Future of Financial Services

Baroness Neville-Rolfe Excerpts

Wednesday 11th November 2020 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, we absolutely acknowledge the role of fintech in the economy. It generated some £11 billion in 2019 and employed more than 76,000 people. The 2020 report has highlighted the UK as a global leader. Likewise, in the payments landscape, we are also highly innovative because we again are a large economy. In 2018, more than 230,000 faster payments were sent every hour, compared to fewer than 3,000 10 years earlier. The noble Viscount is concerned about regulation. The financial regulators continue to provide a platform that facilitates innovation in this space. For example, the Financial Conduct Authority has accepted a significant number of DLT-based projects into its regulatory sandbox to enable the adoption of this technology to deliver better financial services with appropriate consumer safeguards.

[Baroness Neville-Rolfe (Con)]

I refer to my interests in the register. Unlike some others, I congratulate the Chancellor and my noble friend on getting ahead and providing as much certainty as possible in financial services, despite the ongoing difficulties with the EU. We need this innovative £130 billion industry, especially as we start to pay for Covid. How does my noble friend think that this package will help the large number of smaller financial services providers—and indeed the businesses they serve—outside London and outside the leading-edge areas of fintech and green finance, which will of course take time to grow?

[Lord Agnew of Oulton (Con)]

My Lords, we absolutely accept that small businesses are the backbone of the wealth-creating part of our economy. One of the answers I gave earlier was looking at the listing rules in this country to see whether we can make it more accessible for smaller firms. I mentioned that I think that you have to issue a full prospectus for anything in excess of €8 million, whereas in the US it is $50 million, so we certainly will be looking at that.

On a slightly unrelated element, but connected to SMEs, the rules reform that we are working on now, post transition, on procurement opens up an enormous opportunity for SMEs, because it will allow us to set our own rules and not be controlled by the EU regime. That covers some £290 billion-worth of government expenditure each year, and we will be making sure that SMEs get a good slice of that.

EU: Non-financial Services

Baroness Neville-Rolfe Excerpts

Wednesday 2nd September 2020 Lords Chamber

[Lord True (Con)]

My Lords, in the interests of time, I will write, if I may, to the noble Lord with a detailed response on that point.

[Baroness Neville-Rolfe (Con)]

My noble friend will be aware that the withdrawal agreement does not protect the rights of representation of UK trademark and design professionals in the European Union Intellectual Property Office, while it does protect the rights of EEA professionals to work in the UK for an extended period, when there will be a great deal of new work at the UK IPO. What plans do HMG have to make these arrangements reciprocal?

[Lord True (Con)]

My Lords, the Government are committed to protecting IP to a very high level and are proposing a chapter in the free trade agreement based on precedence to reflect this. Both the EU and the United Kingdom are IP-intensive economies and we need to make progress. My noble friend is right in relation to rights of representation that flow from the single market, and I assure her that these issues are currently very much in the mind of the Government.

Northern Ireland Protocol

Baroness Neville-Rolfe Excerpts

Thursday 21st May 2020 Lords Chamber

[Lord True]

My Lords, I may stand corrected, but I believe that the mechanism of the consent is set out in the protocol. That is the mechanism that will apply.

[Baroness Neville-Rolfe (Con)]

The Statement covers one of the knottiest aspects of Brexit. As a member of the EU Committee, I think it represents a reasonable balance. However, the devil will be in the detail. The new business engagement forum may help. As someone who used to operate across the island of Ireland, I say this: we need a proper physical trial soon, for traders from some different sectors to transport goods from England to Northern Ireland, to the south and then back to England. Please can the Minister consider this further?

[Lord True]

My Lords, as my noble friend said, we will engage with businesses and traders about the requirements of the protocol. That will certainly be a priority in the coming weeks. She makes a very interesting and practical suggestion and is right that this will need to take account of how those traders move their goods in practice today, so that we ensure the system is as streamlined and efficient as we are clear that it must be. I certainly take note of her point.

Covid-19: Economic Package

Baroness Neville-Rolfe Excerpts

Wednesday 13th May 2020 Lords Chamber

[Lord Agnew of Oulton]

To answer the right reverend Prelate’s question, what we have always done through this crisis over the past few months is take a flexible approach and respond as events confront us. If we see that different regions are suffering more than others, we will, of course, look on that as sympathetically as we can.

[Baroness Neville-Rolfe (Con)]

Could my noble friend explain in more detail what the Chancellor meant when he said he would ask employers to share with the Government the cost of paying people’s salaries under the furlough scheme from August? In spite of what he said, I hope he can give us an idea of some of the thinking going on. For many reasons, I support the aim of weaning people off government support, but businesses need to quantify this extra cost very soon to determine their route ahead.

[Lord Agnew of Oulton]

In response to my noble friend, unfortunately I cannot give any more information at the moment, but businesses will be made aware within the next 10 days to two weeks.

Income Equality and Sustainability

Baroness Neville-Rolfe Excerpts

Wednesday 6th May 2020 Lords Chamber

[Baroness Neville-Rolfe (Con)]

Most of us are probably in favour of more equality in general. Some will remember that the Duke of Omnium, Trollope’s Liberal Prime Minister, was especially in favour of perfect equality—yet he was vastly rich and owned thousands of acres.

The best way of helping everyone materially in the long term is to increase the size of the overall cake. The capitalist system is by far the most successful ever devised for making a country richer—compare Cuba and Venezuela with the United States and Canada, or, better, South Korea with North Korea. But—and I accept that it is a substantial “but”—the distribution that results from naked capitalism is not regarded as fair, which is why we have progressive taxation, welfare, the NHS and the living wage, which the most reverend Primate the Archbishop of York has of course pioneered. All these allow us to balance fairness with the needs of economics. Moreover, the best measure of equality in a society is generally agreed to be the Gini coefficient, and the fact is that, at least since the financial crisis of 2008, movements in the index have shown that UK society has become somewhat more equal.

As we all know, we have to find enough to pay for the NHS, schools and social care—£230 billion last year, comparable to the total raised from income tax and corporation tax—and, lest we forget, the main provider of taxes is business and the people that it pays and employs. This is why the lockdown must end soon, or we will not be able to afford so much that we value.

Finally, the crisis has shown us that people’s need is not for money alone. We need a society where people show care and respect for our fellow humans. Look how moved we have been by our army of volunteers. Kindness matters, and so do religious networks; one of the horrors of the current rules is that churches and mosques are shut.

I warmly welcome the maiden speech of the right reverend Prelate the Bishop of Derby; I have much enjoyed evensong in her beautiful and historic cathedral.

Economy: Update

Baroness Neville-Rolfe Excerpts

Tuesday 28th April 2020 Lords Chamber

[Lord Agnew of Oulton]

I share the noble Lord’s concerns about businesses that could be operating. I think we are seeing a gradual return to work. Businesses have now worked out how to manage the requirements of social distancing. Putting the health of the nation first is the Prime Minister’s priority, but if we look at the existing rules, a business can ask its employees to come in if they are not able to work at home effectively, if the employee is fit and well and is not living with someone who is self-isolating for fear of infection or who is on the official medically vulnerable list and if they are able to avoid crowded public transport, which may mean more flexible working hours. The key point the noble Lord makes is that businesses can adapt to provide reasonable social distancing measures in the workplace. That is already in the rules; I expect to see further clarification.

[Baroness Neville-Rolfe (Con)]

My Lords, these are troubling times, and I am glad the Government have taken bold steps, including the new bounce-back scheme, to deal with the problems that confront us. One of my major concerns is that companies will have reassessed their strategies over the past few weeks so that when the furloughing scheme comes to an end we could be faced with redundancies and unemployment on a scale probably not seen since the 1930s. Are the Government planning ahead for such devastating prospects?

[Lord Agnew of Oulton]

The noble Baroness is right; we face a very uncertain few months and we do not honestly know how businesses will react as we come out of furlough and lockdown. We are looking at the long-term implications. The early indications are that there is optimism. While I think that an inverted-V bounce is probably too optimistic, I think a lot restricted spending will be unleashed into the economy. It is worth remembering that under the furlough arrangement employees are receiving 80% of their normal earnings without the cost of commuting or eating out in cafes or whatever when they are working. I stress that we are looking at all future scenarios.

Councils: Funding

Baroness Neville-Rolfe Excerpts

Thursday 4th July 2019 Lords Chamber

[Lord Young of Cookham]

I say to the noble Lord that I was a vice-president of the Local Government Association—until I was expelled for introducing rate-capping in the 1980s. On the serious issue he raises, extra funding announced in last year’s Budget means that the Government will have given councils access to £10 billion of dedicated funding that can be used for adult social care, which is the real pressure point, in the three-year period to 2019-20. That is a combination of the adult social care precept and the better care fund. As for his invitation to cross-party discussions, those are always welcome: it is always helpful to have consensus on how local government is funded. Announcements on fair funding and the business rates retention scheme will be made alongside the decisions of the spending review.

[Baroness Neville-Rolfe (Con)]

What can be done to ensure adequate funding for trading standards officers, who do such an important job on product safety? Fake airbags, dangerous tumble dryers: this disturbing list could get longer unless priority is given to this work in the spending review. It does not require huge sums of money, but it does require better resourcing.

[Lord Young of Cookham]

I pay tribute to the work done by trading standards officers, whose case is championed by my noble friend. As she will know, local government does not like funding that is ring-fenced, so the resources for trading standards are included in the block grant. As I said a few moments ago, there has been a real increase in the funding for this year’s settlement; I hope that when we get next year’s settlement, there will also be a useful increase. It is then up to local government to give priority to the services my noble friend referred to.

Public Procurement (Amendment etc.) (EU Exit) (No. 2) Regulations 2019

Baroness Neville-Rolfe Excerpts

Thursday 14th March 2019 Lords Chamber

[Viscount Waverley (CB)]

I wonder whether the Minister’s notes allow him to comment on the following and, if not, he will agree to write. Currently, all UK public sector opportunities are published on Tenders Electronic Daily—TED—which is the EU service on which all public sector tender opportunities within the European Union are listed and updated, constantly. What might be the plan for UK public sector tender opportunities either to continue to be published on Tenders Electronic Daily or to be published separately? If so, where might they be published?

[Baroness Neville-Rolfe (Con)]

My Lords, I welcome the opportunity to debate these SIs, but I have one or two questions of clarification. Luckily, the Minister has already answered my question about the Modern Slavery Act.

As I understand it, the first of the two SIs, in practice, relates to third-country public procurement by the UK. I admit to having a concern about the interests of our own UK businesses and small operators that are involved in procurement. I refer to my registered interests, just in case any might be affected, although the impact assessment suggests that the impact of this order is negligible.

My experience is that we in the UK are more punctilious about enforcement of procurement rules based on,

“transparency, non-discrimination, equal treatment and proportionality”,

and the remedies for breach of any of those; I picked up the wording from paragraph 6.2 of the Explanatory Memorandum. Perhaps the Minister would be kind enough to comment on the risk that the changes will put us at a future disadvantage and not be fully reciprocated by the third countries concerned in the procurement process. If there is a risk, how long will it last? The SI lasts for 18 months, but I am not clear whether that is 18 months altogether or 18 months during which contracts might be let. Of course, procurement contracts often go on for many years.

I was sorry to see that there was no public consultation on this SI, but perhaps my noble friend the Minister can let me know if any concerns have been raised since the SI was published. I fully support the second SI on electronic invoicing. The UK has led the charge in Brussels on permitting businesses and citizens, and people around the world, to take advantage of the magic of online. That includes invoicing, contracts and many basic things. Both in business and as a Minister, this is an area that I have strongly supported and I am glad to see that electronic invoicing continues to apply. Our support for online should continue in third-country and EU procurement, although I know that the latter may be more peripherally affected on this occasion.

[Lord Arbuthnot of Edrom (Con)]

My Lords, I wonder whether my noble friend can help me. In view of the contingent nature of these SIs, is it the Government’s policy to honour the result of last night’s vote in another place?

Taxation: Digital Publications

Baroness Neville-Rolfe Excerpts

Thursday 6th December 2018 Lords Chamber

[Lord Young of Cookham]

The noble Lord makes the same case as made by the noble Lord, Lord Foster of Bath. On Tuesday, all countries within the EU had the freedom to change the rate from 20%, the standard rate on e-publications, down to zero. We have had that freedom for only two days, so both noble Lords are very prompt in urging us to use it. As I said, negotiations are now under way between the interested parties and the Government to assess the case. If the case is made, I am sure that the Chancellor will look at it favourably.

[Baroness Neville-Rolfe (Con)]

My Lords, perhaps I can help with a digital source of tax and welcome the recent proposal for a digital services tax, particularly given the demise of our high street. Will my noble friend ask the Chancellor either to accelerate that tax, because it is not due to come in until April 2020, or put pressure on the established tech giants to make substantial payments to the public purse until we have a proper tax at either the UK, EU or international level?

[Lord Young of Cookham]

The Chancellor always welcomes suggestions for raising money in tax, rather than the representations which he normally gets to spend more. It is indeed the case that we plan to introduce the digital services tax in April 2020. It is designed to bring in £1.5 billion over the next four years and is targeted on the multinational companies operating in the digital sphere, to ensure that they pay appropriate tax on the value they derive from UK business. It is seen as an interim solution until we move to a global solution, and the UK is taking the lead in the OECD and G20 to secure that. I certainly note my noble friend’s suggestion that we should move ahead with it before 2020, and if we did that, there might be the resources to pay the sum of money that we might lose from zero-rating e-publications.

Immigration Statistics

Baroness Neville-Rolfe Excerpts

Monday 12th March 2018 Lords Chamber

Asked by

[Baroness Neville-Rolfe]

To ask Her Majesty's Government whether it is their objective to maintain authoritative immigration statistics to allow the development of sound policies and plans for the future.

[Lord Young of Cookham (Con)]

My Lords, the Government are fully committed to complete and authoritative migration statistics. These are produced by the independent Office for National Statistics following best international practice and are overseen by the UK Statistics Authority. The ONS has embarked on an ambitious programme of work to improve migration statistics and the Government are supporting this programme, including by providing the ONS with access to data held by government departments.

[Baroness Neville-Rolfe (Con)]

My Lords, it is good to hear that the Government are trying to improve matters but does the Minister agree that, as the Brexit vote showed, the public do not have confidence in UK immigration policy? If this is to change, we need more reliable statistics, not least to inform the need for investment in housing, schools, medical infrastructure and even benefits. Can the Minister confirm that the forthcoming White Paper will address this issue and include honest forecasts?

[Lord Young of Cookham]

I agree that the public should have confidence in the statistics produced by the ONS, particularly on migration. These are an important input to policies on housing, health, education and other public services. The ONS will use powers in the Digital Economy Act, which has recently passed into legislation, to access data from other government departments. This will complement the information it already has from the IPS. By accessing not only exit data from the Home Office but information from HMRC, from the DfE on school rolls and from GPs on GP lists, it will be able to strengthen and enrich—the word it has used—the statistics on migration, and in turn this will enhance confidence. The Government do not make forecasts on migration but the ONS produces what it calls estimates.