Oral Answers to Questions
Bob Seely Excerpts(5 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Elizabeth Truss
I have to agree, Mr Speaker; I am slightly struggling with the link between fiscal policy and the hon. Lady’s question. However, she might be interested to know that in the spending review we are specifically looking at how we can help women suffering domestic violence and how we can take the matter into account when deciding the future of our public spending.
Mr Bob Seely (Isle of Wight) (Con)
It was great to see the Minister on the Isle of Wight the week before last, although I am sad to say that there are not too many double entendres on her social media. She will be aware that I have written her a letter, asking her to ensure that the Isle of Wight becomes a pilot scheme in order for us to look at how we can better integrate Government services in the One Public Estate programme.
Elizabeth Truss
It was certainly a weekend to remember on the Isle of Wight. It was my first ever visit to that great place, and I was impressed. The Isle of Wight provides a good opportunity to look at how we can do things differently, including how we can integrate services to cut down on bureaucracy and put more money on the frontline.
Wild Animals in Circuses (No.2) Bill (First sitting)
Bob Seely ExcerptsTuesday 21st May 2019
(5 years, 7 months ago)
Public Bill CommitteesRead Full debate Wild Animals in Circuses Act 2019 View all Wild Animals in Circuses Act 2019 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 21 May 2019 - (21 May 2019)
The Chair
Before I proceed, gentlemen, if any of you are finding it close in here, please feel free to take your jackets off.
Mr Bob Seely (Isle of Wight) (Con)
Q
The Chair
The questions are specifically for the witnesses and not for the civil servants.
Mr Seely
Q
Dr Ros Clubb: One of the reasons we would like a bit more guidance on the definition is to be clear about what is and is not out of scope. Scotland’s Act has guidance that has a list of activities that are specifically excluded. We would envisage falconry displays as you described them being captured within this legislation. As you say, it is not the intent of this Bill and we think that should be covered elsewhere. It is not that we are not concerned about falcons and other raptors being used in that way, but we do not think it is within the scope of this Bill.
Mr Seely
Q
Dr Ros Clubb: In order to alleviate any concerns about activities being covered that are not intended to be, it would be useful to have some guidance around the scope and that would belong in guidance.
Mr Seely
Q
Dr Ros Clubb: It very much depends how it is done in our experience. We approach it as we would any other animal welfare issue, looking at how it is done, how the animals are kept, whether they are flown sufficiently. There are some concerning aspects of the practice in terms of restriction of normal behaviour, but we understand that it varies very much with who is doing that practice. Within the legislation we are discussing, we do not see that being covered.
Mr Seely
Q
Daniella Dos Santos: They are still wild animals. Size should not come into the discussion of whether we are meeting their welfare needs. We are still not going to meet their behavioural or their enrichment needs in a travelling circus situation. Granted, the portable exhibits may be more suited to an animal of that size, but ultimately, we are still not meeting their welfare needs.
Nicola O'Brien: A large part of why we are here discussing this and considering a ban is that people are not comfortable with seeing wild animals being used in circuses. It does not matter what species they are; it is more about the fact that, although there are arguments about their welfare needs not being met in the environment, a large part of this is that people do not think we should use animals like that anymore.
Mr Seely
Q
Nicola O'Brien: Fair enough—not everybody, but going on the consultations carried out by the Government, and in Scotland and Wales, there is wide-ranging support for the Bill. That has already been discussed by Members. We have worked on this issue for 60 years—not me personally but the organisation has. The interactions we are having with people about this issue show strongly held beliefs that animals should not be used in this way, for welfare reasons but also relating to the use of wild animals in these environments.
Mr Seely
Q
Dr Ros Clubb: I think they have the facilities to do so far more than a circus does, because of the fact that they are permanent. I do not think that applies in zoos in their entirety—they very much vary across facilities—but they certainly have the ability to meet the animals’ needs much more than a travelling circus.
Daniella Dos Santos: An environment that is more permanent can be better adapted to meet an animal’s welfare needs than an environment that is constantly on the move. To pick up on the earlier point about the challenge that not everyone agrees, following a public consultation after Scotland introduced its Act, 98% of respondents backed the ban in Scotland, which is quite a large percentage of the public.
Luke Pollard
Q
Dr Ros Clubb: The RSPCA has offered many times to help to rehome the wild animals that are currently used. We reiterate that offer. We do not believe that there would be a need to put any animals to sleep. Obviously, we are as concerned as members of the public about the fate of those animals. We feel they should be rehomed, and our concern is that they will continue to travel with the circus but not made to perform. From a welfare perspective, we have real concerns about their being put through regular transport, being kept in temporary accommodation and all the other issues we have with that.
Sandy Martin
Q
Dr Chris Draper: In an ideal situation, absolutely. I think the risk of new—well, they are not new. The risk of species that are not currently in use being introduced is very real. There was, as I understand it, an application by a big cat exhibitor for a licence under the current system. In my understanding, the current licensing system was put in place as a temporary stopgap, but the unfortunate consequence of it is that it legitimises the use of animals in circuses. I think we need to do an about-turn from that fairly quickly, and if that can be done before January next year, so much the better.
Jordi Casamitjana: I agree: the sooner, the better.
Angie Greenaway: I agree. Our organisation conducted the investigation of those elephants when they came to a circus in this country. There is actually an act that toured multiple countries across Europe. Our investigation found evidence of chaining for 11 hours of the day and abuse from both the person caring for the elephant and the presenter. That is a real worry. A lot of these elephants have been captured from the wild and still perform in circuses. Anne the elephant was permanently chained in her winter quarters and violently beaten. The thought that that could happen fills us with dread.
It has been a few years since big cats have been in this country, but our investigations have shown that they are kept caged most of the day and exhibit stereotypical pacing behaviour to show that they cannot cope with the environment they are in. All wild animals suffer in circuses, but elephants and big cats suffer especially.
Mr Seely
Q
Dr Chris Draper: The point we discussed a little earlier about giving powers to the police for site visits and inspections and seizures would be an improvement on the current draft of the Bill. I defer to the RSPCA’s experience on the existing powers, given that it works so closely on those issues.
Jordi Casamitjana: In terms of animal welfare, the Animal Welfare Act comprehensively covers that. The bit it does not cover is in identifying whether there is a wild animal in the circus. You need powers in the Bill specifically for that purpose. It does not need to be a DEFRA inspector to cover that—it could be the police as well—but you need that extra power to be able to enter a location and find out which animals are kept there, whether they perform and whether they are wild. That is kind of beyond the Animal Welfare Act.
Angie Greenaway: I agree and defer to the RSPCA. Our issue is that we have exposed suffering and violence where inspections have not. It is about being aware. While these animals are allowed to be used, it is quite difficult to obtain evidence of their suffering. It takes long-term observation, and inspectors who just come for a couple of hours might miss things that are happening behind the scenes.
Mr Seely
Q
Dr Chris Draper: Taking what you said as examples, it sounds as like there is a justifiable challenge for the animals’ welfare based on the traveling you describe, but I do not think this is the legislative instrument to do that under; I think it would be better served looking at it differently, under the Animal Welfare Act, for example. I think it is important to keep the focus of the Bill as narrow as possible, to traveling circuses, as has been defined in common usage and as has been attempted to be defined in other constituencies—in Scotland and around Europe—in order to achieve what the public want and to protect the animals in use. I would not want the Bill to be derailed by greying the area into things like falconry when that could be specifically excluded, but that does not negate my concerns about the welfare of birds in falconry.
Mr Seely
Q
Jordi Casamitjana: We are against the use of any animal for entertainment purposes, but that does not mean that we are going to use the law to address the use of all animals for entertainment purposes. Obviously, the law deals only with wild animals. We are also against the use of any animal in circuses, domestic included, but the law does not cover that. If the law is specific enough, it will cover only the bits that the law defines—and I think it is specific enough. That does not mean that we are going to stop campaigning against the use of any type of animal, because there are other laws that might deal with that.
Mr Seely
Q
Jordi Casamitjana: Certainly, we are those animal rights people who say that. We believe that animals have an intrinsic value and they have the right to choose what they want to do. If you force them to do activities that they are uncomfortable about, and they are stressed by the way they are being trained, that should stop, because there is no need for it—there is no need for those things. That is our general attitude to using animals for entertainment in a blanket entertainment context and for all the animals involved.
Having said that, there are different ways to deal with it. One is to stop people doing them. You do not have to use bans all the time to stop activities; you can persuade people to stop doing those activities. The level of cruelty in each case varies to the point where you might have laws such as this one, which address those entertainment activities where animals are used that most people already recognise as cruel—most people, even if not all. That is what will happen.
The progress of animal protection over the years has always been pushing the envelope to the next phase, and people are starting to recognise animal suffering which they did not recognise before. They are sentient beings. That will obviously have an effect over the years. The obvious first step, however, is to deal with the cases that are the worst of all. Of all captive animals kept, and all animals used in entertainment, the circus, in my opinion, is the worst.
Mr Seely
Q
Jordi Casamitjana: I agree that there is a grey area and different interpretations. I am an animal welfare expert—that is my background. The fact that the behaviour is used in a domestic environment does not mean that that behaviour is the behaviour that the animal would use if it was alive and doing it their way.
For instance, an animal running from a predator is natural behaviour, but running too much is no longer natural behaviour, nor is running for another purpose, because it has been hit or for other reasons. There might be behaviours that have their origins in natural behaviour that have been forced and modified to the extent that they become an animal welfare concern. From that point of view, you can say that even humans have some behaviours that are instinctive and some that are learned. That is no different from any animal. We have feelings; they have feelings. We have intentions; they have intentions.
Angie Greenaway: Regarding the legislation, we know there is long-standing public and political support and commitment to legislate on the issue, as opposed to some of the other issues. People probably accept that there are welfare issues involved with those and things that we might speak out against, but there are inherent welfare issues with the travelling nature of the circus.
We also accept that there are issues with domesticated animals in travelling circuses. Actually, most opinion polls show that there is majority support for a ban on those species as well, although it is not quite as high as wild animals and it has obviously not been consulted on and debated. We would like that to be addressed in the future. There have been so many arguments about the science, the consultation process and all the markers along the way over the past 10-plus years. That is why it is really important to get this legislation through. I am sure people will address some of these other issues in due course.
David Rutley
Q
Angie Greenaway: That is something we have seen over the past 20 or even 30 years. Public opinion polls have shown that there has been consistent support— 70% or 80%—for a ban. The Government consultations in England, Wales and Scotland show that 94.5% to 98% are in favour of a ban. I think some of that is because people generally are more aware of the needs and the lives of animals through documentary programmes, scientific research that comes out and investigations by groups such as ours, which expose living conditions and the training and handling techniques used in circuses. When people are aware of that inherent suffering, attitudes change, and over time that is happening not just in this country but all over the world.
Dr Chris Draper: All I would add is that I think public attitudes have reached a crescendo. They perhaps reached a crescendo quite a few years ago and we have been kept waiting. This dates back to discussions in Parliament in the 1920s, in the run-up to the Performing Animals (Regulation) Act 1925. Concerns have been raised about how animals fare when they are used for entertainment and exhibition in circuses. Those concerns never went away, but awareness increased of what was going on behind the scenes. This is not just about people’s ethical and moral consideration of animals, as it was in those days. It is an emerging picture, but the picture is consistent: the public are now united against the use of animals in this way.
Jordi Casamitjana: I would go even further than that. Some 300 or 400 metres from here, years ago, there was badger baiting, bear baiting and bull baiting going on. In 1835 we banned those activities. There was already a concern then that having wild animals in a circus-like spectacle, where they fought with each other for entertainment purposes, was wrong. The enlightenment—this political, social and philosophical movement—started there, and it has not finished. Time is constantly moving. Our views about how we treat animals are opening up. We see animals as sentient more than we used to. We realise they are suffering. We realise their needs better than before. This drive towards a belief that we do not have the right to impose suffering on animals just for entertainment purposes has continued. It is not surprising that it has taken some time, but it has never stopped—and it will never stop, because that is what social progress does.
Wild Animals in Circuses (No. 2) Bill (Second sitting)
Bob Seely ExcerptsTuesday 21st May 2019
(5 years, 7 months ago)
Public Bill CommitteesRead Full debate Wild Animals in Circuses Act 2019 View all Wild Animals in Circuses Act 2019 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 21 May 2019 - (21 May 2019)
Mr Bob Seely (Isle of Wight) (Con)
Q
Peter Jolly: All our animals are, yes.
Mr Seely
Q
Peter Jolly: The thing is, we cannot explain it without people actually coming to see it. You have to see it for yourself. The animals are not stressed in any way. They are happy in the environment they are in. They are as far away from wild animals as you can get. We class it as handling; taming is not a word we use.
Mr Seely
Q
Peter Jolly: Camels have always been kept by one nation or another.
Carol MacManus: There is evidence on the internet that there are only 100 wild camels left and that there are three different species of camel: the domestic dromedary, the domestic Bactrian and the feral Bactrian. We definitely do not have the feral Bactrian.
Mr Seely
Q
Carol MacManus: Well, we will have to. We will be forced to do that if the ban comes in, won’t we? We will still continue with animals in circus, yes.
Mr Seely
Q
Peter Jolly: We can’t really comment on that, because we do not have them. We do not work with them to see that.
Mr Seely
Q
Carol MacManus: Not if they are kept correctly, no.
Peter Jolly: It is all down to them being kept correctly, and to animal welfare standards being high. You have got to provide the facilities.
Mr Seely
Q
Peter Jolly: My camels are in 10 acres of ground at the moment.
Carol MacManus: We are not asking for that. We are asking if there is any possibility, somehow or other, to make a little amendment so that our animals can carry on travelling—
The Chair
I should have advised everyone at the start that this session can run until 3.30 pm.
Mr Seely
Q
Martin Lacey: I understand all your questions because, like I said before, I have learned from work with politicians that they do not understand so much about the circus. What we have to understand is that the circus is 250 years old. I am an animal trainer; that has evolved in the circus over 250 years. I was at boarding school in Lincoln, and I had these questions from my friends in the RAF, the Army and normal life—not circus life. Stress really interested me: do animals have stress when they travel from town to town?
I was the first person to do stress tests on my lions, when many people said, “Don’t do that, because they might have stress.” No, we love our animals, and we want to see whether it is really bad for them to travel. I was the first person to do checks with my lions—with lions in Africa and with lions in Zürich zoo in Switzerland. It was a private handler and me, looking at whether the animals do not do enough. The studies showed that my animals were more busy; in fact, we had to ensure that they did not do too much. A lion needs 18 to 22 hours’ rest. When you have two shows a day and training, they have a very full day.
As I said, my family comes from zoos. My mother and father said those things in the 1960s, and everybody thought that they were crazy. They were doing shows in the zoo—they owned Sherwood zoo and Sunderland zoo. They then went into working with the animals, because it was proved, again on facts—Marthe Kiley-Worthington—that the animals benefit from training.
Mr Seely
Q
Martin Lacey: Absolutely correct. It is exactly what Rona was saying: you have good and bad in every walk of life. We have good politicians and bad politicians; we have good animal trainers and bad animal trainers. I have worked with big cats since I was 17. We are inspected every week by the vets in Germany. The inspections are a little more rigorous than in England, and a prosecution has never been brought against me. In fact, the vets always speak about my work.
When you ask me about animals in the circus, you have to understand many things. Things have changed. I keep hearing about “tricks”. There are no tricks in a modern circus; it is natural movement. We are working with animals. My lions are 22 generations born in the circus. Yes, they would still be classed as wild animals, and they still have their instincts. However, it is just like when a dog walks around before it lies down on the floor. Those are instincts that dogs have from when they were wild dogs, because they were getting rid of the snakes on the floor before they lay down.
The instincts will stay in the animal, but we have done all the scientific reports to see whether the animals have everything that they need. We have checked whether they are stressed, whether they have what they need in nature, whether they have their social group and whether they are busy enough. As animal trainers, we look for all those things. We asked for those studies to be done, and they are controlled studies with vets because we want the best for our animals. Everything has evolved. Zoos used to have animals in small cages, but they evolved into natural gardens. The circus has also evolved.
Mr Seely
Q
Martin Lacey: First of all, I am talking about facts. This is not just what I say; it is fact, because we have done enough studies, although they have sadly not been listened to by the English Government. The RSPCA has also rubbished the studies that have been done.
We do not have much time, but afterwards I will give you the modern way lions live in a circus. I have a book; it is all in German, of course, but I have translated the foreword so that you can understand what it is about. There are lots of pictures that tell you what we do with the animals—if you are interested, after the meeting I have the books for you. It was very short notice; they told me on Thursday to come, and I flew in this morning from Frankfurt. I have done that for you so that you can understand that things have changed. I understand what you are saying, because for the last 20 years you have not had a circus with wild animals. Is that correct?
Rona Brown: We have, because at the beginning of the regulations Peter Jolly’s circus had three lions and two tigers.
Martin Lacey: Was it a good example?
Rona Brown: It was very well put together, yes. It was Peter’s licence, and Peter monitored it, looked after it and made sure that everything was correct. They left Peter’s circus after the first year, and on their own they have been unable to get a licence since. It shows that wild animals such as lions and tigers can be looked after properly and comply in the circus.
Mr Seely
Q
Martin Lacey: That is a very good question. In the wild, the life expectancy for a lion would by nine to 11 years old. Because now, as we all know, the wild is getting less and less—there are controlled parks—lions are living to around 12 or 13. It is not like before. Very sadly, we do not know what will happen in the next 20 years, so we should actually support well-run circuses and zoos. For a lion in a circus or a zoo, the age expectancy would be around 15 to 17 years old. In fact, all the lions with me live more than 20 years. I lost a lion just last year that was 28 years old—I think that was probably the oldest lion in the world. We are very proud of that. We have had 22 generations of lions.
What is very important, and what you have to remember, is that animals in circuses are not inbred. From my experience, in a zoo—I am not knocking zoos because my family come from zoos—you are there to look at the animal. We work with the animals. It is very important that we have the Einsteins of the circus world. We are very careful of the bloodline, and because we have been very careful, my family—some of the biggest protectors of lions—can still breed lions for the next 60 years, for future generations, with different bloodlines. That is very important when you see all the different problems in the wild.
The Chair
Q
Martin Lacey: Yes. It is in German, but I have added a foreword just so that you get the idea of the book.
Thangam Debbonaire
Q
Rona Brown: That is my opinion.
Thangam Debbonaire
This is in Mrs Brown’s evidence, and I want to know what she thinks it has to do with the Bill.
Luke Pollard
Q
Mike Radford: They are not terms of legal art; it would be for a court to decide. On certainty, Ms McManus talked about the racing camels. We go to our local agricultural show every year, 20 miles north of Inverness. Two or three years ago there were racing camels there. I assume that they were on a tour. They would not normally have been regarded as a circus performance, or circus undertaking; it was a troupe of camels. Again, Parliament needs to decide whether there is an ethical argument for the ban, and that is a matter of judgment. If there is, it then needs to make very clear definitions in the legislation of the animals and the context. Otherwise, it is going to be a mess.
Mr Seely
Q
Mike Radford: I am here as a lawyer, not as an ethicist or scientist, but it is clearly open to society to make a judgment and decide that all those are unacceptable, some are unacceptable or none is unacceptable. So far as wild or non-domesticated animals in circuses are concerned, my understanding is that there is a view, which seems to be shared in Parliament and among certain elements of the public, that it is no longer acceptable, time has moved on and non-domesticated animals should not be used for performance and entertainment in this way.
Mr Seely
Q
Mike Radford: I would answer that by giving examples of where attitudes have changed. Fur farming is a very good example: it was considered to be a perfectly acceptable agricultural undertaking. Parliament decided that it should be banned earlier this century, in 2000. The situation with hunting with hounds is that it has not been outlawed altogether, but it was put on a different basis, because public opinion and public perception moved on. I am not in a position to give you different percentages, but clearly it is up to Parliament—you as our representatives—to make that judgment.
Mr Seely
We are shifting the balance, so there is a public perception. Do you know what the polling is over approval ratings or disapproval ratings about “wild” animals in circuses, and how do you think that fits in with the human rights agenda, considering that in this society we use animals for food, entertainment and other things anyway? Where is that balance?
Mike Radford: My personal opinion is that the first thing that is important is trying to provide an animal with a decent standard of life. Whether that can be done in a circus or not is not for me to decide; it is for Parliament to decide.
Mr Seely
Q
Mike Radford: Circuses have been subject to an offence of cruelty for a good number of years, going back to 1835. Standards, however, have changed during that time. Circuses have been subject to the Animal Welfare Act provisions since 2006. Let me give you an example of how attitudes change. This is not to do with circuses, but I think it illustrates the point. When I was young, if there was an unwanted litter of puppies or kittens on a farm in Cambridgeshire, where we lived, it was standard that they would have been drowned in the water butt. What else would you do? That is now an offence of causing unnecessary suffering, not because the law has changed—the term “unnecessary suffering” is exactly the same—but because public perceptions and attitudes have changed. It is about judgment and attitudes.
Sandy Martin
Q
Mike Radford: I think that as much should go in the Bill as possible. Guidance can be helpful, but it is not the same as legislative provisions, as you well understand. The question of how quickly a ban could be introduced was raised earlier. My view is that those who have a licence to use wild animals are entitled to have a legitimate expectation that their licence will remain in place until it expires, and they could have a claim for compensation if it was stopped earlier, but there is no expectation beyond the lifetime of the present licences.
Leaving the EU: Economic Impact of Proposed Deal
Bob Seely Excerpts(5 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
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Mr Speaker
No, I do not need the hon. Gentleman to get up. Remain seated and behave with courtesy. What on earth has got into you?
Finance (No. 3) Bill
Bob Seely ExcerptsMonday 12th November 2018
(6 years, 1 month ago)
Commons ChamberRead Full debate Finance Act 2019 View all Finance Act 2019 Debates Read Hansard Text Read Debate Ministerial Extracts
Mel Stride
My hon. Friend is right: the Scottish National party will know that when it took the decision to reorganise fire and police in Scotland, it was fully aware and cognisant of the fact that that would mean that VAT was not recoverable. It really is thanks to the Members on the Conservative Benches who represent Scottish constituencies who have made the case so strongly to the Treasury that we were able to change that situation going forward. Perhaps I may now be able to make a little progress.
We have, of course, also announced that we are freezing fuel duty for a ninth year in succession and increasing the living wage by 4.9% from April. In this Bill, we deliver a freeze on the duty on beer and spirits, keeping living costs down and supporting our pubs. Our freezing duty on spirits comes as a direct consequence of Conservative Members representing their constituency interests in the industry.
Mr Bob Seely (Isle of Wight) (Con)
I support so much of this Budget, which was superb, with the cut in business rates and, especially, the beer duty freeze. Will the Minister agree to meet me and pub owners from the Isle of Wight, because there is still a problem with the way that publicans—small business owners—are being treated by the big pub companies, especially Enterprise Inns, which has quite an aggressive business style that is pushing many of my local pubs into bankruptcy? Is there more that we can do on the pubs code?
Mel Stride
I thank my hon. Friend for that important intervention. I know what a doughty supporter he is of the high street, and pubs in particular. We do of course, as a Government, support and have frequent conversations with organisations such as the British Beer and Pub Association. However, I would be very happy to meet him, as he requests, to have that discussion.
This Bill will provide additional relief from stamp duty for first-time buyers who enter into a shared ownership arrangement, and will back-date this relief to benefit those who entered into their purchase on or before the date of the Budget. We will continue to champion home ownership, as well as backing hard-working people and bearing down on the cost of living.
For every Member of this House, the high street lies right at the heart of the communities that we serve. High streets hold within them the very essence of the best of the human spirit—community, creativity, individuality and a collective purpose. They are the places we come together to work, to shop, to socialise, to support, to celebrate, and to invent and create, and this Government wish to see them thrive. That is why we have announced a two-year reduction in business rates of one third for smaller retailers, meaning that up to 90% of high street retailers will benefit. It is also why, in this Bill, we will legislate to allow for the further reduction of corporation tax from 19% to 17% in 2020, helping businesses both large and small. As tax rates have declined—as we have discussed—the corporation tax yield has increased by 50% since 2010. Backing our high streets means backing Britain, and this Government will play their part in this great endeavour.
This Bill will support businesses through the introduction of key allowances and enhancements to important tax reliefs. The structures and buildings allowance will provide a vital tax break for those businesses investing in new commercial property. The annual investment allowance will be increased from £200,000 to £1 million for the next two years, ensuring that companies have a critical additional incentive to invest.
For businesses concerned with deep-sea oil extraction, we will allow for the transfer of their historical tax history, ensuring that jobs, expertise and businesses involved in the North sea are preserved—a measure that the shadow Treasury Minister, the hon. Member for Norwich South (Clive Lewis), described as “corporate welfare” and said should be voted down. That position should be evidence enough that Labour has truly given up on Scotland, something that the Conservative and Unionist party will never do. On the Opposition Benches we have Labour Members who have given up on hard-working people, SNP Members who have given up on our precious Union, and Liberal Democrat Members who have just given up.
This Bill is also about fairness. It introduces a number of important measures that will further clamp down on tax avoidance and evasion. The House will know that this Government have an outstanding record with regard to the collection of tax. We have one of the lowest tax gaps in the world—far lower than was the case under Labour. In fact, the additional revenue raised by having our tax gap at its current level, compared with that in 2005-06 under the last Labour Government, is enough to pay for every policeman and policewoman in England and Wales.
Collecting tax also matters because where taxation goes uncollected, others who do the right thing are required to pay still more, our vital public services go without, or we have to increase borrowing and the burden is passed on to our children. Tax avoiders, whether the largest corporates or the wealthiest best-advised individuals, diminish us all. This Government will continue to clamp down on avoidance, evasion and non-compliance. Specifically, this Bill brings in measures further to address corporate profit fragmentation, whereby companies reduce their tax burden by artificially shifting around their revenues. In the Bill, we will ensure that non-residents pay tax on the capital gains they make on UK commercial property. The Bill also strengthens our diverted profits tax, which has already brought in and protected £700 million since 2015.
This House will know that we have announced a digital services tax, so that large multinational businesses such as search engines, social media platforms and online marketplaces pay their fair share in tax—right here in the United Kingdom.
Economies of the UK Islands
Bob Seely Excerpts(6 years, 7 months ago)
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Alan Mak (Havant) (Con)
I beg to move,
That this House has considered the economies of the UK islands.
It is a pleasure to serve under your chairmanship, Mr Rosindell. I thank the Speaker’s Office for granting this debate, the Minister for coming to respond and all right hon. and hon. Members for joining me. In particular, I thank my hon. Friend the Member for Isle of Wight (Mr Seely) for the important role he has played in instigating and securing this debate, and in launching the all-party parliamentary group for UK islands, of which I am proud to be a founding member.
Island geography has played a pivotal role in shaping Britain’s history, and has contributed to the culture, society, institutions and economy that we enjoy today. Similarly, the smaller islands that are part of the UK also have their unique history, communities and economic structures, stemming from their own geography. Nearly every aspect of life on these islands, including their economies, is impacted on in some way by their geography. The debate is about showcasing and celebrating the economic strengths of our islands, highlighting the challenges they face and exploring how central and local government can help our islands get fit for the future. We are all islanders in one form or another and we should work together to protect and enhance these extraordinary communities and their economies.
Within my constituency, Havant, I have the honour of representing more than 17,000 residents on Hayling Island, one of Britain’s most successful inhabited islands. The island has a fascinating history dating back to the iron age, stretching through the 11th century, the salt production industry and serving as a location for a mock invasion in preparation for the D-day landings. As important as Hayling’s remarkable past are the exciting possibilities for its economic future. Northney, West Town, Eastoke, Sea Front and Mengham all boast an array of strong, independent businesses. Some of these are small, such as the Hayling Island Bookshop, reputed to be the smallest independent bookshop in Britain. It was a finalist in the parliamentary best small shops awards. There are others, such as Bentley Walker, which started life as an electrical goods shop and has now diversified into a provider of satellite-based internet technologies, serving customers around the world. Others, such as Northney Ice Cream, the Coastguard Café and the Seaside Florist, are family-owned. All of these Hayling businesses and others have their own character. While owners and employers are always eager to help the local community, they also give the island its distinctive welcoming character and a strong sense of community, engendering a strong sense of loyalty among local residents.
That warmth has made Hayling a great place to visit and helped it to build a strong visitor economy. The tourism industry is worth more than £160 million to the Havant and Hayling area each year. Hayling’s beaches are award-winning; the three main beaches of the island have won both the European blue flag and the Keep Britain Tidy group’s seaside award flag for cleanliness and management. Eastoke Corner beach has been awarded a blue flag for more than two decades, attracting visitors from each of the three busy holiday parks across the island, which are also key employers.
Beyond the beaches, the island’s sailing clubs also bring in visitors who enjoy our natural environment. The annual Virgin kitesurfing festival also attracts thousands of water sports enthusiasts from around the world. The island’s remarkably low crime rate makes it a safe place for business to start and grow. The coastal and semi-rural nature of the island lends itself to the establishment of new businesses set up by local entrepreneurs such as John Geden, who established Sinah Common Honey. Each jar of honey is said to derive from nectar from more than 1 million flowers. Hayling’s rich rural environment provides a sustainable, natural dimension to Hayling’s economy. As of March 2018, only 115 of Hayling’s 17,573 residents were claiming unemployment benefits of any kind—just 1.2% of the population, compared with the English average of 2.1%.
Although Hayling’s unique geography is a source of economic strength and community spirit, the island and others around the UK also face unique challenges. There is a consistent need on Hayling Island and other islands across the UK to work harder to create sustainable and attractive employment opportunities for our residents, especially younger residents and school leavers. Any dip in opportunities for younger generations carries with it potentially destabilising knock-on effects for our wider economy. A brain drain, even a temporary one, can mean that our local businesses struggle to hire workers. The 2011 census indicated that there were 4,060 people living on Hayling Island who worked elsewhere, out of a working population of 9,934. Just under half our working residents commute off the island via a single road bridge most days of the week.
It is absolutely crucial that we equip all our islanders, especially our young people, with the skills to succeed in the economy of today and that of the future. I therefore welcome the fact that four of Hayling’s schools, Mill Rythe Infant School, Mengham Infant and Junior Schools and Hayling College are rated as good by Ofsted, with Mill Rythe Junior School rated as outstanding. As with many coastal communities, however, we still have pockets of deprivation and underachievement that hold back our economic potential and productivity.
Although schools across the whole Havant constituency, including Hayling Island, receive higher than the national average in per-pupil funding, I believe that the Government’s new national funding formula can do more to help pupils who suffer from the most extreme forms of deprivation, particularly in coastal communities. I have met the Minister for School Standards and the new Secretary of State for Education on several occasions to lobby them on this issue. I hope the Exchequer Secretary shares my desire to ensure that every young islander gets the best start in life, so that they can contribute effectively to our economy in the future.
The other challenge our island economy faces is the over-exposure of our business community to changes in the island’s service infrastructure. We live in an age of digitisation, as I have emphasised in my other work in this House on the economic opportunities of the fourth industrial revolution. As online banking increases, footfall in local banks will inevitably fall. This has led to the closure of Mengham’s NatWest and Barclays branches on Hayling, and I am sure other hon. Members face similar situations in their constituencies.
Although residents on the mainland can mitigate the closures by driving to a nearby branch that remains open, Hayling only had one branch of each main bank. In recent years, closures have forced many residents to travel to the mainland using the single road with increasing regularity. I am aware that this has been touched on and tackled elsewhere through the access to banking protocol, the Griggs review and the access to banking standard, and is ultimately a commercial decision beyond the Government’s control, but I want to raise it to emphasise the heightened sensitivity of the economies of the UK’s islands to changes in the economic infrastructure—they impact on us severely.
Public transport is key to a vibrant economy within an island as large as Hayling—transport between the island and the mainland, and in neighbouring areas, such as Portsmouth. Any diminution in service has a disproportionate impact on island communities for residents and visitors alike, especially on islands such as Hayling, which are both coastal and semi-rural. The Hayling ferry, for example, is a valued community resource that also helps the island economically. The ferry’s owners and operators are putting together a business plan to make it commercially viable in the long term, working with local councillors—something I support. I hope that my hon. Friend the Minister will join me in wishing them every success as they seek to secure a long-term solution to ensure that we have a positive local impact from the ferry. Road infrastructure is equally vital. High-quality road networks are important, particularly as new housing is proposed on Hayling Island to meet local demands. Digital, structural and economic services are vital to the economic wellbeing of our island.
We live in a world of unparalleled opportunity thanks to technological innovation and a host of businesses are now footloose thanks to the advent of the internet and online shopping. On Hayling Island, 96.9% of premises can receive superfast broadband, set against a UK average of 93.5%. We are fortunate to be close to the mainland with a strong digital infrastructure, but I know that many islands are not so fortunate. With services such as banking increasingly moving online, fast download speeds are essential. That should be an area in which the Government can support island communities.
I commend the Government’s efforts to date to support island communities. In 2011, the Government established the coastal communities fund and since then, four funding rounds have been completed, awarding a combined total of £173 million. Only 9% of that funding, however, has been awarded to projects based on islands, and 70% of that has been allocated to islands in Scotland. I do not begrudge any of the funds that have gone to those recipients. Instead, I seek to highlight our collective and continued need for sustained development and support for the UK’s islands, including Hayling Island.
In March 2015, the then Department for Communities and Local Government established coastal community teams in order to encourage,
“sustainable economic development and regeneration in coastal towns.”
Each of the 146 coastal community teams that have been established were awarded £10,000, yet only three were exclusively based on islands. I am delighted that one, the South Hayling Island coastal community team, was based on Hayling Island.
Although the coastal communities fund was established with the aim of providing funding to create sustainable economic growth and jobs, it has become largely project-focused rather than addressing the structural, systemic and strategic challenges faced by UK islands. Consequently, I hope the Minister and the Government will consider expanding or complementing the coastal communities fund so that it can provide stronger strategic and structural support to the economies of UK islands. The reformed fund would be exclusively available to island communities, such as Hayling Island, to apply for.
Mr Bob Seely (Isle of Wight) (Con)
I thank my hon. Friend for securing the debate. I strongly support the proposal, and I am glad that he is raising it with the Minister, because one of the problems is that islands are sometimes too small for the Treasury to be interested in as economic enterprise zones, which we need on the Isle of Wight and in the Medina valley specifically. With an enlarged coastal communities fund, perhaps one that looked specifically at driving economic regeneration, relatively small sums of money could make a great deal of difference and would go down very well.
Alan Mak
I thank my hon. Friend for that sound intervention and again for his role in securing the debate. I entirely agree with his points. As I was saying, a reformed coastal communities fund would be incredibly important to coastal communities such as Hayling Island and his constituency. It would be exclusively available to island communities to apply for to help them to meet the specific and unique challenges they face as a result of their specific and unique geography. As I mentioned in my opening remarks, those challenges include an oversensitivity to changes in local infrastructure, expensive or sometimes congested transport connections to the mainland, a skills gap and a need to support local, independent businesses, all of which could hamper economic growth if not addressed.
In conclusion, we are all islanders. Britain and its satellite islands are a beacon to the world of how innovative, welcoming and economically successful islands can be. After all, the UK is one of the largest and most successful island economies in the world. However, to make our island economies sustainable and resilient, on Hayling Island and beyond, we must help to tackle the systemic and structural challenges they face. I hope that central and local government will play their part. By doing this, we can ensure that islanders across the UK enjoy the bright economic future they deserve, and that they not only are fit for the future, but get to the future first.
Mr Bob Seely (Isle of Wight) (Con)
Thank you for calling me, Mr Rosindell; it is a pleasure to serve under your chairmanship.
I also thank my hon. Friend the Member for Havant (Alan Mak) for securing this debate and for being part of the all-party parliamentary group for UK islands. His presence here is very welcome and he spoke very eloquently about the needs of Hayling Island; once upon a time, when I was very young, I visited it and I remember how lovely it was. I also thank the right hon. Member for Orkney and Shetland (Mr Carmichael) for his contribution: it is always good to hear of the experiences of other islands.
As we know, this is not a debate about places such as the Channel Islands and the Isle of Man, which are Crown dependencies. This debate is about islands that are fully within the governance of the United Kingdom, but clearly they have physical characteristics that make them islands and give them distinct traits. Indeed, our islands are unique and special places, and to represent my island is a passion and a privilege, which I am incredibly grateful for. I love being here, but I would not want to represent anywhere other than the Isle of Wight.
Islands are, by definition, at the fringes of our nation, but they also help to define us, and they have a special place in our geography and culture. However, my argument to the Minister who is here today—I am very grateful for his presence—is that islands do not always get their fair share, because they are overlooked. In the case of my island and my constituency—the Isle of Wight—that is especially true.
By way of example, the Scottish islands get the Scottish islands needs allowance, or SINA, which comes from the Scottish Government. So they get the Barnett formula money, which is generous, and on top of that they get the SINA. If I remember correctly and have my facts right—I am sure the right hon. Member for Orkney and Shetland will correct me if I am wrong—the Western Isles, Orkney and Shetland get an extra £6 million a year through SINA, in acknowledgment of the fact that supplying Government services on islands tends to cost more than it does on the mainland. The Isle of Wight gets none of that money, despite the fact that we have a population four times bigger than that of the Western Isles, for example, and two, three or four times bigger than that of Orkney, Shetland and other islands.
So we do not get our fair share, and when it comes to “fair” funding we are unfairly funded. The central reason for that is simple: it is the Solent. Government funding systems are not designed to deal with isolation by water. The rural isolation grant and the rural farming grants are all predicated on a sense of isolation, but isolation on land and not isolation by water. One of the arguments that I am trying to make, and I have already made it to the Minister’s colleagues in other Departments, is that a fair funding formula needs to take into account isolation by water.
I have gone straight into the meat of my speech; I will now go backwards a little bit. We are very much open for business on the Isle of Wight; we are trying to attract new businesses to the island; and our regeneration team and our council have a very ambitious programme, which I absolutely support, and I will work hand in glove with them.
In fact, we have a unique scientific heritage. Marconi set up the first experimental wireless station off the south coast of the island, on St Catherine’s Down, which, by the way, is one of the sunniest places in Britain; seaplanes were built by Saunders-Roe in East Cowes; and we have major employers and a cluster of defence, composite and high-tech industries, including companies such as Gurit, BAE Systems, GKN, which is now part of Melrose, and Vestas. Indeed, a high percentage of the world’s large offshore turbine blades are made on the Isle of Wight at the Vestas factory. Vestas is doing great work on the island, and I thank it, as I do all employers, for its presence. So we are very much home to high-tech businesses that are at the cutting edge of their industries.
As I have said, however, there is a problem with providing Government services on the island. A University of Portsmouth 2015 study said that the extra costs of providing Government services on the Isle of Wight were £6.4 million a year, because of the costs of being an island. The university broke that figure down into three: first, the cost of self-sufficiency, because of the lack of spill-over of public goods provision; second, what it called an “island premium”, which is the additional cost of conducting business on and with islands, which the right hon. Member for Orkney and Shetland will know about; and thirdly, the sense of dislocation, which is the physical and perceived separation from the mainland and which could come from providing services to a smaller population and a smaller market.
I will give an example. At care homes, there was a clear mistake that we are rectifying. Elderly folks were put into care homes earlier than on the mainland, yet our care homes were costing more than the mainland because of the lack of competition between them. To some extent, another issue was their high quality. The cost was pushing additional burden on to our adult social care costs, which skewed our funding so that we could not spend the money on infrastructure to provide jobs and on a jobs agenda. That is absolutely vital in keeping our youngsters on the Island, which helps make us the vibrant and successful community that we are, and which we are building on as well.
In those three different ways—full self-sufficiency, the island premium and dislocation—there is an extra cost for Government services on the Isle of Wight. That has been estimated, in an academically rigid, peer-reviewed article, to be £6.4 million a year, and that does not include other factors that I would like to bring to the attention of the Minister. One of those is the Green Book estimate. Green Book estimates are the terms and references for Government investment, and they do not work for the Island because we are physically isolated. We cannot do the things that work for Southampton, Portsmouth or, indeed, for Havant, because we are physically separated. The Green Book estimates process counts against the Isle of Wight in providing infrastructure.
I have mentioned separation by water in terms of the rural isolation grant. For farming grants, things are prejudiced against us because we are in the wealthy south-east. In many ways, we get all the downside of being part of the wealthy south-east—we do not get that extra support as we are seen to be in the wealthiest area of the country—when in many ways our economy is similar to that of west Devon or Cornwall. There is some tourism, some culture, farming and little clusters of high-tech industry. Whereas lovely places such as Cornwall get money thrown at them through EU grants and Government support, we have had very little of that.
The amount of money we would ask for from central Government to make the Island even more of a success is really very small. I would love to sit down and have that conversation with the Minister in greater detail. The answer is not devolution, because the housing system sadly does not work for us, and we will be arguing why we are an exception. We want a modest, tailored package of support that recognises that we are an island. That £6 million extra in fair funding would be of benefit for the council, and would recognise that because we are an island, we need an A&E and a maternity unit, because someone cannot give birth on a helicopter going to the mainland, and the ambulance cannot wait for four hours to get the ferry overnight. Our funding in health services and many other things is skewed by the fact that we are an island, and that is not recognised.
We have many little clusters of excellence. Our tourism economy is significantly improving. We will very soon have one of the best broadband services in the world. Thanks to our wonderful local company, WightFibre, and the Department for Digital, Culture, Media and Sport—I thank them very much indeed—we are getting significant sums of money so that we will get ultra-superfast broadband for five out of six houses on the Island. If someone has a broadband business, the place they want to be is not London, Old Street, Moorgate or Brighton, but Cowes or Newport, where they will get broadband speeds comparable with Singapore. What I need to do, working with colleagues in the council, is determine how we get the other one sixth of houses in the more rural and very rural areas linked up to that as well, so that people can have Singapore broadband speeds in their little farmhouse in Newtown Creek, Brighstone, Chale or wherever.
Most importantly, education is critical to our future. It is improving and is becoming a success story. We probably need to work on restructuring our sixth forms, but most importantly, I would like to have a conversation with the Treasury and the relevant Ministers about getting significantly more higher education to the Isle of Wight, specifically a university campus. I would like that to be in Newport as part of our critical Newport harbour redevelopment. It may be that it goes elsewhere. Higher education would clearly lead to much higher levels of higher education, but it would also drive our software businesses, which the right hon. Member for Orkney and Shetland spoke about, and other key investments.
We have also won special status from the Arts Council, and we are building a much stronger cultural offer for tourism, education, aspiration and, critically, regeneration. It is important for the Minister to be aware of that. I would love to have a conversation with him about our farming and small businesses. I am having a conversation with the Minister for Agriculture, Fisheries and Food, my hon. Friend the Member for Camborne and Redruth (George Eustice), about mobile slaughtermen. Once we leave the European Union, we will be too small to have an abattoir, yet our field structure on the Island is perfectly suited to animal husbandry, and we are very keen to support local food production, which is good for multiple reasons, over and above employment.
Mr Carmichael
I understand exactly what the hon. Gentleman says when he talks about the Island being too small to have an abattoir—we have the same issue in the Northern Isles—but I suggest that is not actually the case. The Isle of Wight is surely too small to have an abattoir only in the way we regulate and manage abattoirs currently. A more sensitive system of regulation would surely allow a good business there.
Mr Seely
The right hon. Gentleman makes a very good point, and I am happy to take that correction. Post-Brexit, we need to change the rules for farming so that we have smaller abattoirs or mobile slaughtermen who can kill animals humanely on the farm to allow them to go into the human food chain in a way that does not exist at the moment.
Finally, I would like to have a conversation with the relevant Minister in due course about BAE and the need to have a complex radar technology demonstrator in Cowes. If we wish to keep radar technology in this country for the next 50 years—there is a critical national interest in doing so—the only realistic place to have it is where the aircraft carriers, the Type 45 and all the Royal Navy warships are made, which is in West Cowes at the BAE plant. I want to bring together BAE and Government to have that conversation. We are talking about small sums of money—£5 million, £10 million or £15 million—to secure a complex radar technology demonstrator, so that we can keep those high-tech jobs and that high-tech knowledge on the Island. I will wind-up now, Mr Rosindell. I apologise; I have taken a touch too long.
The Island is a success story, but I do not believe the Government have engaged with us enough over the past 10 to 20 years to maximise our success in building a new economy and an advanced education system, doing all the things we need to do regarding our infrastructure, such as our broadband and all the high-tech jobs, and making the Island the economic success story that it is. I reinforce the point about the coastal communities fund and the importance of the Treasury spending a little time and effort to understand islands, their unique circumstances and the amounts of money—very small in the great scheme of things—that could help drive enterprise and economic progress. More than anything, I want my constituency, the wonderful Isle of Wight, to contribute economically, rather than being a place that gets handouts from central Government because we say we are poor and do not have this or that. With a bit of help from the Treasury and the Government, and greater integration and support, we can drive our success story further.
Bill Grant
I fully accept the right hon. Gentleman’s intervention. I hope that those endeavours will bear fruit and be recognised. I think that the NorthLink Ferries services do not attract the same support.
We also host the world’s last seagoing paddle steamer, the Waverley, based in Glasgow. She is a wonderful way to do what we say in Scotland is a trip “Doon the Watter” that takes people to various islands such as Arran and Cumbrae, which I am sure we will hear about later. It is a great opportunity to see the wonderful west coast. She also plies her trade off season down here in the Thames.
Bill Grant
I thank my hon. Friend for bringing that to my attention. I am sorry for missing out the Isle of Wight. The Waverley is a wonderful asset to the nation and is the world’s last seagoing paddle steamer, supported by a charity and the nation.
Though uninhabited, Ailsa Craig is an island that sits off my constituency in the Firth of Clyde and plays host as a bird sanctuary to gulls, guillemots and puffins. Most importantly, it provides the granite for the best curling stones in the world, hand-crafted by Kays of Mauchline in Ayrshire. When we see curling on television, the curling stone almost certainly originated from the island of Ailsa Craig.
It is important to note in this debate that island communities in Scotland and across the United Kingdom are diverse. No two islands are the same, and although they often face a similar set of economic challenges, they each have their own unique circumstances: for example, population. Scotland has four islands with populations above the 10,000 mark, and those islands’ economies have different needs from the many Scottish islands with populations below 100. In the case of many of those smaller communities, probably the most pressing economic issue requires acting to prevent depopulation and working to secure the long-term future of those communities. Retaining young people on the islands to give them continued vibrancy is important.
The population of Scotland’s islands increased by about 4% between 2001 and 2011. That is a welcome development, which I hope will continue and even accelerate over the coming decades. In many cases it is very challenging to sustain island populations. Although Scotland’s four largest islands recorded an increase in that period, it is sad to note that communities of fewer than 50 inhabitants still experience, in general terms, the risk of a drop-off in population numbers. When we talk about the economies of the islands, therefore, we must be sure to include all the islands and not just the larger and identifiable ones such as the Isle of Wight.
Scotland’s small island communities are some of the most unique and beautiful places in the entire United Kingdom, and it is important that their future is secured as well as possible. Scottish islands of all sizes have great economic potential, and both the Scottish and UK Governments need to work together to ensure that that potential is fulfilled. The right level of investment and support, as mentioned earlier, is needed across the islands, but particularly in areas such as transport, fuel costs and maintaining the vital links that give islanders access to the basic services that people on the mainland simply take for granted.
Connectivity is vital for Scotland’s remote islands. For island communities as well as other rural and remote areas, broadband is necessary to ensure that the communities’ economies do not get left behind. I hope that the UK Government’s welcome intervention in the broadband roll-out in Scotland will deliver results sooner rather than later.
As was mentioned before, 4G and 5G connectivity are vital to local economies across the United Kingdom, and island communities are no different. If our islands keep pace in terms of mobile connectivity, they have a better chance of keeping pace economically, which is essential for a vibrant future for the islands. The Islands (Scotland) Bill, which is currently going through the Scottish Parliament, will be judged on the outcomes it produces, and I hope that islanders will not be disappointed. Our islands, of all sizes, can and should have a bright future ahead of them.
Finally, if anyone is minded to secure a tranquil, peaceful holiday, they would do well to visit a Scottish island.
Patricia Gibson
As I said, I understand the right hon. Gentleman’s frustration, because we all want to fight for our constituents and secure for them whatever advantages we can as soon as possible. He will also remember that I said that the Isle of Arran got RET in 2014. From what he said, that was a considerable distance behind the first roll-out. The fact is that the roll-out is a process and a programme. Obviously, the islands that are not at the front of the queue will be frustrated and impatient, as they should be. The fact is that RET—as I suppose his frustration suggests—is a huge benefit to island communities, and any island would be mad not to want to secure those advantages as soon as could be arranged.
The object of road equivalent tariff is to increase demand for ferry services by making ferry travel much more affordable and more accessible, to increase tourism and to enhance the local and wider national economy. That is why the right hon. Member for Orkney and Shetland, the hon. Member for Ayr, Carrick and Cumnock and I are so excited about it. In order to be as helpful to the Minister as I can—I always try to be helpful to my colleagues—I intend to paint a brief picture to show him the positive impact that road equivalent tariff can have, in case it is something that he wants to consider rolling out in the rest of the UK. It helps to offset some, though not all, of the challenges that are faced by island communities, which we have heard a wee bit about today.
In the case of Arran routes, such as the Brodick to Ardrossan route and the route between Claonaig and Lochranza, stimulation of the economy has certainly been achieved. Arran’s economy—if you can believe this, Mr Rosindell—has grown by 10%, which is a faster rate of growth even than China. That is something to prize, and it can perhaps be best explained by the price of the Ardrossan to Brodick route tumbling by a massive 46% for foot passengers, with a 64% reduction for cars being transported on that route. That comes at a cost of a mere £2.4 million a year to the Scottish Government.
I will set out the advantages that RET has brought in practical terms to the island. Analysis carried out by Transport Scotland has concluded that RET has significantly increased resident ferry travel across all journey purposes, and increased the demand for ferry services. In addition, the number of tourists has increased substantially, with the season extended from Easter and peak summer to the equivalent of the whole summer timetable. RET has enhanced the island-hopping tourist market with neighbouring islands. The Scottish Government are investing £1.8 million a year to support RET for the route between Cumbrae and Bute.
We know that job markets on islands can be challenging and fragile—we have heard a bit about that today. For Arran businesses, the impact of RET has been extremely positive, with increases cited in footfall and turnover. The tourism sector has accrued the greatest benefits, with hotels, guest-houses, campsites, golf courses and visitor attractions all highlighting the positive impact of RET.
Interestingly, RET has been particularly beneficial to the more remote areas of the island of Arran, particularly on the west coast. That is surely down to the increased numbers of visitors availing themselves of the opportunity to bring their cars on to the island at a much reduced cost, and exploring the farther reaches of the island, beyond Brodick and Lamlash. It is heartening to see a new £10 million distillery on Arran, and major expansion of the Auchrannie hotel and spa, which will enhance any visitor experience. RET has also allowed those who live outwith the island to take up jobs that have been challenging to fill, as students or seasonal workers can sometimes fill them. There is even a scarcity of staff to fill the increasing demand for workers in the hospitality industry, demonstrating the success of RET for the island.
Of course, there is no denying that RET has posed challenges for some businesses in the retail sector, because they are becoming increasingly exposed to competition with the mainland. However, studies show that the overwhelming consensus is that there has been a very positive impact on the island in terms of social, cultural and economic opportunities.
We know that connectivity is key, and that is very true of broadband connectivity for our islands. The Arran Economic Group reported last year that, based on cabinet installations, more than 90% of households and businesses now have access to superfast broadband, with take-up on Arran and Cumbrae at around 41%. There have been particular issues with the area of Machrie on Arran, but progress is being made.
We have heard some remarks about connectivity, regarding broadband and mobile phone signals. It is true that that is an issue, but as I always say to constituents when they raise such matters with me, the connectivity of broadband and mobile signal on this very estate sometimes compares to some of the difficulties that people have on the island of Arran and other outlying areas in our coastal communities. The broadband and mobile phone signal on this estate is sometimes, as you will be aware, Mr Rosindell, absolutely shocking. The fact that we have that problem in the middle of London, in the middle of the parliamentary estate, shows the scale of the challenges that our island communities face.
Arran also suffers from the lack of affordable housing. That is a challenge for future economic growth on the island, since it has an impact on the working-age population. One barrier is that 22% of homes on Arran are second homes, with a further 59 empty homes identified. We need to find ways of offsetting those issues, alongside plans to build new affordable homes on Arran. The Scottish Government have helped to fund 96 new homes in partnership working. That is a start, but clearly there is much more work to be done. The Scottish Government are investing £2.2 million on Cumbrae for amenity housing, but there is no room for complacency. Affordable housing remains a big challenge.
We know that there are pressures on Scotland’s budget. I was quite bewildered by the comments made by the hon. Member for Isle of Wight (Mr Seely). He is standing up for his constituents, which is exactly what he is supposed to do, but I flinched when he called the Barnett formula “generous”, given that Scotland’s resource budget was cut by £211 million this year and will be cut by £538 million next year. I am sure that he wants more resources for the Isle of Wight, but I do not think that describing the Barnett formula as generous is the way to do that.
Patricia Gibson
The islands do not benefit from the Barnett formula; Scotland is allocated funding through the Barnett formula. I cannot describe it as generous. I do not believe for one minute that the hon. Gentleman is wrong to fight for his constituents, but comparing their funding unfavourably with any funding formula for Scotland is the wrong way to go. One thing that the islands in Scotland benefit from that the Isle of Wight perhaps does not is the priority that the Government give them. That might be a way forward.
There are clear challenges. Our island communities matter to us, as of course they should. As the hon. Member for Ayr, Carrick and Cumnock mentioned, the SNP Government in Scotland has brought forward the Islands (Scotland) Bill, which seeks to build better national and local economic frameworks for island development and their unique needs. It seeks to ensure that any legislation that is passed will be “island-proofed” to make sure that islands are taken into consideration and not forgotten about. That will help our island communities to become more sustainable and vibrant as they face the future—something that we all wish to see. I hope the Minister will reflect on the benefits of RET and will investigate the provisions of the Islands (Scotland) Bill, and perhaps use that as a way of improving the lives, experiences and economies of the islands across the UK.
I end by urging all Members who are here today—and those who are not, but who have the good fortune to listen to the debate—to pay a visit to the beautiful islands of Cumbrae and Arran, where they will find the scenery breathtaking and the communities warm and welcoming. Like so many previous visitors, they will find that they wish to return again and again.
The Exchequer Secretary to the Treasury (Robert Jenrick)
It is appropriate that you are in the Chair, Mr Rosindell, as you are Parliament’s greatest champion of a different type of island: our overseas territories and Crown dependencies.
I thank my hon. Friend the Member for Havant (Alan Mak) for raising this important issue and for enabling a range of Members from across the House, representing all parts of the United Kingdom, to participate and give a complete tour of the British Isles. One thing we have learned today is that, although the British Isles are a great archipelago of more than 6,000 large and small islands and isles, relatively few of our constituents live on them, and we are perhaps less appreciative of them than we should be. Perhaps more than at any other point in our history, we are disconnected from our coast and our coastal communities. The Government are keen to change that and to ensure coastal communities and islands are properly represented. Today’s debate is an important part of that.
We want to raise productivity, living standards and economic growth in all parts of the United Kingdom, and of course islands and island communities are an essential part of that. Members representing the Isle of Wight, Hayling Island, Orkney and Shetland, Cumbrae, Arran and others have told the stories of their communities, many of which have been very positive. An important part of what we have heard today is that, although living on an island can cause problems, to which the Government, at a national or a local level, must respond, there are also opportunities for economic growth. Wonderful benefits can come from living in communities that are close and, as the right hon. Member for Orkney and Shetland (Mr Carmichael) said, can be very outward-facing to the rest of the world.
We appreciate that the barriers to growth can include a lack of opportunity—which can be a barrier to social mobility—poor connectivity and relatively high costs for transport, public service delivery and goods in the private sector. Although living on an island has many benefits and wonderful opportunities, which anyone who has grown up on one no doubt always lives with, the mainland can exert a strong gravitational pull, particularly to the young, and can at times lead to a drain of talent and youth. However, we have heard today about a number of islands whose populations are rising, which is very positive indeed.
Many of the barriers that island communities face are obviously a natural consequence of their geography and are common to all. Crudely, there are three types of island within the British Isles. The Isle of Wight is unique, in that it has a very large population—more than 130,000 people—and no bridge linking it with the mainland. I will turn to its specific demands in a moment.
The islands in the second category are mostly in Scotland, but there are a few off England, such as the Isles of Scilly. The populations of those islands, such as those represented by the right hon. Member for Orkney and Shetland, can still be substantial. They have no bridge to the mainland, and their remoteness poses particular problems, which require solutions, although they have smaller populations than the Isle of Wight.
Third are the islands, such as Hayling Island, that are connected to the mainland by roads. I do not want to diminish the challenges and issues they face, but they have commonalities with rural areas of the United Kingdom that have issues relating to remoteness. They are, to an extent, different from the islands that are separated from the mainland and do not have road links. I will address each of the three types. I apologise that this is a crude way of dissecting the issue, but it is at least a lens through which to look at it.
My hon. Friend the Member for Isle of Wight (Mr Seely) talked about the challenges and the opportunities of the Isle of Wight, which has a substantial population and no road connection to the mainland. The Government must think carefully about how we can assist it in delivering public services and ensuring its economy continues to grow. With the exception of the Isles of Scilly, it is unique—in England, at least—and we need to think about that when preparing new formulas for schools, local government, policing and other matters. I want to consider that with my hon. Friend in the future. I will talk about some of those issues in the time available to me.
A common thread for the Isle of Wight and all the other islands we have discussed today is digital. Although they are somewhat—at times, very—remote, the opportunities presented by the new economy are huge. They can help us break down some of the barriers and enable those islands to be highly connected to the rest of the world. We heard about new broadband opportunities in Newport, and I am sure there are other examples elsewhere in the British Isles.
We are focused on improving digital infrastructure on the Isle of Wight, in particular. It is clearly a critical part of life today. The Government are investing some £1 billion to ensure our digital infrastructure is fit for the future. I believe that the Isle of Wight was one of the first areas to benefit from the £400 million digital infrastructure investment fund. That was when investors Infracapital channelled some of the allocation into WightFibre to help to roll out full-fibre broadband to more than 50,000 homes, to some of which my hon. Friend the Member for Isle of Wight might have referred in his speech. Alongside that, Infracapital will invest £35 million of its own money to fund the expansion of the company’s infrastructure across the Isle of Wight. That is very positive and shows what we can do working together—although of course there is more work to be done.
On transport, roads are another vital part of the Isle of Wight’s infrastructure. From 2013 the Government will provide up to £477 million to Isle of Wight Council for a highways maintenance project through a private finance initiative that is under way. That will allow the council to carry out vital improvements and maintenance to local roads over a 25-year period.
We also recognise that transport to our islands must be adequate. That was not really touched on in my hon. Friend’s remarks, but having spoken to his predecessor in the past I know of concerns about the Isle of Wight ferry. Such concerns are no doubt common in other islands served by a single ferry company. The Competition and Markets Authority is aware of those concerns, which I expressed in my first meeting with the new CMA chief executive, Andrea Coscelli. The CMA is independent and the decision to take forward any investigation is its alone—the Government have no levers to direct the CMA as to which investigations it should choose, but I have raised the matter with him and know he is fully aware of it.
Mr Seely
I did not mention the ferries in my speech because I wanted to talk more broadly about the economy, but the relevant authorities are well aware that I would be keen to call for another investigation. However, I am not doing so at the moment because the new transport board on the Island is trying to work constructively with our ferry companies. I want to give that a chance to work first—for Wightlink, Red Funnel and Hovertravel to work together more closely and to be more supportive of the Island, driving our economy and being part of the solution, rather than part of the problem. That is why nothing is happening at the moment, but there is that option.
Robert Jenrick
I thank my hon. Friend for his constructive approach. I suggest that he engage with the CMA if he wishes to take anything forward.
Schools do not fall directly within my remit at the Treasury, but in advance of the debate I reviewed the performance of Isle of Wight schools. I appreciate that in some cases there are some long-standing difficulties. The new national funding formula will help to address that challenge. Under the new formula, the Isle of Wight stands to gain up to 3.2% for its schools, which represents an increase of £2.2 million, or £140 per pupil. Clearly the new formula’s interest in sparsity of population will help in some island cases, but not in all because some islands are relatively densely populated. In certain parts of the Isle of Wight, however, that sparsity provision will help—I believe two primary schools will be eligible for funding in that respect. Certainly the specific challenges of the Isle of Wight need to be considered in future funding formulations.
I shall turn briefly to the comments of the right hon. Member for Orkney and Shetland and to those islands that fall into the category of remote, or very remote, and without any of the direct transport links of a road bridge. Clearly, such islands require careful consideration by central Government. We shall work as constructively as possible with the Scottish Government in areas where we can collaborate. When the right hon. Gentleman was in Government, he created the 2014 island framework to encourage the UK Government to work closely with the islands around Scotland. We would like to see such initiatives continue.
The Government also recognise the issues with broadband, and we want to do what we can to assist in Scotland. For example, more than £50 million of the superfast broadband programme went to the Scottish highlands and islands to provide access to download speeds of at least 24 megabits per second. Recently, we announced the winners of phase 1 of the £25 million 5G testbed competition. That includes £4.3 million for the 5G RuralFirst testbed, which will be based primarily in the Orkney Islands.
As far as possible, we continue to support North sea oil and gas through continued Treasury investment, and a strong and stable fiscal framework for the oil and gas industry, most recently with the announcement of the transferable tax history, which has been widely welcomed by the industry. I take on board the comments of the right hon. Gentleman with respect to renewables and the essential role that they play, and will continue to play, in the future of islands such as the Orkneys and Shetlands. I shall take away his suggestion about wave and tidal funding.
Finally, on islands connected to the mainland by road, the most prominent one we heard about today was Hayling Island, which sounded like a wonderful place. I would love to visit the bookshop or the ferry and, on a day like today, we would all like to be on an island such as Hayling. Many of the issues raised by my hon. Friend the Member for Havant are common in other rural areas elsewhere in the United Kingdom, and we are concerned about them. We are, for example, making further investment in roads. We have launched the large local majors programme, which is potentially transformative for market towns and smaller communities that require significant road investment projects. I encourage my hon. Friend to take that up with the Department for Transport, if applicable.
We are also aware of bank closures, which have been widely debated in the House and are common to a number of communities throughout the United Kingdom, although I appreciate that in islands the effect can be greater than elsewhere. The schools funding formula will help many island communities, as it will in my hon. Friend’s constituency, and we would like to see that taken forward. Since 2012 the coastal communities fund has invested £174 million in projects focused on economic development, growing and regenerating coastal areas. The Isles of Scilly have benefited from the fund, as did the Hayling coastal community team in 2015, from £10,000. Funding round 5 is now open, with £40 million available to spend from April 2019 until the end of March 2021.
Robert Jenrick
In a moment if possible, but I am conscious of time.
I encourage all Members present to take advantage of that fund, where applicable, feeding into it and putting in their applications as soon as possible. From the Treasury’s perspective, I shall continue to work with my colleagues at the Ministry of Housing, Communities and Local Government as we proceed to consider what the next stage of the fund will be. I shall ensure that the comments about islands we have heard today are fed into that process. I would like to work with my hon. Friends the Members for Isle of Wight and for Havant to ensure that the next iteration of the fund takes on those views and works for coastal communities.
I thank all colleagues who have attended the debate to discuss these matters. We are very committed to taking this agenda forward and to ensuring that island communities have the funding and support they require to have vibrant communities and economies. Over the course of the year, whether in making decisions about applications to the coastal communities fund or in shaping the UK shared prosperity fund—that is an important discussion to be had in Parliament over the year to come, and I again encourage hon. Members representing coastal communities to take it seriously and engage in it—we shall continue, I hope, to display our commitment to the islands of the British Isles and their communities.
Oral Answers to Questions
Bob Seely Excerpts(6 years, 11 months ago)
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Robert Jenrick
My hon. Friend makes a good point. As I said in my answer to the previous question, we have increased the budget for the Welsh Government. How they choose to spend that money, and how wisely they do that, is another question.
Mr Bob Seely (Isle of Wight) (Con)
Michael Tomlinson (Mid Dorset and North Poole) (Con)
Mr Seely
Will my right hon. Friend and the Treasury team work with me and the Isle of Wight Council to explore how the Island could benefit from a Treasury-supported enterprise zone in the Medina valley or from other regeneration policies that would help to drive the jobs and wealth creation agenda on the Isle of Wight?
Elizabeth Truss
My hon. Friend has done a fantastic job of championing the Isle of Wight since 2010, and we have seen a 55% reduction in unemployment on the Island. There are many issues that we need to address to ensure that the economy on the Island is competitive and dynamic. The Isle of Wight ferry is a vital service, and we need to ensure that the Competition and Markets Authority has the tools to deal with that. I would be very happy to meet my hon. Friend to talk about what more we can do to boost the Isle of Wight.
Budget Resolutions
Bob Seely Excerpts(7 years, 1 month ago)
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John McDonnell
I will take some interventions, Madam Deputy Speaker, but I am cognizant of what you have said about the need to ensure that everyone can speak.
On the point made by my hon. Friend the Member for Birmingham, Erdington (Jack Dromey), we all knew that the election of a Tory Government would set us back; what we did not appreciate was that it would set us back a century.
Average annual pay is now projected to be £1,030 lower in 2022 than was forecast in the March 2017 Budget. It is those delivering our key services—the nurses, midwives, firefighters and teachers—who are worse off than they were a decade ago. There is nothing here that could remotely be considered strong. This is a weak economy. In terms of growth, it is now the weakest in the G7.
Let us remember that we are in this mess because for the past seven years the Government have implemented policies that have undermined and weakened our economy. The Chancellor was a key figure in all those policies. He and his colleagues were warned that austerity spending cuts would fail to bring the debt or the deficit under control, and that instead they would undermine the real economy. We were promised in 2010 by the Chancellor’s predecessor that the deficit would be cleared by 2015, yet today the debt burden is still rising. The Chancellor borrowed more in his first year in the job than any Chancellor in history.
Mr Bob Seely (Isle of Wight) (Con)
The shadow Chancellor paints a very negative picture, but can he explain why patient satisfaction in the NHS is at its highest for 20 years, why we have the lowest unemployment for 43 years, and why we have the highest employment in our history?
John McDonnell
There are now waiting lists of 4 million in the NHS, predicted to rise to 5 million because of the lack of investment. We welcome the increase in those in employment, but 800,000 are zero-hour contracts, and we now have more than 2 million people in insecure work. It is no wonder that people are anxious about their futures.
As I have said, the Chancellor has borrowed £145 billion —more than £5,000 per household—which is more in his first year in the job than any other Chancellor in history. The OBR now expects the deficit in 2021 to be almost three times higher than it forecast in March. It blames this deterioration on the collapse in productivity growth, but productivity growth has collapsed because investment has fallen. Government investment is £20 billion less in real terms today than it was in the last year of the previous Labour Government.
John McDonnell
I know that the hon. Lady is well intentioned, but she has displayed ignorance of what large numbers of people are experiencing. May I suggest this to her—[Interruption.] I do not wish to be patronising. [Interruption.] If that is the way it is interpreted, it is not how it is meant to be. I just say that all of us, who are on relatively high wages, need to be very careful when talking about levels of income and levels of wealth because many people, including 4 million of our children, are actually living in poverty. Two thirds of those children are living in households where someone is in work, which says something about low pay to me, as it should do to all of us.
John McDonnell
I will come back to the hon. Gentleman.
The number of people sleeping on our streets has doubled since the Conservatives came to office in 2010. More than 3,500 people were forced to sleep on the streets last year. Some 80,000 households are living in temporary accommodation because councils simply do not have anywhere to house them. I repeat: in the sixth richest country in the world, there are more than 120,000 children without a home to call their own, living in temporary accommodation. That figure is up 60% since this Government have been in power. That means children are being brought up in places that are often not safe, having to share communal bathrooms and kitchens, and being robbed of a normal family life and childhood. We have seen this in our constituencies. Ministers do not seem to understand the strength of anger felt by many on the Labour Benches at the fact that our constituents are being forced to live in overcrowded, unsafe and inadequate housing.
The Government had the opportunity to deliver the funding that would build the homes we need. Only a third of the £44 billion announced yesterday is genuinely new, and there is no extra Government investment in new affordable homes. This Government’s record of failure on housing will continue to blight the lives of hundreds of thousands of people trapped in overpriced, inadequate housing.
John McDonnell
I ask the hon. Lady to re-examine the history of that period. I point her to the Kickstart programme, which was developed by the Labour Government to enable building to happen in the public and private sectors. I understand what she is saying; she is right that that time was an immensely difficult period for the economy, and that many people suffered, but her party supported the policies to deregulate the banks that brought about the speculation that resulted in the economic crisis in this country and elsewhere.
Thousands of people are trapped in poverty. The Child Poverty Action Group estimates that as many as 1 million children could be pushed into poverty as a result of cuts to universal credit. The introduction of universal credit has been a disaster that has pushed many thousands of people into despair and, in many cases, outright destitution. Food bank charities have reported that they have gathered an extra 2,000 tonnes of food to cope with demand as a result of the introduction of universal credit. The Trussell Trust reports that the use of food banks is up 30% in areas where universal credit is being rolled out. Yet the amendments offered by the Chancellor yesterday and mentioned in the statement today are so feeble as to strongly suggest that he and this Government simply do not grasp the scale of the problem.
Hon. Members need to know what this poverty means for children in our society. It means not having a winter coat this winter and being left behind when the rest of the class go on a school trip. Last year’s reports showed that thousands of children are going hungry during school holidays. The Chancellor did nothing yesterday for self-employed people, second earners, lone parents or disabled people, all of whom have seen their living standards suffer particularly acutely under universal credit. He failed to mitigate the £3 billion a year cuts that were slashed from the universal credit programme by his predecessor, and he failed to address the impact of the social security freeze in universal credit, due to push millions into poverty.
John McDonnell
I will come back to the hon. Gentleman.
The additional funds put in place amount to £1 returned for every £10 that the Government are cutting from the system. This means that those claiming universal credit will now have to take their first payment as a loan, so they will face 12 months of reduced payments. What has the Chancellor offered to some of the most desperate people in the country—those who are already drowning in debt? More debt. The Chancellor had nothing to say for the people who are newly registered for universal credit and who face destitution this Christmas. Not a single extra penny, however inadequate, will be available for the new year. Some 59,000 families will be left without any support over the Christmas period. Those families include 40,000 of this country’s children. The percentage of children living in relative poverty is the highest since records began in 1961—in the sixth richest country in the world.
Local councils are being starved of the funds they need to protect the most vulnerable children in society. Charities on the frontline are clear and report solidly that cuts to parenting classes, children’s centres, substance misuse prevention, teenage pregnancy support and short breaks for disabled people risk turning the current crisis into a catastrophe for the next generation of children and families. A record 70,000 children have been taken into care this year. One in 64 children in England is at risk of abuse or neglect. There are 1,200 fewer children’s centres than in 2010, eight in 10 schools have no funding to support children with special needs and funding for early intervention to protect children is down by 55%. There was not a single penny extra in the Budget to address this emerging crisis in our children’s services. The Chancellor and the Government are failing some of the most vulnerable children in society, and I urge the Government to look again at this emerging crisis.
It goes on. Schools are facing the first funding cuts per pupil in real terms since the 1990s. Headteachers are being forced to go begging to parents for funds to pay for basic supplies. Five thousand headteachers have written to the Government, asking just for the return of the funds that have been cut. One headteacher in the Prime Minister’s constituency is asking parents for £1 a day to help to pay for stationery.
The National Audit Office says that schools face a £1.7 billion real-terms funding cut by 2020. For younger children, there are 1,000 fewer nursery places and childminders. Eight in 10 schools have been left without the funding to provide adequately for special needs pupils. This means that our most vulnerable children are deprived of the counselling or support they need, and spend break times away from their friends, alone. Their education is being discriminated against.
John McDonnell
Under the figures that have been announced this week in the Budget, there will be more of this. There will be more rationing. There will be more people suffering. There will be more people’s lives put at risk.
Under this Government, 4 million people are now waiting for care—the highest level in a decade. More than 100,000 patients were left waiting more than two weeks to see a specialist after being diagnosed with cancer, and more than one in 10 did not start treatment within 62 days. Only three in 10 of the most urgent 999 calls for help are answered within the targeted time. Yet, the Government have brought forward less than half the amount that is needed and that professional, sober assessments say is needed. The claim in yesterday’s Budget that £10 million in capital funding is available is totally misleading. The Government will provide less than half of that. The remainder will come from selling off NHS estates or from the private sector.
Nor has the pay cap that has driven hard-working public sector workers to despair been tackled. The dedication of the staff is extraordinary. There are nurses waiting behind after 12-hour shifts to give care to keep the system from imploding. These are the same NHS nurses who have seen their pay fall so much in real terms that one in four must take a second job to make ends meet. The Royal College of Nursing reports that nurses are even visiting food banks, such is their desperation. It is not possible to run a health service worthy of the name on the unpaid and underpaid dedication of its staff alone. The Chancellor is able to offer nothing for them.
John McDonnell
I have given way to the hon. Gentleman, and I am worried about making sure, as you said, Madam Deputy Speaker, that other people are fully involved.
The Chancellor was able to offer nothing for these staff. The cap is not being removed, because, as the Treasury briefed once the Chancellor sat down, any pay rises the pay review boards offer above 1% must be taken from existing budgets. It is a derisory offer to make after seven years of real-terms pay cuts. Worse than that, for NHS nurses, any additional pay will be linked to “Agenda for Change” modernisation, which really means threatening their working conditions—tearing up their terms and conditions of pay.
Mr Bob Seely (Isle of Wight) (Con)
I congratulate the Chancellor on a good Budget, elements of which may encourage more housing development. I wait with interest to see how the Government’s detailed plans will affect housing on the Isle of Wight. Although I welcome much of the Budget, I want to take this opportunity to explain why I feel that housing policy has not helped the Island and why I look forward, perhaps in hope, to this Budget encouraging a better system.
My constituency of the Isle of Wight needs intelligent, sustainable and sensitive regeneration to drive economic and social development, much of which is supported in this Budget so I thank the Chancellor. However, the system of developer-led housing is flawed. It fails to deliver the right type of housing, specifically housing for young people and people of working age on the Island, and it also fails to deliver for older Islanders. It eats into greenfield sites, damages our tourism economy and quality of life, and forces communities to accept divisive and unpopular developments. In many ways, our system is the definition of unsustainability.
I hope that the Budget will encourage the right sort of housing to be built. Too much housing being built is financially out of reach of Islanders, particularly young Islanders. Housing associations tell me that we urgently need one-bed housing, starter housing and social housing; I would add key worker housing to that list. We also need housing for older Islanders—extra care accommodation that allows people to move out of housing and, therefore, to free it up. But those are not the houses that the developer-led system wants to build. And that, combined with Island economics, means that we have to build a lot of housing that we do not want in order to get a little bit of housing that we do want. That system is not right.
As a result, young people are forced off the Island. Even so-called affordable housing is, in reality, unaffordable. I am delighted that the Conservative Isle of Wight Council is trying to ensure a change to the system, and I congratulate Councillors Dave Stewart, Chris Quirk, Barry Abraham, Stuart Hutchinson, Tig Outlaw and others for trying to improve a highly flawed system. The Island needs a different form of social regeneration—one that invests in people, not just land. The overdevelopment we face causes many problems. It is worsening our quality of life and eating into greenfield sites. We do not have the infrastructure to afford it, and we are unlikely to get that significant infrastructure because we are an Island. We have about 600 metres maximum of dual carriageway and, frankly, we are unlikely to get more. So I am waiting to find out the details of how this extra money can help us.
I am very uncomfortable with the Government’s target of over 6,000 homes in a decade. I do not believe that is sustainable, and I cannot think of any way in which I will support anything like that number, because so many of those homes will not be built for Islanders. The only target I am looking at is something possibly around half that figure, but it would be focused on the people who need those homes. I want these homes to be largely built by housing associations. Why can we not have schemes whereby housing associations can buy back property from older sellers to repurpose it? A housing association could buy back a bungalow, repurpose it, put on a first floor and create two homes, developing the homes the Government want, without eating into new land.
As part of our commitment to the future, I will seek to work with partners to develop a sustainable model of development. I hope very much that the Government will work with me on this so that we can get sustainable models of development that meet the needs of the Island as well as the needs of Government.
Ms Karen Lee (Lincoln) (Lab)
This Budget offered the majority of my constituents very little hope, and hope is what is missing in our society. I am not talking it down; the grim truth is that our economy has flatlined. The cut in stamp duty is of no use to my constituents on low wages who cannot afford a mortgage, and the OBR says that without an increase in supply, the stamp duty cut will drive prices up. The public sector pay cap is alive and well for our firefighters, police, teachers and local government workers, and there is a deafening silence about the 14% drop in wages that nurses have suffered since 2010. All healthcare workers—porters, healthcare support workers and housekeepers—do a vital job, and they have all suffered under the pay cap.
What about social care? There was another deafening silence about that yesterday. Although I welcome the news that people will no longer have to wait a whole week before being allowed to claim universal credit—I think that they were meant to starve for that week—the extra money that the Government boast about putting into universal credit will not replace what has already been taken out. In Lincoln, the use of food banks has increased since universal credit was partly rolled out, and the measures in this Budget do little to reassure me that my constituents will not suffer further from the full roll-out next March.
If I look across the House, I see that some Conservative Members cannot even look at us because they know that what we are saying is true. Indeed, 25% of children in Lincoln live in poverty, and this Budget has done nothing for them. This Government boast about having a low-tax economy, and the Paradise papers a couple of weeks ago put that statement in a very clear light. If we had a fair taxation system, we would not be talking about properly resourcing public services.
Ms Lee
No, I will not; I am going to make some progress.
This Budget has done nothing to challenge or address the unfairness in our society, and people will feel poorer for longer. It is most definitely not a Budget for the many, and those who benefit are, without doubt, the very few. As a newcomer to the Opposition, I think that Government Members ought to hang their heads in shame, and they ought to wake up and realise what is really going on in this country. I can promise them that things are very different in Lincoln from how they are in Taunton.