Post Office Redress and Funding
Gareth Thomas Excerpts(5 days, 23 hours ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
With your permission, Madam Deputy Speaker, I wish to provide an update to the House about the Government’s Post Office redress schemes and funding.
No one in this House—no one in this country—will have failed to be moved by the plight of postmasters caught up in the Horizon scandal. The fact that they suffered so much over so many years is both unconscionable and inexcusable. The Government are determined to do right by them and to learn from the mistakes of the past. That is why, before the election in July, we promised to ensure swift and fair redress for postmasters affected by the Horizon scandal and, in the past five months, we have made significant progress.
To date, compensation has more than doubled since the Government took office, with £499 million paid to 3,300 victims. Of that amount, £79 million has been paid to 232 people from the Horizon convictions redress scheme, which we set up in July. As of 29 November, the Ministry of Justice had notified more than 520 people in England and Wales that their convictions have been quashed by the Post Office (Horizon System) Offences Act 2024. The relevant justice authorities in Scotland and Northern Ireland are also continuing to notify individuals within their jurisdictions.
While the progress we have made is positive, we know there are still complex cases to resolve, and we need to speed up other parts of the redress process. Many postmasters are still yet to be compensated or have their cases reconsidered. I am conscious that for the victims of the Horizon scandal, justice delayed is justice denied, and that our responsibility in Government is to work to make the compensation process as effective as possible. That is why we have asked the Post Office to write to over 16,000 former postmasters, encouraging them to come forward if they believe they have a genuine claim. I can confirm those letters have been sent. We want to ensure that every postmaster who is eligible for redress under the Horizon shortfall scheme has the opportunity to apply for it.
On more complex cases, notably in the group litigation order and the Horizon convictions redress scheme, for which my department is, and should be seen to be, directly responsible, we have agreed a new target for 90% of challenge cases in the GLO and HCRS to receive a substantive response within 40 days. We have moved in additional staff, and Sir Gary Hickinbottom, who is already assisting us with the overturned conviction cases, has been appointed chair of the independent panel for the HCRS.
We are looking again at the arguments for providing additional redress to postmaster family members who were affected by the scandal, and to the employees of postmasters. I will report back to the House on that in due course. The Horizon compensation advisory board recommended the establishment of an appeals process for the Horizon shortfall scheme that is independent of the Post Office and Government, and we accepted that recommendation in September. We are in the process of assembling a team of independent external lawyers to help deliver the appeals process. We expect that contract to be awarded in January. I will be able to provide a further update on the appeals process early in the new year.
There are still concerns about the responsibility of the Post Office to deliver the Horizon shortfall scheme and the overturned convictions scheme. The Government are considering the merits of my Department taking over that responsibility, but the benefits of such a move must clearly outweigh the potential disruption. We are carefully considering what intervention we may take.
Thanks to a small group of postmasters and their families coming forward this year, as well as to parliamentarians including Lord Beamish, we now know that issues at the Post Office went beyond Horizon, and that some postmasters may have been affected by earlier systems such as Capture. The Government have responded with swift, significant action. The Kroll investigation published its report into Capture on 30 September, with a further addendum made on 18 October. From that report we have concluded that there are postmasters who may have fallen victim to flaws in Capture software.
Most of us will not be able to comprehend fully what it was like to be accused of mistakes never made, ill intent never harboured and crimes never committed. Some postmasters have told us that, like victims of the Horizon scandal, they were shunned by their local communities—by their customers, friends and neighbours. I speak on behalf of the whole Government in expressing how sorry I am for what those postmasters and their families have gone through. For that and all they were forced to endure, they deserve not just redress but the restoration of their good names.
Uncovering exactly what happened in each case will be a challenging exercise given the passage of time and the lack of records and evidence. However, we are keen to apply the lessons that we have learned from previous redress schemes, and to take account of the needs of this group of victims. The Government will develop our proposals through engagement with postmasters and other key stakeholders, such as the Horizon compensation advisory board and legal experts. Over the coming months, we want to determine the scope of the financial redress and the eligibility criteria, so that we can bring both redress and closure to the impacted postmasters and their families. I expect to provide a further update to the House on that matter in the spring.
Next year, we also expect to receive Sir Wyn Williams’s report. The Post Office Horizon IT inquiry has reviewed the oral evidence that was submitted to it over the course of the last two years. I am thankful to Sir Wyn Williams for his excellent chairing of the inquiry, which closed yesterday. I am also thankful to the Horizon compensation advisory board for the report that it published earlier this year. In case Members are not aware, the board is recommending that a new independent body be set up to deliver any future redress schemes on behalf of the Government, as well as to act in a role similar to that of an ombudsman. The goal is, of course, to reduce the chances of future scandals—or at least to expose them more quickly.
The Government welcome those recommendations. Any recommendation that might prevent harm, or at least help the Government be more responsive to it, is worthy of serious consideration. The potential impact of such a body would be wide ranging, with potential implications for existing redress schemes in the NHS, which need to be considered alongside other issues. We will therefore take time to consult and consider in particular the view of the Williams inquiry before reaching a conclusion. We intend to give a full response within six months of the publication of the Williams inquiry report.
For too long, decisions about the future of the Post Office have been put off. That neglect has allowed significant issues at the heart of the company to grow and take root. As previously set out, we will publish a Green Paper in the first half of next year to seek the public’s views, insights and experiences to help shape the future of the Post Office. In the meantime, we are taking steps to continue to support the post office network and the important services it provides. I can announce that we are providing a further £37.5 million to subsidise the post office network this year. The interim chair of the Post Office, Nigel Railton, is rightly shifting the focus of the business from headquarters to postmasters; the Post Office is also reviewing its costs, as its financial position continues to be challenging. He has announced ambitions for a new deal for postmasters, and I am pleased that the Post Office is going to make an immediate one-off payment to postmasters to increase their remuneration, in recognition of the pressures that postmasters face. That payment is expected to be delivered this month.
We are working with the senior leadership of the Post Office on future opportunities, beginning with banking, so that the company can increase its product offers and commercial revenue and reduce its costs in communities across the UK. Together, we hope these steps will enable the Post Office to move forward, working better with its postmasters and better serving the needs of its customers. This Government are attempting to fix the foundations, deal with the injustices of the past, and invest in a different future for the Post Office so that it can sit at the heart of our communities as a trusted institution once more. I commend this statement to the House.
Madam Deputy Speaker (Caroline Nokes)
I call the shadow Secretary of State.
Andrew Griffith (Arundel and South Downs) (Con)
I thank the Minister for advance sight of his statement.
As shadow Secretary of State, I can say on behalf of every Conservative Member that we are committed to working collaboratively with the Government to deliver the appropriate redress to all those affected by the Horizon scandal and any issues relating to the Capture software. Many of the actions on which the Minister has updated the House were initiated by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake). As my hon. Friend has said, Ministers will have our full support in the swift delivery of redress and the overturning of the convictions of those affected by this wide-ranging scandal. The Conservative party welcomes the redress schemes that have been implemented to remedy the gross miscarriages of justice that have affected hundreds of families across the country. Our only focus now must be on processing claims to get those schemes completed as quickly as possible.
There remain a number of questions following the Minister’s statement that I would be grateful if he would clarify. I understand that the Kroll report did not publish any conclusions about the safety of criminal convictions. The Horizon advisory group had already recommended that the Government introduce legislation to overturn the convictions of postmasters who fell victim to the Capture scheme. I read that the Government have deferred to the Criminal Cases Review Commission on that matter. Could the Minister update us on what conversations he has had with the CCRC in relation to the process of overturning convictions?
The redress that the Minister has announced is welcome news, but there remains a lack of specific detail on how the affected parties can expect progress. Will he set out a timeline for the redress of postmasters affected by Capture? He said that he has instructed the Post Office to write to 16,000 potentially affected former postmasters, urging them to come forward if they believe they have a claim to make, and that those letters have been sent. Can he confirm when they were sent?
Is the Minister able to provide an update on his conversations with Fujitsu? How much has Fujitsu contributed to date? What meetings has he had, and where are we on that important aspect of this process? It was concerning to learn back in September that only a small handful of claims had been offered redress through the Horizon convictions redress scheme and, at that point, no full and final settlements had been made through that scheme. Could the Minister reassure the House that the Government are not just opening the door to those claims, but managing the process of getting them heard, resolved, and ultimately redressed? I was pleased to hear that additional staff have been seconded to facilitate the compensation scheme—I welcome that and thank the Minister—but can he confirm how many have been seconded and from where, and can he give the House an assurance that they will remain seconded for as long as is necessary?
Finally, we welcome the Government’s announcement of £37.5 million of network subsidy. It was announced in yesterday’s written ministerial statement, and it is indeed welcome news. The Minister said that it is for this year, so would he clarify whether that relates to the period up until the end of March 2025? What certainty is there of funding beyond that period so that we can all proceed on a sustainable footing? Is it only for this year, or does it also cover the fiscal year 2025-26?
Gareth Thomas
I am grateful to the shadow Secretary of State for his willingness to work with us collaboratively on providing redress not only to the victims of the Horizon scandal, but to the victims of the Capture software issues.
The shadow Secretary of State referenced the Kroll report. As he and, I suspect, other Members of the House who have followed this issue closely will be aware, Kroll did not take a specific view on convictions. We are aware that a small number of sub-postmasters—those who believed they were victims of using the Capture software, given the shortfalls it generated and the way they were treated by the Post Office as a result—have referred their claims to the Criminal Cases Review Commission. We have instructed the Post Office to work at speed to review what evidence it can provide to the CCRC to help it make decisions on the safety of those convictions. Similarly, the Scottish Criminal Cases Review Commission is looking at a number of cases, and we have similarly instructed the Post Office to co-operate with it as quickly as it can.
On Capture redress, yesterday we met sub-postmasters who have campaigned on Capture, and indeed Lord Beamish, to update them on the steps we will take. We will work at pace. As I said in my statement, we face a significant challenge with the amount of evidence available. For example, no central record has as yet been found of the number of Capture users or of who they were. We are nevertheless going to be working to design a redress scheme. We will consult sub-postmasters and the Horizon compensation advisory board. As I have said, I will bring forward an update on where we have got to by next spring.
On the 16,000 letters that the Post Office has sent out, I can confirm that they have gone out very recently—the shadow Secretary of State will forgive me if I do not have the exact dates. He rightly aired again the concern about the responsibility of Fujitsu, which is felt across the House. I am sure that he will recognise that we need to wait for Sir Wyn Williams’s inquiry to report, to give us a better understanding of the scale of Fujitsu’s responsibilities and, therefore, its potential liabilities. We have said that we will respond to the inquiry’s recommendations at pace, and certainly within six months. I am sure that he will opine on Fujitsu, and we will respond accordingly.
On the Horizon convictions redress scheme, the then Minister of State at the Ministry of Justice, my right hon. Friend the Member for Swindon South (Heidi Alexander), and I had the pleasure of appearing before the Business and Trade Committee, chaired by my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), to update it on progress in overturning the convictions following the legislation last summer. She committed the Ministry to completing its work of assessing the cases by the end of January, and I understand that it still intends to do so. We have already paid out some £79 million as part of our responsibilities to provide redress to those whose convictions were overturned.
Lastly, on the network subsidy uplift, the shadow Secretary of State will understand that the money is just for this year. Spending review discussions are taking place across Government, and the Post Office is an active part of those discussions.
Madam Deputy Speaker (Caroline Nokes)
I call the Chair of the Business and Trade Committee.
Gareth Thomas
I am grateful to my right hon. Friend that the first report of his Committee has looked at the Post Office redress schemes. He will know that progress has been made, but as I alluded to in my opening statement, we recognise that there is still significantly more to do, particularly with the complex cases. Specifically on convictions and Capture, I have to tell the House that at this stage we do not know how many people were convicted as a result of the Capture software. We are aware of a small number of cases. As I have said, a number of cases are with the Criminal Cases Review Commission and the Scottish Criminal Cases Review Commission. We have instructed the Post Office to review all its records—we know it has some records available for the 1991 to 1999 period—and to get what information it does have to those two bodies, so that they can opine as quickly as is feasible on the safety of those convictions. It is right that that is the first step we take. We will wait to see the judgment. In the meantime, we will get on with designing a redress scheme for all those who were not convicted but who suffered as a result of the Capture software.
Steve Darling (Torbay) (LD)
I thank the Minister for sharing his statement in advance.
Honest, hard-working people had their lives totally wrecked by this scandal, and it is a great shame that it happened over a number of years, and that there was dither and delay over it for far too many years. I welcome the steps that he has outlined this afternoon. I welcome the suggestions made to him about an independent body for compensation. However, this scandal must never happen again. One way this Chamber could ensure that is the case is by having a duty of candour on officials, as the Liberal Democrats have called for. I hope he will give that serious consideration, to stop such a scandal ever happening again. Finally, there is a real opportunity, should the Government choose to take it, to set up an office for whistleblowers through the Employment Rights Bill, which is currently making its way through the House.
Gareth Thomas
I am grateful to the hon. Gentleman for his opening remarks. In particular, I share his anger, and that of the whole House, at how sub-postmasters were treated, whether as victims of the Horizon scandal or of the Capture software issues, which was clearly appalling. We must do everything we can to ensure that can never be repeated. He will understand that yesterday was the last day of hearings in Sir Wyn Williams’s inquiry. Sir Wyn Williams has said that he will publish his conclusions and recommendations within months. The Government will then work at pace to consider his recommendations and to publish our response within six months of that date. The specific ideas that the hon. Gentleman has referenced in that context will, I am sure, be part of the Government’s deliberations. He will forgive me if I wait at this stage for Sir Wyn Williams’s recommendations. We will then look at those recommendations and come to the House with the future steps we intend to take.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
I welcome the Minister’s announcement on the Green Paper on the future of the Post Office. It is also welcome that the Government are taking additional steps towards financial redress for the postmasters who suffered such horrendous treatment in that scandal. I am concerned that this new deal for postmasters comes at the expense of post office branches across the country, including at Kensington Park in my constituency. Does he agree that there should not be a choice between giving postmasters a fair deal and losing essential high street services? Will he please meet me to discuss that further?
Gareth Thomas
I would be happy to meet my hon. Friend. I recognise that post offices are a fundamental part of every one of our communities in the UK. That is one of the reasons why the Government have been clear that we adhere to and support the commitment on various access requirements to ensure that every community has good access to post office facilities. On directly managed branches, she will know that no decision on the future of all those branches, or indeed any individual branch, has been taken. I recognise that she has particular concerns about the branch in Kennington, and I am happy to meet her to discuss that.
Sir Julian Lewis (New Forest East) (Con)
I am glad that the Minister chose to reference the excellent work done on behalf of the postmasters by Lord Beamish, who is better known to many of us as our former colleague Kevan Jones. I hope that the whole House will join me in congratulating him on his appointment today as the new Chairman of the Intelligence and Security Committee—an appointment, by the way, by his fellow Committee members, which is exactly as it should be done.
May I gently ask the Minister—this may go slightly outwith his Department’s responsibilities—whether there is any news or progress about the question of prosecutions for criminal conspiracy? That is something I have raised before. That is one thing that might act as a deterrent to this sort of terrible behaviour by a gilded, self-selecting class of people who think that their institutional importance is greater than truth or justice.
Gareth Thomas
I am certainly happy to echo the right hon. Member’s congratulations to the noble Lord Beamish and to emphasise again my appreciation for his work on championing the concerns of those who are victims of the Capture software. He is one of those whom we will continue to work with going forward as we put together redress and think about these issues more generally.
Specifically on prosecutions, the right hon. Member may be aware that the Metropolitan police has confirmed that it has established a unit and is looking at a number of issues to do with how the Post Office operated. He will understand that, quite rightly, Ministers are not involved in those decisions, but the information that I have set out is publicly available. We will obviously all have to wait to see what happens in that regard.
Matt Western (Warwick and Leamington) (Lab)
My hon. Friend rightly said that there is an urgent need to speed up the redress process. What we know is that while £500 million has been paid out in claims, £267 million has been spent on lawyers. Nigel Railton told us that between 80% and 85% of all claims are simple cases, so does my hon. Friend agree that there is a real opportunity to automate the process so that we handle claims far more quickly?
Gareth Thomas
I thank my hon. Friend for his question. Specifically on what further action we can take to speed up the process, one of the reasons why we introduced a fixed-sum payment of £75,000 for those whose claims had been accepted as part of the Horizon shortfall scheme was deliberately to offer an option of faster redress for victims.
On the question of automation, we encouraged Nigel Railton and the senior leadership at the Post Office to look at what further steps they can take to speed up the consideration of claims under the Horizon shortfall scheme, where there is particular pressure given the numbers that are still coming forward. I welcome the fact that they are coming forward, but we need faster action to get through them and to support all those whose claims are being accepted to get redress under the Horizon shortfall scheme.
Richard Foord (Honiton and Sidmouth) (LD)
Recently I met a couple of constituents—Tony Hibberd, a former sub-postmaster, and Colin Chesterton, a solicitor who is representing him pro bono. During our meeting, they raised concerns about the delays and inadequacies of the Horizon shortfall scheme. My constituent has waited in excess of four years since his claim application and 14 years since he was forced to lose his livelihood. What percentage of the claimants to the Horizon shortfall scheme have received an interim payment, and what percentage have had their requests settled in full?
Gareth Thomas
If the hon. Gentleman writes to me with the details of that case, I will happily look at where it is at. The Horizon shortfall scheme has been run by the Post Office for some time. Initially, it was closed and then it was reopened under pressure. All those who came forward in the initial tranche of claims have had them assessed and offers have been made. The majority of the compensation that was offered has been paid out. When the scheme was reopened, there was a substantial increase in the numbers of people applying for redress. Indeed, we are still seeing people coming forward now and we would expect, as a result of all the letters that we have asked the Post Office to send out to sub-postmasters who might have a claim, that there will be further substantial claims under the Horizon shortfall scheme. With the Post Office, we are looking at what more we can do to speed up the assessment of those claims.
The fixed sum payment that we announced in September of some £75,000, which sub-postmasters can choose to accept in full and final settlement of their claim, has been welcomed and accepted by a significant number of sub-postmasters. That is helping to speed up redress under the Horizon shortfall scheme. I accept that there is more to do, and we are looking at what else we can do in that regard.
Clive Efford (Eltham and Chislehurst) (Lab)
I welcome my hon. Friend’s statement and the fact that he is putting more resources and manpower into processing people’s claims. But I wonder where the complexity of these claims is coming from. Are we asking for too much information from people in the first place? I watched the evidence of Sir Alan Bates at the Business and Trade Committee, and I have read some of the cases in the news. In one case, a person with breast cancer had their compensation reduced and I thought, hang on a minute, this may be going too far and is a bit churlish. Just how much information is being gone through in order to process these cases? I wonder if we may want to go back and look at that. I have spoken to the Minister about this, and I know that he wants to speed the process up as much as possible. Is it possible that we could streamline the process?
Gareth Thomas
I have looked at this issue, which came up at the Select Committee. We write out to ask for further information in order to be able to justify the payment of more compensation, not to query the information that has been provided by sub-postmasters to date. To try to provide reassurance on that point, we are making that explicit in the letters that we send out to sub-postmasters. We are anxious to reduce the stress and concern and, essentially, the trauma that people have gone through already. We do not want that process to be repeated, if at all possible, during the compensation process. Asking for more information is designed to enable us to offer more and fairer compensation to the individuals concerned.
Chris Law (Dundee Central) (SNP)
I am listening in detail about the processes you are going through looking for more information on Horizon. You have mentioned Capture, which goes back to 1992—30 years ago. You have mentioned a lack of information and that you are looking for more detail—
Chris Law
Bad habits—must get rid of them. My apologies, Madam Deputy Speaker. I am concerned about the Capture system, which is more than 30 years old and had 19 different versions. We do not know who used it, and we do not know who has been convicted for it. The people who have been convicted are probably dying every other week just now. The Minister talks about working at pace, but can he make a flying sprint to get to those people urgently, to ensure that investigations are carried out and that compensation deserved is duly received?
Gareth Thomas
The hon. Gentleman makes a perfectly reasonable point—it is something I feel acutely. I have met a number of the sub-postmasters who used the Capture software and were treated very badly as a result by the Post Office, so I am acutely conscious of our collective responsibility to those individuals and their families. Some of the sub-postmasters who used Capture software have already passed away, which only underlines the points he and I have made. I can assure the House that we will work at pace. We are working with the Post Office, and have asked the organisation to go through its records so that we can identify, inasmuch as we can, how many people were potentially victims of Capture. We are also supporting the work of the Criminal Cases Review Commission in looking at whether convictions are safe.
Jacob Collier (Burton and Uttoxeter) (Lab)
The devastating case of Susan Cain, the mother of my constituent Zoe Stokes, highlights the profound human cost of this scandal. Susan, who ran the post office in Hampton in Arden, was falsely accused of theft, and forced to sell her business and home in order to repay £25,000 to avoid prison. Tragically, she later died from emphysema, which medical evidence links to the immense stress that was caused by these false allegations. Despite her exoneration, her family have been offered just 40% of their claim, with the Post Office refusing to accept responsibility for her illness. What steps is the Minister taking to ensure that the compensation programme for families like Zoe’s is fair and transparent, and fully accounts for the harm caused by this scandal?
Gareth Thomas
I commend my hon. Friend for championing the cause of the family of a sub-postmaster in his constituency. He will forgive me if I do not know the exact compensation scheme that his constituent applied to. However, in general, independent elements are built into each of the compensation schemes to try to ensure that as fair a sum of redress as possible is offered. On the Horizon shortfall scheme in particular, in September we committed to setting up an independent appeals process, and I hope to have more information for the House early next year. We are determined to establish that process to provide a further independent element for that particular scheme.
Vikki Slade (Mid Dorset and North Poole) (LD)
My constituent Donna is one of the 555. She was audited through Horizon, which found a loss of £186,000. An employee admitted fraud and was later imprisoned, but Donna was made bankrupt for the loss—for not just £186,000, but £250,000, which, of course, she could not pay. It was never challenged; we do not know whether the real amount was £180,000 or £180. She was awarded an interim payment, most of which was taken by the receivers. Now, the amount the receivers took has been taken from the final £75,000 fixed amount, and she has only been offered £20,000, despite losing everything. Will the Minister personally look at Donna’s case and ensure she gets proper redress for this obvious miscarriage of justice?
Gareth Thomas
I would be very happy to receive further information from the hon. Lady, and I will endeavour to reply to her as quickly as I can. I recognise that there are concerns about the fairness of the compensation process. There are complex cases that are still to be settled. We are working at pace to ensure, where we can, that those cases are settled, particularly with regard to the GLO scheme. We have made it clear that for all the remaining cases that are with us by Christmas, we will be able to get substantial redress paid out to those individuals by the end of March. As I say, if she writes to me I will happily look at her letter.
Sean Woodcock (Banbury) (Lab)
It is known as the Horizon scandal, but the real scandal is not the failings of software but the action and deeds of individuals and institutions, as Sir Alan Bates said. In that light, I would include the misuse and potential abuse of private prosecutions. Will the Government commit to acting on that?
Gareth Thomas
Yes. My hon. Friend raises a very good point. The Ministry of Justice has made clear its concern about this issue and is set to bring forward a consultation document early in the new year, I believe, to address exactly that concern.
Sammy Wilson (East Antrim) (DUP)
I welcome the Minister’s statement, but does he recognise the frustration that many, many sub-postmasters still experience? We put legislation through this place months ago on the quashing of convictions. The compensation scheme has been in place for many years now, yet well over half of the individuals still have not had their cases dealt with. I met some of them when they came over for the inquiry a few weeks ago, and there is real fear among them that the Post Office is still in denial and is therefore still reluctant to proceed with these claims. Two people gave me examples. One has been asked for information that he does not have because the Post Office seized all the information. For the other, the delay is caused because she meticulously kept records and now the Post Office says it has so many records to go through that it will take some time. Does the Minister understand why many people feel that, despite the decisions of this House and the commitment of Ministers, there is still reluctance on the part of the Post Office to deal fairly with these people?
Gareth Thomas
I understand completely the frustration of sub-postmasters who have waited so long to get redress and have their cases heard. The right hon. Gentleman will understand that there are four Horizon scandal compensation schemes. In the case of the convictions that were overturned by this House this year, the fourth compensation scheme, the Horizon convictions redress scheme, was set up on 30 July and has begun paying out significant sums of money to sub-postmasters who have had their convictions overturned—some £79 million, as of the end of November. As I said earlier, the MOJ has sought to contact all individuals who had their convictions overturned as a result of that legislation. It has said that it will complete its work by the end of January and I understand that it is on course to do so, but I am acutely aware of the right hon. Gentleman’s point. It is why we continue to look, as much as we can, at what further efforts we can take to speed the delivery of compensation.
Madam Deputy Speaker (Caroline Nokes)
Last but by no means least, I call Emma Foody.
Emma Foody (Cramlington and Killingworth) (Lab/Co-op)
I welcome the Minister’s statement and his commitment to providing redress as soon as possible. One of my constituents, a former sub-postmaster who wished to remain anonymous, attended a surgery recently to share their experience. Accused of stealing over £40,000 due to the Horizon system, they lost their home, their job and their business, and were forced to pay thousands from their and their family’s savings. Compounding the financial loss was the reputational loss: ostracised by the community, experiencing racial abuse and forced to move away—appalling in its own right but, as we have heard today, just one of many, many examples. Does the Minister agree that any redress must address not just the financial loss, but the further damage done to people’s lives as a result of the actions of the Post Office?
Gareth Thomas
I am sure I speak for the whole House when I say that I wish the experience that my hon. Friend has described was just an isolated example, but sadly there have been far too many similar examples of what sub-postmasters have been through. We absolutely must get more speed into the compensation process, and we are very much working on that, but we will also look carefully at the recommendations of the Sir Wyn Williams inquiry when they are published next year. His work will be crucial in helping to ensure that nothing like this ever happens again.
Bill Presented
Public Procurement (British Goods and Services) Bill
Presentation and First Reading (Standing Order No. 57)
Sarah Champion presented a Bill to make provision about public procurement in respect of British goods and services; and for connected purposes.
Bill read the First time; to be read a Second time on Friday 24 January 2025, and to be printed (Bill 153).
Kroll Investigation into Capture Software: Government Response
Gareth Thomas Excerpts(6 days, 23 hours ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Network subsidy uplift and postmaster remuneration
The Government are committed to delivering the manifesto commitment to strengthen the post office network. To do this, we intend to take steps that will improve the culture, structure, and organisation of the company. I have announced that the Government will publish a Green Paper in the first half of next year to seek the public's views, insights and experiences to help shape the future of the Post Office. In the meantime, it is important to continue to support the post office network and the important services it provides across the country. I can therefore announce that the Government are providing a further £37.5 million of network subsidy this financial year.
Postmasters have raised concerns with me that their income has not kept up with inflation over the past decade. The Government therefore welcome that the Post Office is going to make a one-off payment to postmasters to increase their remuneration.
Government response to independent investigation into Capture software
I am today publishing the Government response to the independent report conducted by forensic accountant Kroll Associates, into the Post Office Capture software. This can be found at https://www.gov.uk/government/publications/independent-investigation-into-capture-government-response. I have also placed copies in the Libraries of both Houses.
Earlier this year, concerns were raised by parliamentarians and postmasters about the Capture software which was rolled out by the Post Office to some branches in the early 1990s and predated the Horizon IT system. The concerns were that the Capture software had bugs which may have caused shortfalls, leaving postmasters to pay the Post Office back, and that some postmasters may have been prosecuted as a consequence.
In responding to these concerns, the Government committed to publishing the conclusions of the Kroll report as quickly as possible after the investigation concluded. The report was published on 30 September 2024, and an addendum to the report containing additional evidence was published on 18 October 2024. The report concluded there was a reasonable likelihood that Capture could have created shortfalls for postmasters. The Government accept those findings.
This has come to light thanks to the hard work of postmasters, campaigners and parliamentarians and the Government are committed to moving swiftly on proposals for delivering redress.
After closely considering the findings and other evidence presented to the Government, including testimony from postmasters, the Government have concluded that postmasters who were adversely impacted by Capture should be offered redress.
The next step in this process will be to decide how and what form of redress should be offered in the context of Capture, which is distinct from Horizon due to the passage of time and the significant lack of contemporaneous records and evidence.
The Government will develop their proposals, engaging with postmasters and other key stakeholders over the coming months to determine the scope of the financial redress and the eligibility criteria. Financial redress will be offered to postmasters who do not have a criminal conviction or where a court has overturned their conviction.
The Kroll report does not make conclusions on whether Capture led to unsafe convictions. Therefore, the Government are continuing to work with the Criminal Cases Review Commission, the Scottish Criminal Cases Review Commission and the Post Office on their ongoing investigations into the use of Capture in prosecutions.
I would like to thank postmasters that have come forward so far, and for those who have shared their initial suggestions for redress.
Lastly, I urge all postmasters who may have used Capture and may have experienced shortfalls related to Capture to come forward to the Government to make themselves known. Equally, we welcome family members of any postmasters who have sadly passed away, who believe their relative may have been affected, to come forward.
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Oral Answers to Questions
Gareth Thomas Excerpts(1 week, 4 days ago)
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Alex Baker (Aldershot) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
We recently launched Unlock Europe, a new export programme designed to help UK businesses build stronger relationships with European customers. Last month, in Manchester, my right hon. Friend the Secretary of State launched a new pilot scheme, alongside the mayor and his team, that offers businesses in the north-west more support in selling their products and services overseas. We are determined to do more, and will bring forward further plans in due course.
Alex Baker
Exports from our aerospace, defence, security and space sectors contribute around £40 billion to our economy, but without additional support, many of the small businesses I speak to in Aldershot and Farnborough are limited in their ability to export. What can Ministers do to help them, and will the Government consider reinstating the trade show access programme, closed down by the Conservatives, to help more small and medium-sized enterprises trade around the world?
Gareth Thomas
My hon. Friend is absolutely right that we have to do more to help small businesses in particular, and businesses in general, to export more overseas. That is one of the key, but often understated, ways in which we can deliver growth for this country. As part of our work on a new trade strategy and a small business strategy, we are looking at further proposals to help our businesses export more.
Richard Foord (Honiton and Sidmouth) (LD)
The Italian press has been reporting that the global combat air programme consortium, involving the UK, Italy and Japan, might be extended to include Saudi Arabia. Can the Minister confirm this press report? How would that affect any future decision to suspend licences to export arms to Saudi Arabia, as the Government decided to in 2019?
Gareth Thomas
We are looking at working with other GCAP partners. I was in Italy last month to discuss the further potential of GCAP, and other work that we can do with the Italians in this space, but that will not affect the issue about which the hon. Gentleman is specifically concerned.
Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)
Sir John Whittingdale (Maldon) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Hospitality businesses are at the heart of our communities and are vital for economic growth. The Government are creating a fairer business rates system, reducing alcohol duty on qualifying draught products and reforming the apprenticeship levy to support businesses and boost opportunities. We are addressing strategic issues for the hospitality sector relating to high-street regeneration, skills, sustainability and productivity, and that work will be supported by the publication of the small business strategy Command Paper next year.
Rebecca Paul
In Reigate, Redhill, Banstead and our villages, we have many amazing pubs that contribute hugely to the economy, such as the Garibaldi community pub in Redhill. For those businesses to thrive, reform of the unfair business rates system by 2026 is critical. Will the Minister commit to the proposed 20p reduction to the small business rate multiplier, which is the absolute minimum reduction needed for the long-term sustainability of the pub sector?
Gareth Thomas
The hon. Lady will know that the Chancellor of the Exchequer committed in the recent Budget to a series of reforms to business rates, including permanently lower business rates for hospitality businesses from 2026-27. I welcome the hon. Lady’s support for that measure.
Sir John Whittingdale
UKHospitality has estimated that the Budget measures will increase the cost of employing one employee by £2,500. Shops, pubs and restaurants across my constituency have said that that will lead to higher prices or fewer jobs. Will the Minister at least consider delaying the implementation of the national insurance contribution increase to 2026-27, when the planned realignment of business rates is due to come in?
Gareth Thomas
I am sure that the right hon. Gentleman will have noticed that in the Budget, the Chancellor more than doubled the employment allowance to £10,500. That will mean that more than a million small businesses, many of them hospitality businesses, will see no increase in their national insurance liabilities next year.
Dr Danny Chambers (Winchester) (LD)
Patrick Hurley (Southport) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The Government are committed to doubling the size of the mutuals and co-op sector. The creation of Great British Energy will help drive a significant expansion in the number of energy co-operatives, while work to modernise co-op, credit union and mutual law to drive expansion was recently announced by Treasury colleagues. We will work particularly closely with the recently established mutual and co-operative business council on this agenda. We will bring forward further proposals in due course.
Patrick Hurley
Co-operative businesses can be the life- blood of our towns and communities. In my constituency, I have been working with stakeholders and interested parties to bring about a community co-operative bookshop, following the closure of independent bookshops in Southport in recent years due to the cost of living. May I take this opportunity to encourage new expressions of interest in the bookshop, and to ask the Minister to confirm what more support the Government can provide for our co-operative sector, so that towns like mine can see a thriving high street built around our community?
Gareth Thomas
My hon. Friend is absolutely right to underline the positive community impacts that co-operatives, mutual businesses and social enterprises can have not only on our high streets, but in our communities more generally. We recently announced a significant increase in the capital available to the British Business Bank, and that has enabled us to give £150 million of additional support to community banks, or community development finance institutions, as they are officially known. That will help drive more lending to community businesses, potentially including the one he set out, but if there is anything I can do to support the initiative, I would be happy to meet him to discuss it.
Tonia Antoniazzi (Gower) (Lab)
Mark Ferguson (Gateshead Central and Whickham) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Working across government with mayors, local authorities and—crucially—local communities, we are beginning to tackle antisocial behaviour and crime, reforming business rates, working with the banking industry to roll out 350 banking hubs, stamping out late payments, empowering communities to make the most of vacant properties, strengthening the post office network and reforming the apprenticeship levy.
Ms Billington
I welcome the new powers delegated to local authorities, enabling them to tackle the blight of empty shop fronts and rejuvenate our local high streets. This will be particularly welcome in East Thanet, where the Ramsgate empty shops action group has been a powerful advocate for addressing this issue. We have a 24% vacancy rate on Ramsgate high street, so what steps are the Government taking to support and encourage local businesses and community projects to take over those vacant properties?
Gareth Thomas
I commend my hon. Friend on her work with the Ramsgate empty shops action group. Her experience on her high street is sadly echoed up and down the country—under the Conservative party, vacancy rates on our high streets shot up. High street rental auctions, which are the new powers that my hon. Friend alludes to, will help local councils to bring vacant units back into use, working with local communities. That will hopefully help to drive co-operation between landlords and councils and make town centre tenancies more accessible and affordable. We are encouraging local authorities to take advantage of those powers. As I suspect my hon. Friend already knows, colleagues in the Ministry of Housing, Communities and Local Government are looking to do further work in this space.
Sir Oliver Dowden
I did not realise you had grouped them, Mr Speaker. Forgive me—a schoolboy error.
What advice would the Minister give struggling businesses in my constituency who are trying to work out how to absorb Labour’s national insurance hike? Would he advise them to increase their prices, to squeeze wages or to cut investment, and can he explain to those businesses how that fits with the Government’s promises to increase growth?
Gareth Thomas
I think the best advice I could give to businesses in the right hon. Member’s constituency is to never vote Conservative again. His and his party’s idea of good economics in Government seems to be to create a huge fiscal hole and leave it to the next Administration to fix it. We are working at pace to try to tackle the difficult economic inheritance that he and his colleagues in Government helped to create. Measures such as the industrial strategy and the decisions we have taken in the Budget—albeit some are difficult—will help to bring back economic stability to this country. In the long run, that will help businesses in his constituency and, indeed, in constituencies up and down the country.
Baggy Shanker
On Small Business Saturday recently, I had the pleasure of visiting Derby’s small businesses of various types, which are the beating heart of our city. However, as our planned city centre regeneration project recognises, empty shops on our high street do not reflect the high-performing, high-technology economy that we are so proud to have in Derby. Building on the new community right to buy, what more can the Department do to ensure that community groups receive the correct business advice and support to use this new right and to breathe new life and vibrancy into our high streets?
Gareth Thomas
I commend my hon. Friend not only for his work recently on Small Business Saturday, but as the leader of Derby council in driving the town centre regeneration work that he mentioned. We are determined to establish a small business growth service to provide better support and information to small businesses so that entrepreneurs in this country can take advantage of new powers to set up small businesses on the high street, perhaps capitalising on the high-tech, high-growth sectors of the economy to which Derby has access, and in that way making sure that we see benefits from the industrial strategy not just for bigger businesses, but for smaller businesses.
Mark Ferguson
My hon. Friend will know from his visit to Gateshead this week some of the fantastic small businesses we have on our high street, but also some of the incredible challenges faced by so many high streets and town centres. With that in mind, will he tell us what the Government are doing on access to finance for small businesses?
Gareth Thomas
Despite the considerable cold, I very much enjoyed my recent visit to Gateshead town centre, and I was impressed by the dynamism of the businesses that he and I met at his instigation in the railway quarter. One of the things we are determined to do is to increase access to finance for small businesses up and down the country. That is why we have provided over £1 billion across this year and next year for the British Business Bank, particularly to drive access to finance for small businesses such as the ones to which he introduced me.
Dame Harriett Baldwin (West Worcestershire) (Con)
One of the ingredients for a successful high street is having a post office in the mix. The Government have inherited a network of 11,500 post offices, and that number has been stable since 2010. Will the Minister commit to supporting high streets by maintaining the scale of the post office network in this Parliament?
Gareth Thomas
Yes, we are determined to maintain and, indeed, strengthen the post office network. I suspect that the hon. Member will recognise that we inherited a Post Office with huge problems, which we are working with the new leadership of the Post Office to begin to tackle. We are looking at what new commercial opportunities there may be for the Post Office, and banking appears to be the most significant one. We are also working with the Post Office to identify some of its infrastructure problems, not least in developing a replacement for the Horizon scheme.
Christine Jardine (Edinburgh West) (LD)
Tristan Osborne (Chatham and Aylesford) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The creative industries are a huge force for good in our country. They were responsible for 2.4 million jobs last year, and more than £124 billion for our GDP in 2022. They are one of eight growth sectors in our industrial strategy. We are working closely with the Department for Culture, Media and Sport, and across Government, to identify what more we can do to draw out even more of the potential growth that Britain’s creative businesses can offer.
Tristan Osborne
As we all settle down for Christmas, we will be watching “Mission: Impossible”, “James Bond”, “Ironclad”, and perhaps even “Call the Midwife”, which were all filmed in Medway—[Interruption.] And also “The Great Escape”, which was not filmed in Medway, unfortunately. How can we make “Mission: Impossible” possible across our country when it comes to new films?
Gareth Thomas
I cannot follow the impressive nature of that question, but I can tell my hon. Friend that in the Budget my right hon. Friend the Chancellor confirmed a new independent film tax credit, which will help to enable the successes that he has alluded to in his constituency and the surrounding area to be spread, potentially, across the country. That will allow more businesses to set up and generate growth and wealth for our country.
Luke Akehurst (North Durham) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
No decisions have been taken on the future of any directly managed branches, including in Chester-le-Street in my hon. Friend’s constituency. The Post Office continues to work with local communities, and others, to consider how best to meet the need for post office services in a local area. The Government set minimum access criteria to ensure that 99% of the UK population live within 3 miles of a post office, and those Government-set access criteria ensure that, regardless of changes, services remain within reach of all citizens.
Luke Akehurst
The post office in Chester-le-Street has been at the heart of the community in North Durham since 1936, and offers vital services to my constituents. Does the Minister agree that keeping those services accessible is vital to keeping footfall on our high streets and encouraging other businesses to locate themselves there?
Gareth Thomas
I recognise the significance of the post office in my hon. Friend’s constituency, as indeed I recognise the significance of post offices in my constituency and across the UK. It is important to maintain access to post office services as they play a crucial role in the high street. That is why we are determined to work with the Post Office to strengthen the network, as I alluded to earlier.
Alex Baker (Aldershot) (Lab)
Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
My hon. Friend will be aware that the Chancellor of the Exchequer recently announced £20.4 billion in investment for research and development for the next year, which will help to drive even more of the type of technological investment that she rightly champions. We are also working with small businesses to encourage them to adopt more digital technologies through the digital adoption taskforce.
Alison Griffiths (Bognor Regis and Littlehampton) (Con)
Businesses in Bognor Regis and Littlehampton are at the sharp end of the Bank of England’s business confidence survey. Unlike the Chancellor and the Secretary of State, they know that her Budget and the Employment Rights Bill are a recipe for higher prices, higher inflation, higher interest rates and higher unemployment. Is that the growth that the Secretary of State had in mind?
Hospitality Sector: Eastleigh
Gareth Thomas Excerpts(2 weeks, 5 days ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
I appreciate the opportunity to serve under your chairmanship, Dame Siobhain, and in the usual way I congratulate the hon. Member for Eastleigh (Liz Jarvis) on securing this important debate. I thank her for her invitation to visit Eastleigh; I do not know specifically when I will have the opportunity to do so, but I will certainly consider it when I am in the Southampton area. Her constituency sounds like a particularly attractive part of the UK—if she will forgive me for saying so, almost as attractive as Harrow West, where we also have some great hospitality businesses.
The hon. Member rightly alluded to the significance of Small Business Saturday this week, which provides a great opportunity to celebrate the small hospitality businesses that bring such joy and life to the communities of all our constituencies. I will say more about Small Business Saturday in due course.
This debate matters because the hospitality sector is hugely important to the UK economy, employing around 3.5 million people and generating around £140 billion of economic activity. It contributes around £54 billion in revenue per annum. The sector is important to local economies because it helps to create vibrant places that people want to visit, work in and live around. It is important in supporting wider social objectives, providing accessible jobs, community cohesion and welcoming spaces for people to enjoy. The hon. Member referenced the work of the landlady, Lorraine, as just one example of the difference that hospitality makes in so many of our communities. In short, hospitality is the backbone of our high streets and the lifeblood of many of our communities.
I meet regularly with hospitality businesses, and only yesterday hosted a meeting of the Hospitality Sector Council, so I hear first-hand the pressures facing hospitality businesses. A hospitality business, like any other business, can only prosper and grow on the firm foundation of economic stability. Unfortunately, economic stability is certainly not what we inherited when we came into power in July. At the end of October, at the Budget, the Chancellor made decisions that she did not want to have to make, but however painful those decisions may have been in the short term, they were the right decisions and were necessary to fix the foundations of what most in the House recognise was a broken economy.
The Budget also reflected the need to protect smaller businesses—for example, by more than doubling the national insurance contribution employment allowance from £5,000 to £10,500. It will provide relief for about 1 million small businesses. It also set out the steps that we will take to address the iniquities of an antiquated system of business rates that is particularly unfair for retail, hospitality and leisure businesses. The hon. Member for Eastleigh rightly referred to that in her contribution. Not only is the current system of business rates unfair, but it disincentivises investment, creates uncertainty and places an undue burden on our high streets.
The Budget delivers on our manifesto commitment to make hospitality pay a fairer share of business rates, with a permanently lower multiplier from 2026. Until then, we have extended the retail, hospitality and leisure relief at 40%. In addition, the business rates multiplier will be frozen at 49.9p for small businesses, and we intend to introduce permanently lower multipliers for retail, hospitality and leisure properties from 2026-27. The hon. Member for Eastleigh will also be aware that my right hon. Friend the Chancellor published a discussion paper on business rates reform in order to create a wider debate with the business community about business rates and possible additional ways to reform the system. The proposed business rates reform has been supported by UKHospitality, and the Treasury widely consulted the sector before making those proposals.
Securing access to finance can be a big issue for many businesses, including those in hospitality, and to that end, the Government have provided more than £1 billion in 2024-25 and 2025-26 for the British Business Bank, aiming to improve access to finance for small businesses, including more than £250 million each year for small business loans programmes.
The British Business Bank also supports community development finance institutions—community banks. Recently, I was lucky enough to visit Dhillon’s Brewery Spire Bar in Coventry. After the owner initially struggled to access mainstream sources of finance, he approached the Coventry and Warwickshire Reinvestment Trust, a community development finance institution, which stepped up and provided the funds needed for the brewery and bar to survive and prosper. That is just one example of the way in which we are taking action to improve access to finance, helping to grow the economy so that we can deliver a fairer, more prosperous and healthier society, and help the hospitality sector, in particular, to grow. Growth is the Government’s No. 1 mission, and our new industrial strategy and small business strategy are both central to that.
The small business strategy Command Paper, which the Chancellor announced we will publish next year, will set out our plan to boost scale-ups, grow the co-operative economy, create thriving high streets, make it easier to access finance, help break into overseas and domestic markets, build business capabilities and provide a stronger business environment.
The hon. Member for Eastleigh mentioned the need to do more to support high streets, and I am sure she will be delighted to know about the high street rental auctions policy, which colleagues in the Ministry of Housing, Communities and Local Government have brought into effect. It allows local councils to require landlords to open up high street facilities that have been closed down so that hospitality or other businesses can take advantage of those spaces and bring renewed life to our high streets. In the coming months, we will be setting out further measures linked to the need to invest in our high streets and support small businesses more generally.
We also consulted on an industrial strategy Green Paper, which we published in October, setting out our vision for a modern industrial strategy. With our growth mission, those two strategy papers will ensure we create the conditions for all businesses to invest and grow, and for consumers to be able to spend with confidence. They will help to break down barriers to growth regionally and nationally.
Jobs backed by employment rights fit for a modern economy are at the heart of our plans. In October, we published the Employment Rights Bill, and we will consult to ensure we strike the right balance between the needs of businesses and fairness for workers.
Local growth plans will be a cornerstone of our place-based approach. Locally owned 10-year strategies will set out how mayoral combined authorities will use their devolved powers and funding to drive growth in their regions. That will help to deliver the investment and growth at a local level that our country needs.
Hospitality businesses are not only important to supporting growth in our towns, villages and cities; they are also an integral part of our rural communities. They provide accessible jobs and places for people and communities to come together. In fact, the social value of hospitality is arguably at its greatest in rural and more remote areas. In all areas, hospitality provides opportunities for people to develop important life skills, as well as opportunities for those wanting a fresh start. To enhance those opportunities, we have established Skills England, a new partnership with employers at its heart. It will transform the existing apprenticeship levy into a more flexible growth and skills levy, which will be better suited to support businesses and boost opportunities.
As I mentioned earlier, yesterday I hosted a meeting of the Hospitality Sector Council, which exists to co-create solutions that will help deliver resilience and growth in the hospitality sector. It has done some great work in improving the longer-term resilience of hospitality businesses. I will of course continue to work closely with it as we deliver on our priorities for wider investment and growth, and for reinvigorating our high streets in villages, towns and cities across the UK.
The hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) referred to the lack of business rates relief in Scotland. That is clearly a matter for the Scottish Government, but we will continue to have conversations with all the regions and nations about what else we can do to deliver growth in our country.
A couple of other issues have been brought to our attention. Hospitality businesses on our high streets often face challenges with antisocial behaviour and crime. We are increasing the number of police officers on our streets and in our town centres to bring down antisocial behaviour and crime, and make it easier for people to enjoy the many benefits that the hospitality sector brings.
The hon. Member for Eastleigh raised energy costs. We are setting up Great British Energy not only to accelerate the transition to renewable and net zero forms of energy, but to bring down bills, because we recognise that energy costs have risen in recent years. Great British Energy will certainly help us to bring those costs down in due course.
We all know that hospitality businesses are important. As MPs we recognise that they matter to our constituents, and as individuals we know that they matter to us, our friends and our families. Our high streets are going through a period of transition, from traditional shopping centres to a mix of retail, hospitality and leisure. I assure the House that we recognise the role of hospitality in creating places that people will want to visit, and study, work, live and invest in. As the Minister responsible for hospitality, I will continue to represent the interests of that vital sector, not only in my Department but across Government.
Question put and agreed to.
Disability Finance Code for Entrepreneurship
Gareth Thomas Excerpts(2 weeks, 6 days ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Entrepreneurship is crucial for growth and innovation in our economy.
We want to encourage anyone who wants to be an entrepreneur to access the resources they need to thrive, but it is clear from research to date that significant barriers continue to hold back certain populations, including disabled entrepreneurs, and this needs to change. Eighty-four per cent of disabled founders feel they do not have equal access to the same opportunities as non-disabled founders.
One of the key issues preventing disabled entrepreneurs from starting and scaling up is a lack of access to finance. We want to work collaboratively with the private sector, financial services and the wider community to ensure that we can address this. That is why we are today launching the disability finance code for entrepreneurship (DFCE), underlining the importance that we are placing on boosting entrepreneurship for all as part of our plans for economic growth.
The DFCE is intended to drive engagement between the disabled entrepreneur community and the financial services sector in the United Kingdom, to build stronger relationships between disabled businesses and the financial institutions that support them. The signatories to this code will open up opportunities for disabled entrepreneurs through committing to implementing inclusive design principles, sharing evidence, supporting disabled founders and increasing activity to support disabled representation.
By building these relationships and championing diversity, equity and inclusion, we can empower disabled entrepreneurs and boost the entrepreneurial landscape as a whole.
The code’s founding signatories include Lloyds Banking Group, NatWest, Barclays and HSBC UK. Current delivery partners include UK Finance, the British Business Bank and Small Business Britain.
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Draft Companies and Limited Liability Partnerships (Protection and Disclosure of Information and Consequential Amendments) Regulations 2024
Gareth Thomas Excerpts(2 weeks, 6 days ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
I beg to move,
That the Committee has considered the draft Companies and Limited Liability Partnerships (Protection and Disclosure of Information and Consequential Amendments) Regulations 2024.
It is a particular joy, Mr Efford, to serve under your chairmanship in a statutory instrument debate—for the first time, I think. The regulations, which are part of a programme to implement the Economic Crime and Corporate Transparency Act 2023, were laid before the House on 31 October. The Government are committed to tackling economic crime and enhancing the UK’s standing as a place where legitimate business thrives. The reforms in the 2023 Act support that by reforming the way in which Companies House operates.
There has already been much progress. In March, stricter rules and checks were introduced; that is already helping Companies House to cleanse the register of fraudulent filings. Companies House’s organisational transformation is also in full swing, with the expansion of its intelligence functions and relationship building with law enforcement agencies. Significant advances have, then, already been made, but much remains to be done to make all the reforms a reality. This SI is part of the next phase of reform.
It is a key principle that individuals running companies and other entities should register their details so that they are contactable and can be held to account for the entity’s affairs. However, disclosure of personal information on the public register can lead to a risk of fraud and identity theft or put individuals at risk for other reasons, such as in cases of domestic abuse. Currently, in certain cases, an individual can apply for protection of their residential address by the registrar; that prevents it from being made publicly available. However, the current legislation does not allow protection when a residential address was formerly used as a company’s registered office address. Companies House regularly receives requests for such protection, including from survivors of domestic abuse, police officers, judges and even Members of this House.
These regulations will deliver the first of several reforms to enhance the protection of personal information. The regulations allow applications to protect a residential address when it was previously used as a company’s registered office address. The statutory instrument also caters for the scenario in which a residential address was used as a dissolved company’s registered office address at the point of the company’s dissolution. In such cases, an application may only be made six months after the company’s dissolution. That is to balance privacy concerns against the interests of third parties who might need to restore the dissolved company to the register in order to pursue a claim against it; examples include creditors and personal injury claimants.
Those applying to court to restore a dissolved company to the register need the company’s registered office address as part of the court process. If the registered office address of a dissolved company has been protected, this instrument will also allow the registrar to disclose that address. To do so, the registrar must be satisfied that the address is needed to make an application to restore the company to the register.
Lastly, this instrument also amends legislation that applies company law to limited liability partnerships, to ensure that the framework for limited liability partnerships keeps in step with that for companies. I commend the regulations to the Committee.
Gareth Thomas
I am grateful to the hon. Lady, who rightly said that additional resources have been given to Companies House that will help it apply not just this statutory instrument but others to help the implementation of the 2023 Act. We have carefully discussed, both across Government and with Companies House, the issue of whether there is a risk of not being able to track fraudulent individuals involved in a company. We believe that the right balance has been struck, although, of course, we will always keep these things under review.
On working with overseas territories, the hon. Lady will understand from her own experience that Government discuss legislation across Departments before it is brought forward, including with colleagues at the Foreign Office, to check that the implications of particular measures are being considered at all levels of the Government. We believe that when the package of measures under the 2023 Act are implemented in full, that will allow us to continue to crack down on economic crime while ensuring genuine privacy for individuals who rightly need it. I again commend the regulations to the Committee.
Question put and agreed to.
Future of the Post Office
Gareth Thomas Excerpts(1 month, 1 week ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
With permission, I will make a statement on the Post Office. Frankly, the Government inherited a Post Office that is simply not fit for purpose, following disinterest from the previous Government, a toxic culture in head office and years of under-investment.
Our top priority remains delivering redress to those affected by the Horizon scandal. We have already taken significant steps to increase the payment of redress, which has nearly doubled under this Government. Let me be clear with the House, though. There are still complex cases to resolve, and we have identified gaps in the compensation process, but we are beginning to make progress. As of 31 October, £438 million has been paid to over 3,100 claimants. In July, we launched the new Horizon convictions redress scheme for victims whose convictions were overturned by legislation, and we have announced our intention to set up an appeals system for the much-criticised Horizon shortfall scheme.
We were clear in our manifesto that we will work to strengthen the post office network in consultation with postmasters, trade unions and customers. The post office network provides critical services that are valued by communities across the whole of the UK. Their essential services go beyond post; they provide access to cash, banking and other financial services too. This Government recognise that access to cash remains particularly important to millions of people across the UK. Through its network of 11,500 branches across the UK, the Post Office continues to provide vital banking services to communities and businesses alike through the banking framework, and to protect access to cash.
I know how highly this House rightly values postmasters and what they provide day in and day out to the communities they serve, but we have to recognise that the Post Office is far from perfect. We have seen this from the evidence given at the inquiry. It is clear that there needs to be a significant cultural change at the Post Office to ensure that it genuinely prioritises the needs of postmasters and delivers customers’ needs far into the future. It is also clear that more needs to be done to rebuild trust within the business and with the public who depend on its services. It is also no secret that the business is facing commercial challenges. Nearly half of its branches are not profitable or only make a small profit from the Post Office business, postmaster pay has not increased materially for a decade, and the company has a high cost base and needs to transform its IT system.
Earlier today, Nigel Railton set out his ambition for the future of the Post Office, in his role as its chair. Postmasters have to be placed front and centre of the Post Office, and we agree that the culture of Post Office headquarters, in particular, needs to change fundamentally to deliver that. As part of this, the Post Office plans to reduce central costs and look seriously at other ways to deliver efficiencies, which should enable real-terms increases in postmaster pay.
Mr Railton’s ambitions are a new deal for postmasters that puts postmasters at the heart of the Post Office. There will be stronger postmaster engagement in the running of the business. As part of this, a new postmaster panel will be established to enable current postmasters to work with the company to improve the support and training provided to postmasters. The Post Office will also set up a new consultative council that will work with the Post Office’s senior management on how these new plans are taken forward, to provide genuine challenge and maintain focus on the needs of postmasters. Mr Railton’s plan seeks to makes changes to the business, with the ambition of significantly increasing postmaster remuneration, and it sets out an intention to transform the service and support that postmasters receive from the Post Office.
No decisions to close any or all of the remaining directly managed branches have been taken. The Post Office will continue to deliver on the 11,500 minimum branches requirement set by Government. We have made it clear to the Post Office that we expect it to consult postmasters, trade unions and other stakeholders before any individual decisions are taken. Aspects of the plans are also subject to Government funding and the outcomes of the upcoming spending review.
Lastly, we have already set out our plan to publish a Green Paper to consult the public on the long-term future of the Post Office, not least on how it should be governed after a decade of decline. Doing nothing at the Post Office is simply not an option. There is more work to be done, but there has to be change. I commend this statement to the House.
Gareth Thomas
I am grateful to the shadow Minister for some of his comments. I am happy to confirm that I will keep the House updated on work around the future of the Post Office, as well as, even more importantly, on the work to ensure that all those sub-postmasters who were the victims of the Horizon scandal get full and fair redress. On that point, I should say at the outset that I have met a series of sub-postmasters who were victims of the Horizon scandal, and each of them certainly left their mark on me. Their stories will stay with me for a very long time, and in that regard I am sure that I speak for the whole House, given the conversations that Members have had with individual sub-postmasters in their constituencies. I am therefore acutely aware of my responsibility, and the Government’s responsibility more generally, to follow through on our commitment to speed up redress.
The number of cases that have been settled with full and fair compensation has nearly doubled in the four months since we came into government, compared with the four months before. We have taken a series of additional steps to try to make it easier for sub-postmasters who were the victims of the scandal to get full and fair redress quickly, not least by fixing some payments for those applying under the Horizon shortfall scheme and similarly fixing some payments under the Horizon convictions redress scheme, which we launched back in July.
The hon. Gentleman’s wider point about the Budget’s impact on the high street sounded like he was replaying his lines from last week’s Budget debate. I recall him being the right-hand man to Kwasi Kwarteng, who helped to do huge damage to businesses up and down the country and helped to drive interest rates to a 16-year high, so I gently suggest that he has more work to do to be convincing on his support for businesses.
I hope the hon. Gentleman is willing to take responsibility for another impact, because more than 9,500 bank branches have closed over the past 14 years, which has had a considerable impact on the future of the high street. With Nigel Railton, our plan is to improve banking services and to roll out banking hubs, which I hope will make a significant difference.
On the Budget more generally, given the financial mess in which the Conservatives left the country and given the lack of money set aside for Horizon compensation, I think the hon. Gentleman should be a little more honest to this House about his responsibility for the scale of the mess we inherited.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Chair of the Business and Trade Committee.
Gareth Thomas
I welcome that the Committee’s first act is to look at redress for sub-postmasters who were victims of the Horizon scandal. I will happily appear next week to talk through where we are on compensation payments.
My right hon. Friend is right to say that one of the bright spots in the Post Office’s future lies in banking, and the continuing commitment of its sub-postmasters is the brightest spot. With the right support from the financial services industry, there is clearly more that the Post Office could offer on the high street through banking hubs and the post office network. We will work with the Post Office, and the banks have a particular responsibility, given how many bank branches have closed, to work constructively with the Post Office to improve the banking offer on the high street.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Gareth Thomas
I underline that no decision has been taken on any or all the directly managed branches. However, these branches cost significantly more to run than those run by franchisees. We have made it clear to the Post Office that, as it reviews these costs, it must talk to sub-postmasters, trade unions and other stakeholders.
The more general point about ensuring that people in rural areas can access a post office branch is well understood within the Department and across Government. There has been no decision to change the commitment to run 11,500 branches or to change the level of Government funding provided to run the network across the country.
I agree with the hon. Member for Chippenham (Sarah Gibson) that the Post Office can do more. That is one reason why we committed in opposition—and are delivering in government—to rolling out more banking hubs, which will be run by the Post Office. She made an interesting point about digital exclusion and the Post Office’s potential to do more in that regard.
Lastly, given my background, I am interested in mutualisation, but I hope the hon. Lady will recognise that there are significant challenges in determining whether mutualisation is a realistic possibility at this stage. One reason for our commitment to publishing a Green Paper next year is to explore these issues in more detail.
Karl Turner (Kingston upon Hull East) (Lab)
My hon. Friend is insistent that the Post Office continues to play a vital role in our communities. Given that the Horizon inquiry finishes today, will he say more about how sub-postmasters will now be considered by the Post Office in a way that, frankly, they have never been before?
Gareth Thomas
Each time I have met a sub-postmaster who was a victim of the Horizon scandal, I have been shocked by the way the Post Office treated them. I am sure other Members share that sentiment, having spoken to sub-postmasters in their constituencies who were also victims of the scandal.
The Post Office’s culture must change fundamentally. I welcome Mr Railton’s plan to set up both a consultative council, to work with sub-postmasters on the Post Office’s commercial future, and a postmaster panel to provide more training and support for postmasters. One of the challenges for the Government, which is why we have committed to publishing a Green Paper, is to think through how we lock in that culture change. My hon. Friend, and indeed other Members, will be very welcome to engage with us during that Green Paper process.
Bob Blackman (Harrow East) (Con)
There is a massive difference between Crown post offices and sub-post offices. Crown post offices are more expensive to run: they offer a bigger range of services and they are dedicated to the work of the Post Office. Given those costs, the Minister will know that several Crown post offices in his constituency and in mine are under threat. Will he give a commitment to the House that none of those Crown post offices will be downgraded before the Green Paper is issued and the future of the Post Office is decided?
Gareth Thomas
As I have already made clear, no decisions have been taken to close any directly managed branch. There is a need to look at the costs that the Post Office incurs going forward, in order to make it fit for purpose over the next five to 10 years. As a result, we will need to look at the future of directly managed branches, but only once Post Office managers have talked seriously with sub-postmasters, trade unions and other key stakeholders, as we have made clear to the Post Office. That is the right way to proceed. We have also made clear we will not change the commitment to provide 11,500 branches, which will ensure everybody continues to have good access to a Post Office branch in every part of the country.
Mr Clive Betts (Sheffield South East) (Lab)
During the last Parliament, some time before the Liberal Democrats took up the issue, I met with my constituent, Richard Trinder, the sub-postmaster at Handsworth post office, and, online, with some of his colleagues from across the country. They raised the issue of mutualisation. I brought that up with the previous Post Office Minister, the hon. Member for Thirsk and Malton (Kevin Hollinrake), who gave the matter positive consideration and said he would support it. I note that my hon. Friend the Minister has said exactly the same today. I know it will be some time before we get the fundamentals of the Post Office sorted out, but will the Minister say how he will engage with sub-postmasters? They are key to the issue. We need to work and look with them at how mutualisation might work, and what sort of structures they would like to see created that can make it work positively, going forward.
Gareth Thomas
I welcome my hon. Friend’s question. We need to take a number of steps in order to see mutualisation as a realistic way forward. In the first instance, there has to be a sustained change in Post Office culture about how sub-postmasters are treated. On that, the establishment of the postmaster panel and a consultative council, announced by the chair of the Post Office, Nigel Railton, are significant steps forward. I hope the sub-postmasters in my hon. Friend’s constituency will genuinely engage with those bodies. I do not think we can impose mutualisation; it must come up from the grassroots, with the Government being willing to look at that option. The changes that Post Office senior management is looking to make are a good first step in their own right, and have the potential for future positive governance change in the long run. I genuinely encourage my hon. Friend and his sub-postmasters to engage in the Green Paper process.
Martin Vickers (Brigg and Immingham) (Con)
One of the post offices on today’s list of potential closures is in Grimsby, where many of my constituents work and run businesses. The Minister rightly says that Crown post offices are more costly. I can assure him that the one in Grimsby, for example, could easily operate in much smaller premises or in premises shared with other businesses in the commercial centre of the town. Will the Minister give an assurance that he will ensure the Post Office looks at operating out of alternative premises, and cuts its costs before considering closures?
Gareth Thomas
We have made it clear to the Post Office that it has to talk to sub-postmasters, stakeholders and the trade unions about the costs associated with directly managed branches. We are committed to the requirement to ensure there is easy access to a post office branch for every community, up and down the country. We want the Post Office to continue to talk to people who want to run post offices in their communities, and we continue to encourage it to do so.
Clive Efford (Eltham and Chislehurst) (Lab)
I am a veteran of virtually every debate, urgent question and statement on this issue over more years than I dare to mention. I welcome the statement by my hon. Friend the Minister, but it is disappointing to read some of the comments about the process for sub-postmasters to apply for compensation. We hear about people who have been repeatedly asked for the same information time and again. They are being asked to provide information that is 20 years old and to respond to questions they cannot answer because the Post Office has confiscated the documents and not returned them. The solicitor who represents those postmasters says that the system is designed to wear them down. I gently ask the Minister, what we can do to improve this process for the postmasters?
Gareth Thomas
My hon. Friend makes a strong and compelling case. The criticisms that he has just articulated about the compensation process are ones I have heard directly from victims of the Horizon scandal and their legal representatives. We are looking at a series of further things that we can do to improve the compensation process. We have moved more staff in the group litigation order compensation process to help speed up redress for sub-postmasters in that scheme, whose remaining cases are more complex. Perfectly reasonably, people want to see them compensated as quickly as possible. I am optimistic that for claims that come into the GLO scheme before Christmas, we will see significant redress delivered to victims of the Horizon scandal by March.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
If sub-post offices are so much cheaper to run than Crown post offices, the Minister may wish to reflect on the fact that that is probably down to the level of remuneration for sub-postmasters. Notwithstanding what he says about no decisions having been made, it would be reassuring to those who rely on post offices and the staff who work in them, including in Kirkwall, which is on the list of those to be considered for closure, if they could be told when that decision will be made. When the Minister talks about consulting postmasters, trade unions and other stakeholders, are we safe to assume that “other stakeholders” include communities and customers? They will be looking for the full range of services and adequate physical space in which to access them.
Gareth Thomas
The right hon. Gentleman is right to bring the House’s attention back to the issue of sub-postmaster pay: there has been no material improvement in sub-postmaster pay for over a decade. If we are to see sub-postmasters genuinely treated better in the future, addressing the issue of pay is fundamental. I welcome the focus on that by the chair of the Post Office, Nigel Railton, in his speech today. I gently re-emphasise to the right hon. Gentleman that we remain committed to the Government requirement to deliver 11,500 branches, to ensure that every community has easy access to the post office branch network. Communities will absolutely need to be involved in any decisions about individual branches.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Acton lost its well used and still much missed post office in 2018, but it is home to the first ever urban Post Office-run banking hub. The trend is to co-locate services, but that seems to have drawn a blank—there are too many onerous parts to it, and businesses do not want it. So could the Minister help me investigate ways to merge the two services? The banking hub is the natural home for post office services, as it is owned by the Post Office, and, as a neighbouring MP, he could visit to cut the ribbon when we finally get postal services back to Acton, where they belong.
Gareth Thomas
My hon. Friend has always been a great champion of her constituency. I have visited the banking hub in Acton in a previous life, before the general election. I would be very happy to revisit the post office. I hear her message about co-location and I assure her I will look at that. I am sure she will continue to press me on the future of banking hubs in Acton.
Jeremy Corbyn (Islington North) (Ind)
I welcome the Minister’s statement and his assertion that the Post Office is a central part of our community. The previous administration of the Post Office seemed to glory in selling off Crown post offices and reducing the service for all of us. Earlier, the hon. Member for Harrow East (Bob Blackman) said that there should be no more closures of Crown post offices. Can the Minister commit to that, and, in the consultation process, consider reopening post offices or extending the Crown post office network to ensure that a variety of services are on offer, and that the post office is central to the life of our high streets and communities all over the country and can play a huge role in the regeneration of our town centres?
Gareth Thomas
My right hon. Friend is right to stress the importance of post office branches to the future of all our communities. In that regard, work is required from trade unions and others on highlighting the importance of banking services. I wish that work had been given more attention by my predecessor. [Interruption.] With due respect to those on the Opposition Front Bench who are heckling me, it has fallen to this Government to roll out banking hubs in a more significant way. On my right hon. Friend’s more general point about directly managed branches, as I have already said to the House, given that they cost significantly more to run, it is right that we look at those costs. No individual decisions have been taken as yet, and we have made it clear to the Post Office that it needs to consult directly with sub-postmasters, trade unions and other stakeholders.
Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
The Post Office Horizon scandal is probably one of the greatest miscarriages of justice in our history, and I congratulate the Minister on the progress that the Government have made in speeding up compensation payments to postmasters. There was also a huge failure of IT—a failure in IT procurement, IT deployment and IT management—which has undermined public confidence in technology. What steps has the Minister taken to ensure that Fujitsu is held accountable, that the lessons are learned, and that, in the future, post offices have the fantastic technology that they need to support them in their important community role?
Gareth Thomas
My hon. Friend makes a crucial point about the future of the Post Office—we must get right the technology that sub-postmasters are expected to use. There were serious problems and delays in the previous Government’s efforts to find a replacement for Horizon. We have had to bring in additional consultants to work with the Post Office to bring forward a proper replacement. More generally, on Fujitsu, we expect the Horizon inquiry to bring forward a view about the accountability of particular organisations and particular individuals. We will look at what Sir Wyn’s inquiry recommends and then make appropriate decisions on those issues.
Tim Farron (Westmorland and Lonsdale) (LD)
We are deeply alarmed that Kendal Crown post office appears on this list. Three years ago, the previous Government and the previous administration of Post Office Ltd also threatened Kendal Crown post office with closure. We won our campaign to save it, in part because Post Office Ltd conceded that there was not enough space in WH Smith in Kendal to accommodate the post office. That has not changed. Royal Mail may also lose its Kendal sorting office as a consequence of the closure. That has not changed either. What has changed is that two more high street banks—Halifax and Lloyds—have deserted Kendal town centre on the basis, they claim, that the post office down the road will be able to take up the slack. Is this not the time to give guarantees to post offices such as the one in Kendal that they will remain a Crown office for the foreseeable future to support our town and our economy?
Gareth Thomas
I say gently to the hon. Member that I absolutely recognise his point about the role that bank branches play in communities such as Kendal and about their retreat from our high streets. The banks have a responsibility to work with the Post Office to make sure that communities can have access to the banking services that they need, particularly those offered through the post office. That is one reason why we want to significantly expand the number of banking hubs. On the hon. Member’s point about the post office in Kendal, I simply underline the fact that no decisions have been made about Kendal or any other individual directly managed branch. We expect the Post Office to talk to sub-postmasters, trade unions and other stakeholders about this process, but genuinely I say to him that there are significant additional costs associated with the directly managed branches and it is right that the Post Office looks at that as well.
Jon Trickett (Normanton and Hemsworth) (Lab)
When the Minister said that the Post Office was not fit for purpose, it was hard not to agree with him, given the elite contempt that the organisation has shown for the people who worked for it. It dripped with contempt for ordinary folk. When the Minister meets the new management, will he bear in mind the experience of my constituents? I have 23 former mining villages, with chronic poverty throughout. One after another, the banks have withdrawn from every village and small township in our area. We have 20,000 people without a car and—quite honestly—a crap bus service. Many do not have access to the internet either. The only lifeline that they have is the post offices. Will the Minister ensure that there are no further closures from those villages—a withdrawal by the market or by the state—which worked so hard to create the wealth of our country in the last century?
Gareth Thomas
I am acutely aware of the responsibility of Government to ensure that every community has access to a post office branch. That is why we are continuing to provide a £50 million subsidy to the Post Office to maintain the network going forward. It is also why we think the Post Office should do more when it comes to providing banking services—it is one of the potential areas for it to grow its business. In that regard, given the retreat of bank branches from constituencies such as my hon. Friend’s, we absolutely think that the banks should work directly with the Post Office to improve the banking offer in all our communities.
Madam Deputy Speaker (Ms Nusrat Ghani)
It would help if the Minister occasionally looked at the Chair and kept his answers short so that we can get everybody in.
Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)
In my constituency, there is real concern about the loss of more rural and village branches. Can the Minister give us some assurance that he will do everything that he can to preserve this vital link and that he will look at how the Post Office can operate more like a commercial franchise operator, which would support and help postmasters to really maximise their business?
Gareth Thomas
Absolutely. I recognise that the Post Office has a particularly responsibility to work with sub-postmasters who provide a post office service in rural communities. It is one reason why we remain committed to the requirement to provide 11,500 branches across the UK. One key change that we need to see in the Post Office, and one reason why I welcome the commitments in Sir Nigel Railton’s plans today, is the commitment to a consultative council. That will, I hope, help to ensure that the voices of rural sub-postmasters and sub-postmasters more generally are heard much more directly by senior management. I also welcome the idea of a postmaster panel to provide support to sub-postmasters in general, but, in the context of this question, to rural sub-postmasters in particular.
Amanda Martin (Portsmouth North) (Lab)
I welcome the Minister’s statement, his actions on the Horizon scandal, and his commitment to the service that the Post Office provides. I also note that the list of 115 proposed closures contains Cosham in my constituency. It is shocking that the Opposition blame this Government for this, given that, under the Conservatives, closure after closure of high street banks in Cosham made post office services even more vital to our community. How will the Minister ensure that postmasters, employees and community voices are heard in the discussions about retaining this vital branch in Cosham, and about the future development and working together of our high streets, banks and post offices?
Gareth Thomas
I am grateful to my hon. Friend for her question. I hope I can reassure her that when we publish our Green Paper on the future of the Post Office next year, I will welcome the voices of sub-postmasters from Portsmouth, as well as from the rest of the country; that will help us to think through longer-term questions around the future of the Post Office. As I have already underlined a number of times, no specific decisions have been taken about individual directly managed branches. We expect the Post Office to not only look at all its costs going forward but, crucially, consult with sub-postmasters, trade unions and other stakeholders.
Chris Law (Dundee Central) (SNP)
People in my constituency and across Scotland want a post office network from which they can access essential government services, such as their pensions. We frequently hear in this House about the ever-increasing number of bank closures. The minimum of 11,500 post office branches is welcome, but I have heard little from the UK Government about individual branches, other than that there will be consultation. We need more than that; we need guarantees. People across Scotland really want to know what the Government will do to step up. More than 100 closures were announced today. Did the Government play any role at all in that? If not, why were those closures not delayed until after the Green Paper was published?
Gareth Thomas
Perhaps the hon. Gentleman did not fully hear my answer. There have been no decisions to close any individual directly managed branch. As I have said, significant additional costs come with running a directly managed branch, as opposed to a post office franchise, and it is right that the Post Office look at those costs. To make a similar point to that raised by the right hon. Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson), we recognise the responsibility to provide Post Office services to every community in Scotland and across the United Kingdom, so that communities can have easy access to post offices. That has not changed and will not change.
Josh Dean (Hertford and Stortford) (Lab)
I am very pleased to hear my hon. Friend’s statement, and to have this discussion about the important role that post offices play in the operation of banking hubs. Our banking hub in Ware is incredibly important to our community, and I thank him for visiting its temporary site earlier this year. Will he commit to returning there with me when it finds its permanent site, hopefully in the very near future?
Gareth Thomas
I can assure my hon. Friend that I will happily come back to visit his constituency when the banking hub there has a permanent home. I would be delighted to.
Lisa Smart (Hazel Grove) (LD)
Post offices offer more than the sum of their parts, and their loss is felt keenly when branches close, as two have done recently in my constituency, on High Lane and on the Fiveways Parade in Hazel Grove. In both cases, the postmasters felt no longer able to continue in the role, at least in part for commercial reasons. Will the Government take this opportunity to look at strengthening the role of post offices, so that they offer even more local services, and at opening up new funding opportunities to keep these vital services in our communities?
Gareth Thomas
The situation the hon. Lady describes is exactly why I welcome the fact that the new management of the Post Office is putting the issue of sub-postmaster pay front and centre in its thinking. If we do not do something to shift sub-postmaster pay upwards, we will see more sub-postmasters making the sorts of decisions that she describes. We must do something urgently to address this. The Post Office management and chair are rightly homing in on that question as fundamental to the future of the Post Office. As I have underlined, I think there is more that the Post Office could do on banking; that view is certainly shared by the Post Office senior management team, and we are working directly with them to see what more can be done.
Madam Deputy Speaker (Ms Nusrat Ghani)
If everybody gives short questions—and short answers, Minister—we can get this done in the next 15 minutes.
Peter Swallow (Bracknell) (Lab)
My constituents in Crowthorne are rightly proud of our high street, but as there is no direct access on that street to banking services or a post office branch, they struggle to access vital services. Does the Minister agree that today’s announcement highlights the need to roll out more banking hubs, while setting out a viable future for post offices, so that communities such as mine can access the vital services they need?
Gareth Thomas
I agree with my hon. Friend that we need to see a faster roll-out of banking hubs. Given that the Conservative party sat back and did nothing while 9,500 bank branches closed, the urgency of the task of rolling out banking branches and improving the banking offer through the post office is acutely felt by my Department.
Dr Kieran Mullan (Bexhill and Battle) (Con)
The post office in Bexhill provides vital banking and other services to my constituents, and I have already been contacted by people concerned about its possible closure. Can the Minister ensure that the consultations he keeps mentioning include local communities and service users, and can he guarantee, given Labour’s manifesto commitment to strengthen the post office network, that nothing will be done to reduce the scope of post office services available to my constituents, or the time when they are available?
Gareth Thomas
I can be absolutely clear with the hon. Gentleman: I said no decision had been made on any individual directly managed branch, and that is absolutely true. We are also clear that sub-postmasters, trade unions and communities will have to be consulted about the future of directly managed branches. We want an improvement in the services that post offices can provide; that is one of the reasons for our work on banking services with the Post Office going forward.
Mr Luke Charters (York Outer) (Lab)
I recently met two constituents who are yet to receive compensation as former sub-postmasters. I felt their pain, and I felt that their pain was being compounded by the long-drawn-out process, driving mental anguish for them on a daily basis. Can my hon. Friend update the House on when the appeal system for the Horizon shortfall scheme will be up and running?
Gareth Thomas
We expect the appeals process that we announced for the Horizon shortfall scheme to be up and running soon—realistically, probably early in the new year. I say gently to my hon. Friend that I share his deep concern that there are so many sub-postmasters who are victims of the Horizon scandal, and who are still to receive their compensation and full and fair redress. We have seen an increase in the numbers getting redress, but there is more work to do; it is a challenge that we are very much focused on as a Government.
Sarah Dyke (Glastonbury and Somerton) (LD)
Street in my constituency will lose its main high street post office in early 2025. There is a new listing for another post office, but questions around its viability will now obviously arise. Can the Minister tell me how he will ensure that the Post Office is secured on a long-term, sustainable footing, to reassure my communities and rural communities like them that the vital high street services that they rely on will be retained?
Gareth Thomas
There are a number of elements to securing the future of the Post Office. First, we must look at its commercial operation, which is why an improvement in the banking offer available through post offices, and the commitment of the banks to working with the Post Office to roll out banking hubs, is so important. Secondly, we must look at how we can increase sub-postmaster pay, so that more people are willing to come forward to run post office branches. Thirdly, we must look at the Post Office’s costs, and how they can be better managed.
Tristan Osborne (Chatham and Aylesford) (Lab)
I welcome the Minister’s statement. In a changing context in which banking hubs are being looked at for places across the country, does he agree that we need to pursue them very aggressively and assertively, and also look at shared provision with local councils—for instance, at using libraries and other centres, so that we can spread the cost and keep these essential services open, where possible?
Gareth Thomas
I am absolutely open to any idea that will help to speed up the roll-out of banking hubs; I recognise that they are crucial for communities up and down the UK. If he has particular ideas, I am very happy to talk to him about them separately.
Steff Aquarone (North Norfolk) (LD)
I am very pleased that Horning post office in my constituency will reopen later this month, following months of hard work by the local community. That shows that there is an important future for our local post offices in rural North Norfolk, and that future includes supporting bank hubs in our market towns. The people of Holt are looking forward eagerly to the opening of their hub soon. Can the Minister tell me his personal vision for the future of the Post Office, and does that include supporting vital local services in our rural areas?
Gareth Thomas
I am delighted to hear the news about a post office branch opening in the hon. Gentleman’s constituency; that will be of great comfort to his constituents. As I set out, one way in which we can improve the services available to all communities through the post office is better provision of banking services. We are actively working with the Post Office on that. The roll-out of banking hubs will also help to improve the quality of the service that post offices can provide for all our communities.
Lee Barron (Corby and East Northamptonshire) (Lab)
I welcome the assurances that the Minister has given. The Post Office will go about making the 115 potential branch closures and 1,000 job losses either by closing the Crown post office network, or by franchising it off. In Corby, New Post Office Square opened up when the town centre, which had a post office, was rejuvenated. There is now no post office in New Post Office Square, because it was franchised into the back of a shop, and that shop decided not to extend the franchise. We need an assurance from the Post Office that it will not turn around and take the numbers away from us. Does the Minister agree that the Post Office must take into account the Government’s priorities for high streets, and ensure that whatever it is planning fits around the Green Paper proposed for next year?
Gareth Thomas
I hope my hon. Friend will forgive me, but I am not aware of the exact circumstances in his constituency, though I am happy to meet him to talk through them, if he thinks that would be useful. As I hope I have set out, we remain absolutely committed to ensuring that every community has good access to a post office branch and all the services that it provides. That is as true for his constituents as it is for the constituents of Members across the House.
Helen Morgan (North Shropshire) (LD)
Oswestry in my constituency is the second largest town in Shropshire and serves a vast rural area stretching into mid-Wales and across north Shropshire. It is digitally excluded because it often does not have adequate mobile signal or broadband services, so the full range of Crown post office services are absolutely essential there. Will the Minister assure me that the full range of Crown post office services will remain in Oswestry, and that the Post Office will take into account the importance of retaining vital services in rural areas, which are being deserted by commercial organisations such as banks?
Gareth Thomas
I am absolutely clear that the Government recognise and accept our continuing responsibility to ensure that post office services are available to every community across the UK, and that there is easy access to a post office branch in rural and urban areas alike; we remain absolutely committed to that. As I said, no decision has been taken to close any individual directly managed branch, but it is right that the Post Office considers all its costs if we are to achieve an increase in sub-postmaster pay. In that regard, and on the hon. Lady’s wider point, it is important that the Post Office management consults properly—previous management teams have not always done so—with sub-postmasters, trade unions and other stakeholders.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
I welcome the Minister’s comments on the Horizon scandal, which affected sub-postmasters in every constituency, including mine. However, I must express concern about Stornoway post office being on the list of the 115 possible closures. The loss of the main post office would be a dreadful blow for the town, so I urge the Minister and the Post Office to ensure that islanders have full physical access to Crown post office services. All options must be considered—except closure.
Gareth Thomas
As I have said, we are clear about our continuing commitment to ensuring that every community, no matter where in the UK, has access to post office services. That commitment has not changed. Indeed, we want to improve the quality of the offer from the Post Office—hence my comments about banking services. However, if it would be helpful, I would be very happy to meet my hon. Friend to discuss his concerns about his community.
Jim Shannon (Strangford) (DUP)
I very much welcome the Minister’s commitment to the Post Office compensation—he laid out clearly the way forward, and we were all pleased to hear it. However, I must register my concern that post office branches in Newtownards in my constituency, and in Bangor in the neighbouring constituency of North Down, are poised to close, leaving more than 100,000 people in Northern Ireland with no main post office. That will do nothing but reduce services for the most vulnerable in Northern Ireland and must be strenuously opposed. What steps will be taken between now and the final decision to ensure that the Government do not leave tens of thousands of people without a full service? The Post Office acknowledges the limitations of post office hubs in garages and shops. They cannot cope, so big post offices must remain open.
Gareth Thomas
I welcome the hon. Gentleman’s comments, as ever, and I recognise the concerns of his constituents. As I said, we remain absolutely committed to ensuring that every community has good access to post office services going forward, and no decision has been made about directly managed branch closures. If we are to achieve the objective of putting the Post Office on a genuinely sustainable footing and increasing sub-postmaster pay, we must consider all Post Office costs and how we can genuinely deliver, to all communities, a better future for the Post Office. We are doing that, but I am conscious of the strong point that he has made about his constituents.
Mr Mark Sewards (Leeds South West and Morley) (Lab)
Residents in Morley are extremely alarmed that Morley post office on Queen Street is one of those that could be closed. Queen Street is the beating heart of Morley, and many people come into the town centre to use the services at the post office before going on to other shops. Bank branches have left our town, too, and on their way out, they pointed at the post office and said, “Don’t worry, you’ve got services there.” Well, now we are worried. Will the Minister restate what he has already said several times about no decisions having been made on closures, and will he meet me to talk about what we can to do keep Morley post office functioning?
Gareth Thomas
I will happily meet my hon. Friend. As I have said, no decision to close individual directly managed branches in full has been taken. It is right that the Post Office considers the cost of providing directly managed branches going forward if we are to achieve the objective of putting it on a sustainable footing. However, we are absolutely clear that every community in the UK needs to be able to retain good access to post office services, and we are looking at what else we can do with the Post Office senior management team to improve post office services, not least in banking.
Export and Investment Guarantees
Gareth Thomas Excerpts(1 month, 1 week ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
I beg to move,
That the draft Export and Investment Guarantees (Limit on Exports and Insurance Commitments) Order 2024, which was laid before this House on 14 October, be approved.
Madam Deputy Speaker (Judith Cummins)
With this we will take the following motions:
That the draft Export and Investment Guarantees (Limit on Exports and Insurance Commitments) (No. 2) Order 2024, which was laid before this House on 14 October, be approved.
That the draft Export and Investment Guarantees (Limit on Exports and Insurance Commitments) (No. 3) Order 2024, which was laid before this House on 14 October, be approved.
Gareth Thomas
These orders are technical in nature and relate to the capacity of UK Export Finance—which is the operating name of the Export Credits Guarantee Department, the UK’s export credit agency—to support current and prospective exporters. As hon. and right hon. Members will know, UK Export Finance has a mandate to support UK exporters with finance and insurance, helping them to compete internationally. UK Export Finance, or UKEF for short, was established more than 100 years ago and is the world’s oldest export credit agency. Its support has proved crucial to British exporters throughout its existence.
UKEF helps exporters to win international contracts, to fulfil export orders, to create jobs and to get paid. Last year it provided £8.8 billion in finance to support UK exporters, and supported up to 41,000 jobs around the UK as a result. Some 88% of the businesses it supported last year were small and medium-sized enterprises. UKEF provides its finance at no net cost to the taxpayer; in fact, it generates a return for the Exchequer, with £705 million returned to the Treasury over the last three years.
The Export and Investment Guarantees Act 1991, as amended in 2015, confers powers on the Secretary of State to provide finance that is conducive to exports, and to provide insurance in connection with overseas investments. Those powers are exercised and performed through UKEF. Subject to some limited exceptions, section 6(1) of the Act imposes a limit on the aggregate amount of financial commitments that can be made under those powers—in other words, the total size of UKEF’s financial portfolio. At present, the limit stands at £67.7 billion, expressed in special drawing rights. Special drawing rights are an accounting unit for international transactions and were created by the International Monetary Fund; their value is based on a grouping of five major currencies, including pound sterling, the US dollar and the euro. The sum equates to approximately £70 billion at today’s exchange rates.
Why are we seeking an increase? Well, the current limit has been in place since 2015, and UK Export Finance’s portfolio size is now drawing close to it. Were UKEF to reach its limit, it would have to pause its vital financing activity, which, in turn, would cut off its support to prospective exporters. I should note that, in practice, the size of UKEF’s portfolio is subject to a limit set by the Treasury. This limit, called the maximum commitment limit, must be lower than the statutory limit set out in legislation. I am therefore proposing these statutory instruments to increase the commitment limit in section 6(1), and to avoid the future risk of having to turn away applications for UKEF support.
Section 6 of the Act enables the Secretary of State, by order, to further increase the limit by up to £5 billion. The power to make such an order may be exercised on up to three occasions and has not been used before. I am therefore seeking approval of these three orders together, which would allow us to increase UKEF’s statutory commitment limit by £5 billion per order, for a total of £15 billion. Inflation since the limit was last amended and the increasing transaction sizes that the Department is supporting mean that the Department is now approaching that legal limit.
Laying these SIs together is about future-proofing UKEF and giving it sufficient legal capacity to provide certainty for its customers. Again, it is a decision for Treasury Ministers to then confirm the actual commitment limit under which the Department operates. After they have come into force, the three instruments taken together will increase the commitment limit to 82.7 billion special drawing rights, which converts to around £84 billion pounds at today’s exchange rates.
UK Export Finance is delivering an ambitious five-year business plan that aligns with this Government’s missions, supporting growth and prosperity for UK exporters and their communities across the country, and doing so at no net cost to the taxpayer, but its ability to do so will be at risk without the additional legal headroom that these instruments provide. These changes will therefore allow UK Export Finance to continue meeting its mandate in supporting exports and driving growth—something that I am sure those in all parts of the House will join me in welcoming. I commend these orders to the House.
Gareth Thomas
I welcome the opportunity to close the debate. I thank the hon. Members for West Worcestershire (Dame Harriett Baldwin) and for Wokingham (Clive Jones) for their comments and questions, which I will try to answer before I make some final remarks about the statutory instruments.
The hon. Member for West Worcestershire asked if the UK Government support fair and free trade. I reconfirm our absolute commitment to supporting fair and free trade. We have made it very clear that trade is one of the key planks of the work of the Department. My right hon. Friend the Minister for Trade Policy and Economic Security, reporting to the Secretary of State, is leading work on a trade White Paper, which we will bring forward in due course. I am sure the hon. Lady will see the Government’s commitment to fair and free trade reflected in that document.
As the hon. Lady knows, when we were in opposition, we supported accession to the comprehensive and progressive agreement for trans-Pacific partnership. We are working to agree a number of free trade deals, for example with Switzerland, India and South Korea. She asked me about the trade envoys programme. We are sympathetic to such a programme continuing. We are looking at it closely, as she would expect, and we will bring forward an update to the House in due course.
The hon. Lady asked me about our views on trade with the United States. We recognise that the US is already a key export market for many British firms, and we want to look at all opportunities to increase trade with the US. I will come back to legislative reform more generally, but she is right to underline the message that we have to be on the side of wealth creators in this country if we want to see growth, more jobs and better pay for those in our communities. Winning export orders is fundamental to delivering growth, so a substantial amount of time in the Department is being spent thinking through what else we can do to support British businesses to win export orders overseas. UK Export Finance is one part, but not the only part, of that story, and we will bring forward our plans in due course.
Dame Harriett Baldwin
I understand that Crawford Falconer, who had been in charge of a lot of the trade negotiations, is leaving the Department. Will the Minister tell the House what his plans are to fill that role?
Gareth Thomas
I pay tribute to Crawford Falconer for his work for the Department and the country. He has already fed into the work that my right hon. Friend the Minister for Trade Policy and Economic Security is leading on the trade White Paper. Others in the Department are actively leading negotiations with a number of countries in support of our free trade negotiations and our ambitions for new free and fair trade agreements.
The hon. Lady asked me whether there is a need for further legislative reform to UK Export Finance. The Secretary of State has instructed UKEF officials to explore how we can increase the organisation’s overall financial capacity. That work is under way. We are committed to ensuring that UKEF can support British exporters now and into the future, but these statutory instruments are key in the short and medium term to helping it to continue to do its job.
The hon. Member for Wokingham (Clive Jones) gives me the opportunity to plug International Trade Week, which is taking place this week. I am glad to see that he at least has taken the advice that I wrote out for every Member of the House, encouraging them to reach out to exporters in their constituency, to support what they are doing already and to make them aware of further help that the UK Government could give them to win new export orders overseas. One message that we have sought to get across during International Trade Week is that we are absolutely committed to a reset in our trade relationship with the European Union. There is no doubt that the poor-quality trade deal with Europe that the previous Government negotiated has held back many British businesses from winning export orders in Europe. We need to reset the trade relationship with Europe in very practical terms. We committed, for example, to negotiating a sanitary and phytosanitary agreement, and to exploring more opportunities for mutual recognition of professional qualifications. We see next year’s trade and co-operation agreement review as another opportunity to look at what we can do to reduce the difficulties that businesses face in trading with our nearest neighbours.
The Conservatives talked down the opportunities for British businesses to win export orders in our nearest overseas markets. That was a huge mistake; businesses have told us so. We are actively looking at what we can do to change that.
If the hon. Member for Wokingham gives any message to the representatives of the company that he is visiting tomorrow, let it be this: please encourage them to look again at Europe. We recognise that there are difficulties, but we want to work with business to sort them out, because we genuinely believe that there are real opportunities. He asked whether I would meet him and representatives from Wokingham businesses. I would be very happy to. In that spirit, I commend the draft orders to the House.
Question put and agreed to.
Export and Investment Guarantees
Resolved,
That the draft Export and Investment Guarantees (Limit on Exports and Insurance Commitments) (No. 2) Order 2024, which was laid before this House on 14 October, be approved.
That the draft Export and Investment Guarantees (Limit on Exports and Insurance Commitments) (No. 3) Order 2024, which was laid before this House on 14 October, be approved.—(Martin McCluskey.)
Post Office
Gareth Thomas Excerpts(1 month, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The Horizon scandal represents one of the biggest miscarriages of justice of our time. The Government’s priority is to get redress to those affected as quickly as possible and are doing all they can to increase the pace of redress across all schemes. We continue to review each scheme to explore ways to speed up redress. To ensure postmasters are receiving redress as quickly as possible, we are making up-front fixed offers and providing interim and partial payments wherever possible. As of 31 October 2024, approximately £438 million has been paid to over 3,100 claimants across four schemes. The total amount of redress paid out has increased by over 85% since the end of June. There is still a lot more to do.
While we continue to address the past, now is also the time to consider the future of the Post Office. Exploring ways to strengthen the Post Office network is a manifesto commitment for the Government and a priority for the Department for Business and Trade. The UK-wide Post Office branch network is an essential part of the UK’s economic infrastructure, supporting high streets, businesses, and contributing directly to the Government’s mission to kick-start economic growth.
The company has undoubtedly had a challenging period and it is clear the Post Office is at a critical juncture. While Post Office continues its work to make the company more efficient, it is also important that Government have a clear vision for the future direction of the Post Office to make sure that this public asset delivers what is important to the British public. Given the complexity and scale of some of the challenges being faced by the Post Office, the Department has appointed external consultants to support this work.
The Government will be carefully considering what customers, communities and postmasters would like to see from a modern Post Office network. Given the Post Office is a public asset, it is essential the public have their say on the future direction. As such, the Government plan to publish a Green Paper to seek the public’s views on a range of different proposals in the first half of 2025.
[HCWS184]
Oral Answers to Questions
Gareth Thomas Excerpts(1 month, 3 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
David Pinto-Duschinsky (Hendon) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Revitalising our high streets is a priority for this Government, and I and the Secretary of State have spoken to colleagues across Whitehall to ensure that we are working together to create better conditions over the long term for high street businesses to thrive. That means addressing antisocial behaviour and crime, rolling out banking hubs, stamping out late payments, empowering communities to make the most of vacant properties, strengthening the post office network, reforming the apprenticeship levy and, as the Chancellor confirmed yesterday, reforming business rates.
Abtisam Mohamed
There are just short of 5,500 businesses in Sheffield Central, and more than 80% of them are micro-businesses employing fewer than 10 employees. These are the engines of local economic growth in our area, and they provide vital services in our community. Many businesses in my constituency welcome yesterday’s announcement of permanently lower business rates for hospitality, retail and leisure properties from 2026-27. Will the Minister outline what further steps he is taking with the Chancellor to create a fairer business rates system, so we can ensure that our high streets thrive permanently?
Gareth Thomas
I am grateful to my hon. Friend for her question, and I think this is the first time I have had the chance to congratulate her on her election to this House. She is absolutely right that if we are to see our high streets thrive, we need to ensure there is a genuinely level playing field for businesses online and those on the high street. As the Chancellor announced yesterday, to deliver that pledge we intend to introduce permanently lower tax rates for retail, hospitality and leisure properties from 2026-27. To fund that, we intend to introduce a large business multiplier from 2026-27, which will apply a higher rate on the most valuable properties. That will capture the majority of large distribution warehouses, including those used by the online giants. However, we want to go further, so the Chancellor published a discussion paper yesterday asking businesses for further ideas on the reform of business rates.
Sojan Joseph
Small and independent shops are the lifeblood of our high streets, and they make the communities in my Ashford constituency special. Far too many high street businesses have been feeling the squeeze over recent years, which has led to empty units being an all too familiar sight. I welcome the measures announced in yesterday’s Budget, particularly the reform of business rates. Will my hon. Friend update the House on what the Government are doing to empower local communities to acquire empty units?
Gareth Thomas
Again, I congratulate my hon. Friend on his election to this House. Colleagues across Whitehall are bringing forward plans to introduce high street rental auctions, which will bring vacant units back into use. That should make town centres more accessible and affordable for tenants. We will also take steps to crack down on antisocial behaviour. We saw a huge increase in antisocial behaviour and crime in our high streets under the Conservative party, and we are determined to take steps to crack down on that.
David Pinto-Duschinsky
I thank my hon. Friend for his previous answers. We are blessed with some fantastic high streets in Hendon, such as Mill Hill Broadway, Station Road and the High Street in Edgware, Watling Avenue in Burnt Oak, Brent Street in Hendon and Vivian Avenue in West Hendon. However, when I talk to business owners, they all too often tell me that they are struggling to find and retain the staff they need to grow successfully. What steps is the Department taking to make sure small businesses can get the skilled staff they need not just to survive, but to thrive?
Gareth Thomas
I welcome my hon. Friend’s question, and I know the high streets in his constituency that he mentioned, as they are very close to Britain’s greatest constituency. He will be aware that we have already taken steps to help businesses recruit more skilled staff. It is one of the reasons why we have established Skills England. We have also taken steps to reform the apprenticeship levy, and earlier this week the Prime Minister brought forward plans to help people get back to work.
Mims Davies (East Grinstead and Uckfield) (Con)
The anti-growth coalition on Mid Sussex district council, led by the Lib Dems, Labour, independents and Greens, is bringing in Sunday, bank holiday and evening town centre parking charges on top of a 30% rise, and there is the sword of Damocles of possible village car parking charges. Will the Minister reiterate to councils that are determined to derail his growth mission that such draconian measures on our high streets will do exactly the opposite of what he and his Budget are apparently looking to achieve, and will he perhaps meet them?
Gareth Thomas
I gently suggest to the hon. Lady that those making up the anti-growth coalition are sat on her side of the House, and I gently point out to her that the highest number of businesses to go bust for 30 years was under the Conservative party last year. I would also happily ask her to use her influence with the Conservative-led council in my constituency, which is bringing in parking charges that will certainly damage the night-time economy.
Jim Shannon (Strangford) (DUP)
I welcome some things that the Minister has referred to regarding high street businesses, and I thank him for that, but there are many other matters. For example, in Newtownards family businesses make up a great many of the attractive high street businesses, such as Wardens, Knotts Bakery and the family butcher, and they are important, as they are in Ballynahinch. Has the Minister had the opportunity to talk to the chamber of trade in Newtownards, which is working well? Other chambers of trade in my constituency can also contribute, so has there been an opportunity to speak to them to get their ideas about the way forward?
Gareth Thomas
The hon. Gentleman is an assiduous champion for his constituency in this House. If he wants to bring his chamber of commerce to meet me to discuss issues in his constituency in more detail, I will happily make time to meet him and them.
Mr Speaker
We are 10 minutes gone and still on Question 1. We need to speed up a little bit. If the Minister could look at me, that would be helpful, so that we are going through the third person. I know that Mr Shannon is popular, but even so, it should go through me. I call the Liberal Democrat spokesperson.
Clive Jones (Wokingham) (LD)
In my constituency, the number of people shopping on our high streets has not returned to pre-covid levels, and we have lost anchor stores such as Marks & Spencer, and several banks. The Government urgently need to save our high streets, but the reduction in retail, hospitality and leisure business rates relief from 75% to 40% will come as bad news for thousands of businesses. When will the Government deliver a fundamental reform of business rates to save our high streets and end the penalising of productive investment?
Gareth Thomas
I am grateful for your guidance, Mr Speaker. While the hon. Member for Strangford (Jim Shannon) is popular, you are much more important.
I gently point out to the hon. Member for Wokingham (Clive Jones) that we have started the process of reforming business rates. We are introducing permanently lower rates for retail, hospitality and leisure from 2026-27. We have listened to businesses and kept business rates relief, and we are opening up opportunities for businesses to come forward with ideas for future reform of business rates.
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Our plan for small businesses will help them to scale up and increase productivity and growth. We are doing that by creating opportunities for businesses to compete and access the finance they need to scale, export and break into new markets. Furthermore, at yesterday’s Budget, we announced a small business Command Paper next year, which will set out more detail on how we will support small businesses.
Tony Vaughan
I welcome the Minister’s answer. One way that we can support small businesses to scale up is through infrastructure investment, so that businesses can get their goods to market more quickly. Will the Department support my campaign to shift more freight from trucks to trains, starting with the channel tunnel in my constituency, where only 10% of its freight capacity is being used at present?
Gareth Thomas
Let me take the opportunity to congratulate my hon. Friend on his election to this House. I remember well, as I am sure he does, the problems that the people and businesses of Kent had to endure when the M20 became a lorry park, thanks to a combination of poor planning by the last Government and the poor-quality trade deal they negotiated with Brussels. We certainly support the expansion of rail freight, not least as it helps to build the resilience of supply chains. I would be happy to meet him or facilitate a meeting for him with Transport Ministers, to hear more about his campaign.
Anna Dixon
Small businesses such as the Greek Corner in Shipley have benefited from Bradford council’s business growth programme, funded by the towns fund, which provides capital assistance for businesses to create new jobs. The support measures announced yesterday in the Chancellor’s Budget for local authorities and small businesses will be vital to revitalising our high streets. Does the Minister agree that local authorities working with local communities are best placed to direct investment, to help SMEs grow?
Gareth Thomas
Let me take this opportunity to congratulate my hon. Friend on her election, too. I agree that local authorities working with local communities are fundamental to supporting SMEs in local economies. That is one reason why, as well as backing local authorities in yesterday’s Budget, we are backing Tracy Brabin, the excellent Mayor of West Yorkshire, with funding to support the priorities of local communities in constituencies such as that of my hon. Friend. It is also why we are introducing measures such as high street rental auctions and a powerful community right to buy, so that local communities can start the process of reviving their high streets.
Kit Malthouse (North West Hampshire) (Con)
I draw the attention of the House to my entry in the Register of Members’ Financial Interests. The Minister mentioned that access to finance is vital for small business, but I hope he knows that the past few days have seen chaos in the motor finance market, with a number of major lenders suspending lending entirely in response to a judgment in the appeal court. This has caused consternation across the entire business lending sector. Can the Minister reassure us that the Government are fully engaged with the industry and the Financial Conduct Authority in sorting out an issue that could have a very, very significant impact on the entire sector and its supply chain?
Gareth Thomas
We are certainly looking at the issues that have arisen for the industry from the judgment. More generally on access to finance, I am sure the right hon. Gentleman will welcome our launch, at the investment summit referenced by the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), of the British Growth Partnership, which is aimed at unlocking investment in businesses that want to scale up.
Richard Foord (Honiton and Sidmouth) (LD)
Economic growth happens when micro-sized businesses become small businesses. We learned yesterday that micro-businesses that employ up to four full-time workers on the national living wage will be exempt from employers’ national insurance. Yet small businesses that employ five workers or more will be subject to employers’ national insurance. How will that measure help small businesses in the south-west to scale up and bring economic growth to the region?
Gareth Thomas
I am glad that the hon. Gentleman welcomes, I think, the measures we took in the Budget to raise employment allowance to help the very smallest firms. The Federation of Small Businesses said yesterday that it will be a very big help for small firms. On his wider point about the Budget, I gently say to him, as I am sure he knows only too well, that the economic inheritance the Government face has led to our having to make some very tough decisions. If he does not support the measures we have set out in the Budget, he needs to say how he would finance the extra investment in the NHS and in industry that we have set out.
Clive Jones (Wokingham) (LD)
Wokingham has one of the highest rates of business survival when compared with the averages for the south-east and Berkshire, but yesterday’s announcement that the Government will raise employers’ national insurance throws that into doubt. The hike is, plain and simple, a tax on jobs that will deal a hammer blow to our small businesses. What will the Government do to mitigate the impact on small businesses in my constituency and across the country?
Gareth Thomas
I say very gently to the hon. Gentleman that if he and his party are determined to oppose the measures we took in the Budget, including on employers’ national insurance contributions, they need to set out how they would fund the extra investment in the NHS, the investment in the automotive and aerospace sectors, and the measures to protect and raise living standards.
Bill Esterson (Sefton Central) (Lab)
Mr Paul Kohler (Wimbledon) (LD) [R]
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
We recognise the important role that night-time economy businesses play in supporting local economies and communities. Healthy night-time economy businesses not only support our creative industries, including musicians, DJs and performance artists, but bolster tourism and day-economy businesses. We are focused on our five-point plan to breathe life back into Britain’s high streets. That work will ensure that our high streets are great places for our businesses, supporting economic growth across the UK, including in the night-time economy.
Mr Kohler
I refer the House to my entry in the Register of Members’ Financial Interests. The hospitality industry is a crucial aspect of the night-time economy. It already faces an existential crisis, with post-Brexit labour shortages, covid debt and wage and commodity inflation. What advice would the Minister give to the hospitality industry and businesses that now face a hike in national insurance costs and, despite the headlines, a more than doubling in last year’s business rates?
Gareth Thomas
I would gently point businesses in the night-time economy to a series of measures that we took in yesterday’s Budget, including to reform business rates for the long term, from 2026-27. We listened to businesses, including those in the night-time economy, and did not abolish the business rates relief. Under the measures that we have taken, for example, the average pub with a rateable value of almost £17,000 will save over £3,300 next year.
Rachael Maskell (York Central) (Lab/Co-op)
Last Saturday night I had the opportunity to go out in York with the police. It was incredibly interesting and I am so grateful for the work that they do, and it gave me an opportunity to speak to employers. We know that, as employers, our traditional pubs are really struggling because the pubs code is not working properly. Will the Minister meet me and the Campaign for Pubs to discuss how we can improve things for those businesses?
Gareth Thomas
I will be very happy to meet my hon. Friend. I know from talking to pubs that they are also very worried about the rise in antisocial behaviour and crime in our high streets and town centres. She and the pubs and other members of the night-time economy that she works with will, I hope, be reassured by some of the measures that we have taken in the Budget to begin the process of cracking down on antisocial behaviour.
Sam Rushworth (Bishop Auckland) (Lab)
Dr Luke Evans (Hinckley and Bosworth) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
No. I gently point out to the hon. Gentleman the difficult economic inheritance that his party left this Government to sort out. We are determined to walk towards all the tough decisions his party refused to face up to in government. If he is against the increase in employers’ national insurance contributions, he needs to say how he will fund the investment we announced yesterday in the aerospace and automotive sectors, and how he would fund the extra investment that we will make in the NHS and other public services.
John Slinger (Rugby) (Lab)
Mr Speaker
Order. These are topical questions, and they are meant to be short and punchy, not speeches. I am sure we can find time for an Adjournment debate for the hon. Gentleman.
Gareth Thomas
Given that almost 9,500 bank branches closed over the past 14 years, on the Conservative party’s watch, it has increasingly been left to the Post Office to provide vital banking services on the high street. I am sure the banking industry recognises its responsibility to work with us to ensure that sub-postmasters, whose pay has not increased for a decade, and the Post Office have what they need to help meet the critical cash and banking needs of all our constituents.
Martin Vickers (Brigg and Immingham) (Con)
Although yesterday’s announcements may dampen businesses’ expansion plans, many businesses in my constituency and elsewhere find it difficult to expand because of national grid connections. What are Ministers doing to engage with the Department for Energy Security and Net Zero and National Grid to ensure that connections are available?
Josh Babarinde (Eastbourne) (LD)
Some 29% of jobs in Eastbourne, the sunniest town in the UK, are connected to the hospitality sector, but many businesses in that sector have expressed concerns about yesterday’s Budget, which UK Hospitality has described as the “latest blow for hospitality”. Will the Minister meet me and local hospitality businesses to discuss those concerns? I declare an interest as the patron of the Eastbourne Hospitality Association.
Gareth Thomas
I would be very happy to meet the hon. Gentleman and the Eastbourne Hospitality Association to discuss the concerns that he has articulated. I gently say to him, as other Ministers have pointed out, that we faced a tough economic inheritance, and had to make very difficult decisions in the Budget yesterday.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
Gareth Thomas
When we were in opposition, we set out a five-point plan to help with the revival of high streets. We are working to bring forward that plan. My hon. Friend will see more detail in the small business strategy Command Paper that we are committed to publishing next year.
Lincoln Jopp (Spelthorne) (Con)
We have an anomalous situation in Spelthorne whereby people can use an oyster card to pay for six different red buses, but not the train. That is crippling small businesses and people going into London. Will Ministers in the Department use their combined might to lobby on my behalf and get me a meeting with the Minister for Rail, so that we can get Spelthorne into the correct zone?
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
On Tuesday, we will hear from Sir Alan Bates and other victims of the Horizon scandal, which continues to deepen. In September, we learned that there will be 100 more convictions quashed than we originally thought, and yesterday the bill for redress went up by half a billion pounds. Have all the victims now come forward, and are there any gaps left in the schemes for redress?
Gareth Thomas
I welcome the decision by my right hon. Friend’s Select Committee to take a further look at the issue. It is a priority for the Department to speed up the compensation process. Victims are still coming forward, and we are actively looking at whether all those who come forward are covered by the compensation schemes. We have asked the Post Office to write to all those sub-postmasters who have not yet come forward to see if they are eligible for compensation.
Kit Malthouse (North West Hampshire) (Con)
We should all welcome the work of both Governments that resulted in the announcement of £63 billion of inward investment into the UK. However, since then, as a number of Members have pointed out, we have had significant new regulation in the labour market and massive new taxes on businesses. If any of those investors now change their minds, will the Secretary of State come to the House and inform us, please?
Jim Shannon (Strangford) (DUP)
What discussions have there been with Invest NI in relation to supporting small Northern Ireland businesses in the digital evolution, to help them adapt and make improvements with digital technology to ensure the smooth running of their businesses?
Gareth Thomas
We have held discussions with a range of organisations on exactly that issue. I promised the hon. Gentleman earlier that I would meet him. If he wants to add that to the list of subjects that we talk about, I am happy for him to do so.
Sally Jameson (Doncaster Central) (Lab/Co-op)
In Doncaster, we have an innovative chamber of commerce and a fantastic set of local businesses. As well as the much-needed upgrade to workers’ rights, can the Minister update the House on what we are doing to kickstart a skills revolution for businesses in Doncaster and across the country? Can he also update the House on what he is doing to work across Departments to ensure that happens?
Gareth Thomas
As others across Whitehall have already set out, we have established Skills England and begun the process of reforming the apprenticeship levy to help businesses get better access to the skills they need.