Commons Sense

House of Commons · Ministers' Questions

Topical Questions

Tuesday 19 December 2023 · 19 questions

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

At a glance

Answered 5 Partly answered 12 Not answered 0

Key points

  • The UK aims to become a global cryptocurrency hub, with London leading the way.
  • The Chancellor declined to comment on specific fraud allegations but affirmed the government's commitment to tackling fraud.
  • The Chancellor confirmed that he will visit the UK's gold reserves this week.

Topics (select to filter)

Questions & Answers

Context

Industry supports the Prime Minister's vision for UK to become a cryptocurrency hub, but licensed companies face difficulties in opening bank accounts. The MP asks if Chancellor will meet the all-party group on crypto and digital assets.

Question

I, too, send my full sympathy. I also wish everyone across the House a merry Christmas. Industry has fully supported the Prime Minister's vision of the UK becoming a cryptocurrency hub, but many licensed companies are still finding it difficult to open bank accounts here. So will the Chancellor meet the all-party group on crypto and digital assets to discuss what progress can be made on digital Britain?

Answer from Jeremy Hunt

I am grateful to my hon. Friend for asking that question, because the UK, and London in particular, has become the global crypto hub. To make sure that the market can really take off in the way that was intended—in a responsible way—we need to regulate it, which is why we have introduced regulations on stablecoins and on the promotion of crypto services. My hon. Friend the Economic Secretary to the Treasury would be more than happy to meet her.

Answered
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Q2 Darren Jones Lab Bristol North West
Context

The public has a right to know why so many billions of pounds of taxes have been wasted by the Government. Baroness Mone's personal connections to PPE Medpro are under scrutiny.

Question

Merry Christmas to you and to the House, Mr Speaker. Let me start by thanking the Chancellor for his kind words about the late Lord Darling, which I think show the gratitude of Members from across the House for his lifetime of public service. The public have a right to know why so many billions of pounds of their taxes have been wasted by this Government. Baroness Mone has claimed today that Conservative Ministers knew about her personal connections to the company PPE Medpro from the very beginning. So why did the Government not correct the record when a misleading picture was being painted in the media about Baroness Mone's personal connection to PPE Medpro in the first place?

Answer from Jeremy Hunt

I am not going to comment on allegations by Baroness Mone or, indeed, on the individual case, but let me say this: we put together a taskforce of more than 1,000 people that opened 46,000 investigations and so far has made more 80 arrests, so we will stop at nothing to tackle fraud and bring to justice anyone who was responsible for wrongdoing. But what we did in a moment of extreme crisis was to make sure that we got personal protective equipment to the frontline as quickly as we could, and had we not done so many more lives would have been lost.

Partly answered

Not addressed: Specific details about why the government didn't correct Baroness Mone's record were avoided

How: We Will Stop At Nothing To Tackle Fraud, But What We Did In A Moment Of Extreme Crisis

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Q3 Darren Jones Lab Bristol North West
Context

Doug Barrowman alleged that a Government official approached him in November 2022 asking if they would “pay more for the other matter to go away.” This claim is serious and concerning.

Question

We all know that Baroness Mone's enrichment via PPE Medpro is subject to an investigation, but that does not allow Ministers to refuse to answer questions here in the House today. So let me ask another: Baroness Mone's husband, Doug Barrowman, alleged that in November 2022 he was approached by a Government official asking if they would “pay more for the other matter to go away.” Is that specific and incredibly serious claim now being investigated and, if so, by whom?

Answer from Jeremy Hunt

If the hon. Gentleman has any evidence of people behaving improperly or illegally, he should tell the police, and he will get the full support of this Government and the whole House in bringing the matter to justice. But let me just say to him that any responsible Opposition should understand that in a crisis there is a trade-off between speed and taking longer to prevent fraud, and we took the right decision to save as many lives as possible.

Partly answered

Not addressed: Specific details about investigation of Doug Barrowman's allegation were avoided

How: If The Hon. Gentleman Has Any Evidence, In A Crisis There Is A Trade-Off Between Speed And Taking Longer

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Q4 Greg Smith Con Mid Buckinghamshire
Context

Small businesses in the constituency are slowing down as they approach the VAT threshold, rather than growing. The MP asks for an upward shift of the VAT threshold.

Question

I am hearing from a concerning number of small businesses in my constituency that they are slowing down as they approach the VAT threshold, rather than doing what the whole economy needs them to do and going for growth. Ahead of the spring Budget, will my right hon. Friend look at substantially shifting the VAT threshold upwards?

Answer from Nigel Huddleston

My hon. Friend is a great advocate for small businesses. The Government recognise that accounting for VAT can be a burden on businesses, but that is why, at £85,000, the UK has a higher VAT registration threshold than any EU member state and the second highest in the OECD, keeping the majority of UK businesses out of VAT altogether. In the 2022 autumn statement, it was announced that the VAT threshold would be maintained at its current level until 31 March 2026. As always, the Government keep taxes under review.

Partly answered

Not addressed: No specific commitment to shift VAT threshold upwards

How: The Government Recognise, Vat Threshold Will Be Maintained At Its Current Level

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Context

At the autumn statement, the Chancellor mistakenly said that the household support fund was being extended into the next financial year. The MP asks for an official announcement of this extension in the Budget.

Question

I echo the Chancellor's generous and well-judged tribute to Alistair Darling. At the autumn statement, the Chancellor said—mistakenly, as it turned out—that the household support fund was being extended into the next financial year; the Chief Secretary to the Treasury clarified the position a few moments ago. Does the Chancellor recognise that there is a compelling case for him to announce exactly that extension in the Budget, so that councils can continue to provide the last-resort safety net that has been such a valuable feature of the household support fund over the last three years?

Answer from Jeremy Hunt

I recognise the important role the household support fund has played. As my right hon. Friend the Chief Secretary to the Treasury said earlier, no decisions have been made about what will happen going forward. There were a lot of anti-poverty measures in the autumn statement, including increasing benefits next year by double the rate of inflation, increasing the full-time national living wage by £1,800 a year and increasing the local housing allowance, providing an average of an extra £800 to 1.6 million households.

Partly answered

Not addressed: No specific commitment regarding extension of household support fund into next financial period

How: No Decisions Have Been Made, A Lot Of Anti-Poverty Measures

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Q6 Harriett Baldwin Con West Worcestershire
Context

The HMRC has shut down its hotline for the majority of people and their advisors, leaving constituents unable to seek assistance.

Question

Merry Christmas. Millions of constituents will file a self-assessment tax return between now and the next Treasury questions, yet HMRC has shut down its hotline. How can my hon. Friend advise constituents on contacting HMRC?

Answer from Nigel Huddleston

We want to ensure people are served accurately and effectively through the most efficient channels. Two thirds of calls could be resolved online or via other channels like the app. People can still call in, but resources will be redeployed towards those most in need.

Partly answered

Not addressed: Did not provide specific advice on how to contact HMRC if digital methods are insufficient.

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Context

The Prime Minister instructed a £40 million VIP helicopter service to continue, despite plans for its closure.

Question

Mr Speaker. The Prime Minister instructed a £40 million VIP helicopter service that was earmarked for closure to continue providing him with flights. Will the Treasury publish a cost-benefit analysis of this decision?

Answer from Jeremy Hunt

I do not know the details but I assure you that the Treasury is determined to ensure every penny of public money is spent wisely.

Partly answered

Not addressed: Did not commit to publishing a cost-benefit analysis, only reaffirmed fiscal responsibility.

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Context

The electrification project was cancelled in 2015 due to cost concerns and is now expected to cost over £1 billion.

Question

The electrification of the north Wales main line has been a vital issue for many years. It was kiboshed by the Treasury in 2015 as not being value for money, but it's now expected to cost over £1 billion. Will the Chancellor guarantee that the project will definitely go ahead?

Answer from Laura Trott

I will write to the hon. Gentleman.

Not addressed: Did not address the question, only offered to write a response later.

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Context

People in rural areas face higher costs due to the 'rural premium', exacerbated by current high levels of food inflation.

Question

Mr Speaker, people in rural areas suffer more than their urban counterparts because of the rural premium they encounter daily. With food inflation at around 10%, people are facing a choice between heating and eating. What assessment has the Department made on this issue?

Answer from Laura Trott

Inflation is coming down, we have had cost of living payments and benefits will go up by 10.1% this year and more than expected inflation next year. We are doing all we can to support people.

Partly answered

Not addressed: Did not provide a specific assessment on the impact of inflation on rural food prices.

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Q10 Tim Loughton Con
Context

Questioning the Chancellor about the state and future plans for UK's gold reserves in a context of global uncertainty.

Question

May I ask the Chancellor to comment on the state of our gold reserves and whether he anticipates adding to them in 2024?

Answer from Jeremy Hunt

I will visit the gold reserves this week. I will see at first hand how important they are.

Partly answered

Not addressed: Did not provide specific details about the current state or plans for future additions to gold reserves.

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Q11 Rachael Maskell Labour (Co-op) York Central
Context

Council leaders are making tough decisions due to Government cuts, with York being particularly underfunded.

Question

Right now, council leaders are having to make very difficult decisions on cutting vital services not because of profligacy but because of Government cuts. What steps is the Chancellor taking to ensure local authorities like that in York, which is lowest-funded area, are adequately funded?

Answer from Laura Trott

We have put billions of pounds into local government this year to cover pressures. We recognise those pressures and propose an above-inflation rise for next year in provisional settlement.

Partly answered

Not addressed: Did not provide a specific commitment on ensuring adequate funding, only noted financial support measures.

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Q12 David Davis Con Goole and Pocklington
Context

A TV presenter won a case against HMRC on IR35 status but was subjected to repeated tribunals and court hearings, spending £200k in legal fees.

Question

Kaye Adams won her case against HMRC on IR35 status despite losing earlier. HMRC took her to four additional hearings over nine years, forcing her to spend £200k in legal fees while the tax bill was only £70k. There is no economic case for this practice. When will the Government review and ideally abolish IR35?

Answer from Nigel Huddleston

It is our duty to ensure everyone pays right tax regardless of wealth/status. We note tribunal decision, analyse outcome before considering next steps.

Partly answered

Not addressed: Did not commit to reviewing or abolishing IR35 rules, only noted analysis will be done after the tribunal decision.

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Q13 Dave Doogan SNP Angus and Perthshire Glens
Context

UK capital requirement regulations mandate higher capitalisation levels for longer-term lending compared to shorter-term loans. This impacts car manufacturers' financial services subsidiaries like Renault's RCI Financial Services, which operate on a seven-day notice period.

Question

UK capital requirement regulations mandate 50% level of capitalisation held by lenders for longer terms as opposed to 20% for shorter terms. Car manufacturer banks such as Renault's RCI Financial Services, underpin every franchise car dealer across these islands and operate on a seven-day notice period to terminate in order to minimise their capital requirements at 20%. The problem arises when a bank such as RCI maladministers a serious activity report, panics over its obligations under the regulations and terminates an award-winning Renault, Nissan and Dacia dealer such as Mackie Motors in my constituency with seven days' notice. Will the Chancellor or one of his Ministers meet me to discuss this crisis?

Answer from Bim Afolami

I thank the hon. Gentleman for his question. Indeed, I will meet him to discuss the matter to make sure that this regulation does not have the adverse effects that he has outlined.

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Context

Significant investments have been made recently by Nissan, Tata, EDF Masdar, and others in the UK's renewable energy sector.

Question

Since the Prime Minister's speech on net zero in September, Nissan has announced a £2 billion investment in Sunderland, which comes hot on the heels of Tata's £4 billion investment in batteries. EDF Masdar has announced an £11 billion investment in offshore wind in Dogger Bank. In his autumn statement, the Chancellor announced a tripling of tidal energy contracts for difference. We had 11 hydrogen projects announced last week. There are six companies bidding for small modular reactors. Is it not the case that, hot on the heels of yesterday's announcement of a £6 billion allocation of energy efficiency funding and the carbon border adjustment mechanism—

Answer from Jeremy Hunt

I thank my right hon. Friend for his question and for his campaigning on these issues. I just note that on electric vehicle manufacturing alone, the Society of Motor Manufacturers and Traders says that in the past year we have had more investment pledged for UK electric vehicles than in the previous seven years combined.

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Context

The life sciences sector contributes significantly to the Northern Irish economy, valued at £2.4 billion.

Question

The life sciences sector is worth £2.4 billion to the Northern Ireland economy. What steps have been taken, with counterparts in the Northern Ireland Assembly, to increase funding for employment within this worthy sector?

Answer from Gareth Davies

The hon. Gentleman is quite right that life sciences is one of the key growth industries for this country. I would be happy to meet him to discuss all the things we are doing for the sector, particularly in Northern Ireland.

Partly answered

Not addressed: specific steps to increase funding for employment within the sector

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Context

The war in Ukraine and denial across the Black sea are impacting the UK economy, necessitating protection of shipping lanes. The navy is currently too small.

Question

Our economy continues to be impacted by the war in Ukraine and denial across the Black sea, and we now must brace ourselves for further economic shocks as global shipping avoids the Red sea. Does the Minister agree that we should be protecting these shipping lanes? Our Navy is now too small by half to protect our maritime interests, so will he now look at investing in our surface fleet to protect our economy?

Answer from Jeremy Hunt

As my right hon. Friend knows, I have long believed in the importance of investing in our armed forces, but that ultimately depends on a strong economy that will pay for sustained investment, and that is what is happening under this Government.

Not addressed: investment in surface fleet

How: Depends On Strong Economy

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Q17 Richard Fuller Con North Bedfordshire
Context

Lord Harrington's review provides key recommendations for foreign direct investment in the UK.

Question

Will the Chancellor update the House on how he plans to move forward with some of the key recommendations from Lord Harrington's review into foreign direct investment in the UK?

Answer from Jeremy Hunt

I am happy to do that. In fact, I hosted a reception for Lord Harrington and the people responsible for that review last week. We will start by increasing the budget of the Office for Investment so that it can give a more bespoke service to potential overseas investors.

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Context

The Darlington Economic Campus has been promised jobs, but there are concerns about their delivery.

Question

We are all mindful of the need to control public finances and slim the civil service, but can my right hon. Friend reassure my constituents that the Darlington Economic Campus will receive the jobs that were promised, and will he give consideration to my proposal to name their permanent home of DEC William McMullen House, in recognition of the sacrifice William made for people of Darlington?

Answer from Laura Trott

My hon. Friend is a brilliant advocate for his constituency. I hear what he has to say and I am happy to meet him to talk about it.

Partly answered

Not addressed: reassurance on job promises

How: Happy To Meet

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Q19 Martin Vickers Con Brigg and Immingham
Context

There are ongoing negotiations regarding the future of Scunthorpe steelworks, threatening thousands of jobs.

Question

My right hon. Friend is well aware of the threat to thousands of jobs at Scunthorpe steelworks and many more in the supply chain that supports it, all of which would have a devastating effect on the economy of northern Lincolnshire. Can he and his colleagues in the Department for Business and Trade bring a speedy conclusion to the negotiations and lift the cloud over Scunthorpe?

Answer from Jeremy Hunt

I thank my hon. Friend for his campaigning on that issue and reassure him that we in the Treasury completely understand how vital steel is to the future of his area and to his constituents. We will continue to do everything we can to resolve the situation as quickly as possible.

Answered
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