Commons Sense

House of Commons · Ministers' Questions

Topical Questions

Tuesday 7 May 2024 · 19 questions

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

At a glance

Answered 5 Partly answered 7 Not answered 0

Key points

  • Debbie Abrahams (Oldham East and Saddleworth) (Labour) raised concerns about economic and health inequalities, to which the response cited improvements under the current government and referenced the phasing out of smoking.
  • John Penrose questioned the Chancellor's plan to abolish national insurance, prompting a response that emphasized the government's intention to abolish employees' national insurance and bring it down to zero.
  • Therese Coffey criticized the Prime Minister's economic plan, noting increased taxes and strained public services, to which the response accused the opposition of hypocrisy regarding national insurance cuts and tax dodging.

Topics (select to filter)

Questions & Answers

Q1 Debbie Abrahams Lab Oldham East and Saddleworth
Context

The shadow Chancellor asked about recent economic improvements, prompting the question on export data and growth forecasts.

Question

If he will make a statement on his departmental responsibilities. We should add to the Chancellor's statistics that we have the widest economic inequalities in Europe. Last week, Professor Sir Michael Marmot published new analysis showing significant increases in health inequalities—how long we live, and how long we live in good health—and that is particularly the case between the north and south-east England.

Answer from Jeremy Hunt

If the hon. Lady is concerned about economic inequalities, she will be horrified to know that they were even worse under the last Labour Government. They have been reduced under this Government. When it comes to health inequalities, it is this Government who are phasing out smoking for everyone under the age of 14—one of the biggest single things in a generation that will reduce health inequalities and mean that poorer people live longer.

Partly answered

Not addressed: Specific assessment on productivity loss due to health inequalities

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Q2 Debbie Abrahams Lab Oldham East and Saddleworth
Context

The question is about the government's carbon border adjustment mechanism and its compliance with free trade rules.

Question

The Government's plans for a carbon border adjustment mechanism will create a level playing field for British manufacturers facing un-green, high-carbon competition from abroad, but to comply with free trade rules, the CBAM must be an environmental measure, rather than revenue-raising trade protectionism. Will Ministers confirm that it will be fiscally neutral and that any net receipts will be returned to taxpayers, perhaps even by cutting fuel duty or green levies on energy bills?

Answer from Jeremy Hunt

I can confirm that we are very alive to cost of living pressures caused by fuel duty. In fact, we spent £6.4 billion freezing the duties on fuel, which will save the average motorist £50 over the coming year.

Partly answered

Not addressed: Fiscal neutrality and net receipts returned to taxpayers

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Context

The question is about the Chancellor's intention to abolish national insurance, with a focus on how it would be funded.

Question

At the Budget, the Chancellor set out his intention to abolish national insurance—a £46 billion annual commitment with no clear plan as to how it would be paid for. One way to do it would be to merge income tax and national insurance. Does the Chancellor agree with analysis from the House of Commons Library that shows that merging those two would increase income tax by 8p in the pound?

Answer from Jeremy Hunt

Which is why it is not our policy.

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Q4 Rachel Reeves Lab Leeds West and Pudsey
Context

The question is about the Chancellor's intention to abolish national insurance, with a focus on pensioners' tax burden.

Question

That is strange, because the day after the Budget, the Chancellor told Sky News that “you can end that unfairness of taxing work: you can merge income tax and national insurance.” The late Chancellor, Nigel Lawson—the Prime Minister's hero—warned that merging them would destroy the contributory principle and create many losers, especially among the elderly. In fact, a retired pensioner with an average occupational pension income of £198 a week would pay an additional £738 a year in tax. Is the reason that the Conservatives will not come clean not that they are planning to pick pensioners' pockets to fund the abolition of national insurance?

Answer from Jeremy Hunt

If the right hon. Lady listened to my comments carefully, and I do not always give her credit for that, she would know that our policy is to abolish employees' national insurance, and that means we want to bring it down to zero. If Labour's strategy is to win the election by frightening pensioners with fake news stories, I would just say that Britain deserves better.

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Q5 Rachel Reeves Lab Leeds West and Pudsey
Context

The question is about the taskforce on nature-related financial disclosures and its approach with the International Sustainability Standards Board.

Question

The taskforce on nature-related financial disclosures came out with its framework last year. I would like an update on where we are with the International Sustainability Standards Board approach, because just as it has been a huge success for companies and for UK plc to switch to the recommendations of the taskforce on climate-related financial disclosure, it is vital for our planet that we also start to have the TNFD framework as standard right across the board.

Answer from Bim Afolami

My right hon. Friend is right that this issue is critical. I am pleased that the ISSB recently announced its intention to commence a research project on a nature thematic standard, carefully considering the TNFD's recommendations. His Majesty's Government have established a formal mechanism to assess the ISSB standards for suitability for the UK to ensure that with a general sustainability standard, and more specifically with a climate sustainability standard, we are doing the right thing for the UK. The Government will publish an implementation update on sustainability disclosure requirements shortly to provide further information for industry—watch this space.

Answered
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Context

The question is about the government's tax policies and their impact on public services.

Question

We have all seen it: the richest Prime Minister in history has spent the weekend telling the public that his plan is working. Well, it is not working for people in Leeds East, whose taxes are going through the roof while our public services are on their knees. Would a better plan not be to go after the tax dodgers, rather than making ordinary people pay the price for this Government's abject failures?

Answer from Nigel Huddleston

I have to say that I find this hypocrisy astounding. First, if the Opposition objected to the national insurance cuts, why did the Leader of the Opposition say that he supported them? If the Opposition are so keen on abolishing tax dodging, why did they not support our Finance Bill, which had measures in place to do just that? They did not support it; they abstained on it.

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Context

The Bank of England has warned about potential fiscal losses from quantitative tightening.

Question

I am concerned that the Bank of England's quantitative easing is not part of its official policy targeting and could cost £179 billion in Treasury underwriting. This is affecting our fiscal situation. Will HM Government encourage the Bank to hold these bonds until maturity?

Answer from Bim Afolami

The Treasury has no intention to change how the asset purchase facility works with the Bank of England. However, all measures are kept under close review by the Chancellor.

Partly answered

Not addressed: Did not commit to holding bonds until maturity

How: Under Review

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Q8 Kerry McCarthy Lab Bristol East
Context

The Bank of England stated that remortgaging this year would cost families £240 more annually.

Question

Families are paying £240 more each year from remortgaging. The Government's economic policies have led to inflation at 11%. Does the Chancellor acknowledge the impact on homeowners if interest rates rise further?

Answer from Jeremy Hunt

The most damaging issue is high inflation; we have reduced it to 3.2% and expect it to fall further. Interest rates are also falling, but the shadow Chancellor suggests this is not significant.

Not addressed: Did not address impact on homeowners or remortgaging costs

How: Criticised Opposition

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Q9 David Mundell Con Dumfriesshire, Clydesdale and Tweeddale
Context

Businesses in rural constituencies are concerned about changes to tax arrangements.

Question

Furnished holiday lets play a crucial role in the local economy. The change in tax arrangements has caused concern among these businesses. Will the Chancellor reconsider this decision?

Answer from Nigel Huddleston

We recognise FHLs' importance but need a level playing field with other lettings. Tax incentives will continue, ensuring fairness between short-term and long-term lets.

Partly answered

Not addressed: Did not commit to revisiting decision

How: Level Playing Field

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Context

Drivers in rural areas face high fuel costs, with an increase of 10p since the start of the year.

Question

Rural drivers are heavily impacted by rising fuel costs. The average fill-up now costs £82.50 for a family car. What efforts will the Government make to help these people?

Answer from Gareth Davies

Fuel duty was frozen in the last fiscal event, saving the average driver £50.

Partly answered

Not addressed: Did not address other measures or future plans

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Context

The Chancellor allocated funds for a police violence reduction unit in Bournemouth.

Question

Thanking the Chancellor for allocating funds to a police violence reduction unit in my area, do I have his support that these units reduce crime by engaging with schools?

Answer from Jeremy Hunt

Violence reduction units are effective; they reduce crime, save lives. My right hon Friend was instrumental in making it a national policy.

Answered
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Q12 Andrew Gwynne Ind Gorton and Denton
Context

Campaigners for justice in the contaminated blood scandal have been encouraged by recent reporting.

Question

Time is of essence. Will the Chancellor indicate when the Government's promises will be fulfilled?

Answer from Jeremy Hunt

The Government are taking this seriously; it's only days before the report is published. We want to publish our response very quickly.

Answered
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Context

The FCA's equality, diversity and inclusion policies may have a negative impact on businesses.

Question

Does the Chancellor agree that recent overreach by the FCA regarding its EDI policies is counterproductive?

Answer from Bim Afolami

The FCA must focus on core functions; it should take into account industry representations.

Partly answered

Not addressed: Did not commit to reversing policies or actions

How: Industry Representations

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Q14 Jeff Smith Lab Manchester Withington
Context

Families in the constituency are struggling with increased shop costs and mortgages.

Question

The Chancellor recently claimed £100,000 a year is not a huge salary. Does he realise how out of touch that sounds to families earning much less?

Answer from Jeremy Hunt

The shadow Chancellor suggests falling inflation is not significant; I disagree.

Not addressed: Did not address out of touch comment or financial struggles

How: Criticised Opposition

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Context

Organon, a leading pharmaceutical company in Cramlington, employs 700 people.

Question

Will the Chancellor meet me to discuss the impact on pharmaceutical investment given Organon's role?

Answer from Gareth Davies

The industry is worth £14 billion; there has been a twelvefold increase in equity financing. I would be pleased to meet him.

Answered
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Q16 Wera Hobhouse Lib Dem Bath
Context

Rent costs have risen significantly by over £200 in Bath and north-east Somerset within the past three years, putting pressure on renters.

Question

Soaring rent costs are the biggest reason why my constituents in Bath are struggling. The average monthly rent in Bath and north-east Somerset has risen by more than £200 in the past three years. What support will the Government give to people who rent in the private sector?

Answer from Jeremy Hunt

That is why we need to build more houses. The hon. Lady will be reassured to know that we are building record numbers of houses—in fact, more in the last year than in any single year under the previous Labour Government.

Not addressed: The question about rent support was avoided; instead, the answer focused on housebuilding efforts.

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Context

High business rates are causing significant difficulties for small and medium-sized businesses in Romford, a large retail centre.

Question

I would like the Chancellor of the Exchequer to know that high business rates are having a devastating effect on small and medium-sized businesses in historic market towns, such as Romford, that are large retail centres. As the Government are business friendly, will he please look at ways to reduce the burden of business rates on local businesses in constituencies like mine?

Answer from Jeremy Hunt

May I say what a pleasure it is to be asked a question by my hon. Friend? I think this is the first time it has happened since he has been back. There is no more formidable a champion for Romford. He speaks about business rates, and we have indeed been doing what we can to bring them down at every fiscal event.

Partly answered

Not addressed: While acknowledging the issue of high business rates, the answer did not provide specific commitments or timelines for reducing their burden.

How: General Praise, Vague Reference

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Q18 Jim Shannon DUP Strangford
Context

Many pensioners are entitled to pension credit but do not access it; only 1.4 million people currently receive the benefit.

Question

What steps have been taken to support pensioners to know what benefits they are possibly entitled to? I understand that 1.4 million people access pension credit, but a great many more are entitled to it.

Answer from Laura Trott

The hon. Gentleman will know that this is an issue that is close to my heart, as a former Pensions Minister. We did a huge amount of work to increase the uptake of pension credit. I know that this matters a lot to Members, and work is being done in everyone's constituency, including the hon. Gentleman's.

Not addressed: The answer does not provide specific steps or commitments regarding increasing awareness about pension credit entitlements.

How: Personal Sentiment, Vague Reference

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Context

Certain savers may lose benefits and part of their investment under the terms of the lifetime ISA.

Question

The lifetime ISA is a positive instrument, but I understand that under its terms there are circumstances under which savers lose not only the benefits of the ISA but also part of their capital investment. That does not seem right; will the Minister please meet me to discuss it?

Answer from Bim Afolami

I am happy to meet my right hon. Friend to discuss the lifetime ISA, which is a fantastic product brought in by this Government to help young people to get on the housing ladder. I am happy to meet him to discuss ways in which we can make it more accessible for more people in more circumstances.

Answered
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