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Whole Day Download the Hansard Tuesday Volume 662 2 July 2019 No. 323 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 2 July 2019 © Parliamentary Copyright House of Commons 2019 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 1039 2 JULY 2019 1040 Elizabeth Truss: I can tell the hon. Lady what would House of Commons lead to greater poverty in this country: a Government who wanted to overthrow capitalism, declare business Tuesday 2 July 2019 the enemy and ruin the private sector businesses that are employing people and giving them extra wages. The House met at half-past Eleven o’clock Kirsty Blackman (Aberdeen North) (SNP): The Chancellor has been at the forefront of arguing that PRAYERS a decade of austerity was necessary. This has led to 24% of Scottish children and 30% of English children being in poverty. If the Chancellor believes that this [MR SPEAKER in the Chair] pain was not ideological and unnecessary, will he vote against a Tory tax cuts for the rich Budget, as proposed by the Prime Minister’s most likely successor? Oral Answers to Questions Elizabeth Truss: With respect to the hon. Lady, she clearly did not hear my earlier answer, when I said that absolute poverty after housing costs is at a historic low TREASURY for children. That is true right across our country. Of course, the Scottish National party Government in Scotland could take steps to help children by improving The Chancellor of the Exchequer was asked— educational standards; that is what they should be focusing on. Poverty: Social Security Kirsty Blackman: The Minister might not want to 1. Debbie Abrahams (Oldham East and Saddleworth) tackle inequality, but the Scottish Government do. The (Lab): What discussions he has had with the Secretary polls show that a majority of Scottish people support of State for Work and Pensions on the adequacy of the tax changes that mean the Scottish Government can social security spending in tackling poverty throughout fund a £10 a week payment to families with the most the UK. [911674] vulnerable children, mitigating the ideological austerity obsession of this Conservative Government. If the right The Chief Secretary to the Treasury (Elizabeth Truss): hon. Member for Uxbridge and South Ruislip (Boris Thanks to our welfare reforms, we have been able to get Johnson) becomes Prime Minister, 53% of Scots will more people into work, we have the lowest unemployment support independence. And who can blame them, given rate since 1974 and more than 667,000 fewer children the Scottish Government’s plans to support and help are living in workless households than in 2010. young people, and this Government’s ideological austerity obsession? Debbie Abrahams: Some £30 billion of support to working-age people has been cut from the social security budget, and there is more still to come. Eight out of Elizabeth Truss: The reality is that the Scottish nine disabled people will not benefit from the measures Government are now forecast to bring in lower rates of introduced in last autumn’s Budget and over 4 million income tax than expected, because they have not followed are living in poverty. In the Chancellor’s last few weeks through on our raising of the threshold to £50,000, so in post, what will he do to right this wrong? people in Scotland on £50,000 are now paying £1,500 more tax. The fact is that raising tax reduces incentives for Elizabeth Truss: I do not agree with the hon. Lady’s people to get up the earnings ladder, reduces economic analysis. The fact is that income inequality is lower now growth and means that we do not have the opportunities than it was in 2010 and absolute poverty after housing and funding for public services. costs is at a historic low for children. Mr Chris Leslie (Nottingham East) (Change UK): As Mr Philip Hollobone (Kettering) (Con): Can the Chief my hon. Friend the Member for Wirral South (Alison Secretary confirm that the number of children living in McGovern) said, the poorest, most vulnerable people in workless households is now the lowest ever record achieved society, even those who are in work but struggling to in our country? make ends meet, will be hit particularly hard by a catastrophic no-deal Brexit. The Minister cannot get Elizabeth Truss: My hon. Friend is absolutely right. away with simply deflecting this into an attack, which I It is because of our welfare reforms and economic would share, on the economic policies of the Labour policy that more people are now in work and are party. This is the clearest, most present danger facing benefiting from our cuts to basic rate tax, giving working our country, and surely she will not happily move families £1,200 a year extra in their pay packets. towards a no-deal Brexit. Alison McGovern (Wirral South) (Lab): The Chancellor Elizabeth Truss: What the hon. Gentleman is missing has been brave recently, speaking out on how no deal is the fact that if we continue to delay Brexit, first, we will impact our economy. Poverty will only get worse if would not be delivering on what British people voted we face no deal, so will the Chief Secretary be as brave for over three years ago; and secondly, there will be as the Chancellor and tell this House the truth about continued delay in our economy—a continued lack of poverty and no deal? investment—due to a lack of certainty. 1041 Oral Answers 2 JULY 2019 Oral Answers 1042 Lyn Brown (West Ham) (Lab): Yesterday,the Chancellor Government to decide whether the circumstances make slapped down both Tory leadership candidates for making it appropriate to conduct a full three-year spending irresponsible spending promises. Has the Minister noticed, review or a single-year exercise. as we have, that not one of those promises was aimed at lifting the 4 million children out of poverty? She is 22. [911696] Gavin Newlands (Paisley and Renfrewshire responsible for the management of Government finances— North) (SNP): Mark Carney has warned that Brexit has heaven help us! What does she think this says about the already cost households up to £900, with the Fraser of Tory party and the next Prime Minister? Allander Institute suggesting that it could cost Scotland 100,000 jobs by 2030. Given that the Chancellor was a Elizabeth Truss: I am incredibly proud of our record, remainer himself, will he, as a Back Bencher—I wish as a Government, of reducing inequality.Income inequality him well in that, incidentally—vote against any deal is now lower than it was in 2010. We have also cut taxes removing us from the single market and customs union? for basic rate taxpayers by £1,200 a year and put an extra £630 into universal credit for working families. Mr Hammond: As I have consistently said in this House, I do not believe that a no-deal exit would be in Leaving the EU: Scotland the interests of this country, and I will do everything I can to ensure that we avoid it, but an exit based on a 2. Patrick Grady (Glasgow North) (SNP): What negotiated deal that allows us to continue a close trading discussions he has had with the Secretary of State for relationship with the European Union can work for Scotland on the economic effect on Scotland of the UK Britain, and that is what I will be arguing for. leaving the EU. [911675] Chris Philp (Croydon South) (Con): Is the Chancellor The Chancellor of the Exchequer (Mr Philip Hammond): aware that only 18% of Scottish exports go to the rest of I regularly discuss EU exit with the Secretary of State the European Union but 61% go to the rest of the for Scotland and other members of the Cabinet. The United Kingdom? Is not the Union that really matters Government remain committed to securing a deal that to Scotland the Union of the United Kingdom? works for the entire United Kingdom. Mr Hammond: Yes, my hon. Friend is exactly right. Patrick Grady: There might be two people competing The Scottish economy would be far more adversely to be Prime Minister, but I think there are at least five affected by a breach of trading relationships with the who think they will be the next Chancellor, so perhaps rest of the United Kingdom than it will by a breach in the right hon. Gentleman should just get to stay in post trading relationships with the European Union. and then they will all be equally disappointed. He seems to be concerned that they are somehow going to ruin his Shared Prosperity Fund deal dividend, but is not the truth that there is no real dividend from any Brexit, that the best possible deal for 3. Preet Kaur Gill (Birmingham, Edgbaston) (Lab/Co- Scotland and the rest of the UK is the one we already op): What progress the Government have made on have, which is membership, and that that is the case that establishing a shared prosperity fund. [911676] he and other sensible Government Members should have the courage to be making? 5. Catherine McKinnell (Newcastle upon Tyne North) (Lab): What progress the Government have made on Mr Hammond: I have consistently made the case and establishing a shared prosperity fund. [911678] explained to this House that there is fiscal headroom within the current fiscal rules. If we have a smooth exit The Exchequer Secretary to the Treasury (Robert from the European Union through a transition that will Jenrick): The Government will establish a UK shared remove the economic uncertainty that is hanging over prosperity fund to spread prosperity and opportunity our economy, it will then be safe to release that headroom across all four nations once we have left the European and make it available for additional public spending or, Union and the EU structural funds.
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