Topical Questions

T1. If he will make a statement on his departmental responsibilities.

I have three clear priorities as Chancellor: to ensure a strong economy, to get Brexit done and to deliver on the British people’s priorities. That is why I am pleased to confirm that this Government will bring an end to low pay. We are setting two new targets for the national living wage over the next five years: raising it to two thirds of median earnings and extending it to workers aged 21 and above. That will give 4 million workers an average pay rise of £4,000. I will set out further details in the next Budget. This Government are proving again that they are on the side of working people. Thanks to the hard work of the British people, we are moving from a decade of recovery to a decade of renewal.

When the Chancellor was Home Secretary, he told me and other More United MPs that officials were looking into the potential economic benefits of lifting the ban on asylum seekers working, which the Lift the Ban coalition says would bring £42 million into the economy. Now that he is Chancellor of the Exchequer, will he lift that ban in order to allow asylum seekers such as those in my constituency to contribute to the economy and to have the dignity that they deserve?

The hon. Lady makes an important point, and I am glad that she has brought my attention to it again. As Chancellor, I want to ensure that across Government every Department is doing its bit for the economy. Some of the people she is talking about will be vulnerable people and the current rules are worth looking at again. It is something that the Home Office is taking very seriously.

T5. As my right hon. Friend knows, those affected by the devastating loan charge have welcomed the independent review, but feel that it would be better conducted by a tax judge. Does the Minister agree? Does he also agree that a suitable outcome of the review would be to apply the loan charge only from when it was introduced, in 2016, not retrospectively?

I thank my hon. Friend for that question. I have addressed the substance of it, but let me make a point about Sir Amyas Morse. I think that Sir Amyas is a superb choice. As my hon. Friend may be aware, in a debate in the House of Commons on 6 March 2019, the Chamber united across the parties in praise of Sir Amyas. The Chair of the Public Accounts Committee, the hon. Member for Hackney South and Shoreditch (Meg Hillier), called him

“a fearless advocate for what is good in the public sector and for challenging Governments of whatever party”.

The Liberal Democrat spokesman, the hon. Member for Oxford West and Abingdon (Layla Moran), said that he was not only “unfailingly courteous”, but had

“an intelligence of steel. He has a knack for calling out obfuscation, fudge and imprecision”,

and

“a reputation for being completely fair.”—[Official Report, 6 March 2019; Vol. 655, c. 1004-05.]

He is a very good choice to lead this review.

Will the Chancellor give the House a quick fact-check of his speech yesterday? The Conservatives have cut funding for buses by £640 million a year. Yesterday, he announced nothing new; he simply reannounced £220 million from the spending review. His Government have cut £900 million a year from annual youth services budgets. Yesterday, he offered £500 million, possibly as a one-off. The National Infrastructure Commission says that we need £33 billion to roll out full-fibre broadband. Yesterday, he offered £5 billion. All of those promises will count for nothing if there is a no-deal Brexit. Has he not just followed the Cummings code: grab a headline, possibly wrap it around a bus and ignore the truth? But there is one figure that I would like to ask him about: 120,000. What significance does the figure 120,000 have for him?

The right hon. Gentleman knows that the last time his party was in office, we had the biggest budget deficit in our peacetime history and the biggest banking collapse this country has ever seen, and our country was virtually bankrupt. Now our economy is strong, with the lowest unemployment rate in 45 years, and it is because the economy is strong that yesterday I could make the announcement of investments in buses, roads, youth facilities and full fibre. If he wants to see that kind of investment continue at the next general election, he should vote Conservative.

I did not ask about the Chancellor’s record at Deutsche Bank; I never asked about the products he was selling that brought about the financial crash.

Let me tell the Chancellor what the figure 120,000 means. It is the number of deaths linked by the British Medical Journal to the Conservatives’ cuts since they came to power in 2010. No amount of spin will wash away the memory of nine years of this scale of human suffering. He claimed yesterday:

“We believe in a society where everyone knows that if they work hard, and play by the rules then they will have every opportunity to succeed.”

But isn’t it true that the Conservatives have broken the link between people working and being able to lift themselves out of poverty, when 70% of our children living in poverty are in households where someone is at work? And isn’t it the case that, despite the Chancellor’s pathetic attempt yesterday at playing catch-up to Labour party policy, under the Tories’ plans no one will reach the Tories’ target minimum wage until five years from now? And isn’t it the truth that, with this Chancellor and Prime Minister in charge, the Conservatives will always be the party of tax avoiders, bankers and the super-rich?

Let me tell the right hon. Gentleman a fact: the Labour party no longer represents working people and it is no longer the party of working people. That stopped a long, long time ago. He should reflect on his own policies of renationalisation; mass confiscation of private property, including the shares and homes of individual investors; protectionism; and state control. He calls business the real enemy, but the fact is that the Labour party is no longer fit to govern. It would wreck the economy and it would be hard-working people who would pay the price.

I have had heartbreaking meetings with constituents from Hastings regarding the loan charge, where I have heard tragic and sad stories about the destruction of families and their finances. Although I of course welcome the review that is to take place, may I urge the Chancellor to reconsider the position of not suspending the loan charge during the review period?

I do not know whether my right hon. Friend caught the discussion we had about this matter earlier, but the purpose of the review is to establish whether the Government are pursuing the right policy. It makes no sense at all to change the policy until we have heard from the review. I absolutely sympathise with the concerns that have been felt across the House, and both the Government and HMRC itself have taken steps to try to mitigate them.

T2. The former coalfields of England, Scotland and Wales have a combined population of 5.7 million. If they were treated as a single distinct region, that would be the poorest region in the United Kingdom. By any measure or definition, the coalfield communities are left-behind areas, so what fiscal policy steps is the Chancellor taking to address the specific structural and economic weaknesses of former coalfield areas such as mine in going forward with the shared prosperity fund?

I share the hon. Gentleman’s desire to ensure that all parts of our great country are benefiting from our strong economy. We have seen a jobs boom since 2010, after the deepest recession in our peacetime history under the previous Labour Government. Of the 3.7 million jobs that have been created, 65% are outside London and the south-east, which will be benefiting his communities and so many more.

One of the ingredients of economic growth—we have talked about boosting small businesses—is improving the productivity within the economy. What are the ministerial team doing to boost productivity?

I thank my hon. Friend for his question; he was obviously responsible for this when he was Exchequer Secretary. Last week I met Charlie Mayfield for a very good discussion about the Be the Business fund that the Government have set up to support business-led movement to improve small business productivity. This includes running pilots in Cornwall to support the hospitality sector and in the north-west to support family businesses. There are other schemes, such as Made Smarter, which is a good pilot, in addition to a £31 million package announced at conference 2018 to improve SME management through peer-to-peer networks.

T3. The Cogent Power steel plant in my constituency is threatened with closure by Tata Steel but is the only plant in the UK that, with investment, could be capable of supplying electrical steels for the UK electric vehicle industry. If this Government are serious about building this new industry in the UK, will Ministers work with the Department for Business, Energy and Industrial Strategy to ensure that the plant has a future?

I will make certain that the Business Secretary is aware of the hon. Lady’s concerns. The Treasury obviously takes an interest in this issue but she will know that the Department for Business is taking the lead on it. Obviously, and rightly, she is concerned about jobs in her constituency. She would welcome the fact, I hope, that because of the policies of this Government more generally since 2010, we have seen in her constituency a 50% fall in the headline unemployment rate.