Commons Sense

House of Commons · Ministers' Questions

Topical Questions

Tuesday 7 December 2021 · 22 questions

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Answered 8 Partly answered 14 Not answered 0

Key points

  • Christine Jardine questioned the Chancellor about the consistency between the 2019 Queen's Speech and the actual alcohol duty reform proposals.
  • The Chancellor clarified that the proposed alcohol duty reforms would simplify the system and benefit Scotch whisky producers.
  • Rachel Reeves inquired about the recovery efforts for funds misappropriated through the business support schemes, to which the Chancellor responded with details about the taxpayer protection taskforce and its expected recovery of between 1 billion and 2 billion in the next 12 months.

Topics (select to filter)

Questions & Answers

Q1 Christine Jardine Lib Dem Edinburgh West
Context

The question follows the announcement of alcohol duty reforms which aim to simplify and improve public health. Christine Jardine is concerned that these proposals may not be in line with the previous rationale stated in the 2019 Queen's Speech.

Question

In the 2019 Queen's Speech, the rationale for reform was set out as being to “ensure our tax system is supporting Scottish whisky and gin producers and protecting 42,000 jobs”—including many in my constituency. How would the Chancellor square that with the actual proposals, which will tax domestic producers more than those of imported cava, prosecco and champagne; do not take into account how people consume spirits with mixers, the sugar and calorific content or his own Government's health policies; and actually increase the competitive disadvantage of an important domestic sector compared with the international one?

Answer from Rishi Sunak

Our reforms of the alcohol duty system usher in a system that is simpler, fairer and better for public health. I am not entirely sure that the hon. Lady has got the details right on this. In fact, for Scotch whisky, this is an improvement because we have levelled the playing field for higher-strength drinks, which the Scotch Whisky Association had been calling for. With regard to the differential between domestic and foreign producers, because English sparkling wine is produced to a lower alcohol content naturally than foreign sparkling wine, it will actually, for the first time, enjoy a tax advantage under the new system. Perhaps most relevant immediately, we also froze all alcohol duties—a half-a-billion-pound tax cut for British people this year.

Partly answered

Not addressed: The Chancellor did not directly address how the reforms align with supporting whisky and gin producers as stated in the 2019 Queen's Speech.

How: I Am Not Entirely Sure That The Hon. Lady Has Got The Details Right On This.

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Q2 Christine Jardine Lib Dem Edinburgh West
Context

The Government's own accounts show that £6.5 billion of taxpayers' money was lost due to fraud in the business support schemes, which is equivalent to a significant tax cut for basic rate taxpayers.

Question

At the weekend it was briefed that the Government will set up a star chamber to crack down on waste—which, frankly, has been the hallmark of this Government. Indeed, the Government's own accounts show that the incompetent way in which the business support schemes were structured meant that the Chancellor has allowed fraudsters to walk away with £6.5 billion of taxpayers' money. That would be more than enough to cut the basic rate of income tax by a penny in the pound, worth £370 a year to basic rate taxpayers. So can the Chancellor explain why quick electronic checks such as cross-referencing with HMRC tax data were not conducted before money was handed out? Given this huge waste of taxpayers' money, can the Chancellor confirm that he will be the first witness in front of his own star chamber?

Answer from Rishi Sunak

The hon. Lady would usually be on top of the numbers. She will understand that there is a difference between a one-off saving of £6 billion and an annual saving on a tax cut of £6 billion. Those two things are not like-for-like comparable. On the numbers she refers to, I am happy to tell her that in the most recent analysis from the Department for Business, Energy and Industrial Strategy's independent adviser, the estimate of fraud was reduced by a third because of the actions that the Government had taken, which is welcome news. But of course we remain committed to tackling fraud. That is why in the spring Budget we invested an extra £100 million in HMRC, with 1,200 new people to tackle fraud, and they are expected to recover over £2 billion over the next 12 months. With regard to bounce back loans, 55,000 loans worth up to £2 billion were recovered and stopped.

Partly answered

Not addressed: The Chancellor did not directly address why quick electronic checks were not conducted before money was handed out and dodged the question about being a witness in front of his own star chamber.

How: But Of Course We Remain Committed To Tackling Fraud

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Q3 Rachel Reeves Lab Leeds West and Pudsey
Context

A £4.7 million loan was given to a company founded just two days before it received the cash, highlighting inefficiencies and potential fraud in the system.

Question

The Chancellor might be relaxed about handing out £6.5 billion, or perhaps it is £4 billion, to companies that did not deserve it, but we on this side of the House are absolutely not. It is reported that a £4.7 million loan was given to a business founded just two days before it was handed the cash. It should not be beyond the wit of Government to get money to where it needs to go—to great British business—without allowing fraudsters to steal taxpayer funds. Leaving the till open and unattended for thieves to clear out would be a sackable offence for a shop worker, yet apparently it is acceptable for the Chancellor of the Exchequer. Staggeringly, only one in 40 cases where fraud has been reported is actually being pursued. Let me ask the Chancellor this: when was he first alerted to this fraud, and how much does he think taxpayers will get back from the billions of pounds lost to fraudsters?

Answer from Rishi Sunak

As I have said, the new taxpayer protection taskforce at HMRC is expected to recover between £1 billion and £2 billion in the next 12 months, and has already made a good start on that. It is fair to reflect on where we were in spring 2020. I remember being at this Dispatch Box every other day. I remember Members from all parts of the House rightly holding the Government to account for getting money to businesses in a matter of hours and days, not weeks.

Partly answered

Not addressed: The Chancellor did not provide details on when he was first alerted to this fraud case or specific expected recovery amounts from these cases.

How: It Is Fair To Reflect On Where We Were In Spring 2020.

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Q4 Rachel Reeves Lab Leeds West and Pudsey
Context

The Chancellor's plan for jobs includes initiatives to support employment. Lucy Allan highlights an organization called Teach A Trade in Telford that trains unemployed and career-changing individuals with gas and electrical qualifications, which are in high demand.

Question

I thank the Chancellor for his hugely successful plan for jobs. I recently visited an organisation in Telford called Teach A Trade, which successfully trains long-term unemployed and older people changing careers to get gas and electrical qualifications, which are in short supply in my constituency. What is his Department doing to work with organisations such as Telford's Teach A Trade to make these courses more accessible to more students? Can he please tell me what his Department can do to help Telford's Teach A Trade so that it can expand the excellent work it is doing?

Answer from Helen Whately

As we build a strong economy, we need to raise skills. That is why we announced in the spending review an increase of £3.8 billion in skills spending over this Parliament. The spending review included funding for a specific 50-plus training scheme to support people like those being helped by Teach A Trade so that they can retrain and stay in work. I am happy to speak further to my hon. Friend about how we can support Teach A Trade and others like it to do what they do.

Partly answered

Not addressed: The answerer did not provide specific actions or commitments for supporting Teach A Trade directly, only a general statement of intent.

How: I Am Happy To Speak Further To My Hon. Friend About How We Can Support Teach A Trade And Others Like It

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Context

The hospitality and tourism sectors are facing financial pressures.

Question

In this season of generosity, will the Chancellor extend the lower rate of VAT beyond March next year to help the hard-pressed hospitality and tourism sector?

Answer from Rishi Sunak

Our VAT cuts extend until spring, representing a £7 billion tax cut.

Partly answered

Not addressed: Specific commitment to extend VAT beyond March was not made

How: Under Review

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Context

The Welsh Government has announced a tourism tax which is likely to affect the hospitality sector negatively.

Question

Does my right hon. Friend agree that imposing a new tax on an already hard-hit sector like hospitality in Wales shows that Labour-nationalist coalitions are bad for business and economy?

Answer from Rishi Sunak

This Government are supporting hospitality businesses with a lower rate of VAT till spring worth £7 billion and a business rates discount next year.

Partly answered

Not addressed: Specific agreement on the negative impact of tourism tax was not confirmed

How: Under Review

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Q7 Andy McDonald Lab Middlesbrough and Thornaby East
Context

Research shows that many workers do not qualify for statutory sick pay.

Question

Why can the Government not improve statutory sick pay so more people can afford to self-isolate and recover from illness?

Answer from Rishi Sunak

We improved how statutory sick pay works at the beginning of the crisis, making it payable from day one. We also changed universal credit and expanded its definition, as well as putting self-isolation payments into place.

Partly answered

Not addressed: Specific improvements to statutory sick pay qualifications were not committed to

How: Under Review

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Context

Increasing floods are causing destruction and chaos in communities along the River Severn.

Question

Will the Minister meet the River Severn Partnership to discuss funding solutions?

Answer from Helen Whately

Between now and 2027, £170 million will be invested in flood and erosion risk management in the English Severn and Wye region. Willing to meet my hon. Friend to discuss further.

Answered
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Q9 Cat Smith Lab Lancaster and Wyre
NHS
Context

Decay in NHS dentistry affects constituents across the country.

Question

How much longer will constituents have to wait for NHS dentists, and what financial support is being given?

Answer from Simon Clarke

The record settlement for the Department of Health and Social Care at the recent spending review includes £177.4 billion in 2024-25, with NHS dentistry as a priority spend.

Partly answered

Not addressed: Specific timeline or financial support details were not provided

How: Under Review

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Context

The universal credit taper rate has been changed to provide a £1,000 annual tax cut.

Question

Will the Minister confirm that the tax cut will be seen in people's bank accounts by Christmas?

Answer from Lucy Frazer

Yes, the £1,000 annual tax cut through changes to the universal credit taper rate will begin to be seen in people's bank accounts this side of Christmas.

Answered
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Q11 Sarah Green Lib Dem Chesham and Amersham
Context

The loan charge is taking a toll on lives, with eight people losing their lives to suicide.

Question

Will the Government commit to a fresh and independent review of the loan charge?

Answer from Lucy Frazer

An independent review by Lord Morse has been carried out, with the Government accepting all but one recommendation. HMRC has a helpline for those affected.

Partly answered

Not addressed: Commitment to a new independent review was not made

How: Under Review

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Context

The Chancellor established the Darlington economic campus.

Question

How is progress on the Darlington economic campus, and how many Treasury staff are now in Darlington?

Answer from Helen Whately

We see a growing number of Treasury staff working in Darlington along with Ministers spending time there. My right hon. Friend the Chief Secretary to the Treasury will also be visiting this week.

Answered
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Q13 Karl Turner Ind Kingston upon Hull East
Context

The Chancellor was interviewed about attending Downing Street Christmas parties.

Question

Will the Chancellor categorically deny that he or any officials attended any of the Downing Street Christmas parties in December 2021?

Answer from Rishi Sunak

No, I did not attend any parties.

Answered
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Context

The Government's business rates relief has been warmly welcomed in Bexley.

Question

I am concerned that while the step taken to cut business rates by 50% for retail, hospitality and leisure companies means that 90% of all eligible businesses will see a cut of at least 50%, it is important to ensure this measure helps many businesses not only survive but flourish.

Answer from Lucy Frazer

We have business rates relief of almost £1.7 billion next year for retail, hospitality and leisure, which is part of a package of £7 billion over the next five years.

Answered
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Q15 Tan Dhesi Lab Slough
Context

The Department for Transport's autumn spending review funding application for the western rail link to Heathrow was rejected by the Treasury.

Question

Given that the Government made a solemn pledge back in 2012 to build it, can the Chancellor please advise me on when it will finally be built—or will this be yet another broken Tory promise?

Answer from Simon Clarke

Transport sits at the heart of the spending review that has just concluded, and of course we have the £96 billion integrated rail plan. I am very happy to look at the scheme to which the hon. Member refers.

Partly answered

Not addressed: When will it be built?

How: Looking At This

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Context

There is industry suggestion that the Government may not legislate for access to cash as soon as possible.

Question

Can the Chancellor confirm that, contrary to industry suggestions, the Government remain committed to legislating for access to cash as soon as possible?

Answer from John Glen

Absolutely, I can. We will legislate, regardless of what the industry brings forward.

Answered
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Q17 Bill Esterson Lab Sefton Central
Context

Florence Roby Ltd was turned down when it bid for Government contracts for personal protective equipment despite a 50-year track record of high-quality production.

Question

When will good people such as my constituents get access not to a VIP lane, but to a level playing field?

Answer from Simon Clarke

We worked at speed to secure the PPE needed to protect our frontline workers, and we supplied over 58,000 different healthcare settings. We now have a four-month stockpile of all critical PPE to make sure that the NHS can continue to be protected.

Partly answered

Not addressed: When will good people get access to a fair system?

How: Working With Partners

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Context

Harrogate has been the trial and development location for universal credit.

Question

Does my right hon. Friend the Chancellor agree that rolling it out further, and migrating people currently on legacy benefits, will help even more people make work pay?

Answer from Rishi Sunak

My hon. Friend is absolutely right. This Government are committed to making sure that work always pays, and that is why universal credit is such an improvement on the previous system—an improvement that the Opposition did not support at all.

Answered
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Q19 Stephen Morgan Lab Portsmouth South
Context

The Minister will be aware that Viktor Fedotov, the secret co-owner of Aquind, has been implicated in a £72 million fraud scheme linked to Putin's Russia.

Question

Can the Minister say what due diligence has been done on the project company and its owners, and if he and ministerial colleagues will protect our national infrastructure from these alleged fraudsters by stopping the disastrous project once and for all?

Answer from John Glen

The Government remain absolutely committed to protecting this country from illicit finance. We have been a leader in the global community, making this place the safest place to do business.

Partly answered

Not addressed: What due diligence has been done?

How: Working With Partners

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Context

A key way to support economic growth is to help level up our forgotten high streets.

Question

When the Chancellor is next up in Teesside, will he come with me to Eston, and meet leaders at Redcar and Cleveland Borough Council to see what can be done to level up Eston Square?

Answer from Rishi Sunak

Yes, I would be very happy to. I am fresh from my visit to Yarm High Street last week to see levelling up in action, and I am back up in the north-east this week.

Answered
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Q21 Gareth Thomas Labour (Co-op) Harrow West
Context

The Chancellor of the Exchequer will be aware of the considerable public unease about the proposed demutualisation of Liverpool Victoria.

Question

Will he therefore consider sympathetically the cross-party letter he has received from over 100 parliamentarians calling for a review of the law governing mutuals?

Answer from John Glen

As the hon. Gentleman knows, we have had considerable engagement on this subject. This is a matter for the Financial Conduct Authority, and we have discussed it.

Partly answered

Not addressed: Consideration of law review?

How: Working With Partners

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Q22 Martin Vickers Con Brigg and Immingham
Context

Ministers will know of the importance of the Humber ports to the regional and national economy.

Question

May I tell it that the Chancellor will fund those improvements?

Answer from Simon Clarke

I commend my hon. Friend for his inventiveness. Our ports lie at the heart of our prosperity, and I am delighted that the Humber freeport is imminently going live.

Partly answered

Not addressed: Funding assurance?

How: Working With Partners

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