No-deal Brexit: Short Positions against the Pound

Andrew Bridgen Excerpts

Monday 30th September 2019 Commons Chamber

[Mr Clarke]

No.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my hon. Friend agree that speculation in the future movements of markets or currencies—some people think they will go up, others that they will go down—is a sign of a healthy free market economy, and that there is no speculation in the direction of travel of the shadow Chancellor’s favoured economic model in Venezuela, where the bolivar continues to crash, which is hardly surprising because inflation there is running at about 1 million per cent. this year?

[Mr Clarke]

My hon. Friend puts it with his customary robustness, but he is absolutely right that the real threat to the economy, to the strength of sterling, to our competitiveness and to jobs and living standards across the country would be a series of bad decisions made by a reckless, hard-left Labour Government.

High Speed 2

Andrew Bridgen Excerpts

Wednesday 10th July 2019 Westminster Hall

[Andrea Leadsom]

The hon. Gentleman mentioned that to me yesterday, and I am gravely concerned. As all right hon. and hon. Members will know, I am extremely unhappy at the prospect of non-disclosure agreements preventing whistleblowers from coming forward with information that is vital to the public interest or their own personal interest. People should not be gagged under any circumstances.

[Andrew Bridgen (North West Leicestershire) (Con)]

I congratulate my right hon. Friend on securing this debate on a topic we have discussed many times. I voted against HS2 at every opportunity in the House of Commons. In 2013, I predicted that it would cost in excess of £100 billion. The then Secretary of State laughed, and I think he was quite right to—it is clear that the project will be far in excess of £100 billion.

Does my right hon. Friend recall the report by Sir John Armitt in August 2018? His committee stated that, given that hubs are no longer in the centre of cities but on the outskirts, an extra £43 billion of infrastructure spending would be required to make use of the current hub sites that have been chosen. That has not been programmed into the budget at all.

[Andrea Leadsom]

My hon. Friend makes an important point about the lack of point-to-point movement in HS2. Passengers do not end up at the Bullring in Birmingham, or in the west end of London; they just end up somewhere on the outskirts wondering how on earth they will get to where they want to.

The business case for HS2 is seemingly not based on improved journey or improving capacity on journeys between the cities along the line of route. That was alarmingly confirmed by the chief executive of HS2 Ltd, Mark Thurston, in November last year, when he appeared before the all-party parliamentary rail group. At that meeting, Mr Thurston remarked that to remain on time and on budget, HS2 Ltd was considering fundamental changes to the project, including, but not limited to, reductions in the speed that HS2 trains will operate at and reductions in the total number of trains per hour.

With fewer and slower trains, it is hard to understand how the business case can be maintained, given the growing lack of incentive for passengers to choose to take a more expensive HS2 train over a classic service. I have asked HS2 Ltd to confirm whether it is modelling the impact of such changes, but so far I have been unable to obtain a definitive response.

As the former chairman of HS2 Ltd, Sir Terry Morgan, said when he appeared before the Economic Affairs Committee on the 22 January, nobody, not even he as a former chairman of the project, can say with any certainty what the final cost of HS2 will be. That cost has gone up and up over the years. In February 2011, we were told that HS2 would cost £37.5 billion. By January 2012, that figure had crept up to £40.8 billion. In June 2013, we were told the total cost had risen to £50.1 billion. Today, based on the funding envelope set out in November 2015 —not an estimate of the cost but rather the money available from DFT for the project—we are told that HS2 will cost the British taxpayer £55.7 billion. That is £55.7 billion for a single train line.

We have not actually seen a comprehensive breakdown of the costs for the full Y network of HS2 since 2013, although the National Audit Office has more recently said that, at the time of the 2015 spending review, the full cost should have been estimated at £65 billion. HS2’s land and property budget alone is expected to be five times greater than originally forecast, but that is of no help whatsoever to my constituents. I have had cases in South Northamptonshire where family farms have been cut in half, people have been forced to sell their businesses at a vastly undervalued rate and one constituent has been forced out of the family home that she had lived in for many years through a lifetime tenancy under the Agricultural Holdings Act 1986. There are countless examples where I have had to intervene time and again on behalf of my constituents, due to the insensitive behaviour and slow engagement of HS2.

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[Antoinette Sandbach (Eddisbury) (Con)]

It is a pleasure to follow the hon. Member for Luton North (Kelvin Hopkins). I am grateful to my right hon. Friend the Member for South Northamptonshire (Andrea Leadsom) for securing this important debate.

The HS2 business case is clearly deeply flawed, as my right hon. Friend pointed out. When I was first elected, I was in two minds about HS2. I could see the damage it was doing to my constituency, but I thought it might be a worthwhile project for the country, if its administrators were savvy enough to resolve some local issues. Four years on, my view has shifted. The continuing and unceasing lack of care, interest or attention that HS2 pays to my constituents and my community have destroyed any faith that it can deliver the benefits that it promised.

Each individual failure is compounded to create an image of an organisation riven by incompetence and unable to deliver the project. For example, take-up of the need-to-sell scheme for phase 2b continues to be extremely low. The number of new applications has not exceeded double figures in the last nine months. Of applications placed before the panel, only a third have been accepted, whereas half the need-to-sell applications made in phases 1 and 2a were. The process remains time-consuming, and involves frequent requests for additional information and documentation. In spite of revisions, the guidance is still insufficiently detailed to enable applicants to understand fully what information and evidence is required for a successful application.

Further confusion has arisen in respect of the atypical or special circumstances route, which is intended to supplement the discretionary property schemes and provide a safety net where the specific requirements of existing schemes cannot be met. Departmental officials taking part in local public engagement events have been advising applicants that they should be applying under the atypical special circumstances scheme because of their particular situation, but applicants are then informed by HS2 that it is not available to them, as they are eligible to apply under one of the discretionary schemes.

Applicants understandably expect the advice that they are given by officials during public engagement events to be accurate and correct. The fact that that does not appear to be the case causes further unnecessary anxiety and frustration for applicants, as well as reinforcing the sense of distrust in HS2. It gives the impression that the right hand does not know what the left hand is doing.

[Andrew Bridgen]

Does my hon. Friend agree that HS2 appeared to be trying to create the perception that the project was beyond the point of no return—that we cannot stop it because so much money has been spent? Does she also agree that in business, the first loss is the best loss, and we are throwing good money after bad on this project?

[Antoinette Sandbach]

I certainly do. I remember stating the figure of £100 billion on television, only to be told that it was ridiculous. Now it looks like a certainty, rather than the ridiculous proposal that others claimed it was.

Issues continue even once applications under the property scheme are accepted. My constituents repeatedly tell me about the unco-operative and, at times, obstructive approach of surveyors acting on behalf of HS2. The surveyors’ repeated failures to acknowledge email correspondence, lengthy delays in responding to correspondence—even after numerous chase-ups and the involvement of members of HS2’s property team—and delays in arranging meetings are not only unacceptable but undermine my faith that HS2 can be delivered on its already inflated budget.

There is considerable concern, particularly for applications under the statutory blight scheme, that property valuations are based on the opinion of a single Royal Institution of Chartered Surveyors surveyor, who is not local and is paid for by HS2, fostering a sense that the valuer is not impartial; in contrast, the need-to-sell scheme has an average of three property valuations. There have been repeated concerns that properties are being undervalued. HS2’s surveyors cite the additional compensation provided under the scheme, the suggestion being that the undervaluation is offset by the additional compensation, rather than there being recognition that the compensation is for the upheaval caused by moving property, and is not related to the value.

I know that the Minister has tried to mitigate some of these issues in the past, but time goes on and nothing changes, despite the Minister’s efforts; ministerial orders are ignored and overruled by HS2, which has come out with legions of excuses. If it cannot deliver for my constituents, how can it deliver for the country? My faith in this scheme is fundamentally undermined, as is my faith in the business case.

Draft Financial Services (Miscellaneous) (Amendment) (EU Exit) (No. 2) Regulations 2019

Andrew Bridgen Excerpts

Wednesday 22nd May 2019 General Committees

[Andrew Bridgen (North West Leicestershire) (Con)]

The hon. Lady is doing a very good job of explaining the complexities of unravelling a 46-year-old union. What does she think would be the complexities of unravelling a 300-year-old Union?

[Alison Thewliss]

It certainly would not start from here. The Brexiteers have started with no plan, nothing written down, no objectives, and no sense of where they want to arrive at, without even agreement among themselves about what they want to achieve. I will take no lectures from the hon. Gentleman on how we do negotiations, because this is a complete and utter shambles. I suppose it is no accident that we can look at the figures from EY, which says that since the 2016 referendum financial services firms have voted with their wallets and moved $1 trillion of assets from the UK to the rest of the EU—to their benefit, and certainly not to ours.

The financial services industry in Scotland is looking at the situation with a sense of disbelief and horror. Representatives come and ask me what is going to happen, and I cannot tell them. The Minister cannot tell them. The Prime Minister will no doubt be out of the door in a couple of days’ time, and she cannot tell them. What kind of confidence can the industry have that there will be a stable financial regime going forward, if we cannot even get these SIs correct? The other day, the Minister could not even tell my hon. Friend the Member for Glasgow North (Patrick Grady) whether the UK would break even at any point in this process. We will lose out as a result of Brexit, and she could not say when the UK economy will start to improve after all this disruption.

A number of the changes to the SIs—described in paragraphs 7.10 to 7.13 of the explanatory memorandum —are designed to improved consumer protection and increase consumer awareness where firms are in transitional regimes. That is quite a worrying omission. Had this not been brought to light, people who might rely on those types of consumer protection would not have had them under this SI, and perhaps under others. We simply do not know. We have raised concerns that industry has brought to us, when we have been able to do so.

This SI has gone through in a very haphazard manner, which is certainly concerning. The issues and concerns have been well iterated by the Opposition, but I want to ask the Minister about the procedure and process to ensure that all the other SIs that we have wheeched through the House in no time at all are as rigorous as they should be. It is deeply unfortunate that he has had to come back and do this today. I feel very sorry for his having to do it, and for the civil servants who have had to go through the process as well, but there must be a better process than this. The corrective process should be better than this. I would say that we are heading for chaos, but we are already in chaos. It gives Scotland no confidence that this UK Government are the strong and stable environment that we were always promised they were. I seek assurances from the Minister on what is being done to address these issues.

HS2: Buckinghamshire

Andrew Bridgen Excerpts

Monday 29th April 2019 Commons Chamber

[Ms Ghani]

The train fares will be assessed and brought forward at the most appropriate time. We want this line to be accessible to everybody, and because thousands of people will travel on the line, we have to ensure that the fares are appropriate, as they will be. This line will be incredibly important, including to the midlands. I held a series of roundtables for midlands chambers of commerce, with one recently saying that it would be appalling if HS2

“were used as a political football…It is a key piece of national infrastructure at a time when we need to be showing something positive to the world.”

[Andrew Bridgen (North West Leicestershire) (Con)]

HS2 is a white elephant that grows ever larger on huge amounts of taxpayers’ cash. Back in 2013, when the project was unveiled, I predicted to the then Secretary of State that its cost would spiral to £100 billion, and he laughed. He was quite right to laugh, because if it is completed it will clearly cost far more than £100 billion. Does the Minister agree that the best thing to do is to scrap this project, lifting the blight from the lives of hundreds of thousands of people who live along the route, and split the original budget between link improvements in the midlands and the north, such as reopening the Ivanhoe line in north-west Leicestershire?

[Ms Ghani]

HS2 has one budget: £55.7 billion. Constant speculation around the budget undermines confidence in a project that we should be proud of, considering the positive impact it will have on our communities. Tickets will be on sale several years from now, when the line is up and running. I do not doubt that, when the line is up and running, nobody will talk about this moment right here and now when every element of the project is being constantly undermined. It is not a white elephant. It is creating capacity, reducing journey times, creating jobs and increasing productivity. It is a project that we should be proud of.

Flybmi

Andrew Bridgen Excerpts

Monday 18th February 2019 Commons Chamber

[Ms Ghani]

The hon. Lady makes some important points, focusing on passengers and ensuring that they can continue their journeys and on the staff involved. One of Flybmi’s issues was that its flights were not always full, but the number of people who could have been impacted has been reduced as result. However, everyone whose journey home or to work has become difficult must be taken care of, and I ask them to pay attention to the CAA website for further information. Flybmi’s business model was just no longer working in a competitive market. Its public accounts show that it was in trouble before the referendum, so putting the blame on Brexit really does not wash. The hon. Lady makes a powerful point about Aberdeen, and we will do what we can to ensure that we support all our regional airports.

[Andrew Bridgen (North West Leicestershire) (Con)]

While the failure of Flybmi’s business model and the loss of 100 jobs in my constituency is a setback causing obvious distress for employees and disruption for passengers, it comes at a time of considerable growth and development in and around East Midlands airport, with over 7,000 new jobs being created over the next two years. Will the Government do all they can to ensure that Flybmi’s highly skilled employees are returned to employment as soon as possible, just as they did in 2012 when Flybmi’s parent company, British Midland, ceased trading with the loss of 1,100 jobs in my constituency?

[Ms Ghani]

My hon. Friend is a powerful advocate for his constituency and makes some valid points, particularly about the loss of skilled jobs. We were only made aware that Flybmi was going into administration over the weekend, and it is interesting to note the number of other airlines that have nipped in to see who they can recruit. I am confident that jobs will be found. My hon. Friend refers to passengers. The UK has a healthy aviation sector, and we must not dwell on undermining it. We had 284 million terminal passengers in 2017—an increase of 6% on 2016—so the market is healthy.

Oral Answers to Questions

Andrew Bridgen Excerpts

Tuesday 3rd July 2018 Commons Chamber

[Elizabeth Truss]

As I have said, we want to secure as frictionless trade as possible with the EU as well as those opportunities with the rest of the world. It would be helpful if the Labour party, rather than trying to reverse the result of the referendum, was instead more positive about the opportunities in the future.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my right hon. Friend welcome with me the news that foreign direct investment project numbers are up 7% in Scotland compared to last year and have broken records every year for the past three years, and all this despite a Scottish National party Government in Scotland who are constantly talking down the prospects of the Scottish economy?

[Elizabeth Truss]

Those are fantastic figures for Scotland. We have seen good figures across the UK and the lowest unemployment for 40 years. The Labour party wants to overthrow capitalism; we want great businesses that will do well for our economy.

Oral Answers to Questions

Andrew Bridgen Excerpts

Tuesday 22nd May 2018 Commons Chamber

[Robert Jenrick]

Under the last Labour Government, the average number of PFI contracts signed per year was 55. In the last two years, the Treasury has signed off none. We will use this approach selectively when it delivers a genuine transfer of risk and provides value for money for the taxpayer, not as the last Labour Government did.

[Andrew Bridgen (North West Leicestershire) (Con)]

As the Minister said, PFI was hugely popular under the last Labour Government. Will he confirm whether PFI stands for “private finance initiative” or “pay for indefinitely”?

[Robert Jenrick]

My hon. Friend highlights the cost and legacy of the PFI projects signed off under the last Labour Government. Hon. Members can be assured that we will use this approach wisely and selectively, in particular for the most complex infrastructure projects requiring a transfer of risk and the expertise of the private sector.

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[Mr Philip Hammond]

The hon. Lady focuses rightly on output per hour. The problem is a productivity gap between the regions of the UK and the most prosperous areas of London. We have to close that productivity gap. That is in the interest of not only those individual regions, but our overall national economy. We will do so by investing in public infrastructure and in skills, and by ensuring that the conditions are right for business investment, both domestic and foreign.

[Andrew Bridgen (North West Leicestershire) (Con)]

T3. I have a constituent who, despite having ample equity in her home and never having been in arrears with her payments, is unable to extend her mortgage beyond the age of 75 because of Government rules. That means that she will have to sell the house that she loves. Will my hon. Friend look urgently at whether those rules are absolutely necessary?

[The Economic Secretary to the Treasury (John Glen)]

Lenders are not restricted from extending mortgages beyond the age of 75, as long as the consumer can demonstrate affordability. Several lenders are currently looking into this issue. There is considerable merit in interest-only retirement mortgages.

Draft Cash Ratio Deposits (Value Bands and Ratios) Order 2018

Andrew Bridgen Excerpts

Tuesday 15th May 2018 General Committees

[John Glen]

I thank the hon. Lady for her observations and challenges. As I set out at the beginning of my speech, the context was to secure sufficient funding for the Bank of England’s execution of its monetary policy and financial stability functions. I recognise that there was a range of contributions to the consultation, with 19 responses received to the informal consultation and three to the public consultation, but overall there were no substantial arguments against the proposal.

The hon. Lady raises the question whether there should be a fee-based mechanism. In any consultation there will be a range of views, but I think the consensus was on tweaking the existing model to give more assurance on the amounts that will need to be deposited, and to reflect a more responsive approach to prevailing gilt returns.

[Andrew Bridgen (North West Leicestershire) (Con)]

The Minister pointed out in his opening address that the Bank of England had suffered a deficit on the current system, as a result of lower than expected gilt yields. Will the new system allow the Bank to eliminate that deficit, or will it be carried forward?

[John Glen]

For the deficit over the last five-year period on its expenditure on these two functions, the Bank will have been obliged to find the funds from other sources within its organisation. We want to ensure that these particular functions—the monetary policy and financial stability functions—are properly funded and that there is flexibility over the amounts based on the prevailing gilts; they will be transparently and publicly available, because they are quoted all the time.

On the risk of the expansion of costs in the light of Brexit, the Government are working toward a solution that involves a long-term economic partnership. The enduring functions of the Bank of England to satisfy monetary policy and financial stability will continue. If, at some future point, the Bank of England realises further costs, it will be for the Bank to have conversations with the Treasury about the matter, but that is not anticipated. The Bank has been able to make projections over the next five years and commit to a budget that it is happy with under this model.

I have just received some advice on carried-forward costs. There are no fixed costs over five years, and there will be no carry-forward of the deficit. That will be dealt with, and we will start on the basis of the budget over the coming five years.

The hon. Lady made some wider observations about corporation tax. I think that they are out of the scope of this discussion, which is simply about the provision for this function of the Bank of England.

Spring Statement

Andrew Bridgen Excerpts

Tuesday 13th March 2018 Commons Chamber

[Mr Hammond]

It would be for my right hon. Friend the Secretary of State for Housing, Communities and Local Government to have that meeting with the hon. Gentleman, but I am very happy to pass on his request.

[Andrew Bridgen (North West Leicestershire) (Con)]

Has my right hon. Friend made any assessment of the Venezuelan economic model that is so favoured by the shadow Chancellor? I understand the Venezuelan Government have made huge progress on reducing income inequality. Unfortunately, as is always the case with socialism, they have done so by pushing 80% of the population into poverty.

[Mr Hammond]

Actually, while watching Russia Today, I saw a very interesting piece on the Venezuelan economy—apparently everything is going swimmingly.

Paradise Papers

Andrew Bridgen Excerpts

Monday 6th November 2017 Commons Chamber

[Mel Stride]

The hon. Gentleman overlooks a simple fact: this country has one of the most progressive tax systems in the world, with the wealthiest 1% of income tax payers paying no less than 28% of all income tax. As I mentioned earlier, £2.8 billion has been raised from the wealthy who may have been trying to avoid paying their tax. That is a far stronger record than that of the Labour party.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my right hon. Friend agree that by far the biggest threat to UK tax revenues is the run on the pound and the flight of capital predicted by the Labour party should it ever get into government?