Tag: Speeches

Anne-Marie Trevelyan – 2022 Statement on Canadian Trade Policy

The statement made by Anne-Marie Trevelyan, the Secretary of State for International Trade, in the House of Commons on 24 March 2022.

Today, the Department for International Trade is publishing a comprehensive set of documents setting out the UK’s strategic approach to an enhanced free trade agreement (FTA) between the UK and Canada. In line with our commitments to scrutiny and transparency, these documents have been published and placed in the Libraries of both Houses.

As a recently independent trading nation, the UK is now able to champion its own trade policy by securing agreements with new international partners, as well as by upgrading the terms of our existing continuity agreements to better suit the needs of UK businesses and the economy. We signed the UK-Canada trade continuity agreement (UK-CAN TCA) on 9 December 2020, which committed both parties to enter negotiations on a bespoke trade agreement by 1 April 2022. As such, negotiations will be launched today, 24 March 2022, with negotiations due to begin shortly afterwards. The negotiation objectives published today were informed by our call for input, which requested views from consumers, businesses, and other interested stakeholders on priorities for upgrading our agreement with Canada.

Canada is an important trading partner with a well-developed economy. Despite the slowdown to global trade in 2020 due to the coronavirus pandemic, goods exports to Canada still increased by £478 million and Canada remained one of our top 20 trading partners (ranked 16th), with total trade in goods and services worth £19.2 billion.

UK exports enjoy an estimated £58 million less in duties under the UK-CAN TCA, relative to trading without one. An upgraded agreement can provide the opportunity to support further trade liberalisation and benefit businesses, including the 10,300 small and medium-sized enterprises (SMEs) already exporting to Canada.

Enhancing the terms of our agreement with a historically connected partner like Canada can provide opportunities for businesses across the entire UK, support the UK’s transition to net zero and strengthen our vision for global Britain. We share a Head of State and work together across a range of bilateral and international initiatives including as members of the Five Eyes, G7, G20, NATO, and as signatories of the Paris climate agreement. These new negotiations are just another way in which our important partnership is delivering against all the priorities as set out in the UK’s integrated review. Further, these negotiations provide a valuable opportunity to pursue high ambition in areas of mutual interest including, championing, and supporting women’s economic empowerment through trade, updating our digital trade package, promoting innovation, and supporting our role as a global leader in climate action.

A bespoke trade agreement with Canada will also complement the UK’s accession to the comprehensive and progressive agreement for trans-Pacific partnership (CPTPP), of which Canada is an influential member.

The Government are determined that any agreement must work for consumers, producers, investors, and businesses alike. We further remain committed to upholding our high environmental, labour, public health, food safety and animal welfare standards, alongside protecting the national health service (NHS).

HM Government are committed to transparency obligations, and we will continue to update and engage with key stakeholders as well as Parliament and the devolved Administrations throughout our negotiations with Canada.

March 26, 2022
Will Quince – 2022 Statement on Support for Children With No Resource to Public Funds

The statement made by Will Quince, the Parliamentary Under-Secretary of State for Education, in the House of Commons on 24 March 2022.

Today I am providing an update following a programme of work undertaken by my officials to consider access to free school meals and the early education entitlement for two-year-olds for children from families with no recourse to public funds.

As Members may be aware, some families with an irregular immigration status have a no recourse to public funds—NRPF—condition as designated by the Home Office. This condition restricts these families from drawing on welfare support and other passported Government support and previously this has meant that their children, regardless of their own immigration status, have been unable to access educational entitlements such as free school meals and the early education entitlement for disadvantaged two-year-olds. All children are entitled to access a school place and maintained schools and academies have a duty to provide free school meals to pupils of all ages that meet the eligibility criteria. These healthy, nutritious meals ensure that children up and down the country are well-nourished, develop healthy eating habits, and can concentrate, learn and achieve in the classroom.

Free school meals

In 2020, we temporarily extended free school meal eligibility to include some children of groups who have NRPF. I am pleased to confirm that, following a cross-Government review, we will permanently extend eligibility for free school meals to children from all families with NRPF, subject to the income thresholds as follows:

£22,700 per annum for families outside London with one child.

£31,200 per annum for families within London with one child.

£26,300 per annum for families outside London with two or more children.

£34,800 per annum for families within London with two or more children.

These thresholds were developed to create comparative thresholds with broad equivalence with families with recourse to public funds, and who qualify for free school meals due to being in receipt of welfare benefits.

In addition to the income thresholds outlined, we are incorporating a capital savings threshold of £16,000. This is the same maximum capital threshold for access to universal credit and therefore achieves parity with families with recourse to public funds.

This permanent extension will begin from the start of the summer term, 19 April 2022. Newly eligible free school meal pupils will be recorded in exactly the same way as other free school meal pupils. We will shortly publish guidance advising schools how to check and validate eligibility for NRPF families.

All children in receipt of free school meals will attract pupil premium funding for their school and—dependent on meeting other criteria—will also be able to receive free home-to-school transport. The department will provide funding to meet the additional costs incurred through the established processes.

Two-year-old entitlement

The early years are crucial for children’s development and for establishing the foundations for future success.

Since September 2020, some NRPF households have been able to access the two-year-old early education entitlement. However, my department is going to consult as soon as possible on whether there are any additional groups of children from NRPF families who should be eligible for the two-year-old entitlement that we have not already identified.

These changes will help to ensure that every child gets the best possible start and receives the right support, in the right place, at the right time.

March 26, 2022
Nigel Huddleston – 2022 Statement on Incorrect Information Provided by Government

The statement made by Nigel Huddleston, the Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport, in the House of Commons on 24 March 2022.

I am repeating the following written ministerial statement made today in the other place by my noble Friend, the Minister for Arts, Lord Parkinson of Whitley Bay:

On 9 June 2020, the then Minister for Digital and Culture, Dame Caroline Dinenage MP, answered a parliamentary question from Anneliese Dodds MP (53581) on the tax treatment of emergency grants provided to freelancers by Arts Council England at the beginning of the pandemic, April 2020.

The question was answered, in consultation with the Arts Council, on the basis of information believed to be true at the time. It stated that:

“The Arts Council always recommends that grant recipients refer to HMRC and/or an independent advisor for advice that takes full account of their personal circumstances for tax. In general, as per the agreement reached between the Inland Revenue and the Arts Council of Great Britain in 1978, which we understand still applies, it is the Arts Council’s understanding that:

Grants awarded to support people to take time out to develop and explore their artistic and cultural practice—such as those grants recently made under the Arts Council’s emergency response fund for Individuals—should not be treated as taxable income.

Grants awarded to support the delivery of a specific project or projects would be treated as taxable income.”

Arts Council England was subsequently informed by HMRC that it considered the payments made from the emergency response fund would fall into the taxable category. This was on the basis that—similar to other covid relief grants—they were made to support businesses and jobs, replacing lost revenue of the claimants. This means that, where the claimant is self-employed, the receipts should be included in the computation of their trading profits.

Given the complexity of the tax treatment of grants, and the importance of this issue to recipients, Arts Council England and DCMS queried this decision with HMRC officials. Ultimately, however, HMRC were of the view that these grants needed to be treated consistently with other support funds.

There was a regrettable delay between this decision being finalised and recipients being informed of the tax treatment by the Arts Council. In addition, incorrect information was given from HMRC channels which relied on the statement made in the original answer to the parliamentary question, compounding the confusion.

I therefore asked DCMS and HMRC officials to agree that individuals would not be penalised where they had unknowingly submitted incorrect information and that they would be given the opportunity to correct their tax returns.

Arts Council England wrote on 19 January to all those in receipt of payments from its emergency response fund to advise them of HMRC’s position.

7,484 grants were awarded under Arts Council England’s “Emergency Response Fund for Individuals” programme, totalling £17.1 million, meaning an average grant of c. £2,285.

Recipients were therefore advised, ahead of the submission deadline, that:

they would not be charged a penalty if they filed their self-assessment return up to a month after the deadline;

if they needed to correct their tax return, HMRC would not charge any penalties for errors related to the grant payment in the original return; and that

if recipients did not correct their tax return—for instance, because they remain unaware that they have made an error—and HMRC subsequently discovers the error, HMRC would not charge a penalty if the error is a result of relying on incorrect official information.

This was an unfortunate error on the part of a number of Government and non-governmental bodies. I am very sorry for it. I trust the actions taken by my officials and agreed with HMRC have ensured that no individual is unfairly penalised as a result of this error.

March 26, 2022
Greg Hands – 2022 Statement on Bulb Energy

The statement made by Greg Hands, the Minister for Energy, Clean Growth and Climate Change, in the House of Commons on 24 March 2022.

Today I will lay before Parliament a departmental minute describing a contingent liability arising from the issuance of a letter of credit for the energy administrators acting in the special administration regime for Bulb Energy Limited (‘Bulb’).

It is normal practice when a Government Department proposes to undertake a contingent liability of £300,000 and above, for which there is no specific statutory authority, for the Department concerned to present Parliament with a minute giving particulars of the liability created and explaining the circumstances.

I regret that, due to negotiations with the counterparty having only just concluded, I have not been able to follow the usual notification timelines to allow consideration of these issues in advance of issuing the letter of credit.

Bulb entered the energy supply company special administration regime on 24 November 2021. Energy administrators were appointed by court to achieve the statutory objective of continuing energy supplies at the lowest reasonable practicable cost until such time as it becomes unnecessary for the special administration to remain in force for that purpose.

My Department has agreed to provide a facility to the energy administrators, with a letter of credit issued, with my approval, to guarantee such contract, code, licence, or other document obligations of the company consistent with the special administration’s statutory objective. I will update the House if any letters of credit are drawn against.

The legal basis for a letter of credit is section 165 of the Energy Act 2004, as applied and modified by section 96 of the Energy Act 2011.

HM Treasury has approved the arrangements in principle.

March 26, 2022
Brandon Lewis – 2022 Statement on Northern Ireland Terrorism Threat Level

The statement made by Brandon Lewis, the Secretary of State for Northern Ireland, in the House of Commons on 22 March 2022.

MI5 has lowered the Northern Ireland-related terrorism threat level in Northern Ireland from “SEVERE” to “SUBSTANTIAL”.

The decision to change the threat level is taken by MI5, independently of Ministers.

This is a systematic, comprehensive and rigorous process, based on the very latest intelligence and analysis of factors which drive the threat.

The fact that the threat level is being lowered from where it has been since September 2010 is a testament to the Government’s ongoing commitment to protecting the peace process and tackling Northern Ireland-related terrorism, as well as the tremendous efforts of the Police Service of Northern Ireland and MI5 for their hard-won gains over the past decade that have helped to make Northern Ireland a safer place to live and work.

Despite the change in the threat level, terrorism remains one of the most direct and immediate risks to our national security and to communities in Northern Ireland. There remains a small group of people determined to destabilise the political settlement in Northern Ireland through acts of terrorism.

“SUBSTANTIAL” means that a terrorist attack is likely and might well occur without further warning.

As ever, the public should remain vigilant and report any concerns they may have to the police.

The Government, police and intelligence agencies will continue to work tirelessly to address the threat posed by terrorism in all its forms. The threat level will be kept under constant review.

March 23, 2022
Kemi Badenoch – 2022 Statement on Sandwell Metropolitan Borough Council

The statement made by Kemi Badenoch, the Minister for Levelling Up Communities, in the House of Commons on 22 March 2022.

On 18 January 2022,1 announced to the House that the Secretary of State was minded to intervene at Sandwell Metropolitan Borough Council (“the authority”) and to appoint Commissioners to take over functions associated with the governance and scrutiny of strategic decision making, and of those relating to the appointment and dismissal of statutory officers.

At the same time, I sought views on how best to improve political stability in the authority’s leadership and to move towards a four-yearly election cycle.

These proposals followed the publication of a “Value for Money Governance” review by the authority’s external auditor, Grant Thornton, issued to the authority on 3 December 2021. The review makes 45 wide-ranging recommendations, three of which are statutory recommendations, and in my view provides considerable evidence that the authority has failed to comply with its best value duty over a number of years. This is a requirement set out in the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, with regard to a combination of economy, efficiency and effectiveness.

The Governance review paints a deeply troubling picture of mismanagement and of ineffective scrutiny and accountability arrangements at the authority. While the review recognises the recent progress made under the Interim Chief Executive, Kim Bromley-Derry CBE DL, it also notes how, historically, senior officers and members have been unable to make the changes required to move away from the past.

While the Secretary of State is encouraged by the “green shoots” of progress described in the report, his view is that the risk of progress stalling or slowing is significant. He believes the proposed intervention is necessary and expedient to secure compliance with the best value duty.

As part of my announcement in January, I invited the authority to make representations about my proposals to formally intervene on or before 11 February 2022.

Representations were received from 15 parties: the authority, its Conservative Councillor Group, an independent Councillor, three MPs, eight residents and one residents’ group. With one exception, all the representations supported the intervention and the proposal to appoint Commissioners.

The authority welcomed the support of the Department with its improvement, and stated that it looked forward to working with Commissioners and developing a clear improvement plan. In relation to elections, the authority confirmed that it is in the process of developing an action plan which includes consultation and engagement activity.

The Conservative Group and the independent Councillor pledged to work with the Commissioners. Residents were universally supportive of the intervention and keen to see real improvement in the authority’s services.

While two MPs supported intervention, one was opposed, citing the need for the progress made by the Council’s new senior leaders not to be undermined by Commissioners.

Best value intervention in Sandwell Metropolitan Borough Council

Following consideration of these representations, the Secretary of State has decided to proceed with the proposals announced on 18 January.

Appointing Commissioners for Sandwell Metropolitan Borough Council the Secretary of State has decided to appoint two Commissioners with a proven record of leadership, transformation and strong governance, and the specific expertise that will be relevant to their functions.

The Governance review recognises that it is the interim Chief Executive Officer, Kim Bromley-Derry CBE DL, that has been driving change within the authority since his arrival in August 2021. It is for this reason that the Secretary of State has decided to appoint Mr Bromley-Derry as Managing Director Commissioner, a role which will enable him to continue the work that he has already begun, and to provide the authority with the consistent leadership capacity that it needs to continue its recovery. I would also like to thank Mr Bromley-Derry’s employers, McLaren Construction Group, for enabling his appointment.

Kim Bromley Derry CBE DL (Managing Director Commissioner)—Kim has more than 35 years of public sector experience, including eight years as Chief Executive of the London Borough of Newham. He was also Director of Children’s Services at both the London Borough of Newham and South Tyneside Council and a Children’s Services Director at Leicester City Council. Kim was appointed Interim Chief Executive of Sandwell Council in August 2021 after being temporarily released from his role as Group Director for strategic partnerships at McLaren Construction Group. Kim has also been President of the Association of Directors of Children’s Services and chaired the Government’s Libraries Taskforce.

Jim Taylor (Assistant Commissioner)—Jim served for six years as Chief Executive of Salford City Council prior to his retirement in 2021. He also fulfilled the role of Interim Chief Executive of Trafford Borough Council simultaneously from July 2018 to February 2019. Prior to this Jim was the Chief Executive of Rochdale Council having also served as Director for Children’s Services at Tameside MBC. In June 2021 Jim was appointed by the Secretary of State to undertake an external assurance review of governance at Slough Borough Council.

The Commissioners have been appointed for two years from 22 March 2022 to 22 March 2024, or such earlier or later time as we determine. We are clear that the directions should operate for as long, and only as long, and only in the form, as necessary.

The Commissioners will be asked to provide their first report within the next three months. Further reports will be provided every six months, or as agreed with the Commissioners.

I want to be clear that most decisions will continue to be made by the authority; the intention being that Commissioners will only use their powers as a last resort if they are dissatisfied with the authority’s improvement processes.

Commissioners will work collaboratively with Emma Taylor, Chief Executive of Sandwell Children’s Trust and Mark Gurrey, the Department for Education’s children’s services adviser and Chair of the Council’s improvement board for children’ services. This will ensure that the improvements overseen to date through the Department for Education’s statutory intervention continue to be made.

I would also like to thank the LGA for the continued support it has provided to the authority, most recently through a Corporate Peer Challenge.

As with other interventions led by my Department, the authority will be directed to meet the costs of the Commissioners. The fees paid to individuals are published in appointment letters which are available separately on www.gov.uk. I am assured this provides value for money given the expertise that is being brought, and the scale of the challenge in councils requiring statutory intervention.

Conclusion

The Government will continue to work closely with the political, business, and cultural leadership of Sandwell, and is committed to making sure the residents of Sandwell have what they need from their local council, including confidence in its governance and service delivery.

I have published the directions and explanatory memorandum associated with this announcement at https://www.gov.uk/government/collections/proposed-intervention-at-sandwell-metropolitan-borough-council.

March 23, 2022
James Cartlidge – 2022 Statement on Personal Injury Reforms

The statement made by James Cartlidge, the Parliamentary Under-Secretary of State for Justice, in the House of Commons on 22 March 2022.

My hon. Friend the Parliamentary Under-Secretary of State for Justice (Lord Wolfson of Tredegar) has made the following statement:

I announce today the publication of Part 2 of the Government’s response to the ‘Reforming the soft tissue injury (‘whiplash’) claims process’ consultation paper on www.gov.uk.

In November 2016, the Government published a consultation that set out proposed measures to tackle the number and cost of road traffic accident related personal injury claims. This consultation covered both legislative proposals for tackling the number and cost of whiplash claims, and a ‘Call for Evidence’ on several related issues.

The Government response was split into two parts, with Part 1 covering the primary and secondary legislative measures which made up the Whiplash Reform Programme, and Part 2 covering the ‘Call for Evidence’. Part 1 of the response was published in February 2017, but a decision was taken to defer work on Part 2 to enable focus on developing and implementing the significant whiplash reform measures.

Now that the whiplash reforms have been successfully implemented, it is appropriate to revisit the issue of publishing the deferred Part 2 Government response. The newly published response includes a summary of stakeholder views and specific analysis of the responses received on issues relating to credit hire, rehabilitation, early notification of claims, recovery of disbursements, Insurance Fraud Taskforce actions, and consideration of a Barème scheme. It also details the next steps to be taken in relation to these topics.

In considering the responses received, we have acknowledged that these were views provided in 2016, and that in some areas, developments in the sector have altered the position considered in the ‘Call for Evidence’. We will continue to monitor several of the areas identified and remain open to working with specific stakeholder groups to develop and implement industry-led solutions to issues in areas such as rehabilitation and credit hire.

The consultation response paper can be found here:

https://www.gov.uk/government/consultations/reforming-the-soft-tissue-injury-whiplash-claims-process.

March 23, 2022
Paul Scully – 2022 Statement on Postmasters Compensation

The statement made by Paul Scully, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 22 March 2022.

As the House is aware, the Post Office Horizon scandal, which began over 20 years ago, has had a devastating impact on the lives of many postmasters. The High Court Group Litigation Order (GLO) case against the Post Office brought by 555 postmasters exposed the Horizon IT scandal which had seen many postmasters forced to “repay” to Post Office sums which they had never received. Many were dismissed, prosecuted and even imprisoned.

The Government have long considered unfair the unequal treatment received by members of the GLO and their non-GLO peers. I am therefore pleased to announce that the Chancellor will make additional funding available to give those in the GLO group compensation similar to that which is available to their non-GLO peers.

Because they had signed a “full and final” settlement of their court case in 2019, postmasters in the group were ineligible to apply to the Historical Shortfall Scheme (HSS) which their legal action had established. So despite winning the case, the group was left worse off than the other affected postmasters for whom they had blazed the trail. Each postmaster in the group received an average of around £20,000.

To enable the GLO Group to undertake litigation against Post Office they secured funding from litigation funders Therium. Following extensive work to ensure the full compensation went to the postmasters, I am pleased that Therium have agreed to waive their rights to any claim on this compensation.

I plan to return to the House in due course to announce our next steps.

March 23, 2022
Rachel Reeves – 2022 Response to the Spring Statement

The speech made by Rachel Reeves, the Shadow Chancellor of the Exchequer, in the House of Commons on 23 March 2022.

Thank you, Mr Speaker. Today was the day that the Chancellor could have put a windfall tax on oil and gas producers to provide real help for families, but he did not. Today was the day he could have set out a proper plan to support businesses and create good jobs, but he did not. Today was the day that he could properly have scrapped his national insurance hike, but he did not. Labour said it was the wrong tax at the wrong time, and the wrong choice; and today the Chancellor has finally admitted that he got that one wrong. Inflation is at its highest level for 30 years, and rising. Energy prices are at record highs, and people are worried sick. For all his words, it is clear that the Chancellor does not understand the scale of the challenge. He talks about providing security for working families, but his choices are making the cost of living crisis worse, not better.

The situation following Putin’s criminal assault on Ukraine remains gravely serious. Just one month after the invasion, so much has changed, and there will be repercussions for years to come. The Chancellor has today failed to explain why he chose to sign off on a reduction in our country’s armed forces last October. Will he confirm whether the Government’s target Army size is still being reduced by 10,000 troops? I say this to the Chancellor: Labour will support whatever is needed on defence and security, in order to keep our country safe.

The tremors following Putin’s aggression will impact Britain, including economically, but the cost of living crisis predates Putin’s attack on Ukraine. In October, inflation was already forecast to be double the Bank of England’s target, yet the Prime Minister said that fears of inflation were unfounded. Today we learn that inflation has reached 6.2%, and it is expected to go higher in the coming months. People are rightly looking to their Government to help them weather this storm. Labour will support sensible measures to ease the pressure, but what the Chancellor has announced today says everything we need to know about his priorities.

The cost of living crisis is hitting people particularly hard because incomes have been squeezed during the past 12 years of Conservative Governments. Ordinary families, disabled people, and pensioners are facing difficult choices. Mums are skipping meals so that their children do not. Families are struggling to buy new school shoes and uniforms for their children. Older people are hesitating to put the heating on, because they are worried about the cost.

At the weekend, the Chancellor was asked about fuel poverty, and he did not even know the numbers. That is shameful, because when Martin Lewis predicts that 10 million people could be pushed into fuel poverty, the Chancellor should sit up and listen. We know that pensions and social security will not keep up with inflation, and pensioners and those on social security will be getting a real-terms cut to their income. What analysis has the Chancellor done on the impact of benefits being uprated by less than inflation? How many more children and pensioners will drift into poverty because of the choices of this Government?

Who does the Chancellor’s prioritise?

He continues to defend the record profits of the oil and gas producers who themselves admit that they now have “more money than they know what to do with.”

BP describes this crisis as a ‘cash machine’ for them, but it is British people who are paying out.

And it is deeply regrettable that the SNP have joined the Tories in wanting to shield oil and gas producers from Labour’s progressive measures.

When I set out Labour’s plans for a windfall tax in January, we estimated that it would have raised £1.2 billion.

Now, because of the continued rise in global oil and gas prices, it would today raise over £3 billion.

That’s money that could be used to help families, pensioners and businesses.

With a cut to VAT – a real Brexit dividend that would help working families and pensioners across our country.

And a targeted Warm Homes Discount that would see families and pensioners on the lowest and modest incomes being supported by £600.

Today the Chancellor comes along after 12 years of failure on energy efficiency and announces a VAT cut on building materials.

This is wholly inadequate.

A proper energy efficiency scheme like the one we have set out could cut bills by £400 to people from next year.

And the silence from the Chancellor on our energy intensive manufacturing industries is appalling.

At this time of national crisis, people and businesses need a government that is on their side.

Now the Chancellor spoke of difficult choices. And I agree – there are always choices to be made.

Like who to tax and who to shield.

Despite the Chancellor’s reluctant measures, the facts are that he is taking money out of people’s purses and wallets with an increase in national insurance contributions.

The changes he is making today, begs the question why did he embark on these changes in the first place?

Despite the warnings from the Labour Party and many, many others.

Now it’s one thing for the Prime Minister and Chancellor to disagree with each other, but the centre piece of the statement that the Chancellor has delivered today is based on a disagreement with himself.

And for all his tax rising on the millions in the middle, where is the increased tax contribution from the very wealthiest in society?

A landlord with a large number of properties won’t be paying a penny more in taxes.

But their tenants will.

Someone with significant income from buying and selling stocks and shares won’t be paying any more in tax.

But those people powering our economy will.

The Chancellor has made the wrong choices.

Now, the Chancellor says he can’t help everyone. And that’s absolutely true.

But who has the Chancellor been helping out?

Those who have been swindling the taxpayer.

The Chancellor left open the vaults for widespread waste, crony contracts and a frenzy of fraud.

It was, as his former Tory Treasury minister put it: “happy days if you are a crook”.

7 billion items of PPE not usable and now being burnt. Taxpayers’ money literally going up in smoke.

£3.5 billion worth of contracts awarded to friends, donors and pub landlords.

It gets worse.

The Chancellor has been signing cheques to fraudsters – including organised criminals and drug dealers.

Let’s put the Chancellor’s fraud failure in context.

He has lost a staggering £11.8 billion of public money to fraud.

This is twice the amount a previous Conservative government lost on Black Wednesday.

As a result of – let’s face it – this jaw-dropping incompetence, the Conservatives have been funding crime instead of fighting it.

And now the Chancellor has the audacity to come to British taxpayers asking them to pay more to fill his black hole.

But there can be no cover-up to hide political embarrassment.

Let’s call in the National Crime Agency to investigate.

We need answers.

People held to account.

Because let’s be clear: taxpayers want their money back.

The truth is Mr Speaker, people can no longer afford the Conservatives.

Working families can’t. Pensioners can’t. Businesses can’t.

The weak growth forecasts we’ve seen today should be flashing red on the Chancellor’s desk.

And the Chancellor, says that ‘the work starts today’.

Is he serious?

The Conservatives have been in government now for 12 years, not 12 hours.

What’s taken them so long?

Because since his party entered government, the UK has experienced the biggest downgrade in growth of any major economy.

With the last Labour government economic growth was 2.1% a year.

12 years of the Conservatives and growth has averaged 1.5%.

And now we know that growth has been downgraded this year too.

Growth is essential for funding our public services, keeping taxes under control, and keeping a handle on public finances too.

That’s why Labour have announced a tough set of fiscal rules to get our debt and deficit down.

But the truth is that because of this government’s failure to get the economy growing, it’s this Chancellor that has put up taxes on families and businesses a staggering 15 times.

This Chancellor has raised taxes more in the last two years than any Chancellor in the last 50.

He says it’s all down to the pandemic.

But the truth is the Conservatives have become the party of high taxation because they are the party of low growth.

Now, I understand the Chancellor has a portrait of Nigel Lawson above his desk.

Well, today we’ve got an energy price crisis.

Record prices at the pumps.

Inflation is back.

And the truth is, he’s not Nigel Lawson, Mr Speaker.

He’s Ted Heath with an Instagram account.

Labour would be getting the economy firing on all cylinders. Ensuring we buy, make and sell more in Britain.

Scrapping business rates and replacing them with a fairer system fit for the 21st Century.

Something that small businesses and high street businesses are crying out for, and the Chancellor mentioned it not at all in his statement today.

A Climate Investment Pledge to decarbonise the economy, create good jobs in every part of Britain, and strengthen our energy security too.

Businesses are seeing unprecedented increases in their costs right now, but all we hear from this Chancellor today is a promise of jam tomorrow rather than the support that is needed now.

And today’s statement lacks a long term plan for productivity, skills and growth. Where is it Chancellor?

Mr Speaker I can’t help but feel that in both the Chancellor’s recent Mais Lecture and in his statement today, we are presented with increasingly incredible claims.

Perhaps the Chancellor has been taking inspiration from the characters in Alice in Wonderland. Or should I say – ‘Alice in Sunakland’.

Because nothing here is quite as it seems either.

It’s the sort of place where a Chancellor celebrates giving people £200 to help with spiralling energy bills,

before explaining that he needs it all back.

In Sunakland, the Chancellor proclaims “I believe in lower taxes.” While at the same time hiking Alice’s National Insurance contributions.

Alice asks the Chancellor: when did ‘lower’ taxes mean ‘higher’ taxes? Has ‘down’ really become the new ‘up’?

The Chancellor follows Humpty Dumpty’s advice and says “when I use a word, it means just what I choose it to mean — neither more nor less.”

Alice knows that under the Conservatives, taxes are at their highest level in decades – as a result of the policies of this very same Chancellor!

In fact this Chancellor was the only G7 Finance Minister to raise taxes on working people during this crucial year of recovery.

Curiouser and curiouser.

As Alice climbs out of the rabbit hole to leave Sunakland, she recalls the words of the White Rabbit, and concludes that perhaps the Chancellor’s “reality is just different from yours.”

The actual reality, Mr Speaker, is that this Chancellor’s failure to back a windfall tax and his stubborn desire to pursue a National Insurance tax rise are the wrong choices.

In eight days’ time, people’s energy bills will be rising by 54%.

Two weeks today the Chancellor’s latest tax hike will start hitting working people and their employers.

His National Insurance tax rise was a bad idea last September, and he’s admitted it’s an even worse one today.

The Chancellor is making an historic mistake.

Today was the day to scrap the tax rise on jobs.

Today was the day to bring forward a windfall tax.

Today was the day for the Chancellor to set out a plan to support British businesses.

But on the basis of the statement today – and the misguided choices of this Chancellor – families and businesses will from now on endure significant hardship as a result.

The Chancellor has failed to appreciate the scale of the challenge that we face.

And he is yet again making the wrong choices for our country.

March 23, 2022
Rishi Sunak – 2022 Spring Statement

The statement made by Rishi Sunak, the Chancellor of the Exchequer, in the House of Commons on 23 March 2022.

Mr Speaker,

As I stand here, men, women and children are huddled in basements across Ukraine seeking protection.

Soldiers and citizens alike have taken up arms to defend their land and families.

The sorrow we feel for their suffering, and admiration for their bravery…

…is only matched by the gratitude we feel for the security in which we live.

And what underpins that security…is the strength of our economy.

It gives us the ability to fund the armed forces we need to maintain our liberty.

The resources we need to support our allies.

The power to impose sanctions which cause severe economic costs.

And the flexibility to support businesses and individuals through crises as they emerge

But Mr Speaker, we should be in no doubt, behind Putin’s invasion is a dangerous calculation:

That democracies are divided, politically weak, and economically insecure.

Incapable of making tough long-term decisions to strengthen our economies.

Mr Speaker, this calculation is mistaken.

What the authoritarian mind perceives as division – we know are the passionate disagreements at the heart of our living, breathing democracy.

What they see as chaos – we know is the freedom to be dynamic and innovative.

What they call the inherent weakness of open societies and free economies – we know is the source of our strength.

We will confront this challenge to our values not just in the arms and resources we send to Ukraine…

…but in strengthening our economy here at home.

So when I talk about security, yes – I mean responding to the war in Ukraine.

But I also mean the security of a faster growing economy.

The security of more resilient public finances.

And security for working families as we help with the cost of living.

Mr Speaker,

Today’s statement builds a stronger, more secure economy for the United Kingdom.

We have a moral responsibility to use our economic strength to support Ukraine and…

…working with international partners…

…to impose severe costs on Putin’s regime.

We are supplying military aid to help Ukraine defend its borders.

Providing around £400m in economic and humanitarian aid…

…as well as up to $0.5bn in multilateral financial guarantees.

And launching the new ‘Homes for Ukraine’ scheme…

…to make sure those forced to flee have a route to safety here in the UK.

And we are imposing sanctions of unprecedented scale and scope:

We’ve sanctioned over 1,000 individuals, entities, and subsidiaries.

Frozen the assets of major Russian banks.

Imposed punitive tariffs on key products.

Restricted Russia’s access to sterling clearing…

To insurance.

To the UK’s capital markets.

To SWIFT.

And we’ve targeted the Russian Central Bank, too.

Be in no doubt: these sanctions, coordinated with our allies, are working.

The Russian Rouble plummeted to record lows.

The Moscow stock exchange has been largely suspended for a month.

And the Central Bank of Russia has been forced to more than double interest rates to 20%.

We warned that an aggressive, unprovoked invasion would be met with severe economic costs – and it has.

I’m proud to say – as the whole House will say:

We stand with Ukraine.

But Mr Speaker,

The actions we have taken to sanction Putin’s regime are not cost free for us at home.

The invasion of Ukraine presents a risk to our recovery – as it does to countries around the world.

We came into this crisis with our economy growing faster than expected…

…with the UK having the highest growth rate in the G7 last year.

But the OBR has said specifically:

“There is unusually high uncertainty around the outlook”;

It is too early to know the full impact of the Ukraine war on the UK economy.

But their initial view, combined with high global inflation and continuing supply chain pressures, means the OBR now forecast growth this year of 3.8%.

The OBR then expect the economy to grow by 1.8% in 2023, and 2.1%, 1.8% and 1.7% in the following three years.

The House will take comfort that the lower growth outlook has not affected our strong jobs performance:

Unemployment is now forecast to be lower, in every year of the forecast.

It is already at 3.9% – back to the low levels we saw before the pandemic.

But Mr Speaker, the war’s most significant impact domestically is on the cost of living.

Covid and global factors meant goods and energy prices were already high:

Statistics published this morning show that inflation in February was 6.2%…

…lower than the US and broadly in line with the Euro area.

Disruptions to global supply chains and energy markets…

…combined with the economic response to Putin’s aggression…

…mean the OBR expect inflation to rise further, averaging 7.4% this year.

As I said last month, the government will support the British people as they deal with the rising costs of energy.

People should know that we will stand by them, as we have throughout the last two years.

That’s why we’ve announced a £9bn plan to help around 28 million households…

…pay around half of the April increase in the energy price cap.

And people should be reassured that the energy price cap will protect their energy bills, between now and the autumn.

But I want to help people now.

So I’m announcing three immediate measures.

First, I’m going to help motorists.

Today I can announce for only the second time in 20 years, fuel duty will be cut.

Not by 1, not even by 2, but by 5 pence per litre.

The biggest cut to all fuel duty rates – ever.

And while some have called for the cut to last until August, I have decided it will be in place until March next year – a full 12 months.

Together with the freeze, it’s a tax cut this year for hard-working families and businesses worth over £5 billion.

And it will take effect from 6pm tonight.

Second, as energy costs rise, we know that energy efficiency will make a big difference to bills.

But if homeowners want to install energy saving materials…

…at the moment only some items qualify for a 5% VAT relief…

…and there are complex rules about who is eligible.

The relief used to be more generous but from 2019 the European Court of Justice required us to restrict its eligibility.

But…thanks to Brexit…we’re no longer constrained by EU law.

So, I can announce for the next five years…

…homeowners having materials like solar panels, heat pumps, or insulation installed…

…will no longer pay 5% VAT– they will pay zero.

We’ll also reverse the EU’s decision to take wind and water turbines out of scope – and zero rate them as well.

And we’ll abolish all the red tape imposed on us by the EU.

A family having a solar panel installed will see tax savings worth £1,000.

And savings on their energy bill of over £300 per year.

And Mr Speaker, this policy highlights the deficiencies in the Northern Ireland Protocol…

…because we won’t immediately be able to apply it to Northern Ireland.

But we will be raising it with the Commission as a matter of urgency.

And I want to reassure Members from Northern Ireland…

…that the Executive will receive a Barnett share of the value of the relief until it can be introduced UK-wide.

And the Prime Minister will bring forward further measures to reinforce our long-term energy security, in the coming weeks.

And finally, I want to do more to help our most vulnerable households with rising costs. They need targeted support.

So I am doubling the Household Support Fund to £1bn with £500m of new funding

Local Authorities are best placed to help those in need in their local areas.

and they will receive this funding from April.

Mr Speaker,

We can only afford to provide this extra support because of our stronger economy…

…and the tough but responsible decisions we’ve taken to rebuild our fiscal resilience.

Today’s forecasts confirm even after the measures I’m announcing today, we are meeting all our fiscal rules.

Underlying debt is expected to fall steadily from 83.5% of GDP in 2022-23 to 79.8% in 2026-27.

Borrowing as a percentage of GDP is 5.4% this year, 3.9% next year, then 1.9%, 1.3%, 1.2% and 1.1% in the following years.

At a time when the OBR has said that our fiscal headroom could be …

…“wiped out by relatively small changes to the economic outlook” …

…it is right that the central fiscal judgement I am making today is to meet our fiscal rules with a margin of safety.

The OBR have not accounted for the full impacts of the war in Ukraine…

…and we should be prepared for the economy and public finances to worsen – potentially significantly.

And the cost of borrowing is continuing to rise.

In the next financial year, we’re forecast to spend £83bn on debt interest – the highest on record.

And almost four times the amount we spent last year.

That’s why, Mr Speaker, we have already taken difficult decisions with the public finances;

And that’s why we will continue to weigh carefully calls for additional public spending.

More borrowing is not cost or risk free.

I said it last autumn, and I say it again today: borrowing down; debt down

So Mr Speaker,

Our response to the immediate crisis in Ukraine has been unwavering.

But we must be equally bold in response to the deeper, and more fundamental challenge Putin poses to our values.

We must show the world that freedom and democracy remain the best route to peace, prosperity, and happiness.

We will do so by strengthening our economy here at home.

To that end, we are helping families with the cost of living;

Creating the conditions for accelerated growth and productivity;

And making sure the proceeds of growth are shared fairly.

That is not the work of any one statement.

But it does begin today – and with one of our most important levers: the tax system.

I told the House last Autumn my overarching ambition was to reduce taxes by the end of this Parliament.

And we will do so – in a way that is responsible and sustainable.

Today, I am publishing a Tax Plan.

We will take a principled approach to cutting taxes:

Maintaining space against our fiscal rules – as I have done today.

Continuing to be disciplined, with the first call on any extra resources being lower taxes, not higher spending.

And, of course, carefully considering the broader macroeconomic outlook.

With those principles in mind, our new Tax Plan will build a stronger economy by reducing and reforming taxes over this Parliament, in three ways:

First, we will help families with the cost of living.

Second, we will create the conditions for higher growth.

And third, we will share the proceeds of growth fairly. Ensuring people are left with more of their own money.

Let me take each in turn.

Mr Speaker,

There is now a dedicated funding source for the country’s top priority – the NHS and social care.

Providing funding over the long-term, as demand grows.

With every penny going straight to health and care.

If it goes…then so does the funding.

And that funding is needed now.

Especially as my RHF the Health Secretary’s plans to reform healthcare, will ensure every pound of taxpayers’ money is well spent.

When I said we were a government for public services, a government for the NHS, I didn’t just mean ‘when it was easy’… it is a total commitment.

So, it is right that the health and care levy stays.

But a long-term funding solution for the NHS and social care is not incompatible with reducing taxes on working families.

Over the last decade, it has been our mission to promote tax cuts for working people and simplify the system.

That’s why the government raised the income tax personal allowance from £6,500 in 2010 to the new level of £12,570.

But the equivalent thresholds in National Insurance – which define how much people can earn NICs-free – are still around £3,000 less.

The Prime Minister pledged in the 2019 election we would increase those thresholds.

We made a big step towards that goal in my first Budget in 2020, increasing the National Insurance threshold to £9,500.

Today, we take the next step.

Our current plan is to increase the NICs threshold this year by £300.

I’m not going to do that.

I’m going to increase it by the full £3,000.

Delivering our promise to fully equalise the NICs and income tax thresholds.

And not incrementally over many years, but in one go, this year.

From this July, people will be able to earn £12,570 a year without paying a single penny of income tax or National Insurance.

That’s a £6 billion personal tax cut for 30 million people across the United Kingdom.

A tax cut for employees worth over £330 a year.

The largest increase in a basic rate threshold – ever.

And the largest single personal tax cut in a decade.

The Institute for Fiscal Studies has called it: “the best way to help low and middle earners through the tax system”.

It creates what the Centre for Policy Studies has called a “universal working income”.

It is a tax cut that rewards work.

And, Mr Speaker, around 70% of all workers will have their taxes cut by more than the amount they’ll pay through the new Levy.

Once again showing it is this government delivering for hardworking families and helping with the cost of living.

So, Mr Speaker,

The first part of our Tax Plan for a stronger economy is to support families with the cost of living.

But as I set out in last month’s Mais lecture…

…to lift our growth and productivity we need the private sector to train more, invest more, and innovate more.

People. Capital. Ideas.

That’s how we’ll create a new culture of enterprise – the second part of our Tax Plan.

The plan sets out tax cutting options on business investment and innovation, with final decisions to be announced in the Autumn Budget.

But these are significant and complex questions, so we will work with businesses over the summer to get the answers right.

Let me explain to the House the direction of travel.

First, people.

We lag international peers in adult technical skills:

Just 18% of 25-64 year olds’ hold vocational qualifications, a third lower than the OECD average.

And UK employers spend just half the European average on training their employees.

So, we will consider whether the current tax system, including the operation of the Apprenticeship Levy…

…is doing enough to incentivise businesses to invest in the right kinds of training.

Second, ideas.

Over the last fifty years, innovation drove around half the UK’s productivity growth.

But since the financial crisis, the rate of increase has slowed more than in other countries.

And our lower rate of innovation explains almost all our productivity gap with the United States.

Right now, we know that the amount businesses spend on R&D as a percentage of GDP is less than half the OECD average.

And that is despite us spending more on tax reliefs than almost every other country.

Something is not working.

So we’ll reform R&D tax credits so that they’re effective and better value for money.

We’ll expand the generosity of the reliefs to include data, cloud computing, and pure maths.

And we’ll consider, in the autumn, whether to make the R&D expenditure credit more generous.

Third, capital.

Weak private sector investment is a longstanding cause of our productivity gap internationally:

Capital investment by UK businesses is considerably lower than the OECD average of 14%.

And it accounts for fully half our productivity gap with France and Germany.

Once the Super Deduction ends next year, our overall tax treatment for capital investment will be far less generous than other advanced economies.

We’re going to fix that.

In the Autumn Budget, we will cut the tax rates on business investment.

And I look forward to discussing the best way to do that with businesses.

People. Capital. Ideas.

Three priorities for business tax cuts this autumn.

But, Mr Speaker, I want to help smaller businesses right now.

So let me remind the House of our plan:

Our business rates discount will take effect in April for retail, hospitality, and leisure businesses.

They’ll get a 50% discount on their business rates bill, up to £110,000.

A typical pub will save £5,000.

That’s a tax cut for hundreds of thousands of small businesses worth £1.7 billion.

Taking effect in just one weeks’ time.

Our Help to Grow: Management scheme offers businesses mini-MBAs, 90% funded by government – a benefit worth several thousand pounds.

And Help to Grow: Digital gives businesses a 50% discount on buying new software worth up to £5,000.

We’ve also increased the Annual Investment Allowance to £1 million;

So that all small and medium sized businesses will feel the benefit of full expensing.

But Mr Speaker, I want to respond to the specific calls from small businesses, with one further announcement today.

The Employment Allowance cuts small businesses’ tax bills, making it cheaper to employ workers.

In my first Budget two years ago, I increased that allowance.

Today, I am going further.

From April, the Employment Allowance will increase to £5,000.

That’s a new tax cut worth up to £1,000 for half a million small businesses – starting in just two weeks’ time.

So, Mr Speaker,

Future tax cuts on business investment and innovation.

A business rates discount worth £1.7 billion.

Help to Grow schemes worth thousands of pounds per business.

An annual investment allowance worth up to £1 million.

And a new tax cut on the costs of employment worth £1,000 per company.

Once again, Mr Speaker, it is this government delivering for British business.

Mr Speaker,

The tax plan I’ve announced today will help people and businesses deal with rising costs.

Will help raise the future growth rate of this country.

But we want the proceeds of growth shared fairly – the third objective of our tax plan.

The knowledge you can keep more of what you earn is a powerful incentive for people to work hard.

It means greater economic security, and we know that individuals spend their money better than governments do.

We’ve already announced today the equalisation of personal tax thresholds, giving over 30 million workers a tax cut worth over £330.

And, over time, I want to go further.

But tax cuts must be paid for.

They must be prioritised.

And they must fit the economic circumstances of the time.

A clear goal for previous Chancellors… … has been to cut Income Tax…

The fact this has happened only twice in 20 years tells you how hard it is to do.

Covid and the war in Ukraine have only added to the difficulty of achieving this by the end of this Parliament.

I am sure all Members of the House recognise and understand those challenges.

It would clearly be irresponsible to meet this ambition this year.

And yet…I refuse to let that ambition whither and drift.

By 2024, the OBR currently expect inflation to be back under control, debt falling sustainably, and the economy growing.

Our fiscal rules are met with a clear margin of safety.

And so my final announcement today is this:

I can confirm, before the end of this Parliament, in 2024, for the first time in sixteen years…

…the basic rate of income tax will be cut from 20 to 19 pence in the pound.

A tax cut for workers, for pensioners, for savers.

A £5bn tax cut for 30 million people.

Let me be clear with the House: It is fully costed and fully paid for in the plans announced today.

Last year, I told the House I would cut taxes for hardworking families…

…but I would do so in a responsible and sustainable way…

…and today, I am delivering on that promise.

So let me say this …

Cutting taxes is not easy, it requires hard work, prioritisation…

…and the willingness to make difficult and often unpopular arguments elsewhere.

It is only because this government has been prepared to make those difficult but responsible choices to fix our public finances…

…that I can stand here and tell this House that not only are taxes being cut…

…but that debt is also falling…whilst public spending is increasing.

This doesn’t happen by accident Mr Speaker…

We can deliver for the British people today and into the future…

We have a plan.

A plan that reforms and improves public services.

A plan to grow our economy

A plan to level up across the United Kingdom.

A plan that helps families with the cost of living.

And yes, a tax plan…

…that cuts taxes on working families by over £330.

Cuts taxes on fuel by 5p per litre.

Cuts taxes on business.

And yes… for the first time in a long time…

Cuts income tax.

Mr Speaker, let me end by simply saying this:

My Tax Plan delivers the biggest net cut to personal taxes in over a quarter of a century.

And I commend it to the House.

March 23, 2022