Topical Questions 2025-01-21
2025-01-21
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Response quality
Questions & Answers
Q1
Partial Answer
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Context
Conservative MP Mel Stride questioned the Labour government's decision to increase national insurance contributions, citing it as a burden on businesses and an inefficient use of taxpayer money.
A full two thirds of the revenues raised through Labour’s job tax is simply going on servicing the additional debt being run up by this profligate Government. Given that, does he really believe that the catastrophic effects of that tax on businesses right up and down the country are a price worth paying?
We inherited a £22 billion black hole in the public finances, and we set out the detail of that at the time of the Budget. It was essential to close that gap to bring stability back to the public finances. That required difficult decisions, but they were the right decisions to ensure that our country has the stability that it lacked for so many years and under so many different Prime Ministers and Chancellors under the Conservative party.
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Q2
Partial Answer
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Labour MP Steve Yemm raised concerns about the investment reserve fund of the British Coal Staff Superannuation Scheme and its release to beneficiaries.
My constituency of Mansfield has more members of the British Coal staff superannuation scheme than any other constituency in the country. Will the Chief Secretary outline the process and questions that need to be satisfied to release the investment reserve fund to the surviving beneficiaries of the scheme?
I confirmed to the House today that the Minister for Trade in the Department for Business and Trade is working with the trustees of the BCSSS to consider options. I will meet the Minister to look at those options and provide further updates to the House in due course.
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Q3
Partial Answer
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Context
Liberal Democrat MP Olly Glover questioned the government's funding settlement for local councils, which would leave them with a gap of £637 million after increased employer national insurance contributions.
The Local Government Association estimates that the Budget’s increases to employer national insurance contributions will cost local councils an extra £637 million per year. The Government’s funding settlement for councils in relation to that of £515 million will leave them with a gap, putting key services such as social care, pothole repairs and leisure facilities at risk. Will the Chancellor commit to fully finding that gap for local councils, rather than them having to look for savings?
During the passage of the National Insurance Contributions (Secondary Class 1 Contributions) Bill, we set out clearly how the scheme would work to reimburse costs for public departments or local government.
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Q4
Partial Answer
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Labour MP Brian Leishman questioned the government's decision to back an INEOS project in Antwerp with a £600 million loan guarantee, while INEOS plans to close the Grangemouth refinery.
The previous Conservative Government decided to back an INEOS project in Antwerp, with a £600 million loan guarantee. I have spoken with the current Secretary of State for Energy Security and Net Zero and the Under-Secretary of State for Energy Security and Net Zero about that, and I have been told that the Government have no plans to stop that money, even though INEOS plans to close the Grangemouth refinery, with the loss of thousands of jobs. Why is there £600 million for Antwerp and not Grangemouth, and why would the Government allow that to happen and not use the £600 million as leverage with INEOS, to avoid Scottish job losses?
This Government cannot account for the decisions made by the Conservative party, but we have created the Office for Value for Money, to ensure value for money when we use taxpayer’s money.
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Q5
Partial Answer
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Independent MP Rupert Lowe questioned the accountability of HMRC and proposed a comprehensive review to improve its service.
As someone actively involved in a number of businesses, unlike the majority of Front Benchers, I have spent far too much of my life trying to communicate with His Majesty’s Revenue and Customs. Taxpayers cumulatively spent 798 years on hold with HMRC in 2022-23, and letters often go unanswered for months. Will the Chancellor commit to a comprehensive review of HMRC, to make it as accountable to the taxpayer as the taxpayer is to them?
One of my key priorities as Exchequer Secretary and the Minister with responsibility for HMRC is to oversee a programme of transformation at HMRC to improve its customer service.
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Q6
Partial Answer
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The US Federal Reserve and EU Central Bank are not engaging in active quantitative tightening, while the Bank of England is. The cost to public finances due to a fire sale of UK Government bonds by the Bank of England is around £13 billion annually.
Neither the US Federal Reserve nor the EU Central Bank are engaged in active quantitative tightening, but the Bank of England is. The Bank of England is costing the public finances in the region of £13 billion a year as a result of a fire sale of UK Government bonds. Last time I spoke to the Chancellor about that, she said that that was because of the Bank of England’s operational independence, which we all value, but that is not a licence for impunity. What discussions will she have with the Bank of England about releasing UK Government debt in a way that benefits everybody in the UK?
It is our view that it is absolutely right that the Bank of England has operational independence. That is in line with international standards and what is happening in jurisdictions around the world, including in the United States and the eurozone.
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Assessment & feedback
Discussion about releasing UK Government debt to benefit public finances was avoided
Deflects By Reiterating Bank Of England'S Operational Independence Without Addressing Specific Request For Discussions
Response accuracy
Q7
Direct Answer
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Context
Recent developments have highlighted the importance of retail investors in UK financial markets. The Chancellor prioritised leveraging domestic pension capital to drive economic growth.
Recent developments in the UK investment trust sector have once again shone a light on the crucial role that retail investors play in our financial markets. In her Mansion House speech last November, the Chancellor rightly prioritised leveraging domestic pension capital to drive the Government’s economic growth mission. Does the Minister agree that greater retail participation in UK financial markets also supports growth and democratises wealth, and will she meet me to discuss how the Government can better support access to financial markets for individuals, including in my constituency?
I am always happy to meet my hon. Friend, who is a near constituency neighbour. We absolutely agree that retail investment is crucial. I want more progress on the advice guidance boundary and targeted support. I will be working closely, in my new role, with the Financial Conduct Authority to take that forward.
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Q8
Partial Answer
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Residents in the MP's constituency are concerned about news that the Chancellor plans to announce the expansion of Heathrow.
Residents in my constituency will have been extremely concerned to read the news this morning that the Chancellor plans to announce next week the expansion of Heathrow. I invite her to tell us, on the Floor of the House this morning, yes or no: will the Government back expansion at Heathrow?
I am not going to comment on leaks. I will say that the Government are absolutely committed to growing our economy, and making this a great place for businesses to invest in and trade.
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Assessment & feedback
The direct question about Heathrow expansion was avoided by referencing broader economic goals without committing to or denying support for Heathrow
Refuses To Comment On Leaks, Changes Subject To General Economic Commitment
Response accuracy