In common with countries around the world, the UK is experiencing global inflationary forces. We are taking action to support the country through that, with £37 billion of support targeted at the most vulnerable, but also focused on the long term in combating inflation and reducing prices through supply-side reforms, responsible fiscal policy, and a strong and forceful independent monetary policy.
Many people are grateful to the Chancellor for all the support he has given to help people with their energy bills, but many businesses are also struggling with very high energy bills. Will he consider giving further support to businesses to help them through that, preferably through cutting their taxes? It would be a tragedy if the Chancellor kept all those businesses going, at huge cost, through the pandemic, only to see them come a cropper after the pandemic because of the inflationary cost pressures caused by those lockdowns.
My hon. Friend is a champion of all the small businesses in his constituency, and rightly so. They have endured the pandemic and are bouncing back strongly on the other side, and we want to support that. On tax cuts, I hope he can reassure his small businesses that this year they are benefiting from two specific tax cuts—a cut of about £5,000 in business rates for a typical pub; and with the increase in the employment allowance, a cut of £1,000 on national insurance contributions—and we will of course support them in the years to come.
Consumer confidence is at its lowest level since records began because working people have less money to spend, but we are not all in this together. Pay for the top 1% of earners is increasing at 20 times the rate for the bottom 10%, and all the while the Prime Minister eyes up luxury tree houses instead of fixing the broken economy. Does the Chancellor realise that, to avoid a cost of living calamity, he must address the stagnant wage crisis created by Tory policies?
On wage policy, this is the Government who introduced the national living wage and, this year, increased the national living wage by about £1,000 a year. Combined with the cut to the universal credit taper rate and the increase in the national insurance threshold, that is significant support to those on the lowest earnings. It is right that we increase people’s wages, but the hon. Lady should start in her own office, where, I heard, she is perhaps not quite paying her own staff properly.
Some 4.8 million people in Britain are paid less than a real living wage. That includes cleaners, caterers and security guards employed by the Government. They work hard, they pay their taxes—in Britain, Chancellor—and they have been taken for granted for far too long. Will the Chancellor guarantee that all those who work for Government, whether directly or through a contractor, will be paid a real living wage from now on so that they can afford their bills, put food on the table and support their families?
We want everyone to be paid the national living wage. That is the law in this country. I am proud that we have increased it by £1,000 this year, which, combined with our tax cuts, is putting more money in the pockets of the lowest paid. I say again that there are lots of people being paid less than the national living wage but they should not include people in the hon. Lady’s own office.
T2. The Chancellor is familiar with the opportunities in northern Lincolnshire and the wider Humber region to advance economic growth; what plans does he have to develop the infrastructure and support local authorities to achieve that?
My hon. Friend is a fantastic champion for his region and his support for a freeport on the Humber has been noted across Government. We are of course investing in our levelling-up programme, which has a direct bearing on areas such as the Humber. Crucially, we want to advance devolution within England to allow areas such as his to reap the full rewards and take full control of this exciting opportunity.
T4. Recently, it was revealed that Her Majesty’s Revenue and Customs is failing to use the third-party data information that we get through international agreements to investigate how much tax is being evaded through offshore assets. Given that £850 billion is held offshore, with two thirds of it stashed in known tax havens, either Ministers are content for the super-rich to evade paying their fair share in the knowledge that their offshore wealth is not being systematically checked, or they will direct HMRC to use this reporting data, as is done in the US and Denmark, to uncover tax evaders. Which is it?
I am proud that HMRC is a leader in tax transparency, has a number of double tax treaties and co-operates with a large number of countries and international organisations to share tax information to ensure that people pay their fair share.
T3. The global cost of living crisis is affecting many of our constituents, so it is welcome that those on means-tested benefits—one in three households—will receive £1,200 in support from the Government this year. When will that vital support be hitting bank accounts?
My hon. Friend is right to highlight the need to target support on those who most need it. I am pleased to tell him that the payments will be made for those on means-tested benefits in July, with the second of those payments following a few months later, in the autumn, for those on tax credits, so that deduplication can be done.
T5. In his answer to my hon. Friend the Member for Glasgow Central (Alison Thewliss), the Chancellor seemed actually to be boasting that unlike the Scottish Government he is not willing to invest in tackling child poverty or in supporting carers. May I therefore suggest that instead of boasting about his poverty-inducing social insecurity system he tries looking at and replicating the Scottish child payment and the carer’s allowance supplement?
My right hon. Friend the Chancellor set out very clearly the choices the Scottish Government made at their most recent spending review, on which they can be judged. Let us be very clear: it is the Scottish Government and the Scottish Government alone who are wasting millions of pounds of this country’s and indeed their country’s citizens by pursuing a referendum. That is the last thing that Scotland or the UK needs, soaking up resources that should be spent on people who need them.
T7. The east of England is the only region in the country without a dedicated children’s hospital which is why I am delighted that the Government have committed £100 million to building Cambridge children’s hospital. It has recently got planning permission and its exciting designs were shown last week to the Duke and Duchess of Cambridge, William and Kate. Will my right hon. Friend the Chancellor or the Chief Secretary to the Treasury commit to working with me to make sure the hospital is built on schedule?
This Government are determined to deliver for the people of Cambridgeshire. My colleagues at the Department of Health and Social Care will have heard my hon. Friend’s comments about the importance of this facility, and that is why we are investing £4.2 billion in new hospitals over the course of this Parliament.