Financial Services Reforms

Bill Esterson Excerpts

Tuesday 11th July 2023 Commons Chamber

[Andrew Griffith]

My hon. Friend, who knows so much and speaks so lucidly for Cities of London and Westminster, is absolutely right. These are a bold and ambitious set of reforms. They will not just help communities across the whole of the United Kingdom—I never fail to remind the House that financial services touch almost every constituency—but continue to underwrite the strong and leading position of the City of London, which she so ably represents.

[Bill Esterson (Sefton Central) (Lab)]

It is always fascinating to hear Ministers justifying their failure over the last 13 years. The Minister would do well to recognise that business investment is at a record low in this country. One way to address the record low in business investment is to listen to the professional services sector, which says that a mutual recognition agreement with the EU would increase that performance and contribution. Why have the Government made no progress on that mutual recognition agreement?

[Andrew Griffith]

I am enormously proud of the fact that we have recently reached agreement with all the member nations of the European Union on the memorandum of understanding in respect of financial services. That joins a number of such agreements, all of which have the objective of seeking access to as many of the growing markets in the world as possible for our financial and professional services. Only last week I met my opposite number, the German deputy Finance Minister, and next week I will be meeting the Luxembourg Finance Minister.

Mortgage Charter

Bill Esterson Excerpts

Monday 26th June 2023 Commons Chamber

[Jeremy Hunt]

The truth is that Members can pick countries in Europe where things have not been as severe as they have here, but they can also pick countries in Europe where things have been more severe, such as the 14 EU countries that have higher core inflation.

[Bill Esterson (Sefton Central) (Lab)]

The Chancellor is not going to get off with not answering that question. We are going to keep asking him again and again until he answers. Why is it that people are paying £800 less in Germany, £1,000 less in Ireland and Belgium, and £2,000 less in France than they are paying here? What is it that their Governments and their economies are doing differently—or is it just that they do not have the problem of 13 years of this Tory Government? What is behind it?

[Jeremy Hunt]

Let me give the same answer that I gave to the hon. Member for Chesterfield (Mr Perkins). Core inflation is higher in more than half the EU countries, so it is not just about us.

UK Infrastructure Bank Bill [Lords]

Bill Esterson Excerpts

2nd reading
Tuesday 1st November 2022 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

Labour supports the creation of the UK Infrastructure Bank, and we support the Bill’s placing the bank on a statutory footing. In Committee, we will want to see changes to ensure that the bank focuses on strategically important areas, not least energy efficiency, nature-based solutions and job creation. We will also want to see changes to the governance of the bank, for example ensuring that there is a workers’ representative on the board of the bank.

This Government have a terrible record on infrastructure over the last 12 years, whether it is their cancellation of Northern Powerhouse Rail or their dismal failure to invest in renewable energy or take decisions on new nuclear. Their lack of strategy and planning was also shown when they closed the UK’s gas storage facility. Indeed, these 12 years of failure on infrastructure are central to the Conservative Government’s failures of low growth, low productivity and low investment.

Those 12 years of failure were also the prelude to the disastrous mini-Budget of 23 September. The Bank of England was forced to step in four times to support financial stability and rescue pensions, and there was criticism of the UK Government by the International Monetary Fund. Interest rates went through the roof, there was huge volatility in the pound and inflation is higher than in comparable countries. So, yes, the Conservatives crashed the economy. The result is higher mortgage payments for households, higher borrowing costs for businesses, chaos from the Government, crisis for ordinary people and crisis for the economy. The economic failure by the Conservatives has left the UK ill-prepared for the current energy crisis, pushing up bills and risking energy shortages.

A strategic approach to infrastructure is essential, and it is Labour’s industrial strategy that follows the evidence from across the economy. Unlike the Conservatives, our plan follows evidence from around the world. At the heart of our plan is Labour’s green energy plan. We will invest in the energy sources of the future. Our plan will deliver self-sufficiency in renewable energy by doubling onshore wind, trebling solar and quadrupling offshore wind, all supported by the creation of a publicly owned “Great British Energy” company. Our plan will create half a million jobs in renewable energy and a further half a million jobs in insulating 19 million homes over 10 years. Our plan will invest in the technologies and industries of the future, from EV charging points, supporting a burgeoning electric car industry, to clean steel and developing shorter, more resilient supply chains. Our plan will create jobs, cut bills and deliver energy security, and it will transform our prospects after 12 years of economic failure by this Government.

The UK Infrastructure Bank has to take a long-term view in the national interest. So what is the Government’s record? The sale of the green investment bank to private equity, yesterday’s distressing news about Britishvolt and the failure of the green homes grant scheme—all mentioned by my hon. Friend the Member for Ealing North (James Murray) and all examples of where the UK Infrastructure Bank could do so much better to ensure a greater chance of success with the right strategic mandate.

What should be the approach of the UK Infrastructure Bank? Labour’s industrial strategy will deliver prosperity through partnership: the Government working with business and trade unions to create thriving businesses, prosperous workers and successful communities that benefit from investment in the whole country and from a strategy that supports the everyday economy as well as those in advanced manufacturing. The question for this Government is whether their approach to the UK Infrastructure Bank matches the scale of our ambition.

It is worrying that, just last week, the Prime Minister answered a question about onshore wind by talking about offshore wind. I wonder whether he understands the difference. His refusal to end the moratorium on onshore wind is telling, and it certainly is not an indication that this Government intend to make a bold, ambitious commitment to benefiting from the opportunities of a low-carbon economy. A good test of whether this Government really are committed to infrastructure investment is whether the new bank will deliver the decarbonisation we need and whether it will enable this country not just to survive but to thrive, by making the most of the massive economic opportunities available from the energy transition.

We have exciting technologies in wind, solar, tidal, carbon capture and storage, nuclear and hydrogen. Will the bank give investors the confidence they need to develop the benefits for our domestic economy and for export markets, too? So far, the bank has faced criticism for following the market rather than setting new strategic priorities for big infrastructure projects. Will the bank really support local and regional economic growth? After 12 years of failure, people can be forgiven for being somewhat sceptical.

An industrial strategy is a partnership between Government, employers and workers. In government, we enshrined partnership working in the Olympic Delivery Authority to ensure good local jobs, and to ensure that those jobs were central to the construction of Olympic facilities. We set up the Automotive Council with employers and trade unions to protect local jobs. We will be pursuing amendments in Committee to enshrine a commitment to local jobs in the bank’s remit, and we will push for worker representation on the board. That is the recommendation of E3G, which says that a diverse representation includes workers. Partnership in a successful economic and industrial strategy depends on worker representation. We will follow the evidence in our approach. Our amendments in Committee will push this Government to do so, too. Labour’s approach to infrastructure and industrial strategy is through partnership. We recognise that success will follow when Government work with business and with workers.

Investing in infrastructure in a low-carbon future can deliver across the country, not least because of how the exciting opportunities are geographically spread. It can deliver prosperity in every community. The jobs in insulating 19 million homes will, by definition, be created in every community, especially in those with the poorest housing stock, which are those with the greatest need of good jobs as well as warmer homes. We can transform our prospects at home and through the export potential of new technologies. But the bank has to be on a sound footing, alongside a strategy and with objectives that are consistent with the way the bank is set up. We support the creation of the bank. It is a great way for us to implement our plans in government. It is a great way to give businesses and investors certainty. It is a great way of offering prosperity to communities through the creation of new jobs. But the bank has to be allowed to be ambitious, to push for new opportunities and to set the market, not just follow it. That is what an industrial strategy does. It is what Government can contribute to as a partner, where business would otherwise struggle to attract investment. It is also how to transform our economy, our country and our communities.

[Mr Deputy Speaker (Mr Nigel Evans)]

I welcome the Minister back to the Dispatch Box.

Oral Answers to Questions

Bill Esterson Excerpts

Tuesday 17th May 2022 Commons Chamber

[Helen Whately]

My hon. Friend is absolutely right to campaign for better access to stations for disabled people. I am pleased to confirm that Chalkwell is included in the Department for Transport’s £350 million Access for All programme, and that construction will begin to install a new footbridge and lift this autumn.

[Bill Esterson (Sefton Central) (Lab)]

The Government have cut the infrastructure that they promised at the last election, not least in Northern Powerhouse Rail. The economy needs greater rail capacity for passengers and freight, so does not this great rail betrayal show that the Government are not interested in the infrastructure needed for the economy in the north and the midlands to thrive?

[Helen Whately]

I simply do not recognise the picture that the hon. Member is painting. This Government are absolutely committed to investing in infrastructure because that is at the heart of our ambitions for economic growth and levelling up across the country, including £96 billion for the integrated infrastructure rail plan for the north of the country.

Oral Answers to Questions

Bill Esterson Excerpts

Tuesday 15th March 2022 Commons Chamber

[Lucy Frazer]

As my hon. Friend knows, we have introduced a range of measures to support families, both working and not working. The price of energy is now set until the autumn, and a significant amount of money is going in now and in the autumn.

[Bill Esterson (Sefton Central) (Lab)]

7. What recent steps he has taken to help reduce economic inequality.

[The Financial Secretary to the Treasury (Lucy Frazer)]

Work is the best route out of poverty. We are investing more than £6 billion in labour market support over the next three years to help people to move into and progress in work. In addition, analysis published at the last autumn Budget shows that in 2024-25, tax, welfare and spending decision since the 2019 spending review will have benefited the poorest households the most as a percentage of income.

[Bill Esterson]

But real wages are falling by the largest amount since 2014, inflation is set to hit 8% and the energy price cap is going up. In the cause of fairness and sound economics, when will the Financial Secretary and her colleagues admit that it makes sense to use the record profits of North sea oil and gas to help ordinary people, who face a cost of living crisis?

[Lucy Frazer]

The hon. Gentleman knows from the statistics announced this morning that wages are up in real terms compared with pre-pandemic levels. In fact, unemployment is now almost back to pre-pandemic levels, and is lower than in Canada, France, Italy, Spain and Australia. On his specific question, the North sea oil industry already contributes additional taxes through a 40% rate, which is double the amount that other corporations pay.

--- Later in debate ---

[Lucy Frazer]

My hon. Friend is right to highlight the effect of a high effective tax rate on incentives to work. That is why the Government reduced the universal credit taper rate from 63% to 55% and increased the universal credit work allowance by £500 per year, which is essentially a tax cut for the lowest-paid, worth more than £2 billion in 2022-23, and means that 1.9 million households will keep an extra £1,000 per year on average.

[Bill Esterson (Sefton Central) (Lab)]

T4.   Waste recycling businesses face an increase in tax on red diesel of thousands of pounds per month from April. I take it that the Chancellor agrees that waste recycling has important economic as well as environmental benefits, so what plans has he to address the sudden rise in costs for businesses that process and reuse waste materials?

[The Exchequer Secretary to the Treasury (Helen Whately)]

The changes to the taxation of red diesel were announced back in 2020, were confirmed in spring 2021 and are coming in this year, so businesses, including in the sector that the hon. Member refers to, have had plenty of time to prepare. It is absolutely right that we tax fuels that are highly polluting; unfortunately, diesel is one of them.

Draft Consumer Scotland Act 2020 (Consequential Provisions and Modifications) Order 2022

Bill Esterson Excerpts

Wednesday 8th December 2021 General Committees

[Bill Esterson (Sefton Central) (Lab)]

It is a pleasure to see you in the Chair, Mrs Murray—I was elected at the same time as you, but I think this is the first time we have been in this situation. I congratulate the Whip-cum-Minister on her fine delivery of her notes, on a subject that, it is fair to say, both she and I are coming to quite late in the day—this is not my normal brief either. I thank her for confirming my understanding of what the statutory instrument covers, and I have a few questions for her. I understand that she may be able to answer some of them today and that, if not, she will do so in writing later.

The SI was laid as a result of the Consumer Scotland Act 2020, which established Consumer Scotland as a non-ministerial body of the Scottish Administration. It makes provisions in consequence of the Act, which established Consumer Scotland as the body responsible for the devolved areas of consumer advocacy and advice in Scotland. That is the point the Minister made, and I will be teasing out the practical realities as well as the theoretical position that the SI sets out.

The SI is required to ensure that the Scottish Administration’s role in dealing with consumer advocacy is reflected in relevant UK legislation, as well as to amend legislation outside the competence of the Scottish Parliament that will allow Consumer Scotland to fulfil its new role in dealing with consumer advocacy and advice. I understand that this will largely involve changing references to Citizens Advice Scotland to Consumer Scotland. The SI is not controversial, and we support the establishment of Consumer Scotland as a non-ministerial body of the Scottish Administration. We support the SI because it puts Consumer Scotland on a statutory footing.

Scottish consumers must have their interests fully represented, so we welcome the fact that through this SI there is a heightened duty for public bodies in Scotland to tackle consumer concerns and manage trust in business. Consumer Scotland will have responsibilities across reserved and devolved areas, and it is critical that the UK and Scottish Governments work together. Sadly, the SNP and the Conservatives have been more interested in constitutional wrangling than working in the shared interests of people in Scotland. Labour believes that consumer interests are of high importance and that all political parties should champion the interests of consumers by supporting the work of Consumer Scotland. Let us hope that the other parties in Scotland also recognise the importance of supporting consumer rights, as opposed to spending their time on constitutional matters.

I wish to ask the Minister a few questions about the SI and about wider consumer advocacy and protection in Scotland. The success of Consumer Scotland will be in how it acts and to what extent it protects and upholds the interests of consumers. It cannot be another Scottish Government quango. What assessments has the Minister made to ensure that Consumer Scotland’s statutory powers will be impactful and will be implemented to make a meaningful contribution in terms of being on the side of Scottish consumers? Have she or her colleagues discussed with their counterparts in the Scottish Government how Consumer Scotland can be proactive as well as reactive, not only protecting consumers from harm but educating them so that they can avoid being harmed? What relevant impact assessments have been made on the new body by the Scottish Government? What discussions have the Minister or her colleagues had with Scottish Ministers about the devolved areas affected by this SI—energy, water and postal services?

We support the Minister in laying this SI before Parliament. Labour supports the creation of Consumer Scotland, and we believe that public bodies have a responsibility to drive up industry standards and to protect and empower consumers.

Oral Answers to Questions

Bill Esterson Excerpts

Tuesday 7th December 2021 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

Florence Roby Ltd was turned down when it bid for Government contracts for personal protective equipment last year, despite a 50-year track record of high-quality production. It was not asking for special favours; all it wanted was a fair chance of winning Government contracts. Some £3.5 billion was handed out to friends and donors of the Conservative party through a VIP lane. That is in stark contrast to the experience of Florence Roby Ltd. When will good people such as my constituents get access not to a VIP lane, but to a level playing field?

[Mr Simon Clarke]

We worked at speed to secure the PPE needed to protect our frontline workers, and we supplied over 58,000 different healthcare settings. We now have a four-month stockpile of all critical PPE to make sure that the NHS can continue to be protected. All these bids are assessed in line with standard guidance to make sure that there is total equity in that process. Any suggestion to the contrary is fundamentally misleading.

Contingencies Fund (No. 2) Bill

Bill Esterson Excerpts

2nd reading
Thursday 11th March 2021 Commons Chamber

[Bill Esterson (Sefton Central) (Lab) [V]]

The Government’s test and trace scheme, outsourced to companies such as Serco, has been one of the most scandalous wastes of public expenditure in living memory. It is quite difficult to imagine what £37 billion looks like, but here are some examples. In 2015, the Northumbria Specialist Emergency Care Hospital was constructed at a cost of around £75 million; £37 billion is enough money to build nearly 500 brand-new state-of-the-art hospitals. With around 670,000 nurses on the permanent NHS payroll, £37 billion is enough to give every single nurse a pay rise of not £3.50 a week but around £50,000. But instead, what did the Chancellor, in his recent Budget, announce for nurses? Not even, actually, a pay rise of £3.50 a week, but, in real terms, a pay cut of about £5 a week.

It is a disgrace that this Government are so profligate with their cash that they will give £37 billion to private outsourcing giants, including Serco, and at the same time choose to take money away from our nurses with that real-terms pay cut. Of course, if that £37 billion had kept people safe—if it had worked—that huge sum of money might have represented value for money. Yet as the National Audit Office said:

“The Department of Health & Social Care justified the scale of investment…on the basis that an effective test and trace system would help avoid a second national lockdown; but since its creation we have had two more lockdowns.”

The ineffectiveness of the outsourced test and trace system is one of the reasons the UK has experienced the worst death rate of any major country. Yesterday, Serco’s top two executives, one of whom is the brother of a Conservative MP, received £7.4 million each in pay, including bonuses worth about £5.5 million. The company has previously handed out over £17 million in dividends to shareholders while reaping the rewards of its role in the grossly wasteful and ineffective test and trace programme. Today we read that the Business Department has invited Serco bosses, among others, to apply for new year’s honours. We now have a Government all too happy to waste billions of pounds on dodgy contracts for companies with Conservative party links, and when the scheme invariably fails, they give the people responsible a title as a consolation prize, all the while starving our public sector of funding and our public sector workers of pay.

After £37 billion, no test and trace, and the failure to prevent the second and third lockdowns, Ministers and those profiteering from this say it was a success. The National Audit Office says that there is no evidence of effectiveness. England has had the worst death rate in Europe. Other countries were able to balance value for money with support for the public’s health and the economy. If other countries can do better, the Government at Westminster can and must do better too.

All this is to say nothing of the disastrous PPE contracts. PPE Medpro was incorporated on 12 May. Just 44 days later, it was awarded a contract worth £122 million for single-use medical robes, which it intended to import. The contract was not advertised, but the company had links to the Conservative party and a Conservative peer. In contrast, my constituents who own Florence Roby Ltd, a uniform supplier with a track record of more than 50 years’ trading, spent months trying to get a contract for medical robes but were given the runaround and eventually had to lay off staff. I am afraid that these examples illustrate perfectly everything that has been wrong with procurement during this crisis: wastefulness and poor value for money. No wonder so many people think this is corrupt.

Compare this with the situation in Wales, where decisions on PPE are devolved. Since the outset of the pandemic, well over 450 million items of PPE have been distributed in Wales, and the vast majority of the PPE issued has been directly sourced by NHS Wales Shared Services Partnership, with all contracts awarded subject to robust governance. That includes additional scrutiny from a finance governance group, and all contracts over £1 million are approved by the Welsh Government directly. The UK Health Secretary has said that urgency is the reason that the Conservatives paid billions of pounds to their mates for PPE contracts, but that does not excuse the fact that companies with connections to the Conservative party such as PPE Medpro—which, remember, was awarded a contract 44 days after incorporation—were 10 times more likely to win contracts than those without those contacts.

In Wales, with a Labour Government, the situation was just as urgent, but the oversight and accountability were in place. Instead of waste, we have seen local public health boards delivering effective contact tracing, without the scandalous payments that we have seen in England of up to £7,000 a day to consultants. The Westminster Government must be able to spend the money needed to address the public health emergencies of the pandemic—everybody agrees on that much—but they must also listen to the National Audit Office, put an end to the cronyism and put public health first. The day of reckoning will surely come for the gross negligence, waste and cronyism displayed by this Conservative Government.

Economic Update

Bill Esterson Excerpts

Monday 11th January 2021 Commons Chamber

[Rishi Sunak]

My right hon. Friend is right that this cash should get to businesses as quickly as possible. I can confirm that the guidance will be published this week, and cash from central Government should be with local authorities by the end of this week, at which point it will be up to them to distribute it as quickly as possible. I know that they have been focused on this in the past several months, so hopefully this process can be as quick as we all need it to be.

[Bill Esterson (Sefton Central) (Lab) [V]]

Infection rates in Sefton have more than doubled in the last week, and hospital admissions are up by 50%. Those people who have been excluded from financial support so far want to reduce infection levels and hospital admissions by staying at home, protecting the NHS and saving lives—they want to play their part too, but they need the Chancellor’s help to do so. What is his objection to using the £2 billion that the large retailers have returned in unused business rate relief to enable the many freelancers, self-employed people, people who run small firms and people who changed jobs at the wrong time to play their part in the national interest while we wait for the vaccine to be rolled out?

[Rishi Sunak]

I think that the Opposition had called for that money—the £2 billion—to be used to support small businesses, particularly retail and hospitality businesses, which we have now supported to the tune of £4.5 billion; I know it would be nice to spend the same money twice. With regard to those who need supporting for self-isolation purposes, we have made available £500, on a means-tested basis, to those who need that help, and that money is being worked through with local councils and the Department of Health.

Future Relationship with the EU

Bill Esterson Excerpts

Thursday 10th December 2020 Commons Chamber

[Penny Mordaunt]

I thank my hon. Friend for that upbeat question. He is absolutely right to say that we have taken care of the challenges in any scenario, and again great credit goes to the civil service for preparing for that. There are also opportunities, which is why the people of this country voted to extract themselves from the EU. We would be doing them a disservice if we did not create the conditions for us to be able to seize those opportunities, and that is what we will do in the coming days.

[Bill Esterson (Sefton Central) (Lab)]

Last October, in preparation for a possible no deal, the Chancellor of the Duchy of Lancaster told us that stockpiles had been built up of essential medicines, including asthma inhalers, antibiotics, paracetamol and ibuprofen. That was just as well, given that they were needed in the coronavirus pandemic. Have stockpiles of those things been returned to the levels they were at in October 2019?

[Penny Mordaunt]

The hon. Gentleman is right to say that the efforts the civil service went to in order to prepare for a no-deal scenario last year stood us in much better stead for what then happened with regard to the pandemic. That is not an argument for Brexit; it is simply a fact that this nation was much more resilient because of the no-deal planning scenario. I cannot give him drug by drug, line by line details on the stocks, as he will appreciate, but I am sure the Department of Health and Social Care can. I can, however, reassure him on those matters. A huge amount of work has done, in a multi-layered approach, asking suppliers of medicines, medical products and other medical devices to help us replenish those stocks, while making sure that they themselves are trader-ready, so that their businesses are not interrupted. [Interruption.] No, I am saying that he should have reassurance on the points he has raised, and I will be happy to follow up with him with further detail regarding paracetamol and the other items he mentioned.