Non-Domestic Rating (Lists) (No. 2) Bill

Debate between Jim Shannon and Steve Reed

Committee stage & 3rd reading & 3rd reading: House of Commons & Committee: 1st sitting & Committee: 1st sitting: House of Commons
Tuesday 20th October 2020 Commons Chamber

[Steve Reed (Croydon North) (Lab/Co-op)]

This is not a controversial measure, as the hon. Member for Ruislip, Northwood and Pinner (David Simmonds) has made clear, but I want to put a few points on the record while confirming that the Opposition continue to support the proposals.

Since Second Reading, there have been at least a couple of developments. The first is that the rate of covid infection is rising again, and that makes the case for supporting businesses and local authorities, including through business rate reform, even stronger. The second is that organisations with an interest in this Bill have made it even clearer in conversations with us that although they support the Bill, they are looking for yet more meaningful change. The Bill must be the beginning of root-and-branch reform of the business rate system. Right now, the jobs of people in the arts, retail, hospitality and many other sectors are under threat from the economic impact of the covid-19 pandemic. Those sectors and others need help to get through the rising wave of infections, and they need that help as urgently as possible.

Business rates, as currently set up, do not fairly reflect the rental value of the premises occupied, and they have created regional imbalances. A further and growing unfairness is that retailers that occupy shops in high streets pay far more in tax than online retailers do—that situation is, disappointingly, incentivising the decline of our high streets. Research by Revo shows just how acute the regional imbalance can be. In the north and the midlands, the rate rise is almost 12.5 times greater than the rise in rental values, compared with just four times greater in the south. If the Government are serious about levelling up, they need to address that anomaly.

Getting the business rate system right is essential, and it should be seen as part of the support that the Government must provide to businesses and local authorities to help the economy to recover fully. The Government have been too slow to support businesses and local authorities during the pandemic. According to the Local Government Association, the Government have left councils facing a £3 billion funding gap, which means that support for local economic recovery may be cut precisely when it is needed most.

The country is facing a long, hard winter ahead as we contend with the effects of covid-19, and we must provide all the support we can to local authorities and local businesses to get our communities through this safely.

[Jim Shannon (Strangford) (DUP)]

I know that the Bill is to do with England and Wales, but given that we face potentially the greatest recession that we have had in our lifetimes, there is a need for flexibility in non-domestic rating. Does the hon. Gentleman believe that with the Bill, the Government have given us the flexibility to respond to whatever the future may give us?

[Steve Reed]

The hon. Gentleman makes an important point about the need for flexibility. The situation ahead is very unpredictable and uncertain, and we need the flexibility to support businesses and local economies, whatever circumstances we find ourselves in in a few weeks’ or months’ time.

On Second Reading, my hon. Friend the Member for Blackburn (Kate Hollern) asked the Minister a question that has not yet been answered, so I politely invite him to respond to it today. Given that the Valuation Office Agency has a backlog of 50,000 appeals, some dating back as far as 2010, will he share with the House what conversations he has had with the Treasury about how that backlog will be tackled? Because of the pending appeals, councils, which are responsible for collecting business rates on behalf of the Government, have had to divert more than £3 billion away from frontline services. That figure is very close to the in-year funding gap that is leading to cuts in frontline services across the country, as the second wave of infection rises and the economy slips into recession. What a difference that funding would make, if the Government would only make it available to local authorities and public services on the frontline.

Fixing the business rates system is essential if our high streets are to survive, but the Government must also recognise the key role that local government will play in driving local economic recovery. The Government’s broken promises on council funding will restrict town halls’ ability to support struggling local businesses. I am sure I do not need to remind the Minister just how important local authorities have been throughout the pandemic, and that is why it is so important that they are supported financially. Councils have lost £953 million from business rates income between March and July this year alone, according to the Local Government Association, and that accounts for more than a quarter of all income losses for councils over that period.

The Opposition welcome the measures in the Bill, but only as a first step in the much wider reform that is needed to create a level playing field for businesses and to support our high streets to recover.

SPAC Nation

Debate between Jim Shannon and Steve Reed

Wednesday 8th January 2020 Commons Chamber

[Mr Reed]

I am grateful to my hon. Friend for making that important point. I look forward to hearing what Ministers have to say about how we can work constructively and collectively to tackle many of the problems and horrors that are associated with this organisation.

As I was saying, SPAC Nation started in London. It seems to have spread right across the city, and it is expanding into other cities including Birmingham and Leicester. It has no fixed location—it does not have a home church—which makes it much harder for the authorities to track it. There is no home police unit keeping track of what it is doing. There is no local safeguarding board keeping track of the risks to young people. It holds its services in vast venues in many different boroughs and cities.

I have reported to the police and safeguarding authorities every single allegation that has been made to me, but I am deeply worried that more has not been done to stop this organisation from exploiting vulnerable young people. SPAC Nation claims to have up to 1,000 young people involved right now, and every one of those young people is at risk. It appears to have up to 15 trap houses scattered across London, and every young person inside those properties is at very serious risk. A teacher in north London told me that SPAC Nation had been recruiting schoolgirls outside the school gates. A youth worker in Croydon told me that it had been recruiting outside the youth centre. SPAC Nation is targeting young people so that it can exploit them, and it is imperative that the organisation is stopped.

I have some questions that I would like the Minister to answer this evening, if possible. Allegations about this organisation have been circulating widely in the black community and on social media for up to four years, so why has police intelligence failed to pick anything up? I was able to find out most of this information over a couple of days by speaking to people and googling on social media. If I can do that without the resources of the police, why has police intelligence failed to recognise what is happening to potentially thousands of vulnerable young kids across this city? What action can be taken immediately to stop this organisation recruiting any more vulnerable young people for abuse and exploitation in my constituency and beyond? Given what we have heard, and given what victims have told us, we surely cannot allow this organisation to continue targeting other young people for abuse and exploitation when we can take action to protect them.

What help can be given to young people involved in SPAC Nation now? That includes those living in trap houses who urgently need to get out before they are further criminalised, their family relationships destroyed and their future lives ruined. And why has no help been offered to potentially thousands of young people who have managed to get away from SPAC Nation but who are left burdened with huge debts and who have been criminalised, many of them homeless and many suffering trauma and mental ill health? We cannot simply leave these young people to suffer the consequences of abuse by an exploitative organisation.

[Jim Shannon (Strangford) (DUP)]

What the hon. Gentleman has illustrated tonight is worrying to everyone who has heard it. It is hard not to be moved and to feel concerned. The magnitude and the massiveness of what he has outlined indicates that it should not be an ordinary police investigation; it probably needs a specialised unit with the resources and the manpower and womanpower to conclude the investigation and put an end to what has gone wrong. Exploitation of young people is abysmal and despicable, and it needs to be addressed.

[Mr Reed]

As always, I am grateful to the hon. Gentleman for his intervention, and I agree with every word he says.

What concerns me further are the worrying echoes of the Rotherham child abuse scandal. In that case, vulnerable young girls’ allegations of serious abuse were dismissed because they came from poor or difficult backgrounds, and it is the same with SPAC Nation. I cannot help wondering, as one desperate mum told me: if this was happening to white middle-class children, would it have been ignored for so many years? Would it have been allowed to go on in this way? We need to address that question, because it is a real feeling and concern in the community. In my opinion, SPAC Nation is a criminal enterprise masquerading as a church, because that gives it access to vulnerable young people and cover for exploiting them.

I would like to say this to every young person who is afraid or at risk from SPAC Nation’s activities tonight. This organisation might seem powerful, but we are stronger and we are on your side. Collectively, we will not stop until every young person is safe. We will not stop until the wrongdoers inside SPAC Nation have been brought to justice, and we will not stop until this dangerous, manipulative organisation can do no more harm.