:00:00. > :00:09.of Parliament at 11pm. First, questions to the Chancellor Philip
:00:10. > :00:14.Hammond and his team of ministers. Mr Speaker, in 2010 we inherited the
:00:15. > :00:21.UK's largest deficit since the Second World War at 9.9% of GDP. We
:00:22. > :00:25.set out a clear fiscal framework to restore confidence in the economy
:00:26. > :00:30.and reduce the deficit, which has subsequently fallen by over two
:00:31. > :00:34.thirds. We've delivered the lowest corporation tax rate in the T20 and
:00:35. > :00:38.cut employment costs through the employment allowance. Our
:00:39. > :00:45.unemployment rate is its lowest level in over 40 years. Since 2010
:00:46. > :00:51.we seem to 3 million more people find work. With the economy
:00:52. > :00:54.operating at near record high employment, our focus now must be to
:00:55. > :01:01.increase productivity and does real wage growth. Despite all the fear
:01:02. > :01:06.mongering from many including across the other side of this House, since
:01:07. > :01:10.the Brexit referendum, can my right honourable friend confirm we have
:01:11. > :01:12.the best growth rates in the whole of Europe, the best inward
:01:13. > :01:18.investment rates and the lowest unemployment rates for four decades?
:01:19. > :01:22.Is this not a ringing endorsement of this government's policies? My
:01:23. > :01:27.honourable friend is absolutely right that we have the lowest
:01:28. > :01:32.unemployment rate for four decades, that is a remarkable achievement.
:01:33. > :01:37.The British economy has performed with remarkable resilience since
:01:38. > :01:42.June 2016. Last year we had the second highest growth rate in the G7
:01:43. > :01:48.countries. The British economy is fundamentally strong and resilient.
:01:49. > :01:51.Yes we face some short-term uncertainty but underneath that
:01:52. > :01:55.uncertainty is a strong and resilient economy ready to go
:01:56. > :02:01.forward and reap the benefits available in the future. The
:02:02. > :02:05.Chancellor was talking about the fiscal consequences, the
:02:06. > :02:08.unemployment consequences, if a transition the long Brexit isn't
:02:09. > :02:15.achieved by the first quarter of next year. He was right a fortnight
:02:16. > :02:20.ago. What is the Chancellor doing to help secure a specific transition
:02:21. > :02:24.agreement in the first quarter of the next year? While we are
:02:25. > :02:27.preparing for all outcomes in our negotiations, the government
:02:28. > :02:31.objective is to reach a deal. As the Prime Minister made clear in her
:02:32. > :02:35.Florence speech, as part of that deal we want to agree an
:02:36. > :02:38.implementation period during which businesses and governments can
:02:39. > :02:43.prepare for the new relationship. We want to agree the principles as soon
:02:44. > :02:49.as possible. Last week at the European Council, the 27 agreed to
:02:50. > :02:51.start internal preparatory discussions on guidelines in
:02:52. > :02:55.relation to an implementation period. Together with the broad
:02:56. > :02:58.support in Parliament, this should give British businesses confidence
:02:59. > :03:02.we are going to provide them with the certainty they require. With the
:03:03. > :03:07.Chancellor welcome the fact there are more women in work than ever
:03:08. > :03:10.before, and set out what steps we can take to ensure this is one of
:03:11. > :03:15.the best countries in the world for women to setup and run their own
:03:16. > :03:19.businesses? That is one of the remarkable achievements of the last
:03:20. > :03:23.seven years. The increase in participation in the workforce and
:03:24. > :03:27.particularly the increase in the number of women participating in the
:03:28. > :03:32.workforce. That is in large part due to family friendly policies this
:03:33. > :03:38.government has pursued, with huge increases in the availability of
:03:39. > :03:43.child care, free childcare. Huge increases in the tax deductibility
:03:44. > :03:47.of childcare. We will continue to drive a set of policies which
:03:48. > :03:51.encourage women into the workforce, both because it's economically
:03:52. > :03:57.sensible and because it's socially inclusive. One of the biggest fiscal
:03:58. > :04:00.steps that can be taken to reduce unemployment is public sector
:04:01. > :04:05.investment in housing. Can I therefore welcome the Communities
:04:06. > :04:09.Secretary's statement yesterday that the Treasury has agreed to increase
:04:10. > :04:14.net borrowing by 50 billion in order to enable this to happen, will he
:04:15. > :04:20.confirm this is government policy? LAUGHTER Know, and that was not what
:04:21. > :04:25.my right honourable friend said. As the right honourable gentleman
:04:26. > :04:28.knows. I would agree with him that increasing activity in the
:04:29. > :04:34.construction sector is a very good way of creating jobs, but he will
:04:35. > :04:41.know that at 4.3% our economy is approaching full employment. The
:04:42. > :04:47.optic gap is extremely small. -- output gap. Given there are more
:04:48. > :04:52.people in employment there is more opportunity for people to take
:04:53. > :04:55.advantage of employee sharing saving schemes. The maximum amount of time
:04:56. > :05:00.you can pause one of those schemes is six months which mean many women
:05:01. > :05:03.on maternity leave house to cash in their schemes and can't take
:05:04. > :05:07.advantage of them to maximum effect. I'm sure this is an up-to-date
:05:08. > :05:13.anomaly. We'll be Chancellor extend the period of time that an employee
:05:14. > :05:17.savings scheme can be paused with 12 months, so women maternity leave can
:05:18. > :05:25.enjoy the same benefits as everyone else? The word employment and
:05:26. > :05:30.employee, it just about got in order. I'm sure he did, Mr Speaker.
:05:31. > :05:35.My honourable friend raises a technical point which has been
:05:36. > :05:48.raised with me by others. I will take what he said today and look at
:05:49. > :05:54.it carefully. Getting couples into work is one of the best ways of
:05:55. > :05:57.reducing family poverty and protecting women economically for
:05:58. > :06:01.the future. Rather than putting money into continuing to increase
:06:02. > :06:07.the tax threshold which rarely benefits low-income families, will
:06:08. > :06:13.the chance to look budget again which is a real deterrent? The
:06:14. > :06:18.government has made commitments around the personal allowance and
:06:19. > :06:25.high rate threshold in its election manifesto. We've reiterated them in
:06:26. > :06:29.the 2017 manifesto and remain committed to those policies. Of
:06:30. > :06:32.course I will take into account all representations received from
:06:33. > :06:36.honourable and Right honourable members of this House and take her
:06:37. > :06:42.comments on the workarounds as such a representative. I'd like to thank
:06:43. > :06:45.my right honourable friend for his work on the London Finance
:06:46. > :06:49.commission which recommended giving London a wide range of additional
:06:50. > :06:55.powers. The government has committed to continue to work with the GLA and
:06:56. > :06:58.London councils to eschew a London maintains its status as a world
:06:59. > :07:04.leading city -- in London maintains its status. Would right honourable
:07:05. > :07:09.friend particularly consider the means whereby an element of fiscal
:07:10. > :07:13.devolution, for example by tourist levy, might be part of a robust
:07:14. > :07:22.funding package for Crossrail to which is a critical part of National
:07:23. > :07:26.infrastructure? As my honourable friend is aware, the Department for
:07:27. > :07:31.Transport is scrutinising the business case for Crossrail and
:07:32. > :07:35.discussing that with TfL. It is right that the London region doesn't
:07:36. > :07:37.retain disproportionate amounts of revenue and some of the
:07:38. > :07:44.recommendations are broad ranging in the report. If the ministerial team
:07:45. > :07:49.are to deliver anything for the London Finance commission, will he
:07:50. > :07:52.talk to them about their difficulty now, with Brexit coming, of
:07:53. > :07:57.recruiting anyone to come and work and live in London? The search for
:07:58. > :08:01.talent is very, very difficult indeed. No one wants to come and
:08:02. > :08:06.work in this capital because Brexit, what's he going to do about it? The
:08:07. > :08:11.honourable gentleman needs to question whether members on his own
:08:12. > :08:14.side who fully signed up to the recommendations of the London
:08:15. > :08:18.planning commission, for example retaining almost half of all stamp
:08:19. > :08:27.duty across England, may be an issue many of his colleagues don't
:08:28. > :08:31.support. Mr Speaker, the UK internal market benefits all the nations and
:08:32. > :08:37.regions of the United Kingdom and it is essential that no new barriers to
:08:38. > :08:42.living and doing business within the UK are created. Exports to the rest
:08:43. > :08:47.of the UK are vital to the success of Scotland's economy, generating
:08:48. > :08:52.?50 billion in 2015. This compares to ?12 billion of exports to the EU
:08:53. > :08:59.and 16 billion to the rest of the world and accounts for 63% of
:09:00. > :09:05.Scotland's total exports. I'm delighted that the number of
:09:06. > :09:09.registered enterprises has gone up by 18% in East Renfrewshire since
:09:10. > :09:13.2010. As these businesses look to expand from local to national
:09:14. > :09:17.players, maintaining the integrity of the UK internal market is vital
:09:18. > :09:21.and any moves to fragment it would damage the Scottish economy, place
:09:22. > :09:25.huge barriers to trade and that that vital contribution in jeopardy. I
:09:26. > :09:29.would strongly agree with my honourable friend that fragmentation
:09:30. > :09:32.of the UK internal market would be damaging for the Scottish economy
:09:33. > :09:38.and her small businesses in particular. This isn't just an issue
:09:39. > :09:41.for Scotland. We all agree that protecting the UK internal market is
:09:42. > :09:44.in our shared interests and the government will work to make sure
:09:45. > :09:52.there are no new barriers to doing business across the UK. Mr Speaker,
:09:53. > :10:00.staying in the internal market while the UK crashes out of the EU is set
:10:01. > :10:04.to cost Scotland ?30 billion over five years according to London
:10:05. > :10:08.School of economics research published today. Aberdeen is set to
:10:09. > :10:12.lose the most at 7% of GDA. Well the chance to be clear that on behalf of
:10:13. > :10:18.his government, that no deal is not an option? As I've already said
:10:19. > :10:23.earlier, the government is preparing for all possible outcomes of the
:10:24. > :10:26.negotiations with the European Union, as any prudent government
:10:27. > :10:30.would. The Prime Minister has made it very clear that our strong
:10:31. > :10:35.preference is to achieve a deal that is good for Britain, which protects
:10:36. > :10:42.British jobs, businesses and prosperity. The prosperity, jobs and
:10:43. > :10:47.businesses of all of the UK. On that note, 56% of EU nationals in fits
:10:48. > :10:50.the 250 companies are highly likely or quite likely to leave the UK
:10:51. > :10:57.before the conclusion of the Brexit negotiations. What is his assessment
:10:58. > :11:02.of the impact on the Scottish economy of all of this talent
:11:03. > :11:07.leaving the UK? I'm very confident that whatever the outcome, all of
:11:08. > :11:11.this talent will not leave. The Prime Minister made very clear
:11:12. > :11:15.yesterday that her top priority remains giving students to EU
:11:16. > :11:23.citizens living in the UK, and that is why she is working hard on the
:11:24. > :11:26.deal for our citizens. It is the area in which our discussions are
:11:27. > :11:29.most advanced and the honourable lady has the Prime Minister's
:11:30. > :11:30.personal commitment of the importance she attaches to that
:11:31. > :11:40.area. With financial and accounting
:11:41. > :11:47.services amounting to the most valuable export service, with ?7.6
:11:48. > :11:52.billion, or 86% going to the rest of the UK, does my right honourable
:11:53. > :11:56.friend agree that the internal market is vital in preserving this
:11:57. > :12:01.important sector of the economy. My honourable friend is right to draw
:12:02. > :12:05.attention to the important role of financial services and insurance in
:12:06. > :12:10.the Scottish economy. As a subset of the broader point that the internal
:12:11. > :12:15.market works extremely well for Scotland is very important to
:12:16. > :12:19.Scotland's exports. It would clearly be catastrophic for the financial
:12:20. > :12:23.insurance sector if businesses based in Scotland were no longer able to
:12:24. > :12:29.operate across the border into England. If I understand correctly,
:12:30. > :12:34.you have SNP members who understand the benefits of the European single
:12:35. > :12:39.market but not the UK single market? We have fanatics in the Conservative
:12:40. > :12:43.Party who would happily drive the coach and horses through the
:12:44. > :12:49.European single market. Perhaps in characteristic fashion, the
:12:50. > :12:52.Chancellor can set out a growing opposition and show what is in the
:12:53. > :12:57.interest of the government's economy. It's clear, the benefits of
:12:58. > :13:01.the UK internal market are absolutely clear to all of us and we
:13:02. > :13:06.will not allow the UK internal market to be compromised. In our
:13:07. > :13:09.negotiations with the EU, we hope and expect to agree a deal which
:13:10. > :13:14.would allow British businesses to continue to enjoy the benefits of
:13:15. > :13:17.access to the European marketplace and European companies to continue
:13:18. > :13:27.to enjoy the benefits of access to the UK market. Thank you, Mr
:13:28. > :13:30.Speaker. The government is investing over ?1 billion to stimulate the
:13:31. > :13:34.market to build the next generation of digital infrastructure the UK
:13:35. > :13:44.needs for the future. This includes the ?400 million infrastructure fund
:13:45. > :13:51.and ?740 million for broadband and 5G programme, it is an extension to
:13:52. > :13:56.the programme to cover 95% of UK premises at the end of the year. My
:13:57. > :13:59.constituency now enjoy superfast broadband but still a small number
:14:00. > :14:10.in rural areas struggle with access to broadband and also to good for G
:14:11. > :14:18.or 3G coverage, what can they do to ensure that we are getting all of
:14:19. > :14:21.the coverage that we pay for? The government is working to continue
:14:22. > :14:26.progress on the superfast broadband roll-out. We expect to reach 95% by
:14:27. > :14:30.the end of the year. We have seen some changes from the internal
:14:31. > :14:33.reorganisation with the British Telecom setting out open Reach, that
:14:34. > :14:37.progress will be maintained through government expenditure in that
:14:38. > :14:43.programme and in the digital investment fund. The APR have just
:14:44. > :14:49.reported on the poor productivity record in this country, investment
:14:50. > :14:54.in broadband is crucial to improving this. So, when is the minister going
:14:55. > :15:03.to respond to the letter I wrote to him on the 1st of September about
:15:04. > :15:07.broadband in Teesdale? I absolutely agree that broadband and digital
:15:08. > :15:11.progress is critical to the productivity of the economy. I'm
:15:12. > :15:19.unaware of the letter, I will look into it with immediate effect and
:15:20. > :15:20.apologise for the delay. As the fourth industrial resolution
:15:21. > :15:25.accelerates, superfast broadband will be key to the productivity of
:15:26. > :15:30.technology business -- revolution. Will the Minister continue to work
:15:31. > :15:34.with businesses to ensure they get the broadband they need? I certainly
:15:35. > :15:39.will continue to work with Agricola. Durable gentleman has spoken for
:15:40. > :15:44.enterprise and businesses consistently since he came to the
:15:45. > :15:47.house, the intention to pursue broadband investment, whether
:15:48. > :15:56.superfast awful fibre, is at the heart of efforts to improve
:15:57. > :16:02.productivity. -- whether superfast or fibre. There are still parts of
:16:03. > :16:06.my constituency both rural and urban, such as the town of
:16:07. > :16:14.Carrickfergus, where broadband coverage is still very poor. BT
:16:15. > :16:17.refuse to look at innovative ways of spreading the network. Is it time
:16:18. > :16:24.for the government to look for other bits of money where it is investing
:16:25. > :16:28.in broadband to ensure there is better coverage? The honourable
:16:29. > :16:31.gentleman makes an important point, that all of our constituencies have
:16:32. > :16:37.some areas that are not fully able to access the important benefits
:16:38. > :16:40.that come from broadband. I will take his point and discuss them with
:16:41. > :16:46.my colleagues and report back to him. Thank you, Mr Speaker. I'm
:16:47. > :16:53.pleased the Communities Secretary has been inspired by Labour's
:16:54. > :17:00.credibility rule in relation to infrastructure including digital and
:17:01. > :17:03.in the form of house building. It begs crucial questions. Does the
:17:04. > :17:09.Minister support his colleagues bid to borrow more to invest, to use the
:17:10. > :17:19.quote, or is it a bid to steal the Chancellor's job? The government's
:17:20. > :17:26.progress on broadband, as I outlined, was a speculative comment
:17:27. > :17:30.regarding the forthcoming budget. The right honourable gentleman can
:17:31. > :17:35.answer that question. That response about plans in relation to digital
:17:36. > :17:40.infrastructure are quite wholly inadequate, as indicated by my
:17:41. > :17:45.honourable friend, is the minister aware that productivity figures are
:17:46. > :17:48.at precrisis levels? Is he aware that regional industries are up to
:17:49. > :17:52.seven times more productive than others? What is the digital
:17:53. > :17:58.investment strategy doing to close that shocking gap? The honourable
:17:59. > :18:03.gentleman seems to have forgotten we have the announcement of the red
:18:04. > :18:07.tipped investment fund, a ?23 billion pot of money going into
:18:08. > :18:12.investments, and digital infrastructure up and down the
:18:13. > :18:20.country. We mention the ?400 million investment fund and the ?740 million
:18:21. > :18:23.on full broadband and 5G. We are approaching 95% of UK premises
:18:24. > :18:27.having access to superfast broadband by the end of the year. It puts us
:18:28. > :18:35.in a very strong place for the future. Mr Speaker, the government
:18:36. > :18:40.is committed to reducing the administrative burdens for small and
:18:41. > :18:46.medium-sized enterprises, including in the East Midlands. That's why we
:18:47. > :18:50.have delivered ?272 million in net reductions between 2011 and 2015
:18:51. > :18:58.which is why we continue to reduce unnecessary interaction with the
:18:59. > :19:03.taxpayer. We have one of the longest tax codes in the world, the Treasury
:19:04. > :19:06.are under extra pressure to bung money to certain interest groups but
:19:07. > :19:12.may I suggest that he sticks to the Treasury bench and argues the case
:19:13. > :19:15.for less taxation, simpler taxation and less debt. That's the best
:19:16. > :19:21.service we can give to the young and our businesses. My right honourable
:19:22. > :19:26.friend raises an important point about complexity which is why we
:19:27. > :19:29.continue to work with the office for tax simplification to ensure our tax
:19:30. > :19:36.code is as simple as it can be but there is no doubt, Mr Speaker, that
:19:37. > :19:42.in terms of holding our exemplary record on evasion and noncompliance,
:19:43. > :19:46.?160 billion of revenue since 2010-2015, we make no apologies for
:19:47. > :19:53.having a tax code that works to support our public services. There
:19:54. > :19:57.are currently 130,000 small and medium-sized exporting businesses
:19:58. > :20:01.that export to Europe that currently have to deal with no bureaucracy at
:20:02. > :20:05.our border to export that could do so, if his colleagues have their
:20:06. > :20:12.way. Does he think such bureaucracy will be good for British business,
:20:13. > :20:15.or less good for British business? As the honourable lady will know, we
:20:16. > :20:20.are in the middle of negotiations with our European partners. I'm
:20:21. > :20:22.confident, as the Prime Minister expressed at every turn, that we
:20:23. > :20:27.will secure a good deal for this country and in the context about or
:20:28. > :20:30.borders it means that it will be as frictionless as possible, which will
:20:31. > :20:36.be good for trade, our country and the economy. Thank you, Mr Speaker.
:20:37. > :20:40.Does the Minister agree that the party opposite's plans to raise
:20:41. > :20:50.corporation tax will harm small and medium-sized businesses ... Just for
:20:51. > :20:57.the benefit of the honourable gentleman, the government's was --
:20:58. > :21:02.the party's plans are not the responsibility of the government. We
:21:03. > :21:07.have learned that today. Across the United Kingdom, small and medium
:21:08. > :21:11.businesses have created thousands of jobs. Small and medium businesses
:21:12. > :21:15.tell me that they are overregulated and they have bureaucracy which
:21:16. > :21:22.restricts ability to employ more people. May I ask what he is doing
:21:23. > :21:26.to address that? The honourable member is absolutely right, and the
:21:27. > :21:30.critical importance of small and medium sized enterprises, we have
:21:31. > :21:34.500 million small businesses in the country, at the heart of generating
:21:35. > :21:39.the wealth and tax which support public services that we all wish to
:21:40. > :21:44.see thriving. We are working closely with the office for tax have
:21:45. > :21:48.occasion ensure wherever possible, the government is out of the way a
:21:49. > :21:57.business rather than standing in the way. Mr Speaker, the gender pay gap
:21:58. > :22:05.in the public sector is 18.3%, which is a record low. This compares to
:22:06. > :22:09.24.5% in the private sector. I'm grateful to my right honourable
:22:10. > :22:13.friend for those comments, would she explain how the new duty, introduced
:22:14. > :22:15.by this government, on public sector bodies publishing the differences
:22:16. > :22:19.between male and female pay would support the trend of an ever
:22:20. > :22:26.reducing gender pay gap which is at a record low? The new duty
:22:27. > :22:30.introduced will be more transparent. We will be able to find out where
:22:31. > :22:34.the particular issues are in the public sector, for example
:22:35. > :22:38.occupations like engineering that are well paid that women are less
:22:39. > :22:52.likely to go into and what we can do to encourage women to apply for
:22:53. > :22:56.those roles. Medium public sector does the Minister agree with me that
:22:57. > :23:03.it's about time that hard-working public sector workers get the pay
:23:04. > :23:08.rise that they deserve? We have already been clear that pay review
:23:09. > :23:15.bodies will have the remit to be able to look at how they retain and
:23:16. > :23:18.recruit high-quality public sector workers across the board, whether
:23:19. > :23:28.that is teachers, nurses or police officers. The chief executive has
:23:29. > :23:31.given evidence to the Treasury Select Committee on the Treasury 's
:23:32. > :23:36.women in Finance Charter, she is the government's women in finance
:23:37. > :23:42.champion. To tackle the gender pay gap we need more women in senior
:23:43. > :23:45.roles. Can I say to the Chief Secretary if she could urge the
:23:46. > :23:48.Chancellor to reply to my letter that I wrote to him last week about
:23:49. > :23:51.apartments that the Bank of England were more senior women are needed
:23:52. > :23:57.because the evidence this morning gives the importance of role models?
:23:58. > :24:00.First, can I congratulate my honourable friend on the work that
:24:01. > :24:07.she did as women's minister in promoting these issues. It would be
:24:08. > :24:10.great to see other professions such as legal services looking at the
:24:11. > :24:15.success of women in finance charter, seeing what they can do as well. I
:24:16. > :24:24.will urge my colleague to reply to your letter ASAP! Hull in addition
:24:25. > :24:28.to the gender pay gap, the disability pay gap remains
:24:29. > :24:31.extraordinarily high. Yet, disabled people are not mentioned in the
:24:32. > :24:35.government's industrial strategy. When will we harness the potential
:24:36. > :24:43.of disabled people in the economy and create policies that effectively
:24:44. > :24:46.show this? The honourable lady is right to highlight the issue of
:24:47. > :24:52.making sure that disabled people have a full opportunity to
:24:53. > :24:56.participate, we are missing out on huge amounts of talent of disabled
:24:57. > :25:00.people, women and older people in the economy which we need to unleash
:25:01. > :25:05.to ensure the country becomes more productive and for the sake of those
:25:06. > :25:14.with so much to contribute. Number seven, Mr Speaker. Mr Speaker, last
:25:15. > :25:21.year public spending was 38.9% of GDP, which equates to about ?28,500
:25:22. > :25:27.per household. This is compatible with leading countries. I thank the
:25:28. > :25:33.Minister for her response and does she agree it is down to this
:25:34. > :25:40.government's response -- management of public finances that we spend
:25:41. > :25:44.more than Germany and Japan? My honourable friend is absolutely
:25:45. > :25:49.right, that we spend more per student on education than Germany
:25:50. > :25:54.does or Japan does. Because of our management of public finances, we've
:25:55. > :25:58.been able to push ?1.3 billion more in education spending to the front
:25:59. > :26:04.line, where it will make the most difference in classrooms. Is the
:26:05. > :26:08.Secretary concerned that the Bank of England will increase interest rates
:26:09. > :26:14.by 2.9% in November which will have an adverse effect on public
:26:15. > :26:19.spending? Of course, that is one of the reasons we need to ensure that
:26:20. > :26:23.we are reducing our debt and reducing our deficit to reduce
:26:24. > :26:25.interest payments as a result of the previous Labour government leaving
:26:26. > :26:34.us with the highest deficit in history. But we do have... We do
:26:35. > :26:38.have an independent Bank of England. It's very important, as government
:26:39. > :26:45.minister, I'm not telling them what to do on interest rates.
:26:46. > :26:52.In 2010, there was a significant gap between wages in the public and
:26:53. > :26:59.private sector, where public sector workers received an average of 5.76%
:27:00. > :27:03.higher pay. Today, wages are comparator all, and when you take
:27:04. > :27:11.into account more generous pension benefits, there's an additional 10%
:27:12. > :27:15.pension premium the public sector. Inflation last week was announced at
:27:16. > :27:20.3%. Public sector pay rises 1%. Could the Chief secretary confirm
:27:21. > :27:25.that that is a pay cut for millions of workers, and will she take from
:27:26. > :27:31.me as a budget representation, scrap the cap? It seems the honourable
:27:32. > :27:38.gentleman can't take yes for an answer. There isn't a public sector
:27:39. > :27:45.pay cap. What we have said is that individual secretaries of State will
:27:46. > :27:50.be responsible for making proposals on their workforce is dependent on
:27:51. > :27:53.specific circumstances. This is very different from the issues we are
:27:54. > :27:58.facing in the NHS or the Armed Forces. What's important is that we
:27:59. > :28:02.look at the evidence, we make sure we can recruit and retain the best
:28:03. > :28:06.possible workers in the public sector. We also need to make sure we
:28:07. > :28:12.don't price out of the market people working in the private sector too.
:28:13. > :28:15.Can the chief secretary urge her Cabinet colleagues when they are
:28:16. > :28:20.making those decisions to bear in mind that public sector pay rises
:28:21. > :28:25.must be both fair to public sector workers but also to the five sixths
:28:26. > :28:30.of workers in the private sector who also face the same pressures and
:28:31. > :28:35.challenges? The fact is we were left a legacy of a previous government
:28:36. > :28:40.that spent money they didn't have. We've had to get the public finances
:28:41. > :28:45.back on track. We do recognise there are areas where we need to make sure
:28:46. > :28:50.we can recruit and retain those high-quality public sector workers.
:28:51. > :28:53.We also need to make sure we've got a thriving private sector economy.
:28:54. > :29:00.That's why we've ended up with the lowest unemployment for 40 years...
:29:01. > :29:04.Thank you Mr Speaker. We know from the Resolution Foundation that this
:29:05. > :29:09.decade is the worst for wage growth in 210 years. When will the Chief
:29:10. > :29:15.Secretary to the Treasury ensure her department are fully funded to scrap
:29:16. > :29:19.the cap? The reason we have not seen the wage growth we want to see is we
:29:20. > :29:25.have an issue with productivity in this country. What we need to make
:29:26. > :29:31.sure in order to raise living standards for everybody regardless
:29:32. > :29:35.of where they work, is to raise that productivity. That's why we are
:29:36. > :29:38.investing in infrastructure, investing in skills, doing all those
:29:39. > :29:44.things the previous government didn't do to make our country more
:29:45. > :29:49.productive. Can my right honourable friend confirm for the avoidance of
:29:50. > :29:56.doubt, is there a pay premium for the public sector over the private
:29:57. > :30:01.sector? There is not a pay premium. Public sector and private sector pay
:30:02. > :30:07.is roughly comparator will, but in the public sector there is an
:30:08. > :30:11.average of 10% additional remuneration in terms of pension
:30:12. > :30:16.contributions. I hope the whole house will join me in congratulating
:30:17. > :30:28.the right honourable lady the member for Tatton on her significant
:30:29. > :30:33.birthday today. Esther McVey. Older, hopefully wiser, and for all the
:30:34. > :30:46.ladies who are at my age, hitting my stride and coming of age.
:30:47. > :30:52.I need to wish my right honourable friend many happy returns and
:30:53. > :30:56.confirm the government is taking big decisions for Britain's future and
:30:57. > :31:01.investing in transport infrastructure across the North.
:31:02. > :31:06.Last week we announced road investment in Cheshire of ?65
:31:07. > :31:09.million, including ?18 million of funding for five different local
:31:10. > :31:14.road schemes and ?47 million for the middle which bypass. This is on top
:31:15. > :31:22.of the improvements the government is already making. Esther McVey. I
:31:23. > :31:26.want to welcome the Minister's reply. The local Cheshire and
:31:27. > :31:34.Warrington Lepper has bold agenda for the increasing business and the
:31:35. > :31:37.plan has an equally bold agenda for increasing the number of houses,
:31:38. > :31:43.which will bring money to the Exchequer and also houses for the
:31:44. > :31:47.country's needing housing. What we need is the mid Cheshire rail line.
:31:48. > :31:53.Can I ask the team and the Chancellor to look at this for the
:31:54. > :31:58.forthcoming budget? We need to take that as a budget representation. The
:31:59. > :32:01.basic point is we are ambitious to unlock three transport investment
:32:02. > :32:05.both residential and commercial opportunity. It's been one of the
:32:06. > :32:11.features of government policies over the past few years and I'm sure that
:32:12. > :32:17.will continue. In Cheshire and across the whole of the North, the
:32:18. > :32:22.reality is that it is infrastructure investment that will unlock a
:32:23. > :32:24.productive capacity. Can the Minister recognise the
:32:25. > :32:28.disproportionality of investment per head between the south-east and the
:32:29. > :32:36.rest of the country is unacceptable and must change? The honourable
:32:37. > :32:41.gentleman simply mistaken in his assessment of the position.
:32:42. > :32:45.Government investment is broadly equal across the different regions
:32:46. > :32:51.of our country. I would highlight to him that the central government
:32:52. > :32:54.investment going into the North is ?13 billion during this spending
:32:55. > :33:01.period, which is a record in British history. Order. As a very
:33:02. > :33:05.distinguished chartered surveyor which the honourable gentleman is,
:33:06. > :33:10.he will know that the Cotswold is a very significant distance from the
:33:11. > :33:13.North or the North West. But we will look forward with eager anticipation
:33:14. > :33:22.to hearing the honourable gentleman at some later point. The government
:33:23. > :33:32.has reduced the deficit by well over two thirds, from a post-war high of
:33:33. > :33:37.9.9% of GDP in 2009-10 to a low. We haven't done this out of some
:33:38. > :33:43.ideological obsession. We've done it because the key challenge is to get
:33:44. > :33:46.debt falling to increase the resilience of our country. If the
:33:47. > :33:59.need for ever to arise we would have the capacity to support the economy
:34:00. > :34:02.against a future shock. I thank my honourable friend for that answer.
:34:03. > :34:06.Can I make one simple request about the budget which is whatever
:34:07. > :34:10.measures he announces, he resists the temptation to pay for them by
:34:11. > :34:17.billing our grandchildren. Instead, will he continue with the excellent
:34:18. > :34:21.work that has seen us slash the percentage of GDP, the record
:34:22. > :34:29.post-war deficit we inherited from the previous government. It is not
:34:30. > :34:32.responsible to make so-called hard choices by loading the price onto
:34:33. > :34:39.the next generation and generation before that -- after that. We have
:34:40. > :34:45.to make difficult decisions and bear the consequences. At ?65,000 per
:34:46. > :34:55.household, public debt in this country is far too high. We have
:34:56. > :34:59.announced plans to reduce the deficit in a measured and balanced
:35:00. > :35:08.way to ensure debt is falling as a share of GDP. We are still seeing
:35:09. > :35:14.companies like Microsoft and Apple saving hundreds of millions of
:35:15. > :35:16.pounds in corporation tax by booking sales in Ireland. Does my right
:35:17. > :35:32.honourable friend agreed that we need to develop measures to make
:35:33. > :35:36.companies pay tax in the UK. UK corporation tax is levied on profits
:35:37. > :35:43.generated by the activities of countries within the territory. The
:35:44. > :35:46.digital companies present us with a new challenge in attribute on
:35:47. > :35:51.profits effectively to individual jurisdictions. We are continuing to
:35:52. > :35:55.work with the task force on the Digital economy and also looking
:35:56. > :36:03.carefully at ideas emerging within the EU for interim solutions pending
:36:04. > :36:06.a full international solution. Given that the previous Chancellor has now
:36:07. > :36:09.said that in 2008 the Labour government did what was necessary in
:36:10. > :36:12.a difficult situation, will the Chancellor except the reason we have
:36:13. > :36:16.thousands of people going to food banks and desperately underpaid
:36:17. > :36:21.public sector workers is entirely the fault of Tory policy? No, Mr
:36:22. > :36:25.Speaker. Of course the government needs to be able to respond to an
:36:26. > :36:29.external shock. But a prudent government has got the economy in
:36:30. > :36:35.good shape to respond before that shock arises. The problem in 2008-9
:36:36. > :36:41.was that the then Labour government was borrowing tens of billions of
:36:42. > :36:52.pounds at the top of the economic cycle, grossly responsibly. It was
:36:53. > :36:56.of course the collapse in tax revenue following the global
:36:57. > :36:59.financial crisis in 2008, and yet that is exactly what we will face
:37:00. > :37:05.unless there is a transitional deal with the EU to allow our world
:37:06. > :37:09.leading financial services sector contributing ?66 billion a year in
:37:10. > :37:12.tax revenue to operate in the single market. We've been asking the
:37:13. > :37:17.government will yet to confirm there will be a transitional deal as today
:37:18. > :37:23.is the penultimate treasury questions before the end of the
:37:24. > :37:28.year, and perhaps the Chancellor 's last Treasury questions ever, will
:37:29. > :37:30.the government promised UK-based firms a transitional deal
:37:31. > :37:35.guaranteeing market access before the end of this year? As I've
:37:36. > :37:41.already said, the government has made clear, the Prime Minister set
:37:42. > :37:48.out in the front 's speech that we want to agree an implementation
:37:49. > :37:52.period as part of a deal with the European Union. We are encouraged
:37:53. > :37:56.that the 27 agreed to start internal preparatory discussions on
:37:57. > :38:00.guidelines in relation to an implementation period. We are
:38:01. > :38:04.confident that will give Jewish businesses the confidence we are
:38:05. > :38:13.going to provide them with the certainty they required -- that will
:38:14. > :38:17.give our businesses. Infrastructure is at the heart of the government's
:38:18. > :38:21.economic strategy and our investment will boost productivity and growth.
:38:22. > :38:28.Since 2010 a quarter of a trillion has been spent on public and private
:38:29. > :38:29.sector industry. The biggest investment in transport
:38:30. > :38:35.infrastructure in generations have been made possible by this
:38:36. > :38:39.government, will my honourable friend commit to further investment
:38:40. > :38:45.in our rail network, particularly at local commute to routes through
:38:46. > :38:49.Hazel Grove? This government is committed to the largest rail
:38:50. > :38:55.investment programme since Victorian times. Including investment in HST.
:38:56. > :38:59.You'll be aware of the announcement the Chancellor made in Manchester
:39:00. > :39:07.last month of ?300 million to improve connectivity to HS2 across
:39:08. > :39:14.the northern region. Can my right honourable friend confirm his
:39:15. > :39:19.commitment and will he commit to meeting with me and local leaders to
:39:20. > :39:24.discuss how we can deliver this change for our region? The
:39:25. > :39:27.government remains fully committed to agreeing both city deals and
:39:28. > :39:31.working constructively with the Scottish Government and with local
:39:32. > :39:39.partners. I am very happy to meet with my honourable friend to discuss
:39:40. > :39:42.this further. A decent transport infrastructure is an essential
:39:43. > :39:46.platform in economic rate. The Minister will be aware investment in
:39:47. > :39:51.the north-east is only ?200 per head as opposed to ?2000 per head in
:39:52. > :39:55.London on public transport. Will he now commit to investing in the
:39:56. > :40:03.north-east, in the Tyne and we're metro, public money, not some
:40:04. > :40:05.private Finance initiative? The government is committed to
:40:06. > :40:09.increasing investment across all regions. It is 30% higher than it
:40:10. > :40:14.was under the Labour government. It would be better for the members
:40:15. > :40:17.opposite to recognise the record investment going into infrastructure
:40:18. > :40:23.which is driving productivity and growth. Will the Minister say how
:40:24. > :40:27.much investment is going into the West Midlands, as it's very
:40:28. > :40:31.important to the British economy? The investment that is going into
:40:32. > :40:34.the West Midlands as part of the Midland engine and through the
:40:35. > :40:39.devolution deal is part of the wider investment going in, the 23 billion
:40:40. > :40:42.that has been announced in investment through the National
:40:43. > :40:47.investment productivity plan. You'll be aware of the investment from the
:40:48. > :41:01.Secretary of State of the spending on rail between 2019 and 24.
:41:02. > :41:09.Since 2010, HMRC has secured more than ?53 billion from big business
:41:10. > :41:13.is alone in additional tax revenue from tackling tax evasion, avoidance
:41:14. > :41:17.and noncompliance. We have made it an offence for a corporate failed to
:41:18. > :41:24.prevent the facilitation of tax evasion by their employees.
:41:25. > :41:25.Corporation tax revenues where ?55.3 billion in 2017, the highest on
:41:26. > :41:33.record. Mr Speaker, keeping up pressure on
:41:34. > :41:43.multinationals to pay their fair share in taxes by till, will the tax
:41:44. > :41:47.revenue collected since 2010 by HMRC avoid evasion, making the UK tax cut
:41:48. > :41:52.one of the lowest in the world? My honourable friend is absolutely
:41:53. > :41:58.right, 160 billion since 2010, far more than what was raised in the 13
:41:59. > :42:06.years by the party opposite. The tax gap figures of 6.5%, better than any
:42:07. > :42:11.year and a Labour, 2005- 06 it was as high as 8.3%.
:42:12. > :42:17.Successive cuts to British corporation tax have manifestly not
:42:18. > :42:23.lead to greater business investment and according to the IFS, they are
:42:24. > :42:29.not due to greater receipt since 2010. Will the Chancellor delay
:42:30. > :42:33.proposed cuts to corporation tax? I'm surprised that the honourable
:42:34. > :42:37.lady should raise the issue of corporation tax, because we have
:42:38. > :42:42.brought corporation tax down from 28% in 2010 to 19%. We have further
:42:43. > :42:48.plans to reduce it further to 17% but the honourable lady's party
:42:49. > :42:53.wishes to inflate those rates of tax up to 26%, which will destroy jobs,
:42:54. > :42:57.destroy wealth, destroy growth, lower the amount of tax that we can
:42:58. > :43:05.collect, support vital public services that we see fine. One-way
:43:06. > :43:09.companies avoid tax is by employing people illegally. We still have too
:43:10. > :43:14.many illegal jobs in the economy in sectors like construction. Will my
:43:15. > :43:22.honourable friend resist calls to play new burdens on legitimate work
:43:23. > :43:27.and readable efforts through HMRC to root out illegal working in our
:43:28. > :43:29.economy? My right honourable friend is absolutely right, I'm always
:43:30. > :43:36.conscious as the minister responsible for strategic oversight
:43:37. > :43:39.through tax to ensure that we put in place measures that are
:43:40. > :43:42.proportionate and do not carry extra buttons for those who carry on their
:43:43. > :43:49.business and companies in exactly the correct fashion. Mr Speaker,
:43:50. > :43:55.intergovernment cooperation is vital, if we are to combat
:43:56. > :43:58.international corporate tax evasion. In February of this year, Treasury
:43:59. > :44:04.ministers withdrew from a meeting with the EU committee set up to
:44:05. > :44:10.investigate issues and prioritise reforms. What sort of message does
:44:11. > :44:18.the Secretary of State think it sends to tax evaders? The issue the
:44:19. > :44:22.honourable member raises about cooperation with other countries is
:44:23. > :44:27.an area where we have an exemplary record. We have cooperated with the
:44:28. > :44:31.OECD on the profit shifting project and many recommendations are going
:44:32. > :44:37.through the house at this precise moment in the latest Finance Bill.
:44:38. > :44:46.Of course, we have common country reporting, where we were in the lead
:44:47. > :44:53.of that particular move in 2012. As a result of increasing the personal
:44:54. > :44:56.tax allowance and high rate threshold, 31 million individuals
:44:57. > :45:01.will see their taxable reduced, 1.3 million individuals will be taken
:45:02. > :45:08.out of income tax altogether, 585,000 individuals will have been
:45:09. > :45:13.taken out of the higher rate of tax in 2017-18. Mr Speaker, in 2017-18
:45:14. > :45:19.and beyond, basic rate taxpayers would pay ?1000 less per year in tax
:45:20. > :45:23.than they did in 2010. Can my right honourable friend confirm that
:45:24. > :45:32.employees played Michael Gove paying a basic rate in tax would need to
:45:33. > :45:37.earn -- and employee paying the basic rate in tax would need to and
:45:38. > :45:43.thousands more? I can tell my honourable friend the good news that
:45:44. > :45:53.a typical basic rate taxpayer will pay ?1005 less income tax in 2017-18
:45:54. > :45:59.then in 2010-11. Finally, Mr Nigel Huddlestone? I'm pleased that 3
:46:00. > :46:04.million of the lowest paid are taken out of
:46:05. > :46:12.and to pay income tax, by this government. Can we find a mechanism
:46:13. > :46:17.for those who want to pay more tax to do so? Mr Speaker, and always
:46:18. > :46:22.very open to receiving from colleagues around the house.
:46:23. > :46:26.Receiving ideas for specifically targeted taxes, and if my honourable
:46:27. > :46:34.friend has such an idea, I would be very pleased to receive it. Topical
:46:35. > :46:39.questions, Sir Desmond Swain. As we look ahead to GDP figures out
:46:40. > :46:42.tomorrow and to the budget in one month's time, my focus is on three
:46:43. > :46:48.key challenges that we need to meet as we seek to build an economy that
:46:49. > :46:52.works for everyone. The first is protecting the economy by managing
:46:53. > :46:57.short-term uncertainty. The second is achieving a good Brexit outcome,
:46:58. > :47:01.and the third is addressing the longer term productivity challenge
:47:02. > :47:06.to ensure that real wages and thus living standards can continue to
:47:07. > :47:13.rise. Everything my department does will be focused towards those three
:47:14. > :47:16.objectives. What revenue has the privatisation programme raised and
:47:17. > :47:22.what would be the cost of nationalising the public utilities?
:47:23. > :47:28.Well, Mr Speaker, I would refer sellable friend to the analysis that
:47:29. > :47:33.the Conservative Party did at the time of the general election with
:47:34. > :47:38.the proposals, if we can call them that, made by the opposition party
:47:39. > :47:43.at the time. The government's policy is to sell assets when there is no
:47:44. > :47:49.longer a policy reason to retain them, and invest the proceeds of
:47:50. > :47:54.such sales in policy priorities. Nationalising assets would increase
:47:55. > :47:58.public sector net debt, increasing the debt interest bill which would
:47:59. > :48:04.divert public spending away from more valuable areas. It would also
:48:05. > :48:07.mean that fewer investment needs of any nationalised industries would
:48:08. > :48:14.have two compete for capital with our public services. I've listened
:48:15. > :48:18.very carefully to the Chancellor's responds to the honourable member
:48:19. > :48:23.for Aberdeen North and my honourable friend for Ilford North. On the
:48:24. > :48:26.issue of no deal. Can I tell him that his response was crushingly
:48:27. > :48:33.disappointing? Expressions of hope of a deal are just not good enough.
:48:34. > :48:38.The Chancellor knows the economic peril our country faces if there is
:48:39. > :48:42.no deal and described it rightfully as a worst-case scenario. Can I urge
:48:43. > :48:46.him, in the interests of our country, to have the courage of his
:48:47. > :48:51.convictions, stand up and face down his opponents in Cabinet and
:48:52. > :48:59.confirmed today that, like us, he will not support or vote for a no
:49:00. > :49:04.deal Brexit? Mr Speaker, as the honourable gentleman very well
:49:05. > :49:10.knows, our clear objective, our priority, is to achieve a deal with
:49:11. > :49:14.the EU. Our preference would be for a deal that gives a comprehensive
:49:15. > :49:20.trade investment and security partnership between the UK and the
:49:21. > :49:25.European Union in the future. As part of such a deal, we will seek an
:49:26. > :49:28.implementation phase that gives British businesses and government
:49:29. > :49:34.agencies proper time to prepare for the new circumstances they will
:49:35. > :49:39.face. If he cannot stand up to his opponents on a no deal Brexit, can
:49:40. > :49:42.he stand up to them on the issue of the transition period? Business
:49:43. > :49:46.leaders yesterday made it clear that they need the certainty now that
:49:47. > :49:51.there will be a sensible transition period that the Prime Minister
:49:52. > :49:54.yesterday showed more confusion in her statement giving the impression
:49:55. > :49:58.that the transition is to be negotiated only after we have
:49:59. > :50:02.settled on what she describes as the future partnership of what Europe
:50:03. > :50:07.will be. Businesses cannot wait. They need to plan now. Jobs are in
:50:08. > :50:13.jeopardy now. If the Prime Minister is not willing to stand up to the
:50:14. > :50:15.wrecks it Brexiteers in her party, will be Chancellor make it clear in
:50:16. > :50:20.the way that the Prime Minister failed to do yesterday and as
:50:21. > :50:28.business leaders have been calling for, we need the principles of any
:50:29. > :50:31.transition confirmed by the end of the year. The honourable gentleman
:50:32. > :50:35.is correct to say that the matter is urgent and pressing and that is why
:50:36. > :50:41.we were so pleased that last week at the European Council B 27 agreed to
:50:42. > :50:45.start internal procurator rue discussions in relation to an
:50:46. > :50:47.implementation period. I'm confident we can give businesses the
:50:48. > :50:54.confidence and certainty that they need. Thank you, Mr Speaker. Can my
:50:55. > :50:58.right honourable friend tell us what estimate is made of the effect of
:50:59. > :51:07.the reduction in corporation tax rates on unemployment? I thank
:51:08. > :51:11.durable member for his question. We have been cutting corporation tax
:51:12. > :51:15.dramatically and I can inform him that we have raised, as a
:51:16. > :51:24.consequence, 50% more in corporation tax today than we did in 2010. Thank
:51:25. > :51:28.you, Mr Speaker. The Chancellor will be aware that the Office of National
:51:29. > :51:33.Statistics have revised downwards the UK positive net international
:51:34. > :51:40.investment position of ?470 billion to -?20 billion. What further shocks
:51:41. > :51:47.of this magnitude is he expecting as a result of his government's
:51:48. > :51:52.handling of the EU negotiations? Mr Speaker, if he looks at the
:51:53. > :51:58.revision, he will know the cause of it is lower than anticipated returns
:51:59. > :52:03.on UK investment stocks held overseas, principally returns on
:52:04. > :52:09.mining related and petroleum related activities. Thank you, Mr Speaker.
:52:10. > :52:13.The power station site is a large strategic site in the West Midlands.
:52:14. > :52:18.Will my right honourable friend join me in urging all parties involved in
:52:19. > :52:23.the redevelopment to be ambitious, bold and visionary, and also outline
:52:24. > :52:29.what government assistance is available to attract innovative
:52:30. > :52:33.high-tech businesses? Mr Speaker, I would almost certainly join my
:52:34. > :52:36.honourable friend in celebrating the project and urging everyone working
:52:37. > :52:42.on it to be as ambitious as possible. In terms of support, since
:52:43. > :52:47.2010, her area has benefited from over ?300 million in grants to
:52:48. > :52:51.support cutting-edge innovation and this government welcomes private
:52:52. > :52:55.investment in innovative and high-tech businesses across the
:52:56. > :53:00.economy, which is why at the 2016 Autumn Statement we announced an
:53:01. > :53:06.additional ?4.7 billion for research and abandonment. Thank you Mr
:53:07. > :53:11.Speaker. The Scottish National Party has asked the government to take
:53:12. > :53:15.action to enable VAT to be reclaimed by the police and fire rescue
:53:16. > :53:22.service, in the same way that they have taken action for our national
:53:23. > :53:27.bodies, such as Highways England to be allowed to cover that. If the
:53:28. > :53:31.action is taken for Highways England, why can't it be taken for
:53:32. > :53:37.police Scotland and fire rescue? Will he commit to doing that in the
:53:38. > :53:40.next budget? As the honourable lady will know, when the Scottish
:53:41. > :53:43.Government took the decision to restructure their police and Fire
:53:44. > :53:48.Services, they went into that decision with their eyes wide open.
:53:49. > :53:53.They knew what the VAT consequences of that measure would be. So, it is
:53:54. > :53:59.really down to the SNP to answer these questions of themselves. Mr
:54:00. > :54:03.Speaker, could my right honourable friend say when the Treasury is
:54:04. > :54:09.likely to give you sign off to HS2 phase to be, which of course, Mr
:54:10. > :54:17.Speaker, you will know, runs through Cheshire? I thank the honourable
:54:18. > :54:23.member for the question, I will take the matter up with the member for
:54:24. > :54:28.transport and get back to him. Mr Speaker, inflation stands at a
:54:29. > :54:31.staggering five year high. Businesses in Scotland, Falkirk and
:54:32. > :54:36.across the UK have to face the prospect of increased trade tariffs
:54:37. > :54:45.post Brexit. On the high street, it's becoming that businesses closed
:54:46. > :54:51.down as people buy online, leaving town centre is struggling. As
:54:52. > :54:54.Secretary of State, spoken on the possibility of businesses in town
:54:55. > :55:02.centres, could they cope with online trade and impending extra budgets?
:55:03. > :55:07.We are acutely aware of the fact that inflation has spiked. Most
:55:08. > :55:13.forecasters, the overwhelming majority, expect it to start to fall
:55:14. > :55:17.again in the New Year, the spike of inflation has been driven primarily
:55:18. > :55:24.by a depreciation in the value of sterling last year. But I will take
:55:25. > :55:28.his comments on VAT as a representation for the budget and I
:55:29. > :55:33.will look at them carefully. Mr Speaker, could I urge the Chancellor
:55:34. > :55:38.to project the representation we heard from the Shadow Chancellor? If
:55:39. > :55:41.you cannot agree a price, you cannot do that until you know what you are
:55:42. > :55:46.paying for and only a fool would write a blank cheque of taxpayers
:55:47. > :55:50.money? My honourable friend is absolutely right, we should not be
:55:51. > :55:53.giving away our negotiating positions where we are going into
:55:54. > :55:57.one of the most important negotiations the country has ever
:55:58. > :56:01.been involved in which is why we to ensure that we are prepared for all
:56:02. > :56:06.eventualities. I'm delighted to meet with my honourable friend tomorrow
:56:07. > :56:11.to discuss that in more detail. I'd like to raise the issues that we are
:56:12. > :56:16.having with mobile banking in my constituency. I know when two
:56:17. > :56:19.different banks have arrived with problems of people queueing in rough
:56:20. > :56:26.weather and getting wet, and problems with paper banking. Could
:56:27. > :56:29.members of the front bench bring forward waste to reorganise mobile
:56:30. > :56:33.banking, make it more user-friendly and get banks to cooperate with one
:56:34. > :56:41.another in terms of delivery of the vital service in the Highlands? Bank
:56:42. > :56:45.branches are vital to many communities, and I'm sure they will
:56:46. > :56:48.have heard your concerns but they are commercial decisions and one
:56:49. > :56:57.should recognise that branch visits have fallen by roughly a third since
:56:58. > :57:00.2011, there is one fifth less cash used for payments. These are changes
:57:01. > :57:08.in the market that are reflecting how branches and mobile branches are
:57:09. > :57:13.used. Would my right honourable friend accept that the contribution
:57:14. > :57:17.made by financial services fastly outweighs the contribution to the
:57:18. > :57:22.EU, by getting a sensible deal from day one is not only imperative that
:57:23. > :57:25.much more likely to be achieved by the patient work of my right
:57:26. > :57:26.honourable friend then the anti-business rhetoric of those
:57:27. > :57:35.opposite? My honourable friend is quite right.
:57:36. > :57:40.This is an industry that pays over ?71 billion in tax to the Exchequer,
:57:41. > :57:46.employs over 1 million directly, 2.2 million through the sector as a
:57:47. > :57:51.whole. He will know through his work as the chair of the all-party group
:57:52. > :57:55.of Gibraltar Newport and is not just financial services within the UK but
:57:56. > :57:59.our links with industries, including in territories such as Gibraltar.
:58:00. > :58:03.Teachers have travelled to lobby Parliament because of the severe
:58:04. > :58:08.cuts they've had in their pay in real terms. The Chief secretary has
:58:09. > :58:12.said she's lifted the pay cut due to the pressure Labour has placed on
:58:13. > :58:16.her. Can she confirm her department will fund the recommendations of the
:58:17. > :58:22.pay review body rather than cash strapped local authorities? The
:58:23. > :58:29.facts of the matter are that teaches an average received a 4.6% pay rise
:58:30. > :58:38.last year, including promotions and responsibility allowances. Pay in
:58:39. > :58:44.schools has lots of flexibility and headteachers can how they pay
:58:45. > :58:48.teachers. It was an average of 4.6% last year. It will be done to the
:58:49. > :59:01.Department for Education to look at the specific circumstances. Does the
:59:02. > :59:05.Chancellor share my frustration that since the EE referendum, a number of
:59:06. > :59:11.senior politicians have been talking down the economy, and shouldn't they
:59:12. > :59:16.be talking a couple? We have a great future outside the European Union.
:59:17. > :59:21.Yes, and as I said in my remarks earlier, the UK economy is
:59:22. > :59:25.fundamentally strong. We have the world's 's second-largest services
:59:26. > :59:29.export sector at a time when emerging economies across the globe
:59:30. > :59:33.are sucking in new demand for services. We have a global lead in
:59:34. > :59:37.various areas of emerging technology that will drive the Fourth
:59:38. > :59:42.Industrial Revolution. This country as a bright, long-term future. Of
:59:43. > :59:45.course we have to deal with short-term uncertainty and tackle
:59:46. > :59:52.our productivity challenge. But we fundamentally good shape. Given that
:59:53. > :59:56.support for a single Scottish police force was in the 2011 Scottish Tory
:59:57. > :00:02.manifesto, can we assume that means the government think the fee is a
:00:03. > :00:12.price worth paying? Or will they finally see sense and scrap the fact
:00:13. > :00:16.on Scotland's services? I'll give exactly the same answer which is
:00:17. > :00:19.that at the point the Scottish Parliament and government decided to
:00:20. > :00:25.take that decision, they knew that by structuring the police services
:00:26. > :00:28.and the Fire Services in the way they chose to lead to the outcome
:00:29. > :00:37.that they should have expected all along. What does the Chancellor
:00:38. > :00:41.believes that we need to do to improve productivity, which is
:00:42. > :00:45.rightly one of his three priorities? We need to invest in our
:00:46. > :00:51.infrastructure, we need to invest in the skills of our people, we need to
:00:52. > :00:56.ensure that our high-growth businesses have access to long-term
:00:57. > :01:00.capital, and we need to address the regional disparity in productivity
:01:01. > :01:05.performance. If we can tackle those for things, then we can start to
:01:06. > :01:11.close Britain's productivity gap and see real wages rising sustainably
:01:12. > :01:13.over many years ahead. Speaking to the Treasury Select Committee
:01:14. > :01:16.earlier this month about the transition agreement for exiting the
:01:17. > :01:20.European Union, he said it would still have a high value at Christmas
:01:21. > :01:25.and early in the New Year but as we move through 2018, its value to
:01:26. > :01:29.everybody will diminish significantly. Yesterday the Prime
:01:30. > :01:34.Minister told us we won't get a transition agreement until the
:01:35. > :01:39.earliest October next year. Does the Chancellor stand by the different
:01:40. > :01:46.view he expressed a fortnight ago? As I've said several times today, we
:01:47. > :01:50.are reassured by the fact the European Council 27 agreed to start
:01:51. > :01:54.the internal preparatory discussions on unemployment Haitian period. We
:01:55. > :01:59.are absolutely aware of the needs of business in this area and they have
:02:00. > :02:03.been reinforced this week. We are confident we will be able to deliver
:02:04. > :02:09.reassurance to business in accordance with their needs. Can I
:02:10. > :02:18.urge my right honourable friend when looking at the business case for HS2
:02:19. > :02:27.phase 2B, to consider the additional cost it will cost the Exchequer to
:02:28. > :02:33.build over the Cheshire salt fields. We discussed this issue when I was a
:02:34. > :02:39.transport Minister, and the implications of the typography will
:02:40. > :02:44.be taken into consideration as part of the business case. When the
:02:45. > :02:48.honourable member was a transport Minister he enjoyed telling us who
:02:49. > :02:53.travel to work by bus. I remember thinking the fellow passengers must
:02:54. > :02:55.have been exhilarated to know they were accompanied by the
:02:56. > :03:03.Parliamentary Under-Secretary of State for bosses. The Chancellor has
:03:04. > :03:08.acknowledged that the fall in the exchange rate following the Brexit
:03:09. > :03:12.vote has pushed up inflation. What's the Treasury's estimate of the
:03:13. > :03:19.impact of this on people's standard of living? The honourable lady will
:03:20. > :03:24.be aware of the increase in inflation, CPI inflation at 3%. Most
:03:25. > :03:30.forecasts suggest it may go 0.1% higher before falling steadily from
:03:31. > :03:34.late this year. Obviously any increase in inflation will have a
:03:35. > :03:41.negative impact on real wages. We look forward to CPI inflation
:03:42. > :03:46.falling and real wage growth resuming next year. The temptation
:03:47. > :03:52.to hear remaining colleagues is too powerful. And Soubry. Mr Speaker,
:03:53. > :03:57.the Chancellor in his efforts to secure a good Brexit deal and a
:03:58. > :04:01.transition period has the confidence and support not only members on this
:04:02. > :04:07.side of the House but across the whole of British business. Unlike
:04:08. > :04:16.the party opposite which inspires complete fear with their Marxist
:04:17. > :04:19.mayhem. Could my right honourable friend confirmed that it really is
:04:20. > :04:24.in the best interests of British business to secure a transition
:04:25. > :04:27.period as a matter of some urgency, and will he agree to make sure he
:04:28. > :04:32.can do all he can to get that transition period? Yes, British
:04:33. > :04:40.business has made clear it wants the earliest possible certainty about
:04:41. > :04:46.the implementation arrangements, and it's also made very clear that it
:04:47. > :04:53.doesn't want any Marxist mayhem. Can I ask a question consisting of ten
:04:54. > :05:00.words or fewer. Goodbye begged the Chancellor, today I've got a teacher
:05:01. > :05:02.in this House visiting me, coming from a school, they've run out of
:05:03. > :05:06.money for photocopying. They've run out of money for books in the
:05:07. > :05:12.library. If he wants to do something about productivity, invest in
:05:13. > :05:15.schools now. The honourable gentleman seems to have missed the
:05:16. > :05:21.announcement just before the summer that we are putting 1.3 billion more
:05:22. > :05:28.into the front line. Not by taking in more taxes but by using the money
:05:29. > :05:32.we have across government better. The previous Chancellor of the
:05:33. > :05:37.Exchequer implemented second home stamp duty levy which has delivered
:05:38. > :05:42.?5.11 million into the Cornish economy and are set to deliver 1000
:05:43. > :05:48.homes. Can I seek assurances this money will continue into the future?
:05:49. > :05:53.We consider all areas of taxation in the run-up to all fiscal events but
:05:54. > :05:59.I've certainly heard my honourable friend 's comments and will take
:06:00. > :06:09.them as a representation. Order. Urgent question. John Woodcock.
:06:10. > :06:12.Thank you. To ask the Foreign Secretary if he'll make a statement
:06:13. > :06:23.on the liberation of Raqqa and the future of the campaign.
:06:24. > :06:29.Can I thank the honourable gentleman for his continued engagement on this
:06:30. > :06:33.important issue. Raqqa was officially liberated on the 20th of
:06:34. > :06:39.October. The Assyrian Democratic forces supported by the global
:06:40. > :06:43.coalition against Daesh began operations to liberate Raqqa in June
:06:44. > :06:47.20 17. Military operations are ongoing. My right honourable friend
:06:48. > :06:48.the Secretary of State