Covid fraud and error under the previous Government’s mismanagement cost the taxpayer £10.9 billion. They played fast and loose with the public purse and left the front doors wide open to fraud. That is why I have appointed a covid corruption commissioner to carry out the independent review. This Government are doing everything to recover taxpayers’ money. We have already got back around £400 million, with more to come. That money belongs to the British people in our communities and in our NHS. We welcome the publication of the commissioner’s independent report and will respond fully in the new year.
The British people are paying the bill for criminal covid fraud. Under the Conservatives, waste and corruption exploded and taxpayers’ money was stolen. Will the Chancellor make sure that the Labour Government continue to go after those who stole from the British taxpayer and make sure that we get every penny back?
I could not agree more. The previous Government failed to protect public money, while this Government have generated around £400 million by getting money back. We all know what happened: the Tories dished out contracts to their friends and donors—money that never belonged to them. This Government will leave no stone unturned because that money belongs to taxpayers, not with cronies or crooks.
The process surrounding the Budget was utterly chaotic. We had months of damaging speculation, fuelled by briefings and leaks from the Treasury itself. They included briefings on 14 November that moved markets and gave the appearance, at least, of being deliberately inaccurate, which is why we need the Financial Conduct Authority to investigate. May I ask the Chancellor a simple question? Did she at any point authorise or allow confidential details of the Budget or the forecast to be briefed to the press—yes or no?
The Office for Budget Responsibility’s own guidance states:
“The interim rounds are transmitted to the Chancellor in confidence”.
Yet the Chancellor repeatedly stated before the Budget that the OBR had downgraded its productivity forecast. In her statement in Downing Street on 4 November, she said in relation to the OBR’s forecast that
“it is already clear that the productivity performance…is weaker than previously thought.”
Why did the Chancellor breach the confidentiality of the OBR?
In its spring statement, the OBR was clear that productivity was coming in lower than forecast, and it was clear that it was reviewing that over the summer. The numbers that the OBR has since published showed that in the final pre-measures forecast the fiscal headroom was just over £4 billion. I was clear in my speech on 4 November that I did not want to reduce the headroom; I wanted to increase it. I increased it to bring back the stability that is much needed in our economy after 14 years of Conservative government.
T5. Having worked on child poverty for over a decade, I have seen at first hand the damage to health, education prospects and life chances that poverty can cause, put at £40 billion a year by the Child Poverty Action Group. Can the Chancellor assure me that the child poverty strategy will build on the historic Budget announcement on the two-child cap, and do more to reverse the appalling rise in poverty that we saw under the Conservatives?
The child poverty strategy published last week sets out the steps that we are taking to support families now, as well as the building blocks that we are putting in place for the long term. We will lift 550,000 children out of poverty by removing the two-child limit and through other measures, including the expansion of free school meals.
Employment is up since we took office, and part of the reason for the disparity between those numbers is the fact that people who were economically inactive are now seeking work. That is exactly what we want, for people to be seeking work and to get back into work, but there are more jobs in the economy today than when we took office.
T8. As a former deputy headteacher, I and other school leaders knew of the pressures faced when having to turn libraries into classrooms due to underfunding by the Tories, which disproportionately affected children in our deprived areas. Does the Chancellor agree that her £5 million commitment for libraries and books for secondary schools is an example of how increasing opportunity for all children is good for our future economy?
My hon. Friend will know that when I was at secondary school, my school library was turned into a classroom because there were more students than there was space. We have put £10 million into primary schools to get a library in every single primary school in this Parliament, and next year, to celebrate the national year of reading, we are putting £5 million into having more books at secondary schools, and I am really proud to be doing that.
T3. Since this Government came to office, 110,000 jobs have been lost in the hospitality sector and eight pubs are closing every week, but the Chancellor has made it worse. Jonathan at The Devonport has told me that his business rates are set to treble. Does the Chancellor realise that her Budget will cost people their jobs, landlords their businesses and communities their pubs?
Let us be clear: nobody’s business rate bills are trebling. If businesses come to talk to us about increases in their rateable values because of the unwinding of the effect of the pandemic, it is important that all of us, on both sides of the House, are clear that the Government have put in support to ensure that pubs and those that have seen their values go up will not see increases next year. If the pubs rateable value is more than £100,000, they will be capped at a 30% increase. If it is less, they will be capped at 15% or £800. That is £4 billion of support that this Government are providing.
An independent and effective OBR is critical for our country, but it needs to do better. Why can the OBR not count? Why can it not forecast accurately, given that the economy grew 50% faster than it had predicted in March? Why can it not even publish the Budget document without making a dog’s breakfast of it? Is it not time for the OBR to properly price pro-growth measures and get behind our growth mindset?
I can be clear that we are committed to the OBR’s independence as a forecaster and to the core role it plays within our fiscal framework. The Chancellor has also been clear, however, that forecasts are not our destiny. We will not let Britain be held back by the failures of the previous Government. At the Budget, the OBR revised upward its growth estimate for this year, and we are determined to exceed forecasts again.
T4. Public research and development is so powerful for economic growth that US patents funded by it generate 12 times more growth than those that are not. But does the Chancellor accept the judgment of the OBR that UK public R&D will generate no additional incremental growth because we are not increasing it enough?