Treasury Questions House of Commons


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Hello, good morning and welcome to

our live coverage of the House of

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Commons. MPs return to the detail of

the European Union withdrawal bill

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with the first of two days of debate

to cover the remaining stages in the

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Commons before the bill goes to the

Lords at the end of the month.

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Ministers have tabled a series of

amendments that will limit their

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ability to use Henry VIII powers to

an end EU rules and regulations than

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they are transferred into the UK

statutory book. Votes are expected

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at 4pm and 7pm today. Do join me for

a round-up of the day in bed houses

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of parliament at 11pm tonight at

first the questions to the

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Chancellor of the Exchequer Philip

Hammond and his charity team. -- and

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his Treasury team.

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Order, order. Questions to the

Chancellor of the Exchequer.

Number

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one. Could I firstly can graduate my

honourable friend trolley working as

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done to promote marriage and civil

partnerships and all the benefits

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are two families in wider society is

thereof and can I assure him that

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the design of the marriage allowance

is such that it will indeed continue

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to rise as the Raby personal balance

as they did in the recent budget?

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Thank you. Given me £48 billion of

cost to the Exchequer from family

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breakdown, will my honourable friend

meet me and a delegation to discuss

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how we can further strengthen this

three tax system to help you of what

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they own.

My honourable friend is

pushing in a direction in which we

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have already travelled in the last

budget, making provision for

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ensuring that those who have been

married or in a civil partnership

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and have a deceased partner are able

to claim the marriage allowance and

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bank date and claim some full years

and I will of course be happy to

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meet with him and his colleagues to

discuss this matter further. -- four

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year.

In April, the national living

wage will write to £7 83. In total

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that means an annual pay rise of

over £2000 for a full-time national

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living wage workers since it was

introduced in 2016. It has helped

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reduce the proportion of full-time

jobs that although page to the

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lowest level in at least 20 years.

Sustaining long-term pay growth

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relies on improving productivity and

that is why we have increased the

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national productivity investment

fund to over £31 billion Enviro

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taking further action on skills,

retraining and capital investment as

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they build a bridge and fit for the

future.

Thank you. The Chancellor

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tell the house whether income in a

quality has gone up or down since

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2012 -- inequality has gone up since

2010 and how does it compare to the

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last Labour governments?

Income

inequality is lower than it was in

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22 in -- 2010 and remains lower than

it has at any point during the last

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Labour governments. The coefficient

and international recognised measure

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of coefficient inequality is now

lower by 20% and in 2010. Since my

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statement in 2016, Wien increased

the tax contributions of the highest

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earners while those on low incomes

have gained overall. -- we have

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increased.

Thank you. The problem

the coming constituencies like mine

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where more and more people have to

go to food banks, what is being done

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in terms of economic development of

the country to assure that they get

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better paid jobs in places that

deprived like Holden? -- like

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Halton.

Good point. Better wages can

only be increased through increased

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productivity meaning investment in

infrastructure, skills in training,

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research and development both public

funding and tax incentives for

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private funding and it means

ensuring that capital is available

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for businesses to invest in the

equipment that already productivity

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of their workers. The governments's

ambition is for a high wage, high

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skill economy and we are investing

to deliver that.

Can the Chancellor

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confirmed that the lowest paid have

in fact been a 7% real term wage

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increase since 2015 and inequality

is now at its lowest level in 20

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years?

My honourable friend is

right. Income inequality is lower

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than at any point during the Labour

governments as I have said already.

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People in full-time work on a

national living wage and then a

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£2000 per year pay increase as a

result of the national living wage

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and of course everyone in work has

seen an improved take home pay as a

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result of the significant increases

in the person not an ounce which

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this governments committed to and

which is delivering.

They can fly's

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a living wage is a pretender living

wage and is not available to those

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of the age of 25. Can he explain why

the wage gap in the minimum wage has

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increased in his budget between £3

45 previously to £3 63 between

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25-year-olds and 16-17 -year-olds.

How does that work every one of the

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youngest are not being paid equally?

The... Rates for people under 25

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have been increase in the budget by

the biggest amount ever.

The gap.

Of

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course we want to see high rates of

employment and high rates of pay

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across all age groups in the economy

but for young people, the most

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important thing, the most important

thing and be a low pay commission

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has highlighted this fact, the most

important thing is that they get

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into work because by being in work

when they are young, they are more

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likely to remain in sustainable work

throughout their lifetime.

Number

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three.

Thank you. Her Majesty's Treasury

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regularly engages with the airline

industry an air passenger duty. Any

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autumn budget, we froze 20 APD rates

at all 19 levels for short haul

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passengers on long haul a cunning

passages. This provided a freeze for

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95% of passengers.

May I

congratulate my honourable friend on

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his appointment? He will be aware

that airlines such as FlyBe based at

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Exeter Airport to undertake a lot of

domestic flights are hit twice by

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APD to take off and landing on

international flights. Treasury

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officials with a new minister will

tell him that any change is

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impossible but as they exit the EU,

is this an anomaly something you

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will look at with a view to changing

it?

I'm grateful to my honourable

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friend press kind remarks. Can I pay

to beat my predecessor, a member for

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Harrogate, Lingo is well regarded

across the house as my honourable

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friend says, the Government is

unable to exempt the return leg of a

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drastic flight. Of course, as they

leave the European Union, lanky

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change in the Treasury will keep

that under consideration but we

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certainly recognise the economic

significance of regional airports

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like his own in Exeter and that is

why we have kept short-haul rates

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frozen since 2012 and in 2015...

The

governments's own figures show

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Newcastle Airport will be most

affected by any car to edit larger

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tax in Scotland and the continued

uncertainty on this issue is

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incredible damaging. -- any cuts.

Have any progress being made and

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Abbey in a position to confirm our

regional airports will be protected

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in the effects of those cuts?

You

honourable lady is right thing is

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because Newcastle Airport and others

are important to the economy of the

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north-east and as she has heard in

my response to the prior question,

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the EU rules to prevent us from

changing the rules with regards to

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the return leg of a domestic flight.

We will keep this under

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consideration and we have taken

other important steps such as

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keeping the rate frozen, exempting

children and it is wrote saying that

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air passenger duty races over £3

billion per year so it does make an

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important contribution.

There are

substantial benefits to reducing and

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taking away passenger duty, with

response to GDP and too risen. In

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Northern Ireland, it particularly

distorts trade between ourselves and

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the Irish Republic. There was a

commitment in the budget to have a

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review. Could we have an update on

where that review on our passenger

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duty is?

IAM grateful to my

honourable friend for that question.

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As he knows, we are committed not

just do passenger duty but too risen

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in Ireland and we will report back

at that review is underway that will

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be by the autumn budget this year.

Number four.

My honourable friend

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will know there is an exemption in

the charge for inheritance tax for

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donations to political parties that

does not exist in relation to

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donations to referendum campaigns

but I can inform him that I and my

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honourable friend, the Chancellor,

have discussed the issues he has

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raised over previous weeks can be

sympathetic to the looking carefully

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at how the law may be changed for

future campaign referendums.

Thank

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you. In the last nine years, there

have been 23 retroactive tax changes

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where there has been a unfairness,

error or unduly odorous taxation. In

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1994 when this law was drafted,

there was no idea that there would

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be a succession of referendums and

it is deeply unfair that people have

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contributed to the referendum in

Scotland and the Brexit referendum

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and may find very large tax bill is

winging their way to want them, not

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the least as Her Majesty's

governments spent £8 million of

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taxpayer money we nearly any Brexit

referendum. -- spent £8 million will

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he nilly. Yellow like we do not

change tax retrospectively but my

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honourable friend and I will look

very carefully at these issues

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raised.

Can I had one further caveat

given that the HM RCR now looking at

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all the other referendum that are

taking place? There was also another

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issue which, when looking at this,

and without them to take into

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consideration and those

organisations that are not charities

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but do public dude are now beginning

to be concerned that H M R C will

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pursue individuals who have made

individual donations to them but

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they are not charities novelist

parties. I wonder of my honourable

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friend Woodward at that as well.

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He makes an interesting point, they

would like to make representations

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on the specific point, I would be

happy to discuss them.

Number five.

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Mr Speaker, with your permission, I

would like to answer this question

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together with question number ten.

In 2010, we inherited the largest

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deficit since the Second World War.

We have successfully reduced that by

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three quarters. But our debt is

still too high. High levels of debt

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leads us vulnerable to economic

shocks. That is why the Government

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has clear and detailed fiscal plans

to reduce borrowing further and

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ensure debt falls going forward.

With the Chancellor agree with me

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that it's essential to continue to

show that we live within our means,

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because the alternative, that

failure to do so, merely passes our

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bills onto the next generation?

I

absolutely agree. The policy of

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increasing borrowing means passing

the cost of today's consumption on

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to future generations and wasting

more taxpayers' money. Even Labour's

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shed education spokesman has

acknowledged this is an ultra high

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risk strategy, gambling with our

economic future.

Does he agree with

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me that that is bad for the economy,

bad for the young people had to pay

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the debts, or should they followed

the model shown by the Opposition

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that shows all the qualities of the

Parliamentary sewerage system?

I can

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agree on that. Any party that

aspires to Government and is serious

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about properly managing the public

finances should be able to explain

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how it will fund the expenditure

it's committing to, and should be

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able to do that without consulting

an iPad.

The Chancellor has said he

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doesn't want to income or debt, they

may yesterday the Treasury approved

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a minute providing for a contingent

liability on Carillion, in which we

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have had no estimate. Did the

Chancellor please explain to the

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House what sort of expenditure is

going to be covered? He has given an

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indemnity to the receiver. How he is

going to report to the House on how

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much money the Government is going

to be liable for?

The Government has

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given an indemnity to the official

receiver in order to take on the

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role of special manager of the

assets of brilliant firm to ensure

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continuity of public services in the

many local authorities that have

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contracts with Carillion. What the

Treasury has done is provided the

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official receiver with a line of

credit that enables the official

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receiver's offers to operate the

company's public sector contracts,

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recovering the costs in due course

in the department that would have

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paid fees for their services anyway.

The official receiver is only able

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to step in and do this with the

Treasury's underwriting, and we

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deemed it appropriate to do so.

There is borrowing against the UK

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governments, can Chancellor advise

the House what exposure his

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Government has from lending to

Carillion?

I'm not aware of any

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direct exposure of the Government as

a creditor of Carillion, but I will

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check and write to the honourable

gentleman.

We have made good

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progress in cutting the deficit, but

the national debt remains a

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dangerously high level and will only

start to reduce next year, ten years

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after the crash. Cantlay

chancellorship of the House how our

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level of national debt and GDP

relate to other major western

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economies?

Our debt is too high, and

that matters, in response to the

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financial crash of 2009, the

Government was able to allow data to

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rise to respond to that situation.

If we had a similar crisis now, we

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would be struggling to do that,

because we already have a debt level

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that is close to 90% of GDP. It is

necessary to get our debt level down

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to greater to deal with any crisis

that comes along in the future,

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whether internal or external.

It is

amazing that this Government wants

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to plant questions about high levels

of borrowing, given at his most

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every single one of its deficit

reduction targets and let us not

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forget, this Conservative Government

has borrowed more than any other

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Labour Government in history. Under

Labour's fiscal rules, we would

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close the deficit in day today

spending over five years. But we

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would exclude investment spending

from that figure. Given the

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challenges we face in productivity,

challenges the Chancellor has

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ordinary mentions, doesn't he

recognise that as a prudent,

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sensible way forward?

No, Mr

Speaker, nor do they. At is why they

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have already recognised their plans

with developed into a run on the

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pound. I will take no lectures from

a party that saw over a 165 present

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increase in debt and is proposing to

add more to the data just at the

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point when this Government is still

bring a reduction in debt.

Question

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six.

Isil data income has fallen

from 152 present at the start of

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2010 -- household debt has fallen. I

also note the IFS report on that

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same subjects.

I have also read the

IFS report today that highlights

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that get is a real problem for a

significant minority of low income

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households that are struggling to

pay the bills and debt repayments.

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Dusty accept that imposing a freeze

on benefits when inflation is

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standing at 3% will make things

tougher for those families?

I also

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acknowledge the report points out

the percentage of households with

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financial liabilities fell between

June 2010 and June 2014. I would

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also say the Government is fully

committed to helping the poorest.

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That is why last year the money

advice service gave 440,000 free

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client sessions to help those that

are back

the UK has the second

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highest level of household debt in

the G8. We have loan sharks

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masquerading as has good stores.

Would he agree that we have an

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unhealthy addiction to these

services?

The Government have

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empowered the independent financial

policy committee advising the

0:19:480:19:53

Government on these matters and keep

a close watch on this level of debt.

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One trend that alarms me is the

false advertising of consumer credit

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rates. Despite having the profit

credit rating, according to

0:20:020:20:09

Experian, I was told M&S bank

wouldn't give me the advertised

0:20:090:20:12

rate. What is the minister doing to

ensure that the rates advertiser

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Brexit Bill what the majority of

customers? -- the rate advertiser

0:20:210:20:28

are available to the majority of

customers?

The FCA has a wrist to

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ban products and limited fines at

its disposal and can order

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repayments. 51 present of applicants

for loans will receive the rate as

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advertised, and those returns to

which the FCA Works.

When will

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incentives to save exceed those to

borrow?

I clearly don't have a

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crystal ball, and as the economy

grows, there are different patterns

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of behaviour that will ensure. It is

not for Government to tell people

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what to do, what were trying to do

is ensure in economy where people

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have the choice.

Is the biggest

worry for so many people I meet. The

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figures released by the IFS today

show a third of those on the lowest

0:21:180:21:22

income are in net debt. This is

persistent, spiral people get stuck

0:21:220:21:26

in four years. What is the UK

Government doing to improve their

0:21:260:21:31

financial position of those

households?

We do recognise that, on

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occasion, people find themselves

with challenging debt situations.

0:21:380:21:43

That is why we committed to a

six-week breathing space and we will

0:21:430:21:48

bring that legislation forward in

due course.

If people aged under 45,

0:21:480:21:59

over a third live in households that

have a financial wealth of less than

0:21:590:22:02

zero. For too many people voters not

enough money at the end of the week.

0:22:020:22:10

From next year, individuals in

England will pay more income tax

0:22:100:22:14

than if they live in Scotland,

Harris is justified?

The Government

0:22:140:22:20

recognises the challenges facing

those on lower salaries, and that is

0:22:200:22:23

why we have increased the tax-free

allowance. We have had the eighth

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successive fuel duty frees, and does

increase the National Living Wage

0:22:290:22:34

above inflation.

The lowest paid

about a pay cut in real terms, -- a

0:22:340:22:43

pay increase in real terms, the

Government is helping?

The

0:22:430:22:49

Government does not take anything

for granted and will take a close

0:22:490:22:52

look at what happens with the

poorest in my, society.

Does the

0:22:520:23:01

Minister acknowledged that one of

the reasons for why now a quarter of

0:23:010:23:04

people on low incomes are

0:23:040:23:06

experiencing significant problems

with arrears or debt repayment is

0:23:060:23:11

because his Government has not taken

on board Labour's programmed to rein

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in credit card debt, and secondly

because of his changes to the tax

0:23:150:23:20

threshold had been outweighed for

the poorest people by alterations to

0:23:200:23:23

Social Security?

The honourable lady

needs to acknowledge that the

0:23:230:23:33

transformation the National Living

Wage has brought to so many people.

0:23:330:23:38

Interest payments as a proportion of

income are currently the lowest on

0:23:380:23:42

record.

Question seven.

The UK

internal market benefit all nations

0:23:420:23:52

of the UK. The Scottish Government's

own latest figures show that 67% of

0:23:520:23:59

Gollum's exports are to the rest of

the UK. -- Scotland's exports. It is

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vital that we can double that it is

vital we continue to support these

0:24:090:24:18

exports, and that there are no

barriers to living and working in

0:24:180:24:22

the UK are created as we meet the

EU.

Does my right honourable friend

0:24:220:24:27

agree with me that leaving the UK

single market would pose a far

0:24:270:24:32

greater risk to the Welsh, Scottish

and Northern Island economies and

0:24:320:24:36

leaving EU single market?

That is

absolutely true that for both

0:24:360:24:43

Scotland and Wales plays, making the

UK single market would be far more

0:24:430:24:47

economically damaging then leaving

the European single market. Which

0:24:470:24:52

does beg the question, why the SNP

has advocated so strongly remaining

0:24:520:24:59

in the European single market, but

also advocated so strongly breaking

0:24:590:25:04

up the UK?

That would be

interesting, day/night has nothing

0:25:040:25:10

to do with Government policy. Are

now very briefly, Chancellor, stick

0:25:100:25:17

to your last. Your business, not

theirs.

That is the nicest thing

0:25:170:25:24

anyone is likely to say to me today!

The Chancellor is right to extol the

0:25:240:25:29

benefits of the UK single markets,

Dame isn't the hypocrisy exposed by

0:25:290:25:36

hearing the chief executive of error

bars saying that leaving the

0:25:360:25:39

European single market would be

damaging for the UK economy, we

0:25:390:25:43

don't have to pick and choose, why

won't he commit to keeping us in the

0:25:430:25:48

European single market?

The

honourable gentleman will know that

0:25:480:25:52

I arguing for the last year for a

jobs-first Brexit, which means

0:25:520:26:01

negotiating the close as possible

relationship with the European Union

0:26:010:26:03

are to be leave that union, that is

what we intend to do.

The

0:26:030:26:09

contribution of the UK internal

market is of course important to

0:26:090:26:12

Wales. The economy of the southeast

England has steamed ahead under this

0:26:120:26:18

Government. Will the Jazz a commit

ending this inequality by

0:26:180:26:24

rebalancing the UK internal market

and showing it is not based on

0:26:240:26:29

Westminster diktats, rather a

partnership?

We have identified

0:26:290:26:34

regional disparity as one of the

drivers of low productivity in the

0:26:340:26:40

UK, raising the productivity

performance, particularly of our

0:26:400:26:43

great cities outside London, is key

to raising UK performance overall.

0:26:430:26:51

Question eight.

The decision

announced at the autumn budget

0:26:510:26:59

raised £1.2 billion to the Welsh

Government's budgets, including over

0:26:590:27:06

£65 billion -- six £5 million thanks

to the Barnett Formula. This ensures

0:27:060:27:11

the block grant will increase.

0:27:110:27:16

The headline grabbing announcement

in the budget was the alleged £1.2

0:27:160:27:19

million uplift repeated by the

Chancellor in his answer, to the

0:27:190:27:25

Welsh finances. This is an example

of financial trickery similar to the

0:27:250:27:31

big red buses. This is not true that

this is half made up in the form of

0:27:310:27:38

loans?

I do not agree with the

analysis and be slightly cavalier

0:27:380:27:43

attitude to £650 million of taxpayer

money. This money is at the disposal

0:27:430:27:47

of the Welsh Government and can be

used for important things like

0:27:470:27:51

helping to support businesses and

get on the property ladder to help

0:27:510:27:54

to buy.

Given last week, for the

first time ever, the tools on the

0:27:540:28:01

Severn crossing went down, there was

going to be greater demand for use

0:28:010:28:04

of the M4 but since 2012, the Labour

Welsh Government have done nothing

0:28:040:28:11

about using the public money

available to it to expending the M4.

0:28:110:28:16

Is not the case that public money

should be spent on this and it is

0:28:160:28:20

available in Wales from this

governments.

My honourable friend

0:28:200:28:25

makes a good point and as I said in

the answer to previous question, we

0:28:250:28:28

have increased the budget for Welsh

Government. How they choose to spend

0:28:280:28:32

that and how wisely they do it is

another question.

Number nine.

Chief

0:28:320:28:38

Secretary.

The unemployment rate is

now the lowest since 1975. 300

0:28:380:28:46

million people more in jobs since

2010. That means the ability to use

0:28:460:28:54

their talents, to support their

families and to get on in life.

She

0:28:540:28:57

was so excited to report that

banshee neglected to group that.

My

0:28:570:29:08

apologies, I would like to group it.

Well my honourable friends work with

0:29:080:29:14

me to see how Ireland could benefit

from enterprises in the Medina

0:29:140:29:21

Valley helping to drive the jobs and

wealth creation agenda on the Isle

0:29:210:29:27

of Wight?

My honourable friend does

a fantastic job of cat Chappell the

0:29:270:29:30

Isle of Wight since 2010 -- of

championing the Isle of Wight. We

0:29:300:29:37

have seen a reduction in the Isle of

Wight, many issues need addressed to

0:29:370:29:41

make sure the economy on the Isle of

Wight is competitive and dynamic. Of

0:29:410:29:46

course, the Isle of Wight ferry is a

very important service and we need

0:29:460:29:49

to make sure that the competition

and market authority have the tools

0:29:490:29:52

to deal with that but I'm very happy

to meet my honourable friend to talk

0:29:520:29:56

about what more region do to boost

the Isle of Wight. You like thank

0:29:560:30:00

you. I'm the chairman of the

all-party group of youth employment

0:30:000:30:05

in the track he figures. Good my

honourable friend talk about job

0:30:050:30:11

creation and welfare are

dependencies in 2010?

I congratulate

0:30:110:30:15

my honourable friend on his work

and, since 2010, we have seen a 40%

0:30:150:30:20

reduction in youth unemployment. If

you compare that with what happened

0:30:200:30:24

under the Labour governments while

during an economic boom, youth

0:30:240:30:30

unemployment rose and those young

people were left on the scrapheap

0:30:300:30:34

rather than joining apprenticeships

and getting the training

0:30:340:30:39

opportunities under the governments.

Thank you. He was a reality check

0:30:390:30:42

for the minister. Limited well-paid

jobs, record levels of in work

0:30:420:30:47

poverty coupled with this

governments's unflinching assault on

0:30:470:30:51

the welfare safety net has

contributed to the UN estimating

0:30:510:30:54

there are 8 million households in

the UK who are food insecure. My

0:30:540:31:04

bill will robustly measure and lead

to policy development that will

0:31:040:31:07

eradicate hunger. Why about our

governments back it?

And surprise

0:31:070:31:11

the honourable lady isn't interested

in the news you heard earlier which

0:31:110:31:16

is those on the lowest incomes have

seen a 7% real terms pay rise since

0:31:160:31:24

2015 which will enable those people

to help support their families.

0:31:240:31:28

Would eg secretary agree with me

that one of the best ways of

0:31:280:31:33

creating employment is to signify

the tax structures, help small and

0:31:330:31:36

medium-sized enterprises to create

employment right across the United

0:31:360:31:39

Kingdom?

The honourable gentleman is

absolutely right and it is because

0:31:390:31:45

this governments have cut red tape,

we have cut taxes, we have cut basic

0:31:450:31:51

rate tax by £1000 for working

people. That encourages more people

0:31:510:31:55

to get jobs and introduce more

companies to take people on the land

0:31:550:31:59

that is why these economic success

they are.

Transport for the north

0:31:590:32:05

today have published their strategic

plan which forecasts a new jobs of

0:32:050:32:10

the plans are delivered. The

document is disappointing for

0:32:100:32:16

cleaver and Northern Lincolnshire.

More investment in transport any

0:32:160:32:18

north will provide those jobs. Can

the Minister given insurance that

0:32:180:32:23

resources will be available to

deliver this plan?

I'm pleased to

0:32:230:32:28

say we are investing a record amount

in economic infrastructure of the

0:32:280:32:33

EIS has said it would be a 40 year

hide by the end of the period of

0:32:330:32:38

this Parliament and in particular we

are giving money to other cities

0:32:380:32:44

like this. We allocated over £1

billion for that reason at the

0:32:440:32:49

beginning of the budget.

There are

thousands of Pirelli and the workers

0:32:490:32:55

who will turn up tomorrow I'm sure

of having a job. -- Carillion

0:32:550:33:01

workers. Carillion workers face cuts

to pensions and hundreds more firms

0:33:010:33:09

along the supply chain also

uncertain about their future. The

0:33:090:33:12

judicial role that the Treasury is

to protect our public finances. Will

0:33:120:33:16

the minister and Alex went to the

house what involvement the Treasury

0:33:160:33:22

had with the thousands of contracts

held by Carillion at the time of its

0:33:220:33:26

liquidation? We now Treasury proof

is required for these PFI contracts.

0:33:260:33:31

Can the Minister tell the house how

many PSI and PFI to contract was

0:33:310:33:35

signed by Treasurer during the

current time in the office of the

0:33:350:33:42

Chancellor? What'll happen to those

contracts and staff working on them?

0:33:420:33:45

There are loud and clear arena

signed about Carillion and why

0:33:450:33:49

instead of intervening, that the

Treasury of ministers collusion in

0:33:490:33:55

drip feeding more contracts to

Carillion to boycott and the three

0:33:550:33:59

failing company? -- to the buoy up a

failing company.

We are upset by

0:33:590:34:11

what happened at Carillion and we

will ensure those people have the

0:34:110:34:14

support of job centres to make sure

we continue to supply those public

0:34:140:34:17

services. It would be completely

wrong for a company that has got

0:34:170:34:22

itself in this they to be bailed out

by the state and that is what we are

0:34:220:34:27

not doing. We're making sure we

continue to supply those services at

0:34:270:34:31

the same time as helping people who

are working for those companies but

0:34:310:34:39

also continuing to supply public

services as they do that. If we get

0:34:390:34:44

the record of contracting, a third

of those contracts were signed the

0:34:440:34:47

previous Labour governments. One of

the most recent contracts was signed

0:34:470:34:55

by a Labour led Leeds City Council.

The fact is that we have £60 billion

0:34:550:35:05

of private sector companies which

deliver public services across this

0:35:050:35:10

country. That is an important way of

delivering our public services and

0:35:100:35:15

when there is an issue as we have

had with Carillion, we have made the

0:35:150:35:20

preparations, we have taken action

and we are sorting the situation

0:35:200:35:24

out.

We are asking questions now

about when it was obvious this

0:35:240:35:30

company was failing and what the

Treasury role was. I put it no

0:35:300:35:35

stronger than this. At this stage,

there are real suspicions that the

0:35:350:35:40

governments was too close to this

company and too wedded to its

0:35:400:35:45

privatisation role. We need full

transparency in meetings and

0:35:450:35:48

discussions that to place between

Government ministers, civil servants

0:35:480:35:53

and representatives of Carillion and

what warnings were given around

0:35:530:35:59

this, implemented or not. We now

need the Treasury to start playing

0:35:590:36:02

its proper role and provide an

independent assessment of the

0:36:020:36:05

potential costs and risks facing the

taxpayer. It has already been

0:36:050:36:12

referred to yesterday, a Cabinet

Office minutes was published after

0:36:120:36:15

the statement establishing aching

binge and liability. We urgently

0:36:150:36:18

need to know from the Treasury what

is the potential range of costs now

0:36:180:36:22

facing the taxpayer?

First of all,

we publish all those minutes, all of

0:36:220:36:30

those details of meetings already.

We are a transparent Government and

0:36:300:36:35

the make decisions on an objective

fashion. Those decisions are signed

0:36:350:36:40

off by the Treasury and signed off

by the Cabinet Office. Recent

0:36:400:36:43

decisions on Carillion contract have

been made to make sure the taxpayer

0:36:430:36:52

is protected. We always look for

value for money in the way that we

0:36:520:36:56

set up our contract and I think the

Government is dealing with this in a

0:36:560:37:02

responsible and measured way rather

than making cheap political shots at

0:37:020:37:05

a time when people's jobs are in

question and we are working in to

0:37:050:37:13

sort that out.

Chief Secretary.

We

are investing a record £41 billion

0:37:130:37:26

in our schools this year. For the

first time ever, we will have a plan

0:37:260:37:31

national funding formula are putting

in place. We are seeing and of

0:37:310:37:36

rising recently in and a national

test with England's scoring its

0:37:360:37:41

highest ever score.

Thanks to the

incredible hard work of staff,

0:37:410:37:48

children and parents in Redditch,

92% of those schools are occurring

0:37:480:37:51

rated outstanding. Leaving a great

education in maths is critical to

0:37:510:38:00

equip children in Redditch for the

economy. What support this to

0:38:000:38:03

department giving to encourage

people in Redditch to have this

0:38:030:38:09

education? Galaxie is right, maths

is vital for the future of our

0:38:090:38:12

economy. We know there is a

huge

need for people who have proficiency

0:38:120:38:21

in this area. Any shouldn't you does

maths from 16 to 18, the school will

0:38:210:38:25

receive £600.

Number 13.

The

Government has an outstanding record

0:38:250:38:36

in clamping down on tax avoidance,

evasion and noncompliance will be

0:38:360:38:40

brought in an protected £160 billion

in 2010 and no less than £8 billion

0:38:400:38:47

in 2016-17 alone from the UK's

largest companies. The tax gap at

0:38:470:38:51

the moment, 6% is the lowest, one of

world and lower than during any year

0:38:510:38:57

during the last Labour governments.

I wonder if the Minister would agree

0:38:570:39:01

that to really tackle tax evasion by

big multinational companies, a big

0:39:010:39:06

approach is needed and could he say

with his discussions around the

0:39:060:39:11

OECD, the issues he is discussing an

have found favour in a more

0:39:110:39:17

international basis.

We have, as my

honourable friend will know, the

0:39:170:39:22

night with the forefront of the

OECD's project in the common

0:39:220:39:28

reporting standards being rolled out

at the moment. We have taken further

0:39:280:39:30

measures in the budget to consult on

the taxation of digitally -based

0:39:300:39:36

companies, particularly in response

to holding tax and royalties going

0:39:360:39:41

into the role although tax

jurisdictions. That was operational

0:39:410:39:43

report back in February and he will

take appropriate action.

It is

0:39:430:39:48

embarrassing for the Government that

Carillion's chairman is an adviser

0:39:480:39:52

to the Prime Minister on corporate

responsibility. Given the level of

0:39:520:39:58

salaries and bonuses awarded to

senior management and Carillion as

0:39:580:40:01

well as improving corporate tax

evasion, what'll ligament to to

0:40:010:40:04

ensure better corporate governance

in UK companies?

I say gently to the

0:40:040:40:12

honourable lady that she does need

to check her facts because the

0:40:120:40:14

current head of Carillion is not an

adviser to the Prime Minister. There

0:40:140:40:21

was an appointment earlier which was

terminated some months ago and as to

0:40:210:40:28

her general point about corporate

governance, this Government has

0:40:280:40:34

among the most robust corporate

governance in the world and that is

0:40:340:40:37

something that this Government will

continue.

The Government has

0:40:370:40:44

undertaking a significant amount of

work to assess the economic impact

0:40:440:40:48

of leaving the EU and this is part

of the continued programme of

0:40:480:40:51

rigorous and extensive analytical

work on a range of scenarios. The

0:40:510:40:55

Government has committed to keep the

party informed, provided that doing

0:40:550:40:57

so would not risk damaging our

negotiating position.

Thank you. The

0:40:570:41:04

Chancellor has said he wants jobs

first in Brexit. Given that 81% of

0:41:040:41:10

the British economy is in the

services sector and the buoy model

0:41:100:41:17

-- EEA model is the one given in our

industries, does he agree that a EEA

0:41:170:41:23

based Brexit the only viable option

for country?

I think what we can

0:41:230:41:27

agree on is that the Government is

working to get the most ambitious

0:41:270:41:34

and secure Brexit deal, meaning a

bespoke deal that will not damage

0:41:340:41:37

the interests of the economy

long-term.

Thank you. Try the the

0:41:370:41:43

Minister to his place in the

Treasury? I'm sure he will do an

0:41:430:41:49

excellent job but isn't it the case

that it is impossible to assess the

0:41:490:41:52

impact of leaving, whether it is the

EEA are the EU, without knowing

0:41:520:41:57

where we are headed. It's time for

the Government to be clear about the

0:41:570:42:01

end stage of negotiations around

financial services and I would like

0:42:010:42:04

to see the Government publish a

position paper on financial

0:42:040:42:08

services, particularly informed by

the meeting, the Prime Minister and

0:42:080:42:12

the Chancellor had last week.

I'm

grateful to my honourable friend as

0:42:120:42:16

chairman of the select committee,

being aware of her previous exchange

0:42:160:42:20

with the Chancellor. The Chancellor

has undertaken to look at it and I

0:42:200:42:24

will be working at him and respond

in due course.

0:42:240:42:30

Academic assessments by the Treasury

are crucial, but my constituents are

0:42:310:42:36

reeling from hundreds of job losses

at Vauxhall and the comments last

0:42:360:42:40

night from the CEO of Airbus that

whatever Brexit we had it will be

0:42:400:42:44

net negative. Can I plead with the

Minister to take this seriously,

0:42:440:42:50

keep us in the single market and

customs union and my constituents in

0:42:500:42:54

their jobs?

I can assure you the

honourable lady I do take it

0:42:540:43:01

seriously and it is the Government's

intention to negotiate a special

0:43:010:43:06

partnership on economic matters. I

would technology there is room for

0:43:060:43:11

positivity. If you look at what GSK,

Apple and Google phone has said,

0:43:110:43:16

that attitude for positivity exists.

Does he agree with me that since

0:43:160:43:24

deciding to lead the EU, this

Government has overseen record job

0:43:240:43:31

in finance and figures showing

improved productivity that about you

0:43:310:43:34

agree that Britain's best years lie

ahead?

It's certainly the case that

0:43:340:43:41

negotiations this country faces are

complex, but I would take and not

0:43:410:43:45

domestic approach to all the

discussions undertaken at the

0:43:450:43:50

Treasury and elsewhere going

forwards. Mr Speaker, make principal

0:43:500:44:03

responsibility is building on the

ambitious that slide out of the

0:44:030:44:05

autumn budget to face the key

challenges we face to create a

0:44:050:44:09

economy fit for the future. I

Laporta doing so ably supported by

0:44:090:44:14

my ex-husband managerial team. Our

approach to -- my excellent

0:44:140:44:23

ministerial team. We will be fair to

the next generation by reducing the

0:44:230:44:29

national debt that remains to large.

Does my right on friend agree with

0:44:290:44:37

me that lowering business taxes, as

this Government has done, is not a

0:44:370:44:42

race to the bottom, but vital in

building the strong economy that we

0:44:420:44:46

all depend upon?

I agree. Keeping a

business tax competitive so we can

0:44:460:44:55

attract international investment to

this country is essential. There is

0:44:550:45:01

a quid pro quo, if taxes are low,

they must be paid, and we are

0:45:010:45:05

determined to insure full compliance

looking at ways of improving

0:45:050:45:10

compliance.

The NHS is in crisis due

to the tightfisted approach the

0:45:100:45:20

Johnson takes the public finances.

During any discussions he has had

0:45:200:45:27

with the Health Secretary, has the

Chancellor raised any discussion of

0:45:270:45:32

the funding crisis, and what

solutions has the right diet for

0:45:320:45:39

funding?

We put an extra £6 billion

into the National Health Service.

0:45:390:45:47

The first two weeks of the year at

the highest pressure weeks in the

0:45:470:45:52

NHS, traditionally. We have seen

extreme pressure in the last two

0:45:520:45:56

weeks. We have a influenza virus

crisis going on as well. We treat

0:45:560:46:07

the sickest patients first, and it

is right we prioritise those with

0:46:070:46:11

urgent needs.

But was an insouciant

attitude if ever there was one. It

0:46:110:46:20

is reported that the A&E department

in his constituency is struggling,

0:46:200:46:34

so what solutions does he have to

explain why so many have to wait so

0:46:340:46:41

long for emergency treatment and

what funding body the NHS?

The

0:46:410:46:45

answer to that is £6 billion, the

extra week provided to the NHS. I'm

0:46:450:46:53

going lad he raised the hospital in

my constituency, what ever the media

0:46:530:47:01

says, when one speaks to 1's own

constituents about their experience

0:47:010:47:07

at their local hospital, it is

invariably good and they have

0:47:070:47:09

nothing but praise for the service

received from our NHS.

0:47:090:47:25

Can my right honourable friend show

that as a Conservative that he

0:47:270:47:34

believes in conservation and that

will be something standing for

0:47:340:47:36

future generations to enjoy?

I agree

with the assertion of the importance

0:47:360:47:42

of our Heritage, which is why the

Department last year gave grants of

0:47:420:47:50

millions in that respect. As in the

respect of repairs to historic

0:47:500:47:56

buildings. The regulations at the

moment mean we would have to reply

0:47:560:48:03

any reductions to all buildings

across the UK, but that is something

0:48:030:48:06

we can look at when we leave the EU.

A quarter of £1 million were given

0:48:060:48:15

to a anti-abortion group, some are

being taxed on our bodies by people

0:48:150:48:18

don't think we should have control

over them. With the set-aside funds

0:48:180:48:23

instead to tackle poverty?

We have

committed at the early opportunity

0:48:230:48:29

to zero-rate tampons. The fact we

are not doing this at the moment is

0:48:290:48:36

due to our membership of the EU. The

tax we raise, the equivalent amount

0:48:360:48:43

we are racing through taxing

tampons, we extend to women's

0:48:430:48:49

charities.

The debt household is

around £65,000. Another name for the

0:48:490:48:56

state is deferred taxation. Does the

Chancellor agree that the best way

0:48:560:49:02

to reduce this is to grow our

economy?

There are two ways to get

0:49:020:49:09

our debt falling as a percentage of

GDP, by far the easiest and most

0:49:090:49:14

agreeable for our constituents is to

grow the economy so that the two

0:49:140:49:19

nominator strings.

Together with the

Department for Work and Pensions,

0:49:190:49:28

HMRC has a late, missing and

incorrect initiative looking at the

0:49:280:49:31

problems with PAYE real-time

information, which makes an many of

0:49:310:49:38

the heiress Lucy in Universal Credit

towards. Can I ask what progress has

0:49:380:49:42

been made in quantifying those three

problems and what hopes he has for

0:49:420:49:48

improving the quality two

as he well

know, the initiative is there to

0:49:480:49:59

drive up the accuracy of real-time

information in HMIC, important to

0:49:590:50:07

ensure Universal Credit is rather

effectively. Is reversed and

0:50:070:50:14

statistics, we believe that across

those three areas, the level is

0:50:140:50:19

around 6%, and we are continuously

driving down this figure is growing

0:50:190:50:25

forwards.

The opinion free trade

Association will provide an

0:50:250:50:31

excellent framework from within

which to exercise our partnership

0:50:310:50:38

with the EU. Would this be

considered as a way forward?

We are

0:50:380:50:48

seeking a bespoke vehicle for a

special partnership, and where are

0:50:480:50:53

keen to locate any constructive

suggestions from any site of the

0:50:530:50:56

House.

The chief executive of Airbus

last night said any current Brexit

0:50:560:51:02

scenario on the table will weaken

British industry, is the Chancellor

0:51:020:51:05

listening?

We engage frequently with

industry and our number one priority

0:51:050:51:13

is to ensure we protect the UK

economy as we exit the European

0:51:130:51:16

Union. In fact, Airbus as a

manufacturer of equipment with a

0:51:160:51:28

zero tariff on it should be a

relatively minimally affected

0:51:280:51:30

company. But the company has

concerns about its ability to bring

0:51:300:51:38

EU nationals enter the UK to work.

We have assured it we will make sure

0:51:380:51:43

that those individuals can continue

to come.

The next stages of

0:51:430:51:49

negotiations with the EU are about

to have to make, what we want is a

0:51:490:51:52

good deal for business and the

service sector. With the Chancellor

0:51:520:51:57

agree that membership of Esther

gives off that opportunity for us?

0:51:570:52:08

Membership of the European economic

and, which EFTA would entail, will

0:52:080:52:12

offer on the current rules

compliance for freedoms and that

0:52:120:52:17

means free movement of people, which

the British Beagle have rejected. --

0:52:170:52:24

the British people have rejected.

With Carillion now the poster church

0:52:240:52:33

by ... -- with Carillion note the

poster child for dodgy cat as, what

0:52:330:52:44

steps will be taken...?

We have

clear rules about managing public

0:52:440:52:48

money. We are not bailing this

company out, it has gone into

0:52:480:52:53

liquidation. We are taking the

proper steps to protect public

0:52:530:52:58

services, which is the right

approach to take.

Since 2010,

0:52:580:53:05

unemployment in Cheltenham has

fallen to just over 1%. Does he

0:53:050:53:08

agree with mean that to secure jobs,

the Government is right to continue

0:53:080:53:15

backing the cyber innovation Centre

which is creating opportunities?

I

0:53:150:53:19

completely agree, and I'm shortly

due to visit that centre in

0:53:190:53:25

Cheltenham.

The east of the

Ambulance Service experience is

0:53:250:53:32

busiest ever Christmas, and it had

to rely on taxis to take patients to

0:53:320:53:38

hospitals. At least one patient died

waiting for a ambulance. How much

0:53:380:53:43

worse does it have to get before

this Government will commit funding

0:53:430:53:48

for these Ambulance Services to run

safely and efficiently?

It is

0:53:480:53:53

important to note we have 2.9

million more people visiting A&E

0:53:530:53:58

than we did in 2010. As well as

making sure we put in place what a

0:53:580:54:04

nice age and to the NHS, where

investing more money and allocated

0:54:040:54:10

much more in the budget. -- in-place

modernisation to the NHS.

What

0:54:100:54:20

discussions is the Government going

to have the HMRC and other

0:54:200:54:22

businesses to make sure these

companies are able to pay tax

0:54:220:54:28

liabilities and their employees?

HMRC already has a scheme that can

0:54:280:54:33

assist companies which are finding

cash flow difficulties in meeting

0:54:330:54:37

tax liabilities. We agreed last

night that HMRC will specifically

0:54:370:54:42

signposts by the Carillion-specific

websites that are operating at that

0:54:420:54:48

facility exists.

Greater Manchester

Police space eight years of

0:54:480:54:54

real-time Scarlets and most 2000

officers. Week after week,

0:54:540:54:59

constituents come to my surgery

distressed about anti-social

0:54:590:55:04

behaviour that the police cannot

attend to. As a former officer

0:55:040:55:09

myself, I know they do the best they

can. Would then Minister commit to

0:55:090:55:14

more funding for Greater Manchester

Police

the honourable gentleman will

0:55:140:55:19

have noticed that in the draft local

Government settlement we have been

0:55:190:55:23

giving police authorities power to

raise additional precepts to deal

0:55:230:55:27

with those issues. It is a decision

for the Greater Manchester Police.

0:55:270:55:38

The funding formula for local

Government is opaque, with the agree

0:55:380:55:41

it would be advantageous to motor a

different formula?

The Government is

0:55:410:55:49

committed to introducing a fair

funding formula. The Secretary of

0:55:490:55:55

State has committed to move forward

with that programme this year.

0:55:550:55:59

Yesterday saw the success of this

successful space industry Bill which

0:55:590:56:05

could see Prestwick become the UK's

for spaceport. But the Growth Deal

0:56:050:56:12

is ensuring the widest possible

growth from that commitment. Will

0:56:120:56:18

the Government commit to the steel?

I can assure the honourable lady I

0:56:180:56:24

meant regular discussions with the

Scottish secretary about the Growth

0:56:240:56:27

deals across Scotland. We have

committed to a number of originals

0:56:270:56:32

and are looking at further once.

One

sentence, please.

Will the Minister

0:56:320:56:41

welcomed that Manufacturing is at an

eight-year high?

Yes, Mr Speaker!

0:56:410:56:50

Many local councils are setting

their budgets now. They face a

0:56:500:56:54

funding crisis, what is Government

going to do about it?

0:56:540:57:08

Councils have to look at how

Linighan become more efficient, Alec

0:57:080:57:11

and your back offices and

technology.

Unemployment in my

0:57:110:57:17

constituency is down by over 50% of

will I honourable friend consider a

0:57:170:57:21

new round of enterprise zone bidding

opportunities to help further that

0:57:210:57:24

success story?

We will give

consideration to my honourable

0:57:240:57:29

friend's suggestion.

Can the

Chancellor clarify whether the terms

0:57:290:57:37

of the public sector PFI contract

with Carillion al for those

0:57:370:57:41

contracts to be sold on to other

companies in the event of

0:57:410:57:47

liquidation?

My understanding is

that the strictly PFI contract are

0:57:470:57:52

joint ventures and in that case, it

is most likely that the

0:57:520:57:55

joint-venture partner will take

over. There are contracts,

0:57:550:58:00

outsourcing contracts, which is here

could be sold on but since the

0:58:000:58:05

Government Department as the

contracting party will invariably

0:58:050:58:07

have a right to cancel the contract

on the insolvency of the company, in

0:58:070:58:12

practice, they will not be able to

be sold on by the official

0:58:120:58:16

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