This Government’s economic priority remains the protection of jobs and people’s livelihoods. It is our relentless focus. To that end, we have committed £280 billion this year.
I thank my right hon. Friend for his answer. Many businesses in Arundel and South Downs, such as hospitality, events, beauty and wedding venues, have been hit terribly hard by the pandemic. It is no exaggeration to say that the support he has offered so far has been an absolute lifeline. But as my constituents now find themselves in tier 2, with all the uncertainty and restrictions, will he continue to do what he can to protect the very enterprises this nation will need—
My hon. Friend is right to champion his local businesses, something he knows well from his own experience. I can give him that reassurance. I know it has been a very difficult time for his small and medium-sized companies. They have my assurance that I will keep working hard to support them. He knows, better than most, that they will drive our recovery.
Last week, the Chancellor said that public sector workers on less than £24,000 would be guaranteed a pay rise, but then said that they would receive a fixed increase of £250. Will he correct the record to confirm he is delivering a real-terms pay cut for many teaching assistants, prison officers and police constables?
I stand by what I said. Those earning less than £24,000 in the public sector, 2.1 million people, or 38% of all people working in the public sector, will receive a guaranteed fixed increase of at least £250.
Even if no deal is avoided, we appear to be headed for a thin-as-gruel deal with the EU. The Office for Budget Responsibility says that that would lead to a long-run loss of output of about 4%. That is on top of the slowest recovery from covid in the G7, as predicted by the OECD today. The Chancellor previously said that his Government’s deal would reduce costs for ordinary working families and promised its impact would be modelled. Will he provide that modelling, and is he confident that it will show that positive impact?
I would not want to pre-empt the outcome of the ongoing talks, which I can say are constructive and proceeding with full intensity. I am very hopeful that they can reach a positive conclusion. More broadly, regardless of the exact nature of our trading relationship with our European friends and allies, I remain very confident in the economic future of our country and the opportunities that will come our way.
Last week, my right hon. Friend announced the national infrastructure bank, which will be headquartered in the north of England, and a £4 billion infrastructure investment fund. Can he outline more of the details of those proposals and how, in particular, forthcoming projects will benefit my constituents in Southport?
I am happy to provide that information. The new national infrastructure bank will invest in projects such as transport, digital infrastructure and renewable energy through a series of loans, guarantees, equity and other hybrid products. The levelling-up fund will fund what I call the infrastructure of everyday life—projects up to £20 million that can be delivered quickly—and will make a tangible difference to our constituents and increase the pride we feel in the places we call home.
Yesterday, Scotland’s First Minister announced her intention to award a £500 thank you payment to Scottish health and social care staff in recognition of all they have done throughout the pandemic. Powers over tax allowances, exemptions and national insurance are reserved to the UK Government, so will the Chancellor do the right thing and ensure that this festive gift of good will is not clawed back by Her Majesty’s Revenue and Customs?
As the hon. Lady should know, the income tax on these payments is actually paid to Scotland, not to Westminster. The Scottish Government have the power and the funding to gross up the payment if they wish. The UK Government have provided over £8.2 billion in extra funding for the Scottish Government this year to support people, businesses and public services.
The Government’s financial support for people and businesses during the pandemic has been a lifeline, but many people have not been able to access support, such as some self-employed people, business owners, freelancers and company directors, including many in the tourism and hospitality sectors, which are so important in Cumbria and are now struggling to survive. Will the Government work to find a way to support these individuals, perhaps on a loss of income basis similar to the discretionary grants or hardship schemes that were devised for the dairy sector?
My hon. Friend is absolutely right to focus on the specific impact that he and we all, as constituency MPs, have in our constituencies. I think he knows—we have discussed this at some length—that we are always happy to look for more schemes and more suggestions, and perhaps he would like to write to me with some details of what he has in mind. He will also be aware that, as I said, I am meeting the Federation of Small Businesses, the Association of Chartered Certified Accountants and, in due course, I hope, the all-party parliamentary group to discuss these issues in more detail.
During a covid briefing last week, a Health Minister suggested that the north-east is highly unlikely to be moved from tier 3 to tier 2 this side of the new year, even if there is a review in two weeks’ time. Does the Chancellor share this message of no hope for the north- east? Will he publish his secret dashboard on the economic impact of covid, and does he agree that the Government need to be honest with the hospitality sector and go much further with support to stop more businesses going bust?
I am sure that the hon. Gentleman will listen carefully to what the Prime Minister and the Health Secretary have to say immediately after these questions, and I believe there is hope for all parts of our country as we fight against this virus. With regard to this dashboard, I would refer him to the document published, which contains a sectoral dashboard and, as I said, links to further information that people can find about the regional composition of their local economies, sectoral business resilience and employment outcomes.