Live Treasury Questions House of Commons


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of Parliament at 11pm. First, questions to the Chancellor Philip

:00:00.:00:09.

Hammond and his team of ministers. Mr Speaker, in 2010 we inherited the

:00:10.:00:14.

UK's largest deficit since the Second World War at 9.9% of GDP. We

:00:15.:00:21.

set out a clear fiscal framework to restore confidence in the economy

:00:22.:00:25.

and reduce the deficit, which has subsequently fallen by over two

:00:26.:00:30.

thirds. We've delivered the lowest corporation tax rate in the T20 and

:00:31.:00:34.

cut employment costs through the employment allowance. Our

:00:35.:00:38.

unemployment rate is its lowest level in over 40 years. Since 2010

:00:39.:00:45.

we seem to 3 million more people find work. With the economy

:00:46.:00:51.

operating at near record high employment, our focus now must be to

:00:52.:00:54.

increase productivity and does real wage growth. Despite all the fear

:00:55.:01:01.

mongering from many including across the other side of this House, since

:01:02.:01:06.

the Brexit referendum, can my right honourable friend confirm we have

:01:07.:01:10.

the best growth rates in the whole of Europe, the best inward

:01:11.:01:12.

investment rates and the lowest unemployment rates for four decades?

:01:13.:01:18.

Is this not a ringing endorsement of this government's policies? My

:01:19.:01:22.

honourable friend is absolutely right that we have the lowest

:01:23.:01:27.

unemployment rate for four decades, that is a remarkable achievement.

:01:28.:01:32.

The British economy has performed with remarkable resilience since

:01:33.:01:37.

June 2016. Last year we had the second highest growth rate in the G7

:01:38.:01:42.

countries. The British economy is fundamentally strong and resilient.

:01:43.:01:48.

Yes we face some short-term uncertainty but underneath that

:01:49.:01:51.

uncertainty is a strong and resilient economy ready to go

:01:52.:01:55.

forward and reap the benefits available in the future. The

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Chancellor was talking about the fiscal consequences, the

:02:02.:02:05.

unemployment consequences, if a transition the long Brexit isn't

:02:06.:02:08.

achieved by the first quarter of next year. He was right a fortnight

:02:09.:02:15.

ago. What is the Chancellor doing to help secure a specific transition

:02:16.:02:20.

agreement in the first quarter of the next year? While we are

:02:21.:02:24.

preparing for all outcomes in our negotiations, the government

:02:25.:02:27.

objective is to reach a deal. As the Prime Minister made clear in her

:02:28.:02:31.

Florence speech, as part of that deal we want to agree an

:02:32.:02:35.

implementation period during which businesses and governments can

:02:36.:02:38.

prepare for the new relationship. We want to agree the principles as soon

:02:39.:02:43.

as possible. Last week at the European Council, the 27 agreed to

:02:44.:02:49.

start internal preparatory discussions on guidelines in

:02:50.:02:51.

relation to an implementation period. Together with the broad

:02:52.:02:55.

support in Parliament, this should give British businesses confidence

:02:56.:02:58.

we are going to provide them with the certainty they require. With the

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Chancellor welcome the fact there are more women in work than ever

:03:03.:03:07.

before, and set out what steps we can take to ensure this is one of

:03:08.:03:10.

the best countries in the world for women to setup and run their own

:03:11.:03:15.

businesses? That is one of the remarkable achievements of the last

:03:16.:03:19.

seven years. The increase in participation in the workforce and

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particularly the increase in the number of women participating in the

:03:24.:03:27.

workforce. That is in large part due to family friendly policies this

:03:28.:03:32.

government has pursued, with huge increases in the availability of

:03:33.:03:38.

child care, free childcare. Huge increases in the tax deductibility

:03:39.:03:43.

of childcare. We will continue to drive a set of policies which

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encourage women into the workforce, both because it's economically

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sensible and because it's socially inclusive. One of the biggest fiscal

:03:52.:03:57.

steps that can be taken to reduce unemployment is public sector

:03:58.:04:00.

investment in housing. Can I therefore welcome the Communities

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Secretary's statement yesterday that the Treasury has agreed to increase

:04:06.:04:09.

net borrowing by 50 billion in order to enable this to happen, will he

:04:10.:04:14.

confirm this is government policy? LAUGHTER Know, and that was not what

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my right honourable friend said. As the right honourable gentleman

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knows. I would agree with him that increasing activity in the

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construction sector is a very good way of creating jobs, but he will

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know that at 4.3% our economy is approaching full employment. The

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optic gap is extremely small. -- output gap. Given there are more

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people in employment there is more opportunity for people to take

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advantage of employee sharing saving schemes. The maximum amount of time

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you can pause one of those schemes is six months which mean many women

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on maternity leave house to cash in their schemes and can't take

:05:01.:05:03.

advantage of them to maximum effect. I'm sure this is an up-to-date

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anomaly. We'll be Chancellor extend the period of time that an employee

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savings scheme can be paused with 12 months, so women maternity leave can

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enjoy the same benefits as everyone else? The word employment and

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employee, it just about got in order. I'm sure he did, Mr Speaker.

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My honourable friend raises a technical point which has been

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raised with me by others. I will take what he said today and look at

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it carefully. Getting couples into work is one of the best ways of

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reducing family poverty and protecting women economically for

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the future. Rather than putting money into continuing to increase

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the tax threshold which rarely benefits low-income families, will

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the chance to look budget again which is a real deterrent? The

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government has made commitments around the personal allowance and

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high rate threshold in its election manifesto. We've reiterated them in

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the 2017 manifesto and remain committed to those policies. Of

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course I will take into account all representations received from

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honourable and Right honourable members of this House and take her

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comments on the workarounds as such a representative. I'd like to thank

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my right honourable friend for his work on the London Finance

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commission which recommended giving London a wide range of additional

:06:46.:06:49.

powers. The government has committed to continue to work with the GLA and

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London councils to eschew a London maintains its status as a world

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leading city -- in London maintains its status. Would right honourable

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friend particularly consider the means whereby an element of fiscal

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devolution, for example by tourist levy, might be part of a robust

:07:10.:07:13.

funding package for Crossrail to which is a critical part of National

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infrastructure? As my honourable friend is aware, the Department for

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Transport is scrutinising the business case for Crossrail and

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discussing that with TfL. It is right that the London region doesn't

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retain disproportionate amounts of revenue and some of the

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recommendations are broad ranging in the report. If the ministerial team

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are to deliver anything for the London Finance commission, will he

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talk to them about their difficulty now, with Brexit coming, of

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recruiting anyone to come and work and live in London? The search for

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talent is very, very difficult indeed. No one wants to come and

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work in this capital because Brexit, what's he going to do about it? The

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honourable gentleman needs to question whether members on his own

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side who fully signed up to the recommendations of the London

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planning commission, for example retaining almost half of all stamp

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duty across England, may be an issue many of his colleagues don't

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support. Mr Speaker, the UK internal market benefits all the nations and

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regions of the United Kingdom and it is essential that no new barriers to

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living and doing business within the UK are created. Exports to the rest

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of the UK are vital to the success of Scotland's economy, generating

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?50 billion in 2015. This compares to ?12 billion of exports to the EU

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and 16 billion to the rest of the world and accounts for 63% of

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Scotland's total exports. I'm delighted that the number of

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registered enterprises has gone up by 18% in East Renfrewshire since

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2010. As these businesses look to expand from local to national

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players, maintaining the integrity of the UK internal market is vital

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and any moves to fragment it would damage the Scottish economy, place

:09:18.:09:21.

huge barriers to trade and that that vital contribution in jeopardy. I

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would strongly agree with my honourable friend that fragmentation

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of the UK internal market would be damaging for the Scottish economy

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and her small businesses in particular. This isn't just an issue

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for Scotland. We all agree that protecting the UK internal market is

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in our shared interests and the government will work to make sure

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there are no new barriers to doing business across the UK. Mr Speaker,

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staying in the internal market while the UK crashes out of the EU is set

:09:53.:10:00.

to cost Scotland ?30 billion over five years according to London

:10:01.:10:04.

School of economics research published today. Aberdeen is set to

:10:05.:10:08.

lose the most at 7% of GDA. Well the chance to be clear that on behalf of

:10:09.:10:12.

his government, that no deal is not an option? As I've already said

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earlier, the government is preparing for all possible outcomes of the

:10:19.:10:23.

negotiations with the European Union, as any prudent government

:10:24.:10:26.

would. The Prime Minister has made it very clear that our strong

:10:27.:10:30.

preference is to achieve a deal that is good for Britain, which protects

:10:31.:10:35.

British jobs, businesses and prosperity. The prosperity, jobs and

:10:36.:10:42.

businesses of all of the UK. On that note, 56% of EU nationals in fits

:10:43.:10:47.

the 250 companies are highly likely or quite likely to leave the UK

:10:48.:10:50.

before the conclusion of the Brexit negotiations. What is his assessment

:10:51.:10:57.

of the impact on the Scottish economy of all of this talent

:10:58.:11:02.

leaving the UK? I'm very confident that whatever the outcome, all of

:11:03.:11:07.

this talent will not leave. The Prime Minister made very clear

:11:08.:11:11.

yesterday that her top priority remains giving students to EU

:11:12.:11:15.

citizens living in the UK, and that is why she is working hard on the

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deal for our citizens. It is the area in which our discussions are

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most advanced and the honourable lady has the Prime Minister's

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personal commitment of the importance she attaches to that

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area. With financial and accounting

:11:31.:11:40.

services amounting to the most valuable export service, with ?7.6

:11:41.:11:47.

billion, or 86% going to the rest of the UK, does my right honourable

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friend agree that the internal market is vital in preserving this

:11:53.:11:56.

important sector of the economy. My honourable friend is right to draw

:11:57.:12:01.

attention to the important role of financial services and insurance in

:12:02.:12:05.

the Scottish economy. As a subset of the broader point that the internal

:12:06.:12:10.

market works extremely well for Scotland is very important to

:12:11.:12:15.

Scotland's exports. It would clearly be catastrophic for the financial

:12:16.:12:19.

insurance sector if businesses based in Scotland were no longer able to

:12:20.:12:23.

operate across the border into England. If I understand correctly,

:12:24.:12:29.

you have SNP members who understand the benefits of the European single

:12:30.:12:34.

market but not the UK single market? We have fanatics in the Conservative

:12:35.:12:39.

Party who would happily drive the coach and horses through the

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European single market. Perhaps in characteristic fashion, the

:12:44.:12:49.

Chancellor can set out a growing opposition and show what is in the

:12:50.:12:52.

interest of the government's economy. It's clear, the benefits of

:12:53.:12:57.

the UK internal market are absolutely clear to all of us and we

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will not allow the UK internal market to be compromised. In our

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negotiations with the EU, we hope and expect to agree a deal which

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would allow British businesses to continue to enjoy the benefits of

:13:10.:13:14.

access to the European marketplace and European companies to continue

:13:15.:13:17.

to enjoy the benefits of access to the UK market. Thank you, Mr

:13:18.:13:27.

Speaker. The government is investing over ?1 billion to stimulate the

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market to build the next generation of digital infrastructure the UK

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needs for the future. This includes the ?400 million infrastructure fund

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and ?740 million for broadband and 5G programme, it is an extension to

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the programme to cover 95% of UK premises at the end of the year. My

:13:52.:13:56.

constituency now enjoy superfast broadband but still a small number

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in rural areas struggle with access to broadband and also to good for G

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or 3G coverage, what can they do to ensure that we are getting all of

:14:11.:14:18.

the coverage that we pay for? The government is working to continue

:14:19.:14:21.

progress on the superfast broadband roll-out. We expect to reach 95% by

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the end of the year. We have seen some changes from the internal

:14:27.:14:30.

reorganisation with the British Telecom setting out open Reach, that

:14:31.:14:33.

progress will be maintained through government expenditure in that

:14:34.:14:37.

programme and in the digital investment fund. The APR have just

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reported on the poor productivity record in this country, investment

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in broadband is crucial to improving this. So, when is the minister going

:14:50.:14:54.

to respond to the letter I wrote to him on the 1st of September about

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broadband in Teesdale? I absolutely agree that broadband and digital

:15:04.:15:07.

progress is critical to the productivity of the economy. I'm

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unaware of the letter, I will look into it with immediate effect and

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apologise for the delay. As the fourth industrial resolution

:15:20.:15:20.

accelerates, superfast broadband will be key to the productivity of

:15:21.:15:25.

technology business -- revolution. Will the Minister continue to work

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with businesses to ensure they get the broadband they need? I certainly

:15:31.:15:34.

will continue to work with Agricola. Durable gentleman has spoken for

:15:35.:15:39.

enterprise and businesses consistently since he came to the

:15:40.:15:44.

house, the intention to pursue broadband investment, whether

:15:45.:15:47.

superfast awful fibre, is at the heart of efforts to improve

:15:48.:15:56.

productivity. -- whether superfast or fibre. There are still parts of

:15:57.:16:02.

my constituency both rural and urban, such as the town of

:16:03.:16:06.

Carrickfergus, where broadband coverage is still very poor. BT

:16:07.:16:14.

refuse to look at innovative ways of spreading the network. Is it time

:16:15.:16:17.

for the government to look for other bits of money where it is investing

:16:18.:16:24.

in broadband to ensure there is better coverage? The honourable

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gentleman makes an important point, that all of our constituencies have

:16:29.:16:31.

some areas that are not fully able to access the important benefits

:16:32.:16:37.

that come from broadband. I will take his point and discuss them with

:16:38.:16:40.

my colleagues and report back to him. Thank you, Mr Speaker. I'm

:16:41.:16:46.

pleased the Communities Secretary has been inspired by Labour's

:16:47.:16:53.

credibility rule in relation to infrastructure including digital and

:16:54.:17:00.

in the form of house building. It begs crucial questions. Does the

:17:01.:17:03.

Minister support his colleagues bid to borrow more to invest, to use the

:17:04.:17:09.

quote, or is it a bid to steal the Chancellor's job? The government's

:17:10.:17:19.

progress on broadband, as I outlined, was a speculative comment

:17:20.:17:26.

regarding the forthcoming budget. The right honourable gentleman can

:17:27.:17:30.

answer that question. That response about plans in relation to digital

:17:31.:17:35.

infrastructure are quite wholly inadequate, as indicated by my

:17:36.:17:40.

honourable friend, is the minister aware that productivity figures are

:17:41.:17:45.

at precrisis levels? Is he aware that regional industries are up to

:17:46.:17:48.

seven times more productive than others? What is the digital

:17:49.:17:52.

investment strategy doing to close that shocking gap? The honourable

:17:53.:17:58.

gentleman seems to have forgotten we have the announcement of the red

:17:59.:18:03.

tipped investment fund, a ?23 billion pot of money going into

:18:04.:18:07.

investments, and digital infrastructure up and down the

:18:08.:18:12.

country. We mention the ?400 million investment fund and the ?740 million

:18:13.:18:20.

on full broadband and 5G. We are approaching 95% of UK premises

:18:21.:18:23.

having access to superfast broadband by the end of the year. It puts us

:18:24.:18:27.

in a very strong place for the future. Mr Speaker, the government

:18:28.:18:35.

is committed to reducing the administrative burdens for small and

:18:36.:18:40.

medium-sized enterprises, including in the East Midlands. That's why we

:18:41.:18:46.

have delivered ?272 million in net reductions between 2011 and 2015

:18:47.:18:50.

which is why we continue to reduce unnecessary interaction with the

:18:51.:18:58.

taxpayer. We have one of the longest tax codes in the world, the Treasury

:18:59.:19:03.

are under extra pressure to bung money to certain interest groups but

:19:04.:19:06.

may I suggest that he sticks to the Treasury bench and argues the case

:19:07.:19:12.

for less taxation, simpler taxation and less debt. That's the best

:19:13.:19:15.

service we can give to the young and our businesses. My right honourable

:19:16.:19:21.

friend raises an important point about complexity which is why we

:19:22.:19:26.

continue to work with the office for tax simplification to ensure our tax

:19:27.:19:29.

code is as simple as it can be but there is no doubt, Mr Speaker, that

:19:30.:19:36.

in terms of holding our exemplary record on evasion and noncompliance,

:19:37.:19:42.

?160 billion of revenue since 2010-2015, we make no apologies for

:19:43.:19:46.

having a tax code that works to support our public services. There

:19:47.:19:53.

are currently 130,000 small and medium-sized exporting businesses

:19:54.:19:57.

that export to Europe that currently have to deal with no bureaucracy at

:19:58.:20:01.

our border to export that could do so, if his colleagues have their

:20:02.:20:05.

way. Does he think such bureaucracy will be good for British business,

:20:06.:20:12.

or less good for British business? As the honourable lady will know, we

:20:13.:20:15.

are in the middle of negotiations with our European partners. I'm

:20:16.:20:20.

confident, as the Prime Minister expressed at every turn, that we

:20:21.:20:22.

will secure a good deal for this country and in the context about or

:20:23.:20:27.

borders it means that it will be as frictionless as possible, which will

:20:28.:20:30.

be good for trade, our country and the economy. Thank you, Mr Speaker.

:20:31.:20:36.

Does the Minister agree that the party opposite's plans to raise

:20:37.:20:40.

corporation tax will harm small and medium-sized businesses ... Just for

:20:41.:20:50.

the benefit of the honourable gentleman, the government's was --

:20:51.:20:57.

the party's plans are not the responsibility of the government. We

:20:58.:21:02.

have learned that today. Across the United Kingdom, small and medium

:21:03.:21:07.

businesses have created thousands of jobs. Small and medium businesses

:21:08.:21:11.

tell me that they are overregulated and they have bureaucracy which

:21:12.:21:15.

restricts ability to employ more people. May I ask what he is doing

:21:16.:21:22.

to address that? The honourable member is absolutely right, and the

:21:23.:21:26.

critical importance of small and medium sized enterprises, we have

:21:27.:21:30.

500 million small businesses in the country, at the heart of generating

:21:31.:21:34.

the wealth and tax which support public services that we all wish to

:21:35.:21:39.

see thriving. We are working closely with the office for tax have

:21:40.:21:44.

occasion ensure wherever possible, the government is out of the way a

:21:45.:21:48.

business rather than standing in the way. Mr Speaker, the gender pay gap

:21:49.:21:57.

in the public sector is 18.3%, which is a record low. This compares to

:21:58.:22:05.

24.5% in the private sector. I'm grateful to my right honourable

:22:06.:22:09.

friend for those comments, would she explain how the new duty, introduced

:22:10.:22:13.

by this government, on public sector bodies publishing the differences

:22:14.:22:15.

between male and female pay would support the trend of an ever

:22:16.:22:19.

reducing gender pay gap which is at a record low? The new duty

:22:20.:22:26.

introduced will be more transparent. We will be able to find out where

:22:27.:22:30.

the particular issues are in the public sector, for example

:22:31.:22:34.

occupations like engineering that are well paid that women are less

:22:35.:22:38.

likely to go into and what we can do to encourage women to apply for

:22:39.:22:52.

those roles. Medium public sector does the Minister agree with me that

:22:53.:22:56.

it's about time that hard-working public sector workers get the pay

:22:57.:23:03.

rise that they deserve? We have already been clear that pay review

:23:04.:23:08.

bodies will have the remit to be able to look at how they retain and

:23:09.:23:15.

recruit high-quality public sector workers across the board, whether

:23:16.:23:18.

that is teachers, nurses or police officers. The chief executive has

:23:19.:23:28.

given evidence to the Treasury Select Committee on the Treasury 's

:23:29.:23:31.

women in Finance Charter, she is the government's women in finance

:23:32.:23:36.

champion. To tackle the gender pay gap we need more women in senior

:23:37.:23:42.

roles. Can I say to the Chief Secretary if she could urge the

:23:43.:23:45.

Chancellor to reply to my letter that I wrote to him last week about

:23:46.:23:48.

apartments that the Bank of England were more senior women are needed

:23:49.:23:51.

because the evidence this morning gives the importance of role models?

:23:52.:23:57.

First, can I congratulate my honourable friend on the work that

:23:58.:24:00.

she did as women's minister in promoting these issues. It would be

:24:01.:24:07.

great to see other professions such as legal services looking at the

:24:08.:24:10.

success of women in finance charter, seeing what they can do as well. I

:24:11.:24:15.

will urge my colleague to reply to your letter ASAP! Hull in addition

:24:16.:24:24.

to the gender pay gap, the disability pay gap remains

:24:25.:24:28.

extraordinarily high. Yet, disabled people are not mentioned in the

:24:29.:24:31.

government's industrial strategy. When will we harness the potential

:24:32.:24:35.

of disabled people in the economy and create policies that effectively

:24:36.:24:43.

show this? The honourable lady is right to highlight the issue of

:24:44.:24:46.

making sure that disabled people have a full opportunity to

:24:47.:24:52.

participate, we are missing out on huge amounts of talent of disabled

:24:53.:24:56.

people, women and older people in the economy which we need to unleash

:24:57.:25:00.

to ensure the country becomes more productive and for the sake of those

:25:01.:25:05.

with so much to contribute. Number seven, Mr Speaker. Mr Speaker, last

:25:06.:25:14.

year public spending was 38.9% of GDP, which equates to about ?28,500

:25:15.:25:21.

per household. This is compatible with leading countries. I thank the

:25:22.:25:27.

Minister for her response and does she agree it is down to this

:25:28.:25:33.

government's response -- management of public finances that we spend

:25:34.:25:40.

more than Germany and Japan? My honourable friend is absolutely

:25:41.:25:44.

right, that we spend more per student on education than Germany

:25:45.:25:49.

does or Japan does. Because of our management of public finances, we've

:25:50.:25:54.

been able to push ?1.3 billion more in education spending to the front

:25:55.:25:58.

line, where it will make the most difference in classrooms. Is the

:25:59.:26:04.

Secretary concerned that the Bank of England will increase interest rates

:26:05.:26:08.

by 2.9% in November which will have an adverse effect on public

:26:09.:26:14.

spending? Of course, that is one of the reasons we need to ensure that

:26:15.:26:19.

we are reducing our debt and reducing our deficit to reduce

:26:20.:26:23.

interest payments as a result of the previous Labour government leaving

:26:24.:26:25.

us with the highest deficit in history. But we do have... We do

:26:26.:26:34.

have an independent Bank of England. It's very important, as government

:26:35.:26:38.

minister, I'm not telling them what to do on interest rates.

:26:39.:26:45.

In 2010, there was a significant gap between wages in the public and

:26:46.:26:52.

private sector, where public sector workers received an average of 5.76%

:26:53.:26:59.

higher pay. Today, wages are comparator all, and when you take

:27:00.:27:03.

into account more generous pension benefits, there's an additional 10%

:27:04.:27:11.

pension premium the public sector. Inflation last week was announced at

:27:12.:27:15.

3%. Public sector pay rises 1%. Could the Chief secretary confirm

:27:16.:27:20.

that that is a pay cut for millions of workers, and will she take from

:27:21.:27:25.

me as a budget representation, scrap the cap? It seems the honourable

:27:26.:27:31.

gentleman can't take yes for an answer. There isn't a public sector

:27:32.:27:38.

pay cap. What we have said is that individual secretaries of State will

:27:39.:27:45.

be responsible for making proposals on their workforce is dependent on

:27:46.:27:50.

specific circumstances. This is very different from the issues we are

:27:51.:27:53.

facing in the NHS or the Armed Forces. What's important is that we

:27:54.:27:58.

look at the evidence, we make sure we can recruit and retain the best

:27:59.:28:02.

possible workers in the public sector. We also need to make sure we

:28:03.:28:06.

don't price out of the market people working in the private sector too.

:28:07.:28:12.

Can the chief secretary urge her Cabinet colleagues when they are

:28:13.:28:15.

making those decisions to bear in mind that public sector pay rises

:28:16.:28:20.

must be both fair to public sector workers but also to the five sixths

:28:21.:28:25.

of workers in the private sector who also face the same pressures and

:28:26.:28:30.

challenges? The fact is we were left a legacy of a previous government

:28:31.:28:35.

that spent money they didn't have. We've had to get the public finances

:28:36.:28:40.

back on track. We do recognise there are areas where we need to make sure

:28:41.:28:45.

we can recruit and retain those high-quality public sector workers.

:28:46.:28:50.

We also need to make sure we've got a thriving private sector economy.

:28:51.:28:53.

That's why we've ended up with the lowest unemployment for 40 years...

:28:54.:29:00.

Thank you Mr Speaker. We know from the Resolution Foundation that this

:29:01.:29:04.

decade is the worst for wage growth in 210 years. When will the Chief

:29:05.:29:09.

Secretary to the Treasury ensure her department are fully funded to scrap

:29:10.:29:15.

the cap? The reason we have not seen the wage growth we want to see is we

:29:16.:29:19.

have an issue with productivity in this country. What we need to make

:29:20.:29:25.

sure in order to raise living standards for everybody regardless

:29:26.:29:31.

of where they work, is to raise that productivity. That's why we are

:29:32.:29:35.

investing in infrastructure, investing in skills, doing all those

:29:36.:29:38.

things the previous government didn't do to make our country more

:29:39.:29:44.

productive. Can my right honourable friend confirm for the avoidance of

:29:45.:29:49.

doubt, is there a pay premium for the public sector over the private

:29:50.:29:56.

sector? There is not a pay premium. Public sector and private sector pay

:29:57.:30:01.

is roughly comparator will, but in the public sector there is an

:30:02.:30:07.

average of 10% additional remuneration in terms of pension

:30:08.:30:11.

contributions. I hope the whole house will join me in congratulating

:30:12.:30:16.

the right honourable lady the member for Tatton on her significant

:30:17.:30:28.

birthday today. Esther McVey. Older, hopefully wiser, and for all the

:30:29.:30:33.

ladies who are at my age, hitting my stride and coming of age.

:30:34.:30:46.

I need to wish my right honourable friend many happy returns and

:30:47.:30:52.

confirm the government is taking big decisions for Britain's future and

:30:53.:30:56.

investing in transport infrastructure across the North.

:30:57.:31:01.

Last week we announced road investment in Cheshire of ?65

:31:02.:31:06.

million, including ?18 million of funding for five different local

:31:07.:31:09.

road schemes and ?47 million for the middle which bypass. This is on top

:31:10.:31:14.

of the improvements the government is already making. Esther McVey. I

:31:15.:31:22.

want to welcome the Minister's reply. The local Cheshire and

:31:23.:31:26.

Warrington Lepper has bold agenda for the increasing business and the

:31:27.:31:34.

plan has an equally bold agenda for increasing the number of houses,

:31:35.:31:37.

which will bring money to the Exchequer and also houses for the

:31:38.:31:43.

country's needing housing. What we need is the mid Cheshire rail line.

:31:44.:31:47.

Can I ask the team and the Chancellor to look at this for the

:31:48.:31:53.

forthcoming budget? We need to take that as a budget representation. The

:31:54.:31:58.

basic point is we are ambitious to unlock three transport investment

:31:59.:32:01.

both residential and commercial opportunity. It's been one of the

:32:02.:32:05.

features of government policies over the past few years and I'm sure that

:32:06.:32:11.

will continue. In Cheshire and across the whole of the North, the

:32:12.:32:17.

reality is that it is infrastructure investment that will unlock a

:32:18.:32:22.

productive capacity. Can the Minister recognise the

:32:23.:32:24.

disproportionality of investment per head between the south-east and the

:32:25.:32:28.

rest of the country is unacceptable and must change? The honourable

:32:29.:32:36.

gentleman simply mistaken in his assessment of the position.

:32:37.:32:41.

Government investment is broadly equal across the different regions

:32:42.:32:45.

of our country. I would highlight to him that the central government

:32:46.:32:51.

investment going into the North is ?13 billion during this spending

:32:52.:32:54.

period, which is a record in British history. Order. As a very

:32:55.:33:01.

distinguished chartered surveyor which the honourable gentleman is,

:33:02.:33:05.

he will know that the Cotswold is a very significant distance from the

:33:06.:33:10.

North or the North West. But we will look forward with eager anticipation

:33:11.:33:13.

to hearing the honourable gentleman at some later point. The government

:33:14.:33:22.

has reduced the deficit by well over two thirds, from a post-war high of

:33:23.:33:32.

9.9% of GDP in 2009-10 to a low. We haven't done this out of some

:33:33.:33:37.

ideological obsession. We've done it because the key challenge is to get

:33:38.:33:43.

debt falling to increase the resilience of our country. If the

:33:44.:33:46.

need for ever to arise we would have the capacity to support the economy

:33:47.:33:59.

against a future shock. I thank my honourable friend for that answer.

:34:00.:34:02.

Can I make one simple request about the budget which is whatever

:34:03.:34:06.

measures he announces, he resists the temptation to pay for them by

:34:07.:34:10.

billing our grandchildren. Instead, will he continue with the excellent

:34:11.:34:17.

work that has seen us slash the percentage of GDP, the record

:34:18.:34:21.

post-war deficit we inherited from the previous government. It is not

:34:22.:34:29.

responsible to make so-called hard choices by loading the price onto

:34:30.:34:32.

the next generation and generation before that -- after that. We have

:34:33.:34:39.

to make difficult decisions and bear the consequences. At ?65,000 per

:34:40.:34:45.

household, public debt in this country is far too high. We have

:34:46.:34:55.

announced plans to reduce the deficit in a measured and balanced

:34:56.:34:59.

way to ensure debt is falling as a share of GDP. We are still seeing

:35:00.:35:08.

companies like Microsoft and Apple saving hundreds of millions of

:35:09.:35:14.

pounds in corporation tax by booking sales in Ireland. Does my right

:35:15.:35:16.

honourable friend agreed that we need to develop measures to make

:35:17.:35:32.

companies pay tax in the UK. UK corporation tax is levied on profits

:35:33.:35:36.

generated by the activities of countries within the territory. The

:35:37.:35:43.

digital companies present us with a new challenge in attribute on

:35:44.:35:46.

profits effectively to individual jurisdictions. We are continuing to

:35:47.:35:51.

work with the task force on the Digital economy and also looking

:35:52.:35:55.

carefully at ideas emerging within the EU for interim solutions pending

:35:56.:36:03.

a full international solution. Given that the previous Chancellor has now

:36:04.:36:06.

said that in 2008 the Labour government did what was necessary in

:36:07.:36:09.

a difficult situation, will the Chancellor except the reason we have

:36:10.:36:12.

thousands of people going to food banks and desperately underpaid

:36:13.:36:16.

public sector workers is entirely the fault of Tory policy? No, Mr

:36:17.:36:21.

Speaker. Of course the government needs to be able to respond to an

:36:22.:36:25.

external shock. But a prudent government has got the economy in

:36:26.:36:29.

good shape to respond before that shock arises. The problem in 2008-9

:36:30.:36:35.

was that the then Labour government was borrowing tens of billions of

:36:36.:36:41.

pounds at the top of the economic cycle, grossly responsibly. It was

:36:42.:36:52.

of course the collapse in tax revenue following the global

:36:53.:36:56.

financial crisis in 2008, and yet that is exactly what we will face

:36:57.:36:59.

unless there is a transitional deal with the EU to allow our world

:37:00.:37:05.

leading financial services sector contributing ?66 billion a year in

:37:06.:37:09.

tax revenue to operate in the single market. We've been asking the

:37:10.:37:12.

government will yet to confirm there will be a transitional deal as today

:37:13.:37:17.

is the penultimate treasury questions before the end of the

:37:18.:37:23.

year, and perhaps the Chancellor 's last Treasury questions ever, will

:37:24.:37:28.

the government promised UK-based firms a transitional deal

:37:29.:37:30.

guaranteeing market access before the end of this year? As I've

:37:31.:37:35.

already said, the government has made clear, the Prime Minister set

:37:36.:37:41.

out in the front 's speech that we want to agree an implementation

:37:42.:37:48.

period as part of a deal with the European Union. We are encouraged

:37:49.:37:52.

that the 27 agreed to start internal preparatory discussions on

:37:53.:37:56.

guidelines in relation to an implementation period. We are

:37:57.:38:00.

confident that will give Jewish businesses the confidence we are

:38:01.:38:04.

going to provide them with the certainty they required -- that will

:38:05.:38:13.

give our businesses. Infrastructure is at the heart of the government's

:38:14.:38:17.

economic strategy and our investment will boost productivity and growth.

:38:18.:38:21.

Since 2010 a quarter of a trillion has been spent on public and private

:38:22.:38:28.

sector industry. The biggest investment in transport

:38:29.:38:29.

infrastructure in generations have been made possible by this

:38:30.:38:35.

government, will my honourable friend commit to further investment

:38:36.:38:39.

in our rail network, particularly at local commute to routes through

:38:40.:38:45.

Hazel Grove? This government is committed to the largest rail

:38:46.:38:49.

investment programme since Victorian times. Including investment in HST.

:38:50.:38:55.

You'll be aware of the announcement the Chancellor made in Manchester

:38:56.:38:59.

last month of ?300 million to improve connectivity to HS2 across

:39:00.:39:07.

the northern region. Can my right honourable friend confirm his

:39:08.:39:14.

commitment and will he commit to meeting with me and local leaders to

:39:15.:39:19.

discuss how we can deliver this change for our region? The

:39:20.:39:24.

government remains fully committed to agreeing both city deals and

:39:25.:39:27.

working constructively with the Scottish Government and with local

:39:28.:39:31.

partners. I am very happy to meet with my honourable friend to discuss

:39:32.:39:39.

this further. A decent transport infrastructure is an essential

:39:40.:39:42.

platform in economic rate. The Minister will be aware investment in

:39:43.:39:46.

the north-east is only ?200 per head as opposed to ?2000 per head in

:39:47.:39:51.

London on public transport. Will he now commit to investing in the

:39:52.:39:55.

north-east, in the Tyne and we're metro, public money, not some

:39:56.:40:03.

private Finance initiative? The government is committed to

:40:04.:40:05.

increasing investment across all regions. It is 30% higher than it

:40:06.:40:09.

was under the Labour government. It would be better for the members

:40:10.:40:14.

opposite to recognise the record investment going into infrastructure

:40:15.:40:17.

which is driving productivity and growth. Will the Minister say how

:40:18.:40:23.

much investment is going into the West Midlands, as it's very

:40:24.:40:27.

important to the British economy? The investment that is going into

:40:28.:40:31.

the West Midlands as part of the Midland engine and through the

:40:32.:40:34.

devolution deal is part of the wider investment going in, the 23 billion

:40:35.:40:39.

that has been announced in investment through the National

:40:40.:40:42.

investment productivity plan. You'll be aware of the investment from the

:40:43.:40:47.

Secretary of State of the spending on rail between 2019 and 24.

:40:48.:41:01.

Since 2010, HMRC has secured more than ?53 billion from big business

:41:02.:41:09.

is alone in additional tax revenue from tackling tax evasion, avoidance

:41:10.:41:13.

and noncompliance. We have made it an offence for a corporate failed to

:41:14.:41:17.

prevent the facilitation of tax evasion by their employees.

:41:18.:41:24.

Corporation tax revenues where ?55.3 billion in 2017, the highest on

:41:25.:41:25.

record. Mr Speaker, keeping up pressure on

:41:26.:41:33.

multinationals to pay their fair share in taxes by till, will the tax

:41:34.:41:43.

revenue collected since 2010 by HMRC avoid evasion, making the UK tax cut

:41:44.:41:47.

one of the lowest in the world? My honourable friend is absolutely

:41:48.:41:52.

right, 160 billion since 2010, far more than what was raised in the 13

:41:53.:41:58.

years by the party opposite. The tax gap figures of 6.5%, better than any

:41:59.:42:06.

year and a Labour, 2005- 06 it was as high as 8.3%.

:42:07.:42:11.

Successive cuts to British corporation tax have manifestly not

:42:12.:42:17.

lead to greater business investment and according to the IFS, they are

:42:18.:42:23.

not due to greater receipt since 2010. Will the Chancellor delay

:42:24.:42:29.

proposed cuts to corporation tax? I'm surprised that the honourable

:42:30.:42:33.

lady should raise the issue of corporation tax, because we have

:42:34.:42:37.

brought corporation tax down from 28% in 2010 to 19%. We have further

:42:38.:42:42.

plans to reduce it further to 17% but the honourable lady's party

:42:43.:42:48.

wishes to inflate those rates of tax up to 26%, which will destroy jobs,

:42:49.:42:53.

destroy wealth, destroy growth, lower the amount of tax that we can

:42:54.:42:57.

collect, support vital public services that we see fine. One-way

:42:58.:43:05.

companies avoid tax is by employing people illegally. We still have too

:43:06.:43:09.

many illegal jobs in the economy in sectors like construction. Will my

:43:10.:43:14.

honourable friend resist calls to play new burdens on legitimate work

:43:15.:43:22.

and readable efforts through HMRC to root out illegal working in our

:43:23.:43:27.

economy? My right honourable friend is absolutely right, I'm always

:43:28.:43:29.

conscious as the minister responsible for strategic oversight

:43:30.:43:36.

through tax to ensure that we put in place measures that are

:43:37.:43:39.

proportionate and do not carry extra buttons for those who carry on their

:43:40.:43:42.

business and companies in exactly the correct fashion. Mr Speaker,

:43:43.:43:49.

intergovernment cooperation is vital, if we are to combat

:43:50.:43:55.

international corporate tax evasion. In February of this year, Treasury

:43:56.:43:58.

ministers withdrew from a meeting with the EU committee set up to

:43:59.:44:04.

investigate issues and prioritise reforms. What sort of message does

:44:05.:44:10.

the Secretary of State think it sends to tax evaders? The issue the

:44:11.:44:18.

honourable member raises about cooperation with other countries is

:44:19.:44:22.

an area where we have an exemplary record. We have cooperated with the

:44:23.:44:27.

OECD on the profit shifting project and many recommendations are going

:44:28.:44:31.

through the house at this precise moment in the latest Finance Bill.

:44:32.:44:37.

Of course, we have common country reporting, where we were in the lead

:44:38.:44:46.

of that particular move in 2012. As a result of increasing the personal

:44:47.:44:53.

tax allowance and high rate threshold, 31 million individuals

:44:54.:44:56.

will see their taxable reduced, 1.3 million individuals will be taken

:44:57.:45:01.

out of income tax altogether, 585,000 individuals will have been

:45:02.:45:08.

taken out of the higher rate of tax in 2017-18. Mr Speaker, in 2017-18

:45:09.:45:13.

and beyond, basic rate taxpayers would pay ?1000 less per year in tax

:45:14.:45:19.

than they did in 2010. Can my right honourable friend confirm that

:45:20.:45:23.

employees played Michael Gove paying a basic rate in tax would need to

:45:24.:45:32.

earn -- and employee paying the basic rate in tax would need to and

:45:33.:45:37.

thousands more? I can tell my honourable friend the good news that

:45:38.:45:43.

a typical basic rate taxpayer will pay ?1005 less income tax in 2017-18

:45:44.:45:53.

then in 2010-11. Finally, Mr Nigel Huddlestone? I'm pleased that 3

:45:54.:45:59.

million of the lowest paid are taken out of

:46:00.:46:04.

and to pay income tax, by this government. Can we find a mechanism

:46:05.:46:12.

for those who want to pay more tax to do so? Mr Speaker, and always

:46:13.:46:17.

very open to receiving from colleagues around the house.

:46:18.:46:22.

Receiving ideas for specifically targeted taxes, and if my honourable

:46:23.:46:26.

friend has such an idea, I would be very pleased to receive it. Topical

:46:27.:46:34.

questions, Sir Desmond Swain. As we look ahead to GDP figures out

:46:35.:46:39.

tomorrow and to the budget in one month's time, my focus is on three

:46:40.:46:42.

key challenges that we need to meet as we seek to build an economy that

:46:43.:46:48.

works for everyone. The first is protecting the economy by managing

:46:49.:46:52.

short-term uncertainty. The second is achieving a good Brexit outcome,

:46:53.:46:57.

and the third is addressing the longer term productivity challenge

:46:58.:47:01.

to ensure that real wages and thus living standards can continue to

:47:02.:47:06.

rise. Everything my department does will be focused towards those three

:47:07.:47:13.

objectives. What revenue has the privatisation programme raised and

:47:14.:47:16.

what would be the cost of nationalising the public utilities?

:47:17.:47:22.

Well, Mr Speaker, I would refer sellable friend to the analysis that

:47:23.:47:28.

the Conservative Party did at the time of the general election with

:47:29.:47:33.

the proposals, if we can call them that, made by the opposition party

:47:34.:47:38.

at the time. The government's policy is to sell assets when there is no

:47:39.:47:43.

longer a policy reason to retain them, and invest the proceeds of

:47:44.:47:49.

such sales in policy priorities. Nationalising assets would increase

:47:50.:47:54.

public sector net debt, increasing the debt interest bill which would

:47:55.:47:58.

divert public spending away from more valuable areas. It would also

:47:59.:48:04.

mean that fewer investment needs of any nationalised industries would

:48:05.:48:07.

have two compete for capital with our public services. I've listened

:48:08.:48:14.

very carefully to the Chancellor's responds to the honourable member

:48:15.:48:18.

for Aberdeen North and my honourable friend for Ilford North. On the

:48:19.:48:23.

issue of no deal. Can I tell him that his response was crushingly

:48:24.:48:26.

disappointing? Expressions of hope of a deal are just not good enough.

:48:27.:48:33.

The Chancellor knows the economic peril our country faces if there is

:48:34.:48:38.

no deal and described it rightfully as a worst-case scenario. Can I urge

:48:39.:48:42.

him, in the interests of our country, to have the courage of his

:48:43.:48:46.

convictions, stand up and face down his opponents in Cabinet and

:48:47.:48:51.

confirmed today that, like us, he will not support or vote for a no

:48:52.:48:59.

deal Brexit? Mr Speaker, as the honourable gentleman very well

:49:00.:49:04.

knows, our clear objective, our priority, is to achieve a deal with

:49:05.:49:10.

the EU. Our preference would be for a deal that gives a comprehensive

:49:11.:49:14.

trade investment and security partnership between the UK and the

:49:15.:49:20.

European Union in the future. As part of such a deal, we will seek an

:49:21.:49:25.

implementation phase that gives British businesses and government

:49:26.:49:28.

agencies proper time to prepare for the new circumstances they will

:49:29.:49:34.

face. If he cannot stand up to his opponents on a no deal Brexit, can

:49:35.:49:39.

he stand up to them on the issue of the transition period? Business

:49:40.:49:42.

leaders yesterday made it clear that they need the certainty now that

:49:43.:49:46.

there will be a sensible transition period that the Prime Minister

:49:47.:49:51.

yesterday showed more confusion in her statement giving the impression

:49:52.:49:54.

that the transition is to be negotiated only after we have

:49:55.:49:58.

settled on what she describes as the future partnership of what Europe

:49:59.:50:02.

will be. Businesses cannot wait. They need to plan now. Jobs are in

:50:03.:50:07.

jeopardy now. If the Prime Minister is not willing to stand up to the

:50:08.:50:13.

wrecks it Brexiteers in her party, will be Chancellor make it clear in

:50:14.:50:15.

the way that the Prime Minister failed to do yesterday and as

:50:16.:50:20.

business leaders have been calling for, we need the principles of any

:50:21.:50:28.

transition confirmed by the end of the year. The honourable gentleman

:50:29.:50:31.

is correct to say that the matter is urgent and pressing and that is why

:50:32.:50:35.

we were so pleased that last week at the European Council B 27 agreed to

:50:36.:50:41.

start internal procurator rue discussions in relation to an

:50:42.:50:45.

implementation period. I'm confident we can give businesses the

:50:46.:50:47.

confidence and certainty that they need. Thank you, Mr Speaker. Can my

:50:48.:50:54.

right honourable friend tell us what estimate is made of the effect of

:50:55.:50:58.

the reduction in corporation tax rates on unemployment? I thank

:50:59.:51:07.

durable member for his question. We have been cutting corporation tax

:51:08.:51:11.

dramatically and I can inform him that we have raised, as a

:51:12.:51:15.

consequence, 50% more in corporation tax today than we did in 2010. Thank

:51:16.:51:24.

you, Mr Speaker. The Chancellor will be aware that the Office of National

:51:25.:51:28.

Statistics have revised downwards the UK positive net international

:51:29.:51:33.

investment position of ?470 billion to -?20 billion. What further shocks

:51:34.:51:40.

of this magnitude is he expecting as a result of his government's

:51:41.:51:47.

handling of the EU negotiations? Mr Speaker, if he looks at the

:51:48.:51:52.

revision, he will know the cause of it is lower than anticipated returns

:51:53.:51:58.

on UK investment stocks held overseas, principally returns on

:51:59.:52:03.

mining related and petroleum related activities. Thank you, Mr Speaker.

:52:04.:52:09.

The power station site is a large strategic site in the West Midlands.

:52:10.:52:13.

Will my right honourable friend join me in urging all parties involved in

:52:14.:52:18.

the redevelopment to be ambitious, bold and visionary, and also outline

:52:19.:52:23.

what government assistance is available to attract innovative

:52:24.:52:29.

high-tech businesses? Mr Speaker, I would almost certainly join my

:52:30.:52:33.

honourable friend in celebrating the project and urging everyone working

:52:34.:52:36.

on it to be as ambitious as possible. In terms of support, since

:52:37.:52:42.

2010, her area has benefited from over ?300 million in grants to

:52:43.:52:47.

support cutting-edge innovation and this government welcomes private

:52:48.:52:51.

investment in innovative and high-tech businesses across the

:52:52.:52:55.

economy, which is why at the 2016 Autumn Statement we announced an

:52:56.:53:00.

additional ?4.7 billion for research and abandonment. Thank you Mr

:53:01.:53:06.

Speaker. The Scottish National Party has asked the government to take

:53:07.:53:11.

action to enable VAT to be reclaimed by the police and fire rescue

:53:12.:53:15.

service, in the same way that they have taken action for our national

:53:16.:53:22.

bodies, such as Highways England to be allowed to cover that. If the

:53:23.:53:27.

action is taken for Highways England, why can't it be taken for

:53:28.:53:31.

police Scotland and fire rescue? Will he commit to doing that in the

:53:32.:53:37.

next budget? As the honourable lady will know, when the Scottish

:53:38.:53:40.

Government took the decision to restructure their police and Fire

:53:41.:53:43.

Services, they went into that decision with their eyes wide open.

:53:44.:53:48.

They knew what the VAT consequences of that measure would be. So, it is

:53:49.:53:53.

really down to the SNP to answer these questions of themselves. Mr

:53:54.:53:59.

Speaker, could my right honourable friend say when the Treasury is

:54:00.:54:03.

likely to give you sign off to HS2 phase to be, which of course, Mr

:54:04.:54:09.

Speaker, you will know, runs through Cheshire? I thank the honourable

:54:10.:54:17.

member for the question, I will take the matter up with the member for

:54:18.:54:23.

transport and get back to him. Mr Speaker, inflation stands at a

:54:24.:54:28.

staggering five year high. Businesses in Scotland, Falkirk and

:54:29.:54:31.

across the UK have to face the prospect of increased trade tariffs

:54:32.:54:36.

post Brexit. On the high street, it's becoming that businesses closed

:54:37.:54:45.

down as people buy online, leaving town centre is struggling. As

:54:46.:54:51.

Secretary of State, spoken on the possibility of businesses in town

:54:52.:54:54.

centres, could they cope with online trade and impending extra budgets?

:54:55.:55:02.

We are acutely aware of the fact that inflation has spiked. Most

:55:03.:55:07.

forecasters, the overwhelming majority, expect it to start to fall

:55:08.:55:13.

again in the New Year, the spike of inflation has been driven primarily

:55:14.:55:17.

by a depreciation in the value of sterling last year. But I will take

:55:18.:55:24.

his comments on VAT as a representation for the budget and I

:55:25.:55:28.

will look at them carefully. Mr Speaker, could I urge the Chancellor

:55:29.:55:33.

to project the representation we heard from the Shadow Chancellor? If

:55:34.:55:38.

you cannot agree a price, you cannot do that until you know what you are

:55:39.:55:41.

paying for and only a fool would write a blank cheque of taxpayers

:55:42.:55:46.

money? My honourable friend is absolutely right, we should not be

:55:47.:55:50.

giving away our negotiating positions where we are going into

:55:51.:55:53.

one of the most important negotiations the country has ever

:55:54.:55:57.

been involved in which is why we to ensure that we are prepared for all

:55:58.:56:01.

eventualities. I'm delighted to meet with my honourable friend tomorrow

:56:02.:56:06.

to discuss that in more detail. I'd like to raise the issues that we are

:56:07.:56:11.

having with mobile banking in my constituency. I know when two

:56:12.:56:16.

different banks have arrived with problems of people queueing in rough

:56:17.:56:19.

weather and getting wet, and problems with paper banking. Could

:56:20.:56:26.

members of the front bench bring forward waste to reorganise mobile

:56:27.:56:29.

banking, make it more user-friendly and get banks to cooperate with one

:56:30.:56:33.

another in terms of delivery of the vital service in the Highlands? Bank

:56:34.:56:41.

branches are vital to many communities, and I'm sure they will

:56:42.:56:45.

have heard your concerns but they are commercial decisions and one

:56:46.:56:48.

should recognise that branch visits have fallen by roughly a third since

:56:49.:56:57.

2011, there is one fifth less cash used for payments. These are changes

:56:58.:57:00.

in the market that are reflecting how branches and mobile branches are

:57:01.:57:08.

used. Would my right honourable friend accept that the contribution

:57:09.:57:13.

made by financial services fastly outweighs the contribution to the

:57:14.:57:17.

EU, by getting a sensible deal from day one is not only imperative that

:57:18.:57:22.

much more likely to be achieved by the patient work of my right

:57:23.:57:25.

honourable friend then the anti-business rhetoric of those

:57:26.:57:26.

opposite? My honourable friend is quite right.

:57:27.:57:35.

This is an industry that pays over ?71 billion in tax to the Exchequer,

:57:36.:57:40.

employs over 1 million directly, 2.2 million through the sector as a

:57:41.:57:46.

whole. He will know through his work as the chair of the all-party group

:57:47.:57:51.

of Gibraltar Newport and is not just financial services within the UK but

:57:52.:57:55.

our links with industries, including in territories such as Gibraltar.

:57:56.:57:59.

Teachers have travelled to lobby Parliament because of the severe

:58:00.:58:03.

cuts they've had in their pay in real terms. The Chief secretary has

:58:04.:58:08.

said she's lifted the pay cut due to the pressure Labour has placed on

:58:09.:58:12.

her. Can she confirm her department will fund the recommendations of the

:58:13.:58:16.

pay review body rather than cash strapped local authorities? The

:58:17.:58:22.

facts of the matter are that teaches an average received a 4.6% pay rise

:58:23.:58:29.

last year, including promotions and responsibility allowances. Pay in

:58:30.:58:38.

schools has lots of flexibility and headteachers can how they pay

:58:39.:58:44.

teachers. It was an average of 4.6% last year. It will be done to the

:58:45.:58:48.

Department for Education to look at the specific circumstances. Does the

:58:49.:59:01.

Chancellor share my frustration that since the EE referendum, a number of

:59:02.:59:05.

senior politicians have been talking down the economy, and shouldn't they

:59:06.:59:11.

be talking a couple? We have a great future outside the European Union.

:59:12.:59:16.

Yes, and as I said in my remarks earlier, the UK economy is

:59:17.:59:21.

fundamentally strong. We have the world's 's second-largest services

:59:22.:59:25.

export sector at a time when emerging economies across the globe

:59:26.:59:29.

are sucking in new demand for services. We have a global lead in

:59:30.:59:33.

various areas of emerging technology that will drive the Fourth

:59:34.:59:37.

Industrial Revolution. This country as a bright, long-term future. Of

:59:38.:59:42.

course we have to deal with short-term uncertainty and tackle

:59:43.:59:45.

our productivity challenge. But we fundamentally good shape. Given that

:59:46.:59:52.

support for a single Scottish police force was in the 2011 Scottish Tory

:59:53.:59:56.

manifesto, can we assume that means the government think the fee is a

:59:57.:00:02.

price worth paying? Or will they finally see sense and scrap the fact

:00:03.:00:12.

on Scotland's services? I'll give exactly the same answer which is

:00:13.:00:16.

that at the point the Scottish Parliament and government decided to

:00:17.:00:19.

take that decision, they knew that by structuring the police services

:00:20.:00:25.

and the Fire Services in the way they chose to lead to the outcome

:00:26.:00:28.

that they should have expected all along. What does the Chancellor

:00:29.:00:37.

believes that we need to do to improve productivity, which is

:00:38.:00:41.

rightly one of his three priorities? We need to invest in our

:00:42.:00:45.

infrastructure, we need to invest in the skills of our people, we need to

:00:46.:00:51.

ensure that our high-growth businesses have access to long-term

:00:52.:00:56.

capital, and we need to address the regional disparity in productivity

:00:57.:01:00.

performance. If we can tackle those for things, then we can start to

:01:01.:01:05.

close Britain's productivity gap and see real wages rising sustainably

:01:06.:01:11.

over many years ahead. Speaking to the Treasury Select Committee

:01:12.:01:13.

earlier this month about the transition agreement for exiting the

:01:14.:01:16.

European Union, he said it would still have a high value at Christmas

:01:17.:01:20.

and early in the New Year but as we move through 2018, its value to

:01:21.:01:25.

everybody will diminish significantly. Yesterday the Prime

:01:26.:01:29.

Minister told us we won't get a transition agreement until the

:01:30.:01:34.

earliest October next year. Does the Chancellor stand by the different

:01:35.:01:39.

view he expressed a fortnight ago? As I've said several times today, we

:01:40.:01:46.

are reassured by the fact the European Council 27 agreed to start

:01:47.:01:50.

the internal preparatory discussions on unemployment Haitian period. We

:01:51.:01:54.

are absolutely aware of the needs of business in this area and they have

:01:55.:01:59.

been reinforced this week. We are confident we will be able to deliver

:02:00.:02:03.

reassurance to business in accordance with their needs. Can I

:02:04.:02:09.

urge my right honourable friend when looking at the business case for HS2

:02:10.:02:18.

phase 2B, to consider the additional cost it will cost the Exchequer to

:02:19.:02:27.

build over the Cheshire salt fields. We discussed this issue when I was a

:02:28.:02:33.

transport Minister, and the implications of the typography will

:02:34.:02:39.

be taken into consideration as part of the business case. When the

:02:40.:02:44.

honourable member was a transport Minister he enjoyed telling us who

:02:45.:02:48.

travel to work by bus. I remember thinking the fellow passengers must

:02:49.:02:53.

have been exhilarated to know they were accompanied by the

:02:54.:02:55.

Parliamentary Under-Secretary of State for bosses. The Chancellor has

:02:56.:03:03.

acknowledged that the fall in the exchange rate following the Brexit

:03:04.:03:08.

vote has pushed up inflation. What's the Treasury's estimate of the

:03:09.:03:12.

impact of this on people's standard of living? The honourable lady will

:03:13.:03:19.

be aware of the increase in inflation, CPI inflation at 3%. Most

:03:20.:03:24.

forecasts suggest it may go 0.1% higher before falling steadily from

:03:25.:03:30.

late this year. Obviously any increase in inflation will have a

:03:31.:03:34.

negative impact on real wages. We look forward to CPI inflation

:03:35.:03:41.

falling and real wage growth resuming next year. The temptation

:03:42.:03:46.

to hear remaining colleagues is too powerful. And Soubry. Mr Speaker,

:03:47.:03:52.

the Chancellor in his efforts to secure a good Brexit deal and a

:03:53.:03:57.

transition period has the confidence and support not only members on this

:03:58.:04:01.

side of the House but across the whole of British business. Unlike

:04:02.:04:07.

the party opposite which inspires complete fear with their Marxist

:04:08.:04:16.

mayhem. Could my right honourable friend confirmed that it really is

:04:17.:04:19.

in the best interests of British business to secure a transition

:04:20.:04:24.

period as a matter of some urgency, and will he agree to make sure he

:04:25.:04:27.

can do all he can to get that transition period? Yes, British

:04:28.:04:32.

business has made clear it wants the earliest possible certainty about

:04:33.:04:40.

the implementation arrangements, and it's also made very clear that it

:04:41.:04:46.

doesn't want any Marxist mayhem. Can I ask a question consisting of ten

:04:47.:04:53.

words or fewer. Goodbye begged the Chancellor, today I've got a teacher

:04:54.:05:00.

in this House visiting me, coming from a school, they've run out of

:05:01.:05:02.

money for photocopying. They've run out of money for books in the

:05:03.:05:06.

library. If he wants to do something about productivity, invest in

:05:07.:05:12.

schools now. The honourable gentleman seems to have missed the

:05:13.:05:15.

announcement just before the summer that we are putting 1.3 billion more

:05:16.:05:21.

into the front line. Not by taking in more taxes but by using the money

:05:22.:05:28.

we have across government better. The previous Chancellor of the

:05:29.:05:32.

Exchequer implemented second home stamp duty levy which has delivered

:05:33.:05:37.

?5.11 million into the Cornish economy and are set to deliver 1000

:05:38.:05:42.

homes. Can I seek assurances this money will continue into the future?

:05:43.:05:48.

We consider all areas of taxation in the run-up to all fiscal events but

:05:49.:05:53.

I've certainly heard my honourable friend 's comments and will take

:05:54.:05:59.

them as a representation. Order. Urgent question. John Woodcock.

:06:00.:06:09.

Thank you. To ask the Foreign Secretary if he'll make a statement

:06:10.:06:12.

on the liberation of Raqqa and the future of the campaign.

:06:13.:06:23.

Can I thank the honourable gentleman for his continued engagement on this

:06:24.:06:29.

important issue. Raqqa was officially liberated on the 20th of

:06:30.:06:33.

October. The Assyrian Democratic forces supported by the global

:06:34.:06:39.

coalition against Daesh began operations to liberate Raqqa in June

:06:40.:06:43.

20 17. Military operations are ongoing. My right honourable friend

:06:44.:06:47.

the Secretary of State

:06:48.:06:48.

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