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Order, order. New Southgate Cemetery Bill third reading. Tuesday 7th of

:00:07.:00:24.

March. Questions to the Chancellor of the Exchequer. I would like to

:00:25.:00:34.

group this question with question 12. Annual funding to the Department

:00:35.:00:41.

of Health is already being increased by ?17 billion by 2020/ 21. This

:00:42.:00:44.

reflects the priority the Government puts on investing in the NHS. The

:00:45.:00:53.

governments of Germany, Holland, Sweden and Denmark spent 9% of GDP

:00:54.:01:00.

on health care about 7% in the UK. This is a massive difference. The

:01:01.:01:04.

NHS is underfunded. If the Chancellor going to take this

:01:05.:01:12.

seriously in the budget? The OECD has put out revised numbers to show

:01:13.:01:19.

the UK has expenditure on health close to some of those other

:01:20.:01:23.

countries. We can only have a properly funded NHS if we have a

:01:24.:01:29.

strong economy and it is only this party that can deliver. When lives

:01:30.:01:36.

are on the line, it is imperative we get it right. We need honesty about

:01:37.:01:45.

what the current NHS crisis means. Will the Minister agree that the

:01:46.:01:50.

Government needs to provide a long-term package to guarantee NHS

:01:51.:01:58.

services for the future? It was this Government that announced a

:01:59.:02:01.

long-term financially sustainable package which is why in real terms

:02:02.:02:08.

funding for the NHS will increase by ?10 billion above inflation by 2020

:02:09.:02:15.

/20 one. Since 2010, there are 2300 more people attending A

:02:16.:02:22.

departments. 5000 more operations every day, 1400 more people every

:02:23.:02:28.

day treated for mental health conditions and the NHS is conducting

:02:29.:02:35.

16,000 more diagnostic tests every day. The Department of Health has

:02:36.:02:41.

cut its capital budget by 20% and used that for running costs to pay

:02:42.:02:48.

for salaries. Did the Treasury press for these cuts in capital spending

:02:49.:02:53.

and does the Chief Secretary agree with me that raiding the capital

:02:54.:02:57.

budget is no way to find efficiency savings? It was the request of the

:02:58.:03:03.

health service and Department of Health that there was this which

:03:04.:03:07.

from capital to resource but in terms of finding efficiencies in the

:03:08.:03:14.

NHS and in the public sector as a whole, it is important we deliver

:03:15.:03:18.

sustainable efficiencies and ensure we get value for money for the

:03:19.:03:24.

taxpayer. Whilst I welcome this Government's commitment to health,

:03:25.:03:28.

may I invite my right Ron Ball friend to take a leaf out of

:03:29.:03:31.

President Trump's book and increase expenditure by 10% flooded from the

:03:32.:03:42.

budget? In naughty idea but it has nothing to do with the Department of

:03:43.:03:48.

Health budget. The minister is a dextrous fellow and I'm sure he can

:03:49.:03:53.

answer in an orderly way. Although it may have a tenuous link with the

:03:54.:04:00.

question, it was a predictable question with my right honourable

:04:01.:04:07.

friend. We are delivering on that 2% plus expenditure on defence and we

:04:08.:04:14.

are increasing defence spending in real terms and it is important we

:04:15.:04:18.

have a strong economy so we can fund our defence. This shocking

:04:19.:04:28.

revelation that NHS business services Ltd misplaced half a

:04:29.:04:32.

million pieces of medical data as a direct result of a health service

:04:33.:04:38.

that is being squeezed by the Chancellor's purse strings, the Tory

:04:39.:04:40.

Government is putting patient safety at risk through lack of resourcing

:04:41.:04:47.

and a targeted savings drive. When the Chancellor reassess the

:04:48.:04:49.

situation and the level of NHS funding? On the level of NHS

:04:50.:04:57.

funding, she will find that the expenditure has gone up more in

:04:58.:05:02.

England than it has in Scotland and given that it is a devolved matter,

:05:03.:05:07.

she might want to raise her concerns with the Scottish Government. Will

:05:08.:05:14.

he confirm record amounts of money are being spent on the NHS and

:05:15.:05:18.

record numbers are being treated and he will bring forward clear

:05:19.:05:22.

incentives for local authorities and health services to join up the

:05:23.:05:32.

delivery of NHS and social care? He is correct in terms of the resources

:05:33.:05:36.

we are putting in but it is also important if we want to improve the

:05:37.:05:41.

quality of health care in the context of social care, that there

:05:42.:05:45.

is greater integration and that is why we announced the better care

:05:46.:05:50.

fund that is making an important contribution and improving

:05:51.:05:51.

integration. The chair of the Treasury Select

:05:52.:06:02.

Committee is spot-on. If the Chancellor does discuss any increase

:06:03.:06:07.

in levels of funding, when he point out to the Health Secretary that the

:06:08.:06:15.

report says he should stop plundering NHS funds? In particular,

:06:16.:06:21.

that is what it said. We ask him to stop his repeated raise on NHS

:06:22.:06:32.

capital funds and stop ?950 million out of 4.5 million. Can I

:06:33.:06:39.

congratulate the gentleman to his post. He is my eighth shadow as a

:06:40.:06:47.

Treasury minister so I look forward to sparring with him over the weeks

:06:48.:06:59.

ahead. In terms of the question he asks, let me repeat what I said

:07:00.:07:05.

earlier. In terms of the budget settlement of the NHS and the

:07:06.:07:09.

balance between resource spending and capital spending, it was an

:07:10.:07:12.

agreement that was reached with the Department of Health and in terms of

:07:13.:07:18.

that switch towards more resources, it was something that was pushed by

:07:19.:07:20.

the Department of Health. 4000 agent operations cancelled,

:07:21.:07:38.

18,000 people in January waiting on trolleys, ?4.6 million cut from

:07:39.:07:43.

social care, so when those funding levels are discussed with the

:07:44.:07:47.

Department of Health, will he tell he's -- his colic that he should be

:07:48.:07:51.

caring for the NHS, not giving it a lethal injection. If they could move

:07:52.:08:03.

beyond the level of black cord -- Black design, that might help. Let

:08:04.:08:07.

me be clear we are putting more money in the NHS. The NHS is

:08:08.:08:12.

providing more support and help to people than it has done before and I

:08:13.:08:15.

listed some of the achievements since 2010. This Government remains

:08:16.:08:21.

committed to the NHS and why it has been a priority in our public

:08:22.:08:25.

spending plans for the last seven years. You need to speed up in terms

:08:26.:08:32.

of questions and answers. The Government will drive a community

:08:33.:08:36.

and growth in Yorkshire by investing in its infrastructure, developing

:08:37.:08:41.

the secures -- is people and its companies. We announced the four

:08:42.:08:45.

local enterprise partnerships covering Yorkshire will receive ?26

:08:46.:08:52.

million to back local priorities and support new jobs as well as ?3.7

:08:53.:08:58.

million extra investment to bolster its resistance. Will the Chancellor

:08:59.:09:02.

join me in welcoming recent investments by the likes of Boeing

:09:03.:09:07.

and McLaren in Yorkshire and will he continue to see more

:09:08.:09:23.

investment it is important we support small and medium enterprises

:09:24.:09:30.

and the Northern Powerhouse investment fund will have a remit to

:09:31.:09:33.

support smaller businesses across the North. 14 months after the

:09:34.:09:42.

devastating storm either floods, it is welcome news for people in my

:09:43.:09:48.

constituency that a restaurant is opening tomorrow but many other

:09:49.:09:52.

businesses in my constituency are still struggling with astronomical

:09:53.:09:55.

increases in the costs of insurance and we still don't have a date for

:09:56.:10:00.

having proper flood defences in my constituency. What assurance can

:10:01.:10:07.

make Chancellor give us that will show he has not forgotten about us?

:10:08.:10:16.

We have put additional money into flood defence spending. I take on

:10:17.:10:19.

board the comments the honourable lady has made about the delay others

:10:20.:10:24.

are experiencing and I will look at the fax. In relation to Yorkshire. I

:10:25.:10:31.

would love to visit that restaurant, by the way. My right honourable

:10:32.:10:38.

friend will know that Boeing is a major employer in the UK and the

:10:39.:10:44.

opening of Boeing Sheffield as it is going to be known as, is a major

:10:45.:10:49.

manufacturing plant which is the only one of its type to be

:10:50.:10:53.

introduced into Europe. Is this not a major endorsement by Boeing of

:10:54.:10:59.

post-Brexit Britain? It is an endorsement by a global

:11:00.:11:09.

company, our major vote of confidence in the British economy.

:11:10.:11:13.

It is also of course a reflection of this government's policy that where

:11:14.:11:17.

we place large contract for military equipment, as we have done with

:11:18.:11:23.

Boeing, we will insist on some compensating investment in our

:11:24.:11:28.

economy, so that investment in our military capability pays for jobs,

:11:29.:11:34.

skills and investment in the UK. The Chancellor referred to the let's.

:11:35.:11:47.

Will see look at what further powers can be given to the LEPS, regarding

:11:48.:11:53.

deciding priorities for regional infrastructure investment and also

:11:54.:11:57.

the skills agenda? Will he bring them together to talk about what

:11:58.:12:01.

needs to be done in terms of prioritising the potential we have

:12:02.:12:07.

four at in word investment in terms of Brexit? We are keen on LEPs

:12:08.:12:12.

across Britain working together. These large pots of devolved funding

:12:13.:12:17.

including some of the money I announced in the Autumn Statement,

:12:18.:12:27.

ensuring it can be used across an economic geography coherently. I

:12:28.:12:32.

would encourage them to work together. Yorkshire is home to some

:12:33.:12:41.

of the country's finest financial institutions, the Yorkshire bank and

:12:42.:12:45.

the Yorkshire Building Society. Like all financial institutions in the

:12:46.:12:50.

UK, they will be keen to understand what the government's plans are

:12:51.:13:00.

regarding Brexit? We need to know how things will be made certain.

:13:01.:13:06.

These are reasonable questions. Can we start to have some answers? They

:13:07.:13:13.

are perfectly reasonable questions. I'm not sure the Skipton building

:13:14.:13:22.

society is holding its breath on how equivalence will work. But these are

:13:23.:13:27.

matter for negotiation. If we end up with an equivalence regime to allow

:13:28.:13:33.

financial services and businesses to continue to trade in the European

:13:34.:13:36.

Union, it will be important that is an equivalence regime based on

:13:37.:13:41.

objective criteria, not political criteria. So long as our regulatory

:13:42.:13:46.

regimes are in fact equivalent, we can be confident of being able to

:13:47.:13:56.

continue to trade. As honourable members will know, national

:13:57.:13:59.

insurance contributions are primarily used to fund state

:14:00.:14:07.

pensions. A portion is used for the NHS. Beyond that, the government's

:14:08.:14:14.

plans to ringfence national insurance contributions for health

:14:15.:14:18.

and social care. Thank you for the answer. Can she look into this as a

:14:19.:14:25.

means of deep politicising the debate and ensuring long-term

:14:26.:14:28.

funding not just today but for decades to come for health and

:14:29.:14:34.

social care. I understand her core point. The government has taken

:14:35.:14:39.

action to ensure the NHS has the funding it needs by increasing its

:14:40.:14:45.

annual budget by ?10 billion above inflation by 2021. Were mindful of

:14:46.:14:49.

the long-term challenges. If you look at issues recently highlighted

:14:50.:14:53.

by the Office for Budget Responsibility in the latest fiscal

:14:54.:14:59.

sustainability report, the laid out quite starkly. In terms of deed

:15:00.:15:05.

politicising, backing the NHS' own plan for its future in the way that

:15:06.:15:10.

we have done is the best way to do that. In 2010, I proposed a

:15:11.:15:24.

compulsory care levy. At the time, Conservative ministers showed

:15:25.:15:33.

pictures of my gravestone and called it a death tax. I read in the Times

:15:34.:15:37.

newspaper today that conservatives are considering it. Can this

:15:38.:15:43.

possibly be true? No. Given the fact we have the benevolent care fund, if

:15:44.:15:50.

he has any wriggle room in the forthcoming budget, can I ask him if

:15:51.:15:53.

he cannot have some transitional relief for social care until we can

:15:54.:15:59.

work out the best moral? The government has been clear on a

:16:00.:16:03.

number of occasions. We recognise that the pressures on the system,

:16:04.:16:07.

additional money has been made available through the social care

:16:08.:16:12.

precept. We are well aware of the pressures on the system as my

:16:13.:16:20.

honourable friend has said. His point is well made. How can it be

:16:21.:16:25.

right for those local authorities that are under the most pressure in

:16:26.:16:31.

terms of social care can raise the least amount through the council tax

:16:32.:16:35.

precept that this government's policy around social care has

:16:36.:16:39.

produced. East Riding Council can raise 56% more than half and yet

:16:40.:16:51.

it's demand is less. The better care fund adjusts for that and there are

:16:52.:16:55.

a range of ways in which we are responding to these pressures which

:16:56.:16:59.

we acknowledge in the social care system. We recognise the need to

:17:00.:17:06.

enhance public infrastructure across all regions of the UK. In the Autumn

:17:07.:17:12.

Statement la Stuart Kuttner we announced new capital for the

:17:13.:17:24.

productivity fund. We are spending ?1.1 billion on local projects to

:17:25.:17:27.

improve our existing transport networks. As the UK automotive

:17:28.:17:38.

sector continues to embrace new technologies, ensuring the necessary

:17:39.:17:42.

energy supplies are in place is of increasing importance. What support

:17:43.:17:50.

can the government give to the Midlands regarding electric

:17:51.:17:53.

vehicles? The Midlands is home to some of the world's leading

:17:54.:17:59.

automotive manufacturing and is also home to some cutting-edge battery

:18:00.:18:05.

technology research, including by the Warwick Manufacturing group at

:18:06.:18:09.

Warwick University. He is right. If we are going to electrify the

:18:10.:18:14.

vehicle fleet, we have to also make sure that clean, sustainable,

:18:15.:18:21.

reliable supplies of electricity are available to meet the needs of the

:18:22.:18:24.

economy in the 21st century and our national Infrastructure Plan does

:18:25.:18:31.

exactly that. Yorkshire will no longer benefit from EU structural

:18:32.:18:35.

funding. How will the Chancellor meet this shortfall? As we have made

:18:36.:18:41.

clear, the arrangements we have with the European Union and with any of

:18:42.:18:46.

the organisations and funds that the European Union operates remain to be

:18:47.:18:50.

discussed during the negotiation phase. If he is right and we end up

:18:51.:18:55.

not participating in such arrangements in the future, we will

:18:56.:18:58.

clearly have to make separate similar arrangements on a UK only or

:18:59.:19:07.

indeed on an individual nation within the UK basis. Alongside

:19:08.:19:10.

large-scale investment infrastructure such as the

:19:11.:19:13.

Thameslink upgrades, relatively small amounts of money on local

:19:14.:19:18.

roads and station facilities can rapidly improve journey times and

:19:19.:19:23.

therefore boost productivity? I agree. It is often the smaller local

:19:24.:19:30.

projects that deliver the greatest benefit. They don't have the same

:19:31.:19:35.

kind of grandstanding possibilities around them and therefore they are

:19:36.:19:39.

not always quite as favoured. They are often the most effective way of

:19:40.:19:44.

intervening. They can often be delivered very quickly by local

:19:45.:19:54.

levels of government. The Chancellor simply did not answer my friend for

:19:55.:19:59.

Barnsley. The UK Government's funding and investment in London has

:20:00.:20:05.

always way outstripped any other region. The OECD says that we have

:20:06.:20:09.

had no regional policy since 2010. What will happen in investment in

:20:10.:20:17.

the north when Brexit occurs? We will continue to invest in our

:20:18.:20:20.

economy and the distribution of that investment will be in accordance

:20:21.:20:23.

with the government's priorities. I think she should look at the

:20:24.:20:27.

industrial strategy paper that has been published and she should look

:20:28.:20:30.

at statements that the government has made, including around the

:20:31.:20:36.

national infrastructure, the National productivity fund that we

:20:37.:20:42.

announced in the autumn. We are committed to infrastructure

:20:43.:20:45.

development in all regions of the UK. That is a key element of our

:20:46.:20:53.

productivity agenda. In order to effectively support infrastructure

:20:54.:20:56.

investment, we will meet ups kill our workforce to deliver the kinds

:20:57.:21:01.

of projects we need. Especially regarding high-tech projects. Does

:21:02.:21:09.

the Chancellor agree that we need investment now to get the skills

:21:10.:21:15.

pipeline filled. I will take that as a budget representation. Yes, I do

:21:16.:21:20.

agree. We set out and Autumn Statement how we would increase

:21:21.:21:23.

investment in infrastructure. That is one of the challenges we face in

:21:24.:21:33.

raising this country's productivity. Skills is another. The deal in

:21:34.:21:41.

Swansea has the ability to boost productivity. The proposals have

:21:42.:21:49.

support of the Welsh Government, universities and local companies.

:21:50.:21:52.

When can we expect support from the government? Discussions are ongoing.

:21:53.:22:01.

I hope it will be concluded within the next eight days. I note the

:22:02.:22:09.

constructive meeting we had yesterday with representatives from

:22:10.:22:15.

across the beer and Pub sector. The Treasury has received representation

:22:16.:22:21.

from a number of other organisations and individuals with suggestions for

:22:22.:22:25.

what should be in the budget, including on beer duty. The pub and

:22:26.:22:35.

the beer industry contribute 10 billion in tax and employ 1 million

:22:36.:22:45.

people. In the last government, we have cut beer duty. Will she

:22:46.:22:55.

consider cutting beer duty? Of course we recognise the contribution

:22:56.:23:00.

of the beer and pubs industry across the UK. In particular, I am aware

:23:01.:23:05.

from my previous job the role that pubs have in promoting responsible

:23:06.:23:11.

drinking. It is worth noting that the public finances as soon alcohol

:23:12.:23:20.

duties rise by RPI each year, so there is a cost to freezing or

:23:21.:23:32.

lowering beer duty. Labour's law cider duty has led to a fantastic

:23:33.:23:37.

renaissance of cider drinking and orchard planting in England. If the

:23:38.:23:46.

differential is lowered further, it will do untold damage. I am well

:23:47.:23:51.

aware of the sensitivities around the duty bands and we have received

:23:52.:23:55.

a number of representations. I'm very aware of the Renaissance in the

:23:56.:23:59.

industry the honourable gentleman referred to, but also in the number

:24:00.:24:05.

of micro-breweries and the flourishing investment in that area.

:24:06.:24:09.

That have been an number of good news stories in this sector in

:24:10.:24:19.

recent years. Super-strength white ciders are very harmful and cheap.

:24:20.:24:29.

Will the government take seriously minimum unit price of alcohol? I am

:24:30.:24:36.

extremely well aware of the points he makes, not least because of the

:24:37.:24:39.

role I last held in government, and we look carefully at all these

:24:40.:24:46.

things, particularly regarding white cider. The government continues to

:24:47.:24:50.

support small businesses to access the finance the need to grow through

:24:51.:24:54.

the British business bank, which is supporting almost ?3.4 billion of

:24:55.:25:01.

finance, 254,000 smaller businesses. In the Autumn Statement, I asked for

:25:02.:25:06.

an additional ?400 million of funding for the bank. We doubled the

:25:07.:25:15.

small business rates relief. 600,000 small businesses occupy a third of

:25:16.:25:22.

all business properties and will pay no rates at all. The Federation of

:25:23.:25:30.

small business has researched into this and has said over a third of

:25:31.:25:35.

small businesses expect to see an increase in rates as of April. In my

:25:36.:25:43.

constituency, it has led to businesses telling me the expect to

:25:44.:25:49.

see jobs and businesses cut. Will he now commit to writing the wrong in

:25:50.:25:53.

his budget and will he support Labour's 5-point plan to help small

:25:54.:25:55.

businesses through the revaluation? The last thing small businesses

:25:56.:26:05.

needed help from the Labour Party. That would be the final straw for

:26:06.:26:12.

most of them. As we have already said, we recognise some small

:26:13.:26:16.

businesses are facing substantial percentage increases, even when the

:26:17.:26:23.

amounts may not be very large. That is difficult for businesses to

:26:24.:26:27.

absorb. We have committed to coming forward with the proposal that will

:26:28.:26:31.

address those most hard-hit by that phenomenon. The actual business

:26:32.:26:38.

rates payable by Tesco five minutes walk from the centre is ?220 per

:26:39.:26:44.

square metre where as the delicatessen in the centre of town

:26:45.:26:47.

will pay ?500 per square metre. Isn't this system of rating

:26:48.:26:56.

valuation needing to be re-examined? It is what it is and reflects the

:26:57.:27:01.

rental value of properties. I would readily acknowledge that in an

:27:02.:27:05.

economy which is changing shape rapidly, where the Digital economy

:27:06.:27:08.

plays a larger role and where some of our prisoners -- biggest

:27:09.:27:13.

businesses are not based on bricks and mortar, there are some

:27:14.:27:16.

significant challenges for us. We need to look at them. In the

:27:17.:27:20.

short-term and medium term, business rates play a vital role in providing

:27:21.:27:27.

revenue to the Exchequer and from 2020, it will be used to support

:27:28.:27:33.

local authorities. In York, many businesses playing -- paying

:27:34.:27:37.

inflated rates but from overseas landlords putting up the rateable

:27:38.:27:41.

value and business rates are sky-high. The revaluation has caused

:27:42.:27:46.

some businesses to have it increase in detriment to the local economy

:27:47.:27:51.

and the high street. But the Treasury work to put a review on the

:27:52.:27:54.

business rate system because the model is broken? I will say

:27:55.:28:01.

something more about the medium and longer term challenges around

:28:02.:28:04.

business rates when I deliver my budget of the House next week. She

:28:05.:28:11.

would not want to alarm anybody in her constituency and she will know

:28:12.:28:15.

that nobody will see their rates bill go up by 600%. Nobody will see

:28:16.:28:22.

their rates bill go up by 600% and the damping mechanism make that

:28:23.:28:29.

clear. Rateable values may go up by very significant amounts but I will

:28:30.:28:32.

have more to say next week about this. I welcome the Chancellor's

:28:33.:28:38.

promise to explain more in the budget next week as to what he will

:28:39.:28:42.

be doing about about business rates but does he recognise that in taxing

:28:43.:28:48.

our towns and villages around the UK, he is in danger of changing the

:28:49.:28:53.

culture at the heart of our community and not just raising money

:28:54.:28:58.

for the Exchequer? I recognise the concern my honourable friend

:28:59.:29:04.

outlines and it is for this reason as well as for reasons of the

:29:05.:29:08.

economic sustainability of individual businesses that we have

:29:09.:29:13.

said we will look at how we can best help those most seriously affected.

:29:14.:29:20.

Excellent businesses like dams bakery, Railway Tavern and Elsie's

:29:21.:29:28.

Kevin in areas like Crouch end have made representations. Can he confirm

:29:29.:29:31.

he will look at the business rates evaluation? What I can do is look at

:29:32.:29:38.

the business rates play valuation. That is an independent exercise that

:29:39.:29:42.

is undertaken by the valuation office agency. If past experience is

:29:43.:29:50.

anything to go by, of the 2 million business properties revalued, 1

:29:51.:29:54.

million will lodge appeals. There will be a process of reviewing the

:29:55.:29:58.

way the valuations have been conducted. What I have said I will

:29:59.:30:02.

do is look at those small businesses who are facing the largest increases

:30:03.:30:10.

and see how we can help them. Can I welcome the Chancellor's commitment

:30:11.:30:14.

to look again at small business rates, taxation and the budget. The

:30:15.:30:19.

big four supermarkets are getting a 6.9% cut in their business rates.

:30:20.:30:22.

Come the Chancellor consider setting that at zero and using that money to

:30:23.:30:29.

soften the blow on small businesses? I don't think that is the way to

:30:30.:30:34.

proceed. The business rates revaluation reflects the underlying

:30:35.:30:37.

value premises and it is an inconvenient fact that some large

:30:38.:30:43.

organisations have premises in low belly areas and some small

:30:44.:30:46.

organisations have premises in high-value areas. The Chancellor was

:30:47.:30:52.

right to talk about access to finance but most small businesses

:30:53.:30:57.

require and depend on lending from safe high street banks. Can I ask

:30:58.:31:00.

the Chancellor what discussions he has had with the banks to ensure

:31:01.:31:06.

they remain safe and continue to fund small businesses to benefit

:31:07.:31:10.

from the other fiscal measures? Dealing with the high-street banks,

:31:11.:31:15.

different high-street brands have different models but we have

:31:16.:31:19.

high-street banks who are progressively pursuing small and

:31:20.:31:26.

medium enterprise customers. I mean seeking their business, actively

:31:27.:31:30.

seeking their business. It is also important that we diversify the

:31:31.:31:34.

range of financing options available to small and medium enterprises and

:31:35.:31:37.

that is one of the reasons why we have pushed money through the small

:31:38.:31:41.

business bank to the media rates that can get equity and debt finance

:31:42.:31:49.

out to small and medium... The Chancellor will have seen the

:31:50.:31:54.

worrying signals from the US that the new President intends to roll

:31:55.:31:58.

back some of the regulation put in place to make banks safer. Can we

:31:59.:32:01.

have an assurance today that he doesn't intend to play follow my

:32:02.:32:05.

leader and deregulate the banks are necessarily here? We have a banking

:32:06.:32:11.

regulation system in the UK that does ensure our banks are safe and

:32:12.:32:17.

that it is tackling the two big to fail culture. We have a high level

:32:18.:32:23.

of confidence in our banking system and the reserve ratios of our banks

:32:24.:32:28.

are improving consistently. We don't want to do anything that would

:32:29.:32:33.

undermine that. Thank you for allowing me to join in today. The

:32:34.:32:39.

FSB has found over a third of small businesses will see significant

:32:40.:32:42.

increase in business rates whereas their four big superstores may see a

:32:43.:32:49.

5.9% reduction. Over 55% of those small businesses plan to reduce,

:32:50.:32:53.

postpone or cancel further investment. If the Chancellor is

:32:54.:32:58.

serious about addressing productivity, can he confirm what

:32:59.:33:00.

additional transitional relief you will provide to businesses facing a

:33:01.:33:09.

cliff edge? She is only repeating what I have acknowledged. Many small

:33:10.:33:13.

businesses that would be seeing big increases will be seeing them

:33:14.:33:18.

because they are coming out of small business rates relief and are facing

:33:19.:33:23.

the full rates regime for the first time. We understand the stress at

:33:24.:33:28.

that point as they come out of small business rates relief and we will be

:33:29.:33:31.

looking at how best we can address those who are worst affected by that

:33:32.:33:41.

phenomenon. The Government is taking action to give the UK the world's

:33:42.:33:45.

leading infrastructure it needs. The 1.7 billion superfast broadband

:33:46.:33:51.

programme will extend coverage to 95% of UK promises by the end of

:33:52.:34:01.

2017. We live in a period of unprecedented technological change

:34:02.:34:04.

and the Government should foster it in rural and urban areas. Can the

:34:05.:34:09.

secretary confirm that he will resist the cause of a new generation

:34:10.:34:18.

of Luddites to tax robots? I was going to make a joke about the Lib

:34:19.:34:24.

Dems but as they aren't in the Chamber, I will merely reassure my

:34:25.:34:27.

honourable friend that the Government has no current plans to

:34:28.:34:36.

introduce a robot tax. Current tax rules don't allow companies to set

:34:37.:34:41.

against tax the cost of research into mathematics. This is very out

:34:42.:34:46.

of date in an era of data signs and it is difficult from science and

:34:47.:34:50.

engineering. Good ministers take this as a budget representation

:34:51.:34:56.

please? We have significantly increased the tax credits and as a

:34:57.:34:59.

mathematician, I would agree that maths is always important. I would

:35:00.:35:10.

like to group this question would question 13. We recognise that the

:35:11.:35:14.

need to increase public spending on infrastructure is at the heart of

:35:15.:35:19.

our productivity agenda. That is why at Autumn Statement 2016 we

:35:20.:35:29.

committed ?23 billion additional capital to this. Commitment is made

:35:30.:35:33.

at Spending Review 2015, this means central Government investment in

:35:34.:35:41.

economic structure will rise by 60% between 2016/17 and 2020, 2021 from

:35:42.:35:50.

?14 billion to ?22 billion. I'm delighted the Chancellor has

:35:51.:35:55.

announced a ?25.7 million investment in Stubbington bypass. I commend my

:35:56.:36:06.

neighbour for her work. This is a great example of partnership and

:36:07.:36:11.

will be at catalyst for boosting jobs and creating jobs. At the

:36:12.:36:22.

bypass was well worth waiting for. It will support greater than

:36:23.:36:26.

development by improving access to the motor may Wake Road 27 and A27,

:36:27.:36:32.

allowing much-needed investment, creating new jobs but also enabling

:36:33.:36:38.

the development of 900 new homes. Where we can get transport

:36:39.:36:41.

infrastructure investment to perform, but also to help lower open

:36:42.:36:45.

up Langford of element for new homes, that is a double here. Can he

:36:46.:37:01.

confirm there will be infrastructure bonds and will he meet with funders

:37:02.:37:05.

to attract -- discuss their retractions? That is the lowest cost

:37:06.:37:18.

to the public purse. The Treasury does support bonds issued by the

:37:19.:37:22.

private sector through the UK guarantee scheme and that scheme

:37:23.:37:29.

will be extended. It has played a vital role in underwriting and

:37:30.:37:37.

guaranteeing finance for products. It allows a large number of projects

:37:38.:37:50.

without the Government guarantee. I agree on this answer. What steps has

:37:51.:37:53.

he taken to support and facilitate -- facilitate with them while

:37:54.:38:01.

Scotland on the lagoon project in Swansea following the Hendry review?

:38:02.:38:07.

We have received the Spending Review report and we are considering the

:38:08.:38:15.

merits of this and we are discussing it with the Welsh Government. Why

:38:16.:38:18.

does he believe the balance of infrastructure spending between the

:38:19.:38:27.

North and South East is fair? The Government is committed to

:38:28.:38:31.

addressing the infrastructure needs across the whole of the UK. We will

:38:32.:38:36.

look at how best to use the available infrastructure funds based

:38:37.:38:39.

on their value for money of the projects that are brought forward.

:38:40.:38:44.

Different regions of the country will receive different allegations

:38:45.:38:47.

according to the projects available in them for development. We have to

:38:48.:38:54.

be sensitive to the fact that lots of the -- lots of other people are

:38:55.:39:00.

trying to get in. It is knowing that other people want to take part. It

:39:01.:39:07.

is an elementary point. The Treasury discusses social care funding with

:39:08.:39:11.

the Department of Health and the Department for Communities and Local

:39:12.:39:13.

Government. We have introduced so cool -- social care presets and a

:39:14.:39:16.

grant for social care. Taken together those provided ?7.6 billion

:39:17.:39:23.

of dedicated funding for social care means councils can afford to

:39:24.:39:27.

increase spending on social care every year. The lack of funding for

:39:28.:39:32.

social care is having a devastating impact on those requiring care,

:39:33.:39:36.

carers and workers themselves. A 3% levy raises 2.8 million pounds watch

:39:37.:39:42.

Dale. It doesn't cover the cost of increasing the minimum wage for care

:39:43.:39:48.

workers. How does the Minister access that? It is not just about

:39:49.:39:53.

the council tax precept but we have got the better care fund coming in.

:39:54.:39:57.

We should accept this isn't just about money. There is a performance

:39:58.:40:03.

around the country and it is worth pointing out 50% of delayed

:40:04.:40:06.

discharges attributed to social care and they take place in only 24 local

:40:07.:40:13.

authority areas. Summaries have taken the difficult decision to

:40:14.:40:15.

increase council tax by 3% to protect social care including the

:40:16.:40:23.

island. Would the Secretary of State can -- consider finding ways to

:40:24.:40:26.

ensure councils have done all they can to help themselves and to

:40:27.:40:32.

recognise any Government support is made available now? My honourable

:40:33.:40:39.

friend raises an important point. There is a considerable amount of

:40:40.:40:42.

discretion of the local authorities in how much they want to prioritise

:40:43.:40:46.

social care. What is clear is the Government has given local

:40:47.:40:50.

authorities greater flexibility in terms of the council tax precept.

:40:51.:40:59.

In Number Ten. The government is focused on establishing city deals

:41:00.:41:16.

in Scotland. The government has published its White Paper on this

:41:17.:41:24.

strategy and is engaging with the Scottish Government. Having heard

:41:25.:41:29.

earlier of the investment in Yorkshire, what yet knowledge the

:41:30.:41:35.

Ayrshire growth deal would drive growth? As I have said before, we

:41:36.:41:50.

are focusing on city deals on cities. If the Scottish Government

:41:51.:41:55.

wishes to take forward projects to enable growth in Ayrshire, then it

:41:56.:42:03.

is able to do so. The UK's wine industry benefited from a duty frees

:42:04.:42:07.

of budget in 2015. The English wine industry is growing

:42:08.:42:26.

from strength to strength. In Sussex, there are five award-winning

:42:27.:42:33.

vineyards. At 2% reduction in duty would generate an extra ?358 million

:42:34.:42:40.

for the Treasury. Will it be considered next week in the budget?

:42:41.:42:44.

I heard these arguments directly from the Wine and spirits

:42:45.:42:48.

Association recently, along with parliamentary representatives from

:42:49.:42:54.

the all-party group. I listened carefully to the budget

:42:55.:43:01.

representations. We are ambitious for the deal. It is clear that in

:43:02.:43:13.

the interests of both sides, it is the end result which is important.

:43:14.:43:22.

US banks can locate subsidiaries in the UK and trade freely across

:43:23.:43:27.

Europe. What are the prospects for keeping all those jobs in the UK

:43:28.:43:33.

after Brexit? We want to ensure that British companies have the maximum

:43:34.:43:37.

freedom to trade and operate within European markets. Financial services

:43:38.:43:41.

is one of the areas where we have bold and ambitious agreement that we

:43:42.:43:47.

will be seeking. As the Minister continues his discussions on

:43:48.:43:53.

passports, will he ensure he maintains dialogue with trade bodies

:43:54.:43:55.

to make sure we have the best possible settlement? The Treasury is

:43:56.:44:04.

listening. We want the best possible deal and we should be clear, it is

:44:05.:44:08.

the end result not the mechanism which is important. I'm pleased to

:44:09.:44:23.

say the government is taking action. It is forecast to be 2.8% higher in

:44:24.:44:31.

2021 than last year. There can be fewer things more tragic than a

:44:32.:44:37.

treasury department in denial. The collapse of the pound will lead to

:44:38.:44:43.

higher prices in food and household technology. When will his department

:44:44.:44:47.

get their head out of the sand and bring forward proposals to help

:44:48.:44:51.

boost disposable income so that people can meet rising costs.

:44:52.:45:01.

Average earnings growth has now it stripped growth for 27 consecutive

:45:02.:45:07.

months. The recent figures for the ONS say that exports have grown and

:45:08.:45:14.

imports have fallen. Is not good for jobs and the economy and for a

:45:15.:45:19.

People's employment? It is good for jobs and the economy and indeed in

:45:20.:45:25.

Scotland for the Scottish whiskey industry. Topical questions. Lucy

:45:26.:45:32.

Powell. As we approach the beginning of the UK's negotiations with the

:45:33.:45:37.

European Union, my responsible -- principal responsibility maintains

:45:38.:45:45.

delivering principal measures regarding resilience in our economy.

:45:46.:45:54.

The package I announce next week will meet this objective. Going to a

:45:55.:46:04.

four day week is an option some hard-pressed schools are having to

:46:05.:46:11.

consider. Will the Chancellor use his budget to invest in our future,

:46:12.:46:15.

reduced the productivity gap and ensure we have a high wage high

:46:16.:46:20.

skill economy? There was a slight disconnect in those questions, but I

:46:21.:46:28.

will do those things. Dealing with the skills gap will be at the centre

:46:29.:46:33.

of the budget. What steps is the government taking to support

:46:34.:46:41.

economic growth through investment in the transport infrastructure and

:46:42.:46:46.

also support for small businesses? The government is taking forward

:46:47.:46:51.

plans for the lower Thames crossing, as well as major road upgrades. We

:46:52.:46:56.

are establishing a Thames Estuary growth commission to set out a

:46:57.:47:03.

commission for growth in that area. Last week, the government denied

:47:04.:47:18.

disabled people access to payments. The previous Chancellor absorb the

:47:19.:47:23.

costs last year. Are disabled people being denied benefits because the

:47:24.:47:30.

Chancellor is refusing to absorb these costs of the tribunal

:47:31.:47:35.

decision? We are restoring parliament's original intention

:47:36.:47:38.

around these payments, ensuring they go to the people that they were

:47:39.:47:43.

intended to go to and making sure that the benefits cat that is in

:47:44.:47:48.

place, part of our fiscal rules, is able to be met. One of those people

:47:49.:47:59.

contacted us. She has diabetes, depression and anxiety. She will not

:48:00.:48:02.

be extended support the courts have awarded her. After the announcement

:48:03.:48:08.

last night of further austerity measures by individual departments,

:48:09.:48:12.

this government is about forcing departments to meet spending targets

:48:13.:48:19.

to support his tax giveaways to the wealthy. Cutting the top rate of

:48:20.:48:26.

income tax to 40p in this Parliament. Otherwise it is clear he

:48:27.:48:32.

will want tax giveaways for the wealthy few and austerity for the

:48:33.:48:38.

most vulnerable in our society. You will have to wait until next week to

:48:39.:48:42.

find out what my proposals are. Let me be clear. We have said we have no

:48:43.:48:48.

plans for further welfare reforms in this Parliament. The welfare reforms

:48:49.:48:52.

we have legislated for have to be delivered. Original intent of

:48:53.:48:56.

Parliament in legislating those reforms has to be insured. In

:48:57.:49:03.

constituencies in London suburbs like mine, ordinary family homes are

:49:04.:49:11.

cot by the upper level of stamp duty land attack. If people are not

:49:12.:49:18.

moving at that level, they are not moving further down. Is it time to

:49:19.:49:26.

look again at the unintended consequences of the upper level

:49:27.:49:36.

stamp duty tax? Reforms were adjusted for the vast majority of

:49:37.:49:40.

home buyers in 2014. All transactions up to ?937,000 note pay

:49:41.:49:48.

the same or less in stamp duty land tax. I am aware of the phenomenon he

:49:49.:49:54.

describes. We really don't have a clear consensus of the market impact

:49:55.:50:01.

of the higher rate of STL tea for properties at the upper end.

:50:02.:50:13.

Systemic maltreatment of businesses requires action. Does the Chancellor

:50:14.:50:18.

accept there is a case for imposing a duty of care on banks with their

:50:19.:50:26.

dealings with small or medium-sized enterprises. This is carefully being

:50:27.:50:37.

considered and it would not be appropriate for me to comment whilst

:50:38.:50:44.

this process is ongoing. I have been conducting a survey in my

:50:45.:50:49.

constituency. Many people have raised concerns about road safety in

:50:50.:50:54.

our towns and villages. Could he informed me of any additional

:50:55.:51:01.

funding available for road safety? She makes an important point. Road

:51:02.:51:09.

safety is a key priority for the ?15.2 billion road investment

:51:10.:51:13.

strategy. It's also a case that in November we announced additional

:51:14.:51:19.

?175 million to improve the most dangerous roads in the country.

:51:20.:51:23.

Cardinal has received ?70 million from the local growth fund,

:51:24.:51:27.

including for local roads investment. Today we find that

:51:28.:51:37.

Casemiro has paid zero in corporation tax. What more is the

:51:38.:51:44.

Chancellor going to do to stop profit-making companies avoiding tax

:51:45.:51:51.

on his watch? I can't discuss the affairs of an individual taxpayer in

:51:52.:51:56.

this House. This government and its immediate predecessor have taken

:51:57.:52:00.

more steps over seven years than the previous government did over its

:52:01.:52:06.

whole 13 years in office to address abuse of the tax system and

:52:07.:52:12.

aggressive tax avoidance. -- Cafe Nero. In the past year,

:52:13.:52:17.

international tourist rates and spend grew faster in the south-west

:52:18.:52:25.

than London. Given the Mayor of London's plans for a Hotel Levy,

:52:26.:52:28.

will the Chancellor look again at cutting the rate of VAT on tourism?

:52:29.:52:38.

I agree that when a man is tired of London he can visit Somerset. While

:52:39.:52:43.

tourism growth across the UK is indeed very welcome and the

:52:44.:52:45.

government will look at all opportunities to support it,

:52:46.:52:53.

reducing VAT would cost up to ?10 billion. Money which is needed to

:52:54.:52:56.

underpin our public services and help to deal with our deficit. Can I

:52:57.:53:11.

urge the Chancellor to listen regarding funding local authorities?

:53:12.:53:17.

I will take those comments as a budget submission and will pass it

:53:18.:53:24.

on to the Secretary of State for communities and local. Billions of

:53:25.:53:32.

pounds in VAT on customs duties is not accounted for. Will he look into

:53:33.:53:44.

the case at Amazon and eBay that the Treasury gets the money they are

:53:45.:53:49.

entitled? The measures are forecast to raised ?875 million by 2021 and I

:53:50.:53:57.

would update the host to the fact that HMRC has already seen over the

:53:58.:54:02.

last year more than a tenfold increase in online non-EU businesses

:54:03.:54:09.

applying to register for VAT. Before the election, his predecessor

:54:10.:54:15.

pledged support for improvements to the real line between London and

:54:16.:54:26.

Brighton. The report was never released. It will be released

:54:27.:54:34.

shortly. Even a small amount of household debt can turn out to be

:54:35.:54:40.

unaffordable for many. It can turn into a personal financial nightmare

:54:41.:54:44.

for them and their families. When will the Treasury response to the

:54:45.:54:48.

excellent breathing space proposals to help people who are really trying

:54:49.:54:54.

to get on top of their household debts and give them statutory

:54:55.:55:05.

protection from scrupulous ruthless loners? We will report in due course

:55:06.:55:12.

shortly. Unsecured consumer credit is rising now at a level last seen

:55:13.:55:18.

before at the banking crisis. Does the Chancellor accept that is

:55:19.:55:24.

unsustainable? It cannot go on forever. Households have some

:55:25.:55:29.

capacity for debt and consumer borrowing and consumer spending has

:55:30.:55:32.

been an important component of the robustness of the economy over the

:55:33.:55:39.

last few months. What I hope to see during 2017 is business investment

:55:40.:55:42.

and exports providing a greater share of the growth during this

:55:43.:55:50.

year. I welcome this government's healthy commitment to scientific

:55:51.:55:52.

spending over the last several years. It seems the business --

:55:53.:55:59.

business investment is below the OECD average. Will he look at

:56:00.:56:04.

measures to increase private company business expenditure on research?

:56:05.:56:10.

As the Chancellor announced, the Government is increasing investment

:56:11.:56:20.

in RND come rising to ?2 billion a year. We have made the RND tax

:56:21.:56:27.

regime much more generous. We want to make sure the UK remains an

:56:28.:56:38.

attractive place. Given the neglect of social care spending in the

:56:39.:56:43.

Autumn Statement, and the straws in the wind that will be put right in

:56:44.:56:48.

the budget, will the Chancellor take account of the fact that in

:56:49.:56:54.

authorities like Wirral, we are having to deal with ?45 billion of

:56:55.:57:01.

depression because of our older people needing help. The increasing

:57:02.:57:05.

council tax will deliver us 22 million. I find it best not to

:57:06.:57:13.

comment on straws in the wind but I would say I recognise the pressure

:57:14.:57:18.

that many authorities are under from underlying democratic -- demographic

:57:19.:57:24.

trends. We are alert to that concern and we will seek to address it in a

:57:25.:57:33.

sensible and measured way. For people moving into residential care

:57:34.:57:38.

homes, the means tests take into account the value of their home but

:57:39.:57:42.

if they were applying for a carer in the own home, the means test does

:57:43.:57:47.

not take into account the value of their home. Does the Chancellor

:57:48.:57:52.

agree there should be one system of means testing, whatever state

:57:53.:57:55.

funding people are applying for? Persist that my honourable friend

:57:56.:58:01.

refers to has been around for many years and predates the purchase

:58:02.:58:04.

agreements which all local authorities to people contributing

:58:05.:58:11.

to their care. We need to look not just at individual specific aspects

:58:12.:58:14.

of this challenge but we need to look broadly at the question of

:58:15.:58:18.

making social care funding sustainable for the future in the

:58:19.:58:24.

face of a rapidly ageing population. Since 1994, the Government has

:58:25.:58:29.

received ?10 billion pension cash which could have benefited miners.

:58:30.:58:34.

The Treasury which says 153 million will be pocketed in the next three

:58:35.:58:38.

years. Will the Chancellor use the budget to look again at the

:58:39.:58:42.

injustice of the mine workers pension scheme? I have to say I

:58:43.:58:47.

don't recognise the numbers the honourable lady has given to the

:58:48.:58:52.

House but I will look at them and I will write to her accordingly. If

:58:53.:58:59.

that -- estate agents report that the number of transactions prime

:59:00.:59:01.

properties in London and elsewhere has fallen by 50% last year and the

:59:02.:59:07.

beginning of this year is even worse than the year before. If it were

:59:08.:59:12.

proven that tax revenues had fallen as a result of this profit --

:59:13.:59:16.

policy, would he be willing to review and change it? We have

:59:17.:59:22.

mentioned that there isn't a consensus of -- on what the data is

:59:23.:59:26.

saying but we keep them under constant review. Oil and gas

:59:27.:59:36.

received a passing mention in the industrial strategy and it was

:59:37.:59:40.

classed as a low priority in terms of the Brexit negotiations. Could

:59:41.:59:43.

the Chancellor commit to doing something to support the future of

:59:44.:59:48.

the oil and gas industry in the budget next week? She will have to

:59:49.:59:53.

wait and see that I am well aware of the concerns the industry is

:59:54.:59:57.

expressing. She has met with industry representatives and we

:59:58.:00:03.

understand what their principles are. Will he give a guarantee to the

:00:04.:00:08.

House that the details of the budget will be first revealed to this house

:00:09.:00:12.

and that we will not find out the details in the budget in this

:00:13.:00:21.

weekend's press? What I can do is give my honourable friend a

:00:22.:00:25.

guarantee that I will follow all proper procedures. I can't give him

:00:26.:00:30.

a guarantee that my following all probably sieges will lead to the

:00:31.:00:39.

outcome that he seeks. The former Chancellor said we -- withdrawn from

:00:40.:00:43.

the single market will be the biggest neglect of protectionism in

:00:44.:00:46.

the history of the UK and the Government has chosen not to make

:00:47.:00:49.

the Government priority. Is he launching a soft coup or has he got

:00:50.:00:54.

this Government bank to write for his economic vandalism? The

:00:55.:00:59.

gentleman understands very well that being a member of the single market

:01:00.:01:03.

was not an option for the UK given the clear views expressed by the

:01:04.:01:11.

electorate in the referendum. Having comprehensive access to the single

:01:12.:01:15.

market will deliver the great majority of the benefits that the

:01:16.:01:20.

honourable gentleman seeks from single market membership. 100,000 UK

:01:21.:01:25.

businesses are registered companies in the Republic of Ireland to hedge

:01:26.:01:30.

their best -- that's about the policy uncertainty caused by the

:01:31.:01:33.

Vote Leave the European Union. Can he urges Cabinet colleagues to give

:01:34.:01:38.

policy and regulatory certainty to industries like the chemical

:01:39.:01:41.

industry who want waiting to see what the Government is doing but

:01:42.:01:46.

simply haemorrhaging jobs and investment out of this country? I

:01:47.:01:54.

agree that certainty as soon as possible is important and

:01:55.:01:57.

understanding what is implement -- what is implemented will look like

:01:58.:02:00.

and what timescale is also important. I would urge her not to

:02:01.:02:07.

be hysterical about these things. Many companies are making

:02:08.:02:20.

contingency plans, including setting up and incorporating subsidiaries in

:02:21.:02:25.

other European Union countries. It is another step altogether to be

:02:26.:02:29.

moving jobs and enterprises abroad. Most of the companies we talked to

:02:30.:02:33.

have made clear there is more time yet for them to be reassured Jim

:02:34.:02:37.

this process before we see a revocable moves. The Treasury

:02:38.:02:48.

supported a launch assessment infrastructure report. It states

:02:49.:02:55.

clear where carbon capture and storage is required. Will the

:02:56.:02:58.

Treasury do the right thing and reinstate the funding for carbon

:02:59.:03:06.

capture storage? I was talking about carbon capture and storage and it is

:03:07.:03:11.

a matter for my right honourable friend, the Secretary of State and I

:03:12.:03:16.

will raise with him the point of the honourable gentleman has made. If it

:03:17.:03:23.

flows from discussions, point of order, Mary Creagh. In response to

:03:24.:03:29.

my question, the Chancellor of the Exchequer accuse me of being

:03:30.:03:32.

hysterical. Can we have a ruling from you as to whether this sort of

:03:33.:03:37.

sexist language to use to diminish women who make a reasonable point,

:03:38.:03:41.

that is the language that would not

:03:42.:03:42.

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