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Oral Answers to Questions
(1 year ago)
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Martin Vickers (Cleethorpes) (Con)
The Secretary of State for Business and Trade (Kemi Badenoch)
The CPTPP is one of the major benefits of Brexit. It has the potential to deliver billions of pounds to our economy and benefits small businesses across the UK. The deal delivers lower tariffs, reduced red tape, and cutting-edge digital provisions that directly support small businesses to trade more. It has an SME chapter committing all countries to make the agreement accessible for SMEs. I know that will be welcome news for my hon. Friend ahead of Small Business Saturday.
Martin Vickers
I thank the Secretary of State for her answer. It is great news that we are progressing membership of CPTPP and I welcome what she says about SMEs. Many SMEs will be new to exporting and need expert advice. Will she outline what particular plans there are to help small businesses?
Kemi Badenoch
We will ensure that our support offer for SMEs will help firms build their capability to import and export under our free trade agreements. We have started preparing for CPTPP entering into force. We will be producing written guidance on gov.uk to ensure businesses are equipped with the knowledge they need to access those opportunities. Specifically, our export support service, network of international trade advisers, export academy, and in-market support services will also help businesses to access opportunities in CPTPP markets.
Jim Shannon (Strangford) (DUP)
In my constituency of Strangford SMEs are an integral, core part of creating jobs, putting wages into pockets, and ensuring that people can progress and learn more trades. We want to be part of the United Kingdom of Great Britain and Northern Ireland pushing for the CPTPP. What can the Secretary of State do to help me and my businesses in Strangford to be a part of that and to move forward?
Kemi Badenoch
The hon. Gentleman will know that we had the Northern Ireland investment summit a few months ago. We met lots of businesses and investors who talked about how they want to take advantage of these markets. In fact, we have had one of the first big investors into a factory in Belfast. What I can do is help him with some of the materials we have around the export academy and the export support service, which he can hand out to businesses in his constituency who want to find out more.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
For UK businesses to benefit from agreements like the CPTPP, we must have a clear plan to boost small business exports. Labour has a plan to remove export barriers, with clear information and support. That is in stark contrast to the Government’s approach, which has been a catalogue of failures, including the recent fiasco with the Government’s export website, which was so deficient that firms were forced to seek essential information from foreign Government websites. What immediate steps will the Department take to provide some stability and ensure UK businesses can excel in exporting?
Kemi Badenoch
I think the hon. Gentleman might be talking about something that happened three years ago, which we fixed. He talks about the export support service website. Businesses have actually been praising it. [Interruption.] Businesses have been praising it; they very much have been. We have an expert toolkit, which has been developed by business and trade officials. What is interesting is that all he says is that Labour has a plan to remove export barriers. We have actually been removing export barriers. Labour talks about a plan with no detail. No one is taking it seriously at all. The Conservative party is the party that represents business in the House of Commons.
Deidre Brock (Edinburgh North and Leith) (SNP)
The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
We remain committed to reform. Significant reforms have already been delivered to the Financial Reporting Council to strengthen its capabilities and drive up audit quality.
Deidre Brock
The Institute of Chartered Accountants of Scotland has branded the Government’s decision to leave the audit and governance reform Bill out of the King’s Speech as a lost opportunity and a huge blow to the interests of UK businesses and the public. The Government have been promising the Bill since 2021. Will they reconsider that backward step and make the UK’s corporate regulatory framework fit for purpose in the 21st century?
Kevin Hollinrake
Time and again, Opposition parties seek to wrap businesses up in red tape, whereas Conservatives are keen to cut red tape. Consultation with businesses revealed concerns about imposing additional reporting requirements, while the Government are looking to simplify and streamline existing requirements.
Mark Pawsey (Rugby) (Con)
This week, the Business and Trade Committee took evidence from Wilko. Business collapses such as that of Wilko, Carillion, Thomas Cook and Patisserie Valerie have been a consequence of failures in the audit process, costing people their jobs and hurting investors and suppliers. Audit reform was recommended by the then Business, Energy and Industrial Strategy Committee in 2019, and the Government offered to bring forward a draft Bill. I know the Minister wants to reduce red tape, but does he agree that some form of action is now pretty urgent?
Kevin Hollinrake
I was delighted to give the Select Committee evidence on Wilko. The administration report on Wilko is continuing and clearly we need to see the findings, but investigations so far have not shown that director misconduct played an instrumental part in Wilko’s failure, although I think it is clear to all concerned that there were failures in management that led to the company’s demise.
Richard Thomson (Gordon) (SNP)
How strange the change from minor to major in that response. Financial transparency and accountability are essential components of economic stability. For three years now, the Government have been promising legislation and improved checks on company finances, but they have repeatedly failed to deliver. How can the Minister justify leaving the audit and governance Bill out of the King’s Speech, when it is supported by businesses, regulators and auditors alike?
Kevin Hollinrake
We work very closely with the Financial Reporting Council. No one can deny that the FRC has changed its approach completely and is now a much more effective regulator. Sir Jon Thompson did a fantastic job when he was there, and the current chief executive, Richard Moriarty, and chair, Jan du Plessis, are following his work. We are confident that the FRC can make sure that the UK’s corporate regime works effectively, without tying businesses up in red tape.
Dame Nia Griffith (Llanelli) (Lab)
Mick Whitley (Birkenhead) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
The Government consulted on a draft statutory code of practice on fire and rehire earlier this year. The Government response and the final version of the code will be published in spring next year. The code sets out employers’ responsibilities when seeking to change contractual terms and conditions of employment, and is designed to ensure that dismissal and re-engagement is used only as the last resort.
Dame Nia Griffith
The very fact that only last week P&O Cruises felt able to say it would impose new contractual terms on workers through fire and rehire tactics shows that some employers still feel that they can use these tactics with impunity, in spite of the Government’s promise to clamp down on them. I thank the Minister for his answer, but is there any way he could bring in the legislation more urgently, so that we can protect our workers properly?
Kevin Hollinrake
I agree with the sentiment behind the hon. Lady’s question in terms of bringing legislation forward as quickly as possible. Of course, we have to get this right. I have to say that P&O was not a fire and rehire situation; it was a fire-only situation, which was strongly condemned by this Government and by many other stakeholders, and a civil investigation is ongoing into the matters surrounding that case. But yes, the hon. Lady is right, and we are keen to get the new statutory code of practice in place as soon as possible. We expect that to be in spring next year, and once it is in force, the employment tribunal can increase employees’ compensation by up to 25% when an employer fails unreasonably to comply with the code.
Mick Whitley
Last week, concerns were raised that the Carnival group was making provision to fire and rehire hundreds of staff working on P&O Cruises and Cunard Line, reviving memories of last year, when P&O Ferries sacked over 800 of its employees and replaced them with agency labour, while the Government sat back and let it happen. Does the Minister agree that the only way to provide workers with the security they deserve is by legislating to outlaw fire and rehire tactics once and for all? If not, it is time the Government came clean with the British public and admitted that they will always side with bad bosses.
Kevin Hollinrake
That is not the case at all. We take these matters very seriously, but we do not think that completely banning fire and rehire is the right thing to do because there are some situations in which companies need to restructure quickly. We think that employees’ proper consultation rights should be observed. Where they are not observed and where an employer does not follow the statutory code of practice, employment tribunals can impose a significant uplift on redundancy payments. We think that is the best way to deal with this, by striking a balance between companies and their workers.
Justin Madders (Ellesmere Port and Neston) (Lab)
Fire and rehire is rife in this country. Research published by the Chartered Institute of Personnel and Development found that, between March 2020 and July 2021, 43,000 employers changed their employees’ contracts through fire and rehire techniques. The Government promised in March 2022 that they would take action following the P&O scandal, and we now learn that it will be a full two years since that time before anything actually changes. Given the propensity for using fire and rehire tactics, can the Minister tell us how many employees he estimates will have had their contract changed through fire and rehire in that two-year period?
Kevin Hollinrake
I do not have that number to hand. We want to strike a balance between employers and their workforces. We condemn what P&O did. We need to bring in new measures on fire and rehire, and we have committed to do that. A consultation is clearly needed to make sure those provisions are fair on both businesses and workers. That is what we are doing right now, and we intend to bring those provisions before the House next spring.
Alistair Strathern (Mid Bedfordshire) (Lab)
Dr Rupa Huq (Ealing Central and Acton) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
In addition to small business rate relief, under which businesses with a rateable value of less than £12,000 pay no business rates whatsoever, in his autumn statement the Chancellor announced a further business rate support package, worth £4.3 billion over the next five years, to support small businesses and the high street.
Alistair Strathern
My constituents in Flitwick have been dismayed over the past few years as their high street has been gradually hollowed out, losing much-loved businesses and, recently, both their post office and banking facilities. Sadly, that is far too familiar for people in towns and villages across my constituency, where businesses are weighed down by high cost pressures and a business rate system that no longer seems fit for purpose or fair. When will the Government commit to bringing forward the comprehensive business rates reform that my businesses are crying out for, so that we can get back to revitalised, much-loved high streets?
Kevin Hollinrake
I thank the hon. Gentleman for his question and welcome him to his place in the House.
Of course, we are very concerned about the high street. The pressures on the high street are largely caused by changing consumer habits, but the Government have stepped in to ease pressures, such as through the £20 billion energy bill support scheme and the £17 billion business rate package.
The hon. Gentleman talks about completely scrapping the current business rate system, which Labour has committed to do, but it is incumbent on Labour to set out how it will replace the £25 billion that business rates currently add to the Exchequer. What is the solution? It is not right for him or others simply to say they will scrap that £25 billion without setting out how they will replace it.
Dr Huq
The vanishing of Debenhams, Wilko and Paperchase has left huge holes in our town centres— I have lost a Wilko in both Ealing and Acton. Analysis shows that the incentivisation of out-of-town retail is the culprit. Labour has a five-point plan to revive our high streets, putting communities first. What are the Government doing about all this?
Kevin Hollinrake
I do not accept that, although out- of-town shopping can put pressure on the high street. Local authorities have to be very careful when they give planning consent for out-of-town shopping centres that could put pressure on the high street. That is clearly an important part of the planning process, but it is not the responsibility of central Government, of course. I would be interested to see that five-point plan, but if it includes the scrapping of business rates, which raise £25 billion, I ask the Labour Front Bench team once again—I have yet to receive an answer—where is that money coming from?
Alec Shelbrooke (Elmet and Rothwell) (Con)
Labour-run Leeds City Council has decided that it wants to bring parking charges to my market town of Wetherby—it currently has no parking charges. Does my hon. Friend agree that the investments we are making are all very well, but if local authorities make it harder for shoppers by increasing their costs, that will choke off the high street rather than help it?
Kevin Hollinrake
I thank my right hon. Friend for his question and he is absolutely right to say that some local authorities see parking charges as potential revenue raisers, but this is in effect a tax on business. Local authorities can, of course, make charges where appropriate, but they should only cover the cost of maintaining those car parks; they should not be a punitive tax on businesses.
Sir Desmond Swayne (New Forest West) (Con)
There are streets in the west end of this city, important to our economy, that would certainly benefit from the ability of tourists to reclaim VAT, aren’t there?
Kevin Hollinrake
My right hon. Friend raises an important point that this Department has looked at carefully. We are concerned about the impact of the withdrawal of that tax concession on businesses, not just for these businesses themselves, but for the other businesses that rely on foreign visitors—I am talking about hoteliers, restauranteurs and so on. We are keen to look at this matter. The Chancellor committed in his autumn statement to review the evidence to see what impact this was having. We will look at that with great interest and make our views known strongly to the Exchequer.
Ashley Dalton (West Lancashire) (Lab)
Mohammad Yasin (Bedford) (Lab)
The Minister of State, Department for Business and Trade (Greg Hands)
The Government’s export support for SMEs includes the export support service; the export academy; more than 400 export champions; our network of nearly 200 trade advisers; and support provided around the world through the international market service. Just last week, my noble Friend the Minister with responsibility for exports announced that UK Export Finance is introducing more flexible fast-track financing for SMEs, making it easier than ever for UK firms to sell into international markets.
Ashley Dalton
Last week, I welcomed the Duke of Gloucester to my constituency to award local SME GaraDry the King’s award for enterprise for its innovation in international trade. How can such businesses have confidence in the Government’s support for SMEs when Britain’s export growth is among the worst of the G7 economies and is forecast to be falling?
Greg Hands
I certainly welcome the royal visit that the hon. Lady had in her constituency; it is always fantastic to see that support, particularly for exporters. However, I think she is a bit off on the data. When we look at export data, we see that we had £877 billion-worth of exports in the 12 months to the end of September 2023. We are heading towards the £1 trillion export target, and that figure is up by almost £200 billion—or 29%—on the figure from five years ago, which was before Brexit.
Mohammad Yasin
In 2021, the Government launched a rebranded trade show programme pilot to great fanfare, but between November 2021 and March 2022 only two businesses in the UK were funded under the programme. We now hear that the scheme has been shelved. Will the Minister explain what has happened to that initiative, which has launched a number of household British fashion brands abroad and which served as a vital gateway under the last Labour Government for SMEs to access new markets?
Greg Hands
The last Labour Government were, of course, in office rather a long time ago. It is not always incumbent on successive Governments more than a decade later to keep previous Labour Government schemes going. The scheme to which the hon. Gentleman refers was a pilot, which did not yield the successes that we might have hoped. However, I will take no criticism from him and the Labour party for the support we are giving to exporters. We are spending £200 million over this spending review period to support SMEs to grow and succeed internationally, and we have a record to be commended.
Theo Clarke (Stafford) (Con)
As the Prime Minister’s trade envoy to Kenya, may I welcome the fact that this week the Government held the successful global investment summit and are taking steps to help British businesses to export? I recently returned from Nairobi, where I visited some of the UK’s flagship investments, including in infrastructure and clean energy. Will the Minister provide an update on the Africa investment summit next year? I also ask that the UK continues to bang the drum for British businesses to export to Kenya, the gateway to east Africa.
Greg Hands
First, let me commend my hon. Friend for winning “Speech of the Year” at last night’s The Spectator parliamentary awards. She has continued her fine form today. She does an amazing job for the country as the Prime Minister’s trade envoy to Kenya, and her recent visit in September was a big success, particularly on the infrastructure side of things. She has already referred to railways and other infrastructure. She mentioned the UK-Africa investment summit, which will take place in London next year and will further our engagement with Kenya and other African countries, fostering modern partnerships in trade and investment in areas such as resilient infrastructure, clean technologies and renewable energy.
Alun Cairns (Vale of Glamorgan) (Con)
I welcome my right hon. Friend back to his post. I pay tribute to him and to the Secretary of State for the international trade deals that they have struck during their period in office. The UK has strategic relationships with a number of Gulf nations. What progress is being made on a free trade agreement with the Gulf Cooperation Council? If it is more challenging to strike a deal across all nations, what bilateral trade agreements can we explore in order to exploit the opportunity for those nations to invest significantly in the UK?
Greg Hands
I am excited by the prospect of the deal with the Gulf Cooperation Council, with which the Secretary of State is very much engaged, and I am looking forward to being re-engaged with it. It is a huge opportunity for us, as the latest figures show that total trade between the UK and the Gulf is worth more than £60 billion. We are looking forward to moving the negotiation forward and getting a very good deal for the UK.
Gareth Thomas (Harrow West) (Lab/Co-op)
I welcome the Minister back to the Department for Business and Trade, and I look forward to helping him hopefully to do better this time around. According to the International Monetary Fund, over the past decade British food and drink exports, including from SMEs, rose by just 3%, which was the lowest growth of any G7 country. The US, Canada, Italy and Japan all saw their exports grow by between 30% and 95%. Government Ministers will not negotiate a veterinary agreement with the EU, which would help, they have cut funding for trade missions, and now the Secretary of State has cut funding to go to trade shows too. Why will Ministers not share our ambitions for Britain to have the fastest export growth rate of any G7 country?
Greg Hands
Of course, the hon. Gentleman and I have been around in these jobs for a while. He was possibly the last Trade Minister under the last Labour Government, so I will not be taking any lectures from him on how to improve UK exports. We have been financing dozens of global trade missions and we are spending £200 million over the spending review period on exports in general. On the export figures, he neglected to mention services exports, which totalled £463 billion in the 12 months to September 2023. That is a huge increase of 42% on our performance in 2018, before Brexit.
Daniel Zeichner (Cambridge) (Lab)
The Minister for Industry and Economic Security (Ms Nusrat Ghani)
The Government are clear that violent and abusive behaviour towards any public-facing worker is never acceptable, and we recognise the implications that such incidents can have on businesses as well as victims. On 23 October, the Government launched a retail crime action plan, which includes a commitment to prioritise police attendance at the scene where violence has been used towards shop staff, where an offender has been detained by store security or where evidence needs to be secured by police personnel. The Government also launched Project Pegasus, a unique private-public partnership that will radically improve the way retailers are able to share intelligence with the police.
Daniel Zeichner
In recent weeks, I, like many colleagues, have visited shops in my constituency as part of USDAW’s—the Union of Shop, Distributive and Allied Workers—Freedom from Fear campaign. I have heard from staff about the daily levels of verbal and sometimes physical abuse they face, and the huge losses from theft. Will the Minister say more about what the Government are doing to stem that tide of lawlessness, particularly for independent retailers who may not be part of the Pegasus Project? Will she also say how much is being lost to theft, because that costs all of us as customers, as well as costing retailers?
Ms Ghani
The hon. Gentleman makes an important point. This is not a victimless crime; it impacts shops, workers and customers. Credit is due to the hon. Gentleman for visiting the shops in his constituency. Overall crime is down by 54% since 2010, and down by 10% since last year. However, he is right that shoplifting is up, which is why the action plan is so important. The action plan works for our high streets because it is about ensuring that the police are determined to collect evidence and to go after repeat offenders and organised gangs.
Project Pegasus is key because it is a public-private partnership. We have created an extra offence, with a longer sentence, for those who are violent towards a shop worker. With those extra programmes of work and evidence collection, more people will be convicted, so those who are involved in crime against shops will spend some time in prison.
John Penrose (Weston-super-Mare) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
The CMA has a primary statutory duty to promote competition both inside and outside the UK for the benefit of consumers, which provides the CMA with a clear, strong focus on delivering for consumers. In our recent steer to the CMA, we did point out how very important it is that it focuses also on economic growth.
John Penrose
Regulators such as the CMA have huge powers, so Parliament must give clear instructions about how those powers should and should not be used. Does the Minister agree that the CMA’s instruction is a model of the kind of clear and strong legal duty that leaves no doubt in regulators’ minds about the job that Parliament has asked them to do. Will he join me in pushing for equally clear and focused duties for other economic regulators where, sadly, the same cannot currently be said?
Kevin Hollinrake
I thank my hon. Friend for his question and for his very important work in this area. I know that reducing the regulatory burden is a cause that is very close to his heart, and to the hearts of those in the Chamber today who supported his amendment in the recent Digital Markets, Competition and Consumers Bill. That view is also shared by myself and by the Secretary of State. We are very keen to make sure that, as well as ensuring that sectors are well regulated, our economic regulators focus on competition and economic growth.
Andrew Bridgen (North West Leicestershire) (Reclaim)
I disagree. The Competition and Markets Authority is not only the dog that does not bark, but the dog that does not bite. We see multinational corporations and investment funds of such a size that they have more power than a sovereign Government. When will the Government give the CMA the powers and authority needed to tackle the corporate monopolies and cartels that have so much sway over our lives?
Kevin Hollinrake
The hon. Member raises an important matter. That is why the Government are legislating in this space, through the Digital Markets, Competition and Consumers Bill, which gives the CMA huge new powers, particularly over some of our largest online platforms—platforms that have what we describe as strategic market status. This is world-leading legislation that will tackle many of the examples of detriment that he will be aware of and that he raises in his question today.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
The Government protect the post office branch network by setting access criteria and minimum service levels to be provided by branches across the country. More post offices have opened this year than have closed. The network is as large today as it has been for five years, with around 11,700 branches open, above the 11,500 target that we set for the Post Office.
Florence Eshalomi
The Minister mentioned that more post offices are opening. Actually, they are closing. The Clapham Common post office in my Vauxhall constituency has been earmarked for closure and there are no current plans to replace it. I am fighting this closure, along with my hon. Friend the Member for Streatham (Bell Ribeiro-Addy) and local ward councillors in the Communications Workers Union. This is a pattern that we are seeing across the country. It has been identified that 260 postal shopfronts have closed across the country in the past 10 years. With those closures, we are seeing elderly and vulnerable people—people who need their post offices on the high street—having to travel further. Will the Minister tell me what more he and the Government are doing to protect these vital services?
Kevin Hollinrake
The hon. Member is absolutely right to raise this issue. The Post Office has launched a public consultation regarding the Clapham Common post office. The Post Office maintains that locals will continue to have good access to services. There is a post office within a mile of the Clapham Road branch, and three further branches within two miles. Nevertheless, the Government support the post office network with a significant amount of financial support—£2.5 billion over the past 10 years—so we do continue to support post offices. We know how important they are to constituents and other colleagues in this House. I am very happy to meet her to discuss this particular case.
John McDonnell (Hayes and Harlington) (Lab)
The Minister of State, Department for Business and Trade (Greg Hands)
We are working at pace to ratify the CPTPP, which we hope to bring into force next year. We are the first European country to join the CPTPP, and I know how powerful it will be for British businesses and consumers, which is why this Government are progressing legislation as quickly as possible, with Second Reading of the Bill having taken place in the other place on 21 November. We are already playing our part as the second largest economy in the agreement. The Secretary of State met other CPTPP Ministers two weeks ago in San Francisco to discuss the blossoming future of the agreement.
John McDonnell
Across the House, over a period of time, Members working with organisations such as the Trade Justice Movement have expressed concern about the inclusion of investor-state dispute settlement procedures within treaties, because they restrict our own country’s ability to regulate. I raised that issue in September and suggested that, as the Government have done with Australia and New Zealand, we agree in a separate letter that the settlement procedure will not be included in this treaty. I was then told—rather curtly—that it was too late. Actually, it is not too late. There is the potential to do a side letter, as we have with other countries, to exclude an investor-state dispute settlement procedure. In the light of the Government’s negotiating remit for the free trade agreement with Canada, the Government are specifically seeking to exclude that procedure. I wonder whether the Government might think again.
Greg Hands
It is good to be sparring with the right hon. Gentleman again from the Dispatch Box—we have both had a few ups and downs since we last went head to head. CPTPP does not compromise the UK’s right to regulate at all; it expressly preserves the rights of states to regulate proportionately, fairly and in the public interest. It is worth reminding the House that the UK has never lost an ISDS case. Such procedures actually help to protect UK investments abroad. British investments in Canada totalled £40.6 billion in 2020-21, which will be covered for the first time by these protections. As I say, if we cannot trust Canada in international affairs, who can we trust? I assure the right hon. Gentleman that the deal cannot be ratified until the legislation has been approved by Parliament and the deal has completed the Constitutional Reform and Governance Act process.
Andrew Selous (South West Bedfordshire) (Con)
The Minister of State, Department for Business and Trade (Greg Hands)
The Government’s published export strategy focuses on addressing the challenges that UK businesses face when exporting. The Government continue to promote exporting, and to support companies through our network of international trade advisers, sector specialists, and the export support service. All our services can be accessed on great.gov.uk.
Andrew Selous
In my constituency I have companies such as EyeOL, Lindal Valve, Peli Biothermal, Friction Marketing, Signature Flatbreads and 198 smaller businesses, all of which export globally. The smaller businesses export through Amazon. That is fantastic, as there is evidence that businesses that export can pay their staff more, but what is the best way to get businesses that have not yet realised that the world is their marketplace exporting not just to Europe but around the whole world?
Greg Hands
I commend my hon. Friend for being a long-standing champion of his constituency exporters. As the Prime Minister’s trade envoy to South Africa and Mauritius, he knows only too well the importance of exports. The Government’s export strategy is clear. We have a clear programme to assist small and medium-sized enterprises, particularly first-time exporters. All of our services can be accessed via great.gov.uk, and we have a network of international trade advisers locally for Bedfordshire who are able to help as well.
Priti Patel (Witham) (Con)
The Secretary of State for Business and Trade (Kemi Badenoch)
As a fellow Essex MP, I can assure my right hon. Friend that this matter is close to my heart. Businesses can access support through great.gov.uk, including our self-serve digital offer, the export support service, international trade advisers and UK Export Finance. My Department is helping Essex companies such as Icon LifeSaver in Colchester to secure potential sales of over £10 million in the US, Colombia and Estonia. Kestrel Liner Agencies, which is headquartered in my constituency and last year received its third Queen’s Award for international trade, has also benefited. We are focused on priority trade barriers in particular, which could boost UK exports by around £20 billion over five years.
Priti Patel
The Secretary of State will know inside out what the wonderful county of Essex has to offer when it comes to business exports. We have companies such as Wilkin & Sons and Wicks Manor, and many other producers who will sell the produce that households across the country will enjoy this Christmas, at home and abroad. Will the Secretary of State highlight how she is working across Government with other Departments to reduce the barriers to export that cover, for example, produce, manufacturing costs, energy costs, and even the processing of animals?
Kemi Badenoch
Removing barriers to trade is one of this Government’s top priorities. My right hon. Friend will know many of the things that the Government have been doing, including subsidising energy bills, because we recognise the difficulties that manufacturers and processing plants face. At the moment I am particularly focused on resolving trade barriers. We have resolved 178 trade barriers worth more than £6.5 billion to businesses, including those in Essex, over the next five years. Food producers in her constituency specifically will be pleased to know that just last month, when I was in Japan for the G7, we resolved a barrier restricting exports of cooked poultry from the UK to Japan, which I think will provide a festive boost to UK exporters worth an estimated £10 million over five years.
Joanna Cherry (Edinburgh South West) (SNP)
Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)
The Secretary of State for Business and Trade (Kemi Badenoch)
Since the barbaric terrorist acts by Hamas against Israel on 7 October and the subsequent conflict in the region, the Government have been monitoring the situation very closely. The UK supports Israel’s legitimate right to defend itself and take action against terrorism, provided that that is within the bounds of international humanitarian law. Export licences are kept under careful and continual review as standard, and we are able to amend licences or refuse new licence applications if they are inconsistent with the strategic export licensing criteria.
Joanna Cherry
No one is suggesting that Israel does not have the right to defend itself—but, as the Secretary of State says and we agree, within the bounds of international law. The mass killing of civilians in Gaza should concern us all. Without resorting to platitudes about the relative toughness of the UK’s arms export controls, could she please identify which arms export licences are currently in force, including open licences for end use by the Israeli defence and security forces, and provide details of them to the House?
Kemi Badenoch
I do not believe that is something that I am able to do or should do. I can tell the hon. and learned Lady that last year we granted 114 standard individual export licences for military goods valued at £42 million to Israel. If there is a specific issue that she would like to highlight, we are prepared to look at it, but she will know that security and defence exports are not necessarily best discussed on the Floor of the House or in public, for obvious reasons.
Steven Bonnar
A state that supplies military equipment that is used in the commission of violations of international humanitarian law is at risk of complicity in a humanitarian catastrophe. In continuing with those licences and supplying UK arms to Israel, what assessment does the Secretary of State make of the potential for UK Government complicity, if Israel is found to have committed war crimes in Gaza by the ongoing International Criminal Court investigation?
Kemi Badenoch
I am quite surprised that there is not a word of condemnation, and the implication that the UK is complicit is really not the sort of thing we would expect from a British Member of Parliament in this House. I completely disagree with the premise of the hon. Gentleman’s question. The Government take our defence export responsibilities extremely seriously and operate some of the most robust and transparent export controls in the world.
Mr David Davis (Haltemprice and Howden) (Con)
The Minister of State, Department for Business and Trade (Greg Hands)
I am pleased to confirm that advanced talks with India are ongoing. We are in round 13, with discussions currently focused on goods, market access, services and investment. We remain clear that we will not sign until we have a free trade agreement that fully benefits the UK people and economy. We are focused on the deal, not the date.
Mr Davis
Total trade in goods and services between the UK and India was £36.3 billion in the year to March 2023. An FTA with the fifth-largest economy in the world, and one of the fastest-growing, would be a massive boost to the UK economy and put UK businesses at the front of the queue to supply India’s growing middle class, which is expected to be a quarter of a billion consumers by 2050. This is an important exploitation of Brexit, so will the Minister do all he can to bring this deal over the line as soon as possible for Britain?
Greg Hands
My right hon. Friend of course has a lot of experience in complex negotiations and I can say that we, like him, will not be satisfied until we have the right deal. He is right that a deal with India would be a big step forward in the UK’s post-Brexit strategy to refocus UK trade on the Indo-Pacific region, which represents one third of global GDP. My negotiators and I continue to work at pace and we will negotiate until we have secured the right deal. I warmly welcome his interest in doing more trade with India.
Tonia Antoniazzi (Gower) (Lab)
The Minister for Industry and Economic Security (Ms Nusrat Ghani)
The Government recognise the vital role of the steel sector, and are working with the sector to achieve a sustainable future. We have announced £500 million of support towards a joint £1.25 billion investment with Tata Steel to achieve the transformation of Port Talbot, and we are also in talks with British Steel. We have provided the steel sector with £730 million in energy costs relief since 2013, and announced the British industry supercharger—decisive measures to reduce energy costs for energy-intensive industries.
Tonia Antoniazzi
In communities across the country—particularly in Wales through Port Talbot—steel has created high-paying, productive jobs for generations, but we are the only G7 country with a steel industry in decline. Thousands of jobs are being lost. What we need is a long-term plan that supports steelworkers and their communities to maintain those good jobs into the future and transition to net zero, so why is the Minister making short-term decisions instead of delivering on the long-term industrial strategy that communities such as mine, and our steel industry and workers, desperately need?
Ms Ghani
That is just not correct, especially the comparisons to the G7. The decisions over Port Talbot have been hanging around for quite some time, and we were able to work with Tata Steel to ensure that jobs were confirmed long into the future. Tata Steel employs more than 8,000 people, and that was under serious threat until the investment was secured. Now consultation is taking place with the unions, and the reality is, as the media have noted, that the unions themselves are not sure how they want to take this forward. We were absolutely sure that we wanted steelmaking in that area and that jobs should be secured. That is why we offered the support that we did.
Holly Mumby-Croft (Scunthorpe) (Con)
I have written again to the Secretary of State to seek specific confirmation of the Government’s position on a virgin steelmaking sovereign capability in this country. Will she ensure that that specific question is addressed when I receive a response?
Ms Ghani
My hon. Friend is first and foremost an advocate for the steelworks and steelworkers in her constituency. Obviously that letter will be on its way, and I thank her so much for raising it.
Sarah Jones (Croydon Central) (Lab)
We are used to this Government flip-flopping all over the place. It would be funny if it were not so serious for business, exports and jobs. So when we heard the Treasury telling everyone who would listen that the Government’s response to the carbon border adjustment mechanism would be in the autumn statement, we were not surprised that it was not. The future of steel investment and growth relies on a clear and certain path from Government. We cannot have our business disadvantaged any more, so what is the decision on the CBAM? If this Government cannot decide, is it not time to make way for one who can?
Ms Ghani
Decisions have to be taken while responding to the consultations that take place. We have been absolutely determined to ensure that steelmaking will remain competitive in the UK, which is why we have been able to support the steel sector with high energy costs and put over £1 billion in place to deal with decarbonisation technology. When it comes to Tata, the support we have pledged involves an investment of over £1 billion to ensure that jobs remain secure in the future, and negotiations continue with British Steel as well. That is the support that we have provided and will continue to provide for steel in the UK.
Matt Vickers (Stockton South) (Con)
The Secretary of State for Business and Trade (Kemi Badenoch)
This week, I hosted more than 200 global CEOs and investors at the UK global investment summit, which was an extraordinary success. The Prime Minister set a £9.5 billion target to beat, and we tripled it, securing £29.5 billion of investment and more than 12,000 jobs. The success of the GIS is a vote of confidence in the UK. My Department’s work, supported by the £20 billion business tax cut in the autumn statement, is securing our country as a world-leading business and investment destination.
Matt Vickers
Many people are aware of the incredible story of the Redcar steelworks site being reborn as Teesworks, creating 20,000 jobs and unlocking £2 billion in private investment. Fewer people are aware that Stockton’s very own freeport business park is being built at the airport. Does my right hon. Friend agree that Teesside, as the home of the UK’s first and biggest freeport, offers a unique opportunity to those investing in the industries of the future?
Kemi Badenoch
I do agree, and my hon. Friend is quite right to praise the progress that has been made on delivering Teesside freeport. The freeport has already been successful in securing several landmark investments, including from SeAH Wind, which is investing £650 million in building an offshore wind manufacturing facility. That will create around 750 high-skilled jobs and builds on the measures announced in the autumn statement last week to further strengthen the offer of UK freeports. My Department will continue to work with freeports, in Teesside and elsewhere, on securing high-value investment.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
This is the Department in charge of growth, investment and exports. In the latest figures, following the autumn statement, growth has been downgraded. Business investment is still forecast to be the lowest in the G7, and goods exports have declined, both to the EU and to non-EU countries. Given that there are so many amazing businesses and sectors in the UK, how do the Government account for their poor performance?
Kemi Badenoch
I will not allow the hon. Gentleman to spin his way out of what is actually a very good news story for the Government. The fact is that the UK has overtaken France to become the world’s eighth-largest manufacturing nation. We are the world’s fifth-largest exporter. We are growing faster than Germany and France, and have received more investment than them combined. We are the top investment destination, certainly for financial services. We are doing well. Perhaps this is the moment for me to tell him what businesses told me at the global investment summit: that they were unimpressed by the Labour shadow Ministers they had met; that their offer was unimaginative; and that they were repetitive, and had no vision for the future of business in the UK.
Jonathan Reynolds
We follow the Secretary of State’s Twitter feed, and quite simply, we do not believe her.
I want to ask the Secretary of State about late payment. In the nine years that the Government have spent consulting on late payments, 450,000 businesses have gone under while waiting to be paid. Why do the Government’s new plans on late payment apply only to firms contracting with the Government? Why do they not rather follow our proposal to make sure that all public companies disclose their payment practices?
Kemi Badenoch
I have been working with the Federation of Small Businesses and others on late payments. The hon. Gentleman will have heard the measures announced in the autumn statement; this is an issue that the Government take very seriously. I disagree that we are implementing our plans in a partial way. We will resolve this issue, but I am afraid that I completely disagree with the Opposition: have done quite a lot on this, and many businesses have praised the measures that we announced in the autumn statement.
Mr David Davis (Haltemprice and Howden) (Con)
Kemi Badenoch
We are ready to have a free trade agreement with the US, but it is not undertaking free trade agreements with any country. That is, of course, disappointing, but it knows that we stand ready. That is why we have the state MOU programme. The latest figures show that UK-US trade has reached £310 billion. We are the biggest investor in Florida. I was pleased to meet Governor DeSantis earlier this month, and I also met the California Governor, Gavin Newsom, who wanted to be even faster in signing an MOU with the UK. They believe that this country has a lot of opportunity, and they want to do business with us.
Richard Thomson (Gordon) (SNP)
Import tariffs on egg products allow us to recognise the higher cost of UK egg production because of safety, welfare and environmental considerations. Can the Secretary of State give an assurance that eggs and egg products will be afforded sensitive product status by the UK in future free trade agreement negotiations, and that import tariffs will remain in place on those products?
The Minister of State, Department for Business and Trade (Greg Hands)
It is difficult to comment on tariffs in live negotiations, but I would say two things to the hon. Gentleman: first, this country imports very few eggs from abroad, and secondly, anything that happens with imported eggs would not change our standards on food imports, food safety and animal welfare in this country.
John Penrose (Weston-super-Mare) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
I am not known for my coyness. My hon. Friend has done very important work in this space, and we share his ambition: I chair the Smart Data Council, and we are planning to open up databases right across our economy to allow for more competition in the worlds of energy, telecoms, and buying and selling houses. He has been a great champion of all those measures. I am very keen to bring forward the roadmap that my hon. Friend has referred to, hopefully as early as January next year.
Tonia Antoniazzi (Gower) (Lab)
Kemi Badenoch
We are aware of the situation, and are working on it—negotiations to resolve it are actively ongoing. UK cheese is in increasing demand in Canada, and exports of UK cheese benefit businesses on both sides of the Atlantic. The UK has made continued and repeated efforts to find a solution since negotiations began, including by seeking an extension to the current arrangements, and we are clear that the UK is rightly entitled to ongoing access to Canada’s World Trade Organisation cheese tariff quota under our rights and obligations at the WTO.
Marco Longhi (Dudley North) (Con)
As the Prime Minister’s trade envoy to Brazil, I know that the best way of supporting exports from my Dudley businesses is to remove barriers to trade. That is why I was absolutely delighted when both our countries signed a double taxation agreement, in good faith and to the highest possible standards. There appear to be complications in Brazil at the moment with ratifying that agreement through Congress, as we have ratified it through our Parliament. What more can Ministers—the Chancellor of the Exchequer, perhaps—do to try to persuade Brazil that it is indeed a very good deal for itself as well?
Greg Hands
First, I praise my hon. Friend for the amazing job he does as the Prime Minister’s trade envoy to Brazil. Partly due to his efforts, UK-Brazil trade has increased by 33% in the past year alone, so we are doing a very good job there. The UK-Brazil double taxation agreement was passed into UK law in June, and is estimated to be worth hundreds of millions of pounds to the UK. I hope that Brazil ratifies the agreement soon: it is very much in its own interests as well. As my hon. Friend knows, the Chancellor has made very strong representations to that effect, and we look forward to strengthening our trade relationship at the next UK-Brazil joint economic and trade committee next year.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
Kevin Hollinrake
The hon. Lady raises an important point. That is something we are looking at; we have been looking at it for some time, and are keen to bring forward the results of our deliberations very shortly.
Mr Laurence Robertson (Tewkesbury) (Con)
May I ask the Trade Minister, whom I welcome back to his position, what efforts the Government are making to raise awareness of the developing countries trading scheme, particularly among African countries? What encouragement is he giving those countries to take advantage of that scheme, which would benefit them and us?
Greg Hands
Again, we have almost a full turnout of the Prime Minister’s trade envoys in the House this morning, and I commend my hon. Friend for the work he does as the Prime Minister’s trade envoy not just to one country, but to three—Angola, Zambia and Ethiopia. He rightly takes a strong interest in the UK’s forward-leaning and exemplary developing countries trading scheme. The scheme was launched on 19 June by my predecessor, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), who is now the Financial Secretary to the Treasury, and provides duty-free or nearly duty-free access to goods to 37 African countries. The scheme was launched to significant media attention in Ethiopia, and there was a series of events in more than 10 countries.
I agree with my hon. Friend the Member for Tewkesbury (Mr Robertson): the onus is on all of us in this House to continue to extol the virtues and the benefits of the UK’s developing countries trade scheme. We have taken the EU scheme and gone significantly further, making it more generous for developing countries. We should all be united in extolling the virtues of the UK’s scheme, and of the brilliant job the UK is doing to promote goods access to developing countries.
Joanna Cherry (Edinburgh South West) (SNP)
Kemi Badenoch
I believe there is a quarterly register that may contain some of the information the hon. and learned Member is asking for, but I am not able or going to list every single export decision that has been made by the export control joint unit. I will see what I can do to get her a fuller answer, but she will know that this is a very sensitive issue. I have a quasi-judicial role, and I must be seen to be impartial at all times. I will do what I can to provide the information she wants, but I do not have a list to provide her with this morning, and certainly not on the Floor of the House.
Sir Edward Leigh (Gainsborough) (Con)
On Scunthorpe, what major economy does not have a blast furnace and the ability to make virgin steel?
The Minister for Industry and Economic Security (Ms Nusrat Ghani)
Almost all the G20 countries have operational blast furnaces, and a number of those are transitioning to electric arc furnaces as well. We know the importance of Scunthorpe, which is a key driver of economic growth. British Steel provides a third of all domestic production supplied to the construction and rail industries. We continue to be in negotiations to make sure that we secure the best deal, and one that is good value for taxpayers, when it comes to Scunthorpe.
Liam Byrne (Birmingham, Hodge Hill) (Lab)
On Tuesday, we finally had answers from Lisa Wilkinson about the mistakes that led to the collapse of that much-loved firm, but Ms Wilkinson was not able to answer why 70% of the profits in the last four years were paid out in dividends to family trusts while the deficit in the pension fund amounted to now £50 million. Will the Secretary of State ensure that regulators explore every option to claw back those dividends so that Wilko pensioners are not short-changed?
Kevin Hollinrake
The right hon. Member raises a very important point. He has looked at this matter very carefully, including on the Business and Trade Committee, and I thank him for his work. I was pleased to give evidence to his Committee on Tuesday. Clearly, the Insolvency Service is looking at this. It is looking at the directors’ conduct report from PricewaterhouseCoopers, the administrator, which it needs to look at very carefully. It is clear from that report so far that there is no evidence of director misconduct, but further work is ongoing. The Insolvency Service is due to meet the administrator, PwC, in January, and we will look at the situation as it unfolds.
Simon Fell (Barrow and Furness) (Con)
One of the most effective ways we could strengthen both the public sector and the private sector is the creation of an office of the whistleblower, as long championed by my hon. Friend the Member for Cheadle (Mary Robinson). That would strengthen corporate governance, empower those who see wrongdoing to come forward and protect them from intimidation, and strengthen the UK as a place to do business. Given that this week is Whistleblowing Awareness Week, could I encourage Ministers to bring forward proposals to support this important initiative?
Kevin Hollinrake
I thank my hon. Friend for his question and his work in this area, in which he has great expertise. I met my hon. Friend the Member for Cheadle (Mary Robinson) yesterday to discuss this very matter. She has set out some key proposals in this area. We are currently undertaking a review of whistleblowing, and we hope to report to the House very shortly.
Business of the House
(1 year ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Lucy Powell (Manchester Central) (Lab/Co-op)
Will the Leader of the House give us the forthcoming business?
The Leader of the House of Commons (Penny Mordaunt)
The business for the week commencing 4 December will include:
Monday 4 December—Remaining stages of the Victims and Prisoners Bill.
Tuesday 5 December—Opposition day (1st allotted day). Debate on a motion in the name of the official Opposition. Subject to be announced.
Wednesday 6 December—Second Reading of the Sentencing Bill.
Thursday 7 December—General debate on tackling Islamophobia, followed by a debate on a motion on the implementation of public registers of beneficial ownership in the UK’s overseas territories and Crown dependencies. The subjects for these debates were determined by the Backbench Business Committee.
Friday 8 December—The House will not be sitting.
The provisional business for the week commencing 11 December includes:
Monday 11 December—Second Reading of the Leasehold and Freehold Reform Bill.
Lucy Powell
So it is another week, and another business statement, yet still no emergency legislation on Rwanda as promised. It has been another week of infighting, division and chaos on illegal and managed migration from the Conservative party. Apparently, some in the Cabinet—I do not know whether the Leader of the House is one of them—are holding that legislation back, while others clamour for it, with the Minister for Immigration going rogue. The Prime Minister is stranded between them, too weak to face down either side and too weak to act. Weeks after it was promised in days, when will we finally see the treaty and legislation?
As well as a treaty to negotiate, we have the ongoing situation between Israel and Gaza—I welcome the further extension in the temporary truce this morning—war still raging in Ukraine, a diplomatic row with Greece, visits to Kyiv and the middle east, a NATO summit, COP28 this week and a visit to Brussels next week, yet not a peep from the Foreign Secretary in this House, and no reporting back to Members. When I last raised this issue with the Leader of the House, she said that the House must be able to “hold him to account”. When? I welcome the Procedure Committee looking into the matter, but the Government could and should do more to ensure that we are able to raise issues directly and regularly, now. We have had no Foreign, Commonwealth and Development Office statements this week or last, only an urgent question—yet again the Government are being dragged here instead of respecting the House of Commons, and it is just not good enough. The next questions to the Foreign Office will be on Tuesday 12 December. Will the Leader of the House ensure that some progress on holding the Foreign Secretary to account is made before then?
It is not just foreign policy decisions that Members are keen to ask Lord Cameron about. Questions about his dealings with Greensill Capital continue to rumble on. Thanks to diligent work by my deputy, my hon. Friend the Member for Blaenau Gwent (Nick Smith), the Insolvency Service has been asked whether Lord Cameron could be considered a “shadow director” of Greensill. If that is the case, he could be subject to the same duties and liabilities as a director. His tax affairs from the time are now under scrutiny for failing to provide details of his personal use of planes owned by Greensill Capital. My hon. Friend has written to the Chair of the Treasury Committee to ask her to consider whether Lord Cameron’s failure to declare that information to the Committee is potentially in contempt of the House. Will the Leader of the House encourage the Chair of the Committee to investigate that? Will she also ensure that Lord Cameron does not wriggle out of frequent appearances in front of the Foreign Affairs Committee?
It is not just his lordship who is dodging scrutiny, because that is the Government’s tried and tested tactic on every front. Day by day, they are eroding the conventions of this place with their cavalier approach to scrutiny and good government. On Monday, Members debated minimum service level regulations for rail without the opinion of the Government’s own independent assessors, because they did not give them enough time to look at them. Yesterday we had Report stage of the Data Protection and Digital Information Bill, and the Government tabled 240 new amendments, some really substantial, at the last minute. It is outrageous.
Even the former Leader of the House, the right hon. Member for North East Somerset (Sir Jacob Rees-Mogg)—not someone I often agree with—thinks that the Government take a dictatorial approach to new legislation. It has also emerged that the Government’s Leasehold and Freehold Reform Bill not only will not apply to new flats, but now will not even apply to the sale of new houses. We have a flagship Bill to ban lease- holds that does not even ban leaseholds. What a shambles. This is child’s play and no way to run a Government.
Finally, this week saw some serious questions about what can only be described as the possible bribery of sitting Members. The hon. Member for Ashfield (Lee Anderson) was recorded revealing that he had been offered a lot of money to join the Reform party. The offer was five years of an MP’s salary as insurance for defecting. These allegations are incredibly serious and tantamount to bribery from a rival political party, potentially in breach of electoral law. It has subsequently emerged that the Government Chief Whip was made aware of these enticements being offered months ago and believed them to be serious and potentially criminal. Have these matters now been passed to the police? If so, when? If not, why not? Why has it taken a secret recording to bring these very serious matters, which go to the heart of our democracy, to the attention of this House?
Penny Mordaunt
First, may I wish everyone a happy St Andrew’s day? I am sure I speak for the whole House when I say that our thoughts are still with the hostages who are still in Gaza and their families. We hope that situation can be resolved quickly.
First, the hon. Lady raises the issue of the Foreign Secretary being answerable to this House. She will know that a senior Foreign Office Minister is available to lead on matters, and on very serious issues the Prime Minister would speak from this Dispatch Box. The Foreign Secretary has been forward-leaning and suggested a number of things that he thinks would be highly appropriate for how he could be held to account in this place and directly by Members of this House. No decisions have been taken yet, because we are waiting to hear from the Procedure Committee. It is right that matters for this House are dealt with by the Committees of this House.
The Foreign Secretary has been forward-leaning. I know that many Members have been concerned in particular about liaison with Members of this House who have hostage families living in their constituencies, whether they are British nationals or have a connection to Britain. The Foreign Secretary is meeting and has offered to meet all such families, and he is in touch with hon. Members who are in that situation. When the Procedure Committee brings forward measures—it is always sensible in its deliberations—I am sure those measures will be put in place.
The hon. Lady criticises us for not allowing scrutiny of legislation. Her point might have had more traction if in yesterday’s sitting we had not finished an hour early. Part of the reason for that was that only one Opposition Back Bencher spoke in the debate. I think we were having votes when Report should have been concluded.
The hon. Lady talks about the Leasehold and Freehold Reform Bill. She will know that Bills can be amended during their passage through the House, and we have committed to including a ban on new leasehold houses during the Bill’s passage, despite what has been reported. That commitment has not changed.
The hon. Lady talks about migration and emergency legislation, and I will put that in context. It is slightly ironic that Labour is eagerly awaiting further legislation from us on these matters when Labour Members have opposed all the new powers that we have brought in to protect our border. They fought against us in ending free movement and deporting foreign criminals, they would wish to take an extra 110,000 people every year from Europe, and Labour in Wales is giving asylum seekers £1,600 a month. The legislation will be brought forward shortly, but I am not holding my breath on the Opposition supporting it. Further business will be announced in the usual way.
Sir Peter Bottomley (Worthing West) (Con)
I welcome the news that the Leasehold and Freehold Reform Bill, which will bring in modern housing terms, will have its Second Reading in a week or so. Through my right hon. Friend, may I say to the Government that even if we have to add things to the Bill as it goes along, that is better than having to wait another year for this overdue opportunity to reform effectively the scandalous abuses within leasehold, which are loaded so much against 6 million home occupiers—the tenants of leasehold homes?
I draw my right hon. Friend’s attention to the named day question I tabled for the Foreign Office about the acid attack on Shahzad Akbar on Sunday in England. If Ministers think it is appropriate to make an oral statement, will she please encourage them to do so? It is just as shocking to have a Commonwealth country suspected of an acid attack on one of its nationals—a human rights lawyer—in this country as it was to have the Russian attack in Salisbury and the alleged Indian attack in Canada.
May I ask my right hon. Friend to draw to the Home Secretary’s attention the letter he will have received today from the human rights lawyer Clive Stafford Smith, asking whether the police force in the relevant area was right to assess the risk to this man as low when in fact it was high, and whether is it true that the local police had switched off the automatic number plate recognition system for some reason, when that might have helped to detect the culprits of this terrible acid attack?
Penny Mordaunt
I thank my hon. Friend for his warm welcome for the Leasehold and Freehold Reform Bill. I will certainly ensure that the Home Secretary is aware of his concerns with regard to that police force. He will know that the next Foreign Office questions are on 12 December, but I will certainly ensure that both the Foreign Secretary and his lead Minister in the Commons are aware of his concerns about that terrible attack.
Deidre Brock (Edinburgh North and Leith) (SNP)
I am sure that the hearts of all of us in the House go out to those innocents who have suffered in Gaza and Israel, and who continue to suffer.
I, too, wish the House a very happy St Andrew’s day —to you, Mr Deputy Speaker, and to us all. On this special day, I have first a word of thanks. The Leader of the House has described me in this Chamber and on social media as “sanctimonious”, “delusional”, “treacherous” and “slopey-shouldered”. I cannot say how much that language from a Tory is a badge of honour for me in Scotland, so I am grateful. Even more, her comments last week about Scotland’s drug policies were literally front-page news. The Daily Record described them as “an odd rant” —one of the more positive responses. One correspondent asked:
“Why does Penny hate Scotland so much—was she scared by the bagpipes as a child?”
We certainly look forward to her reply to that.
I am afraid that that answer from the Leader of the House illustrated comprehensively the attitudes and contempt on the Government side of the House for the people of Scotland. Maybe she needs to refresh her Government’s growing army of scriptwriters in Edinburgh —paid for, of course, by taxpayers’ money. No more fat- free, out-of-date Trumpian rants, please.
The Leader of the House has claimed that she takes an interest in the welfare of Scotland’s children, so obviously she will have seen the remarkable new assessment of the Scottish child payment posted on the London School of Economics website by a number of academics expert in social policy and economics. It says that the Scottish Government’s payments are
“predicted to have a monumental impact on reducing child poverty rates”,
and that they will
“transform Scotland from being one of the most unequal places to live in Europe to being one of the most equal.”
I feel that this House should be given an opportunity to debate it, as child poverty in England rockets. Given her stated interest, will she please confirm that she has read that assessment? If not, would she like me to send her a copy? Or maybe it is really all about clickbait and social media reach, and she does not care at all.
Penny Mordaunt
Let me add some more adjectives to what the hon. Lady described. The SNP really has surpassed itself this week in being self-obsessed, self-pitying and self-delusional. I have hit on why it is losing the case for independence: if Scotland were to take the leap, surely it would want its leaders to be the sort of people to step up, take responsibility and work hard to improve their opportunities, but despite the Scottish Government being one of the most powerful devolved Administrations in the world, they cannot accept responsibility for anything.
Given that the SNP has been in power for 16 years and in every single year its budget has been 20% higher than in England, who does the hon. Lady think is responsible for Scotland’s declining A&E performance, increased waiting times, 70% hike in drug-related deaths and 10% increase in the attainment gap? What about the 10 years that the Scottish Government have missed their cancer and housing targets, the rising crime, the soaring violence in schools, the lowest police numbers since 2008 or the 1,700 fewer teachers? Who does she think is responsible for the fact that some police forces do not even investigate certain offences, and are warning that soon they will not be able to attend call-outs?
Who does the hon. Lady think is responsible for plummeting international rankings in maths, literacy and science? Who does she think has snaffled more than half the £1 billion in extra tax that Scottish residents have to pay, which never reaches public services? She talks about Scottish schoolchildren, but who has chosen to pay so much less to Scottish schools per pupil than anywhere else in the UK? The autumn statement has given the Scottish Government an additional £545 million. We are about to hear their budget, and it is a pretty safe bet that it will not be spent wisely. By all means, the hon. Lady can send me what she likes, but there is a trend here. Scottish SNP supporters will soon be outnumbered by the pandas in her local zoo.
Siobhan Baillie (Stroud) (Con)
I want to raise the brilliance of the Fromehall Mill team and to encourage everyone to look at the Stroud Times article and video as they try to raise share support to buy the mill. It is a multi-business powerhouse with everything from bikes and bakeries to artificial intelligence and social action. Will my right hon. Friend tell the House when the next round of community ownership fund bids will be announced? Can we have a debate in the House about smaller companies around the country that are using, selling and teaching AI technology, because they are doing an incredible job?
Penny Mordaunt
I thank my hon. Friend for all her work to champion that brilliant local community initiative. We expect to be able to inform applicants to the third round of the community ownership fund by the end of December. She will know that Levelling Up, Housing and Communities questions are on Monday, where she may wish to make the case again.
Mr Deputy Speaker (Mr Nigel Evans)
I call the Chair of the Backbench Business Committee.
Ian Mearns (Gateshead) (Lab)
I thank the Leader of the House for announcing the Backbench Business debates for Thursday 7 December. Let me give her early notice that if we are awarded time on Thursday 14 December, the Committee will intend to schedule debates on knife crime and the potential merger of Vodafone and Three. Is the Leader of the House considering giving the Backbench Business Committee any time in the week beginning Monday 18 December? If she is, we would love to know as soon as possible so that we can allocate debates and let Members know. I am glad to say that the Committee was re-established this week and is up and running, but we already have a backlog of debates, with 13 on our waiting list. It is good that we have plenty of business to come.
The Go North East bus industrial action continues, with very few buses running for weeks and, on many routes, not at all. That is having a huge detrimental impact on our local economy and jobs, and on the learning of students who cannot get to their local further education colleges such as Gateshead College in my constituency. Students who struggled to make up the learning lost during covid are being hit again, since they are unable to attend at all without incurring massive additional expense. Can we have a debate in Government time about introducing a compensation scheme from public transport providers that are singularly failing in their service delivery obligations?
Penny Mordaunt
I thank the hon. Gentleman for his advert for forthcoming debates. It is good to know that the Backbench Business Committee is busy. I will certainly let him know as soon as possible about the week of 18 December. He will know that we always try to give as much notice as possible.
I am very sorry to hear about his ongoing constituency issue. That is why we believe minimum service standards in vital sectors—transport is one of them—are so important. I will make sure that the Transport Secretary has heard about that ongoing situation. It is very well understood that students from lower socioeconomic groups will be disproportionately affected by such action.
Dame Caroline Dinenage (Gosport) (Con)
May we have a debate on decisions by probation and prison services to release on licence? Last Friday, my constituent Levi Kent was stabbed to death. The man charged with his murder was sentenced to two years in prison for wounding with intent just in January this year and was released on licence in September. Will my right hon. Friend back my calls for a serious case review into the licensing decision and monitoring, which may have freed someone who should be in prison to murder?
Penny Mordaunt
I am sure I speak for the whole House when I say how appalled we are to hear of that situation. Our thoughts are with my hon. Friend’s constituents and all those affected by this appalling tragedy. The Lord Chancellor is aware of this case. I am sure it will need to be subject to a review into what happened in this instance, but I know the Lord Chancellor’s door is always open to her and I think he may have already contacted her. I thank her for all she is doing in her constituency in the aftermath of this appalling event.
Mrs Emma Lewell-Buck (South Shields) (Lab)
Cases of rickets in children, which is associated with malnutrition, have risen by over 700% in the last two years. My Healthy Start Scheme (Take-Up) (No. 2) Bill would have prevented over 157,000 babies, children and pregnant mothers from missing out on essential food and vitamins, but the Government rejected it. Can we please have an urgent debate on why the Government have dragged our children into Victorian levels of poverty?
Penny Mordaunt
The hon. Lady will know that there are over 500,000 fewer children living in absolute poverty under this Administration, and that the Under-Secretary of State for Health and Social Care, my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom) has been doing incredible work, bringing together Government Departments to focus on the early years and to create much more effective pathways at a local level for children who are particularly vulnerable.
Maggie Throup (Erewash) (Con)
Will my right hon. Friend consider a debate in Government time on the effectiveness of the process of calling in? Although the mechanism technically exists to help in planning cases, such as the one I am dealing with in relation to proposals for two drive-through fast food outlets on a busy highways interchange near Risley in my constituency, I fear that in practice the process of calling in does not work as it should and needs urgent reform.
Penny Mordaunt
I thank my hon. Friend for all she is doing to make sure that the views of her constituents are heard in such matters. She will know that the next Levelling Up, Housing and Communities questions will be on 4 December. I invite her to raise it directly with the Secretary of State. I will also make sure that he has heard what she has said today.
Mr Deputy Speaker (Mr Nigel Evans)
I call Jim Shannon. [Hon. Members: “Ooh!”]
Jim Shannon (Strangford) (DUP)
You caught me off guard there, Mr Deputy Speaker. Thank you very much for bringing me in early.
In every one of our constituencies, across the whole of the United Kingdom of Great Britain and Northern Ireland, we have girlguiding groups, which we greatly support as they do wonderful work with girls of all ages. It is therefore with much concern that I ask the Leader of the House, very kindly, whether we may have a debate in Government time on the Floor of the House on the proposed devastating decision by Girlguiding UK to sell off its UK activity centres and to stop direct delivery of girlguiding in British overseas territories and on UK military bases. It will have a catastrophic impact, not just here but across the seas, on young women in the British family, which we all want to preserve and retain.
Penny Mordaunt
I thank the hon. Gentleman for his early question this week. I think that would be an excellent topic for a Backbench Business debate. Many Members were agreeing with him as he outlined the issues. I know that one of the problems is that the guiding community does not feel that it was properly consulted in advance of the decision being taken, and I know that many right hon. and hon. Members have written to the board to question it. I think an airing on the Floor of the House or in Westminster Hall would be welcomed.
Caroline Nokes (Romsey and Southampton North) (Con)
I know my right hon. Friend is as shocked as I am by some of the working practices of SSE in providing power to commercial premises. My constituent Philip Liddell of ACE Liftaway has paid £73,000 on deposit to SSE, but because of SSE’s delays with SSE’s solicitors, it has now asked him for an additional £50,000 to move an electricity substation on his commercial premises—an increase of 69%. Mr Liddell did not cause the delay, but he has no choice but to pay up. Will my right hon. Friend find time for a debate in this Chamber to discuss SSE’s working practices and how it is holding people to ransom?
Penny Mordaunt
That is a shocking case. As I would normally do, I shall write to the Secretary of State for Energy Security and Net Zero, but I am sure that SSE’s diligent public affairs department is listening to business questions, is terribly shocked to hear about the situation, and will get in touch with my right hon. Friend or her constituent before 3 o’clock, when I put my letters in the postbox. I hope that she will keep me posted on progress.
Matt Rodda (Reading East) (Lab)
Reading gaol has been empty for 10 years now, and there has been a strong local campaign to turn the historic prison into an arts and heritage hub. The campaign is supported by me and the right hon. Member for Reading West (Sir Alok Sharma), by our local council and by many others. The Ministry of Justice promised us an update this autumn on this important project, but sadly, none has yet been forthcoming. Will the Leader of the House raise the matter with the Justice Secretary?
Penny Mordaunt
I fully understand why the local community wants that heritage building to be brought into use, and it has an arts connection through some of its former inmates. Given that the next MOJ questions is in the new year, I shall certainly raise it with the Lord Chancellor and his team, and ask them to update the hon. Gentleman.
Mrs Pauline Latham (Mid Derbyshire) (Con)
I recently visited the Falkland Islands, at the invitation of the Falkland Islands Government. A subject that arose while we were there is the complete lack of broadband and internet connectivity. I was unable to receive or reply to emails, or look at anything on the web. This is holding back individuals and, in particular, business opportunities in the Falklands. Will the Government arrange a debate to explore how we can improve broadband and internet connectivity in overseas territories?
Penny Mordaunt
My hon. Friend raises an important point, and many Members who have visited the Falkland Islands will fully understand what she means. In addition to stifling economic opportunities, it is a particular problem for the spouses of our serving personnel out there, whose ability to remain economically active is very limited by this situation. I shall certainly make sure that all the relevant Departments hear what she has said, and we will see what they can do to rectify the situation.
Patrick Grady (Glasgow North) (SNP)
The welfare of animals is hugely important to many of my constituents, and they were pleased to see the announcement of the Animal Welfare (Livestock Exports) Bill in the King’s Speech, although they would have liked it to go further and cover issues such as puppy smuggling. When can we expect the Bill to be presented to the House and its Second Reading?
Penny Mordaunt
I welcome the hon. Gentleman’s approval of that Bill. He will know that we are still committed to the other measures that were in our manifesto. We will just be doing them in other ways, such as fulfilling our commitment on primates through secondary legislation. He will not be surprised to hear me say that further business will be announced in the usual way, but it is good to know that he will be supporting the Government on these measures.
Sir Christopher Chope (Christchurch) (Con)
When can we have a debate on the World Health Organisation’s pandemic preparedness treaty and the associated international health regulations? Does the Leader of the House realise that there is a lot of concern across the country that this treaty will result in a loss of personal liberty and a real challenge to our sovereignty as a Parliament?
Penny Mordaunt
I shall certainly make sure that the Secretary of State for Health and Social Care has heard my hon. Friend’s concerns on this matter. I know that many Members have an interest in pandemics, which do not respect borders. International co-operation is needed, but there will be concerns about how the World Health Organisation has responded to particular situations. I know the House will want to scrutinise such measures in detail.
Chris Elmore (Ogmore) (Lab)
My constituent, Mr Jones, had his car written off by a third-party insurer in December 2022. Due to an insurance loophole, Mr Jones has been forced to settle the car hire costs because his insurer, Admiral, booked the car hire in his name and not through Admiral. Nine months on, Admiral is still refusing to cover the costs and the third-party insurer says it has no liability, so Mr Jones is left thousands of pounds out of pocket because Admiral did not do its job properly. Will the Leader of the House ask Ministers in the Department for Transport or the Department for Business and Trade to try to rectify this loophole, so that nobody else is left short-changed by insurance companies that simply dodge the rules?
Penny Mordaunt
I am very sorry to hear about that case. I will raise it with the relevant Departments but, again, I hope the public affairs team at Admiral has heard his question. This is a competitive market, and we have legislated to improve competition on such matters. If it has not already, I hope the public affairs team will be in touch with the hon. Gentleman to discuss what recompense could be made.
Andrew Selous (South West Bedfordshire) (Con)
The record 1,455 police officers in Bedfordshire are extremely welcome. Can the Home Office reassure the chief constable of Bedfordshire that apprehending illegal and dangerous motorcyclists who terrorise communities is what the Government and, indeed, the people of Bedfordshire want him to do? One young man has already lost his life and another has suffered life-changing injuries as a result of this behaviour. Roads and footpaths need to be kept safe for adults and children.
Penny Mordaunt
I thank my hon. Friend for all he is doing in the wake of these tragic incidents. I will make sure the Home Secretary has heard his concerns about the action that his local police may or may not be taking. This kind of antisocial behaviour causes misery for many people, which is why, through our antisocial behaviour action plan, we have committed £160 million to help local authorities make high streets, footpaths and so on much safer for their communities. The police have powers to deal with these situations, and we expect them to be used.
Wera Hobhouse (Bath) (LD)
This weekend marks small business Saturday, and I look forward to visiting our wonderful Christmas market in Bath, which brings in £50 million for the local area. Anyone who has not been to Bath at Christmas should please come. It is absolutely magical.
I am pleased that footfall in Bath is above pre-pandemic levels. However, many UK businesses are struggling to recover. This year has seen the most company insolvencies since 2009, and the autumn statement offered no energy support for businesses. Can we have a ministerial statement on what the Government will do to stop businesses closing this winter?
Penny Mordaunt
I thank the hon. Lady for the advert for small business Saturday; I am sure that all Members of this House will be involved in it, celebrating the incredible entrepreneurial organisations and individuals in their constituencies. A number of measures were set out in the autumn statement to help our high streets and, in particular, the hospitality, retail and leisure sectors. We recognise that they are the backbone of this economy and they are often the focal point for many other services and social interactions in our communities. They should be treasured and I hope that everyone does that this Saturday.
Tom Randall (Gedling) (Con)
One reason why the good people of Gedling voted to leave the European Union was to take back control of our borders. There have been several high-profile and complex challenges in doing that, be it dealing with the emergence of criminal gangs or complicated legal proceedings. So may we have a statement to set out the progress the Government have made on this issue since we left the EU?
Penny Mordaunt
I thank my hon. Friend for his question. He will know that progress is being made on this matter: boat crossings are down by 33%; the legacy backlog is down by 42%; asylum decision processing has increased by 250%; returns are up by 29%; and immigrants are 43% less likely to be in receipt of any form of state benefits. Since we left the EU, we have been working to change our systems. In December 2020, we ended free movement—that was opposed by the Labour party—and changed access to benefits. In April last year, we passed the Nationality and Borders Act 2022 to deter entry into the UK and to help us to remove people who have no right to be here. In December last year, we signed the deal with Albania, reducing the number of people coming here by 90%. In May, we introduced measures to reduce the rise in the number of students bringing dependants and to stop students switching out of the student route. In July, the Illegal Migration Act 2023 became law, although, again, it was opposed by the Labour party—70 times. Again that legislation is helping us to remove people who should not be here and to speed up removals. In October, we opened a consultation on capping the numbers that we would take from safe and legal routes. More legislation will come to the Floor of this House imminently, particularly to enable the Rwanda plan to be put into full effect—no doubt, it will be opposed by the Labour party. Now that we have greater control, we should use those controls.
Kevin Brennan (Cardiff West) (Lab)
The Government Chief Whip is a Minister but, by convention, does not make statements from the Dispatch Box. So will the Leader of the House please give confirmation on accusations made by the GB News presenter who also has a side hustle as the hon. Member for Ashfield about being effectively offered a bribe in his role as a Member of Parliament? I know this was reported to the Government Chief Whip, but have they reported that allegation to the police for proper investigation?
Penny Mordaunt
I thank the hon. Gentleman for raising that point; this is a serious matter. I am not aware of the situation that he refers to, but if these matters were being investigated by the police, it would probably not be wise to comment on them on the Floor of the House.
Cherilyn Mackrory (Truro and Falmouth) (Con)
Before I ask my question, Mr Deputy Speaker, let me declare an interest, as a Cornish fishwife. The Cornish inshore fleets, particularly the under-10 metre fleet, are alarmed at proposals for a potential ban on the landing of pollock in the next round of negotiations for fisheries quota. The Cornish Fish Producers Organisation and the Cornish fishermen I know tell me that pollock is the staple for much of the inshore fleet, parts of which rely on it entirely. Sadly, the Department for Environment, Food and Rural Affairs has so far not listened to the suggested compromises that have been tabled, which include keeping the fishery open for just line-caught pollock. Therefore, on behalf of all six Cornish MPs, including myself, may I ask for a debate in Government time on the potential impact that this ban is likely to have on the already precarious livelihoods of our Cornish fishermen?
Penny Mordaunt
I thank my hon. Friend for raising this important point on a subject close to her heart. She will know that since we left the EU there have been good opportunities for our fishing communities. In one instance, a fishing port not far away from her has seen its annual sales go from £40 million to £70 million. This should be a success story and, of course, what benefits the fishing community benefits hospitality, leisure, retail and many other things. She will know that there will be an opportunity to raise this matter with the Secretary of State on 7 December and I urge her to do so.
Rachel Hopkins (Luton South) (Lab)
Today is Fuel Poverty Awareness Day, and I thank National Energy Action for its work ensuring everyone can have a warm, safe and healthy home. I recently met with Friends of the Earth Luton, as part of its United for Warm Homes campaign, who told me that in my constituency there are 36 energy crisis hotspots, representing over 50% of neighbourhoods in Luton South, where below average incomes meet high fuel bills. Will the Leader of the House provide Government time for a debate on an emergency home insulation programme to start in neighbourhoods hit hardest by the energy crisis?
Penny Mordaunt
I thank the hon. Lady for her question and I shall ensure her suggestion is heard by the Secretary of State. She will know about the financial support that we have given households, as well as recent measures in the autumn statement, that mean over £100 billion in support has been provided. On average, low- income households have received £2,500 a year to enable them to cope with higher energy bills. Through her auspices, her constituents could make use of a number of insulation schemes, including those in the private and public sectors. I will ask the Department to ensure she is aware of all those schemes.
Andrew Jones (Harrogate and Knaresborough) (Con)
We often have debates about parliamentary standards for MPs, which I have contributed to, but we rarely debate the standards adopted by political candidates. They are not elected, and most never will be, yet that large group of people has a significant effect on the public perception of our politics and politicians. If we want to improve standards in politics, that begins at the grassroots level of political activism. During my time as an MP, there have been far too many instances of behaviour by my political opponents that have failed any definition of acceptable standards, or even legal ones. Can we have a debate about how we raise the bar throughout our political system, including local party associations and candidates for office?
Penny Mordaunt
I hope what my hon. Friend says will be met by agreement from both sides of the House, particularly from party leaders. I happen to know that my hon. Friend has suffered appallingly at the hands of a particular individual and I urge him to raise that matter with the relevant party leader. We should take these things seriously. I know from my own party that our candidates are required to sign up to the Nolan principles of public life, which is matched with training. This week our sitting MPs and parliamentary candidates received training from the Antisemitism Policy Trust. This is an incredibly important point and I hope we will all hold our colleagues, whether they are MPs or prospective parliamentary candidates, to account on this matter. I hope that my hon. Friend’s particular situation is resolved swiftly.
Christian Wakeford (Bury South) (Lab)
Last Sunday, I was proud to march against antisemitism, standing shoulder to shoulder with British Jews alongside my friends and constituents. I welcome the increase in funding to the Community Security Trust, as laid out in the autumn statement, and thank it for keeping my constituents safe. However, since the pogrom of October 7, we have seen a staggering 1,300% increase in antisemitism, with many Jews no longer feeling safe in Britain. With that in mind, can we have a debate in Government time on tackling antisemitism and hate speech, to ensure people of all communities feel safe?
Penny Mordaunt
I thank the hon. Gentleman and all hon. Members who joined that march or showed solidarity to the Jewish community on that day. We must all continue to do that when the headlines disappear when the situation is resolved, as I hope it will be soon. I met with the Jewish Leadership Council yesterday to look at what more we can do. As well as showing support to the Jewish community, we need to show support to other faith communities who want to do the right thing, stand in solidarity together, and continue to work at strengthening ties. We must support individuals who reach out to other faith groups in their communities, and ensure that they do not face intimidation.
Anna Firth (Southend West) (Con)
As we continue to celebrate Disability History Month, may I raise again the lack of any disabled lift at Chalkwell station in my constituency? It is an absolute disgrace. It is the main station giving access to our beaches, and with 40 steep steps it is completely inaccessible to anyone with a disability or with a pushchair. I have raised this matter in the House five times now. This year I have been promised twice that it will be sorted out. Given that rail companies have a duty under the Equality Act 2010, itself a consolidating Act, to make reasonable adjustments, please may we have a debate in Government time on when the provisions will be enforced in a timely manner?
Penny Mordaunt
My hon. Friend is a diligent campaigner on this matter, rightly so, and her campaigning has yielded some results: I understand that the Department for Transport has said that Network Rail expects to award the construction contract early next month for that work. It is a very bad situation that needs to be rectified. In the meantime, disabled passengers, if they cannot use that station, can contact c2c, which will arrange alternative transport at no additional cost, but, of course, that is not optimum. With the hon. Lady’s campaigning, I hope that optimum is not far away.
Tonia Antoniazzi (Gower) (Lab)
Last week, I raised with the Leader of the House the case of Teagan Appleby, as did her Member of Parliament, the hon. Member for Dover (Mrs Elphicke). We did, as a result, have a meeting with the Minister, so I thank the Leader of the House for that. However, both the hon. Lady and I asked for an emergency intervention by the Department. This is day 37 of seizures and, last night at 7.30, Teagan’s mum, Emma, was told that there is nothing else that can be done. A brain operation would not address Teagan’s seizures. She currently has access to an oil, which her parents must pay for while she is in an NHS hospital. She needs another oil. I passed Emma’s number to the officials on Monday. I have seen the Minister in these corridors, but nothing has happened. I have asked for an emergency intervention. It is now Thursday. We need one and I urge the Leader of the House to make that intervention on my behalf and on behalf of everybody who is supporting Teagan.
Penny Mordaunt
I thank the hon. Lady for her ongoing work on what is a very difficult case. I shall ensure, immediately after these questions, that the new Secretary of State has heard what she has said. As she will know, I am not aware of what the healthcare professionals caring for her constituent are saying that she needs, but if it is something that the Secretary of State for Health and Social Care can intervene and act on, I am sure that she would want to do so.
Alexander Stafford (Rother Valley) (Con)
Colleagues will be aware of the brilliant Bluebell Wood Children’s Hospice in Rother Valley, and the work that it does supporting children and their families through some of the worst times imaginable. I wish to highlight the £25,000 raised for Bluebell Wood by eight of my constituents in Maltby—Conner Wesley, Rob Pryke, Craig Edwards, Matt Whitehead, Corey Mangham, Chris Daley, Danny Bearman and Caleb Wedge—in their coast-to-coast walk across England, raising two and a half times their target and making sure that Bluebell Wood has the resources that it needs to help those who need it the most in their time of need.
May we have a debate, in Government time, to discuss what this Government can do to help our charitable constituents support hospices such as Bluebell Wood?
Penny Mordaunt
I thank my hon. Friend for getting the names of his fantastic constituents on record, and I thank them for all the work that they have done to raise such a huge sum for this very important children’s hospice. We all know the incredible work that these organisations do and how valued they are by all who come into contact with them. Were my hon. Friend to apply for a debate on this, I am sure that it would be well attended.
Stewart Malcolm McDonald (Glasgow South) (SNP)
A few short years ago, my brother died by himself, at home and alone, having taken an overdose of drugs following a life of serious, harmful addiction. Last week, the Leader of the House stood at the Dispatch Box and dismissed the pilot in Scotland of drug consumption facilities. She dismissed them as somewhere safe and warm for heroin users—people like my brother—to take their heroin, but they are healthcare facilities designed to help people with addiction problems, and turn their lives around. She did it in the most ignorant and contemptuous way possible, so I invite her to my constituency to meet the families who are thankful that a pilot is finally taking place. Maybe she will then come back and make an apology at the Dispatch Box. Given her love of clicks, if she puts it on Twitter I will even share it.
Penny Mordaunt
The hon. Gentleman can go and look at last week’s Hansard, because that is not what I said. I was actually saying that that would be a legacy of the Scottish National party. What I criticised the Scottish National party for was having let down a generation of children by destroying an education system, reducing the number of teachers, starving schools of resources, widening the attainment gap and many other things. I am genuinely sorry for the hon. Gentleman’s loss, and I know a great deal about the particular pilot, which the Government support the Scottish Government’s doing, but his obligations to the children of Scotland are important, and the Scottish Government are failing them. I will not apologise for holding him and his party to account.
Rehman Chishti (Gillingham and Rainham) (Con)
Levelling up round 3 resulted in over £1 billion of support for 55 projects around the country, yet not many of them were in the south-east. Gillingham high street in my constituency urgently needs that funding and regeneration. The autumn statement also included funding for town centres, not many of which were in the south-east. Levelling up is about levelling up the north, south, east and west. Will the Leader of the House clarify when we will have a statement regarding round 4 of levelling-up funding? Can we please ensure that that funding goes to all parts of the country, including areas such as Gillingham in the south-east, because we urgently need our fair share of resources, allocated on a merits basis?
Penny Mordaunt
My hon. Friend makes a compelling case for projects and funding going to his constituency. He will know that the levelling-up agenda has been at the heart of successive Conservative Administrations. The next Question Time will be on Monday, and I hope that my hon. Friend will attend to put those questions directly to the Secretary of State.
Fleur Anderson (Putney) (Lab)
December 9th marks the 75th anniversary of the signing of the genocide convention. I am chair of the all-party parliamentary group on prevention of genocide and crimes against humanity, and we will mark this time by calling for a strategy. I invite you, Mr Deputy Speaker, the Leader of the House, the shadow Leader of the House, and all Members present to come to a drop-in that we will hold next Wednesday in Portcullis House Room U from 12.30 pm to 2.30 pm, to talk to experts about how, as parliamentarians, when we say, “Never again,” we can really mean that. Will the Leader of the House support a debate on this issue?
Penny Mordaunt
I thank the hon. Lady for advertising her event. I shall certainly try to come along, subject to my duties in this House. It is incredibly important that hon. Members know what steps we can take, and what policies we can put forward, to ensure that these things never happen again, and to deepen our knowledge of such things as the international definitions and the appropriate terms to use for different situations. She is providing the House with a timely education session.
Miriam Cates (Penistone and Stocksbridge) (Con)
At a recent football match in the Sheffield and Hallamshire women’s football league, a young woman was seriously injured following a collision with a male player—a trans woman—on the opposing team. As has been well publicised in the national media, a number of other teams in that local women’s league have withdrawn from fixtures against that particular team out of concern for the safety of their players. Unlike other sporting associations, the FA has not yet acted to ban biological males from playing in women’s football, which is threatening the safety and the fairness of the women’s game at a time when its popularity is rightly rising. Will my right hon. Friend give time for a debate on women’s football, and the role of the FA in ensuring the safety of female players?
Penny Mordaunt
I thank my hon. Friend for her question. When I was Minister for Women and Equalities, I raised it with the Department for Culture, Media and Sport, in part because FIFA’s own rules do not allow biological men and biological women on the same pitch together. The FA has different rules for different levels and categories of the game. I know that there are local teams here who have trans women playing on them and they are very valued, so I think it depends on the level of the game—that is certainly the response that I received at the time from such sporting bodies. The issue is receiving new focus, however, and clearly the constituents she mentions are concerned about it, so I urge her to raise it both with the Equalities Minister and at CMS questions, which are on 11 January.
Andrew Bridgen (North West Leicestershire) (Reclaim)
I am delighted to hear that this is Whistleblowing Awareness Week, because some weeks ago I was given access to 5 million confidential New Zealand Government vaccination records by a whistleblower. The data was anonymised and passed to scientists and data analysts in the UK and other countries. I will share a fraction of that analysis: the mortality rate in New Zealand rose post vaccination for five months, regardless of what time of year the vaccine was taken. That rate of mortality increase rose with every subsequent booster that was taken. From the data, the chances of the excess deaths in New Zealand being random and not due to the experimental vaccines has been calculated at one in 100 billion. It is the vaccines that are causing excess deaths in New Zealand, just as it is the vaccines that are causing excess deaths in the UK and elsewhere. Can we please have a statement now from the Government, suspending these experimental mRNA vaccines before any more death and harm is done to our population?
Penny Mordaunt
I thank the hon. Gentleman for raising this question. I think in New Zealand over 11 million doses of the covid-19 vaccine were administered. In England and Wales it was 150 million, and it is estimated that over 120,000 deaths were prevented by covid vaccines in England up to the end of September 2021. I disagree with what he says about the critical issue of vaccinations; I think they are life-saving. The report to which he refers has been debunked around the world, and he fails to mention the part that states that while an adverse event
“can occur after vaccination, that does not mean it was caused by vaccination.”
It is incredibly important that we look at the facts in this matter. We have the covid inquiry going on at the moment and, thanks to the work that our science base did in producing those vaccines, we were able to save millions of lives. It is incredibly important that we combat any misinformation about the vaccine.
Alun Cairns (Vale of Glamorgan) (Con)
The Leader of the House is more than aware that Barry in my constituency has not only the best beach front, but the best coastline in the whole of the country. Barry is to be enhanced even further by a successful levelling-up bid of £20 million to deliver a marina for the town, following a long-standing campaign. May we have a debate in the Chamber on regeneration in general, not only to consider the benefits that a marina will bring but, more importantly, on attracting further investment and using the levelling-up fund successfully to create quality jobs and better facilities in Wales’s largest town?
Penny Mordaunt
I congratulate my right hon. Friend on securing that very large sum for his constituency. He is right that, in addition to the immediate facilities that it will enable to be constructed, there will be immense business opportunities for hospitality, leisure, retail and many other things. I think all hon. Members who have heard him will be very interested in visiting and seeing the results.
Gareth Thomas (Harrow West) (Lab/Co-op)
This Friday is Romania’s national day, a chance to celebrate the contribution of Romania to European efforts to support Ukraine and to acknowledge the huge contribution that the British Romanian community make here. I was pleased last night to host 150 members of Romanian churches in the UK, including some of the most senior figures in the Romanian Christian community. Will the Leader of the House join me in welcoming the contribution of Romania to the efforts to support Ukraine, and take this opportunity to praise the contributions of British Romanians to our country?
Penny Mordaunt
I say “Multe mulţumesc” to the hon. Gentleman for his question. Romania has made a huge contribution to our efforts with Ukraine, and I join him wholeheartedly in paying tribute to everything Romanians have done, as well as to the many levels of partnership between our two nations. I thank him very much for the advert, and I am sure that all Members of the House will send their good wishes for Romania’s national day.
Martin Vickers (Cleethorpes) (Con)
Yesterday, the BBC announced that it was reducing the time allocation for the “Newsnight” programme. [Interruption.] The reason given was that it wants to concentrate more on online coverage and have more serious debate. The airwaves are not exactly short of talking heads. Would it be appropriate, notwithstanding the fact that the Media Bill is currently in Committee, to have a debate about the BBC and its role as a national broadcaster?
Penny Mordaunt
Hansard may not have picked up that there were mixed views to that news across the Chamber. Obviously, the BBC is operationally and editorially independent—it is up to the BBC to determine how it delivers its services—but it must ensure that it continues to provide the news content required to deliver its remit, as set out in the charter and the agreement. The first purpose of that is:
“To provide impartial news and information to help people to understand and engage with the world around them.”
The Government expect Ofcom, as the BBC’s independent regulator, to ensure that the BBC is robustly held to account in delivering its public services. If there were to be a debate, I am sure that it would be a very lively one.
Patricia Gibson (North Ayrshire and Arran) (SNP)
There has been a 26% reduction in the number of free-to-use ATMs in my constituency since July 2018, alongside a 30% reduction in the number of free-to-use ATMs across the UK over the past five years. An increasing number of ATMs are switching to the pay-to-use model because the interchange fee fails to cover the cost of maintaining the machines. I am sure that the Leader of the House would agree that it is important to halt the decline of free-to-use ATMs, so will she make a statement on the need for interchange fees to rise to a level that properly covers the cost of providing and managing the UK’s free-to-use ATM network, particularly in the light of interest rate increases and the rising cost of labour and distribution?
Penny Mordaunt
The hon. Lady raises an important point. Of course, this issue has a disproportionate impact on rural communities, where there is less choice of available ATMs. I shall certainly ensure that the Secretary of State has heard her concerns. If she were to apply for a debate, I am sure that it would be well attended.
Tom Hunt (Ipswich) (Con)
For over 10 years, 100 of my constituents at the Mill development in Ipswich have been in limbo, unable to move on with their lives, re-mortgage or sell their properties, because the Mill has deep structural and cladding problems. The previous creditor-freeholder was the National Asset Management Agency—the Irish entity created to recoup losses to the Irish taxpayer after the banking crisis. Some £15 million received from a court case was meant to be spent on cladding remediation, but NAMA, before it washed its hand of the development, took the vast bulk of that money. What has happened to it? We do not know. Does the Leader of the House agree that that is a deeply immoral way for that entity to behave? It has caused immense anxiety and distress to my constituents, who, after 10 years, feel that the situation has moved backwards, not forwards. Will she advise me on what steps I should take and on whether my right hon. Friend the Prime Minister might raise the matter with his counterpart in Ireland?
Penny Mordaunt
I am very sorry to hear about the ongoing situation in my hon. Friend’s constituency. Questions to the Secretary of State for Levelling Up, Housing and Communities will be on Monday, and he may wish to raise it directly with the Secretary of State then. Given the international dimension to the matter, I shall certainly ensure that the Foreign, Commonwealth and Development Office is briefed. If my hon. Friend would like to give me further information, I will ensure that it is passed to the relevant Minister.
Sir Michael Ellis (Northampton North) (Con)
May we have a debate on BBC impartiality? Surely we cannot have BBC presenters using their on-air status to espouse fake news about Israel, or to make scurrilous suggestions about the Prime Minister’s motivations, as has been described in The Daily Telegraph today. It published a well researched piece of journalism on the subject, having trawled through the social media of some BBC journalists and personnel. Anti-Israel bile and bias is there for all to see. What are we going to do about the BBC?
Penny Mordaunt
I think we all want our national broadcaster to be the best in the world, and we want its editorial standards and policies, and those who work for it, to be the best in the world. The BBC is operationally independent, but I hope it will reflect on what has happened over the past few weeks. I hope it will look at what it can do, perhaps through training, and at what is happening with its editorial teams and those who work for it in the field, so that the British public can rely on getting impartial, good advice, produced to the highest journalistic standards. The BBC is usually very good at these sorts of things, but there are certainly questions that I, as a licence fee payer, would want answered in this respect.
Selaine Saxby (North Devon) (Con)
This is National Tree Week, and it is also 50 years since Conservative MP Sydney Chapman suggested the “Plant a Tree in ’73” campaign. It is even more important now that we preserve our woodland and plant productive forests for sustainable manufacturing and construction. What conversations has my right hon. Friend had with Cabinet colleagues on the deforestation due diligence legislation that we committed to in the Environment Act 2021, and on its progression through the House, and what other steps can I take to assist on this issue?
Penny Mordaunt
I thank my hon. Friend for mentioning Sydney Chapman and his campaign; it is nice to know of the legacy that Members of this place can leave. My hon. Friend will know that we are committed to implementing the provisions that she mentioned at the earliest opportunity through secondary legislation. We also recognise that businesses need clarity on their obligations, so that they can prepare to meet them. Questions to the Department for Environment, Food and Rural Affairs are on 7 December, next week, so she may wish to raise her point directly with the Secretary of State then.
Scott Benton (Blackpool South) (Ind)
Although the Government’s decision to reduce air passenger duty has boosted regional aviation, further reform of public service obligation routes is still required if we are to maximise the use of regional airports, such as Blackpool airport. Will my right hon. Friend find time for a debate on reforming PSOs, and may we have a debate on how we can support regional airports and regional aviation?
Penny Mordaunt
Regional airports are absolutely vital to local economies, and they are one of the things that make us very attractive to inward investors. This is an important matter. The hon. Member will know that he can raise it directly with the Secretary of State for Transport on 14 December, and I encourage him to do so.
Peter Gibson (Darlington) (Con)
I know that my right hon. Friend will share my concerns about teenage suicide. This week, David Smith and Hilary Rabbett, the parents of 17-year-old George, came to Parliament to launch their new charity, I’m George’s Mate. It seeks to raise awareness of mental health issues and to provide suicide prevention courses in schools and colleges. George tragically attempted suicide in May this year. He has been supported by his mates, who are regularly visiting him as he regains consciousness. Will my right hon. Friend join me in raising awareness of this incredible new charity, which will be of interest to colleagues right across the House? May we have a debate on what more can be done for our young people on suicide prevention?
Penny Mordaunt
I thank my hon. Friend for giving us all the opportunity to welcome I’m George’s Mate—it sounds like a wonderful initiative, and all credit and praise are due to his constituents David and Hilary for the work they are doing on that. He will know that the new five-year suicide prevention strategy for England, which was published in September, sets out our ambition to reduce suicides within two and a half years, together with over 100 actions to make that happen. However, we will only be able to do so through the likes of David and Hilary and that grassroots action, providing the support that people need, including peer support. We have backed our plan with £10 million in a new grant fund, and it was precisely those sorts of community organisations and social enterprises that we were thinking of when we set it up.
Sara Britcliffe (Hyndburn) (Con)
Nineteen years ago today, at the age of nine years old, I woke up to the news that my beautiful mum had died. She had an illness —she was an alcoholic. My story of this loss through addiction is not an isolated case. While I welcome the Government’s harm to hope strategy and the funding for local authorities, more needs to be done to provide wraparound care and support for the families of those who have an addiction. Will my right hon. Friend support a debate in Government time to see what further actions can be taken to support people with addictions, so that we stop others losing loved ones far sooner than they should?
Penny Mordaunt
Can I thank my hon. Friend for raising this matter, and say that we are all thinking of her today in particular? [Hon. Members: “Hear, hear.”] She will know better than anyone the impact that alcoholism and its health aspects can have on families, and on children in particular. I thank her for sharing her personal story today, which will help raise awareness and shine a spotlight on the importance of these services.
My hon. Friend rightly acknowledges that the Government have made additional investment in this area. I also salute the healthcare professionals around the country who are doing fantastic work, introducing alcohol screening services at accident and emergency and elsewhere in areas where there is high prevalence of these issues. We need to do more on that front: the Government are tackling a number of issues in our legislative programme, including smoking, but alcohol abuse remains a huge concern for many people in this nation, and we must continue to be vigilant and see what more we can do to help families in that situation.
Mark Pawsey (Rugby) (Con)
In Rugby, we are doing our part to build the homes that the country needs for the future, and as a consequence, my constituency is the fastest growing in the west midlands. We have seen new schools and roads—all delivered ahead of schedule—but we need our local health provision to expand as well. On recent visits to Rugby, Health Ministers have heard the case for enhanced urgent and emergency care provision at Rugby’s Hospital of St Cross in order to support that growing population. May we have a debate to consider how all aspects of infrastructure may be delivered in a timely fashion?
Penny Mordaunt
I congratulate my hon. Friend on all the work he and his constituents have been doing to help the regeneration of his local area. It is vital that local health services and other services can keep pace with such growth. As my hon. Friend knows, his local integrated care board has seen its funding increase substantially—it is over £1.6 billion this year. That ICB is best placed to make decisions about where that money needs to be spent, but I will also make sure that my hon. Friend’s concerns have been heard by the Secretary of State for Health, so that she may be able to help him and ensure that the provision he wishes to see is there, particularly in accident and emergency.
Dr Neil Hudson (Penrith and The Border) (Con)
I am delighted that the Government have listened to me and responded positively to my campaigning for funding for the rural enterprise hub in my constituency, with the Chancellor awarding us £7 million as part of the autumn statement. That is a real shot in the arm for our rural community, providing jobs and an economic boost: it is truly levelling up in action. Levelling up should be for the whole of the United Kingdom—towns, cities and rural areas; north, south, east and west—which is exactly what this Conservative Government are ensuring. Can we please find time for a debate on the impact and benefits of levelling up for both rural and urban areas?
Penny Mordaunt
I congratulate my hon. Friend on his success in his campaign, and I congratulate everyone who has worked on the rural enterprise hub in his constituency. He articulates absolutely correctly the ambition that was set out in the levelling up White Paper. He will know that the second rural-proofing report, “Delivering for rural England”, which was published in September last year, showed a vision for what levelling up would look like in areas such as his, and we are determined to deliver that. He will also know that the Department for Environment, Food and Rural Affairs in particular has done some further work on unleashing rural opportunity, and through that we will continue to build on all the work we did in the original White Paper. I encourage him to speak to the Secretary of State for Levelling Up, Housing and Communities on Monday to further the additional asks I know he has.
Matt Vickers (Stockton South) (Con)
I recently met representatives of the Bishopton Villages Action Group, who are concerned about plans for a raft of separate solar farms that would collectively cover almost 2,500 acres of this small community, changing the character of this beautiful rural area and taking away prime agricultural land. Will my right hon. Friend grant a debate in Government time on how we can ensure that the community impact of multiple solar farms in close proximity is given proper consideration in the planning process?
Penny Mordaunt
My hon. Friend is right to raise this matter, and I know that other Members in this House have similar views, so it is a prime candidate for a debate, and I would encourage him to apply for one. I know that many Members want to support campaigns and further activity to ensure that we are making best use of agricultural land, growing more and supporting our farmers and food producers. He is running a very important campaign, and if there is anything I can do to support him in that, ask and it shall be so.
Marco Longhi (Dudley North) (Con)
Will the Leader of the House agree to a debate in this Chamber on policing? We have seen systemic failures in the Met police, as evidenced to the Home Affairs Committee, of which I am a member, and West Midlands police has now in fact been put into special measures. Could we revisit the effectiveness of police and crime commissioners and how they hold police leadership to account? The system is clearly not quite working well in the midlands and London, and probably elsewhere.
Penny Mordaunt
This is a very serious matter. I understand that, under the police and crime commissioner’s watch, knife crime in the west midlands has increased by almost a fifth in the last year, and the police are failing in many other areas as well. I know my hon. Friend, like many others, supports Andy Street taking ownership of the West Midlands police. His constituents and others deserve better, and I know that this matter is being looked at by the Home Secretary, who has described it as a total “failure of leadership” from Labour’s West Midlands police crime and commissioner.
National Insurance Contributions (Reduction in Rates) Bill: Allocation of Time
Ordered,
That the following provisions shall apply to the proceedings on the National Insurance Contributions (Reduction in Rates) Bill—
Timetable
(1) (a) Proceedings on Second Reading and in Committee of the whole House, any proceedings on Consideration and proceedings on Third Reading shall be taken at today’s sitting in accordance with this Order.
(b) Proceedings on Second Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings on the Motion for this Order.
(c) Proceedings in Committee of the whole House, any proceedings on Consideration and proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion four hours after the commencement of proceedings on the Motion for this Order.
Timing of proceedings and Questions to be put
(2) When the Bill has been read a second time:
(a) it shall, despite Standing Order No. 63 (Committal of bills not subject to a programme order), stand committed to a Committee of the whole House without any Question being put;
(b) proceedings on the Bill shall stand postponed while the Question is put, in accordance with Standing Order No. 52(1) (Money resolutions and ways and means resolutions in connection with bills), on any financial resolution relating to the Bill;
(c) on the conclusion of proceedings on any financial resolution relating to the Bill, proceedings on the Bill shall be resumed and the Speaker shall leave the Chair whether or not notice of an Instruction has been given.
(3) (a) On the conclusion of proceedings in Committee of the whole House, the Chair shall report the Bill to the House without putting any Question.
(b) If the Bill is reported with amendments, the House shall proceed to consider the Bill as amended without any Question being put.
(4) For the purpose of bringing any proceedings to a conclusion in accordance with paragraph (1), the Chair or Speaker shall forthwith put the following Questions in the same order as they would fall to be put if this Order did not apply:
(a) any Question already proposed from the chair;
(b) any Question necessary to bring to a decision a Question so proposed;
(c) the Question on any amendment, new Clause or new Schedule selected by the Chair or Speaker for separate decision;
(d) the Question on any amendment moved or Motion made by a Minister of the Crown;
(e) any other Question necessary for the disposal of the business to be concluded;
and shall not put any other questions, other than the question on any motion described in paragraph (15)(a) of this Order.
(5) On a Motion so made for a new Clause or a new Schedule, the Chair or Speaker shall put only the Question that the Clause or Schedule be added to the Bill.
(6) If two or more Questions would fall to be put under paragraph (4)(d) on successive amendments moved or Motions made by a Minister of the Crown, the Chair or Speaker shall instead put a single Question in relation to those amendments or Motions.
(7) If two or more Questions would fall to be put under paragraph (4)(e) in relation to successive provisions of the Bill, the Chair shall instead put a single Question in relation to those provisions, except that the Question shall be put separately on any Clause of or Schedule to the Bill which a Minister of the Crown has signified an intention to leave out.
Consideration of Lords Amendments
(8) (a) Any Lords Amendments to the Bill may be considered forthwith without any Question being put; and any proceedings interrupted for that purpose shall be suspended accordingly.
(b) Proceedings on consideration of Lords Amendments shall (so far as not previously concluded) be brought to a conclusion one hour after their commencement; and any proceedings suspended under sub-paragraph (a) shall thereupon be resumed.
(9) Paragraphs (2) to (7) of Standing Order No. 83F (Programme orders: conclusion of proceedings on consideration of Lords amendments) apply for the purposes of bringing any proceedings to a conclusion in accordance with paragraph (8) of this Order.
Subsequent stages
(10) (a) Any further Message from the Lords on the Bill may be considered forthwith without any Question being put; and any proceedings interrupted for that purpose shall be suspended accordingly.
(b) Proceedings on any further Message from the Lords shall (so far as not previously concluded) be brought to a conclusion one hour after their commencement; and any proceedings suspended under sub-paragraph (a) shall thereupon be resumed.
(11) Paragraphs (2) to (5) of Standing Order No. 83G (Programme orders: conclusion of proceedings on further messages from the Lords) apply for the purposes of bringing any proceedings to a conclusion in accordance with paragraph (10) of this Order.
Reasons Committee
(12) Paragraphs (2) to (6) of Standing Order No. 83H (Programme orders: reasons committee) apply in relation to any committee to be appointed to draw up reasons after proceedings have been brought to a conclusion in accordance with this Order.
Miscellaneous
(13) Standing Order No. 15(1) (Exempted business) shall apply to proceedings on the Bill.
(14) Standing Order No. 82 (Business Committee) shall not apply in relation to any proceedings to which this Order applies.
(15) (a) No Motion shall be made, except by a Minister of the Crown, to alter the order in which any proceedings on the Bill are taken, to recommit the Bill or to vary or supplement the provisions of this Order.
(b) No notice shall be required of such a Motion.
(c) Such a Motion may be considered forthwith without any Question being put; and any proceedings interrupted for that purpose shall be suspended accordingly.
(d) The Question on such a Motion shall be put forthwith; and any proceedings suspended under sub-paragraph (c) shall thereupon be resumed.
(e) Standing Order No. 15(1) (Exempted business) shall apply to proceedings on such a Motion.
(16) (a) No dilatory Motion shall be made in relation to proceedings to which this Order applies except by a Minister of the Crown.
(b) The Question on any such Motion shall be put forthwith.
(17) (a) The start of any debate under Standing Order No. 24 (Emergency debates) to be held on a day on which the Bill has been set down to be taken as an Order of the Day shall be postponed until the conclusion of any proceedings on that day to which this Order applies.
(b) Standing Order No. 15(1) (Exempted business) shall apply in respect of any such debate.
(18) Proceedings to which this Order applies shall not be interrupted under any Standing Order relating to the sittings of the House.
(19) (a) Any private business which has been set down for consideration at a time falling after the commencement of proceedings on this Order or on the Bill on a day on which the Bill has been set down to be taken as an Order of the Day shall, instead of being considered as provided by Standing Orders or by any Order of the House, be considered at the conclusion of the proceedings on the Bill on that day.
(b) Standing Order No. 15(1) (Exempted business) shall apply to the private business so far as necessary for the purpose of securing that the business may be considered for a period of three hours.—(Ruth Edwards.)
National Insurance Contributions (Reduction in Rates) Bill
Thursday 30th November 2023
(1 year ago)
Commons ChamberRead Full debate National Insurance Contributions (Reduction in Rates) Act 2023 View all National Insurance Contributions (Reduction in Rates) Act 2023 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 30 November 2023 - (30 Nov 2023)
The Chief Secretary to the Treasury (Laura Trott)
I beg to move, That the Bill be now read a Second time.
This is a landmark moment: the economy has turned a corner. Having rightly supported people through covid with £400 billion of spend and then £100 billion over the winter to support people with energy costs, we on the Government side of the House know that we have to pay back what we have borrowed. The Labour party opposed every single measure to do that, and every difficult decision, but because of those difficult decisions, we are in the position we are in today. Because of those difficult decisions, the Chancellor can put forward an autumn statement that focuses on growing our economy, supporting businesses and, crucially, cutting taxes, and that is what we are here to talk about today.
Harriett Baldwin (West Worcestershire) (Con)
Will the Chief Secretary to the Treasury tell the House, for the record, how many Labour Back Benchers are here for this milestone debate?
Laura Trott
I think by my count none, which is unfortunate and I think speaks to their lack of the commitment to cutting tax that we have on this side of the House. The Bill will cut taxes for 29 million working people. It has three measures: the reduction in national insurance contributions in class 1 primary main rate; the reduction of the NICs class 4 main rate; and the removal of the requirement to pay class 2 NICs. We are prioritising national insurance for two key reasons. First, we want to put more money in the pockets of working families, and NICs are the most targeted way to do that. Secondly, better reward for work makes working more appealing, and the more people work, the more there is a boost in growth.
Let me take the House briefly through the measures in the Bill. The first is the reduction in the employee class 1 NICs main rate, which the Chancellor announced in the autumn statement. By reducing the main rate by two percentage points, from 12% to 10%, on earnings between £12,570 and £50,270, we will cut taxes for more than 27 million employees. That will save the average worker more than £450 a year, and they will see the benefit in their payslips right at the start of the new year, as this legislation will come into effect on 6 January.
Jim Shannon (Strangford) (DUP)
I thank the Minister, and the Government, for what they are bringing forward. The cut in national insurance in the autumn statement is a welcome step, and my constituents tell me that. Unfortunately, many are also saying that the average working-class family, including many in my constituency, will still be facing the highest taxation levels. I am not being churlish, not for one second—I want to make that clear—but can the Minister encourage me and my constituents that there is more to offer from the autumn statement and that those people have more to gain?
Laura Trott
I thank the hon. Gentleman for the opportunity to talk about this, because it is important. Taxes for the average worker will have gone down by £1,000 since 2010. We have not hidden from the fact that we had to make some very difficult decisions to pay back our covid debts, and those have fallen on the highest paid, because that is the value that we espouse as a party. Because of those difficult decisions, which were opposed every step of the way by the Opposition, we are able to cut taxes for everybody—that is what the values of Conservative Members are all about.
We will cut and reform national insurance contributions for the self-employed by cutting the class 4 rate by one percentage point from 9% to 8% from April 2024. Finally, we will remove the requirement for self-employed people with annual profits above the national income tax personal allowance of £12,570 to pay class 2 NICs, also from April 2024. Those who pay voluntarily will still be able to do so, and I assure hon. Members that low-paid self-employed people who make voluntary class 2 contributions will not pay more.
The Bill simplifies the system for self-employed taxpayers, bringing it closer to the system for employees, and not only putting more money in their pockets but reducing the administrative burden. As a result of changes in the Bill, a self-employed person who is currently required to pay class 2 NICs every week will save at least £192 per year. Taken together with the cut to class 4 NICs, an average self-employed person on £28,200 will see a total saving of £350 in 2024-25. That will benefit around 2 million people. Importantly, those with profits under the small profits threshold of £6,725 and who pay class 2 NICs voluntarily to get access to contributory benefits, including the state pension, will continue to be able to do so.
The Government are committed to tax cuts that reward and incentivise work, and that grow the economy in a sustainable way. These measures do just that. The Office for Budget Responsibility states that the autumn statement package will reduce inflation next year, and measures in the Bill will be worth more than £9 billion a year, the largest ever cut to employee and self-employed national insurance.
A vote for these measures is a vote to give 29 million people an average yearly saving of more than £450. These reductions in tax will not only benefit those in work; according to the Office for Budget Responsibility, they will lead to the equivalent of almost 100,000 people entering work, because they will ensure that work pays and will drive more people to seek employment.
There is another point here, and that is about choices. I hope that the Opposition will support these measures today, if only for the reasons I have already set out. The public support them and business supports them. If the Opposition do not support them, it will represent a choice. The shadow Chancellor, the right hon. Member for Leeds West (Rachel Reeves), has often spoken of her fiscal rules that will have debt falling in the final year of the next Parliament. At the autumn statement last week, the OBR confirmed that public sector net debt is set to fall in that final year, with headroom of £30 billion. Implementing the permanent tax relief for business investment, plus the legislation before the House today, represents a choice to use around £20 billion of that £30 billion of headroom on these measures.
There is a path here, if the Opposition want it, to deliver the £28 billion a year. They could use up every penny of headroom, reject full expensing and reject today’s tax cuts, but what they cannot do—what the OBR, the financial markets and every secondary school maths textbook will not let them do—is vote for our policies today, borrow an extra £28 billion a year and still meet their own fiscal rules. The numbers simply do not add up. That is what I mean by choices.
The Opposition have to choose. Do they stick to their plan to borrow an extra £28 billion a year, which the Institute for Fiscal Studies says risks sending inflation, interest rates and mortgage rates up, or do they choose our plan to bring inflation down, taxes down and debt down? They cannot have it both ways. If the shadow Treasury team has no answer today, it will fall to the Leader of the Opposition to grasp the issue. Rather than anonymous briefings to the BBC over the weekend, he will have to make a choice. That is the difference between being the party of opposition and being the party of government: credibility with the public over credibility with their activists.
This Bill represents the choices made on this side of the House. I have spoken at length about why we have made them. I hope that the shadow Financial Secretary to the Treasury, the hon. Member for Ealing North (James Murray), can inform us honestly and straightforwardly on which side of those choices his party will land. If he cannot, we can all conclude, as Lord Mandelson himself said only a few months back, that Labour is not ready to be the party of government. I commend the Bill to the House.
James Murray (Ealing North) (Lab/Co-op)
Whatever the Chancellor said last week and whatever the Chief Secretary to the Treasury said today, the truth is that the Conservatives cannot hide from the facts when it comes to the level of taxation in Britain today. The inescapable truth facing families across the UK, and the truth that the Government cannot hide from, is that under the Conservatives, the tax burden in Britain is on course to reach its highest level since the second world war. As the Resolution Foundation made clear in its blunt analysis of measures in the autumn statement, personal taxes are going up, not down.
Any cuts to personal taxation announced last week are more than eclipsed by hikes in tax that this Government had announced before; the freezing of national insurance and income tax thresholds for six years is now expected to cost taxpayers £45 billion. They are not just giving with one hand and taking with the other; it is worse than that. As I said last week, it is as if the Conservatives have nicked someone’s car but then expect them to be grateful when they pay for the bus fare home.
Alun Cairns (Vale of Glamorgan) (Con)
Does the hon. Gentleman recognise the context in which the autumn statement was made? Was he not a cheerleader for the furlough scheme and the financial support provided during covid and the energy price shock? Does he recognise that that needed to be recovered but, because of the difficult decisions we have taken, we are now in a position to reduce taxes?
James Murray
The context in which the autumn statement was made was 13 years of Conservative economic failure. There have been 25 tax rises in this Parliament alone and the tax burden is set to rise to its highest since the second world war. That is the context that the British people are facing, and that is the context in which the autumn statement was made.
The impact on people across Britain is brutal. As a result of the Conservatives’ decisions on personal taxation, households will be left facing an average tax rise of £1,200 from the Government. Looking across all taxes, we know that, by the end of the decade, taxes in the UK will have risen by the astonishing equivalent of £4,300 for every household in the country. That is the context in which we are debating the Bill’s Second Reading.
Let me make it clear for the benefit of the Chief Secretary to the Treasury that Labour welcomes the cut in national insurance that the Bill includes. We believe that taxes on working people are too high, and we have long said that we want to see them come down when they can be cut in an economically and fiscally responsible way. We will support the Bill, but we believe that the Government need to be honest with people. The Conservatives need to be honest and admit that they are responsible for the biggest hit to living standards on record, and that this has been the biggest tax-raising Parliament that our country has ever seen.
This is not the first time we have debated national insurance rates in this Parliament. Just over two years ago, I stood here, opposite the Financial Secretary’s predecessor —more accurately, his predecessor’s predecessor’s predecessor’s predecessor—to debate Second Reading of the Health and Social Care Levy Bill. That Bill introduced, in 2022-23, a 1.25 percentage point increase in national insurance contributions for employees and employers—an increase that we rightly described at the time as
“a new tax on working people and their jobs.”—[Official Report, 14 September 2021; Vol. 700, c. 845.]
Hon. Members may recall that when the Government published that legislation, their own tax information and impact note on that tax rise confirmed:
“There may be an impact on family formation, stability or breakdown as individuals, who are currently just about managing financially, will see their disposable income reduce.”
We opposed that legislation, and it was clear to a wide coalition, including the Federation of Small Businesses, the British Chambers of Commerce, the CBI and the TUC, that it was the worst possible tax rise at the worst possible time.
As time went on, the then Chancellor—now the Prime Minister—realised that he had made a mistake. He tried to make a partial U-turn in last year’s spring statement by increasing national insurance thresholds, yet the Institute for Fiscal Studies quickly pointed out that that move would not undo damage already done. Its director, Paul Johnson, confirmed:
“Almost all workers will be paying more tax on their earnings in 2025 than they would have been paying without this parliament’s reforms to income tax and national insurance contributions, despite the tax-cutting measures announced today.”
Later last year, the 1.25 percentage point national insurance rise was finally reversed, yet, as we know only too well, any benefits that many families may have hoped to gain from that U-turn were rapidly eclipsed by the Tory mortgage penalty, following the Conservatives’ catastrophic mishandling of the economy. The impact of that recklessness is still with us today, as mortgage holders across the country face a hit of £220 a month when their current deals end.
The truth is that whatever the Conservatives do, they keep making working people worse off. That has been true over the 13 years that they have been in power, it has been true over the past two years of changes to national insurance, and it will be true after the Bill becomes law.
The Chief Secretary to the Treasury has been trying desperately to paint today’s national insurance cuts as the answer to the cost of living crisis. Last week, she claimed that
“taxes for the average worker have gone down by £1,000”.—[Official Report, 22 November 2023; Vol. 741, c. 360.]
I believe she repeated that claim today, yet analysis by the House of Commons Library makes it clear that national insurance and income tax on the median earner will rise from £6,112 in 2010-11 to £7,364 in 2024-25. Will she confirm—or will the Financial Secretary confirm on her behalf—whether she stands by her earlier remarks and explain exactly how those figures were calculated? The experience of people across Britain is very different from the picture that she is trying to paint.
Richard Graham (Gloucester) (Con)
Perhaps the answer to the question of the shadow Chief Secretary to the Treasury is that the income tax starting point has doubled from around £6,000 to more than £12,000. That provides the extra £1,000 take-home pay every year that he is puzzled about.
James Murray
The hon. Gentleman promoted me inadvertently, as I am the shadow Financial Secretary to the Treasury, but I thank him for his vote of confidence. Our point is that today’s tax cut, which we support, must be seen in the context of 13 years of the Conservatives in power: 13 years of economic failure, with 25 tax rises in this Parliament alone and the tax burden on course to be the highest since the second world war. Whatever the Chief Secretary to the Treasury might say, people across Britain are experiencing life very differently from how she paints it.
However welcome the measures in the Bill may be, they come after 25 tax rises in this Parliament alone. The British people will not be fooled. No matter what statistics the Government contrive or the gloss they try to put on their record, people across Britain need ask themselves just one question: do they and their families feel better off now than they did 13 years ago? The answer is a resounding no. At last week’s autumn statement, we learned not only that the tax burden is still on track to be the highest since the war and that inflation has been revised upward across the entire forecast period, but that growth rates have been cut for next year, the year after, and the year after that.
It took some gall for the Chancellor to say that he was delivering an “autumn statement for growth”—comments repeated today by the Chief Secretary to the Treasury—since the Office for Budget Responsibility reports that next year’s growth rate has been cut by more than half. Low growth has dogged our country for the past 13 years. The autumn statement makes it clear that the Conservatives still have no plan to get our economy growing as it should. Since 2010, under the Conservatives, GDP growth has been stuck at an average of 1.5% a year, down from 2% in the Labour years before. If the economy had continued to grow for the past 13 years at the rate it grew under Labour, it would be £150 billion larger—the equivalent of £5,000 per household every year.
As we all know, because of that low growth, the Conservatives have had to keep putting up taxes on working people. Low growth and high taxes have made people across Britain worse off. That is the reality of the past 13 years of the Conservatives in power. The Bill’s tax cuts cannot even remotely compensate for the damage they have done to our economy and the living standards of people across Britain.
Although we support today’s tax cut, we know that our country needs economic growth to make working people better off and to get our public services off the floor. That is the plan from Labour. We are the party of fiscal responsibility and of business, with a plan to make working people better off. Come the next election—it cannot come soon enough—people across Britain will look at the Conservatives’ record and the bleak achievements they will claim. In this Parliament, real disposable household incomes will have fallen the furthest, following 20 years of pay stagnation. Real average earnings are not forecast to return to their 2008 peak until 2028. Four million people have been dragged into paying tax, with 3 million more in the higher rate—the biggest hit to income on record. Next year, real-terms income will be 3.5% lower than it was before the pandemic. This the biggest tax-raising Parliament Britain has ever seen.
Whatever the Conservatives say or do, and whichever way they try to twist and turn, reality has caught up with them. We have been here before. We remember the Conservatives promising to cut income tax ahead of the 1997 election. Back then, people decided that it was too little, too late, coming as it did after 22 tax rises in that Parliament. As this Parliament approaches its end, today’s Conservative party is showing itself to be even more divided and desperate than in the late ’90s. As the next election draws nearer and the Conservatives try to cling on to power, the risk grows that they will get more desperate with their promises and more reckless with taxpayers’ money. Britain needs a plan to get the economy growing and make working people better off. That is what Labour is offering and why a general election cannot come soon enough.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the Chair of the Treasury Committee.
Harriett Baldwin (West Worcestershire) (Con)
I am not sure that I have ever heard a more grudging shadow Front Bench speech on measures that the Opposition support. They support them so wholeheartedly today that none of their Back Benchers has shown up to speak to them.
I endorse the measures in the legislation. The Chief Secretary is right to point to the turning point that the UK economy has reached this year, thanks to the steps taken a year ago to ensure that fiscal policy did not cut across the central bank’s aim to reduce inflation to its target. Thanks to that, inflation, which might have been as high as 13% last year, has fallen to 4.6%. That means that today, the earnings of the average UK worker are rising faster than the rate of inflation. We are seeing real earnings growth. That is the turning point that I am talking about.
The shadow Minister and the Chief Secretary both talked about the choices that the Chancellor could make on this occasion. In the evidence that the Treasury Committee took this week on the autumn statement, we saw the clear impact of the Chancellor’s choices on two long-standing challenges for the UK economy: slow productivity growth and the fact that not everyone has returned to work since the pandemic. When we get to the Finance Bill, I will expatiate further on the supply-side measures on the labour market and permanent full expensing, but today I will focus on the national insurance contributions element, which the Office for Budget Responsibility also considered to be a supply-side measure.
In the evidence that we took, we heard from the member of the Office for Budget Responsibility, Professor David Miles, that the choice to go for the national insurance contribution reduction in the autumn statement created a “definite positive” as an incentive to work. The OBR forecast that it will bring close to 100,000 full-time equivalent extra workers back into the workforce. That is so important. Paul Johnson from the Institute for Fiscal Studies noted in his evidence that, compared with a similar cut in income tax rates, a cut to national insurance is more progressive. It benefits people in work, but only on their earnings up to £50,000. That is important context for the choice that the Chancellor took.
I also welcome the simplification of taxes—a concept our Committee is committed to. Far too many things in our tax system act as disincentives to doing an extra hour of work. There are too many complicated withdrawal rates. The steps taken on class 2 and class 4 contributions represent a simplification of the tax system. Interestingly, we were told in our evidence session that the changes to class 2 and class 4 reduce
“the incentive for people to incorporate to gain a tax advantage.”
We should have a tax system that is broadly neutral on those two things.
Professor Miles told us that he thinks that the national insurance cuts are “unambiguously” a more positive incentive to work. The Office for Budget Responsibility does not see the measures as inflationary. He also said that
“some people at the margin who thought it perhaps was not worth working might now be persuaded to actively try to get a job”,
and that the measures will help retain people in the labour force.
To conclude my short remarks on the narrow measures in the Bill, I wanted to focus on the evidence that we have received on the choice that the Chancellor took on national insurance, and how that is very much focused on the structural challenges that the UK economy faces.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
We have heard an awful lot about choices at the start of this debate. What is abundantly clear for families in Scotland and across the nations of the UK is that the Government have chosen to ignore the burning cost of living crisis that they put in place for families.
Let me be unequivocally clear from the outset that the Chancellor’s attempt to masquerade the Bill as meaningful support for people is nothing short of a farce. I said to him at the statement that it would not bear scrutiny and it has not borne scrutiny. Families in Scotland already grappling with the harsh realities of the soaring cost of living are acutely aware of the UK Government’s role in their deteriorating financial situation. No amount of Tory spin can disguise the stark truth of their policies, or the fact that those families are faced with a future of perma-austerity under Westminster.
The autumn statement was a critical opportunity for meaningful intervention. It was, to say the least, a profound disappointment. It offered scant relief to households across Scotland—households already beleaguered by the catastrophic decisions of this UK Government. The audacity of the Chancellor in trying to package the reduction in national insurance rates as a major tax cut is an insult to the intelligence of the Scottish people. We are witnessing funding for public services pushed to breaking point due to years of real-terms cuts to the Scottish budget. The Scottish Government have sought to protect workers and services, and are having to do that with diminishing resources, yet the UK Government have shamefully neglected to prioritise investment in the NHS and other public services, which will, according to the OBR, see a cut of £19 billion in the coming years.
The Bill, in legislating for the changes to national insurance outlined in the autumn statement, is a glaring example of the Government’s disconnect from the realities on the ground. The changes announced by the Chancellor, some to take effect from January onwards, are a mere drop in the ocean of what is urgently needed now by families struggling with rampant food price increases, punishing increases in rents and mortgages, and the dreaded prospect of another winter with soaring energy bills. The Government could have listened to our pleas to provide a £400 energy bill rebate, to reduce the price cap and more. Instead, they will preside over a 5% increase in the energy price cap to land on 1 January—hardly a happy new year for those who cannot afford now to switch on the heating.
Let us dissect the facts. The main rate of NICs for employees is to be cut from 12% to 10%, a change affecting those earning between £12,571 and £50,271. For the self-employed, the rate drops from 9% to 8%, with the flat-rate NIC charge also being scrapped for some. On paper, those changes might appear beneficial, but in reality they are superficial. The Resolution Foundation’s Torsten Bell aptly noted that
“taxes are up not down”.
This is no generous gift to the public; it is a thinly veiled attempt at distraction. The Institute for Fiscal Studies highlighted a concerning trend: despite these nominal cuts, we are facing the most significant rise in taxes in recent memory. The tax threshold freezes since 2021 will largely, if not entirely, counteract any benefits of the Chancellor’s 2p cut to NICs next year. For someone with average full-time earnings, that means a saving of £449 in NI contributions, but an increase of £413 due to the unchanged tax thresholds. The Chancellor’s so-called giveaway then amounts to a paltry £36 for the average earner—a far cry from the over £450 boasted about today.
From the detrimental effects of austerity to the chaos of Brexit and now the mismanagement of the cost of living crisis, it is abundantly clear that the Westminster Government are a liability for the working people of Scotland. They are left to shoulder the burden of Westminster’s disastrous decisions. Our public services, the very foundation of our society, are under threat. The Chancellor’s spending plans, particularly his silence on them post March 2025, signal a disturbing turbo-boost of austerity. The OBR’s report rings alarm bells. The UK Government’s fiscal strategies are shrouded in uncertainty and wishful thinking.
The Scottish Government are handed a real-terms reduction in the block grant, yet are expected, miraculously, to maintain public services with, for example, a health budget increase of less than 0.01% for 2024-25. Inflation sits, even today, at 4.7%, so that NHS money equates to only £10.8 million blown away by inflation before it arrives, leaving only the cold sting of a sharp cut in reality.
The autumn statement and the Bill will serve as stark reminders that Westminster Governments are fundamentally misaligned with the values and needs of the people of Scotland. Our aspirations for a fair, just and prosperous society cannot be realised under such governance. Independence remains the only viable path to ensuring the wellbeing and prosperity of the Scottish people.
In conclusion, it is imperative that the Government acknowledge their failings, even at this late stage, and take decisive steps to truly support households and public services across the nations and in Scotland. Until such time, we in the SNP will remain unwavering in calling for real help for people struggling with rising rents and mortgages, struggling to pay for their shopping, and terrified of the cost of their energy bills this winter. Our values are to champion the interests of the Scottish people to safeguard our communities and the families who live in them. We will continue to call for the real power of independence to deliver on them.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
It is a pleasure to speak, very briefly, in this debate.
My starting point is the concern I felt, when I listened to my right hon. Friend the Chancellor of the Exchequer making his autumn statement and highlighting this aspect of the measures he was taking, to hear cries of “not much” and “big deal” from some on the Opposition Benches. It is important to reflect that even if we were looking solely at the class 2 national insurance contributions element, the amount that adds to a household income equates to more than the cost of a child’s school uniform for a year. It is a quarter of what the average household in the UK spends on Christmas. These are significant amounts of money for a good many of our constituents. Indeed, for one of my constituents who is affected by the ultra low emission zone policy, it would even pay their ULEZ charge for a fortnight. Taken in concert with the rest of the measures, it will make a significant difference to many household budgets and ensure that people have more money in their pocket in the new year.
I represent a constituency that, according to the ONS, is very much a constituency of workers. We enjoy a very high level of employment and self-employment, a very low level of unemployment and, I am very pleased to say, higher household income on average than the rest of the UK. But within that, there are many, many workers—those who are beginning their careers, or who have faced unstable employment—for whom this will make a real and practical difference. For that reason alone, I enormously welcome the measures we will be voting on today.
I would like to offer the Chief Secretary and the Treasury team an issue for consideration, which arises out of something I see in my constituency. It has been the subject of a lot of debate in this House in the last week or so. In 2019, the Conservatives stood on a manifesto that set a target of an additional 600,000 foreign students coming into the UK. That manifesto commitment has been achieved. We know that it earns us, in foreign currency income, around £35 billion a year. It is a bigger earner for the United Kingdom than our oil and gas industry, so it is incredibly important to our economy. Part of the thinking behind it was that many of those workers would become longer-term residents of the UK, especially in areas of great need: our national health service, caring professions and the technology industry. I hear from a good many constituents about the challenges they still face recruiting those workers to ensure that my constituents who need an operation can get it on time and that businesses can grow.
Home Office figures show that a very large proportion of those people leave the United Kingdom at the conclusion of their studies, but that some stay. Concern has been expressed about whether those who transition into work after being foreign students or those who are here for a brief period on a working visa and subsequently move abroad pay a sufficient amount into the UK economy to cover the costs of the benefits they may well receive. Right hon. and hon. Members have highlighted those who come to the UK under care worker visas, but who bring with them dependants who have significant health and educational costs. Would the Treasury team, in due course, give consideration to setting a differential rate of national insurance contributions for those who come to the UK on those types of visa, in line with the measures already taken of charging those applying for those visas a significantly higher fee and the national health surcharge? It would then become absolutely clear to everyone in this country that people who are here for a short period will pay a contribution that reflects the potential benefits available to them, whereas those who are lifelong citizens, for whom those costs will be spread out across their entire working life, will enjoy the benefit of a lower rate?
Every country in the developed world has faced a similar set of challenges around interest rates and costs of living. We all know what the reasons are: the impact of covid and the impact of rising US interest rates, which set basic interest rates and mortgage rates across the whole of the developed world. However, as my hon. Friend the Member for West Worcestershire (Harriett Baldwin) said, the turning point has clearly been reached. Most of us can see and feel in our constituencies the signs of a return to growth and a sense of prosperity. The fact that wages are now rising ahead of inflation is hugely significant to the living standards of all people, but especially to those on lower incomes the measures I am here to support today are incredibly important. I commend the Treasury team for bringing them forward.
Richard Graham (Gloucester) (Con)
It is a pleasure to join this debate, albeit one attended by literally zero Back Benchers of His Majesty’s loyal Opposition.
This debate and the changes to national insurance raise narrow issues of the amount of tax being paid by our constituents, wider issues relating to the question posed by the shadow Minister, the hon. Member for Ealing North (James Murray)—“Are you better off today than you were in 2010?”—and broader still questions about the value and purpose of life and what matters most to our constituents. I shall touch on all three in turn.
On the narrow issue, the national insurance payments mooted in the Bill, there is widespread agreement that they are good news for our constituents, because they mean lower tax. It is recognised that there is social justice in the measures, because they are not applicable to those earning more than £50,000 a year. We already know that no party in this House will oppose them. On the narrow issue, therefore, the Chancellor, the Treasury and those involved in creating the Bill have clearly got it right.
As my hon. Friend the Member for West Worcestershire (Harriett Baldwin) pointed out, this can easily be seen to be one of the measures by which we judge a turning point in the wider economy. After all, only a few months ago there were widespread expectations that the economy would be in recession, unemployment would be rising, taxes would be increasing, and there was very little wiggle room for the public finances to be seen to improve. All those things have been turned around. None of us can say with certainty that we are in full summer, but the green shoots are evident and things are changing.
On the broader issue of what we measure to answer the question, “Are our constituents better off today than in 2010?” there are different aspects. I suspect the shadow Minister had most clearly in mind a simple calculation of whether salaries net of inflation were higher or lower, and if we take that on its own, it will be a challenge for many Government Members to demonstrate that the answer is yes. For my constituents in Gloucester, average take-home pay has risen from £25,000 to £31,000, but their salaries have not kept up with increases in inflation. That is only part of the equation though; we need to take into account all the different forms of taxation, which include council tax. It is a cliché but true that council tax rises faster and is higher in Labour-run councils, whereas the Conservative-run council in Gloucester has done a good job of keeping it as low as possible over the last 14 years. Then, there is the question of take-home pay. As I pointed out to the shadow Minister, because income tax now applies only at £12,500, rather than at just over £6,000, the take-home pay element has increased by £1,000.
Other than that relatively straightforward financial calculation, there are many measures on which I hope all of us would want to answer “Yes” to the question, “Are you better off today than you were in 2010? I shall pick out a few of these crucial indicators, because they are relevant to the wider context of the Bill.
The Centre for Cities report is an excellent source of data for those who live in cities, so let me highlight a few elements of what its latest report said about Gloucester. We are one of the 10 lowest cities for economic inactivity. In effect, we have low unemployment and high employment —in fact, ours is the third highest employment rate, having risen last year from 76% to 84%, a 7.5% increase. The regional average is 79%, so we are way ahead of the south-west’s average. That means that many more people have purpose in their lives—they have occupations they can thrive in; they are bread-earners at home and useful role models for their children—and the city as a whole has a strong sense of purpose.
It is often forgotten, but many people remember vividly that their jobs were kept by the £400 billion spent during by the pandemic. The furlough scheme ensured that during the pandemic people could shelter at home, confident that their job would still be there, and those who had their own business know that the vast majority of those businesses would undoubtedly have gone bankrupt during the pandemic. The small businessmen and women, the self-employed, the entrepreneurs, all came through that period intact, whereas under a different scheme that would have cost taxpayers’ less, they would have struggled. The question, “Are you better off today than in 2010?” needs to encapsulate other questions: “Was your business able to survive? Was your job kept? Were you still able to be self-employed during a period when so many people around the world were struggling horribly?”
We in Gloucester are extraordinary in that our city has one of the very lowest percentages of population with no formal qualifications. In fact, extraordinarily, Gloucester has fewer people with no formal qualifications than Cambridge, and we are only 1% behind Oxford. The skills of my constituents are different from many of those in Oxford or Cambridge. A large number of our people are highly skilled with higher apprenticeships working in industries like aerospace, nuclear and high-level engineering. Those occupations, apprenticeships and higher apprenticeships have increased hugely over the last 13 or 14 years and are seriously threatened by the prospect—any prospect—of a Labour Government.
Let me illustrate that statistically. Since 2010, there have been almost 15,000 new apprenticeship starts in Gloucester—15,000 in a population of about 100,000. The run rate of apprenticeships nationally—5.5 million new apprenticeships since 2010—would have been almost halved under the Labour run rate between 2005 and 2010. Were Labour’s current proposals on apprenticeship spending to go through, it has been suggested that 140,000 apprenticeships would no longer exist. Therefore, the skills that my constituents have, which are being valuably used in leading sectors that are being supported by the Treasury and this Government, would be at serious risk under a new Government who did not value apprenticeships so highly.
The question, “Are you better off today than you were in 2010?” could also be rephrased, “What will happen to your skills, your purpose, your job and your future earnings under the changes proposed by the Labour party, which is so sadly absent here today?”
There are different issues that we need to consider in answering the question, “Are you better off today?” Education is vital for all of us, and everyone in the country needs to be more aware that our PISA rankings have risen from 25th to fourth in reading and from 27th to 16th in mathematics. I might be one off on both, but it is a significant leap forward. Those skills are vital to all our young constituents getting the opportunities they deserve.
Within infrastructure, there is the whole question of public transport. Gloucester has additional train services to Bristol, Worcester and down to London. There is a wider range of services, sports, culture and leisure, and cultural regeneration and the role of heritage are incredibly important to any city. Gloucester’s more than 40 wins from the National Lottery Heritage Fund have brought alive our old buildings and rebuilt pride in the city. These things are all part of answering, “Are you better off today than you were in 2010? Is where you live a better place today than it was in 2010?”
National insurance contributions are coming down sharply, which will mean an average saving of around £350 to each of my constituents and £450 for those on salaries over £35,000. All of that will be appreciated, but it is about the wider context in which it happens: the gradual recovery and the sense of green shoots coming through after a difficult year. That is important, and then there is the wider context of what has been achieved over the last 13 to 14 years. We must all take that into careful consideration.
Priti Patel (Witham) (Con)
I congratulate my hon. Friend the Member for Gloucester (Richard Graham) on his remarks. He provided a lot of sensible context for this debate and I will address some of his helpful points shortly.
It is very unusual to talk about fiscal matters, or fiscal legislation, to an almost empty Chamber. It is unheard of during my time in Parliament. As my hon. Friend will know, back in 2010, after the financial crisis, when we had to consider the long-term economic plan to build back our economy and to restore fiscal competence, there were many long, heated debates, and rightly so, in which proper scrutiny was given not just to Bills and legislation but to an exposition on the state we were in and how we needed to get ourselves back on to an even keel by growing the economy through Conservative policies.
That brings me to today’s theme. Conservative policies have, over the last decade, helped to restructure the economy, rebuild our country and create jobs and economic growth. They have made us stand tall in the world once again. I remember, in 2010, 2011 and 2012, looking at our financial ratings with a degree of despair. Thank goodness we are no longer in that state, which I think we all welcome.
I welcome this Bill and thank the Treasury and, in particular, my right hon. Friend the Chancellor for bringing it forward. Any measure that brings down the tax burden should be welcomed, because it represents a positive and constructive step in the right direction for our constituents. Our constituents are taxpayers and, ultimately, they want to keep more of the money they earn, and they want to know that the Government are spending their money responsibly.
Reducing the class 1 primary rate from 12% to 10% will put money into people’s pockets from 6 January—the sooner, the better. I commend the Government for bringing forward this vital fiscal measure. I am disappointed that there are not more colleagues here to debate it, but that is just how Parliament is right now.
The £450 benefit to a worker on the average salary will make an important difference to households. My hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) put it succinctly when he spoke about what it means for households at this time of year and for domestic budgets and spending.
I am particularly pleased to see the elimination of the class 2 rate and the reduction of the class 4 rate, which will help the self-employed from the start of the new financial year. I never tire of coming to this Chamber to say that I represent a constituency and a county of entrepreneurs. We are self-starters. We are self-made people. We are very proud of the contribution that the people of Essex make to our country. They are net contributors to His Majesty’s Treasury, which is all the more reason why they should get a tax cut.
As a Government who believe in enterprise, economic growth and letting people stand on their own two feet, we should do everything possible to support the self-employed and sole traders. It is hard work being a sole trader and being self-employed. We know about the regulatory burdens and pressure that HMRC puts on sole traders and the self-employed in particular, but they are the backbone and the engine of our economy; they are the lifeblood that creates jobs.
Some 80% of my constituents are employed by small and medium-sized enterprises—that is 20 percentage points higher than the national average—and we want them to continue to thrive and grow, as is right and proper. They are the embodiment of the entrepreneurial spirit that our country needs to create growth. I sometimes feel that we do not always give them the voice they need. It is easy for the big companies that can lobby central Government Departments to get their voices and representations heard. We are here for our constituents as their MPs. Even at business questions this morning, Members spoke about three family-run businesses. That is who we should be supporting.
We have seen a reduction in the number of self-employed people from around 5 million just before the pandemic to just over 4 million this year. That is why I believe we must back them, support them and encourage their growth. We should hold out that ladder of opportunity. Where they need help and support, we should back them as a Government and as a country.
I always come to this House to give a shameless plug for family-run and self-employed businesses in my constituency. It is also important that we buy British and support local firms in our country and in our constituencies. It is important to remember that the self-employed contribute an estimated £278 billion to the economy, and the fiscal and supply measures will make it easier for them to trade.
The ability to do business, to trade and to set up a business are so important. Lower taxes will mean that more people want to give it a go and set up a business. They are the ones taking a risk, so they are the people we should back and support. If we want to be healthy, competitive and drive growth, these are the very people who innovate and invest in new technology and do things that are edgy and somewhat different, while providing vital services to so many of our constituents and being pioneers in certain sectors. That is why keeping taxes down should be at the core of our mission in government.
As we have already aligned the class 1 and class 4 thresholds, to match the tax-free threshold on income tax, we all welcome that the burden of national insurance contributions has been reduced for the self-employed. That is why I am disappointed that there are not more Opposition Members present.
Dominic Raab (Esher and Walton) (Con)
My right hon. Friend is making a brilliant speech. I totally agree with her on the NICs paid by employees and the self-employed. In Esher and Walton, the average employee will receive a tax cut of £589 a year, benefiting 50,000 people. She is right that we are here to give a voice to the ambitions and aspirations of local people in our constituencies. Aside from the Labour Benches being totally empty, there is not a single Liberal Democrat Member here. Is it not churlish that, at this particular time, they are not doing more to support people on low and middle incomes?
Priti Patel
My right hon. Friend is right about that; his observation is spot-on. He will recall that, as I said in my opening remarks, when we have been in this Chamber to discuss important fiscal and economic measures, it has more often than not been to a full House. It is appalling that when the Government are backing working people and doing the right thing for them by putting more money in their pockets, the Opposition are all hiding. They are failing to recognise something that their constituents will benefit from. The Opposition should be giving a positive voice and supporting it, because it means more jobs and growth in every constituency across the country. As parliamentarians, we should all welcome that.
Madam Deputy Speaker (Dame Rosie Winterton)
Order. The hon. Gentleman was quite late in and did not hear the beginning of the right hon. Lady’s speech.
Priti Patel
Thank you, Madam Deputy Speaker.
As has been mentioned, the alignment with the tax-free threshold should also help with the future plans to simplify the tax system. We had a bit of a discussion on this last week, but it is important in today’s debate again to raise the prospect of simplifying the tax system—more should be done in that area—by merging income tax and national insurance together. That is why I am disappointed that more Opposition Members are not here to discuss it. Last week, we had a semi-healthy discussion about it. It is out of the scope of this Bill to table an amendment to bring those two taxes together, but I urge those on the Treasury Bench—I would also be happy to work with other colleagues on this—to consider taking that up in advance of the spring Budget. Much more can be done here. Such a move would simplify taxes for the entrepreneurs and self-employed even further. As we know, when we come to the end of the tax year they are constantly having to do all sorts of things to satisfy His Majesty’s Revenue and Customs.
In 2012, I asked the Treasury a written question on integrating those taxes, and the then Exchequer Secretary replied by stating:
“Since Budget 2011, the Government have engaged extensively with stakeholders to develop options for operational integration of Income Tax and National Insurance Contributions. As many stakeholders have recognised, this is a complex issue with potentially significant implications for employers’ payroll operations. The Government will provide an update on this work later in the autumn. As we have already made clear, this is a long-term reform on which the Government will proceed carefully.”
That was a long time ago—it was 11 years ago. Although this is a complex issue, I maintain that such a move would help to simplify the tax system. I know that the Treasury Committee has looked at this area, and my hon. Friend the Member for West Worcestershire (Harriett Baldwin) touched on it today. Such a move would help to make payroll much easier for businesses, and allow them to co-ordinate income and revenue in a much more straightforward way.
Although this next issue may not be directly within the Bill’s scope, it does relate to NICs. I would therefore like to take the opportunity to restate for Treasury Ministers the position on fiscal drag. The OBR forecasts show that a freezing of the NICs thresholds and the income tax thresholds will, relative to consumer prices index inflation, and after taking into account the tax cuts here, bring in an estimated £27 billion in the next fiscal year, 2024-25, with this rising to nearly £45 billion more for the Exchequer in 2028-29. The OBR is clear on that. Ministers know my views: as we go into spring next year, and as the economy grows and more revenues come in, I urge them to look at this area all over again.
This Bill is welcome. It is a positive step in the right direction, along with the entire autumn statement. I commend my colleagues for the work they have done on it. The speed at which the Government are acting to bring forward the benefits of the NI changes and get them into pay packets as early as possible is right; it is commendable and should be supported, as I hope it will be by all colleagues in the House. The Government must continue to look at further steps. We want more economic growth. We are pioneers when it comes to innovation and small business. We need to find other ways to lower taxes so that people can keep more of their earnings and, importantly, we ensure that our economy is match-fit for the future so that it continues to grow.
Tulip Siddiq (Hampstead and Kilburn) (Lab)
Before I start, I want to say that we have heard during the debate that former Labour Chancellor Alistair Darling has died at the age of 70. I am sure Members will agree, no matter which side of the House they sit on, that he was a man who cared deeply about people across the country, and that our thoughts are with him and his family today.
The Government may want our constituents to believe that they are easing the burden on their pay packets, but the reality is that households have not given the state this much of their earnings since the 1940s. Despite the warm words that we have heard today on tax cuts, households are now paying £4,000 more a year than they did under the previous Labour Government. This is a crippling tax burden for those struggling to make ends meet through the cost of living crisis. Despite today’s commitment to reduce NI, as a result of the Tories’ decisions on personal taxation, working people are left facing an average rise of £1,200 since 2010. So although Labour supports the measures put forward today to lighten the load that NICs are placing on our constituents, we should see this announcement for what it is: a cynical attempt to draw voters’ attention away from the fact that, under this Government, their living standards are going down and taxes are going up, while their wages continue to stagnate.
As the British people already knew, the promises made today cannot compensate for the damage that has been done. The measures announced today are equivalent to handing back £1 for every £8 of the Conservatives’ tax rises since 2019. The freeze in the personal allowance threshold means that a couple on an average wage will still be a staggering £350 worse off per year, regardless of cuts to personal taxation. The wider freezing of current thresholds has confirmed that an additional 4 million of the poorest in society will now pay income tax by 2029.
The scorecards for last week’s autumn statement are now in, and our leading independent economists do not seem that impressed. The OBR has confirmed, following the Chancellor’s announcement, that real household disposable incomes will drop by 7% next year. As my hon. Friend the Member for Ealing North (James Murray) noted, the head of the Institute for Fiscal Studies has also given a damning verdict, stating that the NICs reductions that we have been debating today “pale into insignificance” compared with the threshold freezes announced by the Chancellor. According to the latest International Monetary Fund forecast, the UK will have the slowest growth in the G7 next year. The Bank of England has confirmed that there will likely be zero growth in the economy until 2025. Those are not figures that the Government should be proud of.
If that economic backdrop were not bad enough, our constituents are also left worrying about how to pay for their mortgage and avoid having to sell the family home due to the reckless actions of this Government. Working families will see an average increase of £220 a month in mortgage costs because of the Tory mortgage bombshell, and 1.5 million households are also set to suffer as they desperately try to re-fix their mortgage deals next year. The Chancellor and other Conservative Members may want us to believe that the economy has turned a corner and that the cost of living crisis is over, but millions of people are still struggling to make ends meet. So of course we welcome the tax cut being debated today, but it is a drop in the ocean for working families who are still bearing the brunt of this Government’s economic decisions.
Despite the desperate smoke and mirrors we have seen from the Chancellor, it is now clear that this Government do not know how to find the solutions to address the fundamental challenges facing this country right now—all the challenges that our constituents are facing day in, day out. After 13 years of failure, it is time that the Government got out of the way and let Labour deliver its plan for the economy and how to grow it again, get wages rising again and get Britain its future back. For all the warm words that we have heard today, if the Conservatives sincerely believe in their policies, they should ask the general public and call a general election as soon as possible.
The Financial Secretary to the Treasury (Nigel Huddleston)
On behalf of the Government, I join the hon. Member for Hampstead and Kilburn (Tulip Siddiq) and the whole House in expressing our deepest sympathies to the family and friends of Alistair Darling. I know he had many personal friends in the House who knew him very well indeed. I never had the pleasure of interacting with him here, but what an incredibly calm and dignified gentleman he was. Perhaps that is something we can all reflect on.
Although the debate was somewhat one-sided, as most contributions came from the Government Benches, I thank all hon. Members for their contributions. This important Bill delivers tax cuts and rewards and incentivises work, while growing the economy in a sustainable way. I will respond to many of the points raised.
The hon. Member for Strangford (Jim Shannon) rightly pointed out the importance of looking after the lowest paid and having a fair tax system, which we are delivering on. Over the last 13 years, we have lifted hundreds of thousands of families out of poverty, and we have a progressive tax system where the top 1% of taxpayers pay 28% of all income tax.
My right hon. Friend the Member for Vale of Glamorgan (Alun Cairns) and my hon. Friend the Member for Gloucester (Richard Graham) highlighted the context in which the autumn statement was delivered and recognised the fact that we have faced not one but two global crises: the pandemic and the cost of living challenges. Those challenges are not unique to the United Kingdom and, despite the myths peddled by the Opposition, whoever was in Government would have faced those challenges. We do not remember the Opposition arguing against any of the intervention or support measures at the time—it is as if they have completely forgotten about that. Not recognising the context and the global circumstances speaks volumes about their inability to run the economy. We operate not in a vacuum but in a global system.
My hon. Friend the Member for Gloucester went on to highlight the remarkable progress made over the last 13 years, particularly in areas such as tax thresholds. Under Labour, the income tax threshold was £6,475, whereas it is now £12,570, and the NICs threshold was £5,715, whereas it is now £12,570. That is incredible progress. Together with the increases in the national living wage, that means people on the national living wage working full time are 30% better off in real terms than they would have been under Labour. That is a remarkable achievement and shows, despite the myths the Opposition peddle, that we look after the lowest paid in society. That will always be a priority of this Government.
My hon. Friend showed, yet again, his incredible insight, knowledge and commitment to his constituency by setting out a range of areas in which his constituents have benefited over the last 13 years, including by highlighting the importance of skills and apprenticeships. I could not agree with him more.
Rehman Chishti
The Minister is talking about apprenticeships, opportunities and skills, and in Gillingham and Rainham, we have seen over 8,000 apprenticeships. Does he agree that the concept of the Bill and the autumn statement is that if people work hard and do the right thing, they keep more of the money they earn? If they work hard and then retire, they get dignity through the pension triple lock—I know my residents from Darland, who are in the Gallery, very much appreciate that. If it were left to the Labour party, there would be more borrowing, spending and debt. We saw what happened before and we do not want to go back to that.
Nigel Huddleston
I could not agree with my hon. Friend more. He has given me the opportunity to leap swathes of my speech, because he has put those important points incredibly well.
My hon. Friend the Member for West Worcestershire (Harriett Baldwin), who is my constituency neighbour and the Chair of the Treasury Committee, highlighted the importance of the autumn statement as a turning point, as articulated by the Chancellor, and the all-important supply-side measures in it that will help spur on business, create employment and generate incremental economic activity. As a result of the spring Budget and the autumn statement, the OBR has said that the economy is likely to be 0.5% larger. When we are talking about an economy of over £2 trillion, that is a huge incremental value to the UK economy.
Unfortunately, the spokesperson for the SNP, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), failed to recognise that we have addressed the cost of living to the tune of £100 billion in support. He also forgot that in the autumn statement we had an increase not only in the living wage but in benefits, aligned with inflation; in pensions; and in the local housing allowance rate, to the 30th percentile. That means 1.6 million families will be better off, gaining an average of £800 in support. It is not true to say that there were no cost of living support measures in the autumn statement.
My hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) recognised the considerable impact of those measures and the fact that they make a meaningful difference to his constituents. He raised issues about visas and students, which I am happy to discuss with him further.
As always, my right hon. Friend the Member for Witham (Priti Patel) articulated core Conservative values incredibly well. The autumn statement recognised the importance of spending every penny of taxpayers’ money incredibly carefully and responsibly, as well as ensuring that we are there to support people through the tax system wherever we can. She is right to be passionate about small businesses and entrepreneurs. Small Business Saturday takes place this weekend and I am sure many of us will be out supporting small businesses, not only on Saturday but in the run-up to Christmas and beyond.
The Opposition spokespeople peddled so many myths and untruths, I do not know where to start. [Interruption.] We addressed many of them in previous debates, so I will not hear from them. The way they react speaks volumes.
Madam Deputy Speaker (Dame Rosie Winterton)
Order. The Minister did not mean to say “untruths”, did he?
Nigel Huddleston
I take back that comment, Madam Deputy Speaker. There were some presumed facts that require challenge, as we saw earlier in the week. At one point, the shadow Chancellor claimed that the forecasts were going to be £40 billion smaller. The shadow spokes- people know full well, because it is stated by the OBR, that economic growth by the end of the forecast period is higher than it was in the spring forecast. [Interruption.] I am sorry if I have to explain that to Opposition Members—if a number is bigger than the previous one, then that means growth and not decline. We could possibly forgive that mistake if it were not made by the people trying to become the Chancellor of the Exchequer. It is extraordinary incompetence—a £55 billion difference is not something we can easily ignore.
As my hon. Friend the Chief Secretary to the Treasury pointed out earlier, we are pleased that the Opposition are supporting the national insurance cuts, but to combine that with their commitments on spending, to the tune of £28 billion, and then claim that there will not be an increase in debt is farcical. It is not true; we know that will happen, and we are seeing the same old Labour. As Margaret Thatcher said:
“The problem with socialism is that you eventually run out of other people's money.”
That was true then, and it is true now.
I thank hon. Members for their contributions. The Bill delivers a tax cut for 29 million working people, and I am pleased that it will be getting support from across the House.
Madam Deputy Speaker (Dame Rosie Winterton)
I join the two Front Benchers in saying how deeply sad it is to hear the news that Alistair Darling has died. He was an incredibly well-respected, thoughtful and kind man who was devoted to public service. I know all Members will want us to send their condolences to his family.
Question put and agreed to.
Bill accordingly read a Second time; to stand committed to a Committee of the whole House (Order, this day).
Further proceedings on the Bill stood postponed (Order, this day).
National Insurance Contributions (Reduction in Rates) Bill: Money
King’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the National Insurance Contributions (Reduction in Rates) Bill, it is expedient to authorise the payment out of money provided by Parliament of any increase in the sums payable under any other Act out of money so provided that is attributable to:
(a) reducing the main primary percentage for Class 1 primary national insurance contributions to 10% (and reducing the percentage specified in regulation 131 of the Social Security Contributions Regulations 2001 to 3.85%),
(b) reducing the main Class 4 percentage for Class 4 national insurance contributions to 8% from tax year 2024-25, and
(c) removing the requirement to pay Class 2 national insurance contributions from that tax year.—(Mark Jenkinson.)
Question agreed to.
National Insurance Contributions (Reduction in Rates) Bill
Thursday 30th November 2023
(1 year ago)
Commons ChamberRead Full debate National Insurance Contributions (Reduction in Rates) Act 2023 View all National Insurance Contributions (Reduction in Rates) Act 2023 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 30 November 2023 - (30 Nov 2023)
The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)
I remind Members that, in Committee, Members should not address the Chair as Deputy Speaker. Please use our names when addressing the Chair. Madam Chair, Chair, Madam Chairman or Mr Chairman are also acceptable.
Clause 1
Reduction of Class 1 main primary percentage
Question proposed, That the clause stand part of the Bill.
The First Deputy Chairman
With this it will be convenient to consider the following:
Clauses 2 to 5 stand part.
The schedule.
The Financial Secretary to the Treasury (Nigel Huddleston)
Thank you, Dame Rosie, for that timely reminder. I shall briefly outline the clauses in the Bill. Clause 1 amends the Social Security Contributions and Benefits Act 1992, which applies to Great Britain, and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 to reduce the main primary percentage of class 1 national insurance contributions paid by employees from 12% to 10%. That is a tax cut worth an average of around £450 per annum for employees. Clause 2 amends the Social Security Contributions and Benefits Act 1992, which applies to Great Britain, and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 to reduce the main class 4 NICs percentage paid by the self-employed from 9% to 8%. That is a tax cut worth an average of around £350 per annum for the self-employed.
Clause 3 amends the 1992 Acts that apply to Great Britain and to Northern Ireland to remove the obligation on persons to pay class 2 obligations when their earnings exceed the lower profit threshold of £12,570 per annum. The small profits threshold is retained, with the result that self-employed persons with profits from a trade, profession or vocation above that level will be treated as having paid class 2 NICs and will continue to gain entitlement to contributory benefits.
Clause 4 introduces the schedule, containing transitional and consequential provisions. The schedule to the Bill includes changes that are consequential on clauses 1 to 3 of the Bill. The principal changes are the introduction of a blended rate of primary class 1 national insurance contributions for directors for the 2022-23 tax year and consequential repeals arising from clause 3 that removes the requirement to pay class 2 NICs. Finally, clause 5 gives the short title as the National Insurance Contributions (Reduction in Rates) Act 2023.
James Murray (Ealing North) (Lab/Co-op)
As we made it clear on Second Reading, we will be supporting the measures that it includes, I thank the Minister for setting out the details of its clauses. As we heard, clauses 2 to 5 and the schedule to the Bill implement a reduction in the class 4 rate, a removal of the requirement to pay class 2 contributions and various transitional and consequential provisions.
I wish to ask the Minister some questions about how the measures in clause 1 will operate and what their overall impact will be. May I put it on record that, as ever, I am grateful to the Chartered Institute of Taxation for sharing its views with us on the clauses in this Bill?
Clause 1 makes it clear that the Bill’s measures will apply from 6 January 2024. Of course, we want people to benefit from these changes as quickly as possible given the pressures that families across Britain are facing right now. We recognise though that with the Government having left this policy change until late November to announce, there is not much time left for payroll software to get ready for 6 January. I would be grateful if the Minister could confirm whether HMRC accepts that some employers’ payroll software will not be ready in time for 6 January. If so, how many employers does he anticipate being affected? In such cases, employers would have to pass on the benefit of any changes to employees in subsequent months. I would be grateful if the Minister could confirm how many employees he expects will be affected by this delay, and how long he expects them to have to wait to receive the delayed benefits.
Furthermore, we understand that many operators in the retail sector have a moratorium on releasing new software updates in the November to January period, given what a busy time that is for them. I would be grateful if the Minister could confirm whether he is aware of that. If so, what meetings has he already had with retailers to discuss this point and, if so, what has the outcome of those meetings been?
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
Before I come to my point, may I add my own condolences and those of my party to the family and friends of the former Chancellor, Alistair Darling? Clearly, we were on very different sides of the fence, particularly on independence, which was heavily contested nine years ago, but he was a towering intellect and a very important figure in Scottish public life. As I say, we pass on our condolences to his family and friends.
My question is also on the operation of clause 1. HMRC has stated to the Treasury Committee that it is unable to cope with inquiries either in writing or by phone at the moment, and that it is under severe pressure. I, too, would like to know how the clause will be given effect by 6 January, and what measures the Government are taking to ensure that that happens.
Nigel Huddleston
I thank hon. Members for their questions. I can assure them that HMRC is engaging with industry and providing relevant guidance to support it to deliver the changes on time. We expect the majority of companies to be able to do so, particularly in this era, when many of the changes can be made on various systems. The Government are confident that the majority of software developers will be able to make changes to their payroll software in time for the 6 January deadline.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clauses 2 to 5 ordered to stand part of the Bill.
New Clause 1
Review of effects of Act
“(1) The Treasury must lay before the House of Commons on the day on which this Act is passed a report which sets out forecasts of—
(a) the changes to the amount of national insurance contributions deducted from the annual income of a full-time worker earning the national living wage as a result of the measures in this Act over the period 2023/24 to 2027/28, and
(b) a comparison with the changes to the amount of national insurance contributions deducted from the annual income of a full-time worker earning the national living wage as a result of the thresholds for payment of national insurance remaining frozen over the period 2023/24 to 2027/28, rather than rising in line with CPI.
(2) The report in subsection (1) should also set out the costs to (i) businesses, and (ii) government , of implementing the changes in this Act, and compare them to the costs of—
(a) implementing a 1.25% point increase in national insurance contributions in April 2022, and
(b) implementing the reversal of the increase in paragraph(a) in November 2022.”—(James Murray.)
This new clause would require a review of the effects of the Bill if enacted over the period 2023/24 to 2027/28, on someone earning the national living wage, compared with the effect of national insurance thresholds being frozen, and a comparison of the expected implementation costs of this Bill with those of implementing and repealing the Health and Social Care Levy Act 2021.
Brought up, and read the First time.
James Murray
I beg to move, That the clause be read a Second time.
Thank you, Dame Rosie, for the chance to address our new clause 1. Before I do so, may I ask whether the Minister would commit to writing to me with detailed responses to the questions that I raised in our debate on the previous group? We did not get them in his response just now, so perhaps he will commit to writing to me with them as soon as possible.
Our new clause would require the Government to be honest about the impact of the changes made by the Bill when considered not just in isolation but in the wider context. Subsection (1) would require the Treasury to explain how the taxpayer or someone earning the national living wage would be impacted by the combined effects of the changes in the Bill and the freezing of national insurance thresholds at their 2022-23 level over the period 2023-24 to 2027-28.
We asked for confirmation of that, because our analysis shows that a full-time worker on the national living wage will pay an estimated £70 more in national insurance next year, even with the cut in the Bill, as a result of the thresholds being frozen. What is more, the full impact of the Government’s freezing of national insurance thresholds will be that by 2027-28—again, even with the cut in the Bill—a full-time worker on the national living wage will pay £160 more a year in tax. Can the Minister confirm whether he accepts our calculation? If he does not, I assume that he will accept our new clause and publish the data; otherwise, people will rightly be left wondering what it is the Government have to hide.
Should the Government choose to accept our new clause, subsection (2) would require them to come clean on some of the implementation costs to businesses and the Government of what the Chartered Institute of Taxation described last week as the “national insurance roller-coaster” in recent years.
If the Government are not prepared to accept our new clause, perhaps the Minister will again commit to writing to me with details of the implementation costs of the changes made by the Bill, of the 1.25 percentage point increase in national insurance contributions in April 2022, and of the reversal of that increase in November 2022. If he will not, I would be grateful if he could explain why not, again to prevent people from wondering what it is the Government have to hide.
Nigel Huddleston
I hope that I can give the hon. Member some assurances. A worker on the national living wage will save £165 next year from the national insurance cut, and thanks to above-inflation increases in the NIC starting threshold since 2010, a full-time worker on the national living wage will pay £400 less in national insurance contributions next year than they otherwise would have. That includes the historical increase to the national insurance contributions starting thresholds in July 2022 by this Government—the largest ever increase to a personal tax starting threshold. The national minimum and living wage rates are set on advice from the independent Low Pay Commission. Rates for 2025-26 and beyond will be set in future years.
The cost to HMRC of implementing and reversing the health and social care levy was £5 million. The cost to implement this rate reduction is not yet known as the project to deliver the change is in delivery, though HMRC does not expect it to be significant. In answer to the hon. Gentleman’s previous question, I will be delighted to write to him.
James Murray
I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
Schedule agreed to.
The Deputy Speaker resumed the Chair.
Bill reported, without amendment.
Third Reading
Nigel Huddleston
I beg to move, That the Bill be now read the Third time.
This is a short and relatively straightforward Bill, but it is an important one, as it will make a meaningful difference to many households by putting money in the pockets of millions of people in every constituency in this country. I thank the Treasury officials, Clerks and everyone involved in getting the Bill to this point so speedily. I sense the enthusiasm in the House to pass it, and for us to get back to our constituencies and spread the good news. I will therefore end my comments there and commend the Bill to the House.
James Murray
As the Opposition have made clear throughout today’s proceedings and on many other occasions, we believe that taxes on working people are too high. We have long said that we want taxes on working people to come down when they can be cut in an economically and fiscally responsible way.
While we confirm our support for the Bill, we repeat our call for the Government to be honest with the British people. The Conservatives should be honest about the inescapable truth facing families across the UK: the tax burden in Britain is still on course to reach its highest level since the second world war. As a result of the Conservatives’ decisions on personal taxation in this Parliament, households will be left facing an average tax rise of £1,200. Looking across all taxes, we now know that, by the end of the decade, they will have risen by the equivalent of an astonishing £4,300 for every household in the country.
As we have set out today, a clear pattern runs through the Conservatives’ time in office: whatever they do, they keep making working people worse off. While we support the Bill, it is clear that the Conservatives are incapable of delivering what Britain truly needs: a plan to get the economy growing and make working people better off. That is what Labour is offering. In last week’s debate on the autumn statement, when discussing the general election, the Economic Secretary to the Treasury said that we should “bring it on”. On that point, we whole- heartedly agree.
Drew Hendry
As we have pointed out, the Bill does not go nearly far enough to help people facing a bitter cost of living crisis. We urge the Government, after introducing this tiny measure, to go back and consider those people who are suffering from high food costs, seeing their mortgages and rents increase, and—most tellingly, as temperatures plummet—facing a winter with higher energy bills than last year. This is a hard time for families across the nations of the UK, and in Scotland they deserve better. They should get that through the powers of independence being returned to Scotland.
Question put and agreed to.
Bill accordingly read the Third time and passed.
HM Prison Bedford
(1 year ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Mohammad Yasin (Bedford) (Lab)
I am pleased to have secured this Adjournment debate on conditions at His Majesty’s Prison Bedford. I thank the Commons Library, the Howard League, the Prison Officers Association, the residents living by the prison, the Prison Reform Trust, the independent monitoring board, Victim Support and Charlie Taylor for their helpful information and data, which will inform the debate.
HMP Bedford, which is also a young offenders institution, was inspected on 9 November, and the findings by His Majesty’s chief inspector of prisons are shocking—shocking, but not surprising. In 2018, I was granted an urgent question when Bedford Prison was last issued with an urgent notification. The same problems —inexperienced staff, extreme violence, overcrowding, drug use, mouldy and filthy conditions, self-harm, and rat and cockroach infestations—are cited in the last report and the recent report. It is as heartbreaking as it is deeply frustrating to see the degrading and totally unacceptable conditions in which prison officers, staff and residents are expected to live and work.
HMP Bedford continues to have the highest level of violent assaults against staff in adult male prisons in England and Wales. Self-harm and drug use is excessive. I am sorry to say that the amount of force used by staff was also found to be high. Inspectors saw examples of inappropriate and excessive force alongside unprofessional behaviour. Many prisoners are locked in their cells for up to 23 hours a day, and even the minority who are in education or training find that it is often cancelled because there are no staff to cover those services.
I have been told that prisoners sleep with covers over their mouth to stop cockroaches crawling in while they sleep. The inhumane segregation unit, once described as a rat-infested dungeon, was supposed to be shut down years ago, but endless delays to the new unit mean that it is still in use. Will the Minister explain what he believes prisons are for? Locking people away in those conditions does not keep society safe. Where is the rehabilitation in the system?
Who can leave those conditions a better person, or less likely to reoffend? Overcrowded, squalid and unsafe prisons will never help or allow people to turn their lives around and move on from a life of crime and hurting others. According to the report, staff and leaders are doing their best, and the POA has told me that staff at Bedford feel safer now than they did when the last urgent notification was issued. However, while many problems, such as problems with staff retention, inadequate prison capacity, too few and inexperienced staff and too much staff churn at leadership level, are symptomatic of a wider crisis, questions must be asked about why HMP Bedford has not learned the lessons of the past or been able to implement sustainable changes.
As His Majesty’s chief inspector of prisons said in his report, many of the issues found at Bedford
“reflect wider problems across the estate.”
HMP Bedford is the fifth prison in a year to receive an urgent notification and the third reception prison. That is a damning indictment of not just the prison system, but the whole British justice system. Prisoners on remand are waiting far too long for trials because of the court backlog, which means that victims are waiting too long and are not getting justice.
In an ideal world, Bedford Prison would have been shut down years ago. It is a Victorian jail in the middle of an urban area and totally unfit for purpose. Residents living by the prison have had to tolerate unacceptable disturbances for years, with intruders breaking and entering gardens to traffic drugs over the walls and regular drone flights delivering contraband. The noise and disturbance from prisoners in solitary confinement cells mean that nearby residential windows are kept closed and some constituents have reported hearing sexual assaults and violence left unchecked. However, because the prison estate is full to the brim, it looks as though a more modern appropriate prison to detain offenders is not an option, even though it should be.
Despite all that, the Government have not improved the conditions, because they cannot or will not tackle the root causes of the persistent issues at HMP Bedford. Currently, 377 male prisoners are on roll, although the “in use certified normal accommodation” number is 229. More than 45%, or 170 men, are awaiting trial. Some reports say that that figure is higher, so I would be grateful if the Minister clarified the number of men currently waiting to be put before a judge or magistrate and how long the average wait is for a trial date.
It is totally unacceptable that prisoners languish on remand for months and even years in an overcrowded prison, all because this Government have decimated the criminal justice system. The Crown court backlog has hit a new record high of more than 65,000 cases and the magistrates court backlog is also rising. Does the Minister agree that his Government’s target of reducing the backlog to 53,000 by March 2025 is very unlikely to be met?
Serious questions are being asked about whether Bedford can remain as a remand prison. Will the Minister consider a complete re-role of the prison? Our prisons are so overcrowded that judges are being asked to delay sentencing convicted criminals. In HMP Bedford, 46 men have been convicted but are awaiting sentencing. How is that delivering justice for victims or perpetrators?
We will no doubt hear about more plans, promises and initiatives to turn the place around, but I have heard them all before. We have had the 10 prisons project and the prison performance support programme, just two years ago, where Bedford Prison was supposedly going to
“benefit from a new intensive support programme to help challenging jails to improve safety and rehabilitation.”
All have failed.
Will the Minister explain why, after years and years of action plans and interventions, the problems at the prison persist? What will his Government do differently this time to resolve the distinctive and systemic failures at HMP Bedford and across the wider prison estate? What will he do to support the governor to manage an overcrowded prison, to implement basic levels of cleanliness and to tackle a toxic culture, where prisoners are locked up for too long in squalor and do not seem to bother trying to keep their surroundings clean?
In 2017, when HMP Liverpool was described as having the “worst living conditions” ever seen by inspectors, the prison was successfully turned around through a significant population reduction. Huge investment and resources were channelled towards the prison. Bedford needs that level of sustainable investment now. In the context of the current capacity crisis, however, will the Minister confirm whether such a decanting measure is even possible? There is absolutely no excuse for any prison not to meet basic standards of decency.
The quality of leadership is vital. Governor Ali Barker has not yet been there a year, and I hope she gets all the resources she requires to achieve the higher standards needed at HMP Bedford. Meanwhile, nearly half of the prison officers working at the prison have less than two years’ experience. Being a prison officer is one of the most challenging of the uniformed professions. What plans do the Government have to support prison officers and tackle the huge lack of experience in the profession? Leadership and experience are key to improving the outcome at HMP Bedford, but leadership in Government also matters. Since the last urgent notification five years ago, there have been 10 changes in Prisons Minister. Amid such chaos and churn, there cannot be a serious plan for reforming the penal system and delivering justice for victims.
The decision to privatise the estates maintenance contracts has had a particularly detrimental impact on older establishments such as Bedford, where the maintenance needs are substantial. Those contracts were poorly funded and understaffed, and basic routine repair and maintenance work has suffered. What plans has the Minister to improve that and, at the very least, demand a better service from those contracts?
Full use of the recently announced measures, including the emergency release scheme and provision to delay the sentencing of individuals on bail, should be made in the Government’s response to the urgent notification. A presumption to suspend short sentences would also relieve pressures on reception prisons once the relevant legislation has been passed and enacted. Those measures are not about being tough on crime, but about implementing a justice system that works for victims—because today, the justice system is failing victims.
As Bedford Prison serves a number of courts, including in Bedford, Luton and London, there is a lot of intake churn. Because Beford hosts a prison, my constituents are too often the victims of reoffending criminals in the area, and many are understandably losing faith in the justice system’s ability to deliver justice to victims of crime, including violent crime.
The thorny question of what sentencing is for was tackled by the Criminal Justice Act 2003, which codified for the first time the principles and purposes of sentencing: the punishment of offenders; the reduction of crime, including reduction by deterrence; the reform and rehabilitation of offenders; and the protection of the public. Apart from punishing prisoners—remember that many Bedford inmates have not yet been convicted of a crime—no other remedies in that list are being met.
A report by Victim Support cites a study conducted for the probation service that reveals that 94% of victims of crime said that the most important thing to them was that the offender did not commit the crime again. The same study found that 81% would prefer an offender to receive an effective sentence rather than a harsh one. The first recommendation of the report is:
“Effective rehabilitation has to be at the heart of the prison system.”
The second recommendation says:
“Though victims accept that any reforms have to be cost-effective, if individual sentencing decisions are seen to be motivated by concern for cost more than justice, they will not inspire the support of victims or the general public.”
Victim Support backs the reduction in short-term prison sentences, but wants evidence-based alternatives to stop reoffending put in place before they are abolished. It wants robustly enforced community sentencing to be applied as a meaningful and effective alternative to custodial sentences. It says that if alternatives such as drug or alcohol treatment programmes, or treatment for mental health problems, are ordered, they need to be adequately funded and proven to prevent reoffending.
The conditions at HMP Bedford, and indeed across the prison estate, are not conducive to the rehabilitation of prisoners—far from it. In fact, the recent urgent notification found that the preparation for release was “Not sufficiently good”. What will the Minister propose in his response to His Majesty’s chief inspector of prisons that will finally turn Bedford Prison around, so that I am not standing here again next year asking the same questions? Will he find a solution that finally puts victims at the heart of the criminal justice system, a big part of which is to ensure that prisons rehabilitate offenders, rather than create reoffenders and more victims of crime?
The Minister of State, Ministry of Justice (Edward Argar)
If I may briefly crave your indulgence, Mr Deputy Speaker, I wish to put on the record my tribute to the former Chancellor of the Exchequer, Alistair Darling, on the news of his sad passing. He was a man of intellect, integrity and ability, and had a deep commitment to public service. He will be missed by all in this House. We send our condolences and sympathies to his family.
I am grateful to the hon. Member for Bedford (Mohammad Yasin) for securing this important debate. As he knows, I am deeply concerned by the recent findings of HM inspectorate of prisons at HMP Bedford, particularly in regard to safety and living conditions, and I have been clear that the situation needs to improve quickly. This is, as he set out clearly, the second time that an urgent notification has been invoked at HMP Bedford. I agree that the circumstances leading to it are not acceptable. Before I turn to the specifics that he raised about the situation at Bedford, I hope that he will allow me a moment to remind the House of the context—his speech rightly ranged more widely than Bedford alone—and of the steps that we are taking to improve prisons and justice across the country, as my right hon. and learned Friend the Lord Chancellor set out in his statement of 16 October.
On prison capacity, the House will be aware that we are building six new prisons as we create an additional 20,000 places to deliver the biggest prison expansion in over a century. We have already delivered just shy of 6,000 of these additional places, and the brand-new category C resettlement prison, HMP Fosse Way, opened its doors in May this year and will house up to 1,715 prisoners. At the same time, we are creating thousands of places through the expansion of prisons with additional house blocks and major refurbishments at existing prisons, and by rolling out rapid deployment cells across the estate—the first 380 or so have already been delivered at six sites.
The hon. Gentleman raised a specific point about Bedford. There are no plans to re-roll Bedford Prison at this point. I appreciate that he may be disappointed by that, but it is important that I am open with him, as I will seek to be throughout my speech. I would gently say, in respect of prison capacity, that we are getting on with delivering that increase in modern, effective rehabilitative prison places through those six new prisons. By regrettable contrast, the plans under Jack Straw in the last Labour Government were to build 7,500 places in three Titan prisons, and, to the best of my recollection, they never got built at all.
In respect of staffing, I join the hon. Gentleman in rightly paying tribute to all those who work in our prisons—prison officers and all the staff in a range of capacities—for their work. Since March 2017, we have also increased the number of prison officers in public sector prisons by 4,655, and we made a commitment in 2021 to hire up to 5,000 prison officers across public and private prisons by the mid-2020s. As he alluded to, the increase in numbers means that, as we grow the workforce, which is a positive thing, we are also bringing new joiners and staff to the prison service, who will, by logic, have fewer years of service under their belt. It is important that we continue doing what we are doing to retain experienced officers alongside them as part of their mentoring and the development of their skills.
We have improved starting salaries for officers, which have risen from £22,000 to £31,000 since 2019. The staffing picture is improving in prisons across the country: in the 12 months from last September—the latest figures I have—the number of officers has increased by 1,441 full-time equivalents. The hon. Gentleman is absolutely right to highlight that we are also improving the retention of staff: the resignation rate among frontline prison officers is down by almost three percentage points compared with last year. There is more to do, but that is progress, and it is important that we continue on that trajectory.
The hon. Gentleman also rightly highlighted prison safety, which I will address in a broader context before I turn to his local prison. We continue to take the necessary action to make our prisons safe both for frontline staff and for prisoners. The overall rate of assaults is 26% lower than prior to the pandemic. Of course, every assault is one too many, and we continue to work to improve the security of our prisons and reduce violence and the number of assaults within them, but I highlight that degree of positive progress to him.
The measures that we are putting in place to reduce violence in our prisons estate include our £100 million security investment to clamp down on the weapons, drugs and mobile phones that fuel violence and crime behind bars, and the continued rollout of PAVA—a synthetic pepper spray—in the adult male estate to protect staff and prisoners from incidents of serious violence, alongside de-escalation training for officers, which is also playing an important part.
Before I turn specifically to Bedford, let me address some of the broad-brush points that the hon. Gentleman made. He was right to highlight the five key purposes of sentencing. I highlight to him—although I am doing so from memory, so I will write to him to correct myself if I am incorrect—that reoffending is down by 9%, so again, that is working, but there is always more to do. He is right about the importance of substance misuse treatment programmes in getting people off substances that may drive their criminal behaviour. Their importance extends beyond prison, to when people are on release. My recollection is that there is a 54% reduction in reoffending if those programmes are continued in the community, the treatment is sustained, and the NHS, local authorities and prison authorities work together to make sure that it is in place. We are seeing positive outcomes there.
The hon. Gentleman quite rightly talked about the approach to sentencing at headline level, and the challenges of short sentences. They are often so short that we cannot get to grips with the underlying challenges that an individual faces, but long enough to break fragile ties and affect relationships, jobs and accommodation. I am very pleased that, on this issue, he appears to be following the approach set out by the Lord Chancellor, who suggests tougher sentences for those who commit the most heinous crimes, and tough community sentences as an alternative to short custodial sentences, though obviously discretion will rest with the sentencer. Also, while there should be a clear focus in the custodial estate on people paying their debt to society, they should also be able to make positive life choices about what they intend to do when they come out of prison, so that they can make a positive contribution and live life on the straight and narrow.
I turn to the issues that the hon. Gentleman raised about his local prison, HMP Bedford. As he set out, His Majesty’s chief inspector of prisons has highlighted significant concerns about the condition of cells and overcrowding at Bedford. I reassure him that I am treating that with the utmost seriousness. He asked a number of questions about measures that we will put in place in response to the urgent notification. In accordance with our usual protocol on responding to the inspectorate, the Lord Chancellor will publish his response to the urgent notification, and the action plan, no later than 15 December; there is 28 days in which to do that. That will be the detailed response. I am grateful to the hon. Gentleman for the time he spared me earlier this week for a conversation, in which he set out and amplified his key concerns. I hope that I can engage with him as we finalise the action plan. I also highlight my gratitude to the governor for giving me her time when we spoke last week.
The findings are, as the hon. Gentleman said, deeply concerning. Notwithstanding the fact that there will be a formal response within 28 days, I can update him—and indeed you, Mr Deputy Speaker, and the House—on a number of immediate actions that we have taken to drive improvement. These include providing additional resourcing support to the prison, equivalent to 15 additional prison officers, to improve the prison’s safety and security, and to improve the regime; I think the hon. Gentleman asked for additional support for the governor. We are undertaking a cell cleaning and painting programme to improve the physical environment, and completing a joint audit with our maintenance contractor to identify works and key priority areas, so that we can ensure that the work is done. We are introducing a cell conditions agreement to ensure that all cells are in good condition before they can be occupied. Decency checks to address concerns about cleanliness will be overseen by the governor; that will help directly with improving living conditions.
A working group has been set up, led by the governor, to understand issues regarding fair treatment. The hon. Gentleman raised that point when we spoke. The group will particularly focus on allegations of racism and other inappropriate behaviours. He has highlighted his concerns on that issue to me. We have made a number of new senior appointments at the prison; they include a new head of violence reduction, a new head of reducing reoffending, and a new head of education, skills and work.
His Majesty’s chief inspector noted in his letter to the Lord Chancellor that Bedford has
“consistently failed to provide good outcomes for prisoners”
since the inspection in 2016. The series of concerning inspections at Bedford is, of course, deeply troubling, and it may be useful if I briefly set out the improvements that we have made in response to previous inspection reports. Of course, they clearly have not resolved all the underlying issues, hence the hon. Gentleman’s securing this debate, but it is important that we highlight what has been done.
In response to His Majesty’s chief inspector of prisons’ first urgent notification about HMP Bedford in 2018, a comprehensive safety strategy was implemented to support violence reduction, and a dedicated young adult unit was introduced to provide targeted support for prisoners and upskilling for staff. That resulted in lower levels of violence for that demographic group. We also provided additional staffing, including a safety hub manager, and a dedicated use of force co-ordinator in the safety team. In addition, we upgraded the head of safety post from a band 7 to a more senior band 8. Refurbishments also took place to improve decency and living conditions; they included improvements to showers and flooring.
HMP Bedford has also received support from the prison performance support programme, which offers tailored support for a maximum period of 18 months to prisons that face numerous complex challenges. The support for Bedford included over £1 million of additional funding focused on improving security and living conditions. Following the taking of those steps, the inspectorate undertook an independent review of progress in 2019 and found that although there had been some progress since 2018, progress on many of the inspectorate’s recommendations was insufficient. Inspectors found that despite the pandemic, improvements in living conditions had been made, including extensive, good-quality refurbishment of the communal shower rooms. However, previous concerns about violence and safety persisted.
In early 2022, the inspectorate visited Bedford to undertake a full inspection. It noted improvements at the prison, including strong leadership and an improved prison culture. Further improvements had also been made, such as investment in new windows and flooring and the installation of enhanced gate security. Alongside this, the capacity of the prison had been reduced by 76 spaces to allow residential accommodation to be refurbished. The inspection recognised that challenges remained, but it acknowledged that the prison was heading in a positive direction, and the oversight that followed the urgent notification of 2018 was removed from Bedford in October last year.
Even after the removal of urgent notification oversight, Bedford continued to receive support, for example through an ongoing compliance project, in which management checking systems were built to ensure that rules and regulations were fully followed by both staff and prisoners. It is therefore deeply disappointing that the latest inspection concluded that standards had slipped back at the prison, as the hon. Gentleman said, and a second UN was issued. It is also worrying that the contents of that urgent notification, which I considered very carefully, were, to my mind, similar to those of the 2018 notification. As I say, I am very grateful to the hon. Gentleman for discussing these matters with me earlier this week, and I hope that he will feel free to come to me with any specifics that he would like considered in the next few weeks, as we put together our response—and, indeed, if he would like more regular engagement as we work through what needs to be done to improve the prison in his constituency.
When we met, the hon. Gentleman raised a couple of points that I would like to address. He raised his concern about the impact on constituents who live near the prison; he mentioned people entering the gardens of properties that neighbour the prison in an attempt to throw things over the prison wall, and broader impacts. Speaking as a constituency MP, I entirely understand his concern when constituents bring him those issues. It is right that he makes those points to me as the Minister, and to the House more broadly. The prison has worked to enhance partnerships with both the local council and the police, so that it can tackle such behaviour; as part of that, the prison checks directly, on a weekly basis, on any complaints from residents, and follows up on them, if they have not been raised with Bedfordshire police. If it is helpful to him, he may wish to raise specific issues with me outwith this Chamber, in confidence.
The hon. Gentleman touched on his concerns about the inexperience of some staff at Bedford. Notwithstanding the benefits of increasing the number of staff in prison officer roles, we recognise the need to continue training rigorously. There is now a learning and capability manager in place to directly support all new staff at HMP Bedford. We have also provided for a full-time welfare post for HMP Bedford staff, so that they have that support, independent of local care team arrangements, should they need it. Having previously deployed standards coaching teams at the prison, I intend to redeploy them in the new year, to again help drive progress.
The HMIP findings are of course deeply concerning, and we are committed to improving the conditions at Bedford and at the other prisons where UNs have been triggered over the past year. My right hon. and learned Friend the Lord Chancellor will be monitoring the situation at Bedford very closely in the coming weeks and months to ensure there is sustained improvement. Although I have had this specific brief for only about two and a half to three weeks, the hon. Member for Bedford will have had experience of dealing with me in other ministerial roles, and I hope he will recognise that just as I did in those roles, I will seek to work collaboratively with him where I can. We share the desired outcome of making improvements.
I also confirm on the record that the Lord Chancellor’s response to the urgent notification will be published by 15 December, as required. The hon. Gentleman will be able to obtain it, but I will make sure that a copy is sent to him for his records. A wider-ranging full action plan will also be developed in the longer term to address all HMIP recommendations and hopefully tackle some of the long-term underlying challenges that he has highlighted. I anticipate that that will be published in March 2024, but I will inform him when we have a more precise timing for that. I am grateful to him for bringing this important issue to this Chamber for debate, and look forward to working with him and the prison in the coming months to address the issues that have been highlighted.
Mr Deputy Speaker (Sir Roger Gale)
Following the Minister’s opening remarks, I place on record my own sadness on learning of the death of Alistair Darling. He was a distinguished Member of this House, and one who I regarded from the Opposition Benches as a friend. The political landscape of the United Kingdom will be the bleaker because of his loss.
Question put and agreed to.