Live Treasury Questions House of Commons

Hello and welcome to BBCParliament 's live coverage from the House of

Commons. In an hour's time the Shadow Foreign Secretary well as an

urgent question on recent developments in Turkey. At least 232

people were killed and 1400 wounded in fighting after a failed lilitary

coup to overthrow the Turkish Government on Friday. The m`in

business in the Chamber will be the second region of the Higher

Education and Research Bill. The legislation would mostly apply in

England and will force univdrsities to release more information covering

ethnicity, gender and background as well as making it easy to start new

higher education institutions. Join me for a round-up of the dax in both

Houses of Parliament at 11 o'clock tonight. Before all that, wd have

the first session of questions to the new Chancellor of the Exchequer,

Philip Hammond, and his teal of ministers.

Order, order. I must inform the House that I have received written

notification from the chair of the culture, media and sport colmittee,

namely the honourable gentldman their members via Hereford `nd South

Herefordshire and from the chair of the science and technology

committee, the honourable mdmber for Oxford West and Abingdon, of their

wish to resign from the chahr following their ministerial

appointments. In accordance with the standing order number 122 C, I

declared that the chairs of those two committees are vacant. H shall

announce the announcement -, for the elections as soon as practical. I

hope it will be possible to hold those elections during the September

sitting. Order, questions to Mr Chancellor of the Exchequer, Mr

Philip Boswell. Thank you. With your permission, I should like to group

this question with questions two, seven and eight. While it is clear

that the referendum decision represents a shock to the UK

economy, thanks to the actions taken nevertheless six years by mx

predecessor, he is well placed to respond. I will work closelx with

the Bank of England to provhde stability and maintain confhdence in

the fundamental health of the UK economy as we prepare for the Autumn

Statement. As further post-referendum economic data is

published, the short-term rdsponse of the economy to the Brexit

decision will become clearer and if further measures are requirdd, they

will be announced at the Autumn Statement. Giving colleagues

anecdotal evidence of capit`l flight, the recent vote to leave the

EU has plunged the economy hnto volatility and uncertainty `nd given

the Conservative Government have been slow to act and yet to provide

a strategy, can the Chancellor tell the people of the UK when they will

get an insight into the scale of capital flight following thd Brexit

vote? The honourable gentlelan is right to say that the shock of the

exit vote at the referendum has created a short-term turbuldnce in

the UK economy but we are wdll placed to manage that turbulence. In

answer to his question about data, there are a series of data

publications jubilate summer and autumn which will inform a proper

response at the Autumn Statdment. The so-called long-term economic

plans of the Conservative Government has resulted in the Governmdnt

failing on key economic indhcators are missing the target set for

themselves. Can the Chancellor tell the Chamber whether we are going to

witness an end to this disastrous area of austerity? The UK continues

to run a very large fiscal deficit by international standards `nd we

would have to address that deficit. We have already announced wd will no

longer seek to bring the budget into balance by 2019/ 2020. That doesn't

mean we can go forward without a clear framework for retrievhng

fiscal balance over an appropriate time frame and we will addrdss this

issue at the Autumn Statement. Can I welcome the chance led to hhs place

and wish him good luck. He's going to need it. A survey of 132 fought

macro officers found it expdcted revenues to fall. Business

confidence is now lower than at the time of the collapse of Lim`n. 2%

of companies expect to reduce capital spending. This is a call by

Brexit. What steps will attdmpt to take to restore confidence `nd don't

just give us what for, give us real plans. The honourable gentldman is

right. The evidence is anecdotal in the early stages as you would

expect. The initial responsd to this kind of shock must be a mondtary

response delivered by the B`nk of England. The governor in announcing

that interest rates were not delivered last week did makd it

clear the bank is developing a monetary package which will announce

in course. The Chancellor's certainty that following thd EU

Referendum Bill the purchasd of one company is not shared by its

founder, Hermann Hauser, who said the determination of what comes next

the technology will not be decided in Britain any more but in Japan.

Wide as the Chancellor think the founder of the company is wrong I

suspect that the founder of the company has not had the bendfit of

discussions with the acquirhng company. I have met the leader of

the current management team who wholeheartedly supporting the

purchase by Softbank. We have achieved and have volunteerdd for

some hard guarantees about the future autonomy of the comp`ny,

headquartered here in the UK about its commitment to double thd number

of UK employees of the next five years. What became clear from a

discussion with the founder and CEO of Softbank, is they firmly believe

that Cambridge will be the global centre for developing the Internet

of Things and Arm will play a key role in that. It is the job he

always wanted. I am hoping `nd I noticed he has said that we are

going to wait until the Auttmn Statement. I hope I get an `nswer to

this one earlier. The fix -, fiscal surplus target has rightly scrapped

the discussion -- the decishon to stick to this surplus rule `nd the

automatic stabilisers have been allowed to kick in. The higher

deficit implied by that dechsion will have to be plugged sooner or

later from 2010. The predecdssor planned an 80% consolidation of bat

to come from spending and only 0% from tax. There is a question

coming. In the event, it was better than that. Does he intend to stick

to his predecessor's target or is he going to vary it? Mr Speaker, the

honourable gentleman will note that in fact the surplus rule always came

with the caveat that if OBE are forecast for consecutive qu`rters of

less than 1% annualised growth, the target would be suspended. The

consensus of all forecasters is that is likely to be what they forecast

this Autumn Statement. My predecessor's announcement was

pre-empting something that dverybody expects to happen. How we are going

to respond over the longer term to the resulting deficit will be set

out at the Autumn Statement. In the hope that he will provide a

masterclass in the ass king of a question, I called Mr Jacob Rees

Mogg. May I congratulate my right honourable friend on his

appointment. May I go on to point out to him that it is a gre`t

opportunity through Brexit that ?24 billion purchase of Softbank is a

good example of trade deals that are a good sign of this. When hd grasp

this opportunity and lead us through? Might honourable friend

points to the fundamental strengths of the UK economy. Britain hs still

one of the most attractive places in the world to do business, to start a

business, to invest money. Ht is right that we should focus on those

positive aspects. It is also right that we are conscious of thd

short-term turbulence that we will inevitably experience and the need

to manage that carefully ovdr the next 18 months. I also welcome the

Chancellor to his place. As has been mentioned, Softbank has madd a huge

investment in a fantastic C`mbridge business. Cambridgeshire is at the

forefront of technology and innovation and it will double its

workforce. Cambridge can only continue to attract investmdnt like

this if we have the infrastructure to support it. Can he confirm that

he will be committed to infrastructure investment? Ly

honourable friend is right. Raising the UK's productivity is thd

long-term challenge for our economy and infrastructure investment is one

of the ways we do that. I draw attention to another point. The

success of Cambridge today not only as a centre of academic excdllence

but as an innovation hub of global importance, has arisen becatse of

the very foresighted decision of Cambridge City Council many years

ago to allow development around the city and the creation of thd

Cambridge business Park, now a world magnet for investment. Can H

congratulate the Chancellor on his position. One of the key flows of

capital that will increase post-Brexit is the 300 millhon or so

invested every year in guilt by those seeking a UK investor Beezer.

This is of little value to the UK economy. I wrote the previots team

saying this would be better investment in drug discoverx but

amazingly I got the brush off. I wonder if I could impose myself upon

the Chancellor of the Exchepuer and ask for a meeting to explain the

merits of requiring these pdople to invest in a productive part of the

UK? I anticipate there will be ` neat in

the foreseeable future. I understand the point and I will be happy to

discuss it with him. My congratulations to the Chancellor.

When I welcomed him I was a very fresh face. He already showdd great

promise which he has more than fulfilled now. Would you not agree

that the major threat from Brexit is the investment in British industry

and in Britain and thereford the purchase by Softbank of this is to

be welcomed and it is the bdst antidote to be prevailing doubts

that exist at the moment? Wdll, I think the honourable gentlelan is

absolutely right. I thank hhm for his kind words. We need to remind

ourselves that we are running a 6.9% of GDP external account defhcit

That has to be funded somehow. It has been funded by a successful run

of foreign direct investment into the UK, more than in any other

country in the European Union. That has slowed as uncertainty around the

reverend has been created. We now need to generate the confiddnce to

allow it to resume. Mr Speaker, I'd like to take the opportunitx to

welcome the Chancellor to hhs post and the Chief Secretary and new

Ministers. There is a real concern that the uncertainty surrounding

Brexit is forcing many businesses and international banks to consider

moving their core operations and jobs overseas. Banks, in particular,

make use of the EU banking arrangements to operate in the UK.

What measures will be Chancdllor be taking to avoid the loss of these

arrangements? The honourabld lady is right that passport thing is an

important feature of the arrangements we have with the

European Union. In the negotiations that we will have in the future with

the European Union about Brhtain's future relationship with it,

protecting those rights for our financial sector, which I should

emphasise is not just about London. Two thirds of financial jobs are

outside of London. That'll be an important part of the negothations.

Moving back to the issue of arms. Foreign takeovers linked to the fall

in the pound. The Chancellor stated this week that Britain is open to

foreign investment, barely ` week after the Prime Minister wanted to

oppose such takeovers. Has the Government approach to securing new

investment being reduced in the matter of the week from an

industrial policy, to slashhng corporation tax and hoping for the

best? No, Mr Speaker. The UK remains very much open to foreign

investment. We are very cle`r that we want investors that will invest

in British technology, jobs and businesses headquarters basdd and

directed from the UK. We ard not open to asset strippers. Nulber

three, Mr Speaker. With your permission, Mr Speaker. I would like

to answer this question for. A total value of ?7.6 billion. Over 300

infrastructure schemes have been delivered in the West Midlands since

2010. There are eight in projects in the infrastructure pipeline, it will

job value of ?3.5 billion. Over 240 schemes have been delivered since

2010. Thank you, Mr Speaker. I am grateful for the response and I

would like to congratulate ly honourable friend on his new role.

The power station site is a hop of connectivity. The National grade,

infrastructure all come togdther and an ideal location for redevdlopment.

Will my right honourable frhend outline the assistance the

Government can provide to ensure the speedy redevelopment of the site and

will he meet with me to discuss the possibility of creating an

enterprise zone on the strategically important site in the West Lidlands?

Well, I'd like to thank my honourable friend for her khnd words

and also thank her for her puestion. She is not the first represdntation

I have received in the few days I have done this job are not the last

I will receive today. I will be delighted to meet with her to

discuss the enterprise zone and the site she talks about. It is

important that we have world-class infrastructure and if we can bring

them together in various forms at particular sites, that enables us to

make further progress and I look forward to discussing that hn future

with her. Can I also congratulate my right honourable friend. Thd

infrastructure bonds will hdlp improve productivity and promote

economic growth. Could you please outline the projects that could be

eligible for this funding? H am not sure this morning is a point in

which I can provide specific examples. I would say to hil is that

this Government is very ambhtious about infrastructure, as my right

honourable friend the Chancdllor has already pointed out, infrastructure

is one of the ways we can promote productivity. It is one of the great

challenges we face but we are determined to address it. The

Minister has wheeled off a list of money going to introductory products

in the West Midlands, could you publish a list of all the money

years delivering? Who is gohng to be accountable for this public money?

Is it going to be combined authorities, local authorithes?

Interns, it wasn't just mondy. I would be delighted to provide her

with the details of the projects that have been delivered. 300

infrastructure schemes delivered in the West Midlands. 240 in the

north-west. In terms of accountability, is pacific nature of

these schemes, as is clear over the last six years, we have delhvered on

infrastructure. That is mord to do and we are determined to do that.

One of the absurdities of the last Chancellor's tenure was the fiscal

year rules that forbid borrowing money, even when the return on that

money would have the. The former Chancellor ended up borrowing

billions. Does that -- that orthodoxy was challenged in the

leadership election. Will wd see a more rational approach? As ly right

honourable friend the Chancdllor has already made clear, the previous

Chancellor also made clear, in circumstances where there is a

projection of growth less than % over a 12 year period, that 12 month

period, that fiscal rule dods not apply. The fact is, we inherited a

deficit. We have shown strong determination over the last six

years to bring that deficit down. As we face the challenges we now face

in terms of Brexit, taking the tough decisions on public spending over

the last six years, we would be in a more honourable position th`n they

are now. The previous Chancdllor announced a new rail link bdtween

the Midland Metro and the enterprise zone in my constituency. Wotld he

meet with me to discuss how we can extend that to the mainline rail

link at Stourbridge so that we can support businesses, commuters and

jobs in my constituency? I lade my prediction that I will recehve

further representation and direct request seems to be holding true. I

am happy to meet my honourable friend to discuss this projdct.

Thank you, Mr Speaker. Can H add my welcome to the Chancellor to his

position and the whole team. He deserved the promotion to bd chief

secretary as well. I believd I promoted only a month ago in the

speech to the House itself. EU funding for the regions comds to 10

billion per year. The local Government Association confdrence

recently said all parties expressed their concern over the last of the

structural funds. Will he clarify whether he plans to make funding

equivalent to that received to the EU structural funds in the dvent of

the UK leaving the EU? Can H thank the Shadow Chancellor for hhs kind

words? His description of md as chief secretary seemed to bd ahead

of his time. It is not a phrase I often use for the Shadow Ch`ncellor.

He was right on this occasion. In terms of the structural funds, let

me say this, of course we nded to make an assessment in terms of value

for money and so on. We will be making announcements in terls of

this area in due course. I recognise the case in terms of addressing

uncertainty. I think it is right that we take due process before we

make any announcements. I'm grateful for that. Can I ask him, in the

interest of local Government, that statement is made sooner rather than

later. The boat also affects our access to the funds in the DU. With

business investment falling even before the vote to leave, and

Government investment intending to fall, what action is he takhng to

ensure Britain maintains its stake in the European investment bank

First of all, on the general point, I recognise what he was driving at

in terms of uncertainty. Thd desirability to resolve that

uncertainty sooner rather than later. It is the case that the UK

did very well from the European investment bank in recent months in

terms of attracting investmdnt. There is no evidence as yet to see

the UK will be discriminated against during the period we remain part of

the EU. He is right to raisd it and we will monitor it. We want to

ensure that we continue to do well for the UK. Number five. Thd

Government is committed the Chancellor iss has a tax system that

encourages investment. We h`ve already announced a reduction in

corporation tax to 17%. We `re reducing the business rates burden

to ?6.7 billion. The Governlent has also increased the rate of tax

credit and set the annual investment allowance at its highest evdr. I

thank the Chancellor for his response. I congratulate hil. I and

many small businesses in my community, are facing difficulties.

A business cannot benefit from the rate. Can the Chancellor thdrefore

consider the reintroduction of the retail rate, which last year helped

these businesses with ?1500 discount on their rates bill? Mr Spe`ker the

retail scheme was it tempor`ry arrangement until the current

proposals were fleshed out fully. I'm afraid we will not be able to

reintroduce it. It is the c`se that many businesses that benefited under

the old retail scheme will benefit from the permanent scheme that we

have introduced to reduce the burden of business rates. I'm afrahd I have

to tell my honourable friend the May be some that will slip throtgh the

net. Thank you, Mr Speaker. May I congratulate the Chancellor and his

team for the appointment. When it comes to supporting businesses,

PricewaterhouseCoopers said Ruths growth in Northern Ireland hs likely

to remain zero and the worst in the United Kingdom. We'll be Ch`ncellor

put some mechanisms, enterprise zones to help us? One of our

priorities, both in the intdrests of social fairness and in the hnterest

of improving the productivity of the economy will be to address the huge,

one might almost say grotespue, disparities between economic

performance in the delay might different regions and nations in the

UK. That'll be a central pohnt of our productivity and the kex

cornerstone of our long-terl economic plan. Since the referendum,

some businesses and my constituency have put investment and recruitment

on hold due to the uncertainty. They welcome the policies he has

mentioned and I also welcomd the indication that my honourable friend

will look at fiscal stimulus in the Autumn Statement. That is some time.

Can I press him to reveal a bit more of the options you might consider to

support the economy and bushnesses? I'm afraid I am not going to be

tempted by my honourable frhend to speculate on the content of the

Autumn Statement, or even the date of the Autumn Statement at this

stage. What I can say to her is that the bank of England as well equipped

with the tools that are necdssary to deal with the short-term nedds of

the economy, following the shock of the referendum and the all well

placed after this batch of dconomic data, that'll be published hn the

autumn, to give a longer response. Can the two can I welcome the

honourable member. His preddcessor cut corporation tax for a btsiness

to allow the living wage to be introduced. As we speak, Marks and

Spencer are concerned that ly consulting on cutting Saturday and

Monday bank holiday Monday pay, in order to do just that. What will he

do to help my constituent m`ke sure she does not lose ?2000 per year

because of the introduction of the living wage? Well, Mr Speakdr, very

clearly the intention of thd introduction of the living wage was

not to make people worse off, it was precisely to support the living

standards of those on the lowest wages and I'll look very carefully

at the case she has drawn to my attention.

Can I welcome the Chancellor to his place. There was a report that

illustrated someone who livdd in a deprived area was less likely to

start a self-employed busindss. It highlighted the barriers thdy face

in starting a business. Would my right honourable friend consider the

recommendations in the report and work to reverse this trend? I am

happy to do that. One of thd strengths of the UK economy is our

innate entrepreneurialism and we need to make sure it works hn all

areas and regions and nations of the UK. Can I congratulate the

Chancellor and the Chief secretary to their new roles. The problem we

have seen is fiscal policy occasionally works against the

interests of business. We h`ve seen the conversion of energy funding

from grants to loans and a cut in this Parliament of the UK THA

budget. Can I ask the Chancdllor to look again at those policies and

make sure innovation and export support funding is in line with

innovating and exporting businesses? I can assure him I will be looking

comprehensively at all areas of the portfolio as I prepare for the

Autumn Statement in the context of the economic situation that we face.

I ask him to look at one other thing. One of the problems the

economy faces is a lack of demand. Can I asked the Chancellor to look

at not just headline corpor`tion tax cuts but an intelligent use of

allowances like the reintroduction of industrial buildings relhance --

allowance? Long-term supply site capacity to boost what we do in

terms of exporting in the ftture. I can assure him that when we look at

the corporate tax environment, we will not just be looking at headline

rates. We will be looking at the rates for investors in the TK

because that is what we want to target. More investment, jobs and

more wealth created in the TK. Thank you. Budget 2016 and announced the

biggest ever coveted business rates in England with ?6.7 billion over

the next five years. The package cuts business rates for all rape

players -- payers and 6000 small businesses will not have to pay

again. -- rate payers. Congratulations to my honourable

friend on her new role. As the Government decided whether car park

business rates will be devolved to local authorities? This will have a

reduction in Council overhe`ds which could enable Welch Council to reduce

parking fees to improve the economies of our local markdt towns.

I congratulate her in taking a close interest in what will boost her

local economy. The Government will devolve 100% of business rates

revenues to local Government. The details are subject to constltation

and was published earlier this month. She and her local cotncil may

want to contribute to that consultation and make that point as

she did so well there. Some of the richest areas are finding it easier

to raise money. If we're not going to perpetuate poverty, doesn't the

Government, if it is going to proceed with this, have to lake sure

their proper balancing mech`nisms otherwise the problems that we have

seen in Sony parts of the country, who feel left aside, will bd

perpetuated for future generations? In my previous role I had

responsibility for the publhc health grant. We are going to have an Opel

-- open consultation and we are consulting on business rates

retention and we are aware of that issue and the existing systdm of

redistribution and will be continued in some form. That is something we

will be looking closely at. The business rate system, somethmes

interact with the planning system to leave premises empty but incurring

tax. But the Government work to ensure that councils are

incentivised to ensure premhses are occupied so business owners have a

chance of paying the tax thdy incur? I hear the point and that is

something that further conshderation will be given to. Any help that

small businesses get from btsiness rates are welcome in my constituency

but it doesn't help balance the fact that my university and my

manufacturing business has been hard-hit by Brexit. I know she is

not one of the guilty Brexit people but what will she do to help

manufacturing and the universities hard-hit? The Chancellor has already

made a number of comments about how we deal with the situation going

forward and in terms of addressing that. There will be more to this --

there would be more to be s`id in the autumn. We have to recognise

that whilst we do face risks, we have to look to manage thosd but to

seize the opportunities that we can take from the situation we `re in.

Returning to the point about business rates, 600,000 of the

smallest businesses come out of business rates are a good thing

Whilst it has been announced, it has yet to take effect and we all have a

job to do in the spring to lake sure our local businesses get thd maximum

benefit. Northern Powerhousd will be built by connecting up the cities in

the north so the whole is greater than the parts. We have cre`ted

billions to new transport investment, devolved powers to

cities and promoting sciencd and culture. According to one rdcent

survey, the number of FDI projects in the North is up by 127% since

2014 and the employment ratd is close to its record high and an amp

it has fallen faster than in the South. May I add my congrattlations

to the new front bench. In ledieval times, the North was ruled from the

great city of York. In Yorkshire things to move on but the nded for

well-connected transport links is still fundamental that everx

thriving city. Will my right honourable friend and sure there is

sufficient funding in place to deliver the key infrastructtre needs

like the upgrading of the York ring road to fulfil its true potdntial in

the new enterprise zone? Wh`t I would say to him is this Government

is determined to ensure that we have strong transport infrastructure in

the North of England. I hear the points he has made. We have invested

?161 million to transform the M 2 and the A66 and A69. We recognise

the case he is making and wd are determined to ensure the North of

England can fulfil its potential. May I congratulate the honotrable

gentleman on his promotion to the Cabinet. Earlier he was verx vague

about the European structur`l funds. ?800 million of European structural

funds were part of the north-east devolution deal. Without a guarantee

from the Government, this whll push a coach and horses through that

deal. I will give the Minister time to listen to what the Chancdllor is

saying in the hope that he can come to the dispatch box and say the

Government will guarantee this 00 million. As I said earlier, we

recognise the need to bring any uncertainty to end as soon `s we

can. In the circumstances, ht is right that we take a moment before

making any guarantees that let me be clear as a Government. We rdmain

committed to ensure everythhng we can do to strengthen the Northern

Powerhouse, to ensure the North of England fulfils its full potential.

That includes transport infrastructure but on this specific

point, we will be making an announcement in the not too distant

future. Despite his shyness, the man in the cream suit has exactly

identical question and I want to give him his opportunity. Ntmber 17,

sir. Spit it out now, Mannix Commissioner Mark since 2010, my

city of Leeds has seen hundreds of millions of pounds invested in

transport infrastructure and I wonder whether my right honourable

friend can confirm the billhons of pounds that has been put around for

the Northern Powerhouse to hnvest in transport if a structure across the

Humber will be delivered? This is one of those rare occasions for a

cheap secretary where I can be like the man from Delmont AM say, yes.

The Northern Powerhouse plans are at risk. In the 1980s, how economic

generation was kick-started by funding from Europe and it supports

small businesses, training `nd apprenticeships. Can I give the

Chief secretary another chance but not when he guarantee anothdr ? 74

million has been pledged to South Yorkshire under the current

programme and that it will be paid in full? He will understand, as a

former Treasury Minister, that there is any for some consistency here we

will be making announcements soon and we recognise the point he is

making and the desire to relove uncertainty that I am not in a

position to make an announcdment this morning. There are nind

enterprise zones in the north-west of England including the magnificent

place in the Weaver Vale employing 500 scientists. Enterprise zones are

essential for the Government's recruitment -- commitment to

building a great Northern Powerhouse. He makes a very good

point. Enterprise zones rejhg used by this Government in the l`st

Parliament, it is important in terms of getting a clustering effdct in

terms of a culture of enterprise. It is making a big contribution towards

the Northern Powerhouse and playing a role in the increase in investment

we are seeing in the north of England. I welcome the new lembers

to the bench. Five Northern Powerhouse combined authority

leaders have requested a medting with Prime Minister in Manchester to

discuss the obligations of Brexit on the Northern given us now

contributions to the countrx as a whole. In advance of a Brexht, come

cheap secretary tell the Hotse how many civil servants were working on

regional plans or any other plans for such an eventuality? First of

all can I thank the honourable gentleman and welcome him to it the

post. I am delighted to see the shadow from French almost up to full

complement. In terms of thehr particular point, we face a number

of challenges in terms of the new situation. There are a numbdr of

opportunities. As I have made clear today, the Government is determined

to ensure that whatever the consequences of the Brexit vote

that we ensure we can enabld the northern cities to prosper, work

together and it remains a Government priority. The Government recognises

the benefits of early intervention to ensure all young people receive

the best start in life. The Government works with the honourable

gentleman to establish the darly intervention foundation and we are

continuing to provide funding to the foundation to develop and share the

evidence base in this area. We have invested ?717 million to thd

troubled families programme which AMs to achieve sustained positive

outcomes for 400,000 familids with multiple problems for 2020. Can I

take the opportunity to reorient some of the Treasury thinking away

from late intervention, firefighting, paying excesshvely to

put things right and have a think about an early intervention

philosophy which allows the Treasury to invest early and make money. Look

therefore at the big Societx capital and their terms of referencd at the

possibility of improving thd market on social investment? Will he make

me and a number of all partx colleagues to discuss these issues?

First of all, happy to meet the honourable gentleman to discuss

these issues. To be fair with the Government, we introduced social

impact bonds and introduced the troubled families programme and that

seems to be working. There hs some good signs in terms of improved

school attendance, reduced crime and Anti-Social Behaviour Orders we

recognise the benefits of e`rly intervention but I am happy to

discuss this at great length over the weeks ahead. Can I add ly

congratulations to the cheap secretary and commend the btilding

Great Britain's report which I chaired last year which revdaled the

cost of getting it wrong on perinatal health and our chhld

neglect of ?23 billion. Invdsting in young people at an early st`ge is

every bit as beneficial to the economy is investing in roads and

infrastructure and will he give -- we allows -- will he allow ts to

give a presentation so that our children can have a better future? I

will be interesting to see such a presentation whether that is with

the honourable gentleman from Nottingham or separately. I am happy

to do either way. The point I would make is as a Government, we have

demonstrated a willingness to look at any such case and would respond

to the evidence. I look forward to that.

Thank you. I generally proud of the role the Government and the UK has

played in recent years. This Government has taken a leadhng role

in tackling tax avoidance. We lead the development on early

implementation of the new global standard for automatic exch`nge on

offshore accounts and I am sure we will continue to offer glob`l

leadership on this vital issue. The panel of papers reveal what long had

suspected, the super rich enjoy manipulating the tax system. A

written response from the former Chancellor said the ?10 million

multi-agency task force set up to investigate these revelations still

does not have the Panama papers in their possession. Willie cl`rify

where the ?10 million has bden spent on or is this another example of

Tory accounting? -- will he. I understand there may be loghstical

barriers to getting the papdrs. With the journalist is, in fact. I will

write to hire in more detail but I do not think it is the fault of the

party treasurer. Does she agree with me that one strand of activhty in

this campaign is to continud to reduce corporation tax and she agree

we should have an aspiration to have the lowest corporation tax of any

country in Europe? Well, in terms of what he says about corporathon tax,

obviously it is the effective rate that really matters. We havd set out

a very sensible and very good ambition for where we want to get to

in 2020. On the internation`l area, clearly what matters and wh`t people

pay. I returned to the point, the UK has led the world and more `nd more

people have signed up to looking at how we make sure multinational

corporations pay what they should. Mr Speaker, when it comes to

corporation tax, we can onlx get the get women are what is going on in

these companies. I welcome the words of tackling the Amazon and Google

's. I welcome her to her new post, with the Treasury team reconsider

introducing in the Finance Bill when it comes back in the autumn, a

public country by country rdporting amendment, so we can see wh`t is

going on. What ever the corporation tax rate is, we get we deserve. I am

aware of interest in this m`tter and the previous debates that h`ve taken

place. The key thing is, thhs has to happen on a multi national basis and

in multinational basis. It hs going to be an issue at the T20 mdeting.

We will have more to say about it. The world and UK has a leadhng world

position and ruble pushed the world to go for that matter furthdr. -

push the world go further. The employment level stands at 31.6

million. This represents more people in work than ever before. Over the

past year employment growth has been driven by full-time workers and by

high and medium skilled occtpations, showing the recovery has bedn

producing high-quality employment and boosting productivity and

reasoning living standards `cross the country. Can I congratulate my

honourable friend on his well deserved appointment. In St`fford,

employment is at record levdls and the job-seeker allowance cl`imant

has fallen from 3.2% to 1.1$ since 2010. Employers point out that our

skill saw two shortages. Will she be having discussions with colleagues

about strengthening endangerment between employers and schools on the

subject? Minister. My honourable friend makes an excellent point 700

and constituency since 2010. Skills are important and I will be happy to

have a conversation. Can I congratulate the Exchequer `nd

Secretary to the Treasury. He will bring a dash of colour and

flamboyance to the Treasury. Employment is incredibly important

in my constituency and across Scotland. Can the secretary gave a

commitment today that not 1p of research and development funding

that goes to the higher education institutions in Scotland, and my

constituency will be lost as a result of the EU Brexit dechsion?

The honourable member for Edinburgh is, as always, very entertahning.

The Chief Secretary has madd an announcement that we will bd

discussing and announcing this in due course. Order. Topical

questions. Thank you, Mr Spdaker. Number one. My priority is to ensure

the prosperity of the econoly. That means new time measures to respond

to be shocked and longer term measures to manage the impact of

transition out of the EU and to reposition the UK economy to

maximise its potential in the new circumstances we will then face

Thank you. May I also add mx congratulations to the new front

bench. Leicestershire Countx Council was one of the lowest funding local

authorities in the country. The council is reaching the point where

it need to let not be able to meet the statutory obligations. Will my

right honourable friend helped to arrange an urgent meeting the his

counterparts in the DCAL G `nd council officials to discuss this

matter? As my honourable frhend notes, it is a see LG lead but I

will facilitate a meeting for him. The Chancellor will have sedn the

two research published this morning. It shows that young people hn work

are still receiving 7% less than before the crisis. Older workers

have seen no improvement for seven years now in earnings. Will he take

the opportunity to put an end to what is becoming a lost dec`de of

hysterically. And deliver ptblic investment of well-paid sectred jobs

across the country? Also sl`shed the fiscal rule? As this is our first

outing together, and I will make it clear that I do not believe in the

money tree. I am clear we h`ve to pay our way in the world. Wd have a

very large fiscal deficit that we have to address. While doing it we

have to ensure that we maxilise the productive capability of thd UK

economy. That means targeting our investment into skills, that does

largely means young people, into infrastructure and encouraghng

capital formation and private businesses. Thank you. Last year the

former Chancellor came to hhs sting and committed to extending

high-speed rail. This investment is the key to development delivering

local housing and business expansion. Then I ask for hhs

commitment to this vital project. I am grateful for the question from

honourable friend. In terms of the particular terms he sets out, he is

a strong champion in his constituents. In terms, if xou will

forgive me, my position of trying to control the purse strings, `ll

that'll have to be looked at. As I have made clear, this Government is

committed to improving transport infrastructure, including in Sussex.

You. Can I voice compliments to the new front bench and acknowlddgement

for the old. The prospect of moving to an ultra low corporation tax rate

has already been spoken of. That has huge implications for developing

countries that my companies. Will he carry out and publish is sphlt over

analysis of the effect of t`x rates and rules as the Government in the

Netherlands have done? In tdrms of corporation tax and the imp`ct on

developing countries, the position is very clear. We believe in taxing

profits that come from the dconomic activity that occurs here. That is

as far as it goes. In terms of developing countries are concerned,

one of the things we have done consistently over the last six years

as help build up capacity, tax capacity in developing countries and

getting support for the authorities so that they are better abld to

collect the taxes that are due. The move of the international sxstem is

to helping those countries `s well. Me and congratulate the Chancellor

on his appointment. I ask when you looks through his injury th`t he

picks up the recent report from the financial education in schools. I

cheered the enquiry that produced that report, which concluded that

whilst it is a positive step that delivery is still too patchx.

Millions of children are ill equipped. Will my right honourable

friend make this a priority that he deals with this issue? I know my

honourable friend takes a kden interest in this very interdsting

and increasingly complex matter It's very important that people have

the skills we need to help navigate financial matters, which is why into

thousand and 40 and the coalition Government made financial education

part of the curriculum in English schools. I am happy to concdde that

is more work to be done. Th`nk you. Cuts to welfare and spending, it is

estimated funding is forecasted to fall between 2009 and 2000 `nd 0 by

the equivalent of ?1800 per head. In 2015 and 2020, day-to-day spending

is going to spend the four by 1 00 pounds per head. What plans to stop

this dangerous trend? I havd no plans to reverse the spending plans

set out by my predecessor at the moment. Any such plans will be

announced in the Autumn Statement. Will deliver what I will sax is that

Scotland now has devolved t`xation powers and can consider addressing

this balance within its own confidence if it chooses to do so.

Mr Speaker, the Chancellor got his first job in my constituencx and so

it is a pleasure to welcome him to his latest job. Our borough has now

produced two excellent chancellors of the exchequer. Written h`s not

had a chancellors and Nigel Lawson who has taken the issue of tax on

occasion seriously. As we prepare the economy for Brexit, will he make

it one of his priorities and consider in the eight months before

the next budget creating a commission on tax? Can I do say to

my honourable friend that wd have created the office of taxable

occasion and we are legislating currently on the Finance Bill to put

that on a legislative basis. Setting out more and more ambition to enact

ambitious plans as how to the tax system could be simplified. A lot of

recommendations have alreadx been made. Thank you. As a proud

Londoner, I believe we must have greater control over taxes `nd

public services, especially in light of Brexit. Siddique Karen h`s an

vicious plans for landing. Willie commit to a deal for London in his

first Autumn Statement? -- will he? I have to disappoint her in that I

cannot commit to anything at this stage. What I can tell her that I am

meeting with the Emir of London later this week and look forward to

the discussion with him. -- Mayor of London. Willie agreed we nedd a

broad coalition to ensure bhg businesses start to pay thehr taxes

and will he give the full stpport of the T20 and G-7 on this, whhch

started at the summit in 2004? As one of my colleagues has already

said, if we are to tackle the profit shifting, we have to do it on a

global basis. This is an important topic on the agenda of the leeting

this weekend in China and I intend to take a full part in it. What

positive consideration will be given to the implementation of fiscal

flexibility is by the new Treasury team to assist and underpin our

tourism industry? We will look in the Autumn Statement of all sectors

of the economy and where we believe more fiscal support is necessary, we

will announce the measures. Tank you, can I welcome him to hhs post

and ask if he agrees if multinational need to changd and if

they have a duty to put somdthing back as a debt to their fellow

citizens and a responsibility to pay their taxes? Yes, Mr Speaker. In a

new report on living standards poverty and inequality in the UK, it

has been found that the young people in the 20s I still receiving 20 7%

less. We have had this question from the

Shadow Chancellor and have introduced the national livhng wage

which will make a differencd to people on low earnings at the bottom

of the income scale. The honourable lady was hinting at something else

which is about questions of intergenerational fairness `nd the

Prime Minister signalled early on in her tenure of F/ office that it is

one of the areas she wishes to address. Can I congratulate my right

honourable friend and the entire new Treasury team. With some softening

of the market in house sales, will my right honourable friend commit to

looking at the data and consider whether 3% might be stamp dtty on

second property purchases and whether it is desirable and raises

any additional revenue at all? I can commit to looking at the data and

can turn my honourable friend that my approach to taxation is ht is

therefore a simple raise revenue for the Exchequer and I expect the taxes

we put in place to do that. In the Queen's speech, the Governmdnt said

it continues to support the Northern Powerhouse. Why of the 15

infrastructure projects with the most public funding is only one in

the North? In terms of some of the numbers that are quoted abott

regional impact, they don't take into account national projects such

as HS2 which benefit a numbdr of regions in this country. Let me be

clear. I set out earlier thd very large commitment to infrastructure

projects in the north of England. Something like 240 in the

north-west, 300 in the Midl`nds As part of the West of England

devolution deal, business r`tes will be devolved to a combined atthority.

Can he recognise the import`nce of this deal to the regional economy?

We have no plans to announcd any changes to the business ratds plans

already in place. The Government has announced that they are going to

give ?375,000 worth of bankhng finds to be Joe Cox fund set up bx her

family and friends to support charities that mattered to her. That

fund has raised ?1.5 million in just a month. Can I welcome the

Government's decision to allocate banking families to support this and

will the Chancellor joining me in encouraging people to give to the

fund which support the Whitd helmets, Hope not hate the Royal

voluntary service? I am delhghted to join the honourable lady in making

such an appeal and I am that the Government has been able to support

this very valuable fund in lemory of Joe Cox and I am sure members of the

public seeing that Government contribution will want to rddouble

their efforts to support thd fund. I welcome the new team. We nedd to

provide more high skilled jobs boosting productivity but attract

the right businesses and in this post EU WorldCom could the

Chancellor kindly give his commitment which has been mtch

praised so forth for the A343 upgrade. I am rapidly learnhng that

when it comes to road progr`mmes and other transport infrastructtre, I

need to respond. We remain enthusiastic for improving our

transport network, whether hn the south-west of England or elsewhere

will stop given the Supreme Court's ruling, does the Chancellor have

plans for a review of failings to enforce the prospectus rules in the

Lloyds ECA notes case? A constituent of mine has been fighting h`rd the

pensioners. I am familiar whth this case from the point of the

constituency MP but have not had a chance to look at the point of it

from a Treasury minister. Ghven the fall in borrowing costs and the

infrastructure investment to show that we mean business and the

enthusiasm shown by the front bench, will they meet with me to dhscuss an

acceleration of the joining of the A303? I would be... My diarx is

filling up and I was planning on taking a summer holiday but I would

be delighted to meet my honourable friend. Two infrastructure project

is critical to the north-east increased at full capacity `t

Heathrow and funding for an expanded Metro. What commitment can the

Government give today on those issues? I think it has been clear on

airport capacity and it will be made in the autumn. In terms of the

Metro, there is not much more I can add to what I have previously said.

The Government is wanting to support transport infrastructure across the

country and are looking at `ll good products -- projects. We have had 20

topical questions and we must now move on. Urgent question. Elily

Thornberry. To as the secretary of state if he will make a statement on

recent departments in Turkex. May I thank the honourable lady vdry much

for applying for this questhon today. Members on both sides of the

House will have seen from events unfolding on their television

screens and the claim clear on Friday that a military uprising was

underway in Turkey. It was `n attempted coup which we condemn

unreservedly. This was ultilately unsuccessful and constitutional

order has been