:00:22. > :00:29.GROANS FROM CROWD Order.
:00:30. > :00:43.This government is clear that the broad shoulders of this United
:00:44. > :00:50.Kingdom are 100% behind the oil and gas industry and the thousands of
:00:51. > :00:56.families it supports. We have announced a wide-ranging fiscal
:00:57. > :01:02.package. That was further expanded at the summer budget, to drive
:01:03. > :01:09.investment. Oil and gas UK have highlighted that headline tax rates
:01:10. > :01:13.of 50% or 67.5% for those companies being PRT are no longer sustainable,
:01:14. > :01:19.as the UK CS enters a ever more mature phase, and the oil price
:01:20. > :01:21.remains low offer longer, this needs to be reflected by changing
:01:22. > :01:23.circumstances and be permanently reduced, will the government listen
:01:24. > :01:32.to the industry, what fiscal support will they bring forward. In this she
:01:33. > :01:36.is budget. In the driving investment paper, the government recognised the
:01:37. > :01:40.need overtime to change the fiscal strategy, and that is why the scale
:01:41. > :01:47.of what my right honourable friend was as it was at one point ?1.3
:01:48. > :01:51.billion, the recent delays, the headline tax reductions took effect
:01:52. > :01:56.on the 1st of January this year. Can I just echo those points, the North
:01:57. > :01:59.Sea oil and gas industry is facing very serious challenges, working
:02:00. > :02:03.together with the industry and with the oil and gas authority, the
:02:04. > :02:09.Treasury can help overcome these problems. Can I urge to be included
:02:10. > :02:12.in the budget, tax cutting initiatives and support that build
:02:13. > :02:17.on last year 's measures, and will help attract investment to this and
:02:18. > :02:23.will ease the worries of many very worried people at this time. My
:02:24. > :02:26.right honourable friend, intervening in this way, highlights that there
:02:27. > :02:29.are so many jobs supported by the sector which are in England and in
:02:30. > :02:35.Scotland, I commend the work that he has been doing with the new Anglian
:02:36. > :02:42.supporting companies that have found themselves in difficulties, working
:02:43. > :02:45.on skills, and I will assure him that we will continue working hard
:02:46. > :02:53.with individual companies to see what can be done to support this
:02:54. > :02:59.vital sector. In North Tyneside, oh GN has shed all of its 2000 jobs.
:03:00. > :03:08.The company has been in touch with the government to ask the help. --
:03:09. > :03:12.OGN. It has heard nothing about the development of wind farms and help
:03:13. > :03:16.that can be given. Will the Minister say whether there is going to be any
:03:17. > :03:20.help? Will you meet with myself and representatives for the jobs? I
:03:21. > :03:24.thank the honourable lady, I would be very happy to meet with her and
:03:25. > :03:30.with that company to see what proposal they would put forward.
:03:31. > :03:33.There is an application for shale gas exploration in my constituency
:03:34. > :03:37.which may result in many millions of pounds in community benefits. Does
:03:38. > :03:41.the Minister agree that those community benefits should go to
:03:42. > :03:47.those communities most affected by developments? My right honourable
:03:48. > :03:53.friend the Chancellor has said that the shale wealth fund could deliver
:03:54. > :03:56.up to ?1 billion of benefits, this is in addition to the industry
:03:57. > :04:00.scheme itself, my honourable friend is entirely right that it is
:04:01. > :04:04.important that community see the benefits and have the reassurance of
:04:05. > :04:10.additionality. Doctor Roberta Blackman Woods. With your permission
:04:11. > :04:14.I would like to answer this question together with question number 12, my
:04:15. > :04:17.responsibility as Chancellor is for jobs, livelihoods and living
:04:18. > :04:21.standards, it is clear to me that a UK exit from the EU would be a long,
:04:22. > :04:26.costly and messy divorce, that would hurt all of those things. We have
:04:27. > :04:31.already seen sterling fall and HSBC yesterday predicted a further 15 to
:04:32. > :04:36.20% slump in the event of a vote to leave, the finance ministers,
:04:37. > :04:39.central-bank governors, concluded at the weekend that British exit would
:04:40. > :04:45.cause an economic shock, not just of UK but Europe and the world, what's
:04:46. > :04:47.people are asking for in this referendum is a serious, sober and
:04:48. > :04:51.principled assessment from the government setting out the facts, I
:04:52. > :04:55.can announce today that the Treasury will publish before the 23rd of June
:04:56. > :05:00.combines analysis of membership of a reformed EU, and the alternative,
:05:01. > :05:04.which will include the long-term economic costs and benefits of EU
:05:05. > :05:13.membership and the risks associated with an exit. Given that up to
:05:14. > :05:16.140,000 jobs in the North East region export rely upon membership
:05:17. > :05:20.of the European Union, does the Chancellor agree with me and the
:05:21. > :05:25.majority of the Northeast of commerce members who say that an
:05:26. > :05:32.exit from the would be extremely damaging for north-east economic
:05:33. > :05:35.growth, and regeneration. I do agree with both the honourable member and
:05:36. > :05:40.the businesses in the north-east, of course, the north-east has thrived
:05:41. > :05:44.by a attracting big inward investment into car manufacturing
:05:45. > :05:48.and train manufacturing, most recently, at Newton Aycliffe, one of
:05:49. > :05:52.the things that those who are advocating exit from the year must
:05:53. > :05:56.answer is, what is the alternative arrangement, what is the alternative
:05:57. > :06:00.arrangement for a large car factory in the north-east of England, could
:06:01. > :06:04.it export cars into mainland Europe without tariffs? It is not obvious
:06:05. > :06:10.that you can do that without paying towards the EU budget, and accepting
:06:11. > :06:15.free movement of people. Will the UK steel industry have a brighter
:06:16. > :06:20.future if we remain in the EU or if we leave the EU? I believe that the
:06:21. > :06:24.best way to help the UK steel industry is to take action at home,
:06:25. > :06:28.and through being part of a large economic bloc, in other words, the
:06:29. > :06:32.European Union, raise concerns with Chinese steel dumping, and frankly,
:06:33. > :06:37.our voice will be amplified as part of the EU when we make that argument
:06:38. > :06:42.with China, then if we were just making that argument alone. In the
:06:43. > :06:47.event of a no vote, the government has committed itself to triggering
:06:48. > :06:54.article 50 straightaway. I cannot see the point of that, why doesn't
:06:55. > :06:59.the government give some time between the no vote and the
:07:00. > :07:01.triggering of article 52 unable a discussion to take place with
:07:02. > :07:06.counterparties, and see the extent to which good faith can be
:07:07. > :07:10.established with the countries of the European Union. It seems
:07:11. > :07:17.illogical to restrict ourselves in that way. It is not illogical that
:07:18. > :07:21.if the country votes to leave, then we leave the European Union. That is
:07:22. > :07:26.the choice for all of the people of the country. The only available
:07:27. > :07:29.mechanism is the triggering of article 50, that puts a two-year
:07:30. > :07:34.time-limit, of course we would try to negotiate in good faith, and
:07:35. > :07:39.extension can be achieved, but only with the consent of 27 other
:07:40. > :07:43.nations, people must be aware, there will not be to referendums, this is
:07:44. > :07:48.decision day on the 23rd of June, people need to choose, voting to
:07:49. > :07:53.remain in the EU is the best outcome for the economic and national
:07:54. > :07:58.security. Isn't it extraordinary that the Chancellor asked the G20 to
:07:59. > :08:02.make that statement and he made the request to them in order that they
:08:03. > :08:08.could tee up this element of Project fear. The idea that the US Treasury
:08:09. > :08:13.Secretary, the head of the IMF, indeed, the central bank governor of
:08:14. > :08:18.China dances to a British tune, I'm afraid, is a bit fanciful. The
:08:19. > :08:24.central-bank governors, and the finance ministers of the G20 are
:08:25. > :08:28.saying what frankly every major independent economic institution is
:08:29. > :08:33.saying, which is that a British exit would both cause an immediate
:08:34. > :08:38.economic shock, and have longer economic costs. Frankly, many of the
:08:39. > :08:43.people advocating exit, I totally understand why they want to do that,
:08:44. > :08:46.but they accent that there is a short-term and long-term economic
:08:47. > :08:50.cost, intensely, and I think that we should have that on the table, that
:08:51. > :08:57.is what the Treasury will produce this analysis. Despite the recent
:08:58. > :08:59.gulag debacle, does that Chancellor agree that the UK membership of the
:09:00. > :09:03.European Union should make it easier to clamp down on immoral tax
:09:04. > :09:12.avoidance by multinational companies? I know that Russia today
:09:13. > :09:20.is the favourite channel of the Labour leadership... LAUGHTER
:09:21. > :09:23.These are Treasury questions(!) what we are raising at the European
:09:24. > :09:28.Union, and this is another example of where being part of a bigger club
:09:29. > :09:35.helps, is precisely trying to get a pan-European agreement to country by
:09:36. > :09:37.country public reporting so that we can see what multinational companies
:09:38. > :09:41.are paying in different countries. -- Russia Today. Our ability to
:09:42. > :09:49.achieve that is amplified by being part of the EU. Jacob Rees Mogg. In
:09:50. > :09:52.my right honourable friend 's rather apocalyptic view of the European
:09:53. > :09:58.Union, if that is correct, was it not both either irresponsible or
:09:59. > :10:01.inaccurate of the priming astir to say that he ruled nothing out prior
:10:02. > :10:08.to the completion of the most unsatisfactory renegotiation. --
:10:09. > :10:10.friend's. We have secured a renegotiation which I think
:10:11. > :10:15.addresses the principal British concerns about our membership of the
:10:16. > :10:20.European Union. Now we can advocate membership of the reform EU, we will
:10:21. > :10:26.be stronger, safer and better off in the European Union. Between 2007 and
:10:27. > :10:32.2013, over 8000 businesses in the North West were able to start access
:10:33. > :10:34.to EU funding, we welcome the Chancellor's comments this morning
:10:35. > :10:37.about the analysis that he will put forward before the 23rd of June,
:10:38. > :10:44.will that include specific detail on the impact of leaving BA you on the
:10:45. > :10:48.economy to the Northwest? I am happy to take on board her request for
:10:49. > :10:52.more information about what the impact of exit would have on the
:10:53. > :10:58.north-west of England. I am a north-west MP. -- leaving the EU. I
:10:59. > :11:01.know that there is a lot of businesses which have access to the
:11:02. > :11:04.free trade single market, largest market in the world, all of the
:11:05. > :11:08.alternatives on offer, whether you go for Norway, Switzerland, Canada,
:11:09. > :11:12.the WTO, all of these different approaches, and of course, those who
:11:13. > :11:16.advocate withdrawal have not been able to set along one, all of them
:11:17. > :11:21.involve some kind of barrier to entry, or, you have to pay into the
:11:22. > :11:24.EU budget, as Norway does, and accept free movement of people,
:11:25. > :11:27.which is one of their complaints about membership. Examining the
:11:28. > :11:29.alternatives which we will do in the coming days will throw a spotlight
:11:30. > :11:40.on the choice facing the country. Should the British people decide to
:11:41. > :11:46.vote to leave on June 23, what arguments would you deploy on June
:11:47. > :11:52.24 two attract those investors wishing to invest in Europe, what
:11:53. > :11:58.arguments in favour of the UK rather than other countries in Europe? I
:11:59. > :12:01.will always fight and this Government will always fight for the
:12:02. > :12:05.best interests for the United Kingdom and we will do whatever we
:12:06. > :12:09.can in response to the verdict of the people. But the recommendation
:12:10. > :12:15.of the British Government and my recommendation is we are better off
:12:16. > :12:19.in the reformed EU. The point I make is this, of course we will have to
:12:20. > :12:23.handle the situation if the British people choose to exit and I would
:12:24. > :12:29.always stress we are a great country to invest in but I think that
:12:30. > :12:35.argument we are weaker if we are not in the EU. We must attend to the
:12:36. > :12:39.questions and in a timely way because this is desperately slow. We
:12:40. > :12:46.can do desperate -- better than that, one would hope. Would there
:12:47. > :12:50.not be a double whammy? The risk of depreciation leading to high
:12:51. > :12:55.inflation and interest rates. And any motion exporters will benefit
:12:56. > :12:59.from a cheaper pound is more than offset by additional tariff barriers
:13:00. > :13:06.those firms will encounter worldwide. I think the honourable
:13:07. > :13:10.gentleman, the former Shadow Chancellor, is right to point to
:13:11. > :13:14.both the immediate economic shock which I think it's generally
:13:15. > :13:18.accepted. Even those advocating withdrawal for honourable reasons
:13:19. > :13:23.would accept there is an immediate economic dislocation, and longer
:13:24. > :13:28.term costs. But if you say the Bretton to make this leap in the
:13:29. > :13:32.dark, what is the Trinity? -- to Britain. How do you assure the
:13:33. > :13:38.company fracture in the North East of England they will have no
:13:39. > :13:44.tariffs? These are the questions for this big national debate. Those who
:13:45. > :13:48.wish to state in the European Union say we are an insignificant and
:13:49. > :13:53.small economy but on the other hand, if we leave the European Union, it
:13:54. > :13:59.would cause an economic meltdown around the world. They both cannot
:14:00. > :14:06.be true, Chancellor. Our argument is that we will be stronger, better off
:14:07. > :14:10.inside a European Union. That is the sort of positive choices we face as
:14:11. > :14:15.a country and I do not think this is the right time. I do not think we
:14:16. > :14:20.should leave the EU but even those who contemplate it should think
:14:21. > :14:25.about this. With the economic situation the world faces, with the
:14:26. > :14:29.geopolitical situation in Europe with Putin on our doorstep and the
:14:30. > :14:34.crisis in the Middle East, is this the right moment to leave? My strong
:14:35. > :14:38.advice and the advice of the British Cabinet and British Government is we
:14:39. > :14:43.remain in this reformed EU. The Scottish First Minister Nicola
:14:44. > :14:52.Sturgeon was in London yesterday but making the case for the UK to remain
:14:53. > :14:57.in the EU. It supports 300,000 jobs in Scotland and 3 million in the UK.
:14:58. > :15:00.Can I ask the Chancellor to agree that in terms of EU membership,
:15:01. > :15:06.trade deals will be easier to agree as a block, harmonised regulation
:15:07. > :15:09.helps businesses to export and notwithstanding there are always
:15:10. > :15:17.improvements to be made, being a member of the EU edifice consumers
:15:18. > :15:22.as well? -- benefits. Scotland benefits from both being part of the
:15:23. > :15:26.United Kingdom and part of the European Union. And he is right to
:15:27. > :15:29.highlight the fact EU agreements on things like air travel and mobile
:15:30. > :15:35.phone chargers have reduced costs for consumers. It is also the case a
:15:36. > :15:43.depreciation in Stirling leads to increased inflation. In terms of
:15:44. > :15:49.free trade, free movement which we think is a boom and the projections
:15:50. > :15:54.in terms of the environment, social interaction and employment rights.
:15:55. > :15:59.These are substantial achievements of the European Union. To be
:16:00. > :16:03.celebrated and not renounced. That is the positive case we are making.
:16:04. > :16:09.Can I ask the Chancellor and the Prime Minister to make a positive
:16:10. > :16:18.case because the inner campaign does not have a 20 point lead to squander
:16:19. > :16:22.with a negative campaign. I am making the positive case we would be
:16:23. > :16:28.stronger, safer and better. Those are positive outcomes. And there
:16:29. > :16:31.are? Over the alternatives and we do not know what the leap in the dark
:16:32. > :16:37.would entail and that is reasonable to point out. I want to do this in a
:16:38. > :16:43.positive way and that is a healthy debate. I take the Ronald Reagan
:16:44. > :16:53.11th Commandment, I will not speak ill of a Conservative! Mr Speaker...
:16:54. > :17:01.The national living wage will mean a full-time minimum wage and it will
:17:02. > :17:04.earn over ?4000 more by 2020 in monetary terms, a rise of more than
:17:05. > :17:09.34% due to the ripple effects on those on higher incomes up to 6
:17:10. > :17:14.million workers will benefit, the national living wage will drive
:17:15. > :17:18.productivity, make sure work pays. Progressive and fair and I am proud
:17:19. > :17:23.it is being introduced by a Conservative government. I thank him
:17:24. > :17:27.for his response. I am delighted the national living wage comes into
:17:28. > :17:34.force from April the 1st Southampton has a number of low paid workers
:17:35. > :17:38.which this policy addresses. What assurances can he make to my
:17:39. > :17:41.constituents their jobs will be protected as a consequence of this
:17:42. > :17:49.wage rise and a stronger local economy? The assurance I can give is
:17:50. > :17:54.alongside the national living wage, we have cut taxes for businesses so
:17:55. > :17:58.they have more money to invest in their workforce. We have introduced
:17:59. > :18:02.and increased the employment alone is helping small businesses
:18:03. > :18:07.especially in used that at the same time as announcing the national
:18:08. > :18:10.living wage. And we are making big investments in the Southampton
:18:11. > :18:15.economy so this is a great place to grow business and employee people,
:18:16. > :18:20.all helping this hard-working people. Wage growth matters. Surely
:18:21. > :18:26.it is the bottom line of your payslip that counts. That is why he
:18:27. > :18:29.is wrong to say this is progressive when the Resolution Foundation finds
:18:30. > :18:33.over the next Parliament, those in the top half of the income
:18:34. > :18:38.distribution will benefit more than those at the bottom. How can the
:18:39. > :18:44.Chancellor say what he has done will help those with the least? I think
:18:45. > :18:50.she seems to be opposing the national living wage. I think it is
:18:51. > :18:54.a progressive policy and it was based on work by the Resolution
:18:55. > :18:59.Foundation. If you want a regressive policy, how about increasing the
:19:00. > :19:03.basing great -- basic rate of income tax? That is what the Labour Party
:19:04. > :19:07.is proposing in Scotland, the first sign of what an economic policy
:19:08. > :19:11.would look like under this New Labour leadership. How could an
:19:12. > :19:15.increase in the basic rate of income tax hitting people earning over
:19:16. > :19:22.?11,000 be remotely progressive or fair? Most businesses as well as
:19:23. > :19:26.workers in my constituency warmly welcomed the introduction of the
:19:27. > :19:30.national living wage and the increased spending power it
:19:31. > :19:33.delivers. Will the Chancer and his team heavily monitored the
:19:34. > :19:38.implementation to see if any unintended consequences happen
:19:39. > :19:44.particularly where margins are small set of bombing, social care and
:19:45. > :19:49.hospitality? -- Chancellor. Of course we will monitor the impact of
:19:50. > :19:55.our policies on the economy, especially sectors in the social
:19:56. > :19:58.care sector, that is one reason why alongside introducing the national
:19:59. > :20:04.living wage, we have introduced a new council tax supplement. The
:20:05. > :20:08.analysis when we announced this is while in theory 60,000 jobs could be
:20:09. > :20:16.lost in the future, that might otherwise not have been created, or
:20:17. > :20:20.the policies we will see creating over 1 million jobs so the overall
:20:21. > :20:25.effect is an increase of employment. How can the Treasury ensure
:20:26. > :20:33.employers do not reduce the hours of work to employees? Many of those in
:20:34. > :20:39.receipt of low incomes. What I would say is many different employer
:20:40. > :20:43.organisations and businesses have welcomed the national living wage
:20:44. > :20:49.will stop and many studies suggest having a higher ceiling, a higher
:20:50. > :20:58.law on wages drives up productivity which is one of the Great British
:20:59. > :21:04.economic challenges. Number four. As part of our long-term economic
:21:05. > :21:10.plan, the government's Charter for budget responsibility was approved
:21:11. > :21:15.by Parliament on October 15 2015. It sets a path to this country's
:21:16. > :21:19.long-term financial help to deliver a surplus and unlike other parties
:21:20. > :21:23.in this House, we will be strong and consistent in our support for the
:21:24. > :21:27.charter. The budget is on much the 16th.
:21:28. > :21:33.I am grateful to my honourable friend. In 2010, but budget deficit
:21:34. > :21:38.was 11.1% of GDP and this year will be down to third at 3.9% which is a
:21:39. > :21:43.remarkable achievement given the economic headwinds outside the UK.
:21:44. > :21:49.Could he tell the House what discussions he is having with other
:21:50. > :21:54.parties, in particular the shadow frontbench, in order to reduce the
:21:55. > :21:59.deficit? I thank my honourable friend for his
:22:00. > :22:02.support. I have had noes to discussions so far. Or any
:22:03. > :22:09.submissions from the frontbench opposite. -- no discussions. I have
:22:10. > :22:15.had as a mission from Ed Balls's, head of policy who said of the
:22:16. > :22:21.Shadow Chancellor's changing position, this kind of chaos less
:22:22. > :22:24.than a month into the job is the kind of low ease and significant
:22:25. > :22:33.political figures struggle to recover from. I agree that we need
:22:34. > :22:39.to reduce the debt and the deficit but with interest rates at record
:22:40. > :22:46.lows, and with the IMF forecasting investment in public and private
:22:47. > :22:52.investment will fall in the league table, should we not take advantage
:22:53. > :22:55.of low interest rates to in best in the creaky infrastructure, airport
:22:56. > :23:01.capacity and road and rail and flood defences? -- to invest. And I
:23:02. > :23:06.welcome her support for deficit, -- reduction and it is good to have her
:23:07. > :23:09.back but I remind her in the last Parliament, she voted against
:23:10. > :23:14.virtually every single measure of deficit reduction this Government
:23:15. > :23:19.took. In terms of investment, we have a big programme of
:23:20. > :23:22.infrastructure investment, 100 billion over this Parliament,
:23:23. > :23:24.including transport infrastructure and other measures to help her
:23:25. > :23:29.constituents and those across the country. As the IMF has been
:23:30. > :23:34.mentioned, would the Minister agree the statement last week we have
:23:35. > :23:40.delivered robust growth, record employment, is it never could
:23:41. > :23:44.reduction in the fiscal deficit and increased financial sector
:23:45. > :23:53.resilience is to be welcomed? I wonder if there is more to calm. --
:23:54. > :23:59.two, now. I thank my honourable friend for that supplementary and
:24:00. > :24:04.the IMF have been clear in their endorsement of the charter for
:24:05. > :24:08.budget responsibility. I say for example the transparency of the new
:24:09. > :24:13.rule with a focus on headline balances and simple and well defined
:24:14. > :24:18.escape clause is welcome. It commends the appropriate level of
:24:19. > :24:23.flexibility in the charter. In terms of external advice taken on by the
:24:24. > :24:29.party opposite, I am quite clear and it would appear from this morning's
:24:30. > :24:35.session Labour MPs are extremely helpful. Sit down, a terrible waste
:24:36. > :24:44.of time, long wounded, boring and unnecessary! -- long-winded. In the
:24:45. > :24:47.debates at the time of the charter, I am many others warned the
:24:48. > :24:53.Chancellor of the potential impact of global adverse headwinds. The
:24:54. > :24:57.Chancellor responded by posting and I quote, of having an economic plan
:24:58. > :25:03.that actually produces better results than forecast. Since then,
:25:04. > :25:07.we have seen business investment falling, his export target receding
:25:08. > :25:11.into the distance, trade deficit widened, manufacturing and
:25:12. > :25:14.construction and the recession, the productivity gap the biggest in a
:25:15. > :25:19.generation and last week the Chancellor tells us the economy is
:25:20. > :25:25.smaller than we thought. Can I say if his economic plan is now
:25:26. > :25:29.producing worse results than forecast, imposing more stealth
:25:30. > :25:37.taxes and cuts in the budget will only make matters worse! We need a?
:25:38. > :25:41.! Order. I said what I said because ministers responsible for answering
:25:42. > :25:45.for government policy and not that of the opposition and people who ask
:25:46. > :25:51.questions, from the front and backbench, pithy replies! Can I
:25:52. > :25:56.thank the Shadow Chancellor for that question. The forecasts at the
:25:57. > :25:58.moment still showed the UK performing extremely well with very
:25:59. > :26:09.strong rates of the Chancellor was right to say over
:26:10. > :26:13.the weekend we may need to undertake further reductions in spending with
:26:14. > :26:18.us this country can only afford what it can afford. He said, I am
:26:19. > :26:23.determined in this uncertain time we have economic security. That is what
:26:24. > :26:27.people rely on. But I am equally clear it would be a fundamental
:26:28. > :26:31.disaster for this country to pursue the policies he has been promoting
:26:32. > :26:35.in the six months he has been Shadow Chancellor.
:26:36. > :26:40.Can we address one of the domestic threats to the economy, this week,
:26:41. > :26:43.the former governor of the Bank of England has warned that bankers have
:26:44. > :26:51.not learned the lessons from 2008, and without reform, the financial
:26:52. > :26:54.system and another crisis is certain. Will the Chancellor take
:26:55. > :26:57.responsible do for the domestic responsibilities within the economy
:26:58. > :27:01.that have built up under his watch, will he withdraw his proposals to
:27:02. > :27:07.water down the regulatory receiving for senior bankers? -- regulatory
:27:08. > :27:11.regime. Can I remind the Shadow Chancellor that over the last five
:27:12. > :27:16.and a half years, it has been this government, that has been fixing the
:27:17. > :27:19.problems in our banking system, and that the poor regulation, the
:27:20. > :27:23.tripartite regime that we inherited from the government deviously, it is
:27:24. > :27:28.us taking action. In terms of economic policy, I have to look
:27:29. > :27:34.around at the Labour Party, and see what kind of reactions there are.
:27:35. > :27:38.Sits down, sit down, this is about government policy, progress is
:27:39. > :27:42.slower than at previous Treasury questions, please do try to stick to
:27:43. > :27:50.government policy upon which briefly you can and should speak. Hugh
:27:51. > :27:53.Merryman. Question five. Mr Speaker, the government wants to make
:27:54. > :27:57.homeownership a reality for as many people as possible, that is why we
:27:58. > :28:01.are building 400,000 new homes with extended help to buy, I can tell the
:28:02. > :28:04.house that the new help to buy ice launched one year ago at the budget
:28:05. > :28:09.and has been used by almost a third of a million families for saving for
:28:10. > :28:12.the first time. -- ISA. That is confirmation that as a Conservative
:28:13. > :28:15.government, we are on the side of the working family and home
:28:16. > :28:18.ownership. 82% of buyers are using help to buy, they would not have
:28:19. > :28:23.been able to buy their home without that skin, would my right honourable
:28:24. > :28:26.friend agree with me that it is the Conservatives helping hard-working
:28:27. > :28:28.people realise the dream of home ownership, is he aware of
:28:29. > :28:36.alternative economic policies and the risks they pose to families in
:28:37. > :28:41.my constituency? My honourable friend is absolutely right, 130,000
:28:42. > :28:44.people have made use of the help to buy schemes, helping people in his
:28:45. > :28:47.constituency and elsewhere ago on the housing ladder, at the same time
:28:48. > :28:51.we are seeking to increase supply, by building more homes that people
:28:52. > :28:56.can buy, it is worth noting that first-time buyers were down under
:28:57. > :29:02.50%, over 50%, over the last Labour government, 60% with us. Mr Speaker,
:29:03. > :29:06.the Chancellor makes great claims for policy but in inner London, in
:29:07. > :29:11.my constituency, it is a crisis, I met with the head of the CCG, we
:29:12. > :29:15.have a crisis in GP recruitment, hospital doctor appointments, even
:29:16. > :29:20.highly paid doctors cannot afford to get on the housing ladder, in my
:29:21. > :29:21.constituency, which is causing a crisis in public services, what is
:29:22. > :29:28.he going to do about that? We are doing two things about that,
:29:29. > :29:31.building more homes in London than were ever built under the last
:29:32. > :29:35.Labour government, and we have just introduced help to buy London so
:29:36. > :29:43.that we help Londoners specifically deal with the very high cost of
:29:44. > :29:49.houses in the capital. After six years as Chancellor, that he
:29:50. > :29:56.confirmed, from 2010 to 2015, whether home ownership was up or
:29:57. > :29:58.down? When I first became Chancellor, we were in the aftermath
:29:59. > :30:01.of a collapse in the housing market, so it took a couple of years to get
:30:02. > :30:06.the house-building going again, I can tell you that the house-building
:30:07. > :30:11.stats are up, and the number of first-time buyers has risen by 60%
:30:12. > :30:18.since I was Chancellor, down by 50% under the last Labour government.
:30:19. > :30:24.There you have it, we know from the English housing survey that there
:30:25. > :30:28.were 201,000 fewer households owning a home in 2015 than five years ago,
:30:29. > :30:35.compare to a million increase under Labour. By 2025, nine out of ten
:30:36. > :30:39.Britons under 35 on modest incomes in Britain will not be able to
:30:40. > :30:43.afford a home, renting in the private sector is soaring, the
:30:44. > :30:48.housing benefit bill is now likely to be 350 million more than he
:30:49. > :30:52.forecast last year. Isn't it true, Mr Speaker, that his record on
:30:53. > :30:56.housing investment is one of failure, with British families now
:30:57. > :31:01.literally paying the price? Housing stats are higher than when I became
:31:02. > :31:06.Chancellor but what people need above all as homeowners or people
:31:07. > :31:10.building houses is economic security, and that is what this
:31:11. > :31:13.government is seeking to deliver. Frankly, the fact that the Labour
:31:14. > :31:16.Party is now getting its advice from Yanis Varoufakis, and the
:31:17. > :31:21.revolutionary Marxist broadcaster Paul Mason does not suggest me that
:31:22. > :31:25.they have got an answer to economic security, presumably they chose
:31:26. > :31:33.those two because Chairman Mao was dead and Mickey Mouse was
:31:34. > :31:40.Tax treaties provide protection for UK citizens from discriminatory tax
:31:41. > :31:44.in other countries, we have one of the largest treaty networks, with
:31:45. > :31:49.over 220 in force, HMRC cannot intervene where a taxpayer is in
:31:50. > :31:54.dispute with a foreign entity on domestic issues, but where a treaty
:31:55. > :31:58.may not apply, and is not apply properly, they can request HMRC to
:31:59. > :32:03.raise the issue with the other revenue authority. My constituent,
:32:04. > :32:06.David Duncan, currently being pursued by the meat and assistance
:32:07. > :32:10.in the recovery of debt for a tax payment related to a time when he
:32:11. > :32:18.was residing in Germany. He was working in South Korea. He had been
:32:19. > :32:22.-- assured by his employer... This is a story, not a question, taking
:32:23. > :32:28.far too long, one sentence: what is it?! Will the Minister advise what
:32:29. > :32:32.help is available to my constituent, in terms of resolving this issue
:32:33. > :32:39.between Germany and South Korea, thank you. In Minister! It depends
:32:40. > :32:43.upon the nature of the dispute, if the honourable gentleman wishes to
:32:44. > :32:51.write for me -- to me, I will get back to him. Alistair Carmichael.
:32:52. > :32:54.Damian Hinds. The 2% duty cut in the March budget, 2015, continue to
:32:55. > :32:59.support 259,000 people across the sector, including Highland park, in
:33:00. > :33:03.the honourable gentleman's constituency. I thank the Minister
:33:04. > :33:10.for that answer, last year, you may recall that the cuts in alcohol
:33:11. > :33:14.duties would lead to a reduction of ?180 million in revenue, but in
:33:15. > :33:19.fact, since April, through to January of this year, we have seen
:33:20. > :33:25.?190 million increase in revenues, will he therefore look carefully at
:33:26. > :33:32.the request from the Scotch whiskey industry this year for a further 2%
:33:33. > :33:37.cut in duties? I know how much the sector values the cut in the duties,
:33:38. > :33:41.the first since 1996, it is great to see the industry in good health with
:33:42. > :33:45.a number of distilleries growing strongly and exports in other parts
:33:46. > :33:49.of the world, I have received representations from the SWI, of
:33:50. > :33:55.course among others in relation to the budget. Spirits, Andrew
:33:56. > :33:58.Griffiths. Any change reduction in spirit duty will impact on the
:33:59. > :34:09.market and other drinks such as beer! This is the government, this
:34:10. > :34:14.Chancellor scrapped Labour's hated Bill yesterday, and cut it three
:34:15. > :34:18.times, cut beer duty three times, more revenue for the Treasury, more
:34:19. > :34:23.beer sales, and saving hundreds of pubs, will he continue that
:34:24. > :34:29.supported the future? Mr Speaker, my honourable friend speaks in exactly
:34:30. > :34:34.the right spirits(!)... BOOING Use the representative Burton, the
:34:35. > :34:38.of beer, and nobody has done more to advocate for that particular
:34:39. > :34:44.industry, that important industry, the budget is on March 16, my right
:34:45. > :34:49.honourable friend makes any and all changes to duty at that such a
:34:50. > :34:53.school event. Scotch whiskey is the biggest main contributor to UK trade
:34:54. > :35:00.and goods, without it, the trade deficit would have been 11% larger,
:35:01. > :35:03.manufacture across, including in my constituency, have experience of
:35:04. > :35:06.exporting, they know that the domestic rates of tax have an impact
:35:07. > :35:10.on the attitude of international markets. What consideration has the
:35:11. > :35:16.Chancellor given to industry called to reduce the Excise in the upcoming
:35:17. > :35:18.budget? My right honourable friend is always very alive to
:35:19. > :35:23.representations from the Scotch whiskey industry, that product
:35:24. > :35:28.accounts for 25% of UK food and drink exports, Japan has been a
:35:29. > :35:32.strong market again for the sector. Others have not worked out so well,
:35:33. > :35:39.but we always continue to listen to what that important sector has to
:35:40. > :35:44.say. The employment level stands at 31.4 million, this represents more
:35:45. > :35:50.people in work in the UK than ever before. Over the past year,
:35:51. > :35:54.employment growth has been driven by full-time workers, and by high and
:35:55. > :35:58.medium skilled occupations. This demonstrates we are now moving into
:35:59. > :36:02.the next phase of our recovery, with high-quality employment, helping to
:36:03. > :36:07.boost productivity, and raise living standards across the country. The
:36:08. > :36:10.number of people in my constituency relying upon the other web benefits
:36:11. > :36:16.in Cheltenham has fallen by 70% since 2010. Does he agree with me
:36:17. > :36:20.that continuing to invest in GCHQ is key to safeguarding that progress,
:36:21. > :36:27.as it supports the high-value cyber jobs in the state and crucially in
:36:28. > :36:32.the civilian sector? The Chancellor announced at the spending review
:36:33. > :36:35.that we would be investing in cyber, quite a lot more, and Cheltenham
:36:36. > :36:40.would be seeing those benefits. Quite right to praise the employment
:36:41. > :36:45.picture and performance in Cheltenham, it has seen more than
:36:46. > :36:49.4000 people get into work, as well as 3000 fewer people in
:36:50. > :36:53.unemployment. Across the UK as a whole, the OBE forecast an increase
:36:54. > :36:59.of employment of 1.1 million, over the course of the parliament.
:37:00. > :37:04.Christians against poverty have found that 72% of people who are
:37:05. > :37:08.often working and on payment meters will behind on council tax and other
:37:09. > :37:15.bills, what assessment has been made of the impact of this type of tariff
:37:16. > :37:20.on household debt? We monitor household debt on an ongoing basis,
:37:21. > :37:25.and if she has some specific cases that she would like to show me, I am
:37:26. > :37:29.sure we can look at those and pass those onto DWP and others. I do have
:37:30. > :37:34.to say that overall, the point picture remains extremely strong. We
:37:35. > :37:38.have unemployment rate of 74.1%, and since the first quarter, UK
:37:39. > :37:46.employment rate has grown more than in any other G-7 country. What more
:37:47. > :37:49.support than the Chancellor given terms of pension to the
:37:50. > :37:52.self-employed, given recent trends suggest that in five years' time,
:37:53. > :38:00.4.7 million people will be self-employed and will not benefit
:38:01. > :38:05.from further involvement. That is an interesting point, and in terms of
:38:06. > :38:09.helping the self-employed, that is one of the key priorities of this
:38:10. > :38:16.government, and we will have to see what is in the budget on March 16.
:38:17. > :38:20.Is the Minister aware that I, like many members here, represent a
:38:21. > :38:24.university town, and the University is one of the best employers and the
:38:25. > :38:27.biggest employers in my constituency, universities up and
:38:28. > :38:32.down the country are terrified that if we left the EU, the amount of
:38:33. > :38:36.grant, we get most money for research, any country in Britain,
:38:37. > :38:39.full research, and research collaboration, our universities
:38:40. > :38:46.would be destroyed by leaving the EU. I join the honourable gentleman
:38:47. > :38:50.in campaigning for the UK to remain a member of the EU, and that is the
:38:51. > :38:57.right thing for us to do, both for the public finances overall and for
:38:58. > :39:01.the future of the UK economy. As the 220 communique made their over the
:39:02. > :39:04.weekend. It may also have an impact on university sector, which I'm sure
:39:05. > :39:09.will be one of the questions that will feature in the forthcoming
:39:10. > :39:16.debate leading into the referendum. Lawrence Robinson Battenberg
:39:17. > :39:21.Robertson. Question number nine. Equitable Life payment scheme has
:39:22. > :39:25.now successfully traced and paid 90% of eligible policyholders. Payments
:39:26. > :39:31.will continue for the life of these annuities. -- Laurence Robertson.
:39:32. > :39:38.Laurence Robertson. I thank the Minister for that response but given
:39:39. > :39:41.because of regulatory failure many policyholders lost out, that should
:39:42. > :39:45.be overseen by government, any government, not just this
:39:46. > :39:48.government, isn't it fair that those policyholders should receive
:39:49. > :39:51.compensation and if they do not, how can any invest in the future have
:39:52. > :39:56.any confidence in the regulatory system which is put in place. Of
:39:57. > :40:01.course, this Chancellor has done more than anyone else to tackle the
:40:02. > :40:05.regulatory failure of the 1990s with regards to Equitable Life, for
:40:06. > :40:09.example, with profits in your attention will receive full
:40:10. > :40:12.compensation for the life of the annuity, and pre-1992 NU attends
:40:13. > :40:20.will receive excavation payments of up to ?10,000, and ?775 million has
:40:21. > :40:27.been paid out tax-free to others despite the constraint public
:40:28. > :40:34.finances. -- annuitants. Those on pension benefit got a doubling. What
:40:35. > :40:38.about the ?1.5 billion that has been delivered by the government, has it
:40:39. > :40:41.been handed over? I regularly update Parliament in terms of those precise
:40:42. > :40:47.figures, and so far, we are at almost ?1 billion, the payments in
:40:48. > :40:57.terms of the new attends will continue for the lives of those
:40:58. > :40:59.annuitants. -- annuitants. The government is cutting taxes to
:41:00. > :41:04.encourage small businesses to grow, corporation tax will fall to 19% in
:41:05. > :41:10.2017, 18% 2020, the lowest energy 20, employed allowance will rise by
:41:11. > :41:13.15% this April, giving a 3000 discount on the national insurance
:41:14. > :41:17.contributions, and the seed enterprise investment scheme will be
:41:18. > :41:23.investing in early-stage companies, helping more than 2900 companies
:41:24. > :41:26.raise over ?250 million. Does them and is to agree, that impressive
:41:27. > :41:29.package for small business will equip them to benefit from the
:41:30. > :41:33.ascension of the single market, as negotiated by the Prime Minister,
:41:34. > :41:37.including energy and services, and that is even more of an emphatic
:41:38. > :41:40.case to remain in the European Union? What I would say demand for
:41:41. > :41:47.friend: -- what I would say to my honourable
:41:48. > :41:52.friend, there is more than 100,000 firms employing fewer than 50
:41:53. > :41:56.people, exporting goods to the European Union, we want to assist
:41:57. > :41:59.them, access to the single market is important to them and to those
:42:00. > :42:03.businesses and the 800,000 people they employ.
:42:04. > :42:08.Plans to move toward quarterly online tax reporting are proving to
:42:09. > :42:11.be deeply unpopular with small businesses. Can the Chancellor
:42:12. > :42:20.confirmed the impacts on administration costs?
:42:21. > :42:28.Overall, the government is clear HMRC's target is to reduce the
:42:29. > :42:32.burden on businesses by ?400 million by the end of this Parliament and
:42:33. > :42:38.moving towards a digital taxation system can help businesses reduce
:42:39. > :42:42.costs. We are consulting on the details but I want to make it
:42:43. > :42:54.absolutely clear there will be no quarterly tax returns. This has been
:42:55. > :43:01.wrongly reported in some cases. The government has committed to
:43:02. > :43:05.raise the personal allowance to ?12,500 and the higher rate
:43:06. > :43:08.threshold to ?50,000 by the end of this Parliament. At the summer
:43:09. > :43:12.budget, the gunman took the first steps by increasing the personal
:43:13. > :43:18.allowance to ?11,000 and raising the higher rate threshold to ?43,000 in
:43:19. > :43:23.2016-17, less people will pay tax after these charges and 570,000 will
:43:24. > :43:29.be taken out of income tax altogether. Does the Chancellor
:43:30. > :43:35.agree it is better to encourage saving by increasing the tax limit
:43:36. > :43:40.on pensions rather than reducing it, especially when savings struggle to
:43:41. > :43:46.get decent returns? As a government, we want to encourage more saving. We
:43:47. > :43:50.have taken steps for reforming our tax system so pensions become more
:43:51. > :43:54.attractive, but we also need to ensure the cost of pension tax
:43:55. > :44:02.relief is targeted in the right direction.
:44:03. > :44:07.Number 14, please. Mr Speaker, on productivity, the blood has product
:44:08. > :44:12.-- has published its plan, fixing the foundations. The plan outlines
:44:13. > :44:17.the steps to encourage further investment in the drivers of
:44:18. > :44:21.productivity growth including science, education, skills and
:44:22. > :44:25.infrastructure. It also sets out the way the government promotes a
:44:26. > :44:32.dynamic economy through reforming planning laws, boosting competition
:44:33. > :44:42.and creating a Northern powerhouse. According to the latest figures from
:44:43. > :44:45.the ONS, UK productivity measured by output 18 percentage points below
:44:46. > :44:51.the average for the rest of the G-7 economies. The widest gap since
:44:52. > :44:58.records began. Which is productivity deteriorating under this Chancellor?
:44:59. > :45:04.I do not accept that, we do except productivity is a problem. But
:45:05. > :45:10.productivity output per hour is 0.7% higher than its precrisis peak. I do
:45:11. > :45:15.improving at the moment. We do need to do more which is why we have laid
:45:16. > :45:23.out a national productivity plan with a set of key targets and areas
:45:24. > :45:25.like research of infrastructure, and infrastructure Commission, cutting
:45:26. > :45:31.corporation tax and a lot more besides.
:45:32. > :45:40.Topical questions, Kirsten Oswald. Number one, Mr Speaker. The purpose
:45:41. > :45:43.of the Treasury is to ensure the productivity and stability of the
:45:44. > :45:49.economy. Did he have a chance to read the
:45:50. > :45:52.Audit Office report on financial services miss selling and is it a
:45:53. > :45:57.missed opportunity to deliver a financial advice sector protecting
:45:58. > :46:03.small sale investors when things go wrong as they did with a number of
:46:04. > :46:06.issues for my constituents. We have tried to increase consumer
:46:07. > :46:11.protection by increasing the powerful detection agency and
:46:12. > :46:16.providing greater financial advice to individuals like the money advice
:46:17. > :46:21.service and pension wise but if she has specific further ideas, I would
:46:22. > :46:25.be happy to look at them. With the government making some of
:46:26. > :46:29.the biggest investments in road and rail in history, is my right
:46:30. > :46:33.honourable friend aware of any alternative investment policies and
:46:34. > :46:38.the impact it would have on economic security, in particular the Southern
:46:39. > :46:42.powerhouse? She is right to draw attention to the big investment in
:46:43. > :46:46.our nation's infrastructure, especially transport, with the
:46:47. > :46:51.biggest rail programme since the Victorian age and biggest road
:46:52. > :46:56.programme since the 1970s. She has seen that in her area. Having an
:46:57. > :47:00.economic policy destroying confidence in the British economy
:47:01. > :47:09.would mean no investment. The OECD have estimated tax havens
:47:10. > :47:13.cost developing countries three times the global aid budgets. Does
:47:14. > :47:17.the Chancellor share my frustration that the UK overseas territories
:47:18. > :47:21.have ignored the pleas of the Prime Minister to introduce beneficial
:47:22. > :47:25.ownership registers? What more can be done to end the secrecy and lack
:47:26. > :47:30.of action? It is the case the UK is leading the
:47:31. > :47:35.way in terms of a public register of beneficial ownership. Other
:47:36. > :47:39.countries including the overseas territories have not committed to
:47:40. > :47:42.that and we engage with them. We do believe they should follow in the
:47:43. > :47:48.direction we have as other country should do.
:47:49. > :47:52.Tackling the deficit should rightly be a priority for the country. Can
:47:53. > :47:57.my right honourable friend say what steps he is taking to ensure
:47:58. > :48:02.everybody pays that their share in meeting the objectives?
:48:03. > :48:05.He is absolutely right that we want to make sure this is done fairly and
:48:06. > :48:07.under this Government, the richest pay a higher proportion of income
:48:08. > :48:13.tax than under the last Labour government. The numbers have come
:48:14. > :48:19.out this morning which for the first time showed the income tax data for
:48:20. > :48:28.the year 2013-14 when the 50p rate was reduced to 45p, which shows
:48:29. > :48:30.there was an ?8 billion increase in revenues and additional rate
:48:31. > :48:37.taxpayers. Which defies the predictions made by the Labour Party
:48:38. > :48:41.at the time. It shows what we have is lower competitive taxes paid by
:48:42. > :48:48.everybody. Figures from the PCS union showed
:48:49. > :48:53.2,000 HMRC staff in Scotland face redundancy including 150 experienced
:48:54. > :48:59.and dedicated people in Inverness. At the same time, the overtime bill
:49:00. > :49:02.is around ?6 million per month. Can the Chancellor explain to my
:49:03. > :49:10.constituents how this makes any sense at all? HMRC are engaged in
:49:11. > :49:16.changes to focus on 13 regional centres across the UK. The same
:49:17. > :49:20.proportion of the workforce will continue to be in Scotland, as is
:49:21. > :49:26.the case now. A larger percentage than the population of Scotland.
:49:27. > :49:31.What we look to do with HMRC is to improve efficiency. We do believe
:49:32. > :49:35.regional centres will enable it to achieve more for less. It already
:49:36. > :49:42.gets more money in and a better rate of return than ever before.
:49:43. > :49:44.Around 40,000 people in my constituency had benefited from the
:49:45. > :49:49.rise in the personal allowance since 2010, can he confirm the government
:49:50. > :49:52.will continue to help hard-working people keep all of the money they
:49:53. > :49:56.earn? That is what this Government was
:49:57. > :50:00.elected to deliver and we have manifesto commitments to deliver not
:50:01. > :50:05.just a ?50,000 threshold for the higher rate but a ?12,500 personal
:50:06. > :50:12.allowance so more people can see the benefit of either paying no tax or
:50:13. > :50:18.less tax if they are better paid. Can the chance lack advise when he
:50:19. > :50:21.will publish the proposals for the distribution and calculation of the
:50:22. > :50:26.apprenticeship Levi to devolved nations and whether the nations have
:50:27. > :50:31.agreed to its -- levy. We are working to get those big O Shea she
:50:32. > :50:35.was right and they are complex because of the single levy rate. We
:50:36. > :50:40.are having good discussions with the Scottish government and with the
:50:41. > :50:44.fiscal charter, we can work together for the benefits of the United
:50:45. > :50:47.Kingdom. I welcome the fact my constituents
:50:48. > :50:51.have been given more control over their finances thanks to changes
:50:52. > :50:55.implemented by the government. Can the Minister advise what steps will
:50:56. > :50:58.be taken to ensure regulation the small High Street financial advisers
:50:59. > :51:03.and insurance brokers is both there and proportion at giving the
:51:04. > :51:09.important services they provide? -- there. Can I thank him for raising
:51:10. > :51:12.this point? We have launched the financial advice market review the
:51:13. > :51:18.report around the time of the budget. We will make financial
:51:19. > :51:24.advice more affordable and available. And we will get the right
:51:25. > :51:27.regulatory balance for small firms. With reports include points the
:51:28. > :51:35.basis that the delays, will he be visit his decision to write the
:51:36. > :51:39.French and option and return with fallback options? We are working
:51:40. > :51:44.with the French government and the signs are they are committed to this
:51:45. > :51:49.project. I think this is a very good example of how the UK working with
:51:50. > :51:54.friends and attracting investment from Asia is getting a new
:51:55. > :51:57.generation of nuclear power under way -- brands. That was promised for
:51:58. > :52:01.more than 20 years and has not happened and will now take place in
:52:02. > :52:04.Somerset. Proud to have been part of a
:52:05. > :52:09.government which introduced the national living wage but I wonder if
:52:10. > :52:15.he has looked at the British Retail Consortium report, retail Twenty20,
:52:16. > :52:22.which talks about that and the impact of internet shopping? I did
:52:23. > :52:26.see that report yesterday and I think we have to accept in this
:52:27. > :52:29.House the retail industry faces an enormous amount of change especially
:52:30. > :52:32.because of what is happening on the in the net and the way people have
:52:33. > :52:38.been shopping online. One of the biggest changes we can make is to
:52:39. > :52:42.allow stores to open on a Sunday which is the biggest single day for
:52:43. > :52:48.internet shopping. We cannot at the same time say we want to protect our
:52:49. > :52:51.High Street and say they cannot open on one day of the week when the
:52:52. > :52:59.internet is open 24 hours a day. We will vote on that next week. The
:53:00. > :53:04.statement referred to the UK seeking a multilateral agreement on making
:53:05. > :53:10.tax paid by companies publicly available. Can he say what measures
:53:11. > :53:14.he will take to achieve that and on what timetable? And will he admit
:53:15. > :53:19.his Google Tech still was not a great success and accept the Public
:53:20. > :53:25.Accounts Committee call for full transparency? The Public Accounts
:53:26. > :53:30.Committee have investigated deals and they welcome to so again. They
:53:31. > :53:35.gave the HMRC a clean bill of health on its approach. We are introducing
:53:36. > :53:38.the country by country reporting, regulations came into force last
:53:39. > :53:43.week. They only happen because this Prime Minister put it on the agenda
:53:44. > :53:49.in this country and internationally and I have been calling both for the
:53:50. > :53:52.EU and at the due 24 that be an international agreement so we know
:53:53. > :54:00.what companies pay in different jurisdictions rather than just
:54:01. > :54:04.reading reports. -- and at the G20. The local economy in my constituency
:54:05. > :54:06.comprises thousands of small businesses, can he offer
:54:07. > :54:10.encouragement to the Federation of Small Businesses which is pressing
:54:11. > :54:19.for tax amplification to reduce the burden of tax administration on
:54:20. > :54:26.small businesses? What I would say is one of the areas I do think we
:54:27. > :54:31.can make progress on is in terms of the digitalisation of the tax system
:54:32. > :54:34.which can help a lot businesses. And the office of tax and publication
:54:35. > :54:39.has been strengthened, looking forward to seeing a couple of
:54:40. > :54:47.reports over the next days in terms of what we can do to help small
:54:48. > :54:51.businesses in particular. When services have been removed from
:54:52. > :54:56.local authority control and centralised in England, they had
:54:57. > :55:00.been granted the right to claim VAT. Does the Chancellor not accept that
:55:01. > :55:05.the refusal to grant that rate the Police Scotland, leaving them as the
:55:06. > :55:13.only UK force that pays VAT, just looks vindictive? To be fair, it was
:55:14. > :55:19.made perfectly clear what the position was in terms of reclaiming
:55:20. > :55:23.VAT. When the decision was made by the Scottish government to go down
:55:24. > :55:30.this course. The UK government is simply pursuing a policy that we
:55:31. > :55:34.always said we would pursue. The Chancellor will be aware debates
:55:35. > :55:37.have been held and questions in the House regarding serious allegations
:55:38. > :55:41.of collusion between banks to deliberately undervalued assets
:55:42. > :55:46.overseas. Has my right honourable friend considered the current
:55:47. > :55:51.regulations and whether there needs to be a broader remit for the SFO
:55:52. > :55:58.and other organisations to investigate the serious and growing
:55:59. > :56:02.number of allegations? I am aware of the points he is raising in
:56:03. > :56:09.Westminster Hall. And I am very keen in our system that we have a tough
:56:10. > :56:12.set of rules in terms of conduct in the banking system. And I would
:56:13. > :56:17.welcome the opportunity to meet with him and to discuss these specific
:56:18. > :56:23.allegations in more detail. If the Chancellor believes that
:56:24. > :56:27.strong steel sector is fundamental to a strong Northern powerhouse,
:56:28. > :56:31.what steps is he taking the level the playing field for the steel
:56:32. > :56:34.industry, the foundation of our manufacturing and defence industries
:56:35. > :56:38.so we can have a prosperous future to match a prosperous past?
:56:39. > :56:44.Of course, the steel industry faces a big challenge at the moment, and
:56:45. > :56:48.that is true in many other countries in the world, as the price of steel
:56:49. > :56:52.has collapsed, we have taken a number of steps to ensure a level
:56:53. > :56:56.playing Friel that piece speaks of, taking them out of the energy
:56:57. > :57:02.levies, proposing additional costs on them, making sure that local
:57:03. > :57:06.areas that have had redundancies get the support they need. -- level
:57:07. > :57:09.playing field that he speaks of. Making sure that we are buying
:57:10. > :57:13.British Steel and taking into account the social impact of the
:57:14. > :57:16.steel purchases in making value for money assessments. Full, as I have
:57:17. > :57:20.said in reply to an earlier question, working through partners
:57:21. > :57:23.in the you to make it clear that we do not and cannot support Chinese
:57:24. > :57:28.steel dumping and we need to take action against it. My right
:57:29. > :57:31.honourable friend the Chancellor is well aware of the widespread and
:57:32. > :57:35.cross-party support for a children's specialist accident and trauma
:57:36. > :57:39.department at Southampton General Hospital, can I urge him to give
:57:40. > :57:42.careful consideration to what is being put together by clinicians, I
:57:43. > :57:48.know they have sent to him, they are looking for support from a match
:57:49. > :57:52.funding bid. I am aware of the case being made, a very strong case, in
:57:53. > :57:57.my view, for the children's facilities at the Southampton
:57:58. > :58:00.hospital, the case advanced by her and other colleagues of mine
:58:01. > :58:03.including notably the member for Winchester that has boosted
:58:04. > :58:07.alongside her, it is something we are looking closely at and I will
:58:08. > :58:15.make an announcement into course. If I can follow the member in raising
:58:16. > :58:19.the key on the apprenticeship levy, the devolved governments are moving
:58:20. > :58:22.towards elections, we need to know as soon as possible, and will there
:58:23. > :58:28.be a Barnett Formula consequential on the back of it as well? Our
:58:29. > :58:32.intention is to use the principles of the Barnett Formula, to make sure
:58:33. > :58:35.that the devolved administration not just in Scotland but in Northern
:58:36. > :58:39.Ireland get the resources they need. We would urge them to spend those
:58:40. > :58:47.resources on training, ultimately it is a matter for them and the people
:58:48. > :58:49.they are accountable to. Given the importance of family investment in
:58:50. > :58:55.start-up business, particularly science and technology business are
:58:56. > :58:57.often a leap of faith is required, will the Chancellor consider lifting
:58:58. > :59:02.the restrictions on family investment in the EE ISN SCIS
:59:03. > :59:06.scheme, so that mother and father can invest alongside everybody else
:59:07. > :59:12.on the same terms. I'm happy to take that as a budget representation, I'm
:59:13. > :59:22.sure that he will say that if it ends up on budget day, he will see.
:59:23. > :59:24.-- EIS and SCIS. They are schemes that have been enormously
:59:25. > :59:28.successful, we need to make sure that they are tight enough, rather
:59:29. > :59:32.than used as a vehicle for tax avoidance, we have the balance right
:59:33. > :59:36.so far, but I'm aware of good positive proposals that people have
:59:37. > :59:44.put forward to improve it. Mr Skinner? Not at the moment, no?
:59:45. > :59:48.No... Fair enough. Helen Goodman. The Chancellor chose to give a path
:59:49. > :59:51.to his desire to Sunday trading liberalisation, I would like to ask
:59:52. > :59:58.him if he is aware of the study produced yesterday, which showed
:59:59. > :00:01.that all that there will be is a switch of activity from small shops
:00:02. > :00:06.to big shops, meaning a loss of thousands of jobs. The honourable
:00:07. > :00:11.member the Litchfield says that he has already done that question, as I
:00:12. > :00:13.have often had cause to observe, repetition is not a novel
:00:14. > :00:21.phenomenon! LAUGHTER To repeat myself... I do not think I
:00:22. > :00:26.agree with the honourable lady. It has been the case that when we have
:00:27. > :00:31.extended opening hours, we have not seen a displacement of jobs, we have
:00:32. > :00:35.seen an increase, that is the response from the retail industry.
:00:36. > :00:40.These arrangements exist in Scotland and many European countries and the
:00:41. > :00:46.US. Many which are countries with strong Christian faiths. I do not
:00:47. > :00:51.think there is a contradiction and we worry about our high street, and
:00:52. > :00:54.then do not allow high street stores to open on the day when you have the
:00:55. > :00:57.biggest Internet shopping taking place of all. It is one of the
:00:58. > :01:04.answer to helping the high street, not the only one, but it is an
:01:05. > :01:06.important one. North and North East Lincolnshire councils are currently
:01:07. > :01:11.preparing detailed regeneration plans. Can the Chancellor assure me
:01:12. > :01:15.that he will give serious consideration to these, so that my
:01:16. > :01:22.constituents can gain maximum benefit from the northern powerhouse
:01:23. > :01:26.initiative. We will give careful consideration, as I always do, to
:01:27. > :01:29.the proposals that he comes forward with, to support North Lincolnshire
:01:30. > :01:33.and his own constituency. And of course, we have been able to make
:01:34. > :01:37.investments in new roads, and make the tolls on the Humber Bridge,
:01:38. > :01:45.enterprise ends, any new ideas he has got I would love to see them!
:01:46. > :01:50.Happy Saint Davids Day to you. The Chancellor often talks about
:01:51. > :01:54.repairing the roof when the sun is shining, amassing $810 billion in an
:01:55. > :01:58.oil fund when the sun shone, in Scotland, how much did the broad
:01:59. > :02:03.shoulders of the UK say for moments like this to help the north-east of
:02:04. > :02:07.Scotland, is the figure indeed zero! We are providing support to
:02:08. > :02:13.Scotland, support that is entrenched in the fiscal framework that we have
:02:14. > :02:16.agreed with the government. He cannot duck his responsibilities, he
:02:17. > :02:21.wanted Scotland to be independent on the 24th of March, this month. And
:02:22. > :02:24.if we had gone ahead with that, if the Scottish people had voted for
:02:25. > :02:30.it, there would have been a fiscal catastrophe in Scotland, because oil
:02:31. > :02:33.revenues have fallen by over 90%. We had a question from an earlier
:02:34. > :02:38.Scottish nationalist... Order, order... It is a very unseemly
:02:39. > :02:46.mystic elation from the honourable gentleman... I remind him of his
:02:47. > :02:50.status in this house, as the chair of a select committee! He is an
:02:51. > :03:00.aspiring statesman, and he must conduct himself accordingly. --
:03:01. > :03:02.gesticulation. In response to an earlier question about productivity,
:03:03. > :03:05.the right honourable member mentioned the drivers of growth
:03:06. > :03:10.being investment in science and technology, does he, like me,
:03:11. > :03:15.welcomed the government commitment to train 17 and a half thousand more
:03:16. > :03:20.teachers in stem, and also, does he think that there is no time to waste
:03:21. > :03:27.in recruiting those teachers. -- 17,000 500. -- in STEM. This is one
:03:28. > :03:34.of the big national challenges, to get more children studying STEM and
:03:35. > :03:41.the key is to get more STEM teachers and we need more girls studying STEM
:03:42. > :03:47.as well. Schools have the tools to recruit teachers themselves. We must
:03:48. > :03:48.move on, demand invariably exceeds supply, nobody is keen to facilitate
:03:49. > :03:49.questions