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AUTUMN STATEMENT
23 November 2016
Lead MP
Philip Hammond
Debate Type
General Debate
Tags
EconomyTaxationHousingEmploymentBrexitScience & Technology
Other Contributors: 97
At a Glance
Philip Hammond raised concerns about autumn statement in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Reports on an economy predicted to be the fastest-growing major advanced economy in the world this year, with employment at a record high and unemployment at an 11-year low. Emphasises the need to tackle long-term weaknesses such as the productivity gap, housing challenge, and economic imbalance across the country. Outlines plans for fiscal discipline while recognising the need for investment to drive productivity, including £23 billion national productivity investment fund over five years.
Philip Hammond
Con
Twickenham
Describes the economic recovery since the Brexit referendum, highlighting robust employment growth across all regions and nations of the UK. Outlines fiscal forecasts showing borrowing set to fall each year through 2021-22, with public sector net debt projected to peak at over 90% next year before falling thereafter.
Philip Hammond
Con
Windsor
The Chancellor of the Exchequer announced a significant increase in infrastructure spending, investing over £1 billion to catalyse private investment in fibre networks and support 5G trials. He also mentioned introducing 100% business rates relief for new fibre infrastructure from April, aiming to boost productivity by increasing economic infrastructure investment between 1% and 1.2% of GDP annually starting from 2020. Additionally, he highlighted the government's commitment to fund major projects such as the Oxford-Cambridge growth corridor and midlands engine strategy.
Philip Hammond
Con
Wells
Announced a £7.6 million grant for Wentworth Woodhouse and distributed £102 million of LIBOR bank fines to armed forces and emergency services charities, including £20 million for the Defence and National Rehabilitation Centre at Stanford Hall in Nottinghamshire. Emphasised investment in economic infrastructure despite controlling public spending. Highlighted crime reduction, improvement in school quality, increased NHS doctors, reduced pensioner poverty, workless households, and university attendance under Conservative government. Stated more fiscal consolidation is needed to eliminate deficit. Announced corporation tax cuts and business rates reductions to support the economy. Raised insurance premium tax but committed to end whiplash claims compensation culture. Aligned national insurance thresholds for employees and employers from April 2017. Raised personal allowance, introduced the national living wage, increased childcare hours, and provided funding for NHS and education reforms. Announced a reduction in universal credit taper rate from 65% to 63%. Also banned letting agent fees on tenants and launched a new savings bond through NS&I. Canceled fuel duty rise for seventh consecutive year.
John Bercow
Con
Twickenham
Called for order in the House, noting that some members were easily amused but reminded them that they must hear the Chancellor.
Philip Hammond
Con
Right Hon. Member for Wimbledon
The Chancellor of the Exchequer announced changes to the fiscal policy-making process, stating there would be a spring statement twice a year in response to forecasts from the Office for Budget Responsibility, but no major fiscal event. He emphasised that this change allows for greater parliamentary scrutiny and aligns with best practices recommended by institutions like the IMF and IFS. Hammond also highlighted the strength of the British economy as per the OBR report and reaffirmed the government's commitment to living within its means while investing in the future.
John McDonnell
Lab
Hayes and Harlington
McDonnell expressed condolences for Jo Cox, a Labour MP murdered earlier that year. He criticised the Government’s performance over the past six years, citing failures in deficit targets, debt target, welfare cap, growth rates, wage growth, and business investment.
John Bercow
Con
Twickenham
Reiterated his call for decorum during parliamentary debates, warning members against shouting from the gallery and reminding them of the negative public perception such behaviour engenders.
Hayes and Harlington
The UK faces significant economic challenges post-Brexit, with a failing Conservative-led economic strategy that has resulted in lower wages, cuts to universal credit, and underfunded public services. Labour urges the Chancellor to prioritise single market access for trade benefits and calls for an end to austerity measures. The speech also criticises tax avoidance, benefit freezes, social care cuts, NHS funding inadequacies, education budget reductions, and insufficient housing policies. McDonnell highlights the need for substantial investment in infrastructure and science to support a modern industrial strategy.
Philip Hammond
Con
Wells
Mr. Hammond began by expressing condolences for Jo Cox's family and congratulated the Leader of the Opposition on his appointment to the Privy Council. He criticised Labour’s economic proposal, arguing that it would always involve borrowing more in both good and bad times, resembling Gordon Brown’s “golden rule”. Mr. Hammond emphasised that under his rule, there would be tightly targeted investment decisions such as borrowing £23 billion while paying for every other commitment made. He also advised against disclosing too much during Brexit negotiations to secure the best possible deal for Britain. Regarding universal credit, he clarified that reducing the taper rate from 65% to 63% allows individuals to keep an extra 2% of their earned income. Mr. Hammond acknowledged the need for tough decisions and criticised Labour’s tax policies, stating that taxing the rich alone is insufficient to fund all proposed spending.
Kenneth Clarke
Con
Richmond Park
Mr. Clarke congratulated the Chancellor on reverting to having only one Budget per year, which he deemed sensible compared to Gordon Brown’s practice of announcing two budgets annually. He also praised the easing of the taper rate for tax credits and thanked the Chancellor for financial support towards rehabilitating disabled individuals in his constituency. However, Mr. Clarke expressed concern about political pressures that might lead the Chancellor away from fiscal discipline, highlighting the risk posed by global uncertainty to economic stability. He urged the Chancellor to continue advocating for retaining access to Europe’s single market and customs union for a competitive economy.
Philip Hammond
Con
Wells
In response to Mr. Clarke, Mr. Hammond thanked him for his support on reducing the taper rate of universal credit, noting it encourages people into work more effectively than under the previous tax credit system. He assured that he and the Prime Minister remain committed to living within means, adopting a cyclically adjusted target as an interim measure to allow responsiveness to economic downturns while maintaining fiscal discipline. Mr. Hammond also reaffirmed the importance of achieving optimal market access in Europe.
Stewart Hosie
SNP
Dundee East
The Chancellor gave us plenty of information today, but with no more than a glib reference to being match fit at the beginning and a bit of deflection, there was very little on the elephant in the room, which is Brexit. He noted that tax yields could be down by £66 billion a year after 15 years and GDP down perhaps by 9.5%, amounting to some £6,500 per year per household. The austerity of this Government and the previous one has weakened recovery. Growth barely reaches 2% for the forecast period, and although the Chancellor did not put a date on it, he is still targeting a surplus in the economy before recovery has been secured.
Philip Hammond
Con
Nottingham North
Responded to Stewart Hosie's concerns by stating that there will be an increase in capital investment including research and development under the ONS definition, with Scotland receiving £800 million. He emphasised the need for productivity improvement in Scotland and referenced the threat of a second referendum as a bigger drag on growth than Brexit.
Angus Robertson
SNP
Moray
Dissenting from Philip Hammond's response, stating that the biggest concern is Brexit rather than a potential second referendum on Scottish independence.
George Osborne
Con
Tatton
Warmly congratulated the Chancellor for his statement and support for additional funding to the northern powerhouse. He endorsed principles of controlling current spending, ensuring work pays through welfare and tax reforms, attracting business, and maintaining free trade with key export markets.
Ed Miliband
Lab
Doncaster North
Welcomed the Chancellor's adoption of fiscal rules proposed in 2015 but questioned him about the £58 billion worsening in public finances due to Brexit as reported by the OBR. He argued for remaining close to the single market and inside rather than outside the customs union.
Andrew Tyrie
Con
Congratulated the Chancellor for delivering a crucial statement, supporting the decision to make it an annual autumn Budget. Asked about the education sector's export earnings and foreign students' migration.
Philip Hammond
Con
Responded that student numbers are included in the 100,000 or tens of thousands target. The Home Secretary is looking at how to manage student flows for the benefit of an important industry.
Chris Leslie
Lab Co-op
Challenged the Chancellor on growth forecasts and borrowing predictions, questioning the leave-campaigner's promises regarding NHS funding.
Philip Hammond
Con
Stressed that the focus should be on building a match-fit economy for future success rather than revisiting campaign debates. Acknowledged uncertainty in OBR forecasts due to unusual circumstances.
John Redwood
Con
Welcomed increased OBR forecast for the year and recognition that there will be no post-vote winter recession, expressing optimism about future economic trajectory.
Philip Hammond
Con
Acknowledged uncertainty in forecasts but agreed on the objective to secure good access to the single market. Emphasised the need for individual views on economic trajectory.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
Asked about NHS funding sustainability, citing a projected deficit of £648 million from trusts alone, with a year-end forecast of £669 million.
Philip Hammond
Con
Asserted that the NHS was mentioned in the statement, highlighted context within a budget of £110 billion, and noted ongoing management and close monitoring by Health Secretary.
Anna Soubry
Con
Commended measures for economic boost post-Brexit, emphasising the role of British business in local enterprise partnerships and infrastructure plans.
Philip Hammond
Con
Agreed on engaging businesses at the heart of the process and promoting regional cities to address productivity gaps.
Andy Burnham
Lab
Asked about investment in rail for the north, social care funding shortfalls, and prioritisation between grammar schools and care for older people.
Philip Hammond
Con
Clarified that funding for grammar schools is capital spending. Noted discussions on northern powerhouse rail with Transport for the North. Emphasised additional social care funding through better care fund and local authority precepts.
Sarah Wollaston
Con
Highlighted warnings from the Care Quality Commission about social care, expressed disappointment over the better care fund not being brought forward but encouraged discussions for a sustainable long-term settlement.
Philip Hammond
Con
Acknowledged the need to discuss funding issues in a grown-up way but noted lack of interest from Opposition Members. Highlighted £10 billion additional NHS funding over this Parliament.
Douglas Carswell
UK Independence Party
Critiqued the statement for suggesting more public borrowing with total public debt set to increase, questioning predecessor's failure to control spending.
Philip Hammond
Con
Wetherby
Discussed the main drivers of public debt including growth forecasts, tax receipts relationship with GDP, and measures taken by the Bank of England. Acknowledged regulatory barriers and tax incentives for science and technology start-ups as suggested by Kit Malthouse, committing to review patient capital availability in future Budget preparations. Defended the taper rate increase on universal credit despite concerns from Rachel Reeves about its impact on work incentives, arguing that it balances fiscal capacity constraints. Reaffirmed support for Northern Ireland's additional funding and corporation tax reduction while acknowledging growth imbalances across UK regions. Emphasised importance of affordable housing investment to productivity and economic growth. Addressed the absence of NHS details in autumn statement by reiterating £10 billion annual increase in NHS spending and close monitoring of its delivery. Supported extra R&D funding for life sciences leadership, highlighting areas critical for future economic revolution.
Kit Malthouse
Con
North West Hampshire
Welcomed the Chancellor's commitment to British science and urged him to consider removing regulatory barriers and providing tax incentives for individual investment in science and technology start-ups, aiming to foster a true enterprise culture.
Rachel Reeves
Lab
Leeds West and Pudsey
Commented on the Chancellor’s statement about universal credit taper rate increase from 63p in the pound, questioning whether such measures sufficiently reward work and encourage additional hours of employment.
Welcomed steps to tackle rural business issues including extended rural rate relief, fibre broadband extension, and £1.4 million funding for Alder centre's new building in north-west for bereaved parents' counselling services.
Sammy Wilson
DUP
East Antrim
Welcomed the additional capital spending for Northern Ireland Executive and commitment to lower corporation tax, questioning the Chancellor about addressing growth imbalances across UK regions and warning against self-fulfilling prophecies of low long-term forecasts.
Highlighted the importance of affordable homes in raising living standards and economic productivity, suggesting support for moves to increase urban house-building sites by allowing construction up to existing building height limits without planning permission.
Luciana Berger
Lab
Liverpool Wavertree
Critiqued the absence of NHS details in autumn statement document and questioned the economic literacy of ignoring social care and public health cuts, urging for more investment into these services.
David Rutley
Con
Macclesfield
Welcomed extra £2 billion R&D funding, emphasising its role in underpinning UK's leadership in life sciences as a key sector for the northern powerhouse success.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Welcomed positive elements of the statement such as infrastructure spending, reduced fuel duty, and changes to universal credit while urging more NHS funding in light of winter pressures.
Responded to questions regarding the £122 billion figure, emphasised the NHS's financial situation and commitment to delivering promised outcomes. Announced support for infrastructure including relaxed restrictions on affordable housing tenure to expedite construction of 140,000 new houses. Highlighted a review of markets, particularly the retail energy market, to ensure fair consumer operations without confirming or denying rumours about protective tariffs. Offered to meet the president of the all-party beer group regarding tax adjustments for lower-alcohol beers. Reiterated significant funding towards ultra-low emission vehicles and electric charging infrastructure. Noted opportunities for other providers in affordable housing delivery but committed to further investigation. Emphasised increasing female participation rates in traditionally male fields such as engineering and construction.
Welcomed the Chancellor's support for infrastructure, particularly 140,000 new houses and suggested building them tenure-free to expedite delivery.
Asked about a protective tariff or default tariff for those on standard variable rate energy tariffs, referring to the Competition and Markets Authority's confirmation that two-thirds of bill payers are paying over the odds.
Welcomed the autumn statement and asked about beer tax adjustments to attract consumers towards lower-alcohol beers, suggesting a meeting with the Chancellor regarding this matter.
Called for pithier questions to accommodate more contributors in the debate.
Questioned the absence of mention regarding climate change, pointing out that this was set to be the hottest year on record and requested information about continued support for clean energy post-2020.
Welcomed fiscal changes including fuel duty reduction, tax allowances, and the national living wage. Inquired about opportunities to bring in local providers of affordable housing for mixed tenure sites.
Asked how many women's jobs would be created by the £23 billion infrastructure spending, and questioned whether taxes paid by women should pay for their own prosperity.
Expressed gratitude towards R&D funding and infrastructure investment in her constituency. Appreciated the Chancellor's decision on universal credit despite it not being everything desired.
Asked about a UK convergence fund to replace lost EU regional money post-Brexit, highlighting the need for alternative arrangements.
Congratulated the Chancellor on making £23 billion of targeted investment within a sustainable fiscal framework, acknowledging the productivity challenge addressed.
Asked for more funding details regarding transport infrastructure in the northern powerhouse and Transport for the North.
Requested that a new motorway junction be built between M1 junctions 25 and 26 to improve growth and productivity in her constituency.
Tooting
Affordable house building fell to its lowest level since 1991. In Wandsworth, only 13% of new homes are affordable, with the cheapest home costing £400,000. She questioned what constitutes an 'affordable' home.
Complimented the Chancellor's statement on science and technology but urged for a system to attract top talent from abroad, highlighting the importance of R&D investment in light of the Science and Technology Committee report recommending 3% GDP spend.
Expressed concern over the 13% drop in forecast business investment due to uncertainty regarding post-Brexit trade relationships, questioning why the Chancellor did not outline clear objectives for negotiations with the EU.
Jacob Rees-Mogg
Con
Somerton and Frome
Complimented the Chancellor's statement while suggesting that OBR assumptions about tariffs and financial services are overly pessimistic, proposing a more optimistic approach to Brexit negotiations.
Congratulated the Chancellor on abolishing autumn statements and introduced spring statements. Questioned the long-term growth prospects post-Brexit, suggesting public expenditure may be necessary to avoid recession.
James Cartlidge
Con
South Suffolk
Welcomed the £80 million investment for smart ticketing in transport but requested an examination of flexible travel options for part-time commuters.
Inquired if the Chancellor would ask OBR to adjust forecasts concerning immigration, given the Prime Minister's recent focus on reducing it.
Charlie Elphicke
Con
Dover
Praised the Chancellor for freezing fuel duty for a seventh year in a row, saving motorists around £130 annually.
Called attention to the issue of worker exploitation through sham umbrella companies and false self-employment, questioning why this continues under the government despite promises to review it.
Philip Hammond
Con
The Chancellor responded to concerns regarding self-employment and incorporation abuse, announced a review on ways of working led by Matthew Taylor, defended the Government's commitment to work incentives under universal credit, assured investment in broadband infrastructure across the UK, acknowledged regional infrastructure funding for the south-west, committed to continue supporting productivity growth through mayoral combined authorities, and confirmed tangible changes for the oil and gas industry.
Emma Lewell
Lab
South Shields
She questioned the Chancellor about the timeline of the review on ways of working initiated by the Prime Minister.
David Burrowes
Con
He thanked the Chancellor for measures to help low-income families and increase affordable housing in London, asking if these were part of a longer-term commitment to supporting working families.
Margaret Ritchie
SDLP
She welcomed investment in broadband infrastructure but asked for assurances that it would be fairly distributed across rural communities and devolved regions like Northern Ireland.
Ben Howlett
Con
He thanked the Chancellor for regional funding, particularly for the south-west, and requested a commitment to work with the west of England mayoral authority to unlock productivity and growth.
Stewart McDonald
SNP
He appealed for restorative funding for Holmwood House in his constituency before its bicentenary, but was met with reassurances that this would be handled by the Department for Culture, Media and Sport.
Mims Davies
Con
East Grinstead and Uckfield
She highlighted connectivity issues affecting her constituency’s economy and asked about funding for infrastructure projects like the Chickenhall link road.
Seema Malhotra
Lab Co-op
Feltham and Heston
She criticised school spending cuts, questioning how they would impact social mobility, especially in light of plans to expand grammar schools.
Justin Tomlinson
Con
He welcomed news on universal credit and urged the Chancellor to extend a DWP small employer pilot programme for disability support.
Kirsty Blackman
SNP
Aberdeen North
She asked about tangible changes for the oil and gas industry, including tax relief and loan guarantees, which the Chancellor committed to implementing swiftly.
He highlighted the positive impact of job creation in his constituency, praising measures such as raising personal allowance thresholds for taxation.
Wes Streeting
Lab
Ilford North
He expressed concern over distributional analysis showing low-income households being left worse off compared to high earners and asked for support for those barely managing.
Mark Pawsey
Con
He welcomed measures enabling an additional 40,000 affordable homes and expressed optimism about the sector getting spades into ground quickly with planning consents at a high level.
Philip Hammond
Con
He emphasised the importance of affordable housing funding as an efficient and effective method. He also defended the government's approach to employing young people at lower wage rates, stating it is crucial for them to enter a culture of work to avoid lifelong worklessness. Additionally, he discussed infrastructure investment aimed at increasing productivity through R&D and network investment, rather than social care support for ageing populations.
Alison Thewliss
SNP
Glasgow Central
She expressed disappointment over the lack of reversal in government policies regarding the two-child policy and the rape clause. She criticised the new “pretendy living wage” rate, arguing that it leaves 16 and 17-year-olds worse off than those aged 25 doing the same job.
Huw Merriman
Con
Bexhill and Battle
He discussed East Sussex’s challenge of a large social care bill for an ageing population and low business rate returns, requesting that the Chancellor's £23 billion investment fund be allocated with these challenges in mind.
Angela Smith
Lab
Penistone and Stocksbridge
She welcomed economic news about Wentworth Woodhouse but criticised the government for not acknowledging efforts to save it. She questioned why only one of five strategic road projects had been approved, particularly regarding South Yorkshire’s transport needs.
Richard Drax
Con
South Dorset
He welcomed increased infrastructure spending and requested that the Chancellor support a rail connection in his constituency due to limited road options.
Jack Dromey
Lab
Birmingham Erdington
He questioned the Conservative Government’s credibility regarding promises made to workers, highlighting broken pledges about worker representation on company boards.
Chris Philp
Con
Croydon South
He welcomed infrastructure spending and requested reassurance that the Transport Secretary would address issues with the Brighton main line railway.
Patrick Grady
SNP
Glasgow North West
He asked the Chancellor to consider recommendations from the Procedure Committee regarding the scrutiny of Barnett consequentials, particularly in light of changes due to English votes for English laws.
Iain Stewart
Con
Milton Keynes South
He welcomed investment in rail and road links between Oxford and Cambridge, highlighting its potential economic benefits.
Chris Stephens
SNP
Glasgow North West
He raised concerns about HMRC staff's ability to collect tax due to office closures and recommended reviewing the programme based on a report from the Public and Commercial Services union and the Tax Justice Network.
Kevin Foster
Con
Torbay
He inquired about the resilience of the Dawlish coastal railway, seeking confirmation that recent investments indicate future support for securing this line against flood risks.
Nick Smith
Lab
Blaenau Gwent and Rhymney
He asked about the cost implications of importing F-35 fighters given sterling's decline in value, questioning whether these costs would increase over future years due to currency exchange.
Owen Thompson
SNP
Edinburgh South
Welcomed the Edinburgh south-east Scotland city deal still in today's autumn statement but questioned why it has not yet received sign-off despite planning for more than two years.
Simon Danczuk
Lab
Rooley
Inquired about National Infrastructure Commission investment and the money going to LEPs in the north of England, asking if funds would support electrification of the Calder Valley rail line.
Roger Mullin
LD
Hampstead and Kilburn
Asked the Chancellor to confirm that OBR's Economic and Fiscal Outlook does not imply failure in achieving single market membership, despite high margins of error noted.
Mark Durkan
SDLP
Ealing Lodon West
Acknowledged projected welfare increases but urged Chancellor to be more proactive towards Northern Ireland Executive regarding city deals and devolution opportunities.
Stuart McDonald
SNP
Carmunnock
Highlighted the OBR's prediction of £16 billion loss over five years due to post-referendum fall in immigration, suggesting Chancellor should advocate for free movement of people.
Leeds North West
Welcomed transport infrastructure funding but requested allocation towards a light rail scheme connecting Leeds Bradford airport and other parts of the city.
Alan Brown
SNP
Central Ayrshire
Inquired about loan guarantees for oil and gas projects, referencing the £4.2 billion loan guarantee for the Thames tideway project.
Tom Elliott
Con
Folkestone and Hythe
Raised a point of order regarding accuracy in statements made by shadow Health Minister about Labour's manifesto promises concerning NHS funding.
Jon Ashworth
Lab
Delyn
Responded to previous point of order, requesting clarification on Government claims about extra £10 billion spending on the national health service and questioning the validity of such statements.
Chris Stephens
SNP
Glasgow South West
Asked for a statement or debate concerning the National Shipbuilding Strategy and its report, which were expected to be published by now but have not been released yet.
Government Response
The Chancellor of the Exchequer outlined a comprehensive plan including investment in digital infrastructure, funding for regional development projects like the Oxford-Cambridge growth corridor, and allocation of £1.8 billion from the local growth fund to English regions. He also discussed measures to support business growth through export finance capacity expansion, management skills boost, venture capital injection, and patient capital review. The Chancellor stated that there would be a spring statement twice a year in response to forecasts from the Office for Budget Responsibility, but no major fiscal event. He highlighted the strength of the British economy and reaffirmed the government's commitment to living within its means while investing in the future. Responded to concerns about affordable housing, business investment uncertainty due to Brexit, smart ticketing in transport, immigration forecasts, fuel duty freezes, and worker exploitation. Responded to various questions about city deals, infrastructure investments, OBR forecasts, loan guarantees, NHS funding claims, and shipbuilding strategy. Emphasised commitment to processes involved and the need for engagements between parties.
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