Cider Industry: Duty Changes

Geraint Davies Excerpts

Wednesday 1st December 2021 Westminster Hall

[Geraint Davies (in the Chair)]

I remind Members that they are expected to wear face coverings when they are not speaking in the debate. That is in line with current Government guidance and that of the House of Commons Commission. I also remind Members that they are asked by the House to take a covid lateral flow test twice a week if they are coming on to the parliamentary estate. That can be done at the testing centre in the House or at home. Please give each other and members of staff space when seated and when entering and leaving the Chamber.

I will call Bill Wiggin to move the motion. I will then call the Minister to respond. There will not be an opportunity for the Member in charge to wind up, as is the convention in 30-minute debates.

Working People’s Finances: Government Policy

Geraint Davies Excerpts

Tuesday 21st September 2021 Commons Chamber

[Richard Thomson (Gordon) (SNP)]

It is a pleasure to take part in this timely debate, as we surely head towards a cold Tory winter of discontent, of high prices, shortages and rising unemployment. I am privileged to represent a constituency in the north-east of Scotland, which is generally regarded as a prosperous area. It has certainly suffered from the oil and gas downturn over the past few years. It is still to benefit from the transition to renewable energy technologies that we all fervently hope to see, and it has certainly borne the brunt of the austerity agenda we have experienced in recent years. My constituency is a mix of urban and rural, taking in a slice of the north of the city of Aberdeen and extending out into the rural countryside, with its mix of small towns and villages. Although the economic statistics might show that it has one of the highest levels of gross value added in Scotland, never mind the UK and never mind Europe, that hides the reality of the experience for far too many who live there. Someone who went to the go-to data set of the Scottish index of multiple deprivation and looked at Aberdeenshire might pick out a handful of streets that would show a concentrated amount of deprivation, but that misses out important parts of the picture. It misses the individual stories hidden within, because the reality is that there is a significant amount of rural deprivation and a range of intersecting factors that contribute to that.

As I know myself, living in a small community, there is the perennial issue of trying to find childcare. The Scottish Government are tackling that with their 1,140 hours of free childcare, which it is no exaggeration to say will be an absolute game-changer for many in Scotland with young families.

There are the additional costs of heating, particularly for those who live off the grid. People who get their energy for heating and cooking from heating oil do not get the opportunity to shop around on MoneySuperMarket.com for the best suppliers. There is a limited number of suppliers and they have to buy in bulk. Despite some of the many laudable community initiatives that have come through the community planning system to try to take the edge off that for people, it is still an additional expense of rurality.

There are transport costs. Not everybody lives near a public transport link, so there is the added cost of having to run a car to get to work, get about and access public services when public transport is not always an option.

People have been hard-pressed by austerity for a number of years. It is easy for those who have never lived in such an environment or who have never experienced scarcity or shortage in any significant way themselves to fully understand how expensive it can be to be short of money. People buy what they can afford, not what lasts best. They pay more for their energy, particularly if they are, as many colleagues have said, trapped on a prepayment meter, with everything that goes with that. Access to credit and financial services is much harder and is often more expensive when it is available.

Deprivation also hits those who at one point might have been seen as doing well—we could call them, as some have, the precariat. A significant number of people right across Scotland and the UK are probably no more than a missed pay cheque or a significant household expense away from serious financial difficulties. Let me cite the example of a citizens advice bureau that is not in my constituency—it is in the neighbouring constituency to the south, West Aberdeenshire and Kincardine—but covers areas of my constituency and I do not believe it is atypical. This citizens advice bureau is located in Westhill—in what would, on the surface, look like a prosperous set of communities there and roundabout—but it has one of the highest rates of people coming through its doors in search of debt advice.

Right across the north-east of Scotland, the use of food banks is common; not a community is unserved and, as we have heard, demand is, as in other areas, heading in only one direction, and sadly it is not down.

For me, tackling poverty means many things, but above all it means treating people as citizens, with dignity, and enabling them to participate fully in society on their own terms, shorn of the shame of being left without. What does it say of the UK Government that they have made a set of policy choices, particularly over the past fortnight, that seek to make it harder for families and individuals to provide that dignity for themselves and to participate as they might wish in wider society?

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does the hon. Gentleman agree that the people in my constituency of Swansea West and elsewhere who voted in good faith for Brexit—for more money, more control and more jobs—have seen a sort of Brexit dividend, which is basically rising food prices, because of food barriers and a falling currency, and national insurance going up and universal credit going down? Does he think that the poorest should get an injection of money to make up for that, rather than being hammered?

[Richard Thomson]

The hon. Gentleman makes a succinct and powerful point about how people voted in good faith for something that has turned out to be a fiction and a fantasy. I would always argue for more money to help those who are most in need—there is also an economic benefit to that in the boosting of consumption—but one of the first steps we could take is not to take money away. If the hon. Gentleman waits patiently, he may hear that I have more to say on that later in my speech, but he makes a powerful point.

In the Minister’s response to the opening speech of the hon. Member for Houghton and Sunderland South (Bridget Phillipson), he spoke of the need to make tough choices. It is that macho rhetoric—fine, easy words that fall a great deal harder on those on whom those choices impact than they do on the perennial Conservative and Unionist party’s self-conceit of being a party of low taxation, which it seldom ever lives up to in office in any meaningful way.

Those tough choices come with very long-standing consequences: they impact on people’s children; they impact on family life and well-being; they impact on a person’s health; they impact on their self-esteem; they impact on their opportunities; and they impact on life chances, and they do so across generations.

In the past fortnight alone, we have seen the triple lock gone, removing the link between earnings and pensions. We have seen the end of furlough. We have seen the £1,040 cut to universal credit. We have seen a breaking of the manifesto promise not to increase national insurance, in a move that will hit the youngest and the poorest the hardest and that will embed generational and geographical inequalities and bake them into our social and economic reality for generations to come. As has been said, this has all been exacerbated by Brexit, with the shortages of products that that will bring, allied to an accompanying increase in prices.

Health and Social Care Levy Bill

Geraint Davies Excerpts

2nd reading
Tuesday 14th September 2021 Commons Chamber

[Steve Barclay]

My hon. Friend, and good friend, has raised two connected points. The first was dealt with earlier in points of order: it is the will of the House that decides the timings of debates, and the Chair addressed that point. As for the second, we discussed it at length during last week’s ways and means debate. We discussed the wider purpose in dealing with the consequences of covid and the backlog in care that needs to be tackled, but we also discussed grasping the nettle in relation to the long-term challenges surrounding social care—challenges that the House has debated repeatedly over many years.

The levy will apply UK-wide to taxpayers liable for class 1 employee and employer, class 1A, class 1B and class 4 self-employed national insurance contributions. However, it will not apply where taxpayers pay class 2 or class 3 NICs. It will be introduced in April 2022, and from April 2023 it will also apply to those working over the state pension age. As my right hon. and hon. Friends will understand, it takes time for Her Majesty’s Revenue and Customs to prepare its systems for such a major shift. That is why, as set out in clause 5, in 2022-23 the levy will be delivered through a temporary increase in NICs rates of 1.25% for one year only.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does the Secretary of State agree that in principle hypothecation is to be avoided, and that what we should be doing is defining what spending is financially desirable and economically effective, and then asking a separate question: what is a socially equitable and effective tax regime? Those are two different issues, but we are smashing them together, and we do not even know what we are spending the money on. This is farcical, and it is being done in a mad rush.

--- Later in debate ---

[John Redwood (Wokingham) (Con)]

rose—

[Geraint Davies]

rose—

[Steve Barclay]

I want to make some progress, and I have already given way once to the hon. Member for Swansea West (Geraint Davies).

Let me remind the House why this levy is necessary. As the Prime Minister and the Chancellor have said, the levy will enable the Government to provide additional funding to the NHS so that it can recover from the pandemic. Senior NHS leaders have made it clear that, without additional financial support, we will not properly be able to address the significant backlog in the national health service. However, it is going to take time to get everyone the care they need. In addition, our social care plan will create a dramatically expanded safety net for people in their later life. This means that, instead of individuals having to bear the financial risk of catastrophic care costs themselves, we as a country are deciding to share more of that risk collectively.

--- Later in debate ---

[Geraint Davies (Swansea West) (Lab/Co-op)]

The only way to sustainably finance the costs of social care and the NHS for an ageing population is a growing economy, so why is the Chancellor taxing work? He said at the last Question Time that the only way to tackle poverty was to encourage work, but he is taxing work, and specifically he is taxing poorer, younger workers who do not have assets to pay for the care costs of often richer, non-earning, asset-rich people. It is not fair, it is not economically effective, it is being rushed through—it is wrong in so many ways that it should just be scrapped.

Obviously, we need to pay for care costs. It is appalling that one in four people will be hit with massive care costs through no fault of their own, and we need a system that is fair in terms of taxation to pay for that. I am not a great fan of hypothecation, because we should be deciding how to tax in a fair and economically sensible way and setting out precisely what we are going to spend our money on, neither of which has been done. If we want to grow the economy and tax things that we do not want to occur—people have talked about alcohol and cigarettes—we should be tackling, in particular, air pollution. I say this as the chair of the all-party parliamentary group on air pollution. Air pollution costs us £20 billion in lost productivity and health costs, so why do we not have some sort of escalator on diesel? Why do we not have an incinerator tax? The plan is to double incineration by 2030, yet we read from the latest medical reports that a very small increase in NOx massively increases dementia and mental health issues by something like 32%, with an 18% increase in hospital admissions. We have heard new research about ultrafine particulates from incinerators in urban environments getting straight into the bloodstream and causing problems for the heart, the mind and the lungs in particular, but there has been no mention of any of this.

And what about plastics? There will be more plastics than fish in the sea by 2050. We plan to tax plastics at £200 per tonne, but in the EU the figure is £685 per tonne. If we put an extra £400 per tonne on the 12 million tonnes of plastic we produce each year, we would generate £5 billion. Why should we not be able to get a cheaper cup of coffee in a china cup than in a plastic one? That would save the environment.

I support the points that were made by my right hon. Friend the Member for Barking (Dame Margaret Hodge) and others on progressive taxation. Gordon Brown had a national insurance increase all the way up the income scale. Obviously we need a threshold if we are going to use national insurance. Lord Hendy is now putting forward the Status of Workers Bill, which would capture large numbers of people who are currently deemed to be self-employed so that their employers do not have to pay national insurance. In that way, we could have a larger tax footprint, which would be fairer.

Obviously companies such as Amazon should pay more and there should be a transactions tax. Landlords have made capital gains through stamp duty holidays and with interest rates at low levels, and we should also look at a carbon border tax at a time when China is producing more emissions than the United States and the EU combined.

We should tax the bad things—namely, climate change and pollution—not the good things such as work and the economy. On debt costs, the interest rates have been low—they are down £14 billion year on year—and this looks like another attempt to bring down the debt. We must tax the right things, not the wrong things, to sort out the problem.

--- Later in debate ---

[Duncan Baker (North Norfolk) (Con)]

Whether it is speaking about young carers, improving the pay and conditions of our care workers or pushing social care reforms for our older citizens, I have found myself in this place speaking about social care countless times since my election. One could conclude that I am happy that the Government are beginning to tackle this issue. I might be expected to say that as the MP who represents North Norfolk, an area where the social care sector is particularly important given the demographics of my residents.

As I have said to the many people who have asked for my thoughts on this Bill, in my view the prize of fixing social care is far greater in the long term than bickering about how we pay for it. It is regrettable, obviously, that we have to increase tax, but one simply has to be able to recognise the situation that the country finds itself in. The Exchequer cannot keep funding, in the current tax take, £12 billion to £14 billion a year—not to the extent that it has already supported the country to the tune of some £400 billion. Any reasonable person can recognise that. It would be fiscally irresponsible to continue to heap debt upon debt. There is probably no right way of creating the funding that we will require—a way that will satisfy everybody. Equally, there is no wrong way either. As I have not heard of a significant amount of consensus, a marginal rise in national insurance, to which, as we know, employees as well as employers will contribute, has, to a large degree in my constituency, been met with some understanding of the conundrum that we face.

The Opposition were asked time and again about how they would deal with this matter, but the hon. Member for Ealing North (James Murray) would not put a marker in the sand and explain what he would do.

[Geraint Davies]

I know the hon. Member said that it would be fiscally irresponsible to increase debt, but is he aware that the interest cost of debt per year has gone down by £14 billion because of historically low interest rates? Therefore, at this particular window in time, as we are coming out of a pandemic, would it not be better not to tax jobs?

[Duncan Baker]

I am sure the hon. Gentleman will remember the old adage that what goes up must come down, and, obviously, it could happen vice versa as well.

This Government have been incredibly financially prudent over the years. Most constituents around the country would say, “Thank goodness that we have had a Conservative Government looking after this country as they have produced one of the best responses to the pandemic in the entire world.”

What constituents want to see now are the tangible changes on the ground and the benefits. What we see today is probably one of the greatest welfare benefits that we have—the fact that there is a cap on how much a person pays in their later life for their care costs and that they will not have to sell their home will create security for a great number of people.

As the White Paper comes forward, I want to say three things to the Treasury and get these points on the record. First, I am a patron for the Holt Youth Project, which is a marvellous young people’s charity in my constituency. It has looked after some 50 young carers throughout the pandemic. Everybody knows that the life chances of young people are significantly affected as a result of looking after a sick or debilitated parent. I want to ensure that we can channel the funding that we get from this levy; there have been many asks today, including for dementia and other incredibly important causes, but please let us ensure that we fund young carers properly.

Secondly, let us ensure that unpaid carers are properly looked after. For those who take the burden off the state to care for their loved ones, the current allowance is £67 a week, at a cost to the Treasury of £3 billion a year. This must be looked at again.

Finally, let me address the recurring problem that we hear about all the time: the shortage of care workers. These people need to have the same high status and high regard as any NHS worker. We have to tackle and get to grips with the skills required to care for somebody with dementia or to give end of life care, and ensure that those care workers are properly rewarded.

Better Jobs and a Fair Deal at Work

Geraint Davies Excerpts

Wednesday 12th May 2021 Commons Chamber

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

The Prime Minister has given the United Kingdom the highest covid death rate in the world and the deepest economic recession of the G7 and given billions to Tory donors for procurement contracts. On top of that, we have a Brexit deal that will cut our economy by 4% and 1.4 million jobs. Now, we have a Queen’s Speech that attacks our fundamental values: democracy, human rights and the rule of law. His Bills in this Queen’s Speech will mean that he decides when the general election is called. They will make it harder for poorer people to vote, harder to challenge Government decisions and harder to protest against them. Alongside this, we have seen the weakening of the BBC, the civil service, the universities —our fundamental institutions. Meanwhile, as we loosen the ties with Europe, our biggest and closest market and friend, that will weaken both our economy and our values.

Millions of voters from poorer and more diverse communities will now be required to have voter ID, and that will reduce voter turnout. That is, in essence, voter suppression. In addition, the abolition of the Fixed-term Parliaments Act 2011 means that the Prime Minister can call the election when he likes. The Higher Education (Freedom of Speech) Bill opens the door for right-wing intolerance in our universities. The judicial review Bill and the Dissolution and Calling of Parliament Bill allow the Prime Minister to suspend our parliamentary democracy without the Supreme Court being able to intervene, as it had to in 2019 to safeguard us, and reduce the ability of the courts to challenge the Government’s decisions, which is fundamental to our democracy.

Our devolved democracy, in Wales, Scotland and elsewhere, is also under attack from the centralisation of economic and political decision making, which risks creating a divided economy in the name of the Union, despite the fact that, in last week’s elections, we saw a mandate for more, not less devolution. To top it all, we have the Police, Crime, Sentencing and Courts Bill, which would undermine or stop peaceful protest. Such protests have been the lifeblood of our democracy, promoting democratic change whether through the suffragettes, peace campaigners, trade unionists, EU supporters or climate change activists. We have now seen in the Clapham Common vigil and the Bristol protests against the Bill that the police have enough power and there is an issue of accountability.

These changes are the hallmarks of an emerging authoritarian state, so let us remember that our Queen Elizabeth gave her first Queen’s Speech when Winston Churchill was Prime Minister and the architect of the Council of Europe to promote democracy, human rights and the rule of law. Yet now, 70 years later, she must present an agenda that puts these fundamental British values at risk. It is for all of us and people across these lands to defend those values, and I hope in the weeks ahead Members will do just that. Diolch yn fawr iawn.

[Madam Deputy Speaker (Dame Eleanor Laing)]

The time limit is now reduced to three minutes.

Finance (No. 2) Bill

Geraint Davies Excerpts

Committee stage & Committee of the Whole House (Day 2)
Tuesday 20th April 2021 Commons Chamber

[Gareth Bacon (Orpington) (Con)]

As the Committee is aware, this year’s Finance Bill is presented at an unprecedented time in British peacetime history. The pandemic has hit the economy very hard, and the Government have not stood idly by over the past year. Extensive levels of economic interventions have been introduced to protect jobs, businesses and our people in order to help them through this pandemic. The impact of this on the state of the public finances has been drastic, with the budget deficit rising to £355 million in 2020-21 and our national debt rising to £2 trillion.

That is of course not a sustainable position, but, as we know, the tide is turning. The Government’s excellent vaccine planning, procurement and roll-out means that we can now see the end in sight. The economy and society have begun to open up, but we are not there yet. The Budget introduced by my right hon. Friend the Chancellor of the Exchequer in March therefore had to achieve a very delicate balance in maintaining high levels of economic support during the continuing global health crisis while also laying the groundwork to repair the public finances and support our economic recovery.

The part of our economy that is the housing market comes in both property sales and construction. I will address my remarks primarily to the decision to extend the temporary stamp duty land tax holiday. As my right hon. Friend the Minister said, when the pandemic struck and the first lockdown began in March last year, the housing market experienced a sharp decline in sales, falling by 43% in the second quarter of the financial year compared with the same period of the previous year. Historically, a sharp drop in transactions, if left unchecked, has led to a fall in the level of house building. The Government’s action in introducing revised thresholds at the lower end of the market, abolishing stamp duty on the first £500,000 of the purchase price and setting the level at 5% for the next £425,000, has greatly alleviated the problem. In my constituency of Orpington, the average house price is currently £528,000, and the Government’s intervention has reduced the level of stamp duty on an average transaction by 91%, leading directly to a strong recovery in the local housing market.

That recovery is also reflected in the picture nationally. According to HMRC figures, in the third quarter of the most recent financial year, housing sales increased exponentially on the previous quarter, and in the fourth quarter transactions were at their highest level since 2007. In the short term, that is extremely welcome because the Government have achieved their objective of stabilising the housing market and maintaining confidence in the construction market. By introducing an extension of the initial stamp duty holiday, followed by a tapering of relief, the Government have taken steps both to remove the danger of a cliff edge that could have reversed all the good work done in the latter half of last year and to prevent an unsustainable long-term boom in house prices. I believe that is the right approach at this juncture.

In the longer term, though, I urge the Government to take a long, hard look at the structure of stamp duty. Stamp duty thresholds have not kept pace with the rise in house prices, meaning that stamp duty has become a significant barrier to purchasing. That is particularly true in places such as Orpington, and even more so in other areas of south-east England in particular, where housing shortages are most acute. In the light of the strong link between house construction and housing transactions, coupled with the Government’s desire to ramp up house building and level up the country, a review of the wider stamp duty regime would bear consideration. However, that is an argument for another day, once the battle with the pandemic is finally won.

For the moment, I believe that the extension of the stamp duty until the end of June is the right move, and its tapering from the end of June until October is both proportionate and unwelcome. I will support the Government on the issue this evening.

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

The stamp duty holiday tells us all we need to know about the Government’s priorities. Amid an awful pandemic that has seen the highest death rates in the world, when something like 4 million people have been infected and many of them will face long covid, and when something like 7.6 million people are in hunger, we need investment in the wider economy to get us moving again. In fact, with the stamp duty holiday the Government have spent much of £5 billion, over two years, on second homes. That £5 billion could have paid for 5% increases in nurses’ salaries over 15 years, given that a 5% increase would cost £330 million after allowing for the recovery of the tax on the money given in the first place.

In any case, it is not clear that the stamp duty holiday was at all necessary to stabilise the housing market, because immediately as the pandemic began to hit, the Bank of England reduced interests rates and in so doing reduced mortgage costs, supported prices and increased landlords’ margins at a time when tenants were still required to pay their rents. Given that the Bank of England had already taken action to support the market, the stamp duty holiday simply increased house prices by something like 7% between July and December 2020. That is not the right priority, and it is certainly not the right priority to invest money in second homes for people who are basically making money out of that investment from taxpayers and boosting the prices that first-time buyers face. That is why in Wales, where we have a Labour Government, second homes were not included in the stamp duty holiday, which was quite right. I therefore support amendment 81. Indeed, in Wales, we have made provision so that there are no rough sleepers during this pandemic, whereas in England, of course, there are.

The stamp duty holiday will mean that first-time buyers will find it more difficult to buy a house because deposits will need to be bigger. We are moving to a situation in which young people who want to buy a house will almost always have to depend on their parents to do so, so the distribution of the opportunity to buy a house in Britain is getting worse and worse.

In a nutshell, this Budget should have invested in all our opportunities to raise productivity, increase the number of jobs, focus on the future and keep people healthy. Instead, it has been seen as an opportunity to focus on widening inequality unnecessarily. I very much support the Labour party’s amendments.

[The Temporary Chair (Sir Charles Walker)]

We now go to Christine Jardine, who is joining us virtually.

Finance (No. 2) Bill

Geraint Davies Excerpts

2nd reading
Tuesday 13th April 2021 Commons Chamber

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

I, too, pay tribute to Prince Philip; in tribute to him, I am wearing my father’s tie. Like Prince Philip, he served in the Royal Navy in the second world war. He lost his own father at the age of 12; Philip was, of course, estranged from his father at 13. Both fought the Nazis.

I mention this partly because the main conflict there was the battle of the Atlantic, which was the attempt by the Germans to starve Britain. In 1939, half our meat, 80% of our fruit and 70% of our cereals were imported. Last year, 80% of our food was imported. Thanks to the botched Brexit deal—there was no mention at all of this in the Budget—we now have the prospect of self-imposed food shortages. In January our exports to the EU, our largest market, were down more than 40%. Imports were down by 29%. They will go down more when we introduce non-tariff barriers. The reality is that in Britain today, a carrot pulled up in Spain on Monday could be on our shelves by Thursday. That will no longer be the case. We face the prospect of food shortages and food inflation.

The Office for Budget Responsibility found that the botched Brexit deal would cost the economy 4% within 15 years, and something like 1.4 million jobs and £1,300 each. The reason we are seeing tax increases, taking us to a share of taxes not seen since the 1960s, is not the pandemic, which is a one-off hit that will be recovered, but the ongoing problems of the botched Brexit. We need to remember that. We need to look towards better realignment and better trade with our closest marketplace.

The other thing to bear in mind is that last year something like 1 million people from the EU left this country to go back to Europe. Many will not come back, partly because of the hostile environment here, and that creates an issue about the size and quality of our labour market when it comes to productivity and production. The EU is already questioning the legality of our breaches of the Northern Ireland protocol and there is a question mark over divergence of standards and protections in the future that might lead to tariffs. If we manage this badly, we may be hit even harder.

For those on the Government Benches who say, “Oh, don’t worry—we’re opening up loads of other markets,” it is worth remembering that, the Japan deal, for example, is worth £1.5 billion to GDP, but if it had been done through the EU, it would have been worth £2.6 billion, because it can negotiate a better deal because it is bigger.

The truth is that while the Government are spending enormous amounts of money on covid, that is not really the explanation for the massive personal tax increases that Britain will suffer.

The other thing to mention about productivity, other than the loss of young workers to the EU, is that not only have we had the highest rate of death in the world from coronavirus, but there is clearly a move, once we have got people over 50 vaccinated, to be reckless again. The issue is the fall in productivity of younger people with long covid. We all know anecdotal examples, but we do not know the full impact of that. I have knowledge of music students, for instance, who have had a shake—a violinist—or who cannot blow the trumpet as well because they have lost lung capacity. These issues are significant for the overall productivity of our economy in the future.

On the workforce being fit and ready to work for our recovery, we should also think about the fact that in today’s Britain, 7.6 million people are living in hunger, 1.7 million of whom are children—it is an absolute disgrace. They are left in food insecurity, as the UN calls it and as the Environment, Food and Rural Affairs Committee recently reported. In essence, that means that they do not have sufficient nutritious food on a daily basis. That is deplorable.

Interestingly enough, in 1952, when the Queen came to the throne and Philip was 35, rationing was still in place for sugar, butter, meat, cooking fat, cheese and so on. In that year, Aneurin Bevan, the founder of the national health service, famously wrote “In Place Of Fear”, in which he warned that while we had to confront poverty and that it was difficult to define, the basic requirement was to ensure that there was no hunger. He warned that if millions were left in hunger, our civilisation would be at risk. It is certainly the case that we now face a depleted, physically weakened and hungry workforce. That surely is not the recipe for the productive economy that we need for the future. On top of that, our youngsters have lost a year in education—[Interruption.] I apologise for that, Madam Deputy Speaker.

The Government say that they have spent a lot on coronavirus and of course they have, but we have read in the newspapers and elsewhere that, in many cases, the money has not been well spent—personal protective equipment, track and trace and food parcels that have been done through Tory party dealers. We have also heard about David Cameron being involved with Greensill. There are question marks about how well this Government are treating taxpayers’ money.

When it comes to the Chancellor, of course we know that he was a founding partner of the hedge fund, Theleme, which presumably had a partner stake. We do not know about that because those tax returns and details are in the Cayman Islands, but we do know that that particular hedge fund appreciated in value from something like £7 billion to £39 billion shortly after we heard news that the Health Secretary had ordered 5 million doses of the Moderna vaccine, in which the hedge fund had invested. We do need to get to the bottom of these things and find out what happened. If it was the case, for example, that the Chancellor had, say, 15% of that hedge fund, his share of that increase—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I do think it is quite important that we address some of the issues in the Finance Bill, so I am sure that the hon. Gentleman will be doing that.

[Geraint Davies]

Thank you very much for that advice, Madam Deputy Speaker. I was just going to turn to the nurses’ pay increase. Had the nurses been granted a 5% increase in pay in this Budget, that would have cost £1.7 billion gross, but in fact, after looking at the recovery of taxes from both income tax and sales tax—consumer tax—we see that it would have cost just £330 million a year. On my calculation, that is about a 10th of the value of the appreciation in the hedge fund that I was mentioning—the 15%—that would have been privately earned by the Chancellor. Obviously, we need to have these figures disclosed. I am trying to put in context the fact that we can afford to pay the nurses a decent wage. There are tremendous amounts of money moving around at the moment and we do not really have a proper tie on it.

We should contrast that with what is happening in Wales, where we have a more effective system of track and trace, PPE is bought more effectively, food parcels are not bought privately but down to local authorities, and the sickness rate and death rate from coronavirus are much lower. We should contrast it with the way that money has been invested to help business. The Chancellor has put money into cutting stamp duty, and lots of that has been spent on second homes—but not in Wales—because that money is not well targeted where it is needed. Money has been given to large businesses with large properties, but again not in Wales, where the larger supermarket stores with big properties will not get the council tax relief because they are making extra-normal profits during coronavirus. The issue is investing money where it is most needed.

Turning back to the nurses, in Wales we have the highest proportion of single earner households in the country and the lowest average wage, which is 70% of gross value added in terms of the UK average. These people might include a nurse as the only earner in a poor household who has faced nearly 10 years of pay freezes and now another pay cut. It is no surprise that nurses are going to food banks. These things are not necessary; they are political choices. I am just drawing the contrast between those who have so much and those who have not enough.

Mention has been made of Amazon and the fact that it and others have basically decimated our physical retail side. There are questions about what should be done about that. In my view, local authorities should be empowered to provide digital marketplaces to support local businesses to sell to local people with overnight delivery so that people would have a choice between sending their money offshore to some huge American organisation that does not pay tax, is destroying local jobs and undermining workers and supporting local businesses through a collective approach with a modernised online service.

We have of course elections coming up, as you know, Madam Deputy Speaker, and people are making these financial choices and comparisons—including, in Wales, those aged 16 to 18. In this Budget, prescription charges in England are now going up to £9.35, whereas in Wales people do not pay for prescriptions. In Wales, we have ensured greater safety by giving advice that people do not travel more than four or five miles, whereas in England people could go wherever they liked. In Wales, a two-metre rule was put into legislation—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. May I just interrupt the hon. Gentleman again and say that we really need to address the Finance Bill? I think the feeling is that perhaps he might be bringing his remarks to a close fairly shortly.

[Geraint Davies]

Yes, that is my feeling as well, Madam Deputy Speaker. I was simply making the case that owing to a more cautious approach in terms of coronavirus, we have got to a situation where productivity is better supported.

I will bring my remarks to a close as you suggest, only finally to say that we need to do more on the issue of climate change and the environment, because 64,000 people a year are dying from air pollution, while nothing has been done about diesel or accelerating towards electrification. We need to look at a different approach whereby we can generate growth and opportunity for the future.

Leaving the EU: Impact on the UK

Geraint Davies Excerpts

Wednesday 17th March 2021 Commons Chamber

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

A very happy St Patrick’s Day to you, Madam Deputy Speaker. I will not say it in Welsh, even though St Patrick was Welsh and was born near to me in Neath Port Talbot in Banwen.

I have a lot of sympathy for this motion, partly because it does not mention independence. It sets out the predictable disaster that Brexit has been, which has been made so much worse by an appalling Tory deal. I am acutely aware of the strange irony of having nationalists against nationalism, both in the case of the SNP, which opposed Brexit, yet want to break up Britain—I suppose that it will be breaking up Scotland next—and that of the Tory nationalists, who wanted to break away from the EU but do not want to break away from Scotland. I am an internationalist and want to see us together as one Union and in closer alignment with the EU.

The simple fact is that the Budget confirms—as the Office for Budget Responsibility said—that the appalling Brexit that has been negotiated will cut our economy by some 4%, which equates to about 1.4 million jobs lost according to the Office for National Statistics. That will cost everybody in this country about £1,300, so it will cost a family of four about £5,000. That is not as much as would be lost by Scottish independence, as confirmed by the London School of Economics, but we are here to talk about Brexit.

The people who voted for Brexit, many of whom I represent, presented good ideas of wanting more jobs, more money and more control. That is what they were promised. There is nothing wrong with wanting those things. The problem is that they did not get them. They were promised an “oven-ready” Brexit, but the oven was turned off during lockdown and the pandemic. The Welsh and Scottish First Ministers both wrote to the Prime Minister in June and September to say, “Why do we not extend the transition period, because we will lose preparedness and negotiation time? And if we are Brexiting, let’s get the best Brexit.” Stupidly, of course—the Welsh First Minister recently said he was “baffled” by this—the Government and the Prime Minister decided that they would go ahead, and look where we have ended up. We have massive reductions in our exports. There will be impairments to our imports from April, so instead, the Prime Minister delivered a half-filled sack on Christmas eve with no services inside, despite the fact that 42% of our exports to the EU are services. We have ended up just saying, “Let’s have more deals under the comprehensive and progressive trans-Pacific partnership”, but the Japanese one is worth £1.6 billion when it would have been worth £2.6 billion through the EU.

In summary, I am a man who wants to see us as four nations, in closer alignment to the EU, and the Government not to hide the problems of Brexit through covid, and, incidentally, not to stop people marching—if they do eventually want to resume membership—through the awful Bill banning protest yesterday. Let’s stay together.

Oral Answers to Questions

Geraint Davies Excerpts

Tuesday 9th March 2021 Commons Chamber

[Steve Barclay]

I join the hon. Lady in recognising the huge contribution that charities have made. In respect of specific tax measures, obviously they were dealt with by my right hon. Friend the Chancellor in the Budget last week, but I remind the hon. Lady of the £750 million of dedicated funding that has been provided to date in recognition of that important work.

[Geraint Davies (Swansea West) (Lab/Co-op)]

What assessment he has made of the regional equity of infrastructure investment (a) in Wales and (b) throughout the UK.

[The Financial Secretary to the Treasury (Jesse Norman)]

Once in every Parliament, the National Infrastructure Commission publishes a national infrastructure assessment. The first assessment was launched in July 2018, and the commission operates UK-wide.

[Geraint Davies [V]]

Wales has 5% of the population but it has had only 2% of the railway enhancement investment over decades, and it has the lowest household income. Given that HS2 will not pass through Wales, will the Minister and the Treasury look very carefully at providing a high-speed rail link between Bristol, Cardiff, Swansea and beyond—over 3 million people live there—in line with the Burns review, to help the agenda for levelling up and connecting the Union, and to give us our fair share of rail investment based on need?

Future Relationship with the EU

Geraint Davies Excerpts

Thursday 10th December 2020 Commons Chamber

[Penny Mordaunt]

I refer the hon. Lady to the statement by my right hon. Friend the Chancellor of the Duchy of Lancaster yesterday and just reiterate Northern Ireland’s unique position in the United Kingdom.

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

The Government have already published an economic impact assessment of no deal. Will the Minister ensure that they publish an economic assessment of any EU deal on offer, so if any deal is rejected we will all know at what cost?

[Penny Mordaunt]

At the moment efforts are on securing a deal, and the deal that is there—the component parts of it—is in the best interests of the people of the United Kingdom and in the best interests of the citizens and businesses in the member states of the European Union. That is very clear and that is what we are all hoping for and all working towards. The question is: will the EU accept that?

Future of Financial Services

Geraint Davies Excerpts

Monday 9th November 2020 Commons Chamber

[Rishi Sunak]

As my hon. Friend knows well from his own private sector experience, we absolutely need to attract private capital alongside public capital to deliver on all our ambitions. That is why a sovereign bond is so important—it can help to catalyse a domestic private sector industry for corporates and other institutions that issue on the back of a Government issuance. All of that will leverage private sector capital and expertise to build the infrastructure that we need.

[Geraint Davies (Swansea West) (Lab/Co-op) [V]]

Talking of private capital, Barclays has moved €200 billion out of the UK—€3,000 per person; J.P. Morgan has moved €200 billion out of the UK; HSBC has moved 1,000 jobs to Paris; the Government have abolished the Green Investment Bank; and we are leaving the European Investment Bank. If the Chancellor is serious about investment in green infrastructure, will he look at the Development Bank of Wales as a mechanism for focusing on green infrastructure in a knowledgeable way, as happened with the Swansea Bay tidal lagoon, so that taxpayers’ money can be deployed effectively to grow and green our economy?

[Rishi Sunak]

Last year, we had the infrastructure financing review, which contemplated these specific questions. We will issue a response alongside the national infrastructure strategy, which I think will adequately address the hon. Gentleman’s questions.