Steve Barclay
MP for North East Cambridgeshire · Conservative · United Kingdom
“I speak to my brief exchange earlier with the Minister. As the previous speaker, the hon. Member for Harpenden and Berkhamsted, said, the draft regulations are fairly benign and very welcome to help people who are struggling with their bills.”
“The issue is not the lack of will; the issue is the alignment between procurement, regulation and clinical leadership, particularly in the colleges, as well as the ability to scale innovation—it is not about having more ministerial pilots.”
“Just to localise it to my own constituency, the Cambridgeshire and Peterborough ICB alone paid out £14 million in redundancies last year. It merged with a number of other ICBs to form the Central East ICB, yet we know hear from the Government that it should align with metro mayors, which means going back to exactly what it was before: the…”
“My right hon. Friend is absolutely right: the Government are spending millions of pounds and there is no plan. The measure was announced without working that out, it came as a surprise to many within the system, and it has had a chilling effect on many decisions. That is not isolated.”
“I rise to speak to clause 1 on the abolition of NHS England and clause 6 on promoting innovation. What characterises the first of those is an announcement without any clear plan. That is what has driven the cost and confusion that a number of Members across the House have spoken about.”
“All this is around 18 months on from the actual announcement. The confusion seems to extend to the Government themselves, because they seem unable to answer pretty straightforward written parliamentary questions. Given the time limit, I will give just a few examples.”
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“I do not accept that. Looking at the vaccine programme that the UK has had thanks to the huge efforts of our NHS, volunteers and so many people in communities up and down the country, I would not characterise it as an abject failure. Actually, our deployment of vaccines is the envy of many countries, and it is key to the road map. For Tip Top Linen Services, and businesses across the United Kingdom, we have provided a comprehensive package of support, as I set out in a number of responses. That is key to those important businesses being able to bounce back as the road map moves to step 4.”
“First, may I join you, Madam Deputy Speaker, in offering congratulations to my right hon. Friend on her well-deserved recognition? She raises an important and legitimate point. The furlough scheme was designed to operate within the employment law framework. An employee is able to have a second job while on furlough, provided that that was allowed within the terms of their existing employment contract. I appreciate the spirit of the point she raises, and that was not the original intention when someone moved on to another job. It was part of the balance, as we have debated in this House many times, between the speed of the scheme’s deployment and how one designed its various features. What is allowed within an employment contract shapes what employees can do while on furlough.”
“Future spending commitments on net zero will be matters for the spending review, but the hon. Gentleman will know well the Prime Minister’s commitment to that agenda and the 10-point plan, as well as the leadership that the UK is providing through COP26. This issue is a key priority of the Prime Minister and the Government as a whole. There is much agreement across the House about the urgency of addressing climate change, but spending decisions on that will be for the spending review.”
“As my hon. Friend will know, Treasury Ministers and colleagues across the Government are always keen to engage with him on specific sectoral issues. The wider package of support was designed to work across sectors, and in addition to that I also mentioned specific support for the culture and sport sectors, such as the £1.57 billion announced and the further grant of £300 million. More than £11 billion of support has gone to the aviation sector. There are targeted measures of support for specific sectors, but they fit within the wider package of support such as the covid corporate financing facility, grants on research and development, and the furlough package of support.”
“The support package announced by my right hon. Friend the Chancellor was designed to anticipate any potential slippage in the covid road map. The hon. Gentleman specifically mentions VAT, which has not been raised so far. The package of support in terms of reducing VAT totals £7 billion so far, with the 5% rate being extended to 30 September. Then there is a further transitional period for six months at 12.5%. Again, the narrative that VAT reductions are coming to an end, and that that is out of step with the covid road map, is not the case: the VAT reduction has already been extended to 30 September and then there is a transitional period at the lower level of 12.5%, in anticipation of the situation we face.”
“My hon. Friend is absolutely right that businesses will continue to benefit from support. It is about getting the balance right between support for businesses and the cost to the Exchequer. There was 100% support for those businesses last year, and this year it equates to a 75% reduction in their business rates bill across the financial year.”
“We have already covered the point that furlough has been extended until the end of September. As I said in my answer only a moment ago, there are specific sectoral support packages in addition to that. At the same time, we need to get the balance right between that and the very considerable cost to the Exchequer—borrowing £200 billion last year and with significant further borrowing this year and next. We need to get the balance right between that level of borrowing and the wider package of support offered.”
“Yes, I agree with my hon. Friend. The key is that it will allow time for more second vaccinations, which is key in the step-forward decision on the road map.”
“It is slightly odd to criticise me when I am literally in the Chamber answering the hon. Lady’s question. The point is that there has been a comprehensive package of support for those on the self-employment income support scheme, which has been further extended. Many of those who were of most concern to colleagues on both sides of the House in earlier debates have come into scope of those schemes as we have gone through extensions, and I understand that my colleague the Financial Secretary has met groups to hear representations on these issues.”
“Today’s announcement clearly pertains to commercial rents. Of course, colleagues continue to listen to Members from across the House on other issues as they arise. I am very happy to have further discussions with my hon. Friend.”
“I strongly welcome my hon. Friend’s question. She is absolutely right to focus on that. That is why, at the Budget, my right hon. Friend the Chancellor announced key measures such as maintaining the level of personal tax thresholds until 2025-26 and increasing the main rate of corporation tax. It is important that we take measures to protect the public finances and get them back on to a sustainable path in the medium term. She is absolutely right to highlight that important issue.”
“Where there is a balance between protecting the unlocking of the wider UK economy versus a tougher approach at the border, the bigger prize economically is the UK’s ability to unlock our economy. As the Prime Minister set out in Prime Minister’s questions, we should not judge that with the benefit of hindsight when information on variants of concern which were not known at the time subsequently come to light, not least because of the UK’s capacity to undertake 47% of current global genome testing. Again, that is a further illustration of the UK-wide capacity that allows us to be more effective in our response.”
“Very much. I am grateful to my hon. Friend for that question, and he is absolutely right. That was exactly the Chancellor’s design for that continuity and certainty. Indeed, that particular thing was recognised and welcomed by many business leaders at the time.”
“I have set out the comprehensive package of support that applies to businesses with restart grants and so forth. Of course, I would draw the hon. Gentleman’s attention to the support through local authorities, including the discretionary grants that are available as well.”
“As my hon. Friend touched on in his question, the Government have committed to conclude the business rates review by autumn 2021. The review is considering the issues he mentions, including the fundamental changes to the administration of the business rates system and indeed the impact that has on businesses.”
“First, I am very grateful to the hon. Member for the kind invitation, and I hope one day to be able to join him in what I am sure are fantastic local businesses to which he is quite right to draw the House’s attention. The key is the support that those businesses have had so that they are able to bounce back and to be open now. On the issue of debts carried by business, part of the design of the Chancellor’s schemes such as bounce back loans has been to allow additional time for those loans to be repaid so that they do not become an undue burden on those businesses.”
“My hon. Friend is right to highlight the importance of the review of social distancing that the Government are committed to undertaking, and that will obviously shape the approach. We have said that we will have a review, and we are very committed to that. The future beyond step 4 will therefore need to be taken in the round, shaped by the data in that review.”
“The furlough is available—it extends to the end of September—but the hon. Gentleman seems to be suggesting that it is there almost indefinitely, as opposed to being an exceptional measure in response to the exceptional circumstances of the pandemic. Given the wider fiscal cost, not least the £352 billion spent to date, I do not think that that would be fiscally responsible.”
“There were 1.9%—or half a million—fewer employees in May than in February 2020, and 3.4 million people are still on furlough. It is a challenging picture, but I think that the plan for jobs is working, and the data suggests that.”
“Of course, decisions on quantitative easing are for the Bank of England, which is independent. The last time I looked, I think the initial response to the global financial crisis was approximately £75 billion, and there has been about a twelvefold increase in QE since then, so I understand my hon. Friend’s underlying point. Ultimately, what my right hon. Friend the Chancellor has been focused on is the plan for jobs and supporting the economic recovery. We can see from the output data that the economy grew by 2.3% in April, as I said earlier, and GDP data has come out of the Office for Budget Responsibility forecast. However, as my hon. Friend, who takes a deep interest in the matter, well knows, the picture remains challenging.”
“The hon. Gentleman raises a perfectly legitimate point about how acutely that sector in particular has been affected, as I think everyone in government recognises, but I do not think it fair to say that the Government have not announced any measures that reflect those challenges. Indeed, on commercial rent, he will have heard in my statement today’s specific announcement that applies to the sector. There are also other things, such as the furlough going long, the restart grant and a number of things within the comprehensive package, that are obviously of benefit to nightclubs.”
“I absolutely agree, and I think that the importance of securing private investment is a very good note on which to end. My hon. Friend will know that in May, on the consumer prices index, inflation rose to 2.1% and the Monetary Policy Committee judged: “Inflation expectations remained well anchored.” However, with debt at nearly 100% of GDP, we need to pay close attention. To finish on a more sobering note, perhaps, a sustained increase in inflation by one percentage point would increase debt interest spending by £6.9 billion in ’25-26, so my hon. Friend raises—as did the hon. Member for Leeds West (Rachel Reeves)—an important point that the House needs to keep under review.”
“There are some in this House who say that since we are already borrowing to protect jobs and businesses, what is £4 billion more? Indeed, that was the nature of the intervention from my hon. Friend the Member for Winchester (Steve Brine). Crucially, the only reason we were able to act during the pandemic in the way that we did is that we came into the crisis with strong public finances, and we believe it is our duty as the economy recovers to return to a sustainable fiscal position.”
“At our higher level of debt, the public finances are more vulnerable to changes in inflation and interest rates. Indeed, a sustained increase in inflation and interest rates of just 1% would increase debt interest level spending by over £25 billion in 2025-26. The goal of any Government should be sustainable finances, and the current level of borrowing is not sustainable. My right hon. Friend the Member for Sutton Coldfield used a number of emotive terms around the morality of the context of these changes, but leaving the next generation vulnerable to the degree of fiscal threat that would be entailed with a high debt level is not itself morally sound. At the same time, loading ourselves with more debt now might well damage our ability to spend on aid later.”
“The economy grew by 2.1% in March alone, and the Bank of England now expects the economy to return to its pre-crisis levels by the end of this year—two quarters earlier than previously expected. At the beginning of the crisis, unemployment was forecast to reach 12% or more. The latest projections show that it is due to peak at 5.5%, meaning that almost 2 million fewer people will lose their jobs than was expected last spring. As the House will note, however, much of that response has relied on borrowing. Last year saw the highest peacetime levels of borrowing on record—£300 billion of borrowing—and we are forecast to borrow £234 billion more this year and a further £109 billion the following year, so without corrective action, borrowing would continue at untenable levels, leaving underlying debt rising indefinitely.”
“Let me begin by acknowledging the words and the good intentions of my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell). He knows as well as I do that decisions such as this are not easy. In short, this is a hugely difficult economic and fiscal situation that requires difficult actions. Responding to twin health and economic emergencies, the Government have acted on a scale unmatched in recent history to protect people’s jobs and livelihoods and to support businesses and public services, paying out £352 billion in support since the start of the pandemic last year. That is equivalent to 17% of GDP and one of the largest fiscal support packages of any country in the world. Our plan is working.”
“It provides for the Secretary of State’s accountability to Parliament by way of the requirement to lay a statement before Parliament and, if relevant, makes reference to economic and fiscal circumstances, as well as circumstances outside the United Kingdom. Indeed, the Foreign Secretary has already committed to doing that, as required by the Act.”
“Indeed, this is something that the International Development (Official Development Assistance Target) Act 2015 explicitly anticipates when it refers to the effects of one or more of the following: “(a) economic circumstances and, in particular, any substantial change in gross national income; (b) fiscal circumstances and, in particular, the likely impact of meeting the target on taxation, public spending and public borrowing; (c) circumstances arising outside the United Kingdom.” In other words, the 2015 Act clearly envisages situations in which a departure from the target may be necessary.”
“The point is that we have made a number of difficult decisions, and I will come on to that, but we are also continuing to spend £10 billion in response to the commitments that we have made. I am sure that my hon. Friend, as a former Treasury Minister, is well aware of the fiscal reality we face. Strong public finances mean making difficult decisions, such as increasing corporation tax. That is one of the difficult decisions that my right hon. Friend the Chancellor has made, alongside the decision around overseas aid.”
“The provisional data shows that for the 2020 ODA figures, the 0.7% was met. The point is that the Act allows for the economic and fiscal instance that I just set out—it is in section 2. If the UK were to spend 0.7% of gross national income as ODA, it would cost the country an additional £4.3 billion this year. Given our commitment to fiscal sustainability, we could offset that either by raising taxes or by cutting public spending. [ Interruption. ] We can come on to that. To put that in context, it means a 1p increase in the basic rate of income tax or about a 1% increase in the standard rate of VAT at a time when taxes are at a historical high.”
“We do not and we will not shy away from making a determined contribution to addressing the world’s problems. But at the tail end of a huge economic emergency, we also have a responsibility to the British people. We are absolutely clear about our intention to return to 0.7% of our national income on overseas aid when the fiscal situation allows, but cannot do so yet. We will, however, keep the matter under careful and regular review. I know that Members on both sides of the House will make their cases cogently and passionately, but for now, the tough choice is the right choice.”
“We are the fifth largest contributor to the UN peacekeeping budget, the third largest bilateral humanitarian donor, the second largest member state donor to the World Health Organisation, and among the world’s largest donors to the COVAX advance market commitment—the global initiative supporting developing countries with access to vaccines. The funding we will continue to make available to countries all over the world is helping to educate young girls, boosting diversity, tackling climate change, vaccinating the needy against deadly diseases such as Ebola and malaria, and improving the nutrition of staple food crops—millions of lives improved, millions of lives saved. This is a generous and outward-looking country whose impulse has always been to help others around the world.”
“Even after the change we are debating today, we are still the third largest donor in the G7 as a percentage of gross national income, and 0.5% is considerably more than the 29 countries on the OECD’s Development Assistance Committee, which average just 0.41%. Importantly, the Foreign Office makes its aid spending choices based on maximum impact, coherence and value for money. The Integrated Review has reaffirmed our pledge to fight against global poverty and to achieve the UN sustainability development goals by 2030.”
“The fundamental point before the House is that the scale of our overseas aid remains significant. In fact, we continue to lead the world in overseas development. This year we will spend more than £10 million to improve global health, fight poverty and tackle climate change, including £400 million on girls’ education in 25 countries, and we are doubling to £11.6 billion our commitment to international climate finance for the period 2021 to 2026, with at least £3 billion for climate change solutions that will protect and restore nature and biodiversity. According to the OECD, in 2020 we were one of only two G7 countries to actually meet the 0.7% target and the only country to do so each year since 2013.”
“In the context, it is £5 billion to £6 billion. My right hon. Friend did not set out in his speech how he would address that gap. Which fiscal measures was he suggesting? Was he suggesting a specific tax, in which case I did not hear that in his remarks? Was he suggesting more borrowing, in which case one needs to look at the impact on our stock? Was he, in fact, suggesting spending? [ Interruption. ] From a sedentary position, the right hon. Member for Ashton-under-Lyne (Angela Rayner) mentions Test and Trace. Given that 80% of the Test and Trace budget relates to testing, if she is saying that she wants to get rid of PCR testing or lateral flow testing, she needs to set that out in detail. That speaks to the lack of detail provided; it is strikingly absent from the alternatives put forward.”
“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.”
“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 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.”
“Our plan for jobs will help young people find employment opportunities, including through our youth offer and the £2 billion kickstart scheme, where 180,000 kickstart vacancies have already been created.”
“I agree with my hon. Friend that young people should have access to the skills and training opportunities they need to access great jobs. That is why my right hon. Friend the Chancellor has provided £126 million for traineeships in England to enable an additional 40,000 places over the next academic year, and why he has incentivised apprenticeships, with up to £3,000 for employers who hire new apprentices of any age.”
“My hon. Friend raises an important point, and that is why, as well as the fantastic kickstart scheme, which he points out, the plan for jobs also expands existing programmes with proven employment outcomes, including traineeships, sector-based work academies and incentivised apprenticeship hiring. At the spending review, my right hon. Friend the Chancellor announced £138 million for the lifetime skills guarantee to fund free advanced technical courses for adults without A-levels or equivalent and to expand employer-led skills bootcamps.”
“I agree with my hon. Friend. The Government are committed to levelling up opportunities across the UK, including in Rother Valley. The £4.8 billion levelling-up fund will invest in infrastructure that improves everyday life across the UK, including by regenerating town centres and high streets, upgrading local transport and investing in cultural and heritage assets. I look forward to working with him for his local area.”
“Of course I would be happy to look at the report to which my hon. Friend refers. He knows that addressing future local authority resourcing is a matter for future spending reviews and the local government finance settlement. However, I would remind him that at the spending review 2020 we provided an estimated 4.6% cash increase in core spending to local authorities. That is on top of the largest real-terms increase in their core spending at the spending review 2019, and that is in addition to the about £11 billion of support that has been provided as part of the covid response.”
“People who are instructed to self-isolate by NHS Test and Trace and are on a qualifying means-tested benefit, unable to work from home and losing income as a result may be entitled to a payment of £500 from their local authority.”
“The hon. Lady is right that many people —indeed, the majority of workers—will have support from employers above statutory sick pay, but it is for the reason she outlines that my right hon. Friend the Chancellor also announced that there will be a payment of £500 for those not qualifying for the means-tested benefit, paid through the discretionary scheme that was funded at the Budget and to be administered by local authorities.”
“The hon. Lady makes a fair point, which is that there was a pressure on the scheme for local authorities. It is for exactly that reason that my right hon. Friend the Chancellor announced in the Budget that there will be an increase to £20 million per month for the discretionary scheme. He also listened to representations from the hon. Lady and others about widening the scope of eligibility under that scheme.”
“It is right that there was support in place, but it is also right that my right hon Friend the Chancellor has listened to points made by Members across the House, which is why the discretionary support has been increased and also why it has been extended to cover parents who are unable to work because they are caring for a child who is self-isolating, among a number of other factors. I think that shows once again the willingness of this Government to respond to the path of the virus and to adapt our schemes to what is needed with, in particular, the extensive support that is now being offered and has throughout the pandemic been offered to local authorities.”
“It is always difficult to comment without seeing the full facts of an individual case, and I know the hon. Lady is always an incredibly assiduous constituency Member and will ensure that the case is looked at. On the specifics, I would also point to the fact that there is a wider package of support as well. For example, in addition to the self-isolation payments, there is often eligibility for self-employed workers through the self-employment income support scheme. There is a wide range of measures, but obviously it will depend on the individual case.”
“The hon. Lady is right about the importance of test and trace; it is key to our unlocking the economy and to addressing the much more substantive costs in terms of the non-pharmaceutical interventions. As she will know as Chair of the PAC, while I as Chief Secretary and my right hon. Friend the Chancellor will always look at the cost of test and trace, the bigger prize is getting our economy opened. On the substantive point the hon. Lady raises on the self-isolation payments, again I point to the fact that at the Budget my right hon. Friend the Chancellor increased the funding for discretionary support; that sits alongside the £500 itself, and is in addition to the wider support that the majority of employers provide.”