:00:00. > :00:00.First, we have questions to the Chancellor of the Exchequer, Mick
:00:00. > :00:18.Hammond, and his team. Questions to Mr Chancellor of the
:00:19. > :00:23.Exchequer. Question number one, Mr Speaker. We have regular discussions
:00:24. > :00:29.with Cabinet colleagues as to how the Government can contribute to
:00:30. > :00:32.greater productivity across Scotland and the UK. The Government is
:00:33. > :00:40.currently discussing city deals for Edinburgh and Stirling and is
:00:41. > :00:46.looking forward to receiving proposals for the Tay cities. With
:00:47. > :00:49.the honourable gentleman agree with me that the Ayrshire growth deal
:00:50. > :00:55.will generate investment and create the economic conditions to achieve a
:00:56. > :01:01.step change throughout Ayrshire, an area of huge potential? Will he
:01:02. > :01:04.commit today to actively and constructively, working with the
:01:05. > :01:08.four Ayrshire MPs, the local authorities and the Scottish
:01:09. > :01:14.Government, support this deal to the benefit of the whole county of
:01:15. > :01:18.Ayrshire? Well, up to this point, growth deals have been city growth
:01:19. > :01:22.deals and by definition focused on cities. And we haven't made a lot of
:01:23. > :01:28.progress, as I said earlier, in terms of all the Scottish cities. Of
:01:29. > :01:32.course, it is open to the Scottish Government to take forward projects
:01:33. > :01:41.to enable growth in the County of Ayrshire if it wishes to do so. The
:01:42. > :01:46.Financial Secretary to the Treasury. With your permission, Mr Speaker,
:01:47. > :01:49.could I group this question with question 12? The Government Beckett
:01:50. > :01:52.knows is absolutely the key role that small businesses play in the
:01:53. > :01:56.economy. That's why for example in the Autumn Statement, we have
:01:57. > :02:00.allocated ?400 million for the British business bank to help firms
:02:01. > :02:04.access finance. And there are other steps we have taken, including for
:02:05. > :02:10.example introducing the enterprise investment scheme. I think the
:02:11. > :02:15.minister for that response. Does she agree with me that independent
:02:16. > :02:20.retail stores such as ones in my constituency add greatly to the
:02:21. > :02:22.character and vitality of our towns in high streets and the Government
:02:23. > :02:27.should do what they can to support them? As a former co-chair of the
:02:28. > :02:32.all-party retail group, I could not agree with him more. Independent
:02:33. > :02:37.retailers and retail generally is a vital sector, and he is right that
:02:38. > :02:41.we want to support them on our high streets. From April, 600,000 of the
:02:42. > :02:44.smallest businesses will not have to pay business rates again. That is
:02:45. > :02:48.occupying more than a third of all properties. This is part of the
:02:49. > :02:52.business rates package which will kick in over the next few years. I
:02:53. > :02:57.hope you would agree that that is a really helpful bit of support for
:02:58. > :03:00.some key local businesses. I recently attended my local Chamber
:03:01. > :03:05.of Commerce breakfast meeting in Seaford and met with many small
:03:06. > :03:09.businesses who are pleased the economy is doing so well and being
:03:10. > :03:14.so expertly led by this government. However, they do have some concerns
:03:15. > :03:17.around the introduction of quarterly tax returns and the impact that this
:03:18. > :03:21.will have on costs on small businesses. They have suggested
:03:22. > :03:27.maybe a threshold be introduced for the smallest businesses - would the
:03:28. > :03:31.minister consider this? I thank my honourable friend for that question.
:03:32. > :03:34.I also have a good relationship with my local Chamber of Commerce. Of
:03:35. > :03:38.course we are not introducing quarterly tax refunds, but she is
:03:39. > :03:44.referring to the tax digital project. And we do understand that
:03:45. > :03:46.whilst the select committee recently said that the long-term future can
:03:47. > :03:50.and probably should be digital, we do understand that we need to look
:03:51. > :03:54.carefully at the consultation responses we've had, and at the
:03:55. > :03:58.concerns from small businesses. We have already exempted a number of
:03:59. > :04:02.small businesses from the threshold, but we are looking carefully at the
:04:03. > :04:05.consultation responses and at the select committee's report. We do not
:04:06. > :04:09.recognise the Federation of Small Businesses' figure on the costs, and
:04:10. > :04:13.we have not seen the assumptions which underpin it. That would be
:04:14. > :04:18.very helpful if I am to address those concerns. Small businesses in
:04:19. > :04:23.Doncaster are facing a very worrying skills shortage. So, will the
:04:24. > :04:30.minister support those businesses by impressing on her colleagues in the
:04:31. > :04:35.DfEE the need for a speedy decision on Doncaster's university technical
:04:36. > :04:40.college and give the go-ahead for the money? Will she have a word,
:04:41. > :04:42.please? I am of course very happy to raise the issue with the right
:04:43. > :04:46.honourable lady mentions with colleagues. More broadly, the
:04:47. > :04:51.Government absolutely is supportive of the skills agenda, and we have
:04:52. > :04:54.made this a real priority. If we are going to close the productivity gap
:04:55. > :04:58.in this country, then clearly investing in skills and high quality
:04:59. > :05:04.apprenticeships is key to it and we are taking a lot of action in that
:05:05. > :05:06.regard. One useful thing which the Treasury could enforce more
:05:07. > :05:11.manufacturers in my constituency is to announce an objective to stay in
:05:12. > :05:17.the customs union. Up to now, the Treasury has been a beacon in saying
:05:18. > :05:23.that they want decisions based on analysis, not rhetoric and ideology.
:05:24. > :05:28.Can she assure the House that that is still under consideration? Well,
:05:29. > :05:34.again, these are issues we are looking at very, very carefully. The
:05:35. > :05:37.Chancellor has had a series of round table meetings with different
:05:38. > :05:40.sectors of industry in recent months, as have all of us as
:05:41. > :05:44.ministers. We are looking very carefully at some of those detailed
:05:45. > :05:48.issues. Much more will be said on this in the House I'm sure data
:05:49. > :05:54.today. For we are quite clear that we want to understand issues faced
:05:55. > :05:58.by businesses, so that we can move forward to make our future outside
:05:59. > :06:02.the European Union and resolve some of those practical issues that
:06:03. > :06:05.businesses face in a way way which helps the British economy. Access to
:06:06. > :06:11.capital is vital for small businesses. A refusal from a big and
:06:12. > :06:15.should not be the end of the line. Will the minister continue to
:06:16. > :06:21.support the bank referral scheme as an alternative source of finance for
:06:22. > :06:24.businesses? Absolutely we will. The Government's finance referral policy
:06:25. > :06:27.helps SMEs whose finance applications have been declined by
:06:28. > :06:30.their bank and helps them to explore alternative options. It requires the
:06:31. > :06:36.major banks to refer them if they are rejected for finance. And there
:06:37. > :06:39.are a range of other things that we can do to support the very good
:06:40. > :06:43.point which my honourable friend makes. I would encourage all
:06:44. > :06:47.members, if they have SMEs in their area, who have had finance
:06:48. > :06:50.applications rejected, to refer them to some of these schemes, because
:06:51. > :06:57.they are making a difference. Many of the small businesses in my area
:06:58. > :07:00.operate in the tourism sector. Given the Chancellor's reported comments
:07:01. > :07:04.at the weekend, will the Government now look again at the opportunities
:07:05. > :07:10.which could be presented by the tourism industry's proposals for a
:07:11. > :07:17.lower rate of VAT on that sector? Well, Mr Speaker, the House will be
:07:18. > :07:20.unsurprised to learn that the Treasury is having a number of
:07:21. > :07:22.suggestions about what might happen to VAT in some future new
:07:23. > :07:27.arrangements, when we are not members of the EU any longer. And
:07:28. > :07:31.I'm aware of the representations made by the tourism industry. Indeed
:07:32. > :07:34.I meeting with the Northern Ireland select committee tomorrow, and I
:07:35. > :07:39.know this is likely to be one of the issues on their mind. But we are
:07:40. > :07:48.still of the EU, and all of our legal obligations etc remain whilst
:07:49. > :07:51.we are. Thank you, Mr Speaker. As announced at the Autumn Statement,
:07:52. > :07:56.the Government is significantly increasing investment in R, rising
:07:57. > :08:01.to an extra ?2 billion a year by 2021. This is the largest increase
:08:02. > :08:04.over a Parliament since 1979. It includes an industrial strategy
:08:05. > :08:09.challenge fund to support collaborations between businesses
:08:10. > :08:14.and science, to ensure the UK remains an attractive place for
:08:15. > :08:17.business to invest in innovative research, and that the next
:08:18. > :08:20.generation of discoveries are made, developed and produced in the United
:08:21. > :08:35.Kingdom. I thank the minister for his response. One of the largest
:08:36. > :08:38.employers in my constituency, Scientifica, is a winner of several
:08:39. > :08:41.awards. I will be in could be proud to join Scientifica when they open
:08:42. > :08:44.on the London Stock Exchange in March. Will he congratulate
:08:45. > :08:50.Scientifica along with me and will he pledge to support such
:08:51. > :08:53.businesses, which export the best of British scientific innovation and
:08:54. > :09:01.enterprise to the rest of the world? I'm delighted to join my honourable
:09:02. > :09:06.friend in congratulate Scientifica and I'm very happy to make that
:09:07. > :09:12.pledge. We committed to 107 to ?5 million investment to drive UK
:09:13. > :09:15.exports in this area. And we remain committed to making sure UK
:09:16. > :09:31.exporters receive world-class support. -- 107 to ?5 million. On
:09:32. > :09:34.Friday, I visited and innovative telephone technology company in
:09:35. > :09:38.Newcastle in the emerging payments sector. They are concerned that
:09:39. > :09:43.leaving the European single market, particularly the passport in rights,
:09:44. > :09:51.will diminish investment in their area. What reassurance will he give
:09:52. > :10:01.them? As the honourable member will be aware, the Prime Minister has
:10:02. > :10:07.just begun making a speech on this matter. And my right honourable
:10:08. > :10:10.friend, the Secretary of State for the department for exiting the
:10:11. > :10:13.European Union, will be making a statement to the House later. The UK
:10:14. > :10:19.is in a very strong position in terms of Finn 1ft it is a priority
:10:20. > :10:30.that we ensure that this is a successful sector.
:10:31. > :10:37.We led a delegation to India, with a focus on this sector, among other
:10:38. > :10:41.things, with the aim of promoting British businesses. We will continue
:10:42. > :10:45.ensure that the UK remains a strong base for that Fin Tech sector. Will
:10:46. > :10:51.he join with me in welcoming the fact that Cheltenham's GCHQ cyber
:10:52. > :10:58.accelerator is now up and running? Does he agree with me that this key
:10:59. > :11:05.project will bring jobs and opportunities for Gloucestershire?
:11:06. > :11:10.I welcome what my honourable friend has just said in terms of the
:11:11. > :11:13.opportunities. He highlights what is an important sector that has
:11:14. > :11:20.significant potential for the UK and indeed Gloucestershire. Thank you
:11:21. > :11:25.very much, Mr Speaker. Minister, what discussions have gone on with
:11:26. > :11:27.the Department of energy and industrial strategy in Northern
:11:28. > :11:31.Ireland to ensure that catapulted projects, just as much as the rest
:11:32. > :11:38.of the UK, will happen in Northern Ireland, to help our science and
:11:39. > :11:41.business development? I think what I can say to the honourable member is
:11:42. > :11:47.that we are determined to ensure that all of the UK is a good place
:11:48. > :11:52.for these businesses to develop, to encourage the development of
:11:53. > :11:57.technology and businesses that are based on that. The future of the
:11:58. > :12:02.United Kingdom has to be as a highly skilled, technologically advanced,
:12:03. > :12:06.outward looking country and we will engage with all the devolved
:12:07. > :12:10.administrations to further that aim. Jonathan Reynolds. On this side of
:12:11. > :12:13.the house, we believe encouraging investment is essential to making
:12:14. > :12:17.our economy more productive and we recognise this will be especially
:12:18. > :12:20.important post Brexit. But does the Treasury have a genuine indicator of
:12:21. > :12:24.how levels of foreign direct investment have been impacted after
:12:25. > :12:28.the referendum result, given it was recently reeled that the Department
:12:29. > :12:33.of International trade's figures incorrectly include decisions taken
:12:34. > :12:36.before the vote for Brexit? I think we are at an early stage in terms of
:12:37. > :12:40.the impact on foreign direct investment. In terms of the levels
:12:41. > :12:43.of business investment since the referendum, the numbers have
:12:44. > :12:49.actually held up pretty strongly, although as I said, it is early days
:12:50. > :12:52.and early data. But I have to say to the honourable gentleman, he says he
:12:53. > :12:55.welcomes business investment in this country. I think he should be
:12:56. > :12:58.listening to some of the things that his party leadership are saying,
:12:59. > :13:07.which will do nothing but drive business out of the United Kingdom.
:13:08. > :13:11.Chris Davies. Thank you Mr Speaker, question four. Chancellor of the
:13:12. > :13:14.Exchequer. Mr Speaker, the only way to reduce debt sustainable use to
:13:15. > :13:17.return a public finances about and our new fiscal rules commit us to
:13:18. > :13:21.doing that as soon as possible in the next Parliament. We have already
:13:22. > :13:25.reduced borrowing as a share of GDP by almost two thirds from the
:13:26. > :13:30.post-war peak that we inherited in 2010. We are forecast to borrow less
:13:31. > :13:36.than 1% of GDP by the end of this Parliament. I think the Chancellor
:13:37. > :13:40.for his answer. The government 's debt interest currently sit at
:13:41. > :13:45.around 5% of overall government spending, which is nearly 20% of our
:13:46. > :13:48.overall health budget. Would my right honourable friend consider
:13:49. > :13:50.paying down our debt more swiftly in order to relieve the strain debt
:13:51. > :13:57.interest is putting on the public finances? Well Mr Speaker, we are
:13:58. > :14:00.committed to reducing debt, while at the same time we prioritise
:14:01. > :14:03.investment in high-value infrastructure which will enhance
:14:04. > :14:07.our productivity. But of course, the only way we can pay down debt is to
:14:08. > :14:13.generate a current surplus. That means more tax or less spending. And
:14:14. > :14:17.I think the trajectory that I set out in the Autumn Statement is the
:14:18. > :14:22.right trajectory for this country in the circumstances it finds itself in
:14:23. > :14:26.at the moment and I say to my honourable friend that I intend to
:14:27. > :14:28.stick to it, and ensure we get the public finances back into balance as
:14:29. > :14:36.early as possible in the next Parliament. Alison McGovern. Thank
:14:37. > :14:41.you Mr Speaker, the total of our UK Government debt owned by foreign
:14:42. > :14:46.investors now some is more than half ?1 trillion for the first time ever.
:14:47. > :14:50.As the value of sterling tumbles, what assessment as the Chancellor
:14:51. > :14:55.made of the risk of the cost of servicing our debt rising
:14:56. > :15:00.unsustainably? Mr Speaker, the way it works is that the pricing of new
:15:01. > :15:07.government debt is determined by the auctions around new issuance.
:15:08. > :15:10.Clearly, new issue and is is bought at current extreme traits as far as
:15:11. > :15:15.foreign purchases of debt are concerned. -- current exchange
:15:16. > :15:19.rates. The honourable lady raises a good point and it is important that
:15:20. > :15:22.currency volatility rather than the actual level of the currency does
:15:23. > :15:28.introduce an additional dimension for foreign purchasers of UK
:15:29. > :15:32.Government debt. I have said many times that the process that we are
:15:33. > :15:35.now embarked on, of negotiating the exit from the European Union,
:15:36. > :15:40.creates some uncertainty. We have seen some of that uncertainty
:15:41. > :15:43.manifesting itself in the currency markets. The sooner we can get
:15:44. > :15:46.through that period of uncertainty, to have clarity about our future
:15:47. > :15:52.relationship with the European Union, the better that will be for
:15:53. > :15:55.markets, for business and for people in this country. The purpose of the
:15:56. > :16:05.speech the Prime Minister is making right now is to start to give some
:16:06. > :16:08.clarity. Question five, sir. Mr Speaker, we have committed to return
:16:09. > :16:11.the public finances to balance as soon as possible in the next
:16:12. > :16:17.Parliament and to reduce the structural deficit to below 2% of
:16:18. > :16:20.GDP by the end of this Parliament. As I have said already, I think it
:16:21. > :16:24.strikes the right balance between restoring the public finances to
:16:25. > :16:28.health and giving ourselves enough flexibility to allow us to support
:16:29. > :16:32.the economy in the short term if necessary, as we go through this
:16:33. > :16:36.period of greater uncertainty. We have also been able to commit an
:16:37. > :16:43.additional ?23 billion to a national productivity investment fund, to
:16:44. > :16:45.improve our economic productivity. Does my right honourable friend
:16:46. > :16:50.agree with me that the resilience of our economy would be best served by
:16:51. > :16:53.what the Prime Minister has said today, that Britain will be leaving
:16:54. > :17:02.the single market with no ifs and no buts? Well, Mr Speaker, for six
:17:03. > :17:07.months, we have kept open as many options as possible while we review
:17:08. > :17:12.the way forward in this negotiation with the European Union. We have
:17:13. > :17:16.heard very clearly the views and the political red lines expressed by
:17:17. > :17:19.other European leaders. We want to work with them and we want to
:17:20. > :17:25.recognise and respect their political red lines. That is why the
:17:26. > :17:32.Prime Minister is setting out right now the position that she is...
:17:33. > :17:37.Which is that we will go forward, understanding that we cannot be
:17:38. > :17:40.members of the single market because of the political red lines around
:17:41. > :17:47.the four freedoms that are the European leaders have said. -- other
:17:48. > :17:52.European leaders have said. But expressing an ambitious agenda for a
:17:53. > :17:54.comprehensive free trader dream -- free-trade agreement with the
:17:55. > :17:58.European Union which will allow our companies to trade in Europe and
:17:59. > :18:01.European company to trade in Britain, minimising disruption to
:18:02. > :18:06.existing business patterns and minimising disruption to
:18:07. > :18:10.pan-European supply chains. Thank you, Mr Speaker. EU banks use
:18:11. > :18:13.passport arrangements in order to operate in the UK, providing jobs
:18:14. > :18:18.and revenue to the Exchequer. Given what the Prime Minister is saying at
:18:19. > :18:25.this moment, those arrangements are clearly at risk. How hopeful is he
:18:26. > :18:30.that passporting will survive exiting the European Union? Well, as
:18:31. > :18:33.the right honourable gentleman says, EU banks use passporting to operate
:18:34. > :18:38.in the UK and vice versa. UK banks use passporting to operate in the
:18:39. > :18:44.European Union. I think what is important is that banks, both in the
:18:45. > :18:47.European Union are able to continue operating in the UK, and banks in
:18:48. > :18:53.the UK are able to continue operating in the European Union. He
:18:54. > :18:56.will know that City UK, the Leeds city pressure group on this issue,
:18:57. > :19:02.have taken the strategic decision last week -- lead city pressure
:19:03. > :19:05.group on this issue, took the strategic decision last week to stop
:19:06. > :19:08.focusing on passporting and what I would instead describe as an
:19:09. > :19:12.enhanced equivalence regime. The important thing is not the mechanism
:19:13. > :19:16.at the end result. That is what the Prime Minister will be setting out.
:19:17. > :19:19.The Treasury committee has challenged whether the OBR's
:19:20. > :19:22.sustainability reports, and the latest was published just an hour
:19:23. > :19:26.ago, are worth the effort, given they amount to 50 year forecasting.
:19:27. > :19:32.Their latest effort does not even try to take account of Brexit at
:19:33. > :19:36.all. The OBR are required to do this work by statute. Doesn't the
:19:37. > :19:40.Chancellor think it might be a good idea to revisit that commitment?
:19:41. > :19:43.Well, Mr Speaker, my honourable friend has a point in one sense in
:19:44. > :19:47.that economic forecasters themselves admit that even on a five-year
:19:48. > :19:51.forecast, there will be a high degree of uncertainty. --
:19:52. > :19:56.uncertainty about the accuracy of the forecast. So one of 50 year
:19:57. > :20:01.forecast, there will be a very high degree of uncertainty. -- on a 50
:20:02. > :20:05.year forecast. But we will see how the debate goes around this fiscal
:20:06. > :20:11.sustainability report that is published today. I suspect it will
:20:12. > :20:15.provide a very... For discussing some of the really very important
:20:16. > :20:19.strategic issues that we face as a nation, not in the sort of white
:20:20. > :20:25.heat of immediate political debate, but able to think much longer term
:20:26. > :20:29.over a 50 year period about where we go in the balance between public
:20:30. > :20:34.spending and taxation and how we support our vital public services.
:20:35. > :20:38.Thank you, Mr Speaker, given the Chancellor's comments on the single
:20:39. > :20:42.market, the financial services industry employs 40,000 people in
:20:43. > :20:44.Edinburgh alone. What impact does the Chancellor think the changes
:20:45. > :20:49.around the single market, leaving the single market will have on jobs
:20:50. > :20:55.in Scotland? Mr Speaker, my assessment is that by setting out,
:20:56. > :20:59.as the Prime Minister is doing right now, our agenda, and setting out
:21:00. > :21:03.clear objectives, we are meeting the first ask of our European partners,
:21:04. > :21:08.which is to be clear about what we want. We are recognising the
:21:09. > :21:12.political red lines that they have set out. We are saying that we will
:21:13. > :21:16.respect them. And I think that is the first step to being able to have
:21:17. > :21:21.a sensible engagement with our European Union partners, to come to
:21:22. > :21:25.an outcome which is positive for the UK and positive for the European
:21:26. > :21:27.Union. That of course must include the freedom for financial services
:21:28. > :21:35.firms to continue doing their business. I was going to call the
:21:36. > :21:40.honourable gentleman... Well done, get in there, man, Jim Cunningham.
:21:41. > :21:44.What provisions at the Chancellor of the Exchequer made after 2020 in
:21:45. > :21:52.relation to the universities in this country? Will he match pound for
:21:53. > :22:00.pound the lack of EU money? What we have said is that where EU funding
:22:01. > :22:02.is awarded projects involving universities, businesses, external
:22:03. > :22:09.research Institute, farmers, between now the point of our departure from
:22:10. > :22:13.the European Union, provided those awards meet with our value for money
:22:14. > :22:18.criteria and have the support of the UK or devolved administration
:22:19. > :22:21.responsible department, that the Treasury will underwrite those
:22:22. > :22:25.awards. We expect that in any settlement with the European Union,
:22:26. > :22:30.the commission will go on paying those awards after we have left the
:22:31. > :22:35.European Union. But in case they don't, we will stand behind them.
:22:36. > :22:37.Many small businesses in Kettering are supplied by other British firms
:22:38. > :22:43.and they sell their goods and services to British consumers. Yet
:22:44. > :22:47.all are affected by often unnecessary EU regulation. Will the
:22:48. > :22:51.Chancellor joint effort supposed Brexit to reduce this burden as
:22:52. > :22:56.quickly as possible? -- join efforts post Brexit? The remedy to the
:22:57. > :22:59.problem that the honourable gentleman sets out will of course
:23:00. > :23:08.lie in the hands of this Parliament once we repatriate it in the great
:23:09. > :23:13.repeal Bill. In the seven years to 2014, Scotland's trade with the EU
:23:14. > :23:18.rose by 20%. Twice the rate of growth in trade to the rest of the
:23:19. > :23:25.UK. And vital for a resilient economy. Today's hard Tory Brexit
:23:26. > :23:30.puts that at risk. But is this not also a kick in the teeth to many of
:23:31. > :23:41.those who voted Leave, believing there would be an EEA, Efta
:23:42. > :23:45.arrangement put in place to mitigate the damage done? I reject the
:23:46. > :23:48.gentleman's analysis. I think this is engaging constructively with the
:23:49. > :23:51.real world, recognising the political red lines of our European
:23:52. > :23:56.Union partners because if we don't recognise them, frankly we Anyon our
:23:57. > :23:59.heads against a brick wall. They have to recognise our political red
:24:00. > :24:02.lines and we have to recognise that and then we have to work together to
:24:03. > :24:05.find a pragmatic solution that works fall of the people of the UK within
:24:06. > :24:12.those red lines and that is what we doing. -- for all of the people. ...
:24:13. > :24:17.So long as trade with the rest of the world on the same time frame
:24:18. > :24:22.grew by 50%, driven by EU trade agreements. Given it takes an
:24:23. > :24:27.average of 28 months to conclude a single agreement, how many pragmatic
:24:28. > :24:31.decades is the Chancellor -- does the Chancellor believe it will take
:24:32. > :24:37.to put in place the trade agreements we need to mitigate the damage of
:24:38. > :24:40.the hard Tory Brexit? You know, Mr Speaker, I'm disappointed to hear
:24:41. > :24:44.the honourable gentleman resorting to the sound bite. He's normally
:24:45. > :24:49.better than that. Let me say this, the discussions I have had with
:24:50. > :24:52.third countries that currently have free trade agreement with the
:24:53. > :24:59.European Union suggest that there is a strong appetite for a quick and
:25:00. > :25:05.simple agreement with the UK so that as it leaves the European Union, we
:25:06. > :25:08.are able to immediately enter into a successor agreement with those
:25:09. > :25:14.countries like South Korea, for example, so we can continue trading
:25:15. > :25:17.with them on the same terms. Mr Speaker, at the weekend, the
:25:18. > :25:20.Chancellor told the German newspaper, notice not this house, Mr
:25:21. > :25:24.Speaker, that he prepared to turn this country into a tax haven. If
:25:25. > :25:29.that means competing with the likes of Ireland on the 12.5% corporation
:25:30. > :25:33.tax rate, on top of existing Tory tax cuts, it means according to the
:25:34. > :25:36.House of Commons library, giving away over ?100 billion to
:25:37. > :25:39.corporations over the next five years. That is the equivalent to
:25:40. > :25:45.almost 5p on the basic of income tax. How does the Chancellor ever
:25:46. > :25:49.propose to solve the funding crisis in the NHS and social care then,
:25:50. > :25:54.given that this morning, the OBR thinks the public finances are on an
:25:55. > :26:00.unsustainable path? Well, let's just take that question apart, if I may,
:26:01. > :26:04.Mr Speaker, two points. The OBR 50 year forecast this morning sets out
:26:05. > :26:07.a possible outcome, if the government takes no action. As I
:26:08. > :26:12.made very clear in the Autumn Statement, we are acutely aware that
:26:13. > :26:17.action will be required in order to return the public finances the
:26:18. > :26:23.balance. In terms of the interview that he referred to at the weekend,
:26:24. > :26:28.what I said very clearly, and I'm sorry if it didn't come across in
:26:29. > :26:31.the UK reporting, but he should read the original, what I said very
:26:32. > :26:36.clearly is that Britain wants to remain in the European mainstream
:26:37. > :26:41.with its economic and social model, but that can only happen if we get a
:26:42. > :26:45.sensible Brexit deal for continued access to the European market. If we
:26:46. > :26:49.don't, the people of this country are not going to simply lie down and
:26:50. > :26:53.accept that they will be poorer. We will do whatever it takes to
:26:54. > :27:00.maintain our competitiveness and to protect our standard of living.
:27:01. > :27:07.The threat is there, on the record, that this will be a tax haven,
:27:08. > :27:10.according to what he has said today. The Prime Minister is now saying
:27:11. > :27:15.that she is intent on drawing up the drawbridge, leaving the single
:27:16. > :27:18.market, and possibly, possibly, the customs union. We will be cutting
:27:19. > :27:21.ourselves off from one of the largest markets on the entire
:27:22. > :27:26.planet, threatening jobs and finances. This is not a clean
:27:27. > :27:29.Brexit, it is an extremely Messi Brexit, with the consequences we
:27:30. > :27:33.have already seen in terms of the rise in the rate of inflation. And
:27:34. > :27:37.with real living standards squeezed by this policy announcement so far,
:27:38. > :27:40.isn't it time, and I appeal to the Chancellor, he has the opportunity
:27:41. > :27:49.then to reconsider his cuts to in work benefits, and in the widget in
:27:50. > :27:52.March, withdraw them in full? No, Mr Speaker, what the Prime Minister is
:27:53. > :27:57.setting up to day use an ambitious agenda for a Britain engaged with
:27:58. > :28:00.the world and a Britain engaged with the European Union. What she is
:28:01. > :28:08.setting out is a broad-based offer for future collaboration in trade,
:28:09. > :28:11.in investment, in technical and scientific collaboration and many
:28:12. > :28:15.other areas. We want to remain engaged with the European Union, and
:28:16. > :28:21.I am confident that the approach the Prime Minister is setting up today
:28:22. > :28:28.will allow us successfully to negotiate a future relationship with
:28:29. > :28:34.the European Union. We need to speed up. Short replies, please at the
:28:35. > :28:40.Autumn Statement, the Government backed recommendations... This
:28:41. > :28:48.includes development funding for the expressway road scheme, and ?100
:28:49. > :28:56.million for the express line. The Government supports the delivery
:28:57. > :29:00.models. Thank you, Mr Speaker. How does my right honourable friend
:29:01. > :29:07.envisage this benefiting the economy in Northamptonshire? It is worth
:29:08. > :29:10.pointing out, in the terms of reference for the national
:29:11. > :29:13.commission's report, the Government noted that the area contained four
:29:14. > :29:18.of the UK's fastest-growing and most productive places, including Oxford,
:29:19. > :29:23.Milton Keynes and Northampton. Transport investment is key to
:29:24. > :29:31.maximising the growth potential in this area. We will invest in the
:29:32. > :29:33.east-west rail and expressway, which will connect the region better with
:29:34. > :29:37.itself and with the rest of the country. The commission will issue
:29:38. > :29:41.their final report later this year, including work on delivery options
:29:42. > :29:50.for housing and transport. We will carefully consider those
:29:51. > :29:55.recommendations. Mr Speaker, the government absolutely recognises the
:29:56. > :30:01.significant contribution to the UK economy which is made by the
:30:02. > :30:04.chemicals industry. And of course, the complex supply chains which
:30:05. > :30:08.exist between the UK and the EU. We heard the Chancellor's words just
:30:09. > :30:11.now about the importance we attach to getting the best portable market
:30:12. > :30:16.access, and the Prime Minister is obviously talking about that this
:30:17. > :30:19.morning. We are looking at a comprehensive range of analyses, to
:30:20. > :30:24.inform our position as we go into those negotiations. Clarity and
:30:25. > :30:34.certainty are one of the industry's big asks. The chemical industries
:30:35. > :30:38.Association Brexit manifesto shows how the UK as a location for future
:30:39. > :30:41.investment can be enhanced, whilst playing a leading part in addressing
:30:42. > :30:45.global and invite a mental challenges. Has the minister read
:30:46. > :30:49.the manifesto, and what is she doing to reassure the chemical industry
:30:50. > :30:54.that it's very specific needs are at the forefront of her mind as the
:30:55. > :30:57.Government develops its strategy? Rather than just need the manifesto,
:30:58. > :31:04.ministers have been meeting with the chemical industry. The department
:31:05. > :31:07.for exiting the EU met with the association on the 17th of November.
:31:08. > :31:17.I know that all of these issues were explored in some detail. While
:31:18. > :31:21.welcoming her typical constructive approach, does she recall the
:31:22. > :31:25.directive which destroyed much of the pharmaceutical industry in this
:31:26. > :31:32.country overnight, including Pfizer's in east Kent? As I recall,
:31:33. > :31:37.the original directive did have some negative effects, but I know that it
:31:38. > :31:41.was improved on in subsequent negotiations in terms of making
:31:42. > :31:52.improvements to make sure it did not have the same effect. Voters partly
:31:53. > :31:55.backed Leave on the basis of a ?350 million economic boost that our NHS
:31:56. > :32:00.is still waiting for. Where, therefore, is the democratic mandate
:32:01. > :32:04.for this Conservative version of hard Brexit, leaving the customs
:32:05. > :32:08.union and the single market which the Chancellor himself has admitted
:32:09. > :32:14.damages the economy and puts jobs in my Tooting constituency at risk?
:32:15. > :32:18.This was with particular reference to unemployment in the chemical
:32:19. > :32:25.industry! I'm sure she meant to add that into her question! Mr Speaker,
:32:26. > :32:29.as colleagues across the House recognise getting the best deal
:32:30. > :32:44.Britain means getting the best deal for all of our main sectors.
:32:45. > :32:49.Does my honourable friend agree that when we leave the European Union,
:32:50. > :32:54.the fact that this Parliament will be free to redraw the Reach
:32:55. > :32:58.regulation is, which have long been identified as some of the most
:32:59. > :33:01.burdensome EU regulations, will be of enormous benefit to small and
:33:02. > :33:06.medium-sized businesses in the comical industry, particularly those
:33:07. > :33:13.who only operate within the UK? Well, he makes a very fair point. I
:33:14. > :33:17.do know that a discussion about the Reach regulations was on the agenda
:33:18. > :33:21.when my colleague, the Parliamentary undersecretary, met the chemical
:33:22. > :33:32.industry, and of course will form part of our discussions going
:33:33. > :33:38.forward. US banks operating in the UK are begin late it applied the
:33:39. > :33:44.Prudential Regulation Authority and the Financial Conduct Authority, the
:33:45. > :33:49.men facing -- booming facing regime applies to all banks operating in
:33:50. > :33:55.the UK. There is a threshold of ?25 billion. Does the minister agree
:33:56. > :34:00.with me that the likely rolling back of the act in the US, combined with
:34:01. > :34:03.the watering down of banking conduct reform, could result in either
:34:04. > :34:12.deleted American banks with high-risk lending patterns operating
:34:13. > :34:15.in the UK? It's worth saying that the UK and US financial sectors have
:34:16. > :34:19.significantly increased their resilience since the crisis, and the
:34:20. > :34:22.PRA has the powers it needs to begin late overseas firms operating in the
:34:23. > :34:28.UK, to ensure the stability of the UK financial system. What steps is
:34:29. > :34:34.the Government taking to ensure that banks meet the 2019 deadline for
:34:35. > :34:40.separating retail banking from risky investment banking activity? I can
:34:41. > :34:51.tell my honourable friend, well under way and we are keeping a close
:34:52. > :34:56.eye on it. Mr Speaker, households' financial situations have improved.
:34:57. > :35:06.Household debt has fallen from 160% of household income to 144%. UK
:35:07. > :35:08.households have undertaken the second largest amount of
:35:09. > :35:12.deleveraging in the G7. However, we should be alert to signs of a recent
:35:13. > :35:22.reduction in the level of household savings. The savings ratio is now,
:35:23. > :35:27.in Q3 2016, at 5.6%, down from 6.6% in Q3 2015. Notwithstanding that,
:35:28. > :35:36.household debt IS very high, and housing costs are a bit proportion
:35:37. > :35:38.of household expenditure. Has the Chancellor made an assessment of
:35:39. > :35:43.what the impact would be of an interest rate increase on growth in
:35:44. > :35:47.the industry, given that that growth history than by consumer spending?
:35:48. > :35:53.Yes, Mr Speaker. The Bank of England makes regular assessments of the
:35:54. > :35:56.impact of changes in interest rates. It is a central part of the
:35:57. > :36:01.modelling work that it does. He's absolutely right that one of the
:36:02. > :36:05.drivers of the relatively high household debt levels in this
:36:06. > :36:14.country is our housing model being a relatively high percentage of
:36:15. > :36:17.household... Mr Speaker, the Governor of the Bank of England
:36:18. > :36:20.identified that we for the most serious challenges to the economy
:36:21. > :36:24.today are the levels of household debt and of course the falling
:36:25. > :36:27.pound. Both of these are made worse by the widespread belief in the
:36:28. > :36:31.general public that interest rates are not going to go up. What more
:36:32. > :36:34.can the Government do, and the Governor of the Bank of England, to
:36:35. > :36:39.signal to the public that interest rates RISE and not fall in the near
:36:40. > :36:42.future? That's not a matter for the Government, because as my honourable
:36:43. > :36:46.friend knows very well, interest rates are a matter for the Monetary
:36:47. > :36:51.Policy Committee of the Bank of England. And it is up to the
:36:52. > :36:59.Governor and individual members of that committee to do as this e-fit.
:37:00. > :37:04.Analysis published last week showed that unsecured household debt is at
:37:05. > :37:07.a record high. Even the Bank of England voiced concern yesterday
:37:08. > :37:10.that the UK was relying upon consumer spending rather than
:37:11. > :37:14.exports and investment to boost growth reach boded poorly for the
:37:15. > :37:19.future. Does the Chancellor acknowledge that such high levels of
:37:20. > :37:24.household debt are indicative of the fact that the government Jose
:37:25. > :37:29.canonic strategy simply is not working, especially for most
:37:30. > :37:33.families, who are now struggling to get by on their income is alone? No,
:37:34. > :37:37.Mr Speaker, I do not accept that at all. What I do accept is that the
:37:38. > :37:41.extra Audrey performance of the UK economy over the last six months
:37:42. > :37:46.which has defied many predictions, has been largely driven by consumer
:37:47. > :37:54.behaviour. And as I just set out in answer to the previous question, the
:37:55. > :37:56.savings ratio has declined. So, consumers are feeling confident,
:37:57. > :38:01.they've been spending money rather than saving it over the last six
:38:02. > :38:04.months. I would invite the Chancellor to meet struggling
:38:05. > :38:08.families in my constituency, and indeed across the rest of Britain.
:38:09. > :38:11.Even the Office for National Statistics reported on the 10th of
:38:12. > :38:15.January that non-retired households have less money on average than
:38:16. > :38:21.before the economic crash. Chronic low pay, lack of opportunity and
:38:22. > :38:24.government cuts to support means they are desperately trying to find
:38:25. > :38:28.ways to make ends meet on a monthly basis, using debt. And the
:38:29. > :38:33.Chancellor therefore confirm what protection he will offer these
:38:34. > :38:37.families, should inflation rise significantly as a result of the
:38:38. > :38:40.pound's weakness since Brexit and indeed in light of the Bank of
:38:41. > :38:45.England suggesting yesterday that interest rates could go up? Mr
:38:46. > :38:49.Speaker, the honourable lady is right of course that the declining
:38:50. > :38:53.value of sterling will have an impact on inflation, and we have to
:38:54. > :38:56.take that into account as it feeds through into the economy, and the
:38:57. > :39:01.OBR signalled in its Autumn Statement how it expects that to
:39:02. > :39:05.occur. We will get new reports from the OBR in respect of currency
:39:06. > :39:09.movements since the Autumn Statement at the time of the budget, on the
:39:10. > :39:15.8th of March. And I will report to the House again then. Banks are
:39:16. > :39:19.required to treat customers fairly and ensure that vulnerable customers
:39:20. > :39:22.have appropriate access to banking. My right honourable friend and I met
:39:23. > :39:27.recently to discuss this, and I'm pleased to understand that both the
:39:28. > :39:32.FCA and the BBA have offered to meet with my honourable friend to discuss
:39:33. > :39:38.this. I am grateful to my honourable friend, who as a carer for an adult
:39:39. > :39:42.son, manages his finances in the hope that he will be able to live as
:39:43. > :39:46.independent a life as possible but has real issues trying to access his
:39:47. > :39:49.online banking. Even the increasing number of carers in the country,
:39:50. > :39:57.does he agree with me that the banking industry should do all it
:39:58. > :40:00.scan -- should do all it can? I know the FCA and the BBA are both looking
:40:01. > :40:04.at ways to make it easier for trusted friends or family to be able
:40:05. > :40:12.to manage their money safely. And I wish him luck. Mr Speaker, as my
:40:13. > :40:17.brother's appointee, after severe head trauma, I can see many avenues
:40:18. > :40:21.in which the time of carers is taken up with dealing with red tape. Can
:40:22. > :40:27.the minister explain how things such as online banking can be kept safe
:40:28. > :40:33.but made more simple for carers, with regards to multiple usernames?
:40:34. > :40:36.I thank him for the question. I can assure him that this is something we
:40:37. > :40:39.have discussed and it is the very issue which my honourable friend
:40:40. > :40:45.will be discussing both with the FCA and the BBA but the Government are
:40:46. > :40:53.keeping a close eye on it. Number 11, Mr Speaker. Progress has been
:40:54. > :40:59.made since 2010, with housing starts near at -- now at an eight year
:41:00. > :41:02.high. The Chancellor announced in the Autumn Statement that the
:41:03. > :41:07.Government will invest more than ?5 billion in housing, including a new
:41:08. > :41:14.housing infrastructure fund which will deliver up to 100,000 homes in
:41:15. > :41:18.high demand areas. ?1.4 billion will go towards affordable homes. ?1.7
:41:19. > :41:24.billion towards a programme of accelerated construction on public
:41:25. > :41:28.land. I thank my right honourable friend. Does he agree with me that
:41:29. > :41:33.supporting the off-site construction of new homes, as we've been doing in
:41:34. > :41:38.Peterborough, is one important way to get more good-quality homes built
:41:39. > :41:41.quickly? I do agree with my honourable friend that we should
:41:42. > :41:50.explore the potential of modern methods of construction, including
:41:51. > :41:56.off-site instruction. The accelerated construction programme
:41:57. > :41:59.announced in October, which aims to speed up the building of homes on
:42:00. > :42:04.public land, will include an element of off-site construction. The
:42:05. > :42:06.department of amenities and local governing is considering ways of
:42:07. > :42:17.encouraging diversification in the house-building market. We had better
:42:18. > :42:22.get the fella in, I do not like to see him unhappy! As someone who
:42:23. > :42:26.chairs a national charity based in Peterborough, but also the members
:42:27. > :42:29.of Parliament for Huddersfield, can hide back the people who have been
:42:30. > :42:32.saying that what we need is a more diverse housing market, better
:42:33. > :42:39.provision, but also say that the future must be lower cost housing,
:42:40. > :42:44.off-site construction, but to a highly sustainable standard?
:42:45. > :42:50.I think we can agree on all of that. The is a consensus on this point. We
:42:51. > :42:56.do need to build more homes. Being able to build more homes more
:42:57. > :43:00.cheaply but of high quality and on a sustainable basis is something that
:43:01. > :43:03.I hope the whole house can... Thank you, Mr is bigger. In my
:43:04. > :43:07.constituency Rochester and Strood, we are facing high numbers of new
:43:08. > :43:09.housing being proposed. Can the minister assure me this will be
:43:10. > :43:14.matched with the increased investment in our local
:43:15. > :43:19.infrastructure? Well, I think I withdraw my honourable's --
:43:20. > :43:21.honourable friend's attention to the housing infrastructure fund which I
:43:22. > :43:25.think demonstrates the determination of government to ensure that in
:43:26. > :43:28.areas of high demand, where new housing is built, we also deliver
:43:29. > :43:31.the infrastructure to support that housing. I think that will have a
:43:32. > :43:34.beneficial effect in terms of getting more houses built and
:43:35. > :43:40.ensuring that the appropriate infrastructure is there. This is
:43:41. > :43:45.about Peterborough in England, not kill Marnoch and Loudoun or even
:43:46. > :43:49.Scotland. I'm going to save the honourable gentleman up for a later
:43:50. > :43:54.occasion. We look forward to that with eager anticipation. Mick
:43:55. > :43:58.Kearney. For many in my constituency, homeownership is but a
:43:59. > :44:01.pipe dream with more people renting privately than owning their own
:44:02. > :44:04.homes. What steps is the minister considering to encourage private
:44:05. > :44:07.landlords to offer at least longer term tenancies for these very
:44:08. > :44:13.private renters in London and Hackney South? Well, we look to take
:44:14. > :44:20.measures to support all sectors and all types of housing and she's
:44:21. > :44:23.absolutely right to say that the Private rented housing is a really
:44:24. > :44:27.important sector. I'm sure she would agree with this but I think we have
:44:28. > :44:31.to be careful about some proposals that float around in terms of rent
:44:32. > :44:38.controls in this area which would be damaging for the private rented
:44:39. > :44:42.sector. Fiona McTaggart. Number 13. Chancellor. The government does not
:44:43. > :44:45.comment on currency movements and we don't target and exchange rate but
:44:46. > :44:48.in the last few minutes, I will tell the house the pound has spiked while
:44:49. > :44:52.the Prime Minister has been speaking. The vote to leave the EU
:44:53. > :44:56.has obviously caused some uncertainty and movements in
:44:57. > :44:59.financial markets. More generally, the fundamentals of our economy over
:45:00. > :45:03.the last couple of years have been strong. I think what the Chancellor
:45:04. > :45:09.means is that he does not comment on currency movement unless he does.
:45:10. > :45:12.Fiona McTaggart. But isn't it the case that number ten's office
:45:13. > :45:16.briefed that the pound would fall as a result of her remarks today? And
:45:17. > :45:23.did they do that in a cynical attempt to get the sound bite that
:45:24. > :45:27.he has just sought to achieve? Mr Speaker, first of all, I draw a
:45:28. > :45:29.distinction between providing a house with information and
:45:30. > :45:33.commenting on that information. I wouldn't dream of doing the latter.
:45:34. > :45:38.The other thing I would not dream of commenting on is any operations that
:45:39. > :45:46.number ten might undertake that are well beyond my pay grade. James
:45:47. > :45:50.Morris. Mr Speaker, the depreciation of the pound in the last two months
:45:51. > :45:53.has had a significant benefit the West Midlands exporters,
:45:54. > :45:57.particularly outside the European Union. So would the Chancellor agree
:45:58. > :46:02.with me that whatever arrangements we come to for access to the single
:46:03. > :46:05.market when we leave the European Union, we must not constrain West
:46:06. > :46:10.Midlands exporters from growing their trade outside of the European
:46:11. > :46:13.Union? On the contrary, Mr Speaker, it must support West Midlands
:46:14. > :46:18.exporters in that endeavour. We still have a very large
:46:19. > :46:25.current-account external deficit. We need to bring our trade into better
:46:26. > :46:27.balance and one of our objectives in concluding the exit arrangements
:46:28. > :46:35.from the European Union will be to support that. Question 14, Mr
:46:36. > :46:38.Speaker. Well, Mr Speaker, the independent National Audit Office
:46:39. > :46:44.has in fact just publics -- published its report into HMRC's
:46:45. > :46:47.contract with Concentrix, today and HMRC managers will be attending a
:46:48. > :46:53.Public Accounts Committee hearing on the 25th of January where the report
:46:54. > :46:55.will be discussed? Thank you, Mr Speaker, giving the report the
:46:56. > :46:58.Minister referred to believe this morning, and given the fact the
:46:59. > :47:02.holder buckle has caused undue stress to thousands of people across
:47:03. > :47:05.the country, including in my own constituency, can I ask the minister
:47:06. > :47:10.what specific lessons have the Department and herself learned?
:47:11. > :47:14.Well, Mr Speaker, there are a number of things, as indeed I reflected
:47:15. > :47:17.when we had the opposition Day debate when the front bench, I
:47:18. > :47:20.accepted their motion on this. Of course, there are a number of
:47:21. > :47:24.lessons we have learned. That includes four ministers in the way
:47:25. > :47:30.that we monitor the concerns that colleagues have, for example, in the
:47:31. > :47:33.way we deal with their concerns behalf their constituents. HMRC have
:47:34. > :47:35.confirmed they are not planning a contract of this nature for this
:47:36. > :47:41.particular operation going forward. But they will have more to say when
:47:42. > :47:47.they respond, both in committee and to the report. Given the National
:47:48. > :47:51.Audit Office is exit rating -- office's exit rating report on
:47:52. > :47:54.Concentrix's failure to achieve savings targets, performance
:47:55. > :47:59.targets, serviceable staffing levels, sufficient levels of
:48:00. > :48:00.training, call handling accuracy, proficient contract management,
:48:01. > :48:07.competent decision-making while unbelievably increasing commission
:48:08. > :48:10.by almost threefold, wouldn't the Chancellor's time be better spent on
:48:11. > :48:19.concentrating on getting HMRC into a modicum of efficiency, rather than
:48:20. > :48:23.popping off to Davos for a winter soldier? The first thing I want to
:48:24. > :48:27.say Mr Speaker is that there are many tens of thousands of people
:48:28. > :48:32.working for HMRC and it would do their morale the power of good if
:48:33. > :48:34.people in this house could reflect on their current excellent
:48:35. > :48:38.performance and the improvements they've made on two years ago in
:48:39. > :48:41.terms of customer service. I want to publicly compliment them on the
:48:42. > :48:46.improvements they have made. Mistakes were made on Concentrix and
:48:47. > :48:50.we have accepted that and that is the reason the agreement was
:48:51. > :48:54.terminated. We will be reflecting more on that when we respond to the
:48:55. > :49:00.National Audit Office report. Topical questions. Topical one. Mr
:49:01. > :49:03.Speaker, my principal responsibility remains delivering near term
:49:04. > :49:07.measures to ensure stability and resilient as the UK exit the EU
:49:08. > :49:10.while also addressing the UK's long-term productivity challenge. My
:49:11. > :49:17.immediate focus is preparing the last ever spring budget for delivery
:49:18. > :49:20.on the 8th of March. Many of my constituents are concerned about the
:49:21. > :49:24.future of the clean investment bank, the potential of asset stripping,
:49:25. > :49:27.the worth of the shares and the suitability of the buyers. What is
:49:28. > :49:34.the Minister's department doing to ensure that the UK taxpayer is given
:49:35. > :49:39.a fair deal out of the sale of the bank and that it retains its green
:49:40. > :49:44.focus? Those are two of the criteria that we have set, that there should
:49:45. > :49:47.be value for money for the taxpayer, and that the bank's focus for future
:49:48. > :49:52.operations should be retained and protected. We are reviewing the sale
:49:53. > :49:57.process as it goes forward and we will make sure that those outcomes
:49:58. > :50:01.are protected. Thank you, Mr Speaker. The latest fiscal
:50:02. > :50:03.sustainability report was published by the Office for Budget
:50:04. > :50:07.Responsibility just over an hour ago. Knowing what a Crick read my
:50:08. > :50:13.right honourable friend is, what assessment has he made of the
:50:14. > :50:19.implications for the long-term health of the public finances? Not
:50:20. > :50:24.only a quick reader but able to read the report while also answering
:50:25. > :50:27.questions in the house. The OBR's report actually shows that under
:50:28. > :50:31.certain circumstances, the UK public finances will come under increasing
:50:32. > :50:36.pressure over the next 50 years. As I said earlier, what this does is
:50:37. > :50:40.create a catalyst for a discussion which we have to have about how we
:50:41. > :50:45.maintain the sustainability of our crucial public services, looking at
:50:46. > :50:49.the demographic pressures and other pressures that they will face. I do
:50:50. > :50:57.believe this report has served a useful purpose and I hope because
:50:58. > :51:00.the point, 50 years outcome is sufficiently far away, we will be
:51:01. > :51:07.able to have a mature cross-party discussion about how we address
:51:08. > :51:10.these issues. The Autumn Statement revealed Brexit bombshell that
:51:11. > :51:13.growth will be a massive 2.4% lower than previously predicted. What
:51:14. > :51:18.further in fact does the Chancellor expect leaving the single market
:51:19. > :51:22.will have on GDP growth in years to come? Well, Mr Speaker, I think the
:51:23. > :51:26.OBR has set out its projections under different scenarios at the
:51:27. > :51:30.Autumn Statement. It is the OBR that makes the forecast. It will of
:51:31. > :51:40.course produce a revised set of forecasts which will be published on
:51:41. > :51:42.the 8th of March, budget day. Derek Thomas. Businesses including
:51:43. > :51:44.restaurants and guesthouses in my constituency curtail their business
:51:45. > :51:46.in order to keep within their budget threshold. This obviously has a
:51:47. > :51:51.negative impact on economic activity and jobs in West Cornwall and the
:51:52. > :51:54.Isles of Scilly. We'll be Chancellor consider increasing the VAT
:51:55. > :51:59.threshold as soon as the opportunity arises? Well, I thank my honourable
:52:00. > :52:02.friend for the point and I'm happy to discuss it when we have the
:52:03. > :52:07.meeting. It is worth putting on the record that the VAT rate is ?138
:52:08. > :52:11.billion towards the public finances, projected for this year and it is in
:52:12. > :52:14.fact one of the highest threshold in the EU but I'm always happy to
:52:15. > :52:19.listen to colleagues and I know the concerns of the tourism industry in
:52:20. > :52:22.particular are to the fore of the minds of many. Last week, the
:52:23. > :52:27.nuclear decommissioning authority began a statutory consultation on UK
:52:28. > :52:32.Government plans to cut final salary pensions across the nuclear state,
:52:33. > :52:35.impacting 16,000 workers, including hundreds of my constituency. Is the
:52:36. > :52:39.Chancellor aware that this is a trailer promises made by Margaret
:52:40. > :52:46.Thatcher to nuclear workers when the energy industry was privatised? Of
:52:47. > :52:50.course, the government, indeed the relevant agency recognises the
:52:51. > :52:55.importance of the staff and employees that work in this sector.
:52:56. > :53:00.But it is also necessary to have terms and conditions which reflect
:53:01. > :53:07.the modern situation and what is the case that applies across the whole
:53:08. > :53:10.economy. The Solent region has a deficit of 6% in edge EVA compared
:53:11. > :53:15.to the rest of the south-east, and much of that is due to the lack of
:53:16. > :53:18.investment in local transport infrastructure, for example, no
:53:19. > :53:21.significant investment in rail for 50 years. Can the Chancellor
:53:22. > :53:26.confirmed the new national productivity investment fund can be
:53:27. > :53:31.used to address that deficit? Well, what I can say to my honourable
:53:32. > :53:33.friend is that the purpose of the national productivity investment
:53:34. > :53:37.fund is to support economic growth across all regions of the country.
:53:38. > :53:40.Further details are specifying how and where the national productivity
:53:41. > :53:43.investment fund will be invested will be set out by the relevant
:53:44. > :53:47.departments and agencies in due course. Of course, the Solent won't
:53:48. > :53:50.be forgotten and we are taking action to improve rail services with
:53:51. > :53:59.a new franchise expected to deliver more services and quicker journey
:54:00. > :54:03.times on South West trains. Mr Speaker, it's simply not good enough
:54:04. > :54:06.to throw Concentrix under the bus on this one. The NAA report today found
:54:07. > :54:10.that HMRC were at fault in the writing of the contract, in failing
:54:11. > :54:14.to monitor it, and in intervening to make things worse after a Paul
:54:15. > :54:19.Clough -- poor performance in summer 2015. Who will be held accountable,
:54:20. > :54:25.HMRC for these gross failings of this contract from beginning to end?
:54:26. > :54:28.-- accountable at HMRC. Well, Mr Speaker, the Honourable Lady and I
:54:29. > :54:30.have debated this usual and of course they are significant
:54:31. > :54:33.criticisms in the report and we are looking at those and we have
:54:34. > :54:36.accepted a number of the criticisms that have been made about the
:54:37. > :54:40.handling of this but are not -- a lot of money has been saved in the
:54:41. > :54:44.area for that exist in the tax credit system and HMRC will be
:54:45. > :54:47.responding in more detail at the PAC hearing next week and I will look at
:54:48. > :54:53.the report and consider it in detail. Nicola Halifax reports that
:54:54. > :54:57.the of first-time buyers is that it ties into 2007. -- the Halifax. It
:54:58. > :55:01.cites government schemes as hell to bide making a major contribution.
:55:02. > :55:06.What can the government do to back aspiration more and help people get
:55:07. > :55:11.on the housing ladder? Be helped by schemes have helped over 220,000
:55:12. > :55:14.households buy a home, including over 180,001st-time buyers. Add the
:55:15. > :55:17.Autumn Statement, the Chancellor announced the government would
:55:18. > :55:21.invest an additional ?1.4 billion in affordable housing to deliver 40,000
:55:22. > :55:24.new homes for shared ownership, rented by and affordable rent,
:55:25. > :55:30.bringing the total funding of the affordable homes programme to ?7.1
:55:31. > :55:33.billion. Will the Chancellor state unequivocally the government's
:55:34. > :55:41.commitment to the 0.7% aid target in this and future spending rounds? Mr
:55:42. > :55:45.Speaker, as the honourable gentle minnows, the 0.7% target is
:55:46. > :55:48.enshrined in primary legislation. -- honourable gentleman knows. The
:55:49. > :55:52.government has no intention of changing that. The government is
:55:53. > :55:57.investing in major infrastructure projects including Heathrow Airport,
:55:58. > :56:01.HS2 and hopefully a new A36- 46 link Rd in my constituency. What is my
:56:02. > :56:05.right honourable friend doing to ensure we provide enough funds to
:56:06. > :56:08.make sure the work is conducted in a timely fashion? The government is
:56:09. > :56:13.committed to supporting the skills we need to deliver our national
:56:14. > :56:17.infrastructure. In 2016, the transport in the structure and skill
:56:18. > :56:22.strategy committed to creating 30 Thousand Rd and rail apprenticeships
:56:23. > :56:26.by the end of the Parliament. The Department for industrial strategy
:56:27. > :56:29.is investing ?40,000 in the high-speed rail college with further
:56:30. > :56:32.funding coming from local government and industry. Heathrow Airport has
:56:33. > :56:34.admitted to double the number of apprentices to 10,000 by the time
:56:35. > :56:50.the new third runway is operational. Changes to the regional funds for
:56:51. > :56:55.solar power will mean that solar rooftop installations on schools and
:56:56. > :56:58.hospitals could be increasing in cost by 68 times in April. Does the
:56:59. > :57:01.Government realise the hugely damaging impact this will have on
:57:02. > :57:06.organisations which have installed those panels in good health, and
:57:07. > :57:09.also for the solar panel industry? The installation of solar panels is
:57:10. > :57:14.of course only one of the factors which determine the rateable value.
:57:15. > :57:19.The transitional relief scheme will support businesses which have an
:57:20. > :57:23.increase in business rates bills and of course businesses with solar
:57:24. > :57:28.panels will also benefit from these ?6.7 billion package to reduce
:57:29. > :57:33.business rates, the biggest ever. The Government will be aware that
:57:34. > :57:38.north Wales has some of the lowest productivity rates in the UK at
:57:39. > :57:41.around 73% of the UK average. With that in mind, what plans does it
:57:42. > :57:52.have to work with the six north Wales councils, the Mersey--Dee
:57:53. > :57:56.Alliance and other organisations...? I can confirm to my honourable
:57:57. > :58:01.friend that Treasury ministers have regular discussions with ministerial
:58:02. > :58:05.colleagues as to how to increase growth and productivity across Wales
:58:06. > :58:09.and the United Kingdom. In 2016 the Government confirm that the door was
:58:10. > :58:12.still open for a growth deal with north Wales and it is committed to
:58:13. > :58:16.negotiating a City Deal for the Swansea bay region in south Wales. I
:58:17. > :58:22.look forward to receiving proposals from partners in the north Wales
:58:23. > :58:30.region over the coming months. Is always very well briefed these
:58:31. > :58:42.topical questions, reading out the screed, very good! IFS... What is
:58:43. > :58:47.the Chancellor's strategy to ensure that growth in our economy benefits
:58:48. > :58:56.everybody? Mr Speaker, we have seen income inequality falling, but of
:58:57. > :58:59.course, we face issues as the depreciation of sterling works its
:59:00. > :59:03.way through to inflation in the economy. That is an issue which we
:59:04. > :59:08.will keep very much focused on and I shall address it in more detail at
:59:09. > :59:12.the budget. Alongside other elements driving successful PMI is recently
:59:13. > :59:16.was seven consecutive months of export growth. Will the Chancellor
:59:17. > :59:21.agree this is a fine way to underpin our already record rates of
:59:22. > :59:27.employment? I would agree. The survey has shown significant
:59:28. > :59:30.resilience in the UK economy since the referendum, and the Prime
:59:31. > :59:33.Minister has made it very clear recently that we will make a success
:59:34. > :59:37.of leaving the EU. Given the minister's earlier comments about
:59:38. > :59:41.attempts to stimulate house-building, can he guarantee
:59:42. > :59:50.that at the end of this Parliament, the supply of rented homes will be
:59:51. > :59:56.higher than at the beginning? What I can say to the honourable... To the
:59:57. > :59:58.honourable gentleman, is that we are likely to build more affordable
:59:59. > :00:08.homes in the course of this Parliament than has been done since
:00:09. > :00:12.the 1970s. Currently, 87,000 ultralow emission vehicles on our
:00:13. > :00:16.roads. , but a Committee on Climate Change says we need to have 1.7 by
:00:17. > :00:24.2020. What more can the Treasury do to help us reach that challenging
:00:25. > :00:28.target? I recognise his concern. As Transport Secretary in 2010, this
:00:29. > :00:31.was on my agenda. The roll-out of ultralow emission vehicles has been
:00:32. > :00:35.disappointing. It has not gone as fast as I would have hoped. And it
:00:36. > :00:39.will be one of the issues that we look at as we seek to respond to
:00:40. > :00:44.concerns about air quality, reinforced by recent court decisions
:00:45. > :00:54.requiring the Government to review its approach to our quality. In his
:00:55. > :01:00.last budget, the Chancellor stuck a 7 billion investment line on the
:01:01. > :01:05.year 2022 which is actually beyond the remit of this Parliament. Can he
:01:06. > :01:09.explain the purpose of that? I did not hear the first part of the
:01:10. > :01:15.question. It's customary to present forecasts for fiscal events over the
:01:16. > :01:19.forecast period, which as we progress through the Parliament will
:01:20. > :01:23.stretch beyond the end of the current Parliament. But the way it
:01:24. > :01:33.has always been done and I'm afraid it would not be hopeful to give
:01:34. > :01:39.Parliament a shorter horizon. Mr James Berry. It is a London related
:01:40. > :01:44.question. Major infrastructure investment will form a vital part of
:01:45. > :01:50.our economy in post-Brexit Britain. Can my right honourable friend
:01:51. > :01:55.confirm this in regard to Crossrail 2? Mr Speaker, the Government will
:01:56. > :01:59.of course consider all proposals for infrastructure investment on their
:02:00. > :02:05.merits. The industrial strategy green paper, when it is published,
:02:06. > :02:06.will set out the Government's approach to prioritising
:02:07. > :02:11.infrastructure to support the economy. When the Chancellor
:02:12. > :02:15.considers the effects of bringing in quarterly reporting, will he look at
:02:16. > :02:19.the figures which show that only 25% of our smaller businesses have
:02:20. > :02:31.maintained electronic accounting records, and just 38% lack basic
:02:32. > :02:36.digital skills? So will you listen to the committee which described
:02:37. > :02:39.this as a potential disaster? Mr Speaker, I Will always listen to
:02:40. > :02:43.what the tremens of the Treasury Select Committee says. It is a very
:02:44. > :02:49.useful support and I am considering it carefully. They acknowledged that
:02:50. > :02:52.the future digitisation of the tax service is the direction we should
:02:53. > :02:56.be travelling in. But of course we are looking carefully at the impact
:02:57. > :02:58.on small businesses, many thousands of whom we have already exempted
:02:59. > :03:07.without current announcement. I think it is Lancashire's turn, Jake
:03:08. > :03:11.Berry! Thank you, Mr Speaker. On the subject of berries, does my right
:03:12. > :03:16.honourable friend the Chancellor share my concern that too many jams
:03:17. > :03:21.are becoming jam tomorrow, with household debt? What will he do to
:03:22. > :03:25.stop irresponsible lending by credit card companies and banks to
:03:26. > :03:31.low-income households? Well, Mr Speaker, the Government does, the
:03:32. > :03:33.regulatory authorities do take appropriate measures to prevent
:03:34. > :03:39.inappropriate lending and to make sure that credit products are not
:03:40. > :03:44.mis-sold. And we will continue to do so. Member for East Lothian, always
:03:45. > :03:52.looks so happy. We will make him happier! Thank you, it is your
:03:53. > :04:02.presence that makes me happy! While the Chancellor has been answering
:04:03. > :04:06.questions, the Prime Minister in her speech has said that the UK will
:04:07. > :04:13.most likely continue to pay into EU budgets. With the Chancellor have
:04:14. > :04:17.something to say on that? Mr Speaker, we have always said that if
:04:18. > :04:21.as part of our future arrangements with our former European Union
:04:22. > :04:25.partners, we continue to collaborate in certain areas, scientific and
:04:26. > :04:31.technical, research programmes, for example, then of course we'll have
:04:32. > :04:34.to expect to contribute. All of this is for the negotiations ahead. What
:04:35. > :04:40.the Prime Minister has done to date is set out a 12 point plan for
:04:41. > :04:43.Britain's future relationship with the European Union, exactly what our
:04:44. > :04:47.partners have been demanding from us. And I hope that this will no
:04:48. > :04:51.signal the beginning of the serious engagement on Britain's future
:04:52. > :04:57.relationship... I heard this morning that an overseas insurance company
:04:58. > :04:59.had chosen Zurich over London as its European base because they felt the
:05:00. > :05:03.Swiss authorities were much quicker to engage with them than the London
:05:04. > :05:05.authorities. With the Chancellor have a look at, ensure that we are
:05:06. > :05:11.the most competitive financial services market in the world and
:05:12. > :05:19.that we really take overseas investment seriously? Of course, Mr
:05:20. > :05:22.Speaker, I thought my honourable for was going to tell me that they had
:05:23. > :05:26.chosen an EU location over London so I am interested to hear that they
:05:27. > :05:30.have chosen Zurich, the only possible non-EU location over
:05:31. > :05:34.London. But of course I will look at the issue. It is our objective to
:05:35. > :05:37.have the most attractive location for inward investment for foreign
:05:38. > :05:43.businesses to do their business on this continent. Inflation is still
:05:44. > :05:50.below the Monetary Policy Committee's official target. The
:05:51. > :05:52.economy has long been a more worrying risk in terms of deflation,
:05:53. > :05:57.rather than inflation. Though he therefore seek to deflate the
:05:58. > :06:00.Governor of the Bank of England from any notion of raising interest rates
:06:01. > :06:08.which would inflict damage to the economy? No, Mr Speaker, it is not a
:06:09. > :06:11.matter for me to persuade or dissuade the Governor of the Bank of
:06:12. > :06:15.England with respect to this. But while the inflation figures
:06:16. > :06:21.published this morning at 1.6% are below the Bank of England's target
:06:22. > :06:26.rate, the OBR's forecast and indeed the Bank of England's forecast for
:06:27. > :06:33.later on this year suggest that they will meet and exceed the target rate
:06:34. > :06:38.later in the year. Over a year ago, the Treasury promised to consult on
:06:39. > :06:42.breathing space, which would assist and protect people from interest and
:06:43. > :06:47.other charges while they seek help. Will the minister commit to bringing
:06:48. > :06:52.this forward as a matter of urgency in view of the high levels of
:06:53. > :06:59.personal debt? We are looking very closely at, we will see some
:07:00. > :07:10.progress in the vein of future. Statement, the Secretary of State
:07:11. > :07:17.for Health man. -- the Secretary of State for Northern Ireland.
:07:18. > :07:21.Secretary James Brokenshire. Thank you, Mr Speaker. With permission, I
:07:22. > :07:27.should like to make a statement regarding forthcoming elections to
:07:28. > :07:29.the Northern Ireland Assembly. As the House is aware, Martin
:07:30. > :07:30.McGuinness resigned as