Campaign Reply: The House of Lords

The House of Lords has an important role in scrutinising and improving draft legislation. The Government is committed to ensuring that the House of Lords continues to fulfil its constitutional role as a revising and scrutinising chamber which respects the primacy of the House of Commons.

As a revising chamber, comprised of peers with a wide variety of experience, the House of Lords plays an important role in Parliament. Our political system has benefited from the expertise of peers who have been able to scrutinise and improve legislation.

Reforms to the House of Lords include allowing peers to retire and the expulsion of peers due to poor conduct. The Government was elected on a manifesto commitment to look at the broader aspects of our constitution, including the role of the House of Lords and the relationship between the Government, Parliament and the courts. This is something I will continue to follow closely.

I believe the current system strikes the right balance between ensuring our parliamentary democracy is representative and the best value for the country, as well as a system which welcomes the expertise and wisdom of peers from all areas of public life.

Campaign Reply: HS2

Thank you for contacting me about HS2.

The Government gave approval for HS2 in 2020 and construction on Phase One is now well underway. It is already supporting around 30,000 jobs and working with 3,000 businesses in its supply chain, 97 per cent of which are UK-based. There will be two branches: one to central Birmingham; and one to Handsacre, near Lichfield, meaning passengers will be able to travel on HS2 trains through to Manchester, Liverpool and Scotland, joining the West Coast Main Line for the rest of their journeys.

This phase of HS2 will have a significant impact on journey times from Birmingham to central London, with a reduction of half an hour, from around 80 minutes to 49 minutes. It will also reduce the journey time between London and Manchester by nearly half an hour (down to 100 minutes), facilitated through an upgrade of Handsacre Junction which will allow more trains to reach key destinations north of Birmingham. Additionally, it will have a transformative effect on rail capacity: nearly doubling capacity up to 250,000 seats per day between London and Birmingham.

As costs have escalated on the project it is only right that the Government considered the future phases of the project. After analysing the most up to date data the Prime Minister confirmed that the Government will not proceed with Phases 2a, 2b and HS2 East. Most recent estimates show that the line to Manchester might not be in operation until as late as 2041 – 18 years from now. Meanwhile, benefits analysis illustrates that the rising costs and changed travel patterns post-covid have had a significant impact on the benefits of the project. The original assessment suggested HS2 would return £2.30 in economic value for every £1 we invested, now that calculation suggests it is 80 pence for every £1 invested by the taxpayer.

The decision to not proceed with the latter stages of HS2 will provide a transformative opportunity for transport infrastructure. Every pound that is saved from not proceeding with further phases of the scheme will instead be reinvested in hundreds of transport projects across the country, totalling £36 billion of investment. Every penny of the £19.8 billion committed to the Northern leg of HS2 will be reinvested in the North; and every penny of the £9.6 billion committed to the Midlands leg will be reinvested in the Midlands; while the full £6.5 billion saved through a new approach at Euston will be distributed to every other region in the country.

This new funding will significantly benefit the areas that HS2 was originally intended to support through Network North. This includes £3 billion for a plan to connect the great Northern cities, such as Liverpool, Manchester, Leeds, Newcastle, Sheffield, Hull, and Bradford. Bradford will also receive £2 billion for a new station and railway improvements, which will result in a 30-minute journey to Manchester via Huddersfield. Additionally, there is £2.5 billion allocated for a new West Yorkshire mass transit system, improving connections around Leeds. This funding is in addition to the £12 billion allocated to enhance connectivity between Manchester and Liverpool.

These projects are indicative of a new approach, that the best way to improve transport across the country is not investing a third of the transport budget in one project but rather improving the everyday local transport people want and use the most. This is reflected in an analysis by The Rail Needs Assessment for the Midlands and the North by the National Infrastructure Commission, which found that packages focusing on regional travel could deliver £2.5-£4.5 billion more in productivity benefits than those focusing on links between regions. This represents a 20-25 per cent difference. Additionally, the funding will allow upgrades to local bus networks and roads, with a record investment of £8.3 billion to address the issue of potholes.  

Campaign Reply: Comprehensive and Progressive Trans-Pacific Partnership

The CPTPP delivers on a post-Brexit agenda for a modern, free-trading global Britain. The UK's membership represents the future of our global trade, partnering with Japan, Canada, Australia, Singapore and New Zealand, and emerging markets such as Mexico, Malaysia and Vietnam. It adds another like-minded partner and strong voice to this powerful alliance, taking the trade bloc’s GDP to £11 trillion. It gives UK businesses tariff-free access on over 99 per cent of goods to a market of around 500 million customers. The partnership will also provide new opportunities for tech, data and the services sector supporting UK businesses and jobs.

I welcome that the Business and Trade Secretary has now officially signed our Accession Protocol to the CPTPP. The next step in the accession process will be a legal review of the agreement text. This will be followed by formal signature of the agreement. After this, the Department for Business and Trade will commission the Trade and Agriculture Commission to prepare its advice on the impact of the agreement on plant and animal life. The agreement text will then be formally laid in Parliament.

The Government has taken the time to get this deal right, and would never allow the UK's high standards to be compromised. Negotiations ensured protections on healthcare, the environment, animal welfare and food. As a major economy and strong advocate of free trade, the UK will support the trade bloc to shape the high standards of global trade, particularly in the face of increased protectionism. I am assured that, as a signatory to the CPTPP, the UK would crucially not be required to cede control over its laws, border or money.

Campaign Reply: Supporting ambulances and cutting hospital wait times

I recognise that ambulance services are strained.

Recovering urgent and emergency care services is a key priority for the Government, and a plan is being implemented to reduce category two response times to an average of 30 minutes in 2024 and ensure the NHS makes further progress towards pre-pandemic waiting times in 2025.

The plan is being supported by the delivery of 800 new ambulances - including 100 specialist mental health vehicles – and 5,000 more hospital beds backed by £1 billion funding. In addition, the Government is aiming to ensure that Same Day Emergency Care Services are put in place across every hospital with a major emergency department.

Action is also being taken to reduce the time it takes for ambulance handovers once patients reach hospital. Waiting times for transferring ambulance patients to A&E will be reduced as facilities are upgraded and the NHS increases capacity by at least 7,000 general and acute beds. 

In addition, the Government is providing £250 million to enable the NHS to buy up beds in the community, so that thousands of patients can be safely discharged from hospital. This follows £500 million that was invested to support Trusts last year.

Campaign Reply: NHS Backlog

My colleague the Health Secretary has made clear that reducing waiting lists for NHS treatment is one of his key priorities in the role over the coming months.

In February 2022, the Government published a plan for recovering elective care, with a clear commitment to eliminate long waits for treatment. By 2025, no one should be waiting more than a year for elective care in the NHS, and waiting times for referral to treatment for cancer care should return to pre-pandemic levels. The NHS has met its target that no one should be waiting longer than two years for treatment, and significant progress was made in reducing the number of patients waiting 78 weeks or more by April 2023.

Community Diagnostic Centres (CDCs) - backed by £2.3 billion of funding - are making a significant impact in reducing the Covid-19 backlogs by delivering an extra 3.2 million vital tests, checks and scans to date. The Government is committed to rolling out 160 CDCs across England by 2025.

Over 50 new surgical hubs will open across England, providing at least 100 more operating theatres and over 1,000 beds. This will allow hundreds of thousands more patients to have quicker access to vital procedures and help tackle the care backlog.

The Chancellor made a number of spending commitments at the Autumn Statement in 2022, making available £8 billion of funding for the NHS and adult social care in England in 2024-25. As part of this, the Government is investing an additional £3.3 billion in 2023-24 and 2024-25 to support the NHS in England and improve elective performance.

The Government has published its Urgent and Emergency Care Plan alongside an investment of £1 billion to deliver 5,000 more hospital beds compared to the numbers originally planned for 2022-23, and to put over 800 more ambulances on the road. This will speed up discharge from hospitals, free up beds for patients needing urgent and emergency care and, ultimately, reduce pressures on hospitals.

NHS England will also deliver year-on-year improvements in A&E waiting times over 2023-24 and 2024-25, as well as improved access to general practice, so that everyone who needs an appointment with their GP practice can get one within two weeks, and those who need an urgent appointment can get one on the same day. Furthermore, a primary care recovery plan will be published shortly to support the vital front door to the NHS through primary care.

I am confident that the Government’s plan will make an important difference in reducing waiting times over the next few years.

Campaign Reply: "Will you commit to stop taxing of the State Pension?"

Thank you for contacting me about Income Tax and the State Pension.

Income earned through employment is taxable. In general, benefits that are designed to replace income are taxable, and the same applies to income from the State Pension. Income Tax is due on an individual’s total income above the Personal Allowance (PA), currently £12,570. Total income could include: the State Pension (the basic State Pension, the new State Pension, and the Additional State Pension); other taxable benefits; a private pension (workplace or personal); any other income, such as money from investments, property, or savings.

It is important to note that the PA is currently set at a level high enough to ensure that those pensioners whose sole income is the new State Pension or basic State Pension do not pay any Income Tax. The Government has nearly doubled the PA since 2010, meaning around 30 per cent of individuals do not pay any tax. The PA is high by international standards – it is one of the most generous personal tax allowances in the OECD and the highest in the G7.

Removing income tax from the State Pension would add complexity to the tax system, and those paying higher rates of tax would receive the greatest benefit. Lower-earning individuals with income below the higher rate threshold would benefit less, and those earning below the PA would not benefit at all.

The Government remains committed to ensuring that older people are able to live with the dignity and respect they deserve, and I therefore welcome that the Chancellor increased the State Pension by 10.1 per cent in April 2023 – the biggest-ever cash increase in the State Pension. Support available beyond the State Pension includes Winter Fuel Payments and free eye tests, NHS prescriptions and bus passes. Some may also qualify for means-tested benefits including Pension Credit and Housing Benefit.

The Government keeps all aspects of the tax system under review, and any decisions on future changes will be taken by the Chancellor in the context of the wider public finances.

Campaign Reply: Energy Prices and Net Zero

The Net Zero Strategy sets out the Government’s long-term plan to cut emissions by 2050, including how a secure, home-grown energy sector will end the UK's dependency on foreign gas, and will protect consumers and businesses from volatile price hikes.

The wholesale price of gas and energy has increased in the UK and Europe due to various factors, including an increase in demand following the end of lockdowns in various countries and in light of Russia’s unjustified invasion of Ukraine. High global gas prices are hiking up bills, and the Government has been clear that it’s right we move away from dependence on Russian gas and increase our self-reliance in our energy security.

Learning from the mistakes of the past, the Government is taking action to accelerate domestic energy supply, increase our energy resilience and to make the UK an energy exporter by 2040.

As outlined in the Energy Security Strategy, Britain's focus will be to accelerate the deployment of wind, nuclear, solar and hydrogen power, while supporting the production of domestic North Sea oil and gas in the nearer term - which could see 95 per cent of UK electricity by 2030 being low carbon. These measures will be central to weaning Britain off expensive fossil fuels, which are subject to uncontrollable and volatile prices, and will provide both cleaner and more affordable energy, and energy security.

While the UK is driving down demand for fossil fuels on the path to net zero, it is important to recognise that there will continue to be ongoing demand for oil and gas while we transition to low carbon energy. I am reassured, however, that producing gas in the UK has a lower carbon footprint than importing it from abroad, and that is why I welcome the continuation of support for oil and gas in the North Sea.

I am encouraged that in the recent revisions to the net zero strategy, the Government decided to go even further for households and investors by embracing new green industries. This includes: providing additional funding for Sizewell C and support for small modular nuclear reactors; promoting both offshore and onshore wind; and new funding for green technologies. This should contribute to increasing our domestic energy supply, while also forging a credible path to net zero that brings people with us.

Current inflation is being driven by rising energy costs, which in turn has put pressures on living costs. The Government has taken significant steps to help the lowest-income households through these extraordinary times: reducing the Universal Credit taper rate; increasing the National Living Wage; freezing fuel duty for the twelfth consecutive year; introducing an Energy Price Guarantee and extended the Household Support Fund by £1 billion, on top of the existing £1.5 billion of support.

More broadly, Ofgem is working to stabilise the market and to diversify our long-term sources of energy to protect customers from similar future price shocks. In addition, I welcome that consumer bills will be lower this decade than they otherwise would be as a result of the measures the Government has taken.

We need to protect ourselves from price spikes in the future by accelerating our move towards cleaner, cheaper, home-grown energy, and I am glad to see the Government is delivering on this.