Points of Order

Debate between Baroness Laing of Elderslie and Harriett Baldwin

Tuesday 19th December 2023 Commons Chamber

[Madam Deputy Speaker]

I am grateful to the hon. Gentleman for giving me notice of his point of order. As Mr Speaker has said many times from this Chair and I have repeated, the accuracy of Ministers’ statements in the House is not a matter for the Chair. The interpretation of statistics is a matter of interpretation and it is very often the case that one Member views a statistic from one angle and another Member views the same statistic from a completely different angle. The hon. Gentleman has made his point very clearly and I am sure that those on the Treasury Bench will have heard it.

[Harriett Baldwin (West Worcestershire) (Con)]

Further to that point of order, Madam Deputy Speaker. It may be helpful to the House if I draw its attention once again to paragraph 3.13 of the autumn statement document, which outlines exactly how that £1,000 tax cut is calculated.

[Madam Deputy Speaker]

I thank the hon. Lady for her point of order, which I think proves what I have just said. The hon. Gentleman and the hon. Lady are looking at the same statistics and interpreting them in slightly different ways. That is what politics is about; that is what this Chamber is about. It is about having a discussion from one side to the other. Thank you very much.

Autumn Statement

Debate between Baroness Laing of Elderslie and Harriett Baldwin

Wednesday 22nd November 2023 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Before I call the Chairman of the Treasury Committee to ask a question, I want to make it clear to the House, because there is some confusion, that this is not the procedure we use for a Budget. This is the autumn statement; it is, therefore, a statement. Right now, we are taking questions to the Chancellor of the Exchequer. Once that has concluded, we will go on to the debate. I have a list of people who want to make speeches—there will be some overlap and I am paying attention to that.

[Harriett Baldwin (West Worcestershire) (Con)]

What a difference a year makes. We have seen a reduction in the rate of inflation from 11.1% this time last year down to 4.6% this month, and we heard yesterday from the Governor of the Bank of England that he expects inflation to return to its target over the course of the next year or so. I was interested to hear that there are 110 measures in the announcement today which will drive growth in the UK economy. I welcome the fact that the Office for Budget Responsibility is now forecasting that this year we will see growth in the UK economy, in contrast to its forecast this time last year of a recession. The Committee looks forward to examining the 110 growth measures in detail next week, when we hear from both the OBR and the Chancellor himself. Can the Chancellor tell the House overall how much his measures will improve growth and how much they will help to drive down inflation over the course of next year?

Autumn Statement Resolutions

Debate between Baroness Laing of Elderslie and Harriett Baldwin

Wednesday 22nd November 2023 Commons Chamber

[Harriett Baldwin (West Worcestershire) (Con)]

On a point of order, Madam Deputy Speaker. Is it appropriate for the Opposition spokesman to be talking about measures that were actually not announced today?

[Madam Deputy Speaker (Dame Eleanor Laing)]

That is a perfectly reasonable point of order and I am grateful to the hon. Lady for raising it. I was listening carefully to the hon. Gentleman’s speech and had begun to think to myself, “That’s strange. The hon. Gentleman is addressing a point that was not in the Chancellor’s statement.” However, I have not stopped him, because—[Interruption.] I do not need any help, thank you very much. I have not stopped the hon. Gentleman because this is a very wide-ranging debate, and I have made the assumption that he was using an example of something that the Government decided not to do. Possibly he was about to state his agreement with the Government, or something along those lines. I was waiting to hear what he had to say.

--- Later in debate ---

[Harriett Baldwin]

The right hon. Gentleman might think the UK should join the euro, but I shall fight strongly against him on that campaign.

I want to return to the theme of what a difference a year has made in terms of the public finances. It is remarkable to see how the priorities in the autumn statement are being delivered. First, that is seen in reducing debt, something all on this side of the House are keen on otherwise we are just passing on the costs to our children and grandchildren. Last year’s forecast was 94.6%, which still feels uncomfortably high to me, and that is why I welcome that in today’s autumn statement debt is falling to 92.7% in the same year. I encourage the Chancellor to keep on moving in that direction.

The challenge now is to support growth, and non-inflationary growth above all. The Chancellor announced 110 measures. I have gone through the small print of the documentation, and I do not think I have got to the bottom of all 110 of them yet, but I hope we shall do so when we take evidence from him, the OBR and independent economists next week. I welcome that the OBR is revising growth up this year, however, and that the measures announced in the statement were taken through the lens of making sure inflation continues to decline.

Cutting tax is also an important priority because it rewards hard work, and it is good that earnings are again growing faster than inflation, which means households up and down the country are seeing disposable incomes rise once again.

We all know that work is the best route out of poverty. I cannot stress how important the announcement on the national living wage is, because it means that those working full time on the national living wage now have an income of over £22,000, taking them over the poverty line. With so many vacancies in our economy, that will give more people the opportunity to work their way out of poverty. So I thank the Chancellor for that reform, and for the fact that now the income of the lowest paid comes predominantly from work, whereas in 2010 the income of those on the lowest pay was primarily from welfare. We can be proud of that real shift.

I was pleased to hear measures about the grid in the autumn statement. Building sustainable domestic energy will require improving our grid, and building more renewables and new nuclear and domestic oil and gas.

I was very pleased to see the measures backing British businesses as well, because ultimately it is British businesses that will help our country grow and tackle the important productivity challenge and deliver more jobs and prosperity for the British people.

I look forward to encouraging the Chancellor to think about simplifying even more. There were some simplifications that I welcome in today’s autumn statement, particularly in terms of national insurance for the self-employed. I look forward to seeing the detail of the measures that will help our constituents invest their savings and get better rewarded for their pensions by being able to access advice more easily. Measures the Chancellor can take in terms of the advice guidance boundary will help enormously.

I welcome, too, the funding for a world class education. Schools in my constituency will welcome that record level of per pupil funding in real terms.

In conclusion, I am delighted to see many of these measures and look forward to scrutinising more of them in detail, and I am particularly pleased that the Chancellor did not heed the Opposition’s advice to borrow £28 billion more every year.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call Scottish National party spokesman Drew Hendry.

Budget Resolutions and Economic Situation

Debate between Baroness Laing of Elderslie and Harriett Baldwin

Wednesday 15th March 2023 Commons Chamber

[Harriett Baldwin (West Worcestershire) (Con)]

Thank you very much, Madam Deputy Speaker; it is wonderful to have you back in the Chair.

After that torrent of socialist declinism from the Opposition, I want to start by saying how lucky we are to have a lucky Chancellor. He has been lucky this winter because the weather has been a lot warmer than it was when he stood here in November, and as a result the price of energy has come down. But he has also made some of his own luck. Thanks to the steps that he took, the financial markets have stabilised and he has had to pay less in interest than he was expecting to—about £4 billion.

It is hard to believe that this is the first official Budget we have had in this Chamber since October 2021. A lot of things have changed since then. Our world-leading NHS vaccination roll-out has ended the severe contagion of the pandemic, but Putin’s evil and illegal invasion of Ukraine has sparked the worst inflation for 40 years. The challenges that those events have placed on the public finances have been extraordinary, and the spending cannot all be borrowed and passed on to the next generation. That is why I welcome today’s news that the Chancellor is forecasting 3% lower debt in years to come.

The Treasury Committee welcomes the fact that the Budget is accompanied by forecasts from the Office for Budget Responsibility. We think it is important that that stands alongside a Budget. It is a key part of the independent framework for Chancellors and we will be taking evidence from the OBR next week on the underlying assumptions behind its forecasts.

What has changed most perniciously since the last Budget in October 2021 is inflation. It was only just beginning to rear its ugly head back then, and as a member of the Treasury Committee throughout this entire period, I have been like Cassandra in highlighting some of the inflationary risks that we faced. Far from being transitory, as the independent Bank of England hoped, inflation has become quite deeply embedded in the UK economy in wage inflation and in expectations. That is why I welcome the news today that the OBR is expecting inflation to go back down to 2.9% by the end of this year.

Inflation is the worst tax that we have on our economy. It is a tax paid particularly by the very poorest, who spend the highest proportion of their income on food and energy, so the Chancellor must not listen to the siren voices urging him to increase or abandon the inflation target that he gives to the independent Bank of England. The top priority for our economy this year must be to at least halve inflation.

It is to be welcomed that in his Budget today, the Chancellor has tried to focus on measures that help to achieve that inflation target. The extension of the fuel duty freeze and the cap on household energy costs will all help to keep inflation almost 1% lower than it would otherwise have been. These might not feel like giveaways but they do cost money against the do-nothing counterfactual option. It is good to see that they are being implemented because of better public finances, and that these tax cuts can be seen as consistent with the Government’s second priority of reducing debt.

In our recent Treasury Committee report, we called on the Chancellor to think again about the fiction that lies behind fuel duty forecasts. Every year, they get embedded in the fiscal outlook, and every year Chancellors realise that it is not an ideal time to raise fuel duty. I welcome the fact that the fuel duty cut has been extended for another year and that, once again, the fiction has not been followed through into reality, but we need to think long and hard about why a tax that is inflationary, that harms growth and that is heading the way of the dodo, as we all move to electric cars, is still in the forecast numbers.

The third economic policy of growing the economy in a non-inflationary way will involve all of us working more productively. The Stride review, named after my illustrious predecessor, has rightly focused on this key question. Many helpful measures have been announced in today’s Budget. With over 1 million job vacancies in our economy, we are still, as a country, working fewer hours than we were before the pandemic. Unlocking that human and economic potential is key to strong, productive, non-inflationary growth.

The steps that have been announced today on childcare and on pensions will help to ease the labour shortages that are pushing up wage demands and help to counter those inflationary pressures. The Treasury Committee looks forward to exploring all these issues in detail with our expert witnesses and with the Chancellor in our next evidence sessions, because the details really matter.

The Treasury Committee has highlighted the new benefit cliff edges that my right hon. Friend introduced last November, when he announced that, next winter, only low-paid households will receive the £900 help with their cost of living. We asked for it to be spread over six instalments to reduce the risk of cliff edges. We are sorry to hear that a somewhat clunky computer system means there will be three instalments instead. We worry that, if a person loses their job just after the qualifying date, they will miss out on a lot of help.

There are still cliff edges, taper rates and disincentives to work galore in our benefit and tax systems, whether they are around free school meals, childcare limits, child benefit tapers, tax-free childcare cliff edges and the withdrawal of the tax-free allowance. The very welcome measures announced today on all those fronts, and the pension cap abolition, will all be studied in detail by the Committee. We plan to work closely with our colleagues on the Work and Pensions Committee to find recommendations to smooth some of those cliff edges and distortions.

The Chancellor can see how these cliff edges are disincentives to working more hours, and every hour of work should pay. We have made huge progress towards that today. At any stage in life, and at any age, people should be rewarded more the more they work.

Speaking briefly as a constituency MP, I welcome the help for swimming pools, for pubs, for levelling up, for Malvern theatres and for childcare providers and nurseries. There is a lot of very good news for them today.

The Chancellor has had some luck since November and he has shared that luck with UK households today. He has a clear intention to bring down inflation, to grow the economy and to reduce debt. May good luck continue to follow him, and may the extra billions of pounds he has secured for the defence budget help our Ukrainian friends have good luck and to beat back the Russian invaders. Slava Ukraini.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the SNP spokesman.

Sri Lanka

Debate between Baroness Laing of Elderslie and Harriett Baldwin

Wednesday 9th November 2022 Commons Chamber

[Madam Deputy Speaker]

Order. Some 397 votes were cast, none of which were invalid. The counting went to four rounds. There were 375 active votes in the final round, excluding those ballot papers whose preferences had been exhausted. The quota to be reached was therefore 188 votes and the person elected Chair, with 204 votes, is Harriett Baldwin. She will take up her post immediately, and I congratulate her on her election. The results of the count under the alternative vote system will be made available as soon as possible in the Vote Office and published on the internet.

[Harriett Baldwin (West Worcestershire) (Con)]

On a point of order, Madam Deputy Speaker, I put on record my thanks to all the Clerks who organised today’s ballot and pay tribute to the wonderful campaign that my esteemed colleagues ran for this Committee chairmanship. I have genuinely enjoyed the campaign and getting to know their priorities better, and I thank them so much for the campaign’s having been held in such a polite and friendly fashion. I also pay tribute to my predecessor, my right hon. Friend the Member for Central Devon (Mel Stride), who has chaired the Committee so ably over the past three years; it has been a pleasure to serve under his chairmanship and I feel truly honoured to be following in his footsteps. Lastly, I thank everyone who voted in today’s election, whether they voted for me or not. On our Committee we seek to serve Members, and we look forward to hearing from all colleagues on the issues that matter to them the most.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I reiterate the congratulations of the House to the hon. Lady.

UN International Day of Education

Debate between Baroness Laing of Elderslie and Harriett Baldwin

Thursday 28th January 2021 Commons Chamber

[Harriett Baldwin (West Worcestershire) (Con)]

I beg to move,

That this House has considered the UN International Day of Education.

I thank the Backbench Business Committee for scheduling this important debate so close to the United Nations International Day of Education. After today’s moving debate on Holocaust Memorial Day, I add my tributes to the Holocaust Educational Trust for its crucial work in taking sixth formers to visit Auschwitz-Birkenau. The visit I undertook with students from Hanley Castle High School will remain forever etched in my memory and, importantly, in their young memories. It is vital that such work continues.

I never thought that we would be marking UN International Day of Education at a time when our schools in the UK are closed to so many children. I share the Government’s aspiration to reopen our schools as soon as possible, and would welcome an even earlier date than 8 March, by reopening classes in a staged way, even for part of the day, with reception to year 2 back first, and gradually adding additional classes. Let us also make the most of fresh air and exercise, like the wonderful Forest Schools that so many of the West Worcestershire primary schools enjoy. I welcome the important investment that the Government are making in extra support and catch-up tuition, to help each child make the most of their potential.

Around the world, even before the pandemic, some 258 million children and adolescents were out of school. The majority of them were girls. More than half of 10-year-olds in low and middle-income countries were not learning even to read a simple text. As a result of the pandemic, 1.3 billion children around the world have seen their schools close at some point in the past 12 months. Let me quote:

“Twelve years of full-time education is not the only answer to the world’s problems. It is not a panacea, but it is not far short.”

Those are not my words; those are the words of our Prime Minister when he was Foreign Secretary. He knows that in many of the poorest, most conflict-torn countries, it is mainly girls who drop out of school early, who lag behind boys in literacy levels, and who have children when they too are still children. The Prime Minister continued:

“Female education is the universal spanner,”.

He said it is the “Swiss army knife” that helps tackle so many of the world’s problems, and that

“the best and biggest thing that we can do for the world, is to make sure that every girl gets 12 years of full-time education.”

It is wonderful as we begin 2021 and the UK presides over the G7 that girls’ education has made it on to the agenda. My wonderful colleague, my hon. Friend the Member for Maidstone and The Weald (Mrs Grant), has been appointed the Prime Minister’s envoy. The UK’s G7 goal was to secure a commitment to getting 40 million more girls into education and 20 million more girls reading by the age of 10. Here in the UK we are rightly concerned about the importance of laptops for remote education, but we should also not forget the importance of low-tech and simple things, such as exercise books, pencils, chalk, and text books, as well as older technology such as radio, for children around the world who are also having to undergo remote education.

It is wonderful that later in 2021, the UK and Kenya have agreed to co-host the replenishment of the global partnership for education, which is the only multilateral organisation that crowds in funding from richer countries to help education budgets in very poor countries. I wholly endorse the leadership that the Prime Minister and the Government are showing on education globally. A better educated world will be a healthier, more peaceful and more prosperous one, and that surely benefits us all. But that leadership will need bolstering with money from the UK aid budget.

The Minister will know that I oppose the temporary reduction of the overseas development assistance target, as it not only breaks our manifesto commitment, but will mean that there is less money available to tackle hunger, deliver vaccines, educate children in poor countries and make sure they have clean water. I welcome the commitment that the UK has made to the Vaccine Alliance, and the commitment that we have made to doubling international climate finance, but can the Minister reassure the House today that the cut to the aid budget is not going to affect the money spent on education for the world’s poorest children? Will our contribution to the replenishment of the Global Partnership for Education be at least as generous and ambitious as before? Will as many girls as before be helped to remain in school through projects such as the Girls’ Education Challenge? Will she consider launching more UK Aid Match projects so that we can all donate more and have it matched by UK aid? What progress is she making as Minister for the European Neighbourhood and the Americas in encouraging our friends in the US to step up and spend more on global education under the new Biden Administration?

With new vaccines coming on line, we are starting the process of building back better after this awful pandemic, and of levelling up our own country as we recover. We also have a key role to play in building back and levelling up the world by ensuring that every child—both in our country and around the world—gets a quality education, no matter how poor the country into which they are born. That will be the most important way in which we can build a stronger, more resilient and healthier world for our children.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Members will be aware that there is to be a time limit of three minutes per speech for Back Benchers. I know that that is very short, but I must explain that if everybody takes three minutes, not everyone who is on the list will get in. If Members were able to take just a little bit less than three minutes and share out the time equally, everybody would have the chance to speak.

Flood Defences: Tenbury Wells

Debate between Baroness Laing of Elderslie and Harriett Baldwin

Wednesday 3rd June 2020 Commons Chamber

[Harriett Baldwin]

I very much appreciate my hon. Friend and neighbour’s support for the campaign.

The Tenbury Wells scheme is feasible and deliverable, incorporating some wall around the church and a bund around the burgage and in other key places. Under the existing cost-benefit rules, the scheme would attract only about £1 million of flood defence grant in aid. Sadly, it was not built in time for the floods that struck this February, which were the worst for 13 years. The community did a remarkable job. They helped everyone affected, as did the local councils—the town, district and county councils—the local emergency services and the highways and waste collection teams. They were all outstanding, but the fact remains that 190 homes and businesses were again damaged and many closed, including the newly opened post office. As there was no time to repair the flood damage before the lockdown started, some people have had to spend the lockdown in flood-damaged homes. Central parts of the community’s fabric were also badly damaged, including the famous Chinese gothic pump rooms where the town council meets, the town’s swimming pool and the beautiful Tenbury Regal Theatre. In fact, the only thing that was not damaged was the amazing, resilient spirit of the town.

So we need to act. This wonderful market town serves a rural area for miles in every direction. It cannot help the fact that hundreds of years ago it grew up on a floodplain. If we want Tenbury Wells to thrive for hundreds of years to come—and we do—it needs a permanent flood defence. The temporary barriers that are deployed in Bewdley will not suit Tenbury Wells because the flood waters rise too suddenly and unpredictably. The Environment Agency says in its own report that the variable terrain, combined with the flood depth and the length of barrier required, mean that temporary barriers would not provide an effective or robust solution. Of course, the cost has risen to nearer £5 million, although I am sure that, just as in Severn Stoke and Callow End, local farmers and builders would be happy to help to bring down the cost of the booms. Because Tenbury Wells is a small town of fewer than 4,000 inhabitants, it will never meet the national formula, which puts so much weight on houses protected. It is a formula that cannot capture the key role that this market town plays in the much wider area around it.

So Minister, let us agree a plan of action tonight. The Environment Agency should start a consultation on its already drawn-up plans. They have been widely welcomed, but there are those whose objections and suggestions must be heard. And let us do it in a socially distant way—remotely, even: by post and internet if need be. I also welcome the interest shown in the scheme by the Woodland Trust, which has some good ideas about building leaky dams at the source of the Teme and planting trees along the catchment—the kind of natural upstream solutions that will be the kind of public goods that the Agriculture Bill will enable farmers to be paid for. The evidence is that, while these measures will not stop the flooding, they can reduce the peak of flood events by about 20%, although they would clearly only complement a permanent flood defence.

Let us bring together all the sources of funding: the county council capital budget, the local flood resilience levy fund and the £120 million in capital announced for schemes that do not meet the formula. I would welcome some clarification from the Minister this evening on how to bid for that fund. This is something that the town itself would be prepared to contribute to, and the Heritage Lottery Fund is going to be approached to help to protect the town’s heritage. There will be section 106 money from the new housing in the town and, of course, that help in kind from local farmers and builders. The Environment Agency does a wonderful job of supporting this process, and then we can put the scheme in for planning permission—this year, I hope. Once that process is complete, I believe that it is ambitious but feasible for the scheme to be shovel-ready next year. So Minister, I urge you to ask your officials—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I cannot let the hon. Lady do that twice. I have let her do it once. We have a lot of new Members who, during this unusual time, seem to think that the normal procedures, courtesies and rules should be flouted, but the hon. Lady knows how to behave in the Chamber. She cannot address the Minister directly. She knows she cannot do that, and I implore her please to get it right so that I can use her as an example for Members who do not behave so well.

[Harriett Baldwin]

Thank you so much for that guidance, Madam Deputy Speaker. As you will recall, it has been some time since I held an Adjournment debate and I am grateful for the refresher course on etiquette. Through you, Madam Deputy Speaker, I urge the Minister to ask her officials to back this plan, and to back a solution that has eluded all her ministerial predecessors so that she can make her illustrious mark on the hundreds of years of history of this wonderful market town. Then, whether it is at a future mistletoe festival, Applefest celebration or Tenbury agricultural show, you, Madam Deputy Speaker, and through you the Minister will be given a garlanded welcome for the rest of your lives, whenever you choose to visit the beautiful town of Tenbury Wells.

Sudan

Debate between Baroness Laing of Elderslie and Harriett Baldwin

Thursday 13th June 2019 Commons Chamber

[Harriett Baldwin]

I agree with the hon. Gentleman. A few days ago, I met some of the leading non-governmental organisations that are delivering humanitarian assistance, and access is continuing to allow them to do that. Obviously one has to put on record one’s admiration for the bravery of the people involved. As far as a delegation is concerned, I understand that commercial flights from both Ethiopian Airlines and Turkish Airlines have now restarted. We hope that the situation will remain peaceful enough on the ground to enable us to update our travel advice, but at the moment the travel advice for British citizens is for essential travel only.

[Madam Deputy Speaker (Dame Eleanor Laing)]

And the prize for patience and perseverance, as ever, goes to Jim Shannon.

Commonwealth Day

Debate between Baroness Laing of Elderslie and Harriett Baldwin

Monday 11th March 2019 Commons Chamber

[Madam Deputy Speaker]

I beg your pardon. I was distracted by another matter. I have failed to call the Minister, to whom I apologise.

[Harriett Baldwin]

Thank you, Madam Deputy Speaker, though I cannot imagine what could be distracting you from this celebration.

I am grateful to the shadow Minister for her comments about the values of the Commonwealth and the power of this association of friendly countries to share the values that she rightly stands up for. I will take her points in turn. I can give some great examples of how the solidarity of the 53 countries can lead to progress on the important topics she raises.

On human rights, she will be aware that not only the Commonwealth secretariat but the associations work closely with member states to raise standards on human rights, including by supporting countries going through the universal periodic review process. I am sure that she knows that, using UK funding, the Equality and Justice Alliance is working to create a fairer, more equal and more inclusive Commonwealth, not only for women and girls, but for the LGBT community, through civil society capacity building. It is working on a project to create a cross-Commonwealth network of high-level champions and offer technical assistance in the reform of laws that discriminate against or fail to protect women, girls and LGBT individuals. It is currently speaking with six countries about the offer of technical assistance for legislative change. That is an update since last year.

On our special responsibility, which the hon. Lady rightly drew our attention to, she will be aware that the Commonwealth charter itself states that members are opposed to all forms of discrimination, whether rooted in gender, race, colour, creed, political belief or other grounds. She will also be aware that the largest ever number of visiting LGBT activists came from around the Commonwealth to attend all four of the official forums and a wide range of special events at last year’s summit. At that event, the Prime Minister expressed her regret at the legacy of the discriminatory legislation in the Commonwealth and committed to supporting those countries that wished to make a change.

The hon. Lady asks about the letter. It gives me the opportunity to put on the record how grateful we are to all those Commonwealth servicemen and women who served with Britain during the war. She will be aware that, from April 2019, UK aid will protect more than 7,000 Commonwealth veterans and widows who served with British armed forces from extreme poverty. It is an £18.2 million programme working with the Royal Commonwealth Ex-Services League and will support 4,500 veterans and 2,500 widows of veterans in the countries eligible for official development assistance. I acknowledge the letter that we received from the shadow Secretaries of State for Foreign Affairs, Defence and International Development, and I can assure her that the Government will respond in due course.

[Madam Deputy Speaker]

I call Ian Liddell-Grainger.

Bank of England and Financial Services Bill [Lords]

Debate between Baroness Laing of Elderslie and Harriett Baldwin

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 19th April 2016 Commons Chamber

[The Economic Secretary to the Treasury (Harriett Baldwin)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

With this it will be convenient to discuss the following:

Amendment (a) to new clause 12, after paragraph 2A(1)(b) insert—

“(1A) If, before the term of office has begun, the Treasury Committee reports to the House that the appointment should not be confirmed, the Treasury shall not continue with the appointment unless the House of Commons resolves that the appointment should be confirmed.”

Amendment (b) to new clause 12, at end insert—

“In Schedule 1ZA to the Financial Services and Markets Act 2000, in paragraph 3(1), at the end insert “, except in the case of the chief executive of the FCA, who shall be appointed for a reappointable term of five years”.”

New clause 1—Chief Executive of the Financial Conduct Authority—

‘(1) Schedule 1ZA of the Financial Services and Markets Act 2000 is amended as follows.

(2) After paragraph 2(2) insert—

“(2A) The Treasury shall not appoint a chief executive without the consent of the Treasury Committee of the House of Commons.”

(3) After paragraph 4(1) insert—

“(1A) But a chief executive appointed under paragraph 2(2)(b) is not to be removed from office without the consent of the Treasury Committee of the House of Commons.”

(4) After paragraph 27 insert—

“References to Treasury Committee

28 (1) Any reference in this Schedule to the Treasury Committee of the House of Commons—

(a) if the name of that Committee is changed, is to be treated as a reference to that Committee by its new name, and

(b) if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, is to be treated as a reference to the Committee by which those functions are exercisable.

(2) Any question arising under sub-paragraph (1) is to be determined by the Speaker of the House of Commons.””

New clause 2—Composition of the Court of Directors of the Bank of England—

“In making nominations to the Court of Directors of the Bank of England, the Chancellor of the Exchequer must have regard to the importance of ensuring a balanced representation from the nations and regions of the United Kingdom.”

New clause 3—Change in title of the Bank of England—

“The Bank of England shall be known as the Bank of England, Scotland, Wales and Northern Ireland; and any reference in any enactment to the Bank of England shall be taken as a reference to the Bank of England, Scotland, Wales and Northern Ireland.”

New clause 5—Sterling Central Bank—

“The Bank of England is renamed the Sterling Central Bank.”

This new clause would change the name of the Bank of England to reflect its position as the UK central bank and the UK’s shared currency.

New clause 6—Membership of the Monetary Policy Committee of the Bank of England—

“(1) Section 13 of the Bank of England Act 1998 is amended as follows.

(2) At the end of subsection 2(c), add “of whom one each must be nominated by the Scottish Government, the Welsh Assembly Government and the Northern Ireland Executive.”

This new clause seeks to ensure representation of the four nations of the United Kingdom on the Monetary Policy Committee.

New clause 7—Objectives of the Monetary Policy Committee—

“After subsection 11(a) of the Bank of England Act 1998 there is inserted—

“(b) maximum employment, and.””

This new clause would expand the mandated objectives of the Monetary Policy Committee to include maximum employment.

New clause 8—Bank of England Accountability and Devolved Legislatures—

“Within three months of the passing of this Act, the Chancellor of the Exchequer shall lay a report before both Houses of Parliament on the merits of ensuring that the members of the policy committees of the Bank of England, including the Governor, appear before the respective economy committees of the devolved legislatures of the UK at least once a year.”

New clause 13—Freedom of Information—

“(1) Schedule 1, Part VI to the Freedom of Information Act 2000 is amended as follows.

(2) In the entry relating to the Bank of England, leave out all the words after “England.””

Amendment 6, in clause 9, page 7, line 19, at end insert—

‘(6A) The Comptroller may enquire into the Bank’s success in achieving its stated policy objectives but shall not enquire into the desirability of such objectives having been set.

(6B) The Comptroller shall submit reports arising from the exercise of his powers under subsection (6A) to the Treasury Committee of the House of Commons (or any successor committee exercising the same or equivalent functions).

(6C) The Comptroller shall lay before Parliament, and publish, each report arising under subsection (6B) promptly unless, in the opinion of the Treasury Committee, publication of a particular report would be likely materially adversely to affect the stability or functioning of the UK’s financial or banking system.”

Amendment 7, in clause 11, page 12, line 2, at beginning insert

“Subject to section 7ZA(6A) of the Bank of England Act 1998,”

Government amendment 3.

[Harriett Baldwin]

I would like to start by emphasising that the Treasury Committee is an esteemed Committee of this House and provides exceptional scrutiny of the Government and their regulators. Through its programme of pre-commencement hearings, it questions appointees to several posts before they start work. After appointees have started, they can expect to appear regularly before the Committee, and the public can expect the Committee to hold appointees firmly to account.

The Government welcome that scrutiny of appointees—it is a critical democratic function. That is why we have tabled new clause 12 to ensure in statute that the Committee always has the chance to scrutinise a new Financial Conduct Authority chief executive before they start work.