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Order, order. Questions to Mr Chancellor of the Exchequer. Craig

:00:00.:00:10.

Williams. Britain is in a much stronger

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economic position manager was five years ago with employment up and the

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deficit down. However, as I set out in my speech to business leaders in

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Cardiff, we face a dangerous cocktail of economic risks from

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around the world this year. That situation is reflected in the IMF

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forecast which was published one hour ago which shows world growth is

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down but the positive forecast for the UK on change. It sure is the

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best thing we can do here is continued to fix our public

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finances, back business and deliver our long-term economic plan. Thank

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you. The Chancellor was very welcome when he was in Cardiff two weeks ago

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and brought a sense of urgency to the Cardiff city deal process with a

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deadline for the budget and a clear sense of direction. If we are to

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maximise the potential of Cardiff in the Welsh economy presented and our

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long-term economic plan, is it not time we had tangible plans from

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Labour given the have had years to come up with them? It was good to

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meet with my honourable friend and business leaders in Cardiff and to

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back investment in the new semiconductor catapult and the

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brilliant work being done at the university there. I hope we can

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agree with the wealth of Ramadan with authorities in Cardiff a

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Cardiff city deal before the budget. He poses the rate question, which is

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after 16 years after being in power the Labour Party in Wales has not

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delivered incredible economic plan for Wales is it not time for change?

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If the Chancellor keeps sucking off the threat to the very existence of

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some of Britain's's course at Egypt industries like still cause -- like

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steel, is there not eight danger that it might just not be the at all

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in the future? Of course the redundancies at Tata Steel and

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elsewhere in the industry are a real matter of regret. We are providing

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all these aboard we can to families, helping them get back into work. We

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are also responding to a quest from the steel industry to cut energy

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costs. That comes into effect today. -- requests from the steel industry.

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We are making sure that internationally we take action

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against the chief imports from China. Not one of these things were

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done under a Labour Government, and during that period, the number of

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steel jobs fell by 50% in this country. So we will not take

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lectures from the party opposite, but we will back our steel industry.

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Does the tiles were think that the stamp duty surcharge announced in

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the Autumn Statement, the effect of that on the buy to let market will

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be to inhibit or advance labour mobility? I think it will help

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promote homeownership, because it will mean there is a more level

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playing field between an order occupier buying a house at the buy

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to let landlords. There is nothing wrong with people investing in

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property, there should just be a level playing field so that we

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reverse the decline in home ownership in this country. A

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long-term economic plan means supporting small businesses across

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the country. On the 26th of December 250 businesses in my constituency

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employed 2500 people were inundated by floodwaters. Bobby tiles for Dick

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Best opportunity to commit to a proper school -- well the Chancellor

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take the opportunity to commit to proper flood defences? I know the

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Environment Agency and indeed the Government is conducting a review

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after what was the highest level of rainfall in our modern history in

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Yorkshire. But of course by committing the additional ?2 billion

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to flood investments we are able to afford these things. We would not be

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able to afford any of this sort of thing if we had wrecked the economy

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in the last couple of years. Does my honourable friend agree that as part

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of his long-term economic plan be helped by Isil will help people in

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my constituency where -- help to buy ISA will help? The help to buy ISA

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has been a huge success as it has been launched. 170,000 families have

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taken it up because that is helping people get on the ladder, the

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property ladder, helping them save for that deposit and doing

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everything we can to support the aspirations of the families of

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Britain. The Government's plan requires the doubling of exports by

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2022 ?1 trillion, -- by 2020. Can the Chancellor tell us, does he

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still hauled to the intention and the promise to the UK exports rise

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by ?100 billion per year every year for the next five years? We do hold

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to the target, but quite frankly it will be very challenging to meet,

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because while we have been improving exports, and frankly many of our

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main export markets have been very weak, we would like to see further

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economic reform on the continent of Europe. Some of those emerging

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markets are struggling at the moment, although we have a very good

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economic dialogue team plays today with India. British exports to India

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are increasing. There are a lot of challenges, but I am not one who

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thinks we should knock the challenges or ditched the target.

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Increasing exports is a key target for the UK. We should set ambitious

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targets but they have to be credible. Given that all beer -- or

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they are say it will be feel -- will feel to be met, should we not set a

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realistic and achievable targets? I think it is right to set the

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scratching target and tried to meet it even if it will be challenging.

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He talks about realistic and credible numbers. If Scotland had

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listened to the Scottish nationalists, it would be becoming

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separate from the United Kingdom in two months' time and the Scottish

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Government and its claim on independence on an oil price of

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$115. Scotland now would be heading for economic catastrophe if there it

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had listened to the honourable gentleman and the members from the

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Scottish Nationalist party. So before they talk about credible and

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realistic economic policies anywhere else in the UK, they should get one

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themselves. Motor manufacturing is crucial to our long-term economic

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plan. Surely the Land Rover defender. Production in Solihull.

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--. Production. Well the Chancellor pay tribute to the workers in

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Solihull? This iconic model has been produced over decades and been seen

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all over the world and producible peacetime and wartime. Good news for

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Solihull and the whole country is that they continue to produce

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brand-new models of great cars and are one of the real success stories

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of the British economy and in general, Wilder have been

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conservatives in the Treasury and in Downing Street, car production in

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this country is up 50%. -- while there have been Conservatives. The

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Chancellor has promised an economic recovery for all felt in all parts

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of our nation. On the day the IMF has warned about the global economy

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and called for governments to increase public spending, will be

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Chancellor now reconsider his economic plan and his investment and

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in particular? The economic plan has seen employment, unemployment fall.

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It has meant that on those IMF forecasts the UK's forecast has not

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changed. It remains one of the strongest of all the advanced

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economies in the world. I might suggest he might want to treat his

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own economic policy, since in the last week he has called for the

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return of flying pickets, was to ban companies paying dividends, and

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wants to spend billions of pounds on nuclear missile submarines without

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any nuclear missiles. Today he said he will tour the country with the

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former Greek finance minister to educate us all about economics. I

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think the one thing they have in common is they have both lost their

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marbles. If the Chancellor will not reconsider his investment plans, can

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he at least appreciate how angry families of steelworkers South Wales

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are this morning knowing that when the bankers bonuses were threatened,

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he immediately shot across to Brussels with an army of lawyers to

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defend them. He will jump into a helicopter for a Tory fundraiser but

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it has taken him for months to lift a finger for a steelwork, to receive

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Steelworkers' jobs. Does that not prove he is actually the bankers'

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Chancellor? We want a successful financial services industry because

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hundreds of thousands of people across the country work in it.

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We have taken action to reduce energy costs, which hadn't happened

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previously, and that comes into effect today. That's why we're

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taking action to change procurement rules so that the British Government

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and others are encouraged to by British Steel, which never happened

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when the Labour Party were in office, and we are acting

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internationally to deal with things like the dumping of Chinese steel.

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Of course it is an incredibly difficult situation but, as he

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knows, and everyone in this House knows, there are steel jobs being

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lost in every single country in the world at the moment. The question

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is, what can you do nationally to defend your steel industry and

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protect it, and we are doing everything we can. If he has got

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constructive suggestions, he should put them to me. Number two, please.

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With permission, I'd like to group this question with question 13. The

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Financial Conduct Authority is an independent regulator. No Treasury

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minister or official had discussions with the SCA before it took the

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decision to continue this review. Given that the popular image of

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bankers right now is probably on a par with used-car salesmen or MPs,

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even, would she not agree with her honourable friend, the Member for

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wire forest, but to abort this review now, which could have looked

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at regulating challenger banks as well as historic mis-selling, is a

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missed opportunity all-round? Well, I find it hard to take lectures from

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the party opposite in terms of regulating the financial sector. In

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fact, since my right honourable friend became Chancellor, we set up

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the Financial Conduct Authority. We've moved on from the failed

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regulatory system that was there under the Labour government and we

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made it a criminal offence to manipulate the UK's key benchmark.

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We brought in the toughest rules on bankers' pay of any financial centre

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and we are bringing in a new criminal offence so that any senior

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managers whose reckless decisions bring down banks face jail time.

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With the terrible impact of bad banking practices that was

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highlighted in the Tomlinson report, particularly commercial lending to

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small businesses, still unresolved one of my constituents, does the

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Minister agree that both the public and small businesses still have

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significant concerns about the behaviour of many individuals in the

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banking sector? I completely agree with the honourable lady that we

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need to see the highest levels of conduct from the banking sector. We

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also need to continue to take steps in terms of our long-term economic

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plan to secure access to funding for small businesses, which is why we've

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taken steps to back peer-to-peer lending, with extended funding for

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lending for another two years and we continue to benefit from record low

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interest rates, axed our prudent to, management. There has certainly been

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speculation that the Treasury has influenced the SCA and one metres

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fanciful, it is important but that it was set up independently in 2012.

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But does my honourable friend agree that one of the ways that we could

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potentially underpin that independence of the Financial

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Conduct Authority would be to adopt a similar process that we have with

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the office of budget responsibility, whereby the Treasury committee can

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have a power of veto over the apartment of the chief Executive?

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The honourable gentleman, who is very constructive and engaged as a

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member of the Treasury select committee, I know we'll have the

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opportunity to ask westerns of the acting chief executive and the chair

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of the Financial Conduct Authority at his committee on Wednesday. But

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what I would agree is that it is very useful for the committees such

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as to have a pre-appointment hearing with any executive of the Financial

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Conduct Authority. The symphony interbank immigration software

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allows for the permanent deletion of e-mails and advertises itself as,

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this will save the banks billions of pounds in fines. Will the Minister

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join my campaigning conduction with the Secretary of State business to

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ensure that the FCA retains the encryption codes for the software as

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they do in America, for seven years? He asks a very salient question and,

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of course, it is something that the FCA is currently investigating and

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he will be aware that new rules in terms of a particular requirement

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will require firms to keep that information for a significant period

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of time at this the subject of ongoing discussion. With the

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Minister agree that one of the biggest problems in the banking

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culture is that banks are too big to fail and would she looked at the

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issue of diversity in the sector, including new lending platforms

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market disrupters, and would she looked, in particular, at new

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primary duties for the SCA to look the of diversity?

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Well, he will I'm sure welcomed the announcement that we are expecting

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on Wednesday from both the Bank of England and the FCA and the PRA to

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work together in terms of backing innovation in the financial sector.

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That is part of our long-term economic plan to back competition in

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the can accept and I'm pleased to say that in the last parliament

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there were eight new entrants to banking and did this parliament we

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are aiming to have 15. Interventions by HM Treasury and other bodies have

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raised questions regarding the ball's independence. Not my words

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but the words of an FCA commissioned external report regarding the SCA

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board which was published last week. How will the chancellor demonstrate

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that the appointment of the new Chief Executive of the FCA won't be

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an example of an overreaching chancellor trying to get his own

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way? Well, it was good of the honourable gentleman to turn up for

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Treasury questions this time. I guess there wasn't a stop the War

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march or a picket line to join today. But I can assure the

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honourable gentleman that the Treasury does have the power to

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appoint both the board and the Chief Executive, it sets the remit of the

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FCA but from then on it has operational independence. Number

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three. Latest ONS figures show real average weekly earnings were up 2.4%

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year-on-year in the three months to October. Wage growth has outstripped

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inflation for 13 consecutive months, the longest period of real wage

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growth since before the recession, and the OBR forecasts were to grow

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faster than in elation over the next five years. -- than inflation. Does

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he agree with me that the key to delivering further wage growth,

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particularly in rural areas like Somerset, is improving the skills

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base, which underpins the Chancellor's economic plan for the

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South West? He is quite right. Last year will be hourly pay of the

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average Somerset employee grew well in excess of CPI inflation. The

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south-west has a particularly strong rate of employment but driving real

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wage growth we have to see productivity gains, hence the focus

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on making sure we have an attractive tax regime that brings jobs to that

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region and this country. There are 400,000 fewer people earning over

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?20,000 and there were in 2010 because the Chancellor has been

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cutting up full-time jobs and replacing them with more part-time,

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low-paid jobs. What is he doing to lift productivity, research and

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development to raise average wages and to raise median wages as well?

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The lowest earners experience the fastest growth in medium earnings

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last year and recent growth has been dominated by full-time workers in

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contrast to what he says. We have comprehends a plan for driving

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productivity and the national living wage is a very dramatic, long-term

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structural change. Number four, Mr Speaker. Our long-term plan is to

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turn round a decades-old economic divide between North and south by

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building a northern powerhouse. We said we would create powerful new

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elected mayors. That's happening. We said we'd speed up transport

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connections across the North and we committed 13 billion of investment.

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And into my honourable friend's Cumbria, there is a new enterprise

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zone, new parents and nuclear research. The North is growing under

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this government and we will do everything we can to keep it growing

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strongly. I, like many of my constituents in Carlisle and

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Cumbria, hope to be very much part of the northern powerhouse. Part of

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this is ensuring that the private sector investor grows skills and of

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the structure and then there is the proposed Cumbrian deal. Can the

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Chancellor assure me that everything is being done from the government's

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perspective to achieve this deal, and will an elected mayor be part of

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it? As my honourable friend knows, and he is a real champion not just

:20:14.:20:17.

of Carlisle but of Cumbria and the Cumbrian economy, we are working

:20:18.:20:22.

with local authority leaders and other elected representatives on

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whether we can have a new governance arrangement in Cumbria which might

:20:26.:20:30.

include an elected mayor. This is a decision for Cumbria but they have

:20:31.:20:33.

come to us with this proposal and we are working hard with the people of

:20:34.:20:38.

Cumbria to see whether we can get an arrangement that boosts jobs, boost

:20:39.:20:41.

investment and makes sure that decisions that affect Cumbria are

:20:42.:20:48.

taken in Cumbria. Does the northern powerhouse occur in Redcar, where

:20:49.:20:54.

the steel industry has been closed because of him allowing the Chinese

:20:55.:21:00.

to break steel? Are they talking about it at Scunthorpe, where

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they've lost more than 1000 jobs? Are they talking about it at Port

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Talbot, where they are going to lose a lot more jobs? The truth is, they

:21:09.:21:13.

don't talk about the northern powerhouse in the coalfields where

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the Tories have shot the last three pits. They call it the northern Peru

:21:18.:21:20.

house. That's its real name. -- He seems to forget that the Redcar

:21:21.:21:36.

works closed under the Labour government that he supports. It is

:21:37.:21:39.

also the case that during that government but he supported from

:21:40.:21:42.

that bench there, the number of steel jobs lost in this country was

:21:43.:21:46.

30,000. We are doing everything we can to preserve the steel jobs that

:21:47.:21:49.

remain. We are working with the steel industry. We have ceded to

:21:50.:21:55.

almost all their requests we are looking to the last one, which is

:21:56.:21:58.

changes to business rates, which never happened under a Labour

:21:59.:22:01.

government, and we will report in the budget on that. We are working

:22:02.:22:05.

to make this a competitive place to do business and if one really

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adopted the policies of the party opposite, where you don't pay

:22:10.:22:13.

dividends to investors and you reintroduce flying pickets, do you

:22:14.:22:17.

really think a single overseas investor would be expanding their

:22:18.:22:25.

business in the UK? Number five. The government is fighting hard to fix

:22:26.:22:29.

the aspects of our EU membership, the cause of so much restriction in

:22:30.:22:33.

the UK, so we get a better deal for our country and secure our future.

:22:34.:22:36.

We are confident that the right agreement can be reached. Jaguar

:22:37.:22:40.

Land Rover have recently announced that they're going to double the

:22:41.:22:46.

investment in a brand-new engine plant in my constituency, creating

:22:47.:22:48.

hundreds of additional jobs on top of the 1400 they have or the amount.

:22:49.:22:52.

Does the Minister agree with me that unfettered access to the single

:22:53.:22:57.

market dries this sort of investment and if we were to walk away or

:22:58.:23:03.

sacrifice that access, those jobs and that investment could be put at

:23:04.:23:09.

risk? First of all, I also welcome the new jobs being created near her

:23:10.:23:16.

constituency by Jaguar Land Rover. My honourable friend the Chancellor

:23:17.:23:21.

visited that site very recently. In terms of our relationship with the

:23:22.:23:24.

EU, the position of the Government is very clear. We want the benefits

:23:25.:23:29.

of access to the single market but there are also aspects of our

:23:30.:23:32.

relationship with the EU which can be improved upon and that's what we

:23:33.:23:35.

are seeking to do in our renegotiation. Given that last year

:23:36.:23:44.

we had a ?62 billion trade deficit with the European Union and given

:23:45.:23:49.

that if we left the EU, the UK would be the EU's single biggest export

:23:50.:23:52.

market, does the Minister think we could have a free trade agreement

:23:53.:23:57.

with the EU from outside the European Union without handing over

:23:58.:24:00.

?19 billion a year in membership fees? Well, I'm sure that that issue

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will be one of the issues discussed at length during the referendum

:24:09.:24:13.

debate, and the point is that under this government, the British people

:24:14.:24:17.

will have an opportunity to express its views on where our future lies.

:24:18.:24:27.

Britain has been a substantial net contributor to the EU budget. For 40

:24:28.:24:31.

years this has had a negative effect on UK growth in GDP, the cumulative

:24:32.:24:35.

effect of which has been very large. Would not leaving the EU help UK

:24:36.:24:41.

growth? I suppose 1.I would beg to the honourable member is that thanks

:24:42.:24:46.

to Margaret Thatcher's renegotiation of the rebate and thanks to the

:24:47.:24:49.

current Prime Minister's ago she Asian of the EU budget, resulting in

:24:50.:24:57.

a real terms cut, we are paying less than we would have done. -- by

:24:58.:25:02.

minister's renegotiation of the EU budget. Nonsense.

:25:03.:25:13.

Would she not agree that it would be important to pay the real living

:25:14.:25:18.

wage, ?8 25 per hour, in the rest of the UK and ?9 40 in London, as is

:25:19.:25:23.

done by the Scottish Government and over 400 employees in Scotland, so

:25:24.:25:27.

that it is fair for all employees, particularly those under 25? I'm

:25:28.:25:33.

glad she welcomes the fact that, as of April this year, all employees

:25:34.:25:38.

across the whole of the UK over 25 will be getting a significant pay

:25:39.:25:41.

rise, and that's thanks to the strength of employment across the

:25:42.:25:47.

UK, which is thanks to our long-term economic plan.

:25:48.:25:54.

By my calculation someone earns ?7.85 per hour today will be

:25:55.:26:03.

benefiting and by the end of this parliament will be more than ?1500

:26:04.:26:08.

later. Does my honourable friend agree that this shows that

:26:09.:26:11.

Government is committed to making work pay? The honourable member

:26:12.:26:16.

makes an excellent point, and in fact it has been highlighted that it

:26:17.:26:24.

is not just that 2.5 million people will be directly benefiting from the

:26:25.:26:28.

change to the National Living Wage, but also to 6 million people who

:26:29.:26:33.

make salaries and very close to that hourly rate. When is the Chancellor

:26:34.:26:42.

and the present Minister going to give public sector workers a decent

:26:43.:26:48.

pay rise for the jobs that they do frost? Of course we believe that

:26:49.:26:53.

every worker in this country will benefit from the change to the

:26:54.:26:57.

National Living Wage, because it is an important part of the long-term

:26:58.:27:01.

economic plan. But he will know that this year public sector workers

:27:02.:27:07.

actually received raises that work above inflation. The Minister has

:27:08.:27:12.

spoken importantly about the principle of making work pay. Will

:27:13.:27:18.

she give further consideration to extending married couples' tax

:27:19.:27:21.

allowance so that more families can keep more of what they earn? I will

:27:22.:27:30.

take that as a budget 's omission. -- budget submission. The Government

:27:31.:27:36.

is backing business by cutting their taxes. To support small businesses

:27:37.:27:43.

the employment allowance will rise in April and we are doubling

:27:44.:27:51.

business small rate relief. We will back companies not punish them with

:27:52.:27:59.

the anti-business nonsense we hear from the party opposite. Will be

:28:00.:28:16.

Chancellor join me in congratulating... I John with my

:28:17.:28:22.

honourable friend in congratulating the work they are doing in investing

:28:23.:28:29.

on South Wales transport infrastructure. We are back in

:28:30.:28:31.

companies with this annual investment allowance of ?200,000,

:28:32.:28:36.

the highest level it has ever been. Will the Chancellor tell us what

:28:37.:28:42.

step he ensures to take to make sure the quarterly tax returns coming in

:28:43.:28:47.

2020 will not harm small businesses in constituencies like mine and

:28:48.:28:50.

actually affected their productivity and their ability to make profits?

:28:51.:28:57.

My honourable friend is right that the objective of what we are seeking

:28:58.:29:01.

to do is to make it easier for businesses and individuals to

:29:02.:29:04.

complete their tax returns by making use of modern digital technology and

:29:05.:29:10.

introducing a simple and secure at personalised digital tax account. We

:29:11.:29:14.

estimate it will reduce the administrative cost to businesses.

:29:15.:29:22.

The best way to support manufacturing businesses in the

:29:23.:29:25.

Midlands would be to free the region from London's control. The region

:29:26.:29:28.

has been stifled by Whitehall for too long. To strengthen the economy,

:29:29.:29:37.

develop Brownfield sites and tackle congestion, we will deliver new

:29:38.:29:43.

homes. We have a deal. That is exactly what we are doing with the

:29:44.:29:48.

west Midlands and we worked across different political parties. I have

:29:49.:29:52.

met with Labour and Conservative authority leaders and members of

:29:53.:29:56.

Parliament from both parties in the West Midlands who collectively

:29:57.:29:58.

agreed to have an elected mayor and you have significant powers from the

:29:59.:30:03.

Government to the people of the West midlands. I think it is one of the

:30:04.:30:08.

most exciting step forward in the devolution of power in this country.

:30:09.:30:14.

What further discussions have taken place in devolved administrations

:30:15.:30:24.

about the introduction of fiscal incentives for apprenticeships and

:30:25.:30:27.

economic growth? We are in discussion with the Northern

:30:28.:30:30.

Ireland's executive about what we can do to support the economy. One

:30:31.:30:36.

of the things we would really like to see is the devolution of

:30:37.:30:41.

corporation tax rates which we have legislated for and provided we can

:30:42.:30:46.

reach agreement on the budget implications of that that would be a

:30:47.:30:51.

massive boost for Northern Irish businesses. I welcome the chance

:30:52.:30:55.

were's reduction in the corporation tax that has helped so many jobs to

:30:56.:30:59.

be created. Does he agree that some businesses cannot grow despite this

:31:00.:31:06.

measure because of a local infrastructure constraints such as

:31:07.:31:10.

those that need addressing in my constituency? My honourable friend

:31:11.:31:17.

is absolutely right. We are investing in transport

:31:18.:31:21.

infrastructure in the Southampton area and along the south coast

:31:22.:31:24.

because we understand that all parts of the country can benefit from

:31:25.:31:27.

additional investment in transport infrastructure. That is why we are

:31:28.:31:31.

increasingly transport budget even at a time when public budgets are

:31:32.:31:35.

tight. None of these things would be affordable if you crash the economy.

:31:36.:31:40.

The introduction of quarterly reporting for tax returns has been

:31:41.:31:44.

described by the Institute for chartered accountants at an

:31:45.:31:46.

additional burden for business. Does he understand the very real anger

:31:47.:31:52.

among businesses and my constituency and around the country that they are

:31:53.:31:57.

being penalised while many of the largest corporations are allowed to

:31:58.:32:01.

avoid a tax altogether? We have increased our action against

:32:02.:32:07.

large-scale corporate tax avoidance and evasion, and the new diverted

:32:08.:32:10.

profits tax is designed to deal with the very real anger that people

:32:11.:32:15.

feel, particularly in the small-business community, when the

:32:16.:32:17.

see large businesses not being taxed. We are dealing also with the

:32:18.:32:23.

burdens of tax administration, consulting with small businesses. It

:32:24.:32:27.

would be crazy as a country not to make use of new digital technology

:32:28.:32:31.

and the Internet to update and modernise our tax collection system,

:32:32.:32:35.

and we would regret not taking those steps today as we let other

:32:36.:32:38.

countries power ahead and reduce the burdens on business. Mr Speaker, the

:32:39.:32:47.

Government has taken a range of steps to reduce the trade deficit.

:32:48.:32:52.

The 2010, UK TI has more than doubled the number of businesses

:32:53.:32:57.

supported and UK Export Finance has provided more than 15 billion pounds

:32:58.:33:03.

of support. Allies are earlier this month when I met entrepreneurs in

:33:04.:33:08.

Edinburgh, many start-ups and exporters in Scotland greatly

:33:09.:33:11.

appreciate the UK TI systems. And welcome the Government's

:33:12.:33:23.

announcement this morning. It is not credible for the Minister to

:33:24.:33:26.

continue with a policy which has failed and resulted last year in a

:33:27.:33:30.

deficit in the trade of goods. We all want to see reduced dependence

:33:31.:33:34.

on consumer debt, but is it not time for him to admit the UK Government

:33:35.:33:39.

policy has failed. I gently suggest revision. The trade deficit is

:33:40.:33:45.

actually improving and the Cheryl GDP and is expected to continue to

:33:46.:33:51.

do so in the OBR forecast. What I can say, what would be an absolute

:33:52.:33:54.

disaster would BDSM people's Mac policy of call fiscal independence

:33:55.:34:03.

-- the SNP's policy. Added to which would be the collapse in oil price.

:34:04.:34:10.

Revenues would be down this year a staggering 94%. This would be a

:34:11.:34:18.

disaster for Scotland. I welcome the Commons made earlier by the

:34:19.:34:21.

Chancellor about export initiatives to India, but will my honourable

:34:22.:34:26.

friend welcome the enjoy -- join me in welcoming efforts to boost

:34:27.:34:32.

exports in the north-west the Northern Powerhouse? I very much and

:34:33.:34:38.

my honourable friend in welcoming that, particularly with reference to

:34:39.:34:42.

exporters to China and India which have been a great success. The UK TI

:34:43.:34:50.

is doing what it can to support this, and providing tailored support

:34:51.:34:57.

for first-time exporters, and additional 20 million, and

:34:58.:35:04.

supporting Northern Powerhouse trade solutions. The British Chambers of

:35:05.:35:12.

commerce are reporting that it will take not four years but another 18

:35:13.:35:18.

years. Will be Chancellor not accept that this is clearer evidence that

:35:19.:35:25.

his effort to reduce the trade deficit are failing and will

:35:26.:35:30.

continue to fail? I think the UK has a good future in terms of the trade

:35:31.:35:36.

deficit and improving statistics. In terms of UK TI, I think the UK TI

:35:37.:35:39.

will also be playing an important role. The announcements we made

:35:40.:35:46.

today on trade policy, one of the most important things we can be

:35:47.:35:49.

doing at the Hall of Government approach is improving the approach

:35:50.:35:54.

we take to trade and boosting our exports. In South Thanet we have a

:35:55.:36:00.

niche amusement machine manufacturer, and the supply global

:36:01.:36:06.

export markets. What help and support can my honourable friend

:36:07.:36:11.

offer so that we can really achieve that cross Government approach to

:36:12.:36:16.

exports that has been lodged today -- launched today? I have been quite

:36:17.:36:22.

a few times to his constituency over the last year and a half. I don't

:36:23.:36:27.

think I have had the particular pleasure of meeting with that

:36:28.:36:30.

company, but I'm happy to meet with my honourable friend and with that

:36:31.:36:34.

company to see what could be done to help exporters in South Thanet. The

:36:35.:36:44.

concrete products industry used to have a surplus on the balance of

:36:45.:36:48.

payments but no has a deficit of hundreds of millions of pounds. This

:36:49.:36:53.

is due to the levy on products made in the United Kingdom but not on

:36:54.:36:57.

imported products and has been thousands of jobs in jeopardy. With

:36:58.:37:01.

the Minister consider imposing the same tax on goods produced abroad as

:37:02.:37:08.

is imposed on goods produced here in the UK? I am happy to look in detail

:37:09.:37:13.

at the points he raised. My understanding is there have been

:37:14.:37:16.

legal challenges to aspects of the aggregates Levy which are prevented

:37:17.:37:20.

us from addressing some of these issues, but I'm happy to engage with

:37:21.:37:24.

him on an ongoing basis to see what could be done better. Since 2010 we

:37:25.:37:37.

have cut corporation tax and will cut its further to eating percent by

:37:38.:37:42.

2020. Yup then the annual investment level at its highest ever level. --

:37:43.:37:50.

we have set. And UK TI announced today support for exporters. Is the

:37:51.:37:57.

minister concerned about recent figures showing the manufacturing

:37:58.:38:00.

sector is back in recession and what is he intend to do about it? We have

:38:01.:38:05.

to get behind the manufacturing sector, that is at the heart of this

:38:06.:38:09.

Government's approach and long-term economic plan and the heart of the

:38:10.:38:14.

productivity plan. Do things like giving enhanced access to leading

:38:15.:38:17.

technologies and catapult centres, things like the apprenticeship where

:38:18.:38:22.

the making sure we build up our skills, making sure we attract more

:38:23.:38:25.

teachers and to stem subjects, and a whole range of other initiatives.

:38:26.:38:35.

Can I have my honourable friend what steps are being taken to assist and

:38:36.:38:41.

encourage small businesses to become expanding, exporting businesses? --

:38:42.:38:47.

can I ask? UK TI has an ambition to increase the number of exporting

:38:48.:38:54.

businesses. There are a number of aspects of that, moving to more

:38:55.:38:57.

direct support as well as advice from some of the leading export

:38:58.:39:05.

agencies in the world. And making sure that we leverage existing

:39:06.:39:09.

Government relationships with firms and sectors for the whole of

:39:10.:39:16.

Government approach. The UK economy is still to dependent on consumer

:39:17.:39:21.

spending to drive growth and the Government should start being sought

:39:22.:39:27.

complacent and self-congratulatory. With the risk of Brexit this year

:39:28.:39:32.

only making things worse, what will this Government do to expand

:39:33.:39:37.

manufacturing exports? Exports are a challenge. There has been a

:39:38.:39:42.

long-term change in the UK's share of world trade, but I would say the

:39:43.:39:46.

majority of it came before 2010. An honest point about -- on his point

:39:47.:39:57.

about business expense of -- consumption expenditure... Will my

:39:58.:39:59.

honourable friend please agree with me that supporting engineering and

:40:00.:40:04.

manufacturing is absolutely essential to our economy and

:40:05.:40:07.

productivity and we must do all we can to address the skills gap that

:40:08.:40:10.

is threatening local jobs and businesses in my constituency and

:40:11.:40:14.

around the country? I absolutely agree with my honourable friend

:40:15.:40:17.

about the importance of engineering and the evidence that was shown in

:40:18.:40:24.

the spending review and Autumn Statement with enhanced support for

:40:25.:40:30.

science as well as the apprenticeship levy which is an

:40:31.:40:32.

important structural change in the way we invest in our skills base.

:40:33.:40:41.

Five years ago the Chancellor said he would rebalance the economy

:40:42.:40:46.

towards manufacturing, exports and the regions. The Director General of

:40:47.:40:50.

the British Chamber of Commerce recently said, and I quote, none of

:40:51.:40:54.

those things have actually transpired in practice yet. Why not?

:40:55.:41:03.

Mr Speaker, we are rebalancing the economy and it is a long-term and

:41:04.:41:07.

sustained programme. It is the long-term economic plan. We have

:41:08.:41:12.

talked about some of the enhanced support for science, technology,

:41:13.:41:16.

engineering and mathematics, and the apprenticeship levy, the catapult

:41:17.:41:20.

centres giving British business access to the best in leading-edge

:41:21.:41:24.

technology. There are some things in international trade we cannot

:41:25.:41:27.

control. There is bad news from China. We cannot control the world

:41:28.:41:31.

exchange rates but there are things we can control in terms of

:41:32.:41:35.

supporting tissue exporters and we are absolutely doing those. There we

:41:36.:41:38.

go again. It is everybody's fault but this

:41:39.:41:53.

government. But here is the truth. The Chancellor promised to boost

:41:54.:41:55.

manufacturing but instead it is in recession. Manufacturing output is

:41:56.:41:57.

6.1% below its previous crisis peak and falling. The British Chamber of

:41:58.:42:01.

Commerce's survey found manufacturing post to stagnation

:42:02.:42:04.

with export, sales and orders falling. And yet instead of helping

:42:05.:42:09.

the sector, the Chancellor close to the manufacturing advice service in

:42:10.:42:12.

November without so much as a mention. Is it not true that British

:42:13.:42:18.

businesses and families are now paying a heavy price for this

:42:19.:42:24.

Chancellor's feelings? -- failings. That is not true. This promotion is

:42:25.:42:31.

at the heart of the government's approach. We should not forget that

:42:32.:42:35.

services are a big part of the economy, a bigger part. The overall

:42:36.:42:39.

performance of the British economy is that we have the highest growth

:42:40.:42:43.

rate of the G-7 countries in 2014, and the joint highest in 2015. We

:42:44.:42:48.

have rising real wages and more people in jobs than ever before.

:42:49.:43:00.

Question ten, Mr Speaker. Following on, employment stands at 31.3

:43:01.:43:04.

million, which as I have just said, is more people in work than ever

:43:05.:43:08.

before. In the past year, growth has been driven by full-time employees

:43:09.:43:11.

in high and medium skilled jobs, showing we are moving to the next

:43:12.:43:17.

phase of the recovery with high-quality employment boosting

:43:18.:43:19.

productivity and living standards nationwide. I thank the Minister for

:43:20.:43:26.

his reply. In my constituency, youth unemployment has halved in the last

:43:27.:43:31.

year and it is now lower for the whole of the West Midlands. Will the

:43:32.:43:35.

Minister agree with me that this is excellent news for Telford and it

:43:36.:43:37.

shows that the economic plan is working? I am delighted with that

:43:38.:43:45.

news from my honourable friend's constituency and I agree with her.

:43:46.:43:49.

Across the West Midlands, youth unemployment has fallen by almost a

:43:50.:43:54.

quarter, with the rate returning to prerecession levels. Westminster saw

:43:55.:44:00.

the fastest growth in earnings among the English regions and there are

:44:01.:44:05.

140,000 more people in work than 2010. One of the leading employers

:44:06.:44:09.

in Stoke on Trent is the supplement industry and part of the growth in

:44:10.:44:14.

recent years has been due to the anti-dumping ruling by the EU on

:44:15.:44:18.

subsidised Chinese imports. Shamefully, the British Government

:44:19.:44:22.

opposed this. Will the Minister now commit the government to supporting

:44:23.:44:25.

the renewal of this anti-dumping ruling when it comes up? The

:44:26.:44:31.

government of course raises all issues about dumping and unfair

:44:32.:44:36.

trade practices as and when they come up. I would be happy to look at

:44:37.:44:41.

what he's saying about ceramics in Stoke-on-Trent. 12, Mr Speaker. HMRC

:44:42.:44:47.

announced its location strategy on the 12th of November and as I have

:44:48.:44:51.

stated, delivering that strategy will help HMRC to deliver more for

:44:52.:44:59.

less and reduce costs by 2025. I and HMRC have received representations

:45:00.:45:03.

from interested parties, most recently with my honourable friends,

:45:04.:45:09.

the members for Rochdale and the south-west. Following the meeting

:45:10.:45:12.

that my honourable friend had with myself and the honourable friend for

:45:13.:45:19.

Rochdale, would my honourable friend reflect further on the points made

:45:20.:45:23.

about Southend are becoming a regional centre. Will he make sure

:45:24.:45:29.

that the hard work, dedicated staff of Alexandra house are treated well?

:45:30.:45:35.

-- the hard-working. My honourable friend made his representations in a

:45:36.:45:39.

robust and fourth White Way in our meeting yesterday and I'm sure that

:45:40.:45:45.

HMRC are reflecting on that. -- robust and forthright. Redeeming the

:45:46.:45:52.

staff relocated, the staff will have additional transport costs

:45:53.:45:54.

compensated for for up to three years. And they will also benefit

:45:55.:45:57.

from London weighting, given that they will be moving from Stratford.

:45:58.:46:06.

Is anything going to be done about the depressing handling of HMRC and

:46:07.:46:12.

can the Minister suggest an improvement? Coal handling is at a

:46:13.:46:15.

higher level than it has been for many years. It was certainly the

:46:16.:46:20.

case that in spring of last year, coal handling standards were not at

:46:21.:46:25.

an acceptable level. HMRC have made improvements to that and I hope they

:46:26.:46:33.

will continue to make that progress. Number 14, please, Mr Speaker. The

:46:34.:46:39.

government is exploring options to ensure that the England and Wales

:46:40.:46:43.

illegal moneylending teams have the funding they need to ensure that

:46:44.:46:46.

consumers continue to be protected from illegal loan sharks and is

:46:47.:46:49.

confident of transitional arrangements being agreed. Too many

:46:50.:46:57.

of my constituents are victims of loan sharks. The illegal

:46:58.:47:02.

moneylending team has helped nearly 24,000 across the country yet this

:47:03.:47:06.

government has treated this service with disdain. Won't the cuts to this

:47:07.:47:11.

vital team and to local trading standards make the poorest more

:47:12.:47:18.

vulnerable? Far from agreeing with his point, we are finding ways to

:47:19.:47:22.

put this team on a sustainable basis going forward to continue the

:47:23.:47:26.

valuable work that they do protecting people from illegal

:47:27.:47:30.

moneylending. Topical questions, Gareth Johnson. Question one. The

:47:31.:47:37.

core purpose of the Treasury is to ensure the stability and prosperity

:47:38.:47:43.

of the economy. I exit fees act as a disincentive for people to take

:47:44.:47:48.

advantage of flexible pensions. Does the Chancellor agree with me that

:47:49.:47:52.

tackling these higher fees is essential to give people freedom

:47:53.:47:58.

over their own pensions? My honourable friend raises an

:47:59.:48:00.

important issue. The pension freedoms we have introduced have

:48:01.:48:04.

been widely welcomed. We have over 700,000 people eligible to pay some

:48:05.:48:08.

form of early exit charge. The government is not prepared to stand

:48:09.:48:12.

by and see people ripped off or blocked from accessing their own

:48:13.:48:16.

money by excessive charges. We have listened to the concerns and the

:48:17.:48:20.

newspaper campaigns that have been run. Today, we are known to change

:48:21.:48:25.

the law to place a duty on the Financial Conduct Authority to cap

:48:26.:48:29.

excessive early exit charges, and we are determined that people who have

:48:30.:48:32.

done the right thing and saved responsibly are able to access their

:48:33.:48:38.

pensions fairly. Mr Speaker, recent statistics show that household debt

:48:39.:48:42.

is now at a record high. Back in 2010, the Chancellor promised to

:48:43.:48:47.

move from an economy built on debt to an economy that saves. Can the

:48:48.:48:50.

Chancellor confirmed today why the figures contradict his original

:48:51.:48:58.

promise? Isil debt as a proportion of household income was 168% in 2008

:48:59.:49:05.

and today it is 142%, so it has fallen. -- household debt. This

:49:06.:49:10.

Chancellor has given more than any before him towards the cause of

:49:11.:49:13.

looking after our veterans in this country and for that I thank him

:49:14.:49:17.

wholeheartedly. Does he agree that whilst the charity sector has a key

:49:18.:49:22.

role to play, ultimately there is a state responsibility and we must

:49:23.:49:24.

make sure that government money is used on Intel agreed measured

:49:25.:49:31.

treatments for our veterans and their families? -- empirically

:49:32.:49:35.

measured. My honourable friend has personal experience in this area and

:49:36.:49:38.

represents a constituency that has given so much to the defence of our

:49:39.:49:42.

nation. He is right that as well as the live or fines, which were used

:49:43.:49:47.

for one-off causes to help military charities, we have the Armed Forces

:49:48.:49:50.

covenant and the annual commitment to support veterans. I'm always

:49:51.:49:54.

happy to look at specific projects that we can invest in or on going

:49:55.:50:00.

concerns we can deal with. The collapse of UK manufacturing has

:50:01.:50:06.

been going on for 50 years, from 30% of the economy in the 1970s to less

:50:07.:50:12.

than 10% today. More than 20% of all jobs in the 1980s, to only 8% today.

:50:13.:50:20.

Given the length of the decline, why has the government not made

:50:21.:50:23.

manufacturing and exports one of its top priorities? We have backed our

:50:24.:50:28.

manufacturers and our exporters and we have cut corporation tax and cut

:50:29.:50:32.

other taxes that affect these businesses. We have reformed UK

:50:33.:50:37.

Trade Investment and as a result, the manufacturing sector is a larger

:50:38.:50:40.

share of our economy than it was when I became Chancellor but there

:50:41.:50:43.

is a lot more to do. I would say to her and the Scottish Government, we

:50:44.:50:47.

want to work more closely with Scotland on overseas trade missions

:50:48.:50:50.

where we can promote Scottish businesses. We do not always get

:50:51.:50:53.

that cooperation but hopefully it will be forthcoming in the future.

:50:54.:51:00.

Whilst I welcome the government's move towards the digitalisation of

:51:01.:51:03.

tax, a number of small businesses and self across my region,

:51:04.:51:11.

approximately 74% of them employ less than four people and they have

:51:12.:51:16.

voiced concerns about the negative affect on their financial resources,

:51:17.:51:18.

depending on their alliance with a county. Could my honourable friend

:51:19.:51:23.

outline what support will be provided to our small businesses to

:51:24.:51:30.

help adapt to the proposed changes? First of all, can I reassure the

:51:31.:51:34.

House that there are no plans for quarterly tax returns as has been

:51:35.:51:38.

reported. What HMRC are looking at is making greater use of digital

:51:39.:51:44.

technology and that information is provided to HMRC more regularly. My

:51:45.:51:47.

honourable friend raises an important point about ensuring that

:51:48.:51:51.

there is support for businesses as they adapt to new ways of keeping

:51:52.:51:55.

records and that is something that HMRC is determined to do. The

:51:56.:52:06.

Midlands engine has been turbo-charged with recent figures

:52:07.:52:11.

showing four Staffordshire constituencies in the top seven of

:52:12.:52:15.

those ranked by the extent of falling claimant rates between May

:52:16.:52:20.

of 2010 and November 2015, with Canada to chase being ranked fourth.

:52:21.:52:27.

What matters is my honourable friend undertaking to make sure we maintain

:52:28.:52:32.

this positive momentum? There has been good news in Cannock and across

:52:33.:52:36.

the Midlands and employment is up in her constituency. Since coming to

:52:37.:52:42.

this House, she has been a champion of the businesses in her area, we

:52:43.:52:46.

are working together to give more power to people in the West

:52:47.:52:51.

Midlands, to take control of the decisions that affect them. I

:52:52.:52:55.

welcome her support for that. We are investing in transport

:52:56.:52:57.

infrastructure and backing science in the West Midlands as well. If she

:52:58.:53:04.

has specific ideas to help businesses in Cannock Chase, my door

:53:05.:53:08.

is open. Can I ask the Chancellor how on earth a ?42 million cut over

:53:09.:53:13.

the next two years to the UK TI budget will enable the UK to become

:53:14.:53:18.

a world-class export and investment promotion agency? We have set out

:53:19.:53:25.

today the strategy to give more direct help to our exporters across

:53:26.:53:27.

the United Kingdom and Lord Maude presented at the proposals to

:53:28.:53:32.

cabinets to do that. But getting lectures on public finances from the

:53:33.:53:36.

SNP, we would be heading towards the break-up of our country in two

:53:37.:53:39.

months' time if the people of Scotland have listened to the

:53:40.:53:42.

arguments of the Scottish Nationalists. Their calculation is

:53:43.:53:47.

were based on an oil price of $115, which the Member for Gordon

:53:48.:53:52.

described as a conservative estimate at the time. The oil price is now

:53:53.:53:56.

last than $30 and it would've been a catastrophe for the people of

:53:57.:54:01.

Scotland. -- less than $30. It would been a catastrophe if they had

:54:02.:54:03.

listened to the advice and figures of the SNP.

:54:04.:54:08.

Whatever it is the government making to widen access to basic bank

:54:09.:54:13.

accounts? -- what matters is the government making. I am delighted to

:54:14.:54:19.

tell my constituency neighbour that at the end of last year we did

:54:20.:54:24.

announce that all the major banks are now able to offer a basic bank

:54:25.:54:28.

account to customers who require one. Many of my constituents who

:54:29.:54:35.

watch Coronation Street will be following the story of Tyrone Dodds,

:54:36.:54:40.

struggling with debt, with keen interest. Unsecured lending reached

:54:41.:54:43.

a record high last year with over 3 million people in debt. The

:54:44.:54:48.

government promised to review what creditors should give the people

:54:49.:54:52.

engaged with a debt charities that their debts to not continue to

:54:53.:54:56.

spiral out of control as they work to resolve them. That was due by the

:54:57.:54:59.

end of 2015. When does the government plan to announce that? I

:55:00.:55:05.

have just touched on that in answers to questions earlier, but the

:55:06.:55:08.

importance that we place on the team that will tackle illegal

:55:09.:55:14.

moneylending. But also, we have continued to support funding for

:55:15.:55:20.

debt advice including excellent organisations like Christians

:55:21.:55:23.

against poverty, step change and citizens advice, to help individuals

:55:24.:55:25.

like the ones she mentioned. On Friday I visited Barclay's Bank

:55:26.:55:35.

in Kingston to hear about the fantastic Barclays life skills

:55:36.:55:38.

course which teaches young people, among other things, financial

:55:39.:55:43.

literacy. I can see some candidates for the course here. By making

:55:44.:55:48.

financial education more accessible, to she agreed that we can ensure the

:55:49.:55:52.

financial sector itself supports young people and people through

:55:53.:55:57.

every stage of their lives? I am delighted that he found his

:55:58.:56:01.

visit to Barclays Bank in his constituency so helpful, he will

:56:02.:56:06.

welcome the fact that since 2014, financial education has been part of

:56:07.:56:13.

the national curriculum. Conservative leader of Essex County

:56:14.:56:15.

Council has told the Prime Minister that the 2% social care precept will

:56:16.:56:20.

only cover half the council's increased costs. He has suggested

:56:21.:56:25.

bringing better care funding forward to 2017 and asks for a fairer

:56:26.:56:28.

redistribution of funds. Even Conservative councils had to wait

:56:29.:56:33.

until 2019 for the funding that the Chancellor is allocated. Will he act

:56:34.:56:37.

now to avoid a further crisis in social care? What I can say is that

:56:38.:56:43.

in advance of the spending review, the Conservative leaders of the LGA

:56:44.:56:47.

came to me, one of their specific oppose laws was to introduce the

:56:48.:56:51.

social care precept to help address the shortfall that might otherwise

:56:52.:56:58.

have been. We have put a lot of money into the Better Care Than to

:56:59.:57:03.

make sure that local authorities and the NHS working together are able to

:57:04.:57:06.

meet the challenges of social care over the next few years. Inaudible

:57:07.:57:15.

in boosting the economy has been the creation of enterprise zones. I

:57:16.:57:20.

wonder if he would talk about creating an enterprise zone in the

:57:21.:57:23.

northern part of Nottinghamshire? I know that area and have been to the

:57:24.:57:28.

site with my honourable friend. We were not able to give the go-ahead

:57:29.:57:32.

to the enterprise zone because the business case did not quite stack

:57:33.:57:36.

up, but I have committed to him that I will work with him and the local

:57:37.:57:40.

community to try to get that over the line and get an enterprise zone

:57:41.:57:45.

in place in that area. I had just shared a packed meeting

:57:46.:57:53.

with the honourable member for South Northamptonshire. There was a lot of

:57:54.:57:59.

anger to axe the funding for the CC competition projects. What a funding

:58:00.:58:03.

will the Chancellor provide to come up with a new CC is project? -- CCS

:58:04.:58:16.

project? Help we will double in. Don't leave the chamber, man, I

:58:17.:58:18.

calling you! You are very kind. The member for

:58:19.:58:27.

Sherwood had already asked the same question, that I will ask it again,

:58:28.:58:32.

that is not unusual in this place. My parents formed their small

:58:33.:58:35.

business in the first enterprise zone created when Margaret Thatcher

:58:36.:58:41.

in Telford in 1984. My right honourable friend the Chancellor has

:58:42.:58:45.

carried on in that great Conservative tradition. Could he

:58:46.:58:48.

afford the same opportunities to get on in life and to create jobs to my

:58:49.:58:54.

constituents and those in Sherwood by backing Thoresby colliery as the

:58:55.:59:00.

next and best enterprise zone? I think he has just demonstrated that

:59:01.:59:03.

he is a very smart thinker on his feet and always ready to stand for

:59:04.:59:08.

the interests of his new constituents. As I said to the

:59:09.:59:13.

member for Sherwood, I would love to get the full spree cholerae

:59:14.:59:15.

enterprise zone into a condition where we can give it the go-ahead,

:59:16.:59:21.

and I give him and his neighbour my personal commitment that we will try

:59:22.:59:26.

to do that over the next year or so. The fact that question has been

:59:27.:59:30.

asked does not stop others asking the same question. Repetition is not

:59:31.:59:36.

a novel phenomenon and banners of commons.

:59:37.:59:40.

Can I ask the Chancellor of the Exchequer to ponder the fact that we

:59:41.:59:44.

still have not really tackled productivity in this country. Can I

:59:45.:59:47.

guide him and say could he and his department look at the way in which

:59:48.:59:52.

we further invest in manufacturing skills, because surely he will agree

:59:53.:59:57.

with me that what we want in this country is high skills, high-paid

:59:58.:00:00.

jobs, and you find those in manufacturing? I think the

:00:01.:00:05.

honourable gentlemen is right to draw attention to the fact that the

:00:06.:00:09.

UK has had a productivity challenge for many decades, and the financial

:00:10.:00:13.

crisis caused a significant impairment which had an impact as

:00:14.:00:17.

well. Productivity is improving, but the key weakness in the British

:00:18.:00:22.

economy, consistently identified by everyone who looks at it, is a

:00:23.:00:26.

weakness of skills. Hopefully the apprenticeship levy and the

:00:27.:00:29.

expansion of the apprenticeship programme will go some way to

:00:30.:00:33.

address that historic weakness. (INAUDIBLE)

:00:34.:00:37.

In improving financial inclusion and creating a stronger savings culture.

:00:38.:00:44.

With the opportunity of a Will Counsel For Credit Unions coming to

:00:45.:00:48.

the UK and Northern Ireland later in media, will he continue to build on

:00:49.:00:52.

the work of the credit union expansion programme and back this

:00:53.:00:57.

vital work? I other constituency neighbour is a fine advocate for the

:00:58.:01:01.

excellent industry of credit unions. As he will know, we have back the

:01:02.:01:07.

industry with ?38 million of investment in terms of the credit

:01:08.:01:10.

union expansion project, we will continue to seek ways to back the

:01:11.:01:15.

credit unions. Given that manufacturing remained

:01:16.:01:19.

6.1% below precrisis levels with worrying trends in the manufacture,

:01:20.:01:24.

plant, machinery and pharmaceuticals, will he accept that

:01:25.:01:27.

he and his domestic policy agenda has just as much should an impact as

:01:28.:01:32.

the global factors which he is so keen to blame? He must bear in

:01:33.:01:37.

measure of responsibility and come forward with proposals to halt the

:01:38.:01:40.

decline. Manufacturing makes of a larger

:01:41.:01:43.

sector of the economy than when I became the Chancellor, but there is

:01:44.:01:48.

a huge amount more to do to make the UK more competitive, businesses more

:01:49.:01:52.

competitive, improve skills for manufacturers and the like. I have

:01:53.:01:57.

to say, I suspect she agrees, that the idea of banning manufacturers

:01:58.:02:01.

from paying dividends would not be a particularly sensible way forward.

:02:02.:02:06.

That is another policy of the Labour Party, unfortunately.

:02:07.:02:10.

Is he aware that since he took office in May 2010, the claimant

:02:11.:02:15.

count my constituency has fallen by 62% and the youth unemployment count

:02:16.:02:21.

by 67%? Would he agree that reducing corporation Tax, increasing the

:02:22.:02:24.

personal allowance and reforming welfare has caused these fantastic

:02:25.:02:29.

figures, would he confirmed that his long-term economic plan will

:02:30.:02:31.

continue? We will absolutely deliver the plan in these more difficult

:02:32.:02:40.

global economic conditions. The IMF have not revised down the UK credit

:02:41.:02:44.

forecast, even though they have revised down the global economic

:02:45.:02:49.

forecast. We will invest in Croydon and South London with important

:02:50.:02:51.

transport infrastructure and do everything we can to back homeowners

:02:52.:02:55.

in his constituency, a group I know he particularly champions.

:02:56.:03:02.

Can I return the City Minister to the issue of the cancelled FCA

:03:03.:03:07.

inquiry into culture. The member for Chichester's Parliamentary banking

:03:08.:03:11.

inquiry pointed out that murder on the orient express excuse, everyone

:03:12.:03:16.

was partly responsible but no one was really to blame. She said that

:03:17.:03:20.

ministers had no role in the cancellation of batting wary, will

:03:21.:03:25.

she say, yes or no, whether any civil servants did? -- the

:03:26.:03:32.

cancellation of that inquiry. No. We must move on, demand

:03:33.:03:33.

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