(2 years, 1 month ago)
Commons ChamberI have already explained that the normal statutory process is under way. When it comes to helping people on lower incomes, I mentioned the very significant increase in the minimum wage just a few months ago. We made an unprecedented intervention this year, amounting to £37 billion, which is disproportionately directed towards people on lower incomes. The one third of households on lower incomes are receiving an extra £1,200 this year.
The hon. Lady also referred to the fact that people earning £12,570 or less pay not a penny of national insurance and not a penny of income tax, which is thanks to the action of this Conservative Government.
The Government are encouraging business innovation in many ways, of which I will enumerate four. As I mentioned to my hon. Friend the Member for Mid Norfolk (George Freeman), there is a significant uplift in R&D expenditure, with £150 million of innovation loans over the spending period, research and development tax relief, long-term investment in technology and science—a competition is providing up to £500 million in Government support—and the British Business Bank is supporting innovative businesses, including through the future fund.
Owners and entrepreneurs behind small businesses such as Code Ninjas in Bridge Street in my constituency are a key part of the Government’s growth agenda. What steps does my hon. Friend have in mind to enable such small and medium-sized enterprises to create further jobs and growth?
I am not sure if I got the name quite correct. Was it Comms Ninjas?
Oh, right. Perhaps I can visit my hon. Friend’s constituency to learn what the company does.
More generally, the growth plan focuses on important measures to support small businesses that wish to grow, including by making the £1 million annual investment allowance permanent, by looking to expand the amount of money that can be given through the seed enterprise investment scheme to help small businesses to grow and, most importantly, through the Government’s energy price support this winter.
(2 years, 2 months ago)
Commons ChamberI add my congratulations to Ministers past and present involved in introducing the Bill. It is an incredibly important piece of legislation for my constituents. Ruislip, Northwood and Pinner has a high level of employment in the City and in connected financial services, and the subject is close to my heart, as I belong to an even more cherished race of human beings than Tory MPs—I am a former banker.
There have been a number of exceptional contributions to this debate, so I shall try to confine my contribution to items that have not been covered in a lot of detail. First, the Bill is good and important because it will continue to support innovation in the financial sector, of which the UK has a long and proud. If we look at the role played by financial centres in London and Edinburgh in the development of financial products that have brought security and stability to people’s lives, we can see that for centuries the UK has been a leading light in the world. A piece of legislation that enables the sandbox concept, for example, continues to support that innovation and incredibly important to the sector.
Secondly, as we move away from EU structures and governance, we need to ensure that there is appropriate scrutiny of arrangements for regulation and of the implications of the mutual recognition agreements into which we propose to enter. Contrary to what is sometimes said about EU matters being dealt with by unaccountable bureaucrats in Brussels, if anything, our criticism in the UK was that there was often too much scrutiny and democratic involvement. With trade deals, for example, agreements had to be looked at by the European Parliament and the Committee of the Regions. They had to be signed off by the Council of Ministers. There were multiple levels of engagement in that process, and we need to ensure that organisations such as Zurich, which shared a helpful briefing with hon. Members—it certainly informed my thinking about the Bill—can have appropriate input so that we get the calibration right to support innovation, as the Minister is committed to do, and so that we have appropriate consumer protection.
Many Members have referred to the sector as a jewel in the crown of the British economy, which clearly remains the case. It is striking in the context of the Government’s levelling-up agenda that we see, for example, significant inflows of investment in Northern Ireland as a result of opportunities that have been created by the development of the economy there. That has created an opportunity to look at how we spread the benefits beyond the centres to which my right hon. Friend the Member for Central Devon (Mel Stride) and my hon. Friend the Member for Salisbury (John Glen) referred. That is critical for the reputation of the sector, and it is incredibly important for our economy too.
A key part of that is ensuring that we futureproof the regulation of financial services in the UK. There has been much mention of crypto, but I would like to add the need to ensure that non-regulated activity undertaken by regulated institutions requires scrutiny. Our thanks are due to Private Eye magazine, for example, for the detail that it has provided in shining a light on the activities of a number of organisations. The hon. Member for Glenrothes (Peter Grant) referred to things such as funeral plans, but we also need to pay a good deal of attention to the activities of will writing organisations and trust services—for example, the Family Trust Corporation and the Philips Trust Corporation—because significant numbers of consumers may find themselves heavily disadvantaged as a result of advice that they thought came from a trusted financial source, but which was not regulated.
Finally, access to cash has been discussed a good deal. I specifically highlight the need, especially for small businesses, to be able to access banking for the purpose of transacting in coins. In my constituency, I have heard from a lot of small shopkeepers and small business owners that it is not just about consumers being able to get to an ATM—it is about their being able to pay in coin that they receive in payments from customers and being able to extract it for the purpose of having change for cash transactions, which for the most part they cannot do with ATMs.
In conclusion, I am pleased to support the Bill, which as the Minister said will support innovation in this key UK sector. It will ensure that our country remains a global market leader and, importantly, it will ensure that consumers in my constituency and across the UK are protected from scammers who may seek to do them financial harm.
Those who have participated in the debate should start to make their way towards the Chamber for the wind-ups, which will start at 6.40 pm.
(2 years, 9 months ago)
Commons ChamberThe hon. Gentleman is right to point out the measures that we can take to strengthen the powers against money laundering and illicit crime. Those measures require legislation, as he knows. Although I cannot pre-empt the Queen’s Speech, he should know that I, the Home Secretary and others strongly support the inclusion of the economic crime Bill, which contains those measures.
My hon. Friend raises an important point. My right hon. Friend the Chancellor worked closely with him in his previous post as a local government Minister. The supporting families programme provides funding for local authorities to deliver early intervention in children’s services. The programme was the subject of a robust national evaluation between 2015 and 2020, which demonstrated that in addition to improved outcomes for children and families, it delivered a return on investment of £2.28 of economic benefits for every £1 spent.
(2 years, 10 months ago)
Public Bill CommitteesI want to put on the record my interest in the matter before us: I am a member in scope of one of the pension schemes, I am married to a member in scope of one of the others, and a former scheme board member of another of the schemes.
I thank all hon. Members for their contributions. It is important to clarify one of the misapprehensions about what has happened over the course of the passage of this legislation to the issue that we are working to address. The Government did not, as it has been described, make a mistake. We inserted transitional protections into the scheme after the recommendations of Lord Hutton, expressly at the request of the trade union movement. It is important to establish that the request for transitional protections to be inserted was a trade union-led request. That is what triggered the discrimination action against the Government, which we are now working to address. I would defend the Government’s record here quite strongly; this is not something that we have brought about. None the less, we are obviously working in good faith to seek to address it.
(3 years, 2 months ago)
Commons ChamberThe key issue for me is not so much with raising the funds—there are no perfect solutions for that—but with the spending of them. I am more than happy to look my constituents in the eye and say “I voted to raise taxes” if I can demonstrate that we have something to show for it. Those of us with a local government background will know that the social care sector has been crying out for a sustainable financial settlement for at least two decades.
The fair access criteria that were implemented by a Labour Government in 2003 precipitated a financial crisis in a sector that was already under pressure by removing local authority discretion over services and failing to provide the funding for the new model, and charging policies and council tax precepts have proved unable to bridge that gap. As a chairman of a social services committee in those days, I looked my local residents in the eye while imposing Labour’s charging policy for social care on them, so I welcome the Government’s courage in bringing forward a proposal that looks both realistic and workable.
Does my hon. Friend, with his local government background, think that this policy will fit within a wider local government finance reform agenda?
My hon. Friend is absolutely correct to highlight that wider reform agenda. I know we are anticipating more detailed proposals from the Government in due course, but it is clear, as he will know from his local government experience, that if we in this House are serious about fixing social care—much of which is not about the elderly, but about working with adults and children with disabilities—we must learn the lessons from the sector of several decades of change.
First, we must reflect on the lessons of the better care fund, which taught us that councils have been the efficient delivery partner. Even when the sole focus has been to relieve pressure on the NHS, councils have been much more efficient on the whole in using those funds. We must avoid, as many Members have said, that convenient political mistake of allowing all the money to disappear into an NHS black hole with nothing to show for it. However, having learned the lessons of the better care fund, we have to ensure that those additional national insurance costs do not consume the extra funding. I have heard Ministers’ assurances about this, but the care sector has heard many times of new funding that has been cancelled out by deductions from other budgets, so we need absolute clarity that this will find its way to the frontline.
The second point I would like to highlight is that this does not just affect the elderly. About two thirds of social care costs are for working age adults and children, and the NHS is barely involved in many of those cases. However, the costs can be eye-wateringly high, so we need to make sure that as we direct those funds, as my hon. Friends have highlighted, they are getting to where they are required.
The third lesson, which has been mentioned by a couple of Members, is about how the market responds. We have a thriving market for social care in this country, including charities, the private sector and local authorities. We know many of those organisations will see the £86,000 as a very tempting target: the sooner someone spends their £86,000, the sooner the state steps in. We need to ensure that we have learned the lessons of what has happened with the involvement of some businesses, particularly in the children’s social care sector, and make sure this is not seen as simply an opportunity to rip off the taxpayer.
Finally, may I urge Ministers to review the operation of the fair access criteria and the rules that underpin them? The rule of provide for one and provide for all, which was clarified by a subsequent judicial review for the London Borough of Harrow, forced the retrenchment of local authorities in adult social care towards serving only the most critical needs of people in our constituencies.
My hon. Friend is giving an excellent speech. One thing he has touched on, but perhaps not expanded on, is the efficiencies that local government has found. Are there any particular lessons that he thinks are relevant to the NHS as we move forward?
Order. We really are pushed for time, and this is not fair on those who are winding up.
Concluding rapidly, Madam Deputy Speaker, that is a very important point. We need to recognise, as many constituents are surprised to discover, that as a matter of law very strict eligibility criteria restrict what they can access. We need to ensure, as we reform the sector, that we free up local authorities to use these resources to meet the demographic challenges.
(3 years, 6 months ago)
Commons ChamberI rise to support new clause 25. It is a pleasure to follow the hon. Member for Erith and Thamesmead (Abena Oppong-Asare) and I would like to echo much of what she said.
We have had freeports before in the UK, as recently as 2012, and our EU partners still have them, with 72 free zones across the EU territory. Some contributors in these debates have taken an excessively, I think, dim view of freeports. I would like to take a more balanced view, but I still think we are absolutely right to proceed cautiously, and that is why I am happy to support new clause 25. Given the incentives on business rates that are on offer, the potential national insurance exemptions and the exemptions on customs duties, it is absolutely vital to make sure that the economic activity attracted to freeports is not simply being displaced from elsewhere, and that the activity is new, adding value and resulting in economic output that is greater than would otherwise have been the case.
Therefore, when we are measuring that impact, it is important to make sure that the Government do not get to mark their own exam paper by choosing their measures of success after the fact. That is why it is important to be able to report back on job creation, skills and productivity, the impact on tax revenues, the levels of financial criminal activity that have resulted around a development and the details of the resourcing needed to ensure compliance with the law, and also to understand the extent to which the mix of industries that will have grown up around a freeport development match those sought in the original bids.
The Scottish Government have sought to build on the freeport model with a green port version of it that embraces all the potential benefits of freeports, while ensuring that the principles of fair work are enshrined at their heart—the principles of fair work and fair pay through a real living wage—and putting environmental concerns to the fore, through placing carbon reduction at the heart of these developments. These proposals for green ports from the Scottish Government already have widespread buy-in from business, industry and investors in Scotland. The Scottish Government stand ready, armed with the fresh mandate they received from the Scottish people earlier this month, to press ahead as soon as the UK Government are willing to do so.
At the conclusion of the Committee stage, the Minister gave—I hope he will not mind me describing it in this way—a somewhat editorialised account of the development of freeports and green ports in Scotland. We could back and forth roundabout that, but I would much rather move forward, just as the Scottish Government would. I hope the Minister would like to do that, too, and will commit to working as quickly as possible with the Scottish Government to bring green ports to fruition in Scotland.
My constituency is not one of those that has the prospect of playing host to a freeport, or indeed being very close to one, but it is a subject of interest to my constituents for a number of reasons. I want to set out briefly what those are and why it is so important that the Government are pressing ahead in this direction.
My constituents are part of outer London, a part of the country which for many years and many generations has had an enormous economic pull factor, including for people like me. I grew up in the south Wales valleys. Following the disappearance of a lot of the heavy industry that was there, and despite a huge amount of effort by the Westminster Government and significant investment by what was then the European Economic Community to develop things such as roads, it is a place that has taken a very long time to see a significant financial and economic regeneration. While I remain sceptical, as many in the House are, about the tax situation of freeports in general, it seems very clear that they are a fantastic opportunity to play a big part in the economic regeneration and levelling up of parts of our country that have really struggled.
As a Conservative politician, it seems to me clear that a policy that is about ensuring people have access to work, a policy that is part of a wider agenda of raising people’s earnings and addressing things from child poverty to health inequalities, which still blight some parts of our country, and a policy that is very much about setting the principles of what we want to see as our economy develops, rather than taking a laissez-faire approach—we want to see the wealth not simply created, but spread and shared—is absolutely the right way forward. Freeports can be a significant part of achieving that.
It is absolutely right, as we have heard from a number of Members, that we have a balanced approach to the use of freeports. I think the port of Tilbury was the last of the UK freeports, but they are in common use around the world, The feedback is clearly very mixed about their economic impact. However, it is very consistent that they act as a draw, as a focus for a local economy, that helps to contribute to creating jobs and opportunities. As a country, we need to do that in places that have simply not had the opportunity for that in the recent past.
My constituents, who have significant concerns, for example, about the pressure on land to be released for housing to provide homes for the people who are currently being drawn in large numbers into our capital—contributing to significant housing waiting lists and significantly rising house prices, sometimes meaning that the children of people who have grown up and live locally are simply not able to settle in that area—see a direct benefit, too, to the whole country having the opportunity of economic levelling up. I therefore see this as a direct benefit to my constituents. It is important to the medium to long-term future of our country, and it is absolutely an inherent and appropriate part of the regeneration and levelling up strategy that we have for the whole of the United Kingdom. I absolutely 100% support this direction of travel and I commend it to the House.
It is a pleasure to contribute to today’s debate on freeports, to voice my continued support for this commitment and to speak against the adoption of new clause 25. For me, new clause 25 typifies the stark contrast that exists between the sides of this House when it comes to delivering for the British people, with the Conservative side supporting a Government focused on delivery and the other side persistent in pursuing yet more division and delay.
As colleagues have already said, freeports will be central to the levelling-up agenda, attracting new businesses and jobs, creating opportunity and investment across areas of Britain. This policy is key to regenerating communities across the UK and I hope that may include my own constituency of Bridgend. Following the closure of the Ford factory in Bridgend, the establishment of a freeport in the Port Talbot and Bridgend area could mean a great deal to my constituents and the whole of south Wales, with the creation of up to 15,000 jobs. It is for those reasons that my constituents would expect me to back the Government tonight.
I am sure Opposition Members do not want to delay the investment associated with the measures in clauses 109 to 111. By implementing them, we will help to unlock employment in areas previously left behind and allow them the opportunity to prosper. The additional reporting requirements for freeports outlined in new clause 25 would impose unnecessary onerous processes, with little to no benefit over and above what has already been put in place; they would just cause further delay.
In Wales, as we know from oral questions to the Secretary of State for Wales in this House last week, the Welsh Labour Government have dragged their feet time and again and have refused to collaborate on this issue with Ministers here. The result is that, although bids have been received and locations have been identified in England, we still do not know what support, if any, a freeport in Wales will get from the Welsh Government.
We were elected to deliver and to get on with the job of making a success of post-Brexit Britain. Clauses 109 to 111 achieve just that. I will therefore be supporting the Government this evening.
(3 years, 7 months ago)
Commons ChamberCornwall hosting the G7 is a fantastic opportunity. I know that my hon. Friend has welcomed this chance to showcase all that Cornwall has to offer. Many organisations in the broader tourism sector have benefited from business grants of over £34 million provided to her constituency of South East Cornwall, as well as business rates holidays and a temporary reduction in the rate of VAT. The Ministry of Housing, Communities and Local Government has recently announced the £56 million welcome back fund to support safe local trade and tourism as economies reopen.
I thank my hon. Friend for that answer and particularly welcome the support being offered in the form of extended business rates relief. Looking to the future and with reform of business rates in the pipeline, what discussions have taken place with Department for Business, Energy and Industrial Strategy colleagues about the potential to balance the need to secure the correct revenue to support vital local government services and boosting high streets like mine in Ruislip, Northwood and Pinner through the reform of business rates?
(3 years, 7 months ago)
Commons ChamberThe Sewell report recognises that issues of mistrust and unfairness, whether they are real or perceived, really matter, especially in policing. Will my hon. Friend engage with her Home Office colleagues to develop proposals to build on the good work that has been done to make local police forces more representative of the communities that they serve and introduce more community oversight of local policing?
Yes, that is one of the recommendations in the report and it is clear from what it says that trust and fairness are key issues for ethnic minority communities, particularly when it comes to policing, as my hon. Friend has just highlighted. I understand that my right hon. Friend the Minister for Crime and Policing is already engaging with the commission to discuss its recommendations in that regard and I welcome his early initiative in doing so.
(3 years, 8 months ago)
Commons ChamberI thank my hon. Friend for his question. He should know that the Government remain committed to ensuring that work pays and to helping to end low pay. As he knows, investment to raise productivity is vital for long-term sustainable growth in wages. I am sure that his request is one that we will consider, as always, in future Budgets. Taxes and minimum wages are always under review, but this Government are absolutely focused on levelling up. We have set out our plan to build back better, which will drive economic growth that levels up the whole of the UK through significant investment in infrastructure as well as skills and innovation.
Taking into account all the measures announced since last March, this Government are providing more than £400 billion of direct fiscal support to the economy over this year and next. That will rank as one of the most comprehensive and generous responses of any country anywhere in the world.
[Inaudible]—and the further support announced for businesses. The extension of the VAT and the business rates holiday, alongside the restart grants, are particularly welcome for businesses in my constituency of Ruislip, Northwood and Pinner, especially on our high streets. Does my right hon. Friend agree that these steps will support our short-term economic recovery, and ensure that businesses have the breathing space to protect jobs as they begin to bounce back?
My hon. Friend is absolutely right. Our priority economically is to protect, support and create as many jobs as possible, and the support that we have provided to businesses will help to do that. My hon. Friend talks about breathing space; he is right to say that measures to improve businesses’ cash flow in the short term will help give them the breathing space they need to drive our recovery as they begin to reopen in the coming months.
(4 years, 2 months ago)
Commons ChamberThe right hon. Gentleman is absolutely right to highlight the importance of the aerospace industry to our economy. It is, in common with aerospace industries across the globe, suffering a deep depression in demand for all the obvious reasons. He can rest assured that we engage regularly with the companies in that sector. In particular, to support their future success, we are investing heavily in R&D alongside those companies to make sure we remain on the cutting edge of advanced manufacturing capability.
My hon. Friend is absolutely right to highlight the importance of good childcare and he is right to highlight that the Government support people with 20% of their childcare costs up to a cap of £2,000 through tax-free childcare. I can also tell him that, in recognition of the importance of this issue, we made some adjustments to how tax-free childcare operated during the pandemic, so that if someone’s income fell below the minimum income requirement as a result of what was happening they would continue to receive financial support up until the end of October.