Rail Service Reductions

Baroness Laing of Elderslie Excerpts

Friday 22nd October 2021 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

Thank you very much, Madam Deputy Speaker—[Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. The hon. Lady has to be heard, so please leave quietly. It is the first time I have had to say that in nearly two years. I think we have achieved that.

[Sarah Olney]

Thank you very much, Madam Deputy Speaker, for granting me the opportunity to have a debate on this issue and also for ensuring that I can be heard.

This is an issue of specific importance to my constituents, but it also has broader implications for our country’s approach to climate change, infrastructure and the recovery from the covid pandemic. I asked for this debate in response to South Western Railway’s recent consultation on the future of its services. Like all our rail operating companies, SWR has run a reduced service during the period of the pandemic, and has been supported by considerable public funding. That has been essential for keeping our public services going and to supporting the economy, both through the lockdown and as we move forward.

SWR is, understandably, looking ahead to its post-pandemic operation, and has put forward a revised timetable for consultation. The revised timetable proposes to cut services from many of the stations in my constituency. It will be cutting trains from North Sheen and Mortlake stations from once every fifteen minutes to once every half hour, and removing peak hour services from Kingston and Norbiton. The proposals have been strongly resisted by me and by my neighbouring MPs in Kingston and Twickenham, my right hon. Friend the Member for Kingston and Surbiton (Ed Davey) and my hon. Friend the Member for Twickenham (Munira Wilson), and by many, many residents across my constituency and beyond.

SWR has justified the proposals by asserting that commuter travel is likely to recover to just 60% of pre-covid demand. That seems extremely unlikely. In April to June this year, passenger numbers on SWR, according to the Office of Rail and Road, were 45% of the level that they had been before lockdown restrictions began. This was a period where there were still many restrictions in place and workers were being asked to work from home if possible. It is ridiculous that SWR thinks that it can make long-term forecasts of commuter demand when it does not have any post-lockdown demand figures to look at.

Transport for London figures for Overground journeys on their network were already showing 55% of pre-lockdown demand by August, and anecdotal evidence—from me and from many other commuters who are using the train services more regularly now—shows continued growth in rail journeys both in the centre of London and on suburban services since that time. I suspect that somebody in SWR has just assumed that all commuters will make a choice to work in their offices on Tuesdays, Wednesdays and Thursdays in future and have extrapolated a post-covid demand of 60% from that assumption. However, it is ignoring the large numbers of schoolchildren, for example, who depend on suburban services to get to and from school, not to mention their teachers and other school staff, and the large number of workers across many industries and the public sector who will need to be in their workplace five days a week.

The Government have been most insistent in recent weeks that they expect to see civil servants back at their desks on a full-time permanent basis, for example, and we know that many younger workers prefer to be in the office than stuck in their bedrooms at home. It is much too soon to be making assumptions about how people will carry out their working lives once the fear of covid and contracting covid has disappeared. For example, in the past few weeks—as we know, covid numbers are on the rise—we have started to see a slight tailing off in the growth of rail users, perhaps in response to the understanding that we are not yet out of the woods in the pandemic, that people still need to take care and that we still need to be cautious. I do not think it is possible to make any forecasts of post-pandemic railway usage until such a time as we can be confident that we are completely out of the pandemic.

The assumption that demand for services will reduce highlights the great challenge facing commuter services. For many decades, rail operators have assumed that commuters are a captive customer and, because they are forced to make the same journey five days a week, that demand for rail services will continue and grow and be inelastic to price increases. They have assumed that ever-increasing fares will continue to be paid by commuters who have no alternative other than to use the rail services that they are offered by their local rail operator.

However, the pandemic has revealed to us that we can continue to work successfully from our homes and other locations, and that we therefore have a choice. We have a much greater range of commuting options to choose from. If we want, we can stay at home and work just as successfully, in many industries and sectors, as we could if we were in the office. We may need to go into the office only for a few hours. We may choose to travel later. We may choose to come home later. We may choose to adopt any kind of working pattern and to be based somewhere between home and the office. There is one assumption that we might be able to make with some confidence: it will no longer hold true, particularly for people living in the suburbs, such as in my constituency, that there is a huge number of people who will require train services to get them to their offices before 9 o’clock in the morning and who will therefore be captive to price rises on the trains.

I think that South Western Railway’s mistake is to assume that the increased range of options will necessarily mean that fewer people will choose to travel at peak time and to plan accordingly. It betrays an extraordinary lack of confidence in its service to assume that once people have more options, they will not willingly choose to use trains. Instead of seeking to persuade people to use trains, South Western Railway has decided to cut supply. That is not the entrepreneurial spirit that railway privatisation sought to inspire.

The challenge that the country faces now is not just from covid. We also face the far greater challenge of cutting our carbon emissions, and much of that reduction needs to come from changing the way we travel. Government have made a clear commitment to modal shift as part of their strategy to reduce transport-related emissions and that means encouraging travellers to use trains, buses and active travel instead of motor cars. There is no doubt that people have continued to use their motor cars. We see motor car journeys now at similar and even greater levels than before the pandemic. If we are to meet our carbon emission goals, we need to redouble our efforts to encourage people to travel by train.

How would a free market in rail travel respond to the challenge presented by home working and car use? It would cut prices to stimulate demand, and yet, we can see that the cost of rail tickets has increased by 36% over the past 10 years compared with just a 9% increase in the costs of motoring. What would be the impact of cutting services on rail operator income? It would decrease demand for rail services and cut fare income. Rail operators would then be forced to increase fares on remaining services to cover their costs. With a greater choice of how and when to travel—indeed, of whether to travel at all—more and more commuters will choose not to use a train service that offers ever-increasing prices for fewer and fewer services. That will have a knock-on impact on our rail network as a whole. We will see underused stations gradually closed and fewer and fewer services. Rail operators will find it harder and harder to cover routine maintenance costs. Even if we do not think that we can yet forecast user numbers, I confidently forecast that reduced rail services and reduced income will result in a spiral of fewer and fewer services, eventually cutting off those services entirely. The Rail Minister and I are both united in very much wanting to avoid that.

It is clear that now is not the time to be thinking about cutting services. While commuters are thinking about how to structure their working lives, we need to incentivise rail travel and encourage commuters and other travellers to use it. The rail industry has already identified that there are great opportunities for growth in leisure travel. Let us improve the offering—more comfortable seats, better catering options, more space for luggage, and more reliable wifi—and offer competitive pricing to make it a more economical option than travelling by car.

I love trains. They are, by far, my preferred way to travel and, although there are many advantages to working from home, I was surprised to discover how much I missed my commute during lockdown. The growth of our suburban train network during the 20th century created new towns and neighbourhoods, and enabled many more people to enjoy life away from the cramped housing of the city, but our city centres depend on being accessible to a large number of people. We cannot maintain the unique economic, cultural and social life of central London if we discourage people from travelling into the city. We cannot tackle the challenge of climate change if we do not invest in affordable and accessible alternatives to the motor car. I call on the Minister to act to stop these proposed cuts in railway services and instead encourage people to use them.

International Travel

Baroness Laing of Elderslie Excerpts

Tuesday 29th June 2021 Commons Chamber

[Grant Shapps]

The reality of the situation is that this virus just does not give us those answers. I wish it would. I hope the hon. Gentleman can see that, through the combination of the traffic light system and the forthcoming double-vaccination system—so that it is not only the place but the individual that can be looked at—we will get to a position where people are able to travel more freely than they have been up to this point. However, I have to remind the House that we are still living through a global pandemic, and things are not quite so straightforward as has been suggested in one or two of the interventions, although not that of the hon. Gentleman.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I will now suspend the House briefly so that arrangements can be made for the next item of business.

Aviation, Travel and Tourism Industries

Baroness Laing of Elderslie Excerpts

Thursday 10th June 2021 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I spoke to the Minister beforehand. The holiday and travel sector, in particular, has great uncertainty. What help can be given to businesses such as Laser Travel in my constituency that offer a tailored, top-to-bottom service? Existing furlough, self-employed support for international travel businesses for a further six months, retained business rates relief and a further tailored recovery grants regime for travel agents, tour operators—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. The hon. Gentleman cannot make a speech at this point. Not everyone will get to speak in this debate who wants to do so, and interventions simply cannot be that long.

[Robert Courts]

I would be delighted to discuss this matter further with the hon. Gentleman. Later in my speech I will come to some of the factors that have been available to some of the wonderful travel and tourism businesses that we have all over the United Kingdom. That may give him the answer that he wants. If it does not, I am happy to discuss it further with him and I know that the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston)—the tourism Minister—would be happy to do so as well.

As I was saying, everybody can be reassured that the Government recognise the critical national importance of international travel. It connects families that have been kept apart, boosts businesses, brings in investment and underpins the UK economy. It is essential to the way that we see ourselves as a country: open, international and cosmopolitan. That is why it is essential that any steps that we take now lay the groundwork for a sustainable, safe and robust return to international travel.

In February 2021, the Prime Minister asked the Secretary of State for Transport to convene a successor to the Global Travel Taskforce, building on the recommendations set out in November 2020. The taskforce published that report in April 2021. I would like to offer my sincere thanks to the travel and tourism industry for its enormous contribution and close co-operation with Government in the development of the report and for its continued support in the ongoing efforts to successfully implement the report’s recommendations. The report set out a framework for a safe, sustainable, robust return to international travel, seeking input from across the transport industry.

The Secretary of State confirmed on 7 May that non-essential international travel would resume on 17 May, lifting the “stay in the UK” regulation and allowing international travel to recommence under the new traffic light system. The system cautiously balances the reopening of international travel with managing the risk posed by imported variants. It categorises countries based on risk, allowing us to protect public health, and particularly the roll-out of our world-beating vaccination programme, from variants of covid-19.

The Joint Biosecurity Centre produces risk assessments of countries and territories. Decisions on which list a country is assigned to and any associated border measures are then taken by Ministers, who take into account that JBC risk assessment alongside wider public health factors. The Government have had to make difficult decisions in the early stages of the return to international travel; however, they are necessary to ensure that we do not risk throwing away our hard-won achievements, which have been possible only through the hard work of the British people, and people coming forward for their vaccinations when called. However difficult these times are, and I am under no illusion that they are challenging, we must not risk having to go backwards.

To address the immediate impact of travel restrictions we have introduced an unprecedented package of financial support across the economy, totalling approximately £350 billion. By September 2021, the air transport sector alone will have benefited from around £7 billion of Government support, including accessing more than £2 billion through the Bank of England’s covid corporate financing facility and around £1 billion to £1.5 billion of support through the furlough scheme. That is the same job retention scheme that some Labour Front Benchers have criticised and called “money wasting”. I could not disagree more, and I am sure that the people whose jobs it has saved would disagree as well.

The extension of the furlough scheme to the end of September this year allows us to continue supporting businesses and protecting as many jobs as possible. As part of our economy-wide support we have provided over £25 billion to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks. We have extended business rates relief and introduced new restart grants of up to £18,000 for many in the sector. We have also extended the cut in VAT for tourism and hospitality activities to 5% until the end of September.

The levelling-up fund, the city and growth deals in Scotland and Wales, and the towns fund all show that the Government are investing in tourism infrastructure across our Union. This week, we announced town deals for a further 33 towns as part of the towns fund programme. Those places, which range from seaside towns such as Hastings and Hartlepool to the historic market towns of Bedford and Bishop Auckland, will share over £790 million to boost their local economies, create jobs and help them to build back better from the pandemic.

To date, we have announced town deals for 86 places across England worth over £2 billion in total. A new £56 million welcome back fund is helping councils to boost tourism, improve green spaces and provide more outdoor seating areas. Part of that funding will be specifically allocated to support coastal areas, with funding going to all coastal resorts across England to welcome back holidaymakers safely in the coming months.

On health certification and testing, the border requirements that international visitors will need to follow depend upon the risk rating of the locations that they have been in prior to arrival, as I referred to. As variants of concern still pose a significant risk, testing from a UK Government approved provider remains in place. We recognise that the cost of those tests is still too high. Although we have seen the price of post-arrival tests decrease from around £210 to around £170, we continue to explore options for lowering the cost of testing further, including cheaper tests being used when holidaymakers return home.

Passengers can now use the NHS app to demonstrate their covid-19 vaccination status or alternatively can request a letter that outlines proof of vaccination five days after they have received their second dose of a covid-19 vaccine. The ability to prove one’s vaccination status for outbound travel using the NHS app and an inclusive letter service means that several countries now accept vaccinated visitors from the UK with reduced or removed testing and health measures.

--- Later in debate ---

[Robert Courts]

If I have understood my right hon. Friend’s question correctly, the position is that we continue to assess all the measures that apply in terms of policy at the checkpoint reviews. Similarly, we look approximately every three weeks at which countries fall into which list. When I talked about consumer confidence in the charter, I was referring to the rights that consumers have and the responsibilities of those in the industry. I hope that I understood his question correctly; if not, I will come back to it later.

In the last couple of minutes, I would like to say a little bit about our priorities for the future of aviation. The UK has a proud history at the forefront of global aviation. It provides hundreds of thousands of jobs and billions of pounds to the UK’s GDP and tax revenues—money that is invested back into our vital national services. We are working on a strategic framework that will focus on building back better and ensure a successful UK aviation sector for the future. That framework will set out a plan for a return to growth of the aviation sector, and it will include consideration of workforce and skills, Union connectivity, noise, innovation, regulation and consumer issues. The strategy will complement the Government’s net zero aviation strategy. It will consider the critical role that aviation plays in growing the UK’s global reach and we will publish it by the end of the year.

The measures I have outlined demonstrate how determined the Government are to support this vital industry as we start to rebuild the economy. I am a Minister in the Department for Transport. By definition, I want to see people travelling, and I want to see people flying. I want a thriving aviation industry. I want to welcome people back to our shores to enjoy the delights our country has to offer, and I want our people to be able to explore the wonders of the world. But we cannot and will not rush this, and we cannot and will not undermine our hard-won progress. If we move too quickly—recklessly, even—we could throw away our progress and take us all, including the travel, tourism and aviation industries, back to square one. The best way to support our aviation, travel and tourism industries is to resolutely follow the vaccine roll-out, return life to normality and allow these industries once again to soar.

[Madam Deputy Speaker (Dame Eleanor Laing)]

It might be helpful for colleagues to know that I intend to run the debate until around 4 o’clock, because there is another debate after this, and therefore there has to be a very low time limit of three minutes, I am afraid, even at the beginning. I apologise to the right hon. Member for Maidenhead (Mrs May); I normally try to give her more than three minutes, but we are really under pressure this afternoon. I should point out that Members who are further down the list simply will not have a chance to speak today. They will be able to work out by the arithmetic whether or not they will have a chance to speak, so they do not have to come and ask me. It is a pleasure to call the shadow Minister, Alex Sobel.

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[Grahame Morris (Easington) (Lab)]

Quite unusually, I find myself agreeing with many contributions from both sides of the House today. I want particularly to concentrate on the aviation sector. Clearly, the aviation, travel and tourism sector is unique in this crisis. While other sectors are enjoying a cautious but steady recovery and reopening, the short-term and long-term future of this sector remains extremely uncertain. In addition, it is one of the only sectors whose recovery is not determined solely by the policies of the UK Government, but is highly dependent on the often rapidly changing policies of Governments abroad. However, given the ongoing restrictions that the UK Government are applying to the aviation sector, the sector requires a specifically tailored recovery plan, which this Government sadly have not yet afforded it. Not only is this lack of support putting employers and employees under extreme pressure; it is also putting the UK market at a competitive disadvantage, where European counterparts have provided that much needed support and comfort.

It goes without saying that the workers—almost 230,000 of them in the aviation industry—are highly skilled. They go through a complex process of training to gain qualifications, of checking and of certification. The industry is potentially facing an exodus of workers who are going to leave for more stable sectors with a more predictable recovery prognosis. Quite frankly, the industry cannot afford such skill leakages at this time. A further extension of the furlough scheme would afford employees the flexibility to be furloughed at short notice without the potentially devastating impact on their income, and would serve to protect the skillset that the sector desperately needs to retain during the recovery.



I am honoured to serve as a member of the Select Committee on Transport and as such I have become well-acquainted with the particular challenges facing the sector, and in my capacity as chair of the Unite the union parliamentary group I have closely followed the industrial disputes within the sector, including the disgraceful fire and rehire practices at British Airways and Heathrow airport and, as always, I commend Unite on its work in fighting on behalf of its members in these sectors and once again call on the Government to outlaw fire and rehire to prevent more of these cases and end this unacceptable practice.

The uncertainty that has characterised the Government’s pandemic response endures with the recent traffic light system for foreign travel. Minister, in the time I have left I want to urge you to extend the coronavirus job retention scheme to the sector; extend the furlough scheme and give this sector and the workforce the support and reassurance it so desperately needs.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I know the hon. Gentleman did not mean to say “Minister” like that; I know he meant to say “I would ask the Minister” rather than “Minister, I would ask you”, but I did not want to interrupt him because of lack of time.

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[John Nicolson (Ochil and South Perthshire) (SNP)]

Tourism is the very lifeblood of Scotland. It is no coincidence that our unofficial national motto is “Ceud mìle fàilte”—“A hundred thousand welcomes”. Scotland loves visitors and visitors love Scotland, so the covid pandemic and lockdown have been as painful for the tourism and hospitality sector as for any in Scotland—a country so geared up for them and reliant on them.

I noticed that the Prime Minister flew to Cornwall yesterday to talk to the G7 about upping its game on climate change. While I am sure the aviation industry welcomed his visual endorsement, it is yet another tourism sector that has suffered from a lack of targeted support. The French Government provided Air France-KLM with €7 billion-worth of support to help jobs. The German Government have gone way beyond the commitment level of the UK Government by also pledging €7 billion to their largest airline, Lufthansa, thus not just ensuring the survival of Lufthansa but allowing it to compete more effectively post pandemic with companies that may well be weaker as a result of the pandemic—alas, companies such as the UK airlines.

I mentioned the Prime Minister’s private jet trip to Cornwall, for which he has endured some ridicule. On the environment, as with so much else, he is a veritable geyser of hot air rather than substance. While we all recognise the importance of jobs in the aviation industry, we all recognise too the vital need for a greener transport future. The UK Government missed a major environment opportunity when they ignored the 167,000 people who signed a Greenpeace petition calling on the Chancellor to attach environmental conditions for airlines. Not only was the Chancellor’s help for UK airlines much more modest than their European rivals, but the essential environmental caveats all of us want to see for a greener future were not attached to the assistance given, nor indeed was a requirement to strengthen workers’ rights—although with the Conservatives that probably surprises no one.

Finally, I say to the Minister, and to you, Madam Deputy Speaker, that however you travel, if you are looking for a wonderful spot to go on holiday this autumn, I would recommend my constituency of Ochil and South Perthshire. I would challenge any Member to find a more beautiful piece of the world than picturesque Perthshire, glorious Kinross, and the stunning Ochil hills. Rocks, castles, whisky and extraordinary food: we have it all and you are more than welcome.

[Madam Deputy Speaker (Dame Eleanor Laing)]

The hon. Gentleman is certainly right about beautiful Perthshire.

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[Andy Carter (Warrington South) (Con)]

As well as hospitality, leisure and tourism, the aviation sector has been one of the hardest hit industries—not just here, but across the entire globe. While we have clearly had to take tough measures on our international travel regime to stop the spread of the virus, it cannot be denied that businesses—both large and small—are being impacted as a consequence of these measures.

I thank colleagues in the Treasury and the Department for Transport for the work that they have done to support the sector to date, but the ongoing uncertainty means that there is a need for this support to continue. As has often been the case when making decisions throughout the pandemic, a balance needs to be struck. I therefore call on the Minister to continue his engagement with the aviation industry. I have spoken to him many times, and am particularly grateful to him for his work with Manchester airport, to ensure that the decisions that are taken are in conjunction with airport operators and are a reflection of the work that supply chains do with those airport operators, which rely very heavily on the involvement of that sector.

We must remind ourselves that this industry contributes billions of pounds to our economy, supports thousands of jobs, strengthens the Union and develops skills nationally. In my constituency of Warrington South, Manchester airport alone provides 3,500 jobs to local residents, and Liverpool airport, which is equally close, provides around 300 further jobs. This really is an important sector to my local economy. The airport provides those jobs directly and, through its supply chains, many businesses rely on the airport as a means of income.

I recently heard from my constituent Gaynor Welsby-West, who owns her own travel agency. She hires a number of people locally and has indeed been able to take advantage of measures such as the self-employed income support grant, but her message to me was that she needs more certainty and clarity, which will help to rebuild confidence across the travel sector. Most of us in this place understand that things can change very quickly and that we must be led by the data, but this industry needs to have an element of forward planning.

Restarting the aviation sector is a vital part of the UK’s economic recovery. Aviation, the facilities that it supports and the travel industry are crucial to the economic growth of our region: to the north, to the northern powerhouse and to Warrington. I urge the Government to take full steps to ensure that we can help this sector to recover as much as possible.

[Madam Deputy Speaker (Dame Eleanor Laing)]

It might be helpful for the House to know that the hon. Member for Runnymede and Weybridge (Dr Spencer) will be the last speaker from the Back Benches, so anyone else who is waiting—which is not anybody in the Chamber—will, I am afraid, not be called. We now go by video link to Christine Jardine.

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[Robert Courts]

This has been a very thought-provoking and wide-ranging debate, in which many excellent points have been made. The importance to the whole country of aviation and travel was perhaps most beautifully expressed by my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer), but we have heard all sorts of other points, from the importance of the supply chain, mentioned by my hon. Friend the Member for Warrington South (Andy Carter), through to the beauty of our constituencies, as stated by so many hon. Members that I dare not recount them all, although I do perhaps lean towards the points made by my constituency neighbour, my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown), for fairly obvious reasons. We in this House are united, however, on the critical importance of tourism, travel and aviation, for all sorts of reasons: because of the jobs they support in our constituencies; because of the economic support they bring; because of culture; because of the businesses that operate; but above all because of people’s lives: because of the families, because of what this means to people on a real, everyday personal basis.

I thank my hon. Friend the Member for Crawley (Henry Smith) for his tireless advocacy for Gatwick airport and the sector and for his expertise. Similar points were made by my hon. Friend the Member for Altrincham and Sale West (Sir Graham Brady), the hon. Member for Luton North (Sarah Owen) and the hon. Member for Edinburgh West (Christine Jardine). My hon. Friend the Member for Crawley said that this is not just about two weeks in the sun, and I agree. Leisure is vital and travel broadens the mind of course—it increases understanding and culture—but it is also about jobs and people’s livelihoods and families. I agree with him that a safe reopening of aviation should very much be, and is, our aim.

A number of other points were made. I thank the hon. Member for Leeds North West (Alex Sobel) for his points. I had to disagree with him when he said that the Government’s response has been “lacklustre and patchy” given that Christine Lagarde of the International Monetary Fund said it has been extensive and “unprecedented” and

“one of the best examples of coordinated action globally”.

So, as he would expect, I do not agree with him about that. The tourism recovery plan is due soon, and we will be able to update him more on that when we get to that stage.

I am hugely grateful to my right hon. Friend the Member for Maidenhead (Mrs May) for her great expertise. She mentioned international standards and we continue to work with international partners such as the International Civil Aviation Organisation, the International Maritime Organisation and the World Health Organisation, as well as with bilateral partners. Of course, the announcement by the Secretary of State for Transport of the US-UK travel taskforce is hot off the press. My right hon. Friend asks why we are in the position that we are today as compared with where we were last year. Of course, there has been a change through the variants of concern and the huge success of the vaccine rollout, which we must protect. She says that we will not eradicate covid and she will remember that I referred to its being an endemic disease in my opening speech. As my right hon. Friend and others talk about the freedom that will be brought by vaccines, I can confirm that we are working to see what more we can do to open up international travel with the aid of vaccines.

I am conscious that I am very short of time, and that you are worried about the next debate, Madam Deputy Speaker. I apologise in advance to all right hon. and hon. Members. I have a detailed note of all the points they made and will write to them if there are any specific points that they wanted me to make. If I may trouble the House for 30 seconds more, I would like to say thank you to the Chairman of the Transport Committee, my hon. Friend the Member for Bexhill and Battle (Huw Merriman), who made a number of great points, as did my right hon. Friend the Member for Staffordshire Moorlands (Karen Bradley) and my hon. Friend the Member for South West Bedfordshire (Andrew Selous). They talked about the vaccines and how they are the way out and our hope for the future.

Let me close by referring the House to my understanding and that of the Government of how difficult things are for the sector at the moment. We have a plan in place to restart tourism and aviation recovery in the short and long term. We are seeing the relaxation of restrictions as we are building out from covid. I shall end by quoting my right hon. Friend the Member for Staffordshire Moorlands. She says that life is about more than just eating and sleeping; it is about experiences and people. The hon. Member for Kirkcaldy and Cowdenbeath (Neale Hanvey), quoting Hans Christian Andersen, said:

“To travel is to live”.

Of course, I entirely agree with that. The tourism recovery plan, due to be published shortly, in conjunction with the forthcoming aviation strategy, will set out and reinforce the Government’s commitment to both sectors and help us to reconnect and see the world with the help of our world-beating vaccination programme.

Question put and agreed to.

Resolved,

That this House has considered the aviation, travel and tourism industries.

[Madam Deputy Speaker (Dame Eleanor Laing)]

We almost made it by 4 o’clock. I will now suspend the House very briefly for two minutes so that arrangements can be made for the next debate.

Air Traffic Management and Unmanned Aircraft Bill [Lords]

Baroness Laing of Elderslie Excerpts

Report stage & 3rd reading
Monday 22nd March 2021 Commons Chamber

[Gavin Newlands [V]]

I will be mercifully brief as well. I echo the sentiments of the shadow Minister, the hon. Member for Wythenshawe and Sale East (Mike Kane). I am proud to represent Glasgow airport and to be the Scottish National party transport spokesperson. We have been speaking a lot about aviation over this past year. The UK has the third largest aviation sector in the world, but it is very unlikely to come out of this pandemic with the third largest aviation sector in the world unless the Government make good on their year-long pledge of proper sectoral support. I will be keeping up the pressure on the Minister on that basis.

However, in the meantime and with regard to this Bill, I thank the Minister, the Bill team and the Clerks. In particular, I thank Sarah and her colleagues in the Public Bill Office for their help and patience on issues such as last-minute amendments submitted at the 11th hour on Thursdays. With that, I will say that we support this Bill, and I am glad to see some progress on airspace modernisation: it is about time. I agree that we need to look at the issue of drones in a bit more detail, as the shadow Minister has already outlined.

Question put and agreed to.

Bill accordingly read a Third time and passed.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I will now suspend the House in order that arrangements can be made for the next item of business.

Air Traffic Management and Unmanned Aircraft Bill [Lords]

Baroness Laing of Elderslie Excerpts

2nd reading & 2nd reading: House of Commons
Tuesday 2nd February 2021 Commons Chamber

[Richard Fuller (North East Bedfordshire) (Con) [V]]

It is a pleasure to take part in this debate and to follow the hon. Member for Richmond Park (Sarah Olney). This is a good Bill, and I commend the Minister and his team for its drafting and for bringing it forward at this time. It is a very relevant Bill for Bedfordshire, because, as my hon. Friend the Member for South West Bedfordshire (Andrew Selous) said, many people in Bedfordshire work at London Luton airport and in its associated supply chain. Owing to protocol, as a Minister, my hon. Friend the Member for Mid Bedfordshire (Ms Dorries) is not contributing in this debate, but I am sure that she would want to commend to the House the work of Cranfield University. I believe it is the only university with its own airport, and it plays a leading role in our understanding of aircraft, airport and airspace management.

This is also a timely Bill, because although, as the Minister said, most have paused their consultation work on airspace changes, there is an ongoing consultation on airspace at Luton airport, in combination with Stansted. I wish to draw attention to certain features of that as they relate to this Bill. The Bill rightly recognises that in the allocation and sharing of the limited resource of airspace above the United Kingdom there is a considerable public interest. The Bill focuses, correctly, on making sure that in that process overall public interest is achieved to the best extent as quickly and efficiently as possible. In doing so, it brings to the Civil Aviation Authority and to the Department certain additional ways of compelling airports to make changes that will achieve a speedier resolution of airspace allocations, which will in turn achieve some of our other goals.

One of the most important of those goals is achieving air quality standards and making sure that our aviation industry is sustainable as we seek to achieve our climate change goals. Although the right hon. Member for Hayes and Harlington (John McDonnell) was right to say that this Bill is just a part of that and that there is a large whole that we need to consider, I hope he would recognise that the Government are right to bring forward this part of the puzzle; it is a crucial part of our achieving that overall ambition.

The third area of public interest is in the issue of externalities. Although many people work in and use airports, a great number of people are also affected by airports and their use. Airports, by their very nature, can create noise pollution, and they create air pollution and congestion. Those points come to the fore when consultations about airspace changes take place, as is the case currently with the Luton and Stansted airspace changes consultation.

That process is under way and the Minister’s comments in this debate may therefore be curtailed, but I point out to him that many of my constituents feel that their ability as members of the public to participate in that consultation has been curtailed, not just because of covid restrictions, but by the very framework by which the public can voice their opinions about those changes. In trying to move pieces around and achieve an overall picture that works for the country as a whole, our national airspace control is perhaps intrinsically limited in what it can offer as suggestions to the public for their consultation. In the London Luton airport consultation, the public in Bedfordshire have been left with a limited choice of options to be consulted on. They therefore feel that their democratic voice is not being heard. What consideration has the Minister given to ensuring that, as we achieve greater speed in the process, the public truly have a voice in the resolution of deciding on flightpaths?

That takes us on to the sharing of benefits. We are having a consultation in Bedfordshire because Luton airport wishes to expand, which will be very much to the financial benefit of the operator of Luton airport and also of the landlords—that is, one of the local authorities in Bedfordshire, Luton Borough Council. Both the airport operator and Luton Borough Council should anticipate considerable increases in their revenues from that expansion, yet it is the residents of Bedfordshire, Cambridgeshire and Hertfordshire who will incur the costs of those externalities, whether that is in air quality, noise pollution or their ability to get around and about because of road congestion. That is not addressed in the Bill and, again, I would be interested in the Minister’s view of whether it is appropriate, as part of the allocation of airspace, to start to see in this Bill consideration of how those affected by the changes can receive compensation from those who benefit from them.

The parts of the Bill that refer to drones are welcome additional legislation. This is a good move for the Government, providing some order in how the criminal uses of drones can be controlled. I was reassured in my conversations with the Minister that the additional burdens and responsibilities on police forces should not be considerable. This is a particular issue in Bedfordshire, again, where police resources are spread so thinly. As other Members have said, it is particularly around airports that the misuse of drones becomes of such great concern to the public. I would be grateful if the Minister could comment further about his expectations of the burden on police time, in order to give additional reassurance to the police.

While I am on the issue of the police, I was interested in the comments made by the hon. Member for Richmond Park about the police use of drones. That is not in the Bill, but I would point out to the Minister that there is considerable advantage in the police being able to use drones in everyday policing. As a Member of Parliament for a largely rural constituency, I know that drones offer an opportunity for response times that other modes of transportation would be unable to accomplish. As part of this overall review of airspace, what consultations has the Minister been having with the Home Office to ensure that any future required use of drones by the police will be adequately covered by the regulations that we are looking at today?

I close by joining colleagues in paying tribute to Captain Sir Tom Moore, a national hero and an adopted son of Bedfordshire, with these words, which he used to encourage us last April, when we were perhaps at the darkest of times. He said:

“To all those…finding it difficult…the sun will shine on you again, and the clouds will go away”.

[Madam Deputy Speaker (Dame Eleanor Laing)]

That is a very good tribute to Captain Sir Tom Moore, and one in which I think we would all happily participate.

Hydrogen Transport

Baroness Laing of Elderslie Excerpts

Thursday 26th November 2020 Commons Chamber

[Virginia Crosbie (Ynys Môn) (Con)]

I congratulate my hon. Friend the Member for Rother Valley (Alexander Stafford) on securing this important and timely Adjournment debate on hydrogen transport and his role in championing the hydrogen sector. It allows me to put on record the role Ynys Môn can play in the hydrogen economy. There are significant cost implications spanning the creation of this new industry, not least the sheer amount of infrastructure that must be built to create, store and transport hydrogen. One of the easiest ways to cut costs is to locate as much of the supply chain as closely together as possible. Anglesey is no stranger to the concept, and in the 1970s an aluminium smelting plant was built near the port of Holyhead.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I will allow the hon. Lady to finish, but it sounds like she is making a speech rather than intervening. She clearly has a point that she wishes to make to the Minister, so I will allow her to do so.

[Virginia Crosbie]

The Minister has allowed me to speak for two minutes. This has been agreed with the Minister.

[Madam Deputy Speaker]

An intervention should be about 30 seconds. Two minutes is a speech.

[Virginia Crosbie]

What would you like me to do, Madam Deputy Speaker?

[Madam Deputy Speaker]

If the Minister has already agreed, the hon. Lady can finish her intervention, but this is not an intervention—it is a speech.

[Virginia Crosbie]

Thank you, Madam Deputy Speaker.

Anglesey is no stranger to the concept I mentioned. In the 1970s, an aluminium smelting plant was built near the port of Holyhead, allowing alumina ore to be easily offloaded from cargo ships to the site, which was in turn powered by reliable, cheap and clean electricity from Wylfa nuclear power plant. That symbiotic relationship brought decades of jobs and prosperity to the island.

That ethos could be replicated again with the establishment of a hydrogen cluster, seeing its electrolysers supplied by a new generation of nuclear from Wylfa Newydd or by offshore renewable energy, creating a consistent supply of low-carbon green hydrogen, which could be used locally, exported around the world or transported within the UK. All these efforts on the energy island represent the joint vision of Menter Môn, Bangor University and the Menai science park. They could kick-start a new industry in north Wales, allowing the creation of synthetic fuels for aviation, shipping and agriculture, and making Anglesey a truly net zero island.

We must pursue the path that gives the greatest certainty of reaching net zero, and I was glad to see the role that nuclear power will play in that highlighted in the Prime Minister’s 10-point plan last week. Alongside nuclear, the second of his 10 commitments was to drive the growth of low-carbon hydrogen. That important commitment from the Government needs to be followed by action, to reassure private investors that the Government are serious.

I look forward to seeing the vision that will be set out in the upcoming energy White Paper and in the hydrogen strategy that was spoken of in the Prime Minister’s 10-point plan, both of which the Minister and those in other Departments have been working hard on.

--- Later in debate ---

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I just make the point that there has clearly been a misunderstanding here. The hon. Lady thought she was going to make a speech. Everyone else thought she was intervening. I have allowed her to make a speech. Let me make it absolutely clear for the record that I am not setting a precedent. There has been a misunderstanding, so let us just smooth it over.

[Rachel Maclean]

Thank you very much, Madam Deputy Speaker. I am grateful for your guidance on the matter.

I thank my hon. Friend the Member for Rother Valley very much indeed; he made an absolutely excellent speech highlighting his vast range of expertise on this important topic, which is based on his prior experience and on his role in the all-party parliamentary group on hydrogen.

As is clear from the points raised not only by my hon. Friend but by my hon. Friend the Member for Ynys Môn (Virginia Crosbie) and the hon. Member for Aberdeen South (Stephen Flynn), this technology provides a vast and exciting opportunity for our nation. Our world-leading researchers, innovators, engineers and vehicle manufacturers are already putting the UK at the forefront of this new era in transport technology, but we want to keep aiming higher, pushing further and, in particular, harnessing the potential to build back better.

Last week, the Prime Minister set out the 10-point plan for a green industrial revolution, which I am proud to say contained several key transport policies, including £20 million to support the development of cost-effective zero-emission HGVs in the UK; £20 million to help develop clean maritime technology as part of the clean maritime demonstration programme, which will take place at key sites, including Orkney and Teesside; further investment in research and development on the infrastructure upgrades required at UK airports to move to battery and hydrogen aircraft; and £3 million for the recently announced Tees Valley hydrogen transport hub, to which my hon. Friend the Member for Rother Valley referred.

In the Department for Transport, we intend to build on those announcements through our forthcoming and ambitious transport decarbonisation plan, which will set out how we intend to reduce emissions and deliver transport’s contribution to net zero by 2050. There is little doubt that the compelling case for green hydrogen set out by my hon. Friend the Member for Rother Valley has been heard by the Prime Minister and the Department for Transport. It will play a key part in meeting that goal and in helping to decarbonise the wider economy. We are committed to exploring what that role might be.

We are already investing up to £121 million in hydrogen innovation, supporting a range of projects in heating, transport and the production of low carbon hydrogen, with carbon capture utilisation and storage, and electrolysis technologies. Furthermore, our £23 million hydrogen for transport programme is increasing the uptake of fuel-cell electric vehicles and growing the number of publicly accessible hydrogen refuelling stations.

We are already seeing the possibilities of hydrogen being demonstrated right now, often with the help of Government funding. In the maritime sector, for example, a range of exciting projects is taking place: a company in Lowestoft called Windcat Workboats is leading work to develop hydrogen-fuelled zero-emission vessels; and in the Orkney Islands, Government-supported trials are exploring the use of renewably sourced hydrogen to fuel ferries.

Birmingham’s first hydrogen train, the HydroFLEX, has been built by the University of Birmingham and rail company Porterbrook with the support of a £750,000 grant from the Government. In the skies, US start-up ZeroAvia is using a £2.7 million Government investment to develop a hydrogen-fuelled powertrain that is being demonstrated on a small aircraft.

Since 2015, we have also funded £7.4 million through the low emission bus and the ultra low emission bus schemes to provide 62 hydrogen buses and infrastructure. The Prime Minister confirmed our commitment to deliver 4,000 zero-emission buses in his 10-point plan, backed up with £120 million to kick off this programme in 2021. I note that the hon. Member for Aberdeen South has made a clear request for those buses to be in Scotland. No doubt that has been heard. In Northern Ireland, bus company Translink bought a fleet of double-deckers built by Wrightbus which are powered by hydrogen generated from local onshore wind energy.

My hon. Friend the Member for Rother Valley rightly poses many challenges. Hydrogen provides us with enormous opportunities, but it also presents us with equally important questions: how do we manufacture it in a sustainable and cost-effective way? How do we enable hydrogen-powered transport technology to scale up and get cheaper? How can we make hydrogen a real and viable option for transport operators? To help answer those and other questions, we are developing a transport hydrogen hub in Tees Valley—the first of many perhaps, as my hon. Friend will be glad to hear. It will support and develop cross-modal applications of hydrogen in transport.

Aviation Sector

Baroness Laing of Elderslie Excerpts

Thursday 10th September 2020 Commons Chamber

[Relevant Documents: Second report of the Transport Committee, “The impact of the coronavirus pandemic on the aviation sector”, HC 268, and the Government response, HC 745; and e-petition 303081, “Support the British aviation industry during the covid-19 outbreak”.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Before we come to the Backbench Business Committee debate on the aviation sector, as must be obvious to the House, 59 Back Benchers wish to speak and it will not be possible to get everyone in. Eventually, there will be a time limit of three minutes, but we will start on the Back Benches—not of course the hon. Gentleman, the mover of the motion—with a limit of five minutes. Very soon, that will reduce to three minutes. I give the warning now, so that people may edit their copious notes.

--- Later in debate ---

[Huw Merriman]

My right hon. Friend is right. Across the House we expect the best from our premium brands if they are to be our flag carriers. If a company is saying to its staff, “You might be required to allow us to put you out of work for eight-weeks during the year without pay”—that is two months—“and at other times we might effectively put you on furlough without pay”, how on earth is a member of staff supposed to react?

What I would say before I take one more intervention—[Interruption.] I will not take another intervention, Madam Deputy Speaker. I see an opportunity for British Airways here. It is fair to say that the new chief executive, Luis Gallego, is a thoughtful and reasonable man who is two days into his job. I do not believe he will have the same scorched earth approach to industrial relations as his predecessor. There is still time, because these terms have not yet come out, for British Airways to do the right thing. Perhaps it will do what Ryanair has done and said, “There is a 20% pay cut across the board, for everybody. That pay will be returned when better times come.” We know that our aviation sector has better times to come. I say to IAG’s chief executive: it is not too late, you still have time to do the right thing and protect your workforce and your brand. On that note, Madam Deputy Speaker, I give way completely and allow the debate to continue.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I thank the hon. Gentleman for his courtesy and for understanding that a great many people wish to speak this afternoon. We will therefore begin with a time limit of five minutes, and I call Abena Oppong-Asare.

--- Later in debate ---

[Rachel Hopkins (Luton South) (Lab)]

I thank my hon. Friend for giving way on that point about airport operators. In my patch, I have been in regular contact with the operator of Luton airport, which is responsible directly and indirectly for 11,000 jobs in Luton that are potentially at risk. But this is not only about jobs. It is also about the important revenue streams that come from the airport into Luton Council and wider voluntary and charitable organisations. Do you agree that part of this debate is about those vital revenue streams, as well as jobs?

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. It is an intervention, not a speech, and Members must refer to one another as “the hon. Member”, not “you”.

[Abena Oppong-Asare]

My hon. Friend raises a really important point, which I completely support, and it echoes the conversations that I have had with operators in the aviation sector.

The obvious inaction has been noticed across the industry, and while some employers have a will to act in their employees’ best interests, that is not possible without a support package. One employer contacted me to clarify that, while the Government repeatedly refer to the package of support that aviation has had, the specific nature of industry concerns have not been recognised at all. My colleagues and I have made it clear to employers and businesses, and I will re-emphasise it to the Government today, that we want to work in collaboration with all those affected to ensure that a plan can be put in place to secure the future of the industry. This debate is not about political point scoring. It is about holding the Government to account where they have failed the best interests of people across the UK.

My colleagues on the shadow Front Bench have worked with unions and other stakeholders to produce a policy position that can help to protect jobs, the wider supply chain and the environment. I urge the Government to listen to the recommendations that have come from within the industry to implement a robust plan and to provide a bail-out package to the aviation sector.

I also urge the Government to consider taking action on recommendations from industry leaders. The first is the need for the introduction of airport testing to minimise the need for mandatory 14-day self-isolation. It is clear to all now that the risk posed by covid-19 will not be eliminated in the immediate future, but when cases do begin to fall again—and they will—we must have a system in place to encourage the economy to immediately reopen. Passengers have been discouraged from travelling because they know they will have to quarantine for 14 days upon arrival back in the UK, even if they test negative for covid-19. The blanket quarantine rules are another reflection of the Government’s lack of preparedness as more infections were traced back to different travel destinations, to which the Government responded with a short-sighted and damaging policy.

This is why I am calling on the Government to work with businesses to produce a clear commitment to tackling climate change and investing to make the use of cleaner fuels and other low or zero-emission technologies viable options for businesses. If the Government truly want us to be the world leader, we must start acting like one. Direct emissions from aviation account for 2% of global greenhouse gas emissions. The threat to our planet, our country and our constituencies from climate change is ever growing.

Covid-19 has caused businesses and individuals to operate differently, as we are forced to come up with creative solutions to problems that we did not expect to face. We should take this opportunity to factor in the wider issues that urgently need tackling. The aviation sector has been impacted by measures relating to covid-19 in a very specific but not limited way. The entire industry and my colleagues on the Opposition Benches are ready to work with the Government to develop a plan for the future, and I hope that the Secretary of State for Transport and the Prime Minister are ready to engage in the urgently needed discussion.

[Mrs Theresa May (Maidenhead) (Con)]

I refer Members to my entry in the Register of Members’ Financial Interests. I welcome the Under-Secretary of State for Transport, my hon. Friend the Member for Witney (Robert Courts), to his place. In one sense, I welcome this debate, because it gives an opportunity for us all across the House to point out how important the aviation sector is to our economy, to jobs and, indeed, to global Britain. In another sense, I am rather sorry that we are having to have this debate, because it suggests that the Government have not quite yet got the message about the importance of the aviation sector.



Before I come to my main point, I wish to pick up on one of the points raised by my hon. Friend the Member for Bexhill and Battle (Huw Merriman), who referred to the British Airways situation. I have constituents affected by the British Airways decisions, about which I have had concerns that I have raised with the company, but I also have constituents who will be losing jobs at other airlines and at Heathrow airport itself. That is an impact of the rapid reduction in the number of people who are flying around the world. The best way to ensure that those people have jobs and to support those jobs is to get planes flying again. I welcome the fact that the Government have introduced the air bridges—that was a positive move—but I fear that the air bridges have increased not certainty but uncertainty for people, because of the constant changes that have taken place, sometimes within 24 hours.

Although I have some concerns about the air bridge policy, I wish to focus on testing, and I welcome what the hon. Member for Erith and Thamesmead (Abena Oppong-Asare) said about the importance of testing. First, let me set out the background. This is an important point: stopping people flying into the UK is not going to mean that there is no virus here in the UK—the virus is here; we are going to continue to have cases of covid and will have more cases in the coming months—but it does mean job losses and a negative impact on our economy. Passenger numbers at Heathrow have fallen by 82% and cargo is down 35%. It is reckoned that for every 1,000 passengers, one job is created. The fewer passengers, the fewer jobs. Cargo is also important, particularly for the UK as we are looking to improve our trading relationships around the world, and a lot of cargo is carried on passenger flights.

Sadly, there are those who say that if we want to promote testing and therefore reduce quarantine and increase the number of flights, we are putting public health at risk and putting the economy first. This is not an either/or situation; it is about assessing the proportionate risks. It is about mitigating the risk of people coming into the UK with the virus while at the same time reducing the risk of a damaging impact on the economy. I am certain that testing has to be the way forward in the foreseeable future, but at the moment airports are not even permitted to trial tests on passengers.

It is incredibly important that, far from leading the world, the UK is lagging behind. Japan has been testing since April, and Germany, France, Austria and Iceland all have testing, which variously reduces the quarantine period or means that people can abandon it. In all, 30 countries have testing facilities at their airports. British companies, with their ingenuity, have been developing new rapid tests—TravelSafe Systems recently demonstrated one to me in a GP surgery in my constituency. The infrastructure is there and the testing capability is there and being advanced as we speak.

Crucially, trials would provide data. Currently, decisions are taken on the basis of modelling, which has not proved itself to be infallible during this pandemic. Real data would be much a better basis for making decisions. The Government’s position currently appears to be that if there is a risk with testing that one person has a false negative, we cannot test anybody. That is a counsel of perfection and it is wrong. We have to see testing introduced in our airports. We are talking about not a single test to abandon all quarantine, but possibly a test on arrival and a test a few days later to reduce the quarantine period.

I am sorry that the Minister finds himself responding to this debate, because I think the DFT gets this, so my message is to No. 10, the Department for Business, Energy and Industrial Strategy, the Treasury and the Department of Health and Social Care, and it is a simple one: if we want to get the economy moving, and if we want to get planes flying again, give airports permission to trial tests. Stop the UK dragging its feet; let us lead the world and set the standard to restore world travel and world trade.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I have to reduce the time limit to three minutes.

Manchester Airport and the Local Economy

Baroness Laing of Elderslie Excerpts

Thursday 2nd July 2020 Commons Chamber

[Rachel Hopkins (Luton South) (Lab)]

Thank you for giving way in this important debate. Would you agree that while airports in our regions provide many direct jobs, as you outlined, they also have an important role—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Would the hon. Lady mind saying that again, but, instead of saying “would you agree,” please say “would he agree”?

[Rachel Hopkins]

I apologise.

[Madam Deputy Speaker]

No, no. Everyone makes a mistake now and then. It is not terrible, but it is time that we managed to grasp this and get it right. I would be grateful if the hon. Lady would set an example, please.

[Rachel Hopkins]

Thank you, Madam Deputy Speaker. I appreciate that as a newer Member I am practising the ways, and I will get it right. Does my hon. Friend agree that regional airports have an important role to play, not only for all the direct jobs they provide in our areas, but for the wider jobs and services they can support, such as at Luton airport? It is in my constituency and it is the fifth largest airport in the UK. It provides £20 million a year in direct dividend to Luton Borough Council, which provides jobs and services, and £10 million a year direct to the voluntary and community charitable organisations. Does he agree on the importance of that role, too?

Exiting the European Union (Civil Aviation)

Baroness Laing of Elderslie Excerpts

Wednesday 10th June 2020 Commons Chamber

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

I apologise for my late entrance, Madam Deputy Speaker. I was sauntering over unaware that the last SI had been moved formally. The sauntering turned into a sprint when I saw the monitor.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. For the avoidance of doubt, I must say that in current circumstances it is not necessary for everyone who is taking part in a debate to be here at the beginning—just in case the House happens to be full and we want to keep the numbers down. Most unusually, therefore, the hon. Gentleman has done nothing wrong.

[Gavin Newlands]

I will take that in the spirit in which it was intended, Madam Deputy Speaker.

The SI comes at a difficult time for the aviation sector, as has been highlighted, and one that undoubtedly will see a significantly impacted and reduced sector by the time these regulations come into force. Notwithstanding the fact that Scotland is being dragged out of the EU and the transition period against our collective will, and that the regulations are therefore a matter of regret to us, it is not in our or anyone’s interest to interrupt regulations that ensure minimum insurance requirements for air carriers and aircraft operators in respect of passengers’ baggage, cargo and third parties.

With that said, in looking at the issue of insurance in aviation, perhaps we should be debating whether airlines have or can access appropriate business interruption insurance to cover situations such as the one that we face right now. If they had that insurance, we might not now be in a situation in which so many of our constituents waited inordinate lengths of time to secure a refund—indeed, many are still fighting to get one. That is why we on the SNP Benches have called on the Government to implement a travel guarantee fund, which may well still be necessary.

In my dealings with operators, they have said that the rights in respect of cancellation refunds in essence go only one way. In other words, if the holiday provider cancels a holiday, be it because of travel advice or any other reason, the consumer is entitled to a full refund, but if the passenger cancels a holiday because of Foreign and Commonwealth Office travel advice on the date of travel or the Government’s quarantine policy, only a portion of the refund, according to the terms and conditions of the bookings, is payable. Although it strays outside the scope of the regulations, does the Minister think that is fair?

The sector may not be as scaled down as we fear if the Government show the same level of support for this strategic sector as that shown by many other Governments around the world, including Scotland’s. I do not want to stray any further from the tight confines of the regulations, but other issues—including the situation facing workers at Rolls-Royce and British Airways, and right across the sector—may well be raised in much detail in my Adjournment debate, which will follow proceedings and which I am shamelessly plugging right now.

To conclude, I reiterate that despite the fact that we do not accept the basis by which the UK Government give effect to legislation that takes Scotland out of the EU, nor the transfer of discretionary powers from the Commission—an organisation accountable to the European Parliament and member states—to Ministers as individuals, we recognise the need to ensure that EU regulations are maintained on exit day, regardless of the constitutional situation. That is in the interests of consumers, passengers and businesses, and as such, we will not vote against the motion.

--- Later in debate ---

[Rachel Maclean]

I thank the hon. Gentleman for his point. That matter is outside the scope of this particular SI, but I assure him that I speak to the devolved Administrations on a regular basis, so all these concerns are being discussed in the Department and I will certainly take his point back with me.

The hon. Member for Strangford (Jim Shannon) expressed his support for aviation security, and mentioned the Bombardier plant in his constituency. We are aware of all those concerns, and are keen to work closely with him. I discuss connectivity with colleagues from Northern Ireland in my regular meetings with them. The Government recognise the importance of preparing throughout the year to ensure that we bring forward the required legislation for all possible scenarios at the end of the transition period and for Parliament to have the opportunity to scrutinise it in the normal way. This instrument, as we have seen, is essential to ensure that the legislation on aviation, which is an important part of the regulatory framework for civil aviation, continues to work effectively at the end of the transition period. I hope that the House has found this informative and that it will join me in supporting these regulations.

Question put and agreed to.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Once again, I will not suspend the House, because the last piece of business passed very swiftly and I perceive that everyone who was intending to leave the Chamber has done so and that everyone who requires to be here for the next piece of business is here, so we will move immediately on.

Income tax (charge)

Baroness Laing of Elderslie Excerpts

Tuesday 17th March 2020 Commons Chamber

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I inform the House that Mr Speaker has not selected the amendment in the name of the Leader of the Opposition.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Before I call the shadow Secretary of State, let me say that it will be obvious to the House that a great many people wish to speak this afternoon. We have a lot of time for this important debate, and I am hoping to manage it without a formal time limit because that makes for better debates. We will manage it if everyone behaves with courtesy and speaks for between seven and eight minutes, which is quite a long time. At least, it is quite a long time for everyone who is listening. [Laughter.] So if Members speak for about seven to eight minutes we will manage without a time limit, but if that does not happen I shall have to impose one.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Eleanor Laing)]

It gives me great pleasure to call Gagan Mohindra to make his maiden speech.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Eleanor Laing)]

I am very pleased to call, to make his maiden speech, Ian Levy.

--- Later in debate ---

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

Like my hon. Friend, I welcome the wide range of investments, particularly in local transport, contained in the Budget. My constituency cannot boast an extensive coastal area, any more than Milton Keynes, although the outstanding natural beauty of the Ruislip lido, London’s only beach, is one of its most prominent features. I certainly urge all those with an interest in the coastal aspects of London to take an interest in that site.

To pick up on a point that several hon. Members have made, even London, which remains a buoyant part of the United Kingdom from the perspective of economic growth, high levels of employment and high levels of productivity, seems at risk of being overlooked in one key respect. It greatly concerns me that my in-laws, who live in the Chancellor’s constituency, are set to benefit significantly from the pothole fund. My parents in south Wales will also gain because of the Barnett consequentials. Does my hon. Friend agree that it is a shame, though, that there is no plan for London to benefit from the pothole fund, as is a reasonable expectation?

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. For future reference, we are not desperately stuck for time, and therefore I have allowed the hon. Member, who is new to this House, to make his intervention, but lest anyone be misled, it was far too long.

[Ben Everitt]

The intervention may have been long, but it was well put and I appreciate it. In broad terms, my hon. Friend’s point was that we must not forget the other traditionally more productive parts of our economy. Interestingly, Milton Keynes is part of the south-east and people overlook the fact that we sit as almost the gateway to the north. A journalist from The Economist telephoned me last week and told me that Milton Keynes was the most productive part of the UK. I said, “Do you mean not including London?” and he said, “No. When you look at the OECD measures, they take in the whole of London, which includes the suburbs in Greater London, and actually, Milton Keynes comes out as more productive.” I therefore welcome any intervention that draws attention to the fact that we should be investing in the productive parts of our economy as well as levelling up the slightly less productive parts.

I warmly welcome the £500 million to roll out a fast charging network for electric vehicles over the next five years, ensuring that drivers will never be more than 30 miles from a rapid charging station. During the general election I was privileged to have a visit from the Secretary of State for Transport. We visited a charging point so that he could charge his electric car—he is very on brand, is our Transport Secretary. After a photo-op, he said, “Show me some transport infrastructure that needs a bit of investment.” I took him to junction 14 of the M1, which really does need an upgrade. We stood there, watching the traffic go past, and then we went to an island in the middle to make a little video, saying how much it needed an upgrade. Then, like life imitating art, we having stood there saying that the transport infrastructure needed an upgrade, suddenly all the world’s traffic came off the M1 and zoomed up junction 14. We were marooned on that island in the middle of an M1 slip road.

Now, our Transport Secretary, being an energetic fellow, cannot be held down for long. After a few moments he set off down the slip road, running—in fact, our Transport Secretary does not run; he scampers. Fortunately, my social media adviser was there to film the entire thing. He pulled out his camera just as our right hon. Friend was sprinting down the road, merging with the traffic in order to cross it. The video is available for parties, for a small fee.

--- Later in debate ---

[Peter Dowd]

In a moment.

It has to be said that the Government simply underestimated the challenge facing the country, but better late than never. However, many millions of people still have no financial certainty from the Government. People are worried about their livelihoods. The Government are responsible for our decaying social and physical infrastructure. They bear a huge responsibility for the parlous state of our public realm. While we will support measures to aid our economy, we will not settle for half measures, so we will look carefully at the Chancellor’s statement and at what he says later on.

The Government’s mantra of “levelling up” also completely misjudged the serious issues facing the country. The Government are not a new Government. They have been in power for 10 years. The 12 December election was not the start of year zero. They have spent 10 years systematically and consciously levelling down the country. For example, one of the Government’s fiscal rules identified 3% of GDP as an appropriate level of public sector net investment, but, Madam Deputy Speaker, if you were to look back at the last 10 years, the Government have underspent on infrastructure—far less than 3% of GDP—every single year. That was alluded to by Conservative Members.

The gap between what the Government spent and the 3% level over 10 years in office is £192 billion. That is the size of the hole the Government have spent 10 years digging, and if you were to sift through the hype, Madam Deputy Speaker, and note the fact that the Government’s headline figures on infrastructure double-count existing spending—one estimate has put the Government’s new capital spending at £143 billion, excluding depreciation—you would see that what the Government announced last week would not even fill the big hole they dug in the first place. Now, they appear to want to be congratulated on a pathetic attempt to rebuild what they spent 10 years destroying and dismantling.

The Resolution Foundation has pointed out that the UK has a very low level of Government capital stock at about 46% of GDP. That is three quarters of the advanced economy average of 63%, so the Government are levelling up from a very low base—a low base of their own creation.

Another problem with the Government’s levelling up agenda is that there is a series of one-off announcements without any coherent plan. For a start, the Government postponed their national infrastructure strategy. Again, they have cut skills funding in recent years. By the end of the last decade, spending on apprenticeships and work-based learning had fallen by a quarter since 2009-10 in real terms. That is according to the Institute for Fiscal Studies.

The Budget was disappointing in relation to climate action. The environmental justice commission set up by the Institute for Public Policy Research said that £33 billion of green investment was needed a year to get to the Government’s weak target of net zero emissions by 2050. But there is £27 billion for road building, although nothing for renewable energy sources such as wind and solar. We have heard excuses over the years that they inherited a poor economy, but they have been in power for 10 years and the responsibility for the poor performance of our economy in the past 10 years lies squarely at the Government’s door. They did not believe that public investment could boost the economy. In a speech in 2009, George Osborne said that

“fiscal policy is more or less powerless to affect output”.

He was wrong about that. Let us consider the statement that a

“large planned increase in public investment should boost potential output”.—[Official Report, 11 March 2020; Vol. 673, c. 282.]

Who said those words? It was the Chancellor, when citing the Office for Budget Responsibility. Other countries took a different approach from us and did invest, and they have recovered more quickly. We have had the slowest recovery for a century in this country, and we have had the Bank of England’s chief economist Andy Haldane describing a pay “disaster”.

On that point, let me deal with the issue of the so-called “jobs miracle”, so beloved of Conservative Members. What they fail to mention is that low pay, zero-hours contracts and insecure working conditions bankroll that act of God, meaning that 8 million people in working households are living in poverty. According to the Joseph Rowntree Foundation’s annual poverty report, seven in 10 children in poverty are now in a working family. I am not sure that God would like his name associated with that outcome.

The Office for National Statistics is reporting falling manufacturing output and zero growth in the three months to January because of “widespread weakness”—and that was before the outbreak of the coronavirus. The Government could have started in the Budget to invest in our public services, as well as our infrastructure, but they chose not to do so. As the IFS said last week, after this Budget spending on day-to-day services will still be well below what it was in 2010-11 per head—so much for levelling up. What we have is the Government putting off tackling areas in our economy where bold decisions are needed. The economic crisis facing the country as a result of the coronavirus simply proves their lack of foresight and planning. They have left our public services so depleted of capacity that many fear they will struggle to cope.

We have before us the so-called “Get it done” Chancellor, but he is more like the put-it-off Chancellor. He even put off his announcement today. What about social care—is he getting that done? No, he is having another review. He has put it off. What about the Green Book—is he getting that done? No, he is having another review. He is putting that off. What about the fiscal rules framework—is he getting it done? No, he is having another review. He is putting it off. What about the national investment plan—is he getting it done? No, he is having another review. He is putting it off. He cannot even decide when he is going to have a comprehensive spending review. In a footnote on page 30 of the Red Book, which I know all Conservative Members will have assiduously read, he says that he will

“keep the timing of the CSR under review”.

I hope you will bear with me here, Madam Deputy Speaker. In other words, he is even putting off the timing of the review of the review of the comprehensive review. So much for getting things done.

There is a great deal of not getting things done going on in No. 10 at the moment, contrary to the belief of the backslappers opposite. The word “review” is mentioned no fewer than 117 times in the Red Book, which has only 120 pages in it, including the blank ones. The Chancellor reminds me of the character in one of the less well-known Monty Python sketches: the self-satisfied president of the royal society for putting things on top of other things; we have a meaningless body of men gathered together for no good reason—that is the Cabinet. No wonder we have the lowest productivity levels of our G7 partners, and this is getting worse because the man in charge of getting things done is far too busy putting things off.

Let me give the Chancellor a word of advice. [Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. The House is being unfair to the hon. Gentleman. There is too much noise going on, and we must hear him.

[Peter Dowd]

Well, they are Tories.

Let me give the Chancellor a word of advice: I suggest that, for the sake of the country, he stops putting things off and gets things done by pulling his finger out.

[The Chief Secretary to the Treasury (Steve Barclay)]

I thank the hon. Member for Bootle (Peter Dowd) for his warm welcome to me in my new role. I join him in paying tribute to the number of excellent maiden speeches that we have heard today. The first was by my hon. Friend the Member for South West Hertfordshire (Mr Mohindra). It was fitting that he paid tribute to his predecessor David Gauke, who was not only respected across the House but very much liked and respected within the Treasury as an institution.

In an excellent speech, my hon. Friend the Member for Blyth Valley (Ian Levy) spoke about his personal experience of working for two decades in our NHS. He must be particularly proud of everything that the NHS is now doing as we face the challenges ahead.

The hon. Member for Liverpool, West Derby (Ian Byrne) gave a strong speech about the need for bold action on covid-19. I assure him that the Chancellor will be true to his word when he says that we will do everything needed in response to the situation. The hon. Gentleman’s speech shows that he will be a valuable colleague representing Liverpool, together with his Front-Bench colleagues.

In a first-class speech, my hon. Friend the Member for Bolton North East (Mark Logan) said that this great House exists exactly for times like these. I could not agree with him more. He will be a fantastic addition to the House, and in particular his experience from his time in the Foreign Office will be valuable in the weeks and months ahead.

My hon. Friend the Member for Derbyshire Dales (Miss Dines) pointed out that she is the first woman to represent her constituency, just as you, Madam Deputy Speaker, were the first woman to chair a Budget. My hon. Friend invited my right hon. Friend the Prime Minister to join in with the Shrovetide football next year. I appreciate that my right hon. Friend the Prime Minister has quite a lot on, but knowing my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) as I do, I am sure that there will be colleagues in the House keen to partake of any football with my hon. Friend the Member for Derbyshire Dales.

The hon. Member for Luton South (Rachel Hopkins) gave an excellent speech about her commitment to her constituency and highlighted issues such as housing, railway electrification, bus routes and the climate emergency. It is clear from the range of contributions from new Members that they will all contribute considerably to the House in the weeks and months ahead.

It is no surprise to me, in closing the debate on the Budget, that many of the contributions from Members from all parties have focused less on the text from last week and more on the national challenge of our economic response to coronavirus. Both my right hon. Friend the Secretary of State for Transport and the shadow Secretary of State, the hon. Member for Middlesbrough (Andy McDonald), struck a constructive tone in their opening remarks, recognising their collaboration in meeting the challenge. Many other Secretaries of State have been similarly collaborating with their counterparts. On behalf of the Government, I should say that their approach has been much appreciated.

I very much agree with the hon. Member for Middlesbrough that our focus today is, as he said, primarily on the challenge, nationally and internationally, of fighting the virus. He was also right to recognise that it is no fault of the Chancellor that much has happened since last week and that since the Budget we have needed to move further. My right hon. Friend the Chancellor will update the House shortly and will respond to the legitimate point that the hon. Gentleman raised in his opening remarks.

At the Budget, my right hon. Friend the Chancellor said that he would do

“everything we can to keep this country, and our people, healthy and financially secure.”—[Official Report, 11 March 2020; Vol. 673, c. 278.]

At that time, less than a week ago, that involved a £12 billion temporary and targeted set of measures to respond to coronavirus, supporting public services, individuals and businesses. My right hon. Friend will shortly update the House on the further measures required to provide a comprehensive, co-ordinated and coherent response to the serious and evolving situation that we face.

As my right hon. Friend has said, we will do whatever it takes to give the British people the tools to get through this challenge. I can also announce that the Government are postponing the reforms to the off-payroll working rules IR35 from April 2020 to 6 April 2021. The Government will therefore not move the original resolution tonight, but will shortly table an additional resolution confirming that we will reintroduce the off-payroll working rules provisions by amending the Bill, with a commencement date of the 6 April 2021. This is a deferral in response to the ongoing spread of covid-19 to help businesses and individuals. This is a deferral, not a cancellation, and the Government remain committed to reintroducing this policy to ensure that people who are working like employees, but through their own limited company, pay broadly the same tax as those employed directly.

Let me turn in the remaining time to a number of key measures within the Budget, which, for understandable reasons, have perhaps received less focus in the course of the debate in light of recent events. [Interruption.] In particular, infrastructure links people to jobs, delivers products to markets and underpins supply chains and, indeed, supports domestic and international trade. Better roads, better rail and better internet connections enable businesses and individuals to work more quickly, cheaply and efficiently. While more quality infrastructure boosts social well-being, it means less time stuck on motorways—[Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. The House is too noisy. As I said with regard to Mr Dowd, the House must listen to the Minister.

[Steve Barclay]

Infrastructure is an issue that concerns all Members of the House. We are committed in this Budget to boosting productivity and to levelling up opportunity across all regions within our United Kingdom. Indeed, my right hon. Friend the Chancellor set out half a trillion pounds of investment in our public sector, and the Government will bring those plans together in the forthcoming national infrastructure strategy. We already know a lot of the details. For example, there is the commitment to the Northern Powerhouse Rail to enable faster more frequent services between northern cities. In February, the Prime Minister announced that we will proceed with High Speed 2, and last Wednesday, the Chancellor confirmed a £27 billion investment in strategic roads and motorways, the UK’s biggest ever outlay.

At the same time, we are investing £5 billion to support the roll-out of gigabit-capable broadband, starting with rural communities that have felt excluded up to now, binding all parts of the country closer together in the virtual realm and connecting global Britain to the global marketplace.

Alongside the big ticket eye-catching projects, the Budget also focused on meeting the most pressing local needs, whether that is the £2.5 billion for potholes, the £1.2 billion to support local transport infrastructures or, indeed, the funding for bus routes, trunk roads, cycle paths, trams, and park-and-ride schemes that all have the potential to make a transformative difference at a local level. Together it represents an infrastructure transformation that brings faster speeds and greater capacity and that would breathe new life into communities across our United Kingdom.

This transformation is not only about making every town and city more productive, but about recognising their uniqueness of character. Each place in this country has its own quirks and curiosities, traditions and traits that people depend on and draw strength from. Levelling up is about respecting and retaining those brilliant characteristics and making sure that each town keeps hold of its civic soul, while helping every region and nation of the United Kingdom make of its best. The Government know that civic pride and regional identity matter, and we want to bring about a strong and vibrant connected community where people choose to live and work. It is for that reason that my right hon. Friend the Chancellor set out in the Budget the largest affordable homes programme in a decade, with £12 billion in additional funding to support home ownership. My right hon. Friend the Secretary of State for Housing, Communities and Local Government has already laid out our proposals to bring Britain’s planning system into the 21st century.

Although this is the end of the Budget debate from last week, many of the speeches have looked forward to the challenges ahead posed by covid-19 and its impact on our health, our businesses and our resolve. Much has changed over the past week and people are worried and their livelihoods are at risk. That is why my right hon. Friend the Chancellor will update the House shortly on the further measures that we intend to take. I commend this Budget to the House.

Question put and agreed to.

Resolved,

That income tax is charged for the tax year 2020-21.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

The Deputy Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3))

[Madam Deputy Speaker (Dame Eleanor Laing)]

I must inform the House that for the purposes of Standing Order 83U and on the basis of material put before him, Mr Speaker has certified that in his opinion motion No. 2 on income tax main rates relates to England, Wales and Northern Ireland, and is within devolved legislative competence. If the House should decide to divide on this motion, it will be subject to double majority voting.



2. Income tax (main rates)

Resolved,

That for the tax year 2020-21 the main rates of income tax are as follows—

(a) the basic rate is 20%,

(b) the higher rate is 40%, and

(c) the additional rate is 45%.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

3. Income tax (default and savings rates)

Resolved,

That—

(1) For the tax year 2020-21 the default rates of income tax are as follows—

(a) the default basic rate is 20%,

(b) the default higher rate is 40%, and

(c) the default additional rate is 45%.

(2) For the tax year 2020-21 the savings rates of income tax are as follows—

(a) the savings basic rate is 20%,

(b) the savings higher rate is 40%, and

(c) the savings additional rate is 45%.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

4. Income tax (starting rate limit for savings)

Resolved,

That section 21 of the Income Tax Act 2007 (indexation) does not apply in relation to the starting rate limit for savings for the tax year 2020-21 (so that the starting rate limit for savings remains at £5,000 for that tax year).

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

5. Main rate of corporation tax for financial year 2020

Resolved,

That—

(1) For the financial year 2020 the main rate of corporation tax is 19%.

(2) Accordingly, omit section 7(2) of the Finance (No.2) Act 2015 (which is superseded by the provision made by paragraph (1) of this Resolution).

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

6. Corporation tax (charge and main rate for financial year 2021)

Resolved,

That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made—

(a) for corporation tax to be charged for the financial year 2021, and

(b) for the main rate of corporation tax for that year to be 19%.

8. Taxable benefits (appropriate percentage for a car: tax year 2020-21 onwards)

Resolved,

That—

(1) Chapter 6 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (taxable benefits: cars etc) is amended as follows.

(2) In section 136 (car with a CO2 emissions figure: post- September 1999 registration)—

(a) in subsection (2A)—

(i) after “figure” insert “in a case where the car is first registered before 6 April 2020”,

(ii) for “light-duty” substitute “light”, and

(iii) for “an EC certificate of conformity” substitute “the EC certificate of conformity or UK approval certificate”, and

(b) after subsection (2A) insert—

“(2B) For the purpose of determining the car’s CO2 emissions figure in a case where the car is first registered on or after 6 April 2020, ignore any values specified in the EC certificate of conformity or UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values.”

(3) In section 137 (car with a CO2 emissions figure: bi-fuel cars)—

(a) in subsection (2A)—

(i) after “figure” insert “in a case where the car is first registered before 6 April 2020”,

(ii) for “light-duty” substitute “light”, and

(iii) for “an EC certificate of conformity” substitute “the EC certificate of conformity or UK approval certificate”, and

(b) after subsection (2A) insert—

“(2B) For the purpose of determining the car’s CO2 emissions figure in a case where the car is first registered on or after 6 April 2020, ignore any values specified in the EC certificate of conformity or UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values.”

(4) In section 139 (car with a CO2 emissions figure)—

(a) for subsection (2) substitute—

“(2) For the purposes of subsection (1) and the table—

(a) if a CO2 emissions figure is not a whole number, round it down to the nearest whole number, and

(b) if an electric range figure is not a whole number, round it up to the nearest whole number.”, and

(b) after subsection (5) insert—

“(5A) For the purpose of determining the electric range figure for a car first registered before 6 April 2020, ignore any WLTP (worldwide harmonised light vehicle test procedures) values specified in an EC certificate of conformity, an EC type approval certificate or a UK approval certificate.

(5B) For the purpose of determining the electric range figure for a car first registered on or after 6 April 2020, ignore any values specified in an EC certificate of conformity, an EC type approval certificate or a UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values.”

(5) The amendments made by this Resolution have effect for the tax year 2020-21 and subsequent tax years.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

9. Taxable benefits (appropriate percentage for a car: tax year 2020-21 only)

Resolved,

That—

(1) For the tax year 2020-21, Chapter 6 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (taxable benefits: cars etc) has effect with the following modifications.

(2) In section 139 (car with a CO2 emissions figure: the appropriate percentage)—

(a) in the table in subsection (1), in the second column of the entry for a car with a CO2 emissions figure of 0, for “2%” substitute “0%”, and (b) in subsection (7) before paragraph (a) insert—

“(za) section 139A (recently registered cars),”.

(3) After section 139 insert—

“139A Section 139: recently registered car with CO2 emissions figure

In its application in relation to a car that is first registered on or after 6 April 2020, section 139 has effect as if—

for the table in subsection (1) there were substituted—