continue to do. The

Chancellor has singularly failed to listen to the SNP and this House

when we have said he needs to think again about tax credits. He sounds

the peers than them. How about he the peers than them. How about he

listens to the people and drop these plans once and for all? This House

of Commons voted three times for the changes rejected in the House of

Lords, and we look forward to the support of the SNP in that

constitutional question. But I will make this point, we need to have a

welfare system that works, we need to move to a lower welfare,

wage economy, and we do that by wage economy, and we do that by

introducing the National minimum introducing the National minimum

wage and having a welfare bill that the country can afford, that is the

best we can do for the security of the people. If the Chancellor had

listened to the evidence from the outset, he would not be in this

mess. If his backbenchers voted with their conscience, there would be

alignment of the opinion with the alignment of the opinion with the

other place. He needs to appreciate he needs to go back to the drawing

board with his failed policy that his working -- hates working people

the hardest. -- hits. We will deliver what we promised in this

Parliament. I remember a time when the Labour Party used to support

have abandoned that approach. We have abandoned that approach. We

working people, who need controlled working people, who need

welfare and a country that lives welfare and a country that lives

within its means. He is not your. -- here. Does he agree that whatever

our views on the tax credit dispute, our views on the tax credit dispute,

in overturning the settled will of in overturning the settled will

the elected chamber, the unelected the elected chamber, the

Lords have exercised power of a Lords have exercised power of a

chamber of parliament in the tax chamber of parliament in the tax

it has been the established -- well it has been the established -- well

established that they should only have the legitimacy of a

consultative assembly? He makes an important point. On any five

House of Lords blocked a statutory House of Lords blocked a statutory

implement, and never on a financial matter. We had a range of opinions,

telling us yesterday that this was unprecedented. It is something we

have the address. The Prime Minister made that clear, and that is what we

are going to do to make sure that the elected House of Commons is

responsible for the tax and spend decisions affecting the people of

the country? -- people of the country. I wrote to the Chancellor

only earns ?11,000 a year, and says only earns ?11,000 a year, and says

that ?31 a week has been cut from her budget. I know he will meet me

and discuss this, but surely the point about this is that we should

have conversations here, and he will listen. Ultimately we will be held

not right is unelected people who not right is unelected people who

how the people are tax asked and how how the people are tax asked and how

to spend our money. I agree with my honourable friend on the

constitutional point, which is a matter of the House of Commons will

want to address. I take very seriously the point he raises about

his constituent. I have made it clear that we will listen about how

to make the transition on the lower welfare, higher wage economy, and we

have introduced controversial changes in the last Parliament, for

example removing child tax credit from higher earners. We make

changes, listening to Parliament, to smooth the transition is to these

reforms. So of course we will listen to the House of Commons in this

respect. But the end goal is clear. This country cannot have an

unlimited welfare budget squeezing out other areas of expenditure.

at half 1% of the world's at half 1% of the world's

population, 4% of the economy, but 7% of the welfare budget. Can the

Chancellor stick to his guns on the issue of tax credits? Gordon Brown

spent billions of pounds he did not spent billions of pounds he did not

have on tax credits to try to buy votes at the 2010 election. Does he

agree with me that there is no painful way out of huge debt, and he

will do well to -- people will do well to remember that. I completely

agree with my honourable friend, and spending on tax credits went up

three times during the period of the last Labour government. Networking

poverty increased during that period, so it had the opposite

effect intended. When the country effect intended. When the country

loses control, the people who suffer are indeed the low paid. They are

the people who get turned out of work. It is not the richest in the

country or the trade unions barons who lose their job. It is the

broadest in the country. We can deliver economic security for them,

but we're a to deliver controlled but we're a to deliver

welfare and economic security for welfare and economic security for

the working people of this country. The Children's Society estimate

there are 10,000 children living in 5100 families in Robert who will be

punished by the tax credit changes. Provisions will the Chancellor put

transitional period? I will set out transitional period? I will set out

in the Autumn Statement how we will do this. The people of Rotherham and

the rest of the country want to see this. We have to make choices. Are

we prepared to see the country we prepared to see the country

decline, are we prepared to see the budget out of control? Are we

prepared to see jobs lost or do we want to continue delivering economic

security that sees a record number of people in work and has seen

employment increase in Robert? The average taxpayer here now pays ?2000

a year in extra tax just because of the government's debt interest

payments. Is it not time we saw this tax on the payslips or that those

who believe they can spend with impunity including the neglect --

unelected chamber... He is right to call it that. One of the largest

items of government spending is paying the creditors the owe, and

that crowds out the money we could be paying into education. We have

been taking forward and innovation put forward to a backbencher on this

side of the House, and we now send attack statement to every taxpayer

-- a tax statement to every taxpayer to see how much we spend an interest

and how urgent it is to remove this deficit. On the constitutional

point, will the Chancellor read out the specific sentence in the

Conservative Party manifesto where he promised he will be cutting tax

credits? I am very glad he has a copy of the Conservative manifesto.

It is an excellent document that says we're going to deliver better

schools for people, put more money into the National Health service,

invest in transport, and it says on the document we will make ?12

billion of welfare savings. We have introduced wage increases

that matched what we were proposing to do by statute. We are already

seeing the benefits of the national living wage coming into effect

before it is even introduced. We know there are 500,000 more children

in poverty since 2010... Half an million more children in poverty

since 2010 and potentially 4 million children in poverty by the end of

this Parliament if the Chancellor is in listening mode, knowing he does

not need to make these cuts in order to balance the budget, why does he

not listen to those who say start now with the policy of tax credit

cuts? I'm afraid the honourable gentleman is just not correct on the

numbers. Child poverty is down by 300,000 since 2010 and the number of

children in workless households is half a million fewer that was when

this government came to office. It is difficult to take lectures from

the SNP about balancing the books. They made forecasts for oil revenues

which would have left Scotland with a ?30 billion black hole if they had

got their way. We will go on delivering economic security for the

people of Scotland and the rest of the UK die taking the difficult

decisions that his party ducks. The Chancellor is in denial. Is it not

the case, Mr Speaker? Absolute denial that yesterday the 26th of

October demonstrated to things. The Chancellor has lost his political

touch and his chances of being Prime Minister have gone up in a puff of

smoke. All they want to talk about this party political games rather

than sorting out the mess that this country was in six or seven years

ago as a result of the changes --. Six or seven years ago. As result of

the changes we made things have improved and we will go on making

the changes. He can go on praising the House of Lords that he has spent

his whole life campaigning to abolish and I will go on delivering

the reforms to our economy needed to help Scotland continue to grow. At

the end of the last Labour government, nine out of ten families

with children were eligible for tax credits. Some of them aren't up to

?60,000. In other words, they were paying their taxes and getting some

back. Isn't it better to reduce taxes in the first place so people

keep more of their hard earned income? I think my honourable friend

speaks for her Lincolnshire constituents and the whole United

Kingdom in saying what we want to do is move to the lower tax, lower

welfare higher wage society. We increased the personal allowance to

?11,000 and cut taxes for business, reducing corporation tax, expanding

employment allows some smaller employment allows some smaller

businesses could take more people on. It is about continuing to

deliver record levels of employment in our country and growing economy

which today's GDP figures confirm. Can I remind the House that 3

million people out there who have done everything asked of them,

bringing up their children, going to work, this is not a constitutional

matter. They will lose ?1300 per year. Given what happened in the

other place last night, can I reassure the Chancellor that if he

brings forward proposals to reverse the cuts to tax credits fairly and

in full he will not be attacked by this side of the House. Indeed, he

will be applauded. But can you assure us that whatever proposals he

brings forward he will not support any that an independent assessment

demonstrates will cause any child to be forced to live below the poverty

line? I am of course happy to accept any proposals he puts forward but I

would make this point. I am happy to listen to those proposals but let me

make this point. There is a difference between those who say we

want to make no savings to welfare at all, we want to abolish things

like the benefit cap, we are not prepared to make savings at all to

the tax credit system, and those who have said yes, we do want to move to

a lower welfare society but we want help in the transition. If he has

puzzles to help in the transition of course I will listen to them but if

years promoting uncapped welfare and uncapped borrowing then I don't

think the British people will listen to him. The Chancellor has a choice

before him. He can push on with the tax giveaways to multinational

corporations, press on with tax cuts to the wealthiest few in inheritance

tax that he announced in the summer budget, or he can reverse those tax

breaks for the few and instead go for a less excessive surplus target

in 2019/20 and the end -- and be in a better position. Is he prepared to

listen to reason? Is he or anyone on that site willing to step up and

show some leadership on this issue? Let's remember, we inherited a tax

system where city bankers were paying lower tax rates than the

people who cleaned them. Multinationals were paying no tax at

all. We have introduced a new tax to make sure multinationals to not

divert their profits and we have increased capital gains tax to avoid

that abuse of tax rates. We are not going to take lectures from the

Labour Party on a fair tax system. I would say to him, he in a way

reveals what he believes, which I respect, which is to abandon the

surplus real and run at the -- run a deficit forever. If you borrow

forever and don't make difficult decisions on welfare you will

that means as a result people will that means as a result people will

become unemployed and living standards will fall. That is not the

Britain I would like to see. We will take difficult decisions to deliver

lower welfare, lower tax and a higher wage economy. And this

elected House of Commons will carry on with economic plan which delivers

that. Mr Speaker, I am in discussions with the Scottish

Government on the design of its new fiscal framework. We met on four

occasions and a joint statement was released after each meeting. Talks

have been constructive and we hope to come to a final agreement in due

course. John Nicholson. Does the Chief Secretary remain committed to

a funding formula based on Barnett, as promised in the vow? The

Government is committed to the Barnett formula and delivering all

aspects of this method agreement. -- the Smith agreement. Would the

Minister think again on that answer? My constituents have ?2000

less per person on public expenditure than constituents in

Scotland and we pay the same taxes. How can that be fair? I think it is

worth noting that the Barnett formula will continue but it will

diminish in importance. For the first time, more than half of the

Scottish Government's budget will come from Scottish taxpayers rather

than a grant from the UK Government, which I think will add

extra accountability to the Scottish Government. I should like to answer

question number seven. We have a record number of people in work and

the GD PDA to today shows Britain outperforms other western economies

but there are global risks and much more can be done to fix our economy.

Bottom statement will set out ways we can do this and make tough

decisions for Britain to live within our means. The total number of

unemployed in my constituency is 219 and youth unemployment is only 36.

With my right honourable friend join me in praising institutions such as

Henley College who are providing excellent apprenticeship training?

It is good to hear about the success of the people in his constituency

finding work over recent years, and the business confidence that exists

in Oxfordshire. Henley College, which he has spoken about, does an

excellent job making sure young people have the skills they need to

take opportunities out there in the jobs market and we will go on

helping institutions like that by increasing apprentices so we deliver

the 3 million apprentices. Unemployment has fallen in my

constituency since 2010 but we mustn't be complacent given recent

news about difficulties in the West Midlands but would he agree that we

should do more to invest in skills such as science and technology so we

can equip local people with the skills they need to take future

opportunities? I visited a number of the successful businesses in his

constituency, exactly the kind of small and medium businesses that are

the backbone of the British economy. They need help with training and

hills on college -- Halesowen College can help them. As far as I

can see has been afraid to publish impact assessments on changes to

working tax credits on people taking up or remaining in work. Will he

guaranteed that given the decision last night he will look at this and

include an impact assessment? We published an impact assessment and

equalities assessment distribution or analysis of the measures we

produced in the budget. None of those were ever produced by any

Labour Chancellor. We continue to provide the information people seek

but what matters above all is getting the central judgment right

about fixing the economy, dealing with the deficit and delivering

economic security for the people she represents. The Chancellor is fond

of telling us about 2 million more people in employment when he usually

little facial lap of honour around the chamber. Has he is omitted how

many of those 2 million people would be hit by the proposed tax credit

changes and how many he would be comfortable still hitting with

revised changes? We will help with the transition. The measures to do

so come alongside the increase in national living wage, increases in

personal allowance and action we have taken to cut social rents. It

is part of a package to deliver security to people in Northern

Ireland and the UK. He remembers what it was like five or six years

ago in Northern Ireland with high unemployment, lack of business

investment, people looking for work. Now jobs are being created and

people are finding work. Has everything been done that needs to

be? Absolutely not. Let's work together to make more jobs and

investment in Northern Ireland. My local council keep talking about

cats. But a management consultant company said there will be 10,000

jobs in my constituency. Would do the Chancellor agree that his

economic policies have put that on track and we are going forward in my

area of the world and making it better for the people who live

there? He is right. As a combination of him

being in effect the local MP and the fact we have a conservative MP and

government, we are delivering more jobs into his part of Lancashire.

Remember working with him on the link road to the port, which they

campaigned for four decades, but they were never delivered. It has

now been built and delivered as part of his efforts. My party wants to

deal with the deficit. We think he has gone about it the wrong way.

We're worried about certain employment trends, for example a

trade Association has warned 20,000 jobs could be at risk due to the

announcement of withdrawal of support for solar energy schemes.

What steps does the government proposed to take to avoid

large-scale redundancies in the solar industry, and what support

will the government offer to the industry? We are in constant

dialogue, and use has decreased dramatically. We have reduced the

be consistency on what Labour will be consistency on what Labour will

argue for. On the one hand they ask to deal with the energy prices

affecting the steel industry, reasonably, then they spokesman gets

up and asks to add more cost to energy bills so we subsidise

renewals. I recognise all job losses are concerning for those that.

Regarding large-scale redundancies, the Jobcentre plus rapid response

service can help. They provide support and are working at a

colliery in his constituency. We may consider further intervention in

other cases where the impact is significant. Thank you. I also

welcome the support and retraining packages for steelworkers referred

to earlier. There are several hundred workers at the colliery

facing redundancy later this year. And a further 240 power station

workers going through a consultation, who are very worried

about their future. Will he meet with me urgently to discuss a

similar support and retraining package for these workers? I

recognise the difficulties faced by many people in his constituency. One

thing I will say is that my honourable friend is a real champion

for jobs in his constituency. Only last week he ran his fifth annual

jobs fear for his constituents, which is part of the reason

unemployment is down by more than 1000 since the last -- in the last

Parliament. I would be happy to meet with him to discuss further what

training is available for constituents affect the. 1700 people

have lost their jobs in Redcar, and it is expected total job losses will

be 9000. How long will it be for his measures to take effect and have

jobs again? We're taking a number of measures, tackling unfair practices

and speaking on that basis at EU summit. We are dealing with high

energy bills and making sure the more -- that more public contracts

go to UK steel producers. But the youth he government cannot deal with

the world's deal price -- steel price. We're making sure that the

situation is as good as it can be. This government has made a long-term

science capital commitment investing 6.9 billion in the UK's research

infrastructure. In the last Parliament we maintained the ring

fenced science budget in cash terms, at ?4.6 billion per annum, and

provided 1.75 billion of support in research and development tax credits

in 2013. Further decisions to support research will be decided at

the forthcoming Spending Review. The the forthcoming Spending Review. The

record does not match the rhetoric. Only yesterday some of the leading

companies in the UK were expressing concern that the government had a

reported plan to replace research and development investments, could

affect them and send them abroad. affect them and send them abroad.

Could he reassure Parliament and business that support will remain

available? Future plans for the tax credits are matter for the Spending

Review, but where I disagree with him is what we have done on the last

five years. For each ?1 of tax foregone on around the tax

stimulates between ?1.53 and ?2.35 stimulates between ?1.53 and ?2.35

credit scheme has been increased by credit scheme has been increased

170 -- from 175% to 210%. We 170 -- from 175% to 210%. We

in my constituency. Does he agree in my constituency. Does he agree

academic and manufacturing world's academic and manufacturing world's

are the way forward? I agree, particularly in areas

innovation. We are ranked first for innovation. We are ranked first for

research and first for research research and first for research

productivity, 3.87 times the productivity, 3.87 times the

average. By the end of the average. By the end of the

Parliament, local authorities will Parliament, local authorities will

be able to attend taxes to spend on services. Elected mayor 's will get

greater flexibility over business greater flexibility over business

rates. Each devolution deal will be spoke, but the deal agreed last

Friday with the north-east, but the deal agreed last Friday with the

North East commendable oddity includes a new ?30 million a year

funding will programme of transferring arrangement in the

region. The north-east is keen and determined to slip Whitehall's

Alicia, but some people are concerned that hard-pressed civil

servants will seek to devolve cuts while maintaining control of

spending. To avoid this, will the Chancellor commit to complete

devolved function, publishing the devolved function, publishing the

full funding figures for the years before and after the Spending

Review. Of course we will publish information, but the deal signed

million of additional funding each million of additional funding each

year going forward. If she does not think that is a good deal, she

should listen to Simon Henning, who is the chairman from her own party,

who said the agreement being signed today will bring significant

economic benefits and opportunities for businesses and residents in the

north-east. She should be welcoming it. Last week 's announcement of the

new cluster of flights between China and Manchester. It is this

government and this Chancellor who is delivering a clear vision for the

North. We had an exceptionally successful visit last week,

including the President's trip to Manchester. Important in relation to

the Northern Powerhouse was the start of the first direct flight

connecting Manchester and the Northern Powerhouse region to China,

which will be vital for the connectivity and ensuring economic

investment is brought into the region. Last week it was concluded

that the Chancellor's decision to devolve business rates to local

authorities will lead to an increased council debt levels,

cancellation of creditworthiness of governments, and will leave many

local councils including Lancashire County Council with your credit

rating downgraded. What safeguards can he promised will be put in place

to ensure that your -- poorer areas of the Northern Powerhouse do not

many years, a large number of local many years, a large number of local

authorities have been calling out for this kind of devolution of the

tax base, so they have control over their own decisions and the funding

given towards them. Many of the given towards them. Many of the

local authorities have been calling for these additional powders, they

are precisely the Labour authorities in those inner-city areas,

particularly the north and Northern Powerhouse, and we intend to deliver

on that to make sure there is devolution in the area. The

government is fully committed to implementing the cost and effective

ring fencing regime, and we remain firmly on track for the separation

of banks by January 2019. We passed the last legislation and the ring

fencing recommendations this year, and regulatory authority is

consulting on second tranche of the roles before publishing the final

rules this year. In 2012, the then government of -- Governor of the

Bank of England said that unless these regulations were specified,

there was a risk they would be watered down before implementation.

We now see Barclay's Bank joining RBS and Lloyds in the questing

significant waivers. Could he reconfirm the commitment and the

legislation? The government remains legislation? The government remains

committed to introducing a ring fencing regime as recommended in the

independent commission on banking. I independent commission on banking. I

will not comment on speculation on how individual banks would like to

do it because that is the decision as long as they remain compliant to

the restrict restrictions. Deadline is 2019. There was a lot of crying

wolf. Is she aware of anything that will be sent to foreign parts

because of it? The UK recently once again top the ball as the number one

location for a global financial centre. We believe our legal system,

language, geographic location, our brilliant skilled workforce and many

other fact is contribute to the fact other fact is contribute to the fact

that this is an excellent place to locate a global financial services

fund. My honourable friend is right to highlight the importance of

increased product vividly, which increased product vividly, which

will drive growth, raise living standards and ensure a better

range of reforms to make sure it range of reforms to make sure it

remains a dynamic and enterprising remains a dynamic and enterprising

public infrastructure. Does he agree public infrastructure. Does he

that the recent report by the that the recent report by the

Governor of the Bank of England highlighting the membership to the

European Union in positive terms suggest that if we make sure we do

protect our financial services, the protect our financial services, the

prospects will be very good for the prospects will be very good for

economy, dynamically and in terms of economy, dynamically and in terms

growth? As the Chancellor has noted, growth? As the Chancellor has noted,

is achieving reform over the EU. We is achieving reform over the EU. We

want to have a leading role in this, want to have a leading role in this,

delivering prosperity and security delivering prosperity and security

for every country in the EU, particularly integrating the single

insurance companies can invest in insurance companies can invest

machinery. Our banks doing all they machinery. Our banks doing all they

sure they can improve productivity sure they can improve productivity

in the company? He is absolutely in the company? He is absolutely

right to identify the importance of right to identify the importance of

we have gotten the highest of we have gotten the highest of

primary level of the investment primary level of the investment

allowance, and we will develop these opportunities. Does he agree

raising productivity is the route to raising productivity is the route to

raising living standards, and the raising living standards, and the

tax will all contribute to achieving tax will all contribute to achieving

that? I do agree. Rising productivity increases living

standards. Don't manufacture, or build enough.

Too much of the economic activity is concentrated in London. The

Chancellor may recognise his own words from a speech in July. Why was

he so damning about his own record? My right honourable friend has been

absolutely consistent in identifying the need to rebalance the economy

and export more. Regarding product cavity, the productivity gap has

existed for a long time. I can't even pin the blame on the last

Labour government. We have to address the shortcomings and this

government's programme is doing just that. I thank him for his answer.

The Chancellor Institute have called his productivity plan fatally

undermined by insufficient measures to improve the skills of the

existence workforce. Could that be why the UK's productivity gap has

widened to the largest since 1991 compared with other G-7 countries?

She is right to identify the importance of skills. Skills and

human development is at the heart of the productivity plan. The

apprenticeship levy is a really important structural thing to

improve. Excellent work is being done in the Department for

Education. English and maths have a vital high value in the marketplace.

Question 13. The Government is committed to raising their income

tax personal allowance to 2005 at pounds by the end of the Parliament.

This is also with our commitment to raise the higher level to ?50,000.

Personal allowance will increase to ?11,000 next year and ?11,200 in

2017/18. In raising personal allowance, one of them was

powerfully progressive things we are doing to move towards a lower tax,

higher pay society, income -- income tax means people in my constituency

will be lifted out of paying income tax entirely. Does this not sure

conservatives are on the side of working people? Those working 30

hours per week on the national minimum wage will be taken out of

income tax altogether and kept out of it and it contrasts with the

position in 2010 when people owning just 6500 pounds were paying income

tax and those people had recently seen an increase in their marginal

rate from 10% to 20%. Raising the personal allowance on its own is not

a panacea and will do nothing to address the deep levels of poverty

which exist amongst the working poor. Is she concerned at the recent

or N S statistics that show 6 million jobs pay less than the

living wage? The best way we can address poverty is to ensure we have

a strong economy with jobs growing, increasing productivity, making sure

we have the business investment we need, he pro-business approach, good

for job creation and that is why there are more people in work than

we have seen before. Topical questions. Topical number one. It is

to ensure the stability and prosperity of the country. The

Government's defeat in the other place, 4000 families in East Hull

would have lost thousands per year. Now that he is in listening mode,

would he commit to dropping this vicious assault on hard-working

families? In Kingston-upon-Hull, which he represents in this House,

unemployment has fallen by 32% since this government came to office in

2010. That is because we have delivered economic security and

committed that Britain should live within our means. Yes we will listen

to the transition we make to that law welfare higher wage economy that

we must go on making savings in our welfare budget or else it will crowd

out spending in our NHS and education system and it will mean

Hull does not have the resources it needs to thrive and prosper. Wage

increases reduce the burden of tax credits on the taxpayer. What

assessment does the Chancellor make of wage increases in my constituency

in the West Midlands and in the UK. --? The introduction of the national

living wage is going to benefit around 300,000 people in the West

Midlands, including her constituents. It is part of a

package to support the working people she represents and gives the

economic security to that West Midlands engine that we want to say.

The Chancellor said he would listen. Confirm that he will not be writing

to the 3 million families before Christmas telling them their tax

credits will be slashed. Surely he doesn't want to go down in history

as Scrooge delivering devastating news to millions of people, or does

he? Obviously we will inform families once the changes we have

made become law. The Channel Tunnel and the Port of Dover are very

important pieces of infrastructure. When there are disruptions to

services as we saw the summer it causes misery for people in Kent.

Would he agree to meet with me and other MPs from Kent to discuss what

funding can be available to manage freight in Kent? I would be willing

to meet with them to discuss the traffic jams caused by disruption at

the Channel Tunnel. We used Manston airport to relieve pressure. I know

there is talk of a longer term solution and I'm happy to talk about

it. Given the growing evidence that fixed odds betting terminals are

being used to launder money, can the Chancellor Usher this as there will

be a prominent focus on these machines in this upcoming

anti-money-laundering action plan? I'd like to thank her for her

question. She will be aware that we are in the process of considering

how we implement the fourth anti-money-laundering directive and

we will look closely at their evidence and I will encourage her to

get in touch with me. The Black Country Local Enterprise Partnership

did an excellent job bringing jobs and investment but would the

Chancellor agree that the time has come for local enter should

partnerships -- local enterprise partnerships to work together with

local authorities? I hear the member for Wolverhampton and Worcestershire

saying well said. I think in the West Midlands we have the potential

for devolution with an elected mayor if we work with the local

authorities and the local enters price -- enterprise partnerships and

MPs and I think it will give people of the West Midlands control over

decision-making, which we have given to people in South Yorkshire,

Manchester, the north-east and quayside. In my constituency there

are 9000 families with children claiming tax credits. 5500 of these

people are working families. The Chancellor said he is listening but

he has dismissed every proposal so far. Millions of families need them

to change course and make work pay. Will he listen now and introduce

transitional relief so these working families will not be out-of-pocket

by ?1300? We are listening and we are in particular listen to what we

can do to help with their transition to the law welfare higher wage

economy we would like to see in her constituency and across the country.

We will also take steps to help make sure work pays by increasing the

personal allowance to ?12,500. And by introducing the national living

wage which will help thousands of people in our constituency and by

supporting the businesses in our constituency without which we

wouldn't have the jobs employing local people. Since 2010, over

37,000 of my constituents have had their taxes cut, enabling them to

keep more of what they are and and some for the first time I been able

to accumulate savings. Can the Chancellor assure them that the

Government will continue to cut their taxes and support them with

future saving? I can give my honourable friend who represents his

constituency so well in Bolton, we will go on supporting his

constituents and introducing savings and savings allowance and a help to

buy Isa. Will he reflected on our thousands of my constituents feel at

the prospect of losing thousands of pounds every year through his

actions? The people who suffer most when the economy fails and the

country feels are the people she talks about, the low paid. They will

lose their jobs and they are the victims of economic insecurity. We

are determined to deliver economic security and the controlled welfare

bill that the people she represents have to pay for through their taxes

and we will set out how to ease the transition. The call Ocean

government freed pensioners from mandatory annuities and encouraged

savings through ices and enrolment. Tax relief to pensions are expensive

and favour higher rate taxpayers. Does he agree that sensible reform

could be considered to help answer the budget without distance in

devising saving? We have taken significant steps to encourage

saving, not least giving pensioners control over their pension pots in

retirement and trusting those who have saved all their lives without

money they have earned to put aside. We are open to consultation on the

system of taxation of pensions. It is an open consultation, a Green

paper. We have had interesting suggestions about potential reform

and we will respond to the filly in the budget. Can you confirm there is

nothing in the passing of the charter which restricts the ability

to borrow of Scotland? The deal we struck with the Scottish Government

on capital borrowing remains intact. What we want to do is strike a new

agreement, a new fiscal framework, and we are having a good discussion

around capital borrowing powers, resource borrowing powers, and the

mechanism to genuinely make sure that Scotland sees both the benefits

and bears the costs of any decision taken by the Scottish Government,

which I think is the true nature of devolution which I'm sure the SNP

want to see. Would he agree with me that we simply must reform this

crazy tax credits system that enforces Lope and that we take no

lessons from the opposition which failed cities like mine. The tactic

of bribing the lowest orders not to improve social mobility and help

them but simply to win their votes must end in this country for good?

He makes a powerful point that we created a welfare system which

subsidises low pay and surely it is better to increase that pay? That is

why we are introducing the national living wage. Under the devolution

deal the Chancellor committed ?30 million a year for a new investment

fund for the north-east. Will this be new money or will exist in grant

speak at? Where is the guarantees he will not be robbing Peter to pay

Paul? We couldn't have reached this agreement without the support of the

local Labour council leaders who have come together through the

combined authority to strike what I think is a really historic deal.

There has been lots of conversation about devolving power to the

north-east. Now we will have the leg could mirror with powers exercised

in London exercise in the north-east and that is proper devolution.

Last week a cider producer told the local press that cider is an

agricultural lubricant, wine for the working man. Will he continue to

support hard-working people and lubricate the Somerset economy by

cutting tax is on cider? I very much remember my visit with the Prime

Minister to a cider producer in his constituency before the election,

which turned out to be extremely productive. He will know that in

tax that was being proposed by the tax that was being proposed by the

previous Labour government, and we have helped the producers. I will

help support them in the future. The Resolution Foundation found that all

tax and benefit measures announced, including the National minimum wage,

will cost an additional 200 children into poverty. -- push those

children. By 2020, there will be up to 600 further children pushed into

poverty. Chancellor, you said you listened last night. Will you now

share with the honourable members today what constructive action you

will take to protect the poor wrist will take to protect the poor wrist

of families and children? -- poorest. She raises her question in

a perfectly fairway. I will listen to the concerns that have been

raised about the transition in the welfare reforms we have it forward,

so we can continue to help working families. Those families are best

help when we have economic security, a controlled welfare budget, a

system where we do not subsidise low paid, and we will make sure that in

the Autumn Statement we help working families. I did not want to

interrupt the question, and I understand why members like to put

their enquiries directly to the Minister, but can I please appeal to

members not to use the word you in your questions. We go through the

cheer for good reasons. -- through the chair. In the past few years

unemployment in Tamworth has fallen faster than anywhere else in the

country. As my right honourable friend is listening, can he tell the

House whether he has heard a sensible representation from the

Shadow Chancellor or others about how to de-crease business taxation

and regulation to create more jobs in the West Midlands? I am sorry to

say I have not because the only proposals that have so far being put

by the party opposite are for an increase in business taxation, which

Chancellor was speaking about a Chancellor was speaking about a

potential wealth tax being introduced in this country. To be

fair to him, he has been entirely consistent on this for 30 years. --

13 years. His proposals are for a high tax, big state economy, where

role to play. I think that is the role to play. I think that is the

wrong direction for the country. How much with the public purse be saved

by abolishing the House of Lords? CHEERING That is a very decent

which we will give proper which we will give proper

consideration to! People who have consideration to! People who have

been in Parliament with me for the last 14 years now my views,

should have an elected House of should have an elected House of

Lords, but that view has not prevailed in this chamber. But I do

unelected House of Lords, it should unelected House of Lords, it should

respect the constitutional election which has -- convention which has

existed for 100 years. Order. Demand has exceeded supply. Point of order.

The honourable gentleman is