Oral Answers to Questions
Debate between Andrew Percy and Martin Vickers
Andrew Percy
May I begin by congratulating the hon. Gentleman on his marathon success yesterday? For such a young man, he did it in such an interesting time; he deserves full credit for it. He raises an issue that I am fully aware of in Scunthorpe, which is a town centre that is on its way back. I am happy to discuss with him further what we can do across Government to help to deal with the problem.
Martin Vickers (Cleethorpes) (Con)
Traders in Cleethorpes High Street and elsewhere in the resort are concerned following a decision by North East Lincolnshire council, which is Labour controlled, to close a number of public toilets and refuse to repair others. That is having a very detrimental effect. I know that my hon. Friend, as the coastal communities Minister, would want to look favourably on future funding requests so that these amenities can be improved.
Oral Answers to Questions
Debate between Andrew Percy and Martin Vickers(7 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Andrew Percy
I was in York just last Friday to speak to Make It York and celebrate our funding for the York Central enterprise zones. As the hon. Lady will be aware, business rates bills across the north will be falling, but as the Chancellor and my right hon. Friend the Secretary of State have made absolutely clear, we are committed to supporting further those businesses that are hardest impacted by rises. Across the north more generally, however, we will see falls in business rates.
Martin Vickers (Cleethorpes) (Con)
As the Minister knows, the Humber local enterprise partnership was recently allocated £27 million under the growth fund. The two local authorities that serve the Cleethorpes constituency are also members of the Lincolnshire LEP. Will he enlighten us on when their settlement is due?
Andrew Percy
My hon. Friend is absolutely right that we recently allocated £27 million to the Humber in the growth deal. It is important to remember that, on a per-head basis, that is more than has been received in large parts of the south of England. We will announce in the coming weeks the Greater Lincolnshire LEP allocations that also cover North and North East Lincolnshire as part of the £392 million package for the midlands.
Humber Energy Estuary
Debate between Andrew Percy and Martin Vickers(8 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Martin Vickers
It is perfectly true that, unfortunately, there was a misunderstanding and the LEP submission was too late. I certainly urge the Minister, if it is within her power, to grant an extension to the Humber LEP so that the college can be established in the obvious place for it.
Martin Vickers
I cannot think why my hon. Friend is shouting “Goole”, but to give him his due he has played a supportive role in all that we have done. Certainly, the MPs from the south bank—
UK Steel Industry
Debate between Andrew Percy and Martin Vickers(8 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text
Andrew Percy
I agree with the hon. Gentleman. My hon. Friend the Member for Cleethorpes and I were two Conservative Members who voted against the imposition of the carbon floor price because of the impact that it would have not just on steel but on petrochemicals, which are massively important to North Lincolnshire and east Yorkshire. We would like the compensation scheme to be brought forward, as I planned to say later in my speech.
As the hon. Member for Redcar said, the nature of the steel industry is changing, and she gave a figure for how much steel we now import, compared with in the past. The figures that I was provided with state that 90% of steel consumed in the UK in the ’70s was from domestic production, but that share is now 20%. That unfortunate decline has taken place under successive Governments over the past few decades. The UK steel industry has had to become more export focused, which is part of the problem and a challenge for Scunthorpe. The hon. Member for Scunthorpe, my hon. Friend the Member for Cleethorpes and I, together with our council leader who will shortly enter the other place, met a couple of weeks ago. We were told once again that although UK demand appeared to be picking up and doing well, the concern for Scunthorpe is the weakness in the European market, as well as other issues that I shall mention. That focus on export is a major weakness at present.
As the hon. Member for Redcar said, the sector continues to suffer from an economic crisis. The service sector-led economic recovery has left steel-consuming sectors such as construction as much as 10% below their 2007 levels. The recovery so far has been less steel-intensive than we might have hoped. In the UK, demand is 75% of pre-recession levels. Further challenges, which the hon. Lady outlined, come from Chinese dumping and currency issues. Those factors, as she accepted, are outside the control of this or any Government in Europe. The current strength of the pound is another issue to which the hon. Lady referred.
Tata has made three asks of the Government, which the hon. Lady mentioned. It is almost as if we co-ordinated our contributions. One of Tata’s requests, as the hon. Member for Middlesbrough (Andy McDonald) said in an intervention, relates to the energy-intensive industries compensation scheme. I do not need to go into detail, having said what I have said already, but if that compensation mechanism were brought forward, that would be most welcome. Energy prices, as we know, are 50% higher in the UK than for the UK steel industry’s main competitor in Germany. Companies in continental Europe are not facing the same cost pressures, nor are they awaiting a decision on state aid rules. So there are steps that can be taken by the Government to improve the situation, and I know that the Minister has heard these.
Martin Vickers (Cleethorpes) (Con)
I agree entirely with all the points my hon. Friend is making. Does he recall that when we met Tata Steel, along with the hon. Member for Scunthorpe (Nic Dakin), one of its other requests was for modest support for some work that needs to be done to determine the firm’s future? Does my hon. Friend join me in hoping that the Minister will view that request sympathetically when she replies?
Andrew Percy
Indeed. We have communicated that request directly to the Minister. I welcome my hon. Friend’s intervention.
Business rates were mentioned by the hon. Member for Redcar. Removing plant and machinery from business rates valuation would have a massive impact, because business rates are five to 10 times higher in the United Kingdom than in Europe. That has a significant impact on Scunthorpe especially, making up 49% of the annual rates at that site or £12 million per annum. North Lincolnshire council has looked at what it can do on business rates, particularly in respect of cash flow. Expecting a small local authority such as that to take a hit on business rates, and putting it in a position where, if it provides relief, it may not be able to provide services, is not fair to North Lincolnshire council. This is an issue on which the Government need to respond.
We had a positive meeting with Tata recently, at which the council said it would see whether payments could be made every two or three months instead of monthly, which would help with cash flow at the site. I know North Lincolnshire council is looking closely at that. When lawyers get involved, these things always become more complicated and there are state aid issues, but the council has assured me that it will do everything it can to help on the cash-flow issue. However, that does not deal with the issues arising from the business rates regime in the UK, compared with elsewhere in Europe.