The £4.8 billion levelling-up fund will invest in local infrastructure that has a visible impact on communities across the United Kingdom. It has been jointly designed by the Treasury, the Ministry of Housing, Communities and Local Government and the Department for Transport.
Having waited so long, I really hope that the levelling-up fund will boost infrastructure in south Wales. I have already written to the Chancellor about the improvements that are needed for the Ebbw Vale to Cardiff line, to help young people especially to get to work, so can the Minister assure me that this investment will finally be seen through?
I share the hon. Gentleman’s desire to boost infrastructure in south Wales, and he is quite right to focus on young people getting to work, given how impacted they have been by the pandemic. He knows that his area in particular has received additional funding for capacity, and this will enable it to bid for the levelling-up fund to address the issues that he highlights.
The existing fiscal framework sets out the arrangements for a review following the Scottish elections. This will allow a settlement in the light of a Parliament’s-worth of experience, which is consistent with the Smith commission’s expectations that there will be effective operation of the fiscal framework and that it should not require frequent ongoing negotiation.
The reality is that the powers of the Scottish Government are not adequate to deal with the pandemic. There are too many constraints on borrowing powers for the Scottish Government; the reality is that councils can borrow more easily under the prudential borrowing code. Does the Minister not agree that it is time the Scottish Government had more flexible borrowing powers?
The Smith commission set out the conditions, and they already give substantial borrowing powers. That is why there is up to £450 million of annual capital borrowing, £700 million in the Scotland reserve and up to £600 million for resource borrowing in relation to forecast error, and of course that comes on top of the share of UK Government borrowing provided through the Barnett formula.
The Chancellor of the Exchequer (Rishi Sunak)
ConservativeRichmond and Northallerton
The Government are committed to supporting household living standards during this difficult time for our country. That is why we announced an unprecedented package of support to protect people’s jobs and incomes and to help those most in need.
It is approaching two years since this Government said that they would review the way in which dying people were treated through social security. Meanwhile, Marie Curie and many other campaigners for change estimate that as many as 6,000 people have died while waiting for a decision on their claims. This Government have repeatedly promised to end the six-month rule, which is currently forcing terminally ill people to prove how long they have left to live before they can access fast-track support, so can the Chancellor confirm that this long overdue reform will be in the Queen’s Speech?
It would be wrong for me to pre-empt the Queen’s Speech—I know that colleagues will understand that—but I can assure the hon. Gentleman that my right hon. Friend the Work and Pensions Secretary keeps all these matters under review, and of course we want to ensure that our welfare system is compassionate and effectively supports those who need our help.
My goodness, what a disastrous week for the UK Government. While they have been mired in scandal and slithering through sleaze, the SNP has committed to doubling the Scottish child payment and carers allowance and to introducing a new winter heating payment. Does the Chancellor accept that these are more noble social objectives than enriching well-placed cronies?
What I believe to be a more noble objective is to focus on the day-to-day concerns of the Scottish people at this difficult time, which involves making sure that the economy recovers, that the vaccines are rolled out and, of course, that our children receive the education they deserve. These are the issues that I know the Scottish people will care most about in the coming weeks.
Due to the increasing concentration of wealth in older generations, the value of the average inheritance received by younger generations is becoming significantly greater through time. Does my right hon. Friend recognise this trend and the fact that it means that living standards will increasingly be determined not by skill, entrepreneurship and hard work but by chance, which will have a detrimental impact on social mobility? While it is absolutely right that families can pass on wealth to their loved ones, does my right hon. Friend none the less recognise the strong trend here, and if so, what steps might he consider taking to address this?
I would say two things to my right hon. Friend. First, he will know that in the Budget we recently froze the inheritance tax thresholds for four years, which will provide some alleviation on the concern that he mentioned. Secondly, I believe that the best way to drive social mobility in our society is to provide everyone with the skills and education they need to make a better life for themselves, which is what this Government are committed to delivering.
The Tories’ two-child limit, and the rape clause, which stands part of it, are having a devastating impact on living standards, with the Child Poverty Action Group and the Church of England estimating that 350,000 families and 1.25 million children have been affected so far. Scrapping the two-child limit would be the easiest and most cost-effective way of reducing child poverty in the UK, so will the Chancellor scrap it or will he push more families into poverty?