(7 months, 1 week ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I appreciate that intervention from the hon. Member. I will say to him, very directly, something that I was going to say later in my speech. In the case of rural constituencies—he mentioned his very rural constituency—I think that the assessment criteria used by Link for banking hubs, working with Cash Access UK and looking at this whole issue of access to cash, need to be amended. I have communicated that to the industry, and I hope that, over the coming weeks and months, that will happen. It is clearly not working, in a relatively small number of instances in rural areas, where the rules do not appear to be flexible enough. I think that would be useful.
Since 2020, 50 banks in Northern Ireland have closed and only one banking hub has opened. Does the Minister agree that that is just not acceptable? The criteria do need changing. We have heard great plans from the Government to help to change it, but when will that happen? When will the criteria change, and when will the Government take this on board?
(7 months, 2 weeks ago)
Commons ChamberThe hon. Member is entirely right. That is why we froze fuel duty at the last fiscal event: a measure that costs £6.5 billion and will save the average driver £50.
(1 year, 9 months ago)
Commons ChamberI am pleased to confirm that the full business case for the Humber freeport has now been conditionally approved by the Treasury, with full approval subject to the customs site being designated and the freeport signing a memorandum of understanding with the Department for Levelling Up, Housing and Communities. The Humber freeport is already open for business, supporting the regeneration of the region by creating jobs and attracting new business investment. I am sorry that Treasury processes can sometimes appear tortuous.
Tax-free childcare provides financial support for working parents with their childcare costs. In addition to tax-free childcare, the Chancellor announced at the spring Budget that all eligible working parents in England will be able to access 30 hours of free childcare a week for 38 weeks of the year, from when their child is nine months old until they start school.
I thank the Minister for his response. When will the Government start to reward the working families of this United Kingdom? We have a Chancellor who is giving tax breaks to the wealthy to top up their pension pots, yet he cannot support working families by increasing the personal allowance or by offering tax-free childcare that supports all families with childcare needs, particularly families with older children. The high-income child benefit charge remains untouched, leaving households that earn much less than others unaffected. Can the Chancellor update us on his plans to reform this deeply unfair practice?
I do not accept the overall characterisation that the hon. Lady has given. Just in November last year, 428,000 families and 511,000 children benefited from tax-free childcare. The announcements last week will make a significant contribution, and of course that work will start immediately, with the Department for Education consultation. We have a commitment of £204 million for the coming financial year, and £288 million for the following year, to increase supply so that we can deliver this as quickly as possible.
(1 year, 10 months ago)
Commons ChamberMy hon. Friend is absolutely right. I spoke about high-growth sectors; one of the ways those sectors drive up sustainable growth is through R&D. That is incredibly important. The Government are on track to spend £20 billion in public expenditure by 2024-25. We are also committed to a competitive regime of R&D tax credits to ensure that the private sector does its part to enable the highest possible level of R&D so that we can deliver investment and research into the industries of the future.
The forecast is concerning for every corner of the United Kingdom. However, in Northern Ireland, there is an added uncertainty owing to the protocol and the internal barriers to trade that it places within the United Kingdom. Investment to drive growth is now being stalled as we await a new agreement. Do the Government recognise the need to urgently restore the integrity of the UK’s internal market to assist economic growth in Northern Ireland, and does the Minister commit to doing that?
We must deliver growth in every part of the United Kingdom. The hon. Lady knows the work that is happening across Departments on the protocol. I have already mentioned energy support; she knows that there are specific conditions that pertain to the Northern Ireland energy market, but we have still put huge support in place, including the recent £600 payment. That shows that we are on the side of families in every part of the United Kingdom, including Northern Ireland.
(2 years, 1 month ago)
Commons ChamberAs the Governor of the Bank of England has explained, disruption in the markets has subsided, and the impact of that has flushed through the system. I would emphasise to the hon. Member the evidence we are seeing in other countries. I do not shy away from that; I offer it as an example of the pressures we are all facing internationally. It is precisely that international picture that the Government are addressing.
The hon. Member for Bradford East (Imran Hussain) laid down in, if I may say so, a rather loud speech that there was no help for his constituents with the cost of living. It was passionate, I am told. It is fair to say that my hon. Friend the Member for Southend West (Anna Firth) expressed astonishment at his passion, and my hon. Friend the Member for Bolsover (Mark Fletcher) said that some Opposition Members were living in a different galaxy.
On a serious note, I do want to help colleagues across the House understand the help that is available, because I know that hon. Members will be responding to their constituents’ worries. Any constituent who is on benefits or paid pensions will have them increased by 10.1%. Any constituent on means-tested benefits will have a one-off payment of £900. Any constituent on pension credit will have a one-off payment of £300 on top of their winter payment, and those who are living with disabilities will have a one-off payment of £150. Any constituent on the national living wage will see an increase to their salary, with the hourly rate going up to £10.42. Every single one of our constituents will see help through the energy price guarantee, which is worth on average £900 this year and will be worth £500 next year, and it helps to lower inflation by 2%.
I will give way, but there is even more to come.
What is more—and his is an important point in relation to the very moving cases we have heard in the House today—the most vulnerable households will be able to secure help through the household support scheme, to which we have added a further £1 billion precisely to help those who are in trouble. I know that hon. Members from Northern Ireland are most concerned about people living off-grid. We have doubled the one-off payment that will be given to people living off the grid, and that payment will be given in the winter. Finally, if anyone is in any doubt as to the help they can give their constituents, they should please look at the “Help for Households” website, which sets this all out very clearly.
I am now going to race through some of the changes that we have had to make to taxes. We have tried to be fair and compassionate in these difficult times, meaning that those with the broadest shoulders bear the heaviest weights, and we have wanted to avoid tax rises that most damage growth. On personal taxes, we have reduced the threshold at which the 45p rate becomes payable from £150,000 to £125,140, which means that those earning £150,000 will pay just over £1,200 more in tax each year. We are maintaining the income tax personal allowance and thresholds, which is a difficult but necessary decision, but even after these freezes, we will still have the most generous set of tax-free allowances of any G7 country.
On business taxes, we are raising corporation tax to 25p precisely because, as has been said, we want the largest companies to bear their responsibility. Even at the increased rate of 25%, it will still be the lowest rate of corporation tax in the G7. We have frozen the employer national insurance contribution threshold until April 2028, but 40% of businesses will still pay no NICs at all. The VAT registration threshold will stay which, incidentally, is almost twice as high as EU and OECD averages.
Let me move on to business rates, and then I will come to my hon. Friend and the hon. Lady. We know how important business rates are for our high streets, pubs, shops, and local hospitality businesses. That is why with the revaluation that is needed, we have none the less got a package of nearly £14 billion-worth of help, so that nearly two thirds of properties will not pay a penny next year, and thousands of pubs, restaurants and small high-street shops will benefit.
I thank my hon. Friend. For anyone who missed it, I think he just said that Croydon Council has gone bankrupt for a third time, which is worrying, given that it is, I think, a Labour council. He mentioned the council tax referendums, and we chose that course precisely because we want to address the very real issue of social care. We have ensured that we are balancing those pressures with grants from central Government, and I will come to that in a little more detail in a moment.
Labour’s answer to these difficult sets of international and domestic problems seems, as has been pointed out, to be non-doms. Labour says that scrapping non-doms will apparently earn £3 billion in savings. Well, here are some facts. Non-domiciled taxpayers were liable to pay £7.9 billion in UK income tax, capital gains tax, and national insurance contributions in the tax year ending 2021. Non-doms have invested more than £6 billion in the UK since 2012, using the business investment relief scheme. In other words, non-doms are paying rates of tax that far outstrip the savings that Labour would make, and it is a very one-dimensional answer to a difficult problem.
Persistence has worked. I am sure the Minister will welcome the increase from £100 to £200 for the heating oil payment in Northern Ireland, and that it will go to all households. However, for weeks now £400 has been dangled in front of the people of Northern Ireland for the energy support payment. Can she assure my hard-pressed constituents that they will get their £400, and can she say when they will get it?
I have been nudged by the Whips, so would the hon. Lady allow me to write to her? I know how complicated it is in Northern Ireland.
I could talk about growth. Interestingly, Conservative Members were talking about growth and about how we can ensure the future of our economy for our children and grandchildren. I am extremely grateful to my right hon. Friends the Members for Aldridge-Brownhills (Wendy Morton), for North West Hampshire (Kit Malthouse), for Epsom and Ewell (Chris Grayling), and for North Somerset (Dr Fox), and to my hon. Friends the Members for Bolsover (Mark Fletcher), for Newcastle-under-Lyme (Aaron Bell), for Stoke-on-Trent North (Jonathan Gullis), and for Stoke-on-Trent South (Jack Brereton). They all emphasised how vital growth is if we are to get through these difficult issues and build a good and rich economy for us all.
We announced in the autumn statement some interesting and important measures, including safeguarding capital investment over the next five years, so that we have the largest investment in public works for more than four decades. Of course, innovation and education will be critical, which is why, next year and the year after, we will invest an extra £2.3 billion a year in schools.
On health, because we know how important it is to each and every one of our constituents, despite the very difficult times that we are in, we are providing £6.6 billion to the NHS over the next two years. We will be providing an estimated 200,000 more social care packages for the elderly and most vulnerable in our society, because we are increasing funding in these very difficult times.
We have had to take tough decisions now to lay the foundations for our economy for the next generation. We will not pass on our debts to our children and grandchildren, but we will provide education, skills and prosperity in the industries of the future. We are facing tough times, but we will rise again with a thriving economy, high employment and a bright, responsible economic future for us all. I commend the statement, but it also commends itself to the House.
(2 years, 2 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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When the new Government came into office there was a need to act urgently on the energy price guarantee, and to alleviate the extra national insurance burden, which the hon. Gentleman’s constituents and mine are paying right now, but—thanks to yesterday’s vote—will not be paying from 6 November. That is why it was done quickly: to address the situation in front of us.
The OBR will be fully scoring the medium-term fiscal plan on 31 October. There is a statutory requirement under the Budget Responsibility and National Audit Act 2011 for the OBR to produce forecasts twice in every financial year. That commitment will continue.
The Chief Secretary will be aware of the stress on mortgage holders as they have watched deals being withdrawn with the prospect of steep rises ahead. What assurances can he give them that the Government will act to undo the damage done and to ensure that mortgages remain attainable and affordable for homeowners?
When I checked, there were about 2,300 mortgages available. Obviously the global cycle of increasing interest rates is affecting people in the United Kingdom, as it is affecting people around the world, including in the United States of America, as I set out earlier. We are trying to make sure that other cost of living pressures are mitigated as far as possible through things like the energy price guarantee, reductions in the burden of taxation and the plan to continue economic growth.
(2 years, 7 months ago)
Commons ChamberAcross the House, we are all acutely aware of the challenges faced by our constituents. The groceries budget puts less in the supermarket basket than it did a year ago; the electricity or gas top-up card does not last as long as it did a year ago; and £20 of diesel does not take a car as far as it did a year ago. Those additional household cost pressures are being felt at a time when many people have just experienced real-terms cuts to their income and/or benefits. Furthermore, not that long ago, the £20 uplift to universal credit was withdrawn by the Government, despite appeals from Opposition Members, and from charities across the length and breadth of the UK.
For the squeezed middle, childcare costs continue to increase and mortgage costs face steep rises. The reality for so many is that wages are failing to keep up with the increase in the cost of living. The national insurance hike and the cumulative impact of all those pressures will result in households’ disposable income shrinking. The bite is being felt.
It ought to be of great concern to the Government that the OBR has warned that UK residents face the biggest living standards drop on record. That is why it is deeply disappointing and distressing for those feeling the squeeze that although we were told that the Government’s priority is to help
“ease the cost of living for families”,
in reality, nothing is being done to deliver on that right now. The Government announced 38 Bills last week. Many of them have great merit, yet there was nothing to address the immediate pressures facing households and families across the United Kingdom. A windfall tax on energy companies enjoying soaring profits was absent. The opportunity to cut taxes or reverse the inexplicable national insurance rise was missed. The Government repeatedly tell us that they are a party of low taxes. Surely now is the time to prove it.
For those in Northern Ireland, the opportunity to give a clear legislative commitment to addressing the issue of the Northern Ireland protocol was also absent. The protocol exacerbates the cost of living crisis in Northern Ireland. The cost of bringing goods into Northern Ireland has increased by around 27%, according to our haulage industry. That cost is being passed on to businesses and consumers. Indeed, the Prime Minister himself has argued that the protocol is restricting his ability to help our post-covid recovery and holding back economic growth. He is right.
As the hon. Member for Newton Abbot (Anne Marie Morris) outlined so eloquently, the new UK-wide VAT cut on renewable energy products cannot be implemented in Northern Ireland because of the terms of the protocol. That is a wholly unacceptable situation that no Prime Minister or Government of this United Kingdom of Great Britain and Northern Ireland can preside over. The Prime Minister knows what he must do. Today’s statement from the Foreign Secretary is welcome, but we must see action. I regret that thus far the Chancellor has been an absent Chancellor when it comes to visiting Northern Ireland. I again extend an invitation to him to come to Northern Ireland and hear from my constituents and businesses who are feeling the squeeze.
In conclusion, the long-term objectives identified by the Government—higher wages, more highly skilled jobs and a move towards our own supply of cheaper and cleaner energy—are very welcome, but families cannot wait for those objectives to become reality. For many, the pressure is being felt acutely now. They need action now.
(2 years, 11 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg to move,
That this House has considered the impact of changes to rebated fuel rules on the construction industry.
It is always a pleasure to serve under your chairmanship, Mr Bone. I thank Members for taking the time to attend today’s debate. The broad representation here is indicative of the pan-UK concern that exists around this proposal. I want to make it clear at the outset that the construction industry is supportive of the move towards net zero by 2050.
This debate is not about the need for the industry to play its part in reducing carbon emissions, because that is already recognised and embraced by the industry. Rather, it is about the very negative impact of the change taking effect in April 2022 in the current economic context. It is about the operational and practical ability of the industry to adapt to the change and move to alternative fuels. In the context of Northern Ireland, where we share a land border with another jurisdiction, it is about how local industry will be impacted by handing a competitive advantage to our neighbours in the Irish Republic.
From this debate my hope is that the Government will replace the cliff edge of 31 March, and the potentially disastrous consequences that will ensue, with a transition period and a partnership approach with industry to create alternative fuel sources, reduce carbon emissions and, importantly, support the industry in helping our national economic recovery.
I congratulate the hon. Lady on securing this debate. Is she aware that the problem affects not only the construction industry, but the destruction industry—those who carry out mining and quarrying? There is no alternative to using hydrogen-powered or battery-powered machinery, so there is a case for the Government to look again at this matter.
Absolutely. The right hon. Gentleman is stealing my thunder, as I will go on to mention what he has just very eloquently articulated.
The context in which we bring forward significant economic change is vital, whether the desire is to stimulate growth or mitigate negative consequences. Over the past two years many factors, such as covid-19 and world commodity prices, have already severely impacted the UK construction industry, resulting in significant additional costs in materials and an impact on the availability of materials, along with a loss of production and additional escalating costs—and we all know about the energy costs.
The latest Government insolvency data shows that between August and October 2021, 797 construction firms across the UK went bust. That figure is up by more than a fifth compared with the previous three months. It is in this context that I urge the Government to exercise extreme caution in pursuing any policy that will increase costs to businesses that are clearly already struggling under the weight of existing pressures. There is a cold, hard cash reality to this proposal that cannot be ignored.
In preparation for this debate, I met many construction and recycling companies, many of them family businesses, that have given the following stark analysis of the impact of this move. One family company predicts a £300,000 increase in its fuel bill. Another major construction company, which uses 2 million litres of fuel a year, will see its fuel bill increase by £l million. These examples are replicated at companies right across the United Kingdom.
In addition to that increase in cost, companies face significant additional cost pressures in terms of electricity and gas prices. The cumulative impact of input cost rises is more challenging now than at any time in the past 15 years. The question is how the Government see those companies absorb the costs, remain profitable and contribute to our national economic recovery.
In the past 18 to 24 months, the Government rightly put great resource into supporting jobs and businesses. I commend them for that. Now is not the time to jeopardise the tens of thousands of jobs sustained by our construction industry with a policy that is right, but whose timing is wrong. The issue of timing is at the crux of this—timing not just in respect of our economy, but when it comes to implementing change to how we power our construction industry.
The mineral products sector produces 400 million tonnes of material a year across the UK, including 200 million tonnes of aggregate. That all requires extremely powerful equipment to work a quarry all day, which is far beyond the capability of the existing non-diesel equipment in the market. To be an effective replacement, non-diesel equipment will need to match the power, range, torque and payload.
The Government’s main contention in justifying the timing of the tax change was that it will encourage manufacturers to bring forward alternatives, but they are all working on it already, and it seems unlikely that a tax change for some of the users of red diesel in one country will have much impact in a global market. The UK and Ireland are not a huge market for any of the major global manufacturers of our equipment, with Europe in total accounting for as little as a fifth of sales for some suppliers. Removing the existing rebate for UK users will not make a material difference.
Even assuming that the equipment will become available, there are significant challenges in powering it. Many quarries are in remote locations and may not have access to an electrical grid connection suitable for the level of demand that electrifying such equipment would need. Significant and expensive upgrades will be required. Similarly for hydrogen, ensuring adequate affordable supply will be critical to weaning industry off diesel. Neither of those issues has been addressed adequately yet.
I ask the Minister to acknowledge in her response that the Government recognise that there are no suitable alternatives for most users and that the incentive effect of the tax change on development in a global market is tiny. That being the case, how do the Government believe that now is the right time to administer this significant change?
Operational and practical difficulties also extend to adherence to the proposed changes, if they proceed. The small family construction company that uses the New Holland tractor and the Merlo telehandler on a site during the week and on the family farm in the evenings and at the weekends is now put in a totally impracticable position. Does it run those vehicles on white diesel all the time, incurring additional costs and hitting profitability? Does it buy totally duplicate machines, which would be financially impracticable? Does it follow Her Majesty’s Revenue and Customs rules and flush out the tank before the diesel change, which is again totally impracticable?
That example is replicated in farms and at construction sites right across the UK. Indeed, the same issue will affect those who hire plant equipment, making the management of their business incredibly difficult as they implement the change and seek to adhere to the law.
This is a UK-wide concern, but I hope that Members will indulge me for a few moments as I highlight specific concerns in the Northern Ireland industry. As we share a land border with another jurisdiction, we do so with a direct competitor for business watching the issue closely. There is no doubt that businesses based in Northern Ireland producing and supplying materials to the Irish Republic will be placed in a less competitive position. I have engaged with companies for which Republic of Ireland trade makes up 15% of turnover. For other Northern Ireland firms, that figure will be higher. The change in rebate rules poses a direct threat to such business and, subsequently, to the jobs sustained by that element of the business.
Specifically for companies located in the border areas, there is a secondary risk of material being supplied into Northern Ireland where competing producers based in the Irish Republic will not have to deal with the increased cost, thereby making their products, goods and services more economically appealing to purchasers in Northern Ireland. Furthermore, that will increase the likelihood of tax evasion, as those imports will be subject to aggregate levy, thus meaning more surveillance work for HMRC.
The operation of two sets of rules on the island of Ireland poses a practical problem. If a construction plant is moving up and down, it can use green diesel in the ROI, which will leave markers in the tank for a period. If a plant is moving up and down weekly that may cause issues, and leaves it open to abuse. For those reasons, I ask the Government whether they have undertaken an economic impact assessment of the change to business, particularly in Northern Ireland.
When I questioned the Exchequer Secretary to the Treasury on the proposal in the House on 7 December, the following rationale was given:
“To help ourselves achieve net zero and improve UK air quality, we are reducing the entitlement to use red diesel, which currently enjoys a duty discount, from next April.”—[Official Report, 7 December 2021; Vol. 705, c. 171.]
The reality, of course, is that the proposal will do nothing to achieve net zero or improve air quality, as firms can switch to white diesel only in the absence of greener alternatives. Indeed, the fact that the Government are also removing the rebate from some greener alternatives calls into question the claim that it is even about emissions. One company that has engaged with me since I secured the debate said:
“Bio-diesels like Hydrogenated Vegetable Oil are also being affected be the rebate removal. Therefore it is likely on 1 April 2022 we as an industry will move towards a White Diesel as it is the more commercially viable option.”
That multiplied across many firms will result in the policy having the opposite impact on the environment than that stated by the Government.
The Exchequer Secretary also told the House about the consultation undertaken by the Government. The policy change was first proposed and consulted on when the pandemic was at its height. As such, consultation responses did not reflect the deep concern that is now evident regarding the proposal. Indeed, the market conditions now are as challenging, if not more so, than when the consultation was held. I plead with the Government not to ignore the concerns of the industry. According to the Civil Engineering Contractors Association, losing the red diesel rebate could cost the UK construction industry £280 million to £490 million a year—£20 million to £25 million in Northern Ireland. For our local Executive, the additional cost would be the equivalent of a new build school.
For firms tied into public contracts, absorbing that cost is not possible. It will put them under, and make future Government investment in building roads, schools and hospitals more expensive. We need the Government to pause the proposal and move towards a phased introduction that removes the rebate as new technologies come online that allow the industry to really help to reduce carbon emissions, not just pay more now for no benefit. Consideration must also be given to exemptions, not least for the waste management industry.
I conclude by quoting the Chancellor in his Budget speech to the House last year:
“That is what this Budget is about and that is what this Government are about. Infrastructure connects our country, drives productivity and levels up.”—[Official Report, 27 October 2021; Vol. 702, c. 279.]
He is right, so why make such a key driver in our economy more expensive?
I thank hon. Members for participating in the debate. I will gallop through some of the points that were raised. The right hon. Member for Orkney and Shetland (Mr Carmichael) made some excellent points around the fact that the Government are targeting low-hanging fruit. He also said that construction is facing a perfect storm and that many have secured future products and are now tied into a price and unable to claw it back, which will drive up the cost of houses and public expenditure.
My hon. Friend the Member for Strangford (Jim Shannon) eloquently made the point that this proposal will have a ripple effect, and gave excellent examples of businesses in his constituency that will be affected. Take waste management. What is more important than getting rid of our waste? But we are putting those companies in jeopardy.
The hon. Member for Angus (Dave Doogan) talked about a tax grab—he absolutely nailed that point. Alternatives are just not there, and the Government should look at how realistic it is that those alternatives will be there in the next two months. He also made a point about the devolved Administrations.
The hon. Member for Glenrothes (Peter Grant) talked about the unintended consequences and again asked the Government to ditch the plan. This is cliff-edge stuff that will ultimately have a macroeconomic impact. The shadow Minister, the hon. Member for Ealing North (James Murray), highlighted the fact that we are all committed to being more environmentally friendly, but, again, mentioned the impact on fraud and fuel theft.
I thank the Minister. I have to say that I do not feel that we got the answers today. There is absolutely zero—
Order. I am really sorry; we could clearly have carried on for longer, but time has beaten us.
(3 years ago)
Commons ChamberI do of course join my hon. Friend in congratulating those apprentices. The Government are continuing to invest in high-quality technical education and to reform the skills system so that it is employer-led, to give young people the right skills and training to enable them to succeed in life. More than 100,000 apprentices have been hired under our new incentive payment scheme, 75% of whom were under 25. Skills boot camps are upskilling people into high-growth sectors, including the digital sector.
To help ourselves achieve net zero and improve UK air quality, we are reducing the entitlement to use red diesel, which currently enjoys a duty discount, from next April. The full duty rate more fairly reflects the damaging impact of diesel emissions, and will incentivise the development of greener alternatives.
In my constituency and across Northern Ireland, small family-run construction companies and those operating on a larger scale are telling me that this move will cripple their profitability, and that alongside the significant increase in the cost of materials in the last year, it will make their operation even more challenging. Will the Chancellor and the Minister agree to meet industry representatives to hear about the real-life impact, and to explore how it can be addressed and how jobs and profitability in Northern Ireland can be protected?
We recognise that this is a significant change for some businesses, but we have consulted on it since it was first announced in 2020. Those whom we have consulted include representatives of the construction sector and representatives from Northern Ireland, and the case simply is not compelling in comparison with the importance of reducing our harmful emissions. Red diesel leads to 14 million tonnes of carbon dioxide emissions each year, and we need to incentivise greener alternatives as part of our transition to net zero.
(3 years, 3 months ago)
Commons ChamberThere were many elements of the speech by the hon. Member for Newton Abbot (Anne Marie Morris) that I wholeheartedly agreed with, on the definition of good social care and in particular the reporting mechanism for the money that is raised as a result of our decision tonight. She made some very important points.
I want briefly to say what an unusual first week back it has been. Yesterday, we debated the Elections Bill and basically voted on compulsory ID cards. I feel that is very much against the grain of who we are. It has always been nice to know that we can pop out to the shops or down to the polling station without photo ID, and I think that some of the things we debated yesterday about photo ID go against that very liberal notion of who we are.
Likewise, we had the debate about compulsory vaccinations. Again, I feel that there is something very illiberal in that, particularly in forcing certain people, in certain workplace conditions, to do it. I feel that that is another essential debate about who we are. I am the daughter of complete Anglophiles; I grew up with “This is England” on the coffee table at home. Sometimes I feel that we have forgotten who we are.
In 2009, the satisfaction rate for the NHS was 80%, the overall best figure ever since the measure was introduced in 1983. When this Government came in in 2010, that started to drop, and it has now dropped by more than 16%. We know that the waiting list is up to 13 million, but as the hon. Member for Newton Abbot said, we have no recording mechanism and no mechanism for knowing exactly what the money will go on. That point was very well made.
We also know that the Federation of Small Businesses has real concerns that the measure might stifle recruitment right now. The TUC is very worried about young people and their employment prospects, questioning whether this is the right moment, when we do not know whether the recovery is sustainable. I am bitterly disappointed as a vice-chair of the Local Government Association and a former council leader—I know there is one on the Government Benches—that nothing has been spelled out on how we are going to help struggling councils. All of this could very well go straight into a waiting list. There are no targets and there is no promise, so I worry that local government will be ripped off and that the £3.9 billion gap will never be filled.
The measure is coming forward at a time when we know the people who will feel its impact the most, as the right hon. Member for Rossendale and Darwen (Jake Berry) said, happen to be in that care system. The irony is that they will have to pay even more to work in a failing system, where many are not paid the living wage. Many councils cannot afford to pay the extra living wage, which makes such a huge difference to that workforce. I am sure those on the Treasury Front Bench will make those deliberations when they have a chance. I am sure they have been working on this all summer, but it does feel a bit rushed—
I thank my hon. Friend for giving way and I agree with much of what she has said to date. She may or may not know that in Northern Ireland today a leading gas supplier announced a 35% price increase. That will put significant financial pressure, particularly on the—
Order. I am not sure whether the hon. Lady has been in for much of the debate, but it is important that interventions are very short because there are a lot of people who have put down to speak who may not get in.
That will put significant pressure on the low paid and the squeezed middle. Does she agree that the increase in national insurance contributions on top of that will have an impact on them, even making—