Tuesday Volume 693 27 April 2021 No. 207 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 27 April 2021 © Parliamentary Copyright House of Commons 2021 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 215 27 APRIL 2021 216 Alan Brown: The reality is that the powers of the House of Commons Scottish Government are not adequate to deal with the pandemic. There are too many constraints on borrowing powers for the Scottish Government; the reality is that Tuesday 27 April 2021 councils can borrow more easily under the prudential borrowing code. Does the Minister not agree that it is The House met at half-past Eleven o’clock time the Scottish Government had more flexible borrowing powers? PRAYERS Steve Barclay: The Smith commission set out the conditions, and they already give substantial borrowing [MR SPEAKER in the Chair] powers. That is why there is up to £450 million of Virtual participation in proceedings commenced (Orders, annual capital borrowing, £700 million in the Scotland 4 June and 30 December 2020). reserve and up to £600 million for resource borrowing [NB: [V] denotes a Member participating virtually.] in relation to forecast error, and of course that comes on top of the share of UK Government borrowing provided through the Barnett formula. Oral Answers to Questions Living Standards Drew Hendry (Inverness, Nairn, Badenoch and TREASURY Strathspey) (SNP): What recent assessment he has made of the effect of his policies on living standards. [914811] The Chancellor of the Exchequer was asked— John Nicolson (Ochil and South Perthshire) (SNP): Levelling-Up Fund What recent assessment he has made of the effect of his policies on living standards. [914829] Nick Smith (Blaenau Gwent) (Lab): How his Department determined the criteria for assessing bids to the levelling-up The Chancellor of the Exchequer (Rishi Sunak): The Government are committed to supporting household fund; and if he will make a statement. [914815] living standards during this difficult time for our country. The Chief Secretary to the Treasury (Steve Barclay): That is why we announced an unprecedented package The £4.8 billion levelling-up fund will invest in local of support to protect people’s jobs and incomes and to infrastructure that has a visible impact on communities help those most in need. across the United Kingdom. It has been jointly designed by the Treasury, the Ministry of Housing, Communities Drew Hendry [V]: It is approaching two years since and Local Government and the Department for Transport. this Government said that they would review the way in which dying people were treated through social security. Nick Smith: Having waited so long, I really hope that Meanwhile, Marie Curie and many other campaigners the levelling-up fund will boost infrastructure in south for change estimate that as many as 6,000 people have Wales. I have already written to the Chancellor about died while waiting for a decision on their claims. This the improvements that are needed for the Ebbw Vale to Government have repeatedly promised to end the six-month Cardiff line, to help young people especially to get to rule, which is currently forcing terminally ill people to work, so can the Minister assure me that this investment prove how long they have left to live before they can will finally be seen through? access fast-track support, so can the Chancellor confirm that this long overdue reform will be in the Queen’s Steve Barclay: I share the hon. Gentleman’s desire to Speech? boost infrastructure in south Wales, and he is quite right to focus on young people getting to work, given Rishi Sunak: It would be wrong for me to pre-empt how impacted they have been by the pandemic. He the Queen’sSpeech—I know that colleagues will understand knows that his area in particular has received additional that—but I can assure the hon. Gentleman that my funding for capacity, and this will enable it to bid for the right hon. Friend the Work and Pensions Secretary levelling-up fund to address the issues that he highlights. keeps all these matters under review, and of course we Fiscal Framework Agreement want to ensure that our welfare system is compassionate and effectively supports those who need our help. Alan Brown (Kilmarnock and Loudoun) (SNP): What recent assessment he has made of the adequacy of the John Nicolson [V]: My goodness, what a disastrous 2016 fiscal framework agreement between the Government week for the UK Government. While they have been and the Scottish Government. [914810] mired in scandal and slithering through sleaze, the SNP has committed to doubling the Scottish child payment The Chief Secretary to the Treasury (Steve Barclay): and carers allowance and to introducing a new winter The existing fiscal framework sets out the arrangements heating payment. Does the Chancellor accept that these for a review following the Scottish elections. This will are more noble social objectives than enriching well-placed allow a settlement in the light of a Parliament’s-worth cronies? of experience, which is consistent with the Smith commission’s expectations that there will be effective Rishi Sunak: What I believe to be a more noble operation of the fiscal framework and that it should not objective is to focus on the day-to-day concerns of the require frequent ongoing negotiation. Scottish people at this difficult time, which involves 217 Oral Answers 27 APRIL 2021 Oral Answers 218 making sure that the economy recovers, that the vaccines why initiatives such as the troubled families programme are rolled out and, of course, that our children receive are making an enormous difference to those families. the education they deserve. These are the issues that I Crucially, we also know that children growing up in a know the Scottish people will care most about in the workless household are five times more likely to be in coming weeks. poverty, which is why this Government are committed to helping people find work and find well-paid work. Mel Stride (Central Devon) (Con) [V]: Due to the That is something we have an excellent record of doing. increasing concentration of wealth in older generations, the value of the average inheritance received by younger Bridget Phillipson (Houghton and Sunderland South) generations is becoming significantly greater through (Lab): David Cameron said that Greensill had time. Does my right hon. Friend recognise this trend “the mandate for the UK Government”. and the fact that it means that living standards will Greensill said that it was the increasingly be determined not by skill, entrepreneurship … and hard work but by chance, which will have a detrimental “sole provider of supply chain finance” impact on social mobility? While it is absolutely right across Government and that it had a model that brings that families can pass on wealth to their loved ones, several benefits to the UK public sector. Does the does my right hon. Friend none the less recognise the Chancellor still believe that he was right to bring in strong trend here, and if so, what steps might he consider real-terms pay cuts for public sector workers, while taking to address this? allowing David Cameron and Lex Greensill to target their pay packets and giving them the run of Whitehall? Rishi Sunak: I would say two things to my right hon. Friend. First, he will know that in the Budget we Rishi Sunak: With regard to public sector pay, I do recently froze the inheritance tax thresholds for four believe it is right, at a time of extraordinary strain on years, which will provide some alleviation on the concern our public finances—when those in the private sector that he mentioned. Secondly, I believe that the best way have seen more than 1 million jobs lost, hours cut, to drive social mobility in our society is to provide wages cut and many millions furloughed, with the impact everyone with the skills and education they need to that that has on them—to take a fair and proportionate make a better life for themselves, which is what this approach to public sector pay.That is why this Government Government are committed to delivering. have said that those on the lowest pay will see a pay rise this year, as will those in the NHS. Combined with all Alison Thewliss (Glasgow Central) (SNP) [V]: The the other pay progression, this means that a majority of Tories’ two-child limit, and the rape clause, which stands people in the public sector will see their pay increase part of it, are having a devastating impact on living this year, despite the difficult circumstances. Of course, standards, with the Child Poverty Action Group and the national living wage is also being increased ahead of the Church of England estimating that 350,000 families inflation, making sure that those on the lowest incomes and 1.25 million children have been affected so far. see an uplift in their take-home pay. Scrapping the two-child limit would be the easiest and most cost-effective way of reducing child poverty in the Beer Duty UK, so will the Chancellor scrap it or will he push more families into poverty? Giles Watling (Clacton) (Con): What steps his Department is taking to differentiate the rate of beer Rishi Sunak: Since 2010, over 1 million fewer people duty for on-trade and off-trade sales. [914812] are now living in poverty, thanks to the actions of this Government and the coalition, and 300,000 fewer children The Exchequer Secretary to the Treasury are living in poverty.