Financial Services and Markets Bill

Debate between Jim Shannon and Tulip Siddiq

2nd reading
Wednesday 7th September 2022 Commons Chamber

[Tulip Siddiq]

I agree with my hon. Friend, and I have seen examples of that in my constituency, especially the parts where people are from lower socioeconomic backgrounds.

[Jim Shannon (Strangford) (DUP)]

The hon. Lady is outlining the case on behalf of those who live in rural communities, who comprise about 50% of my constituents. A number of banks have closed in our constituency—I believe there have been 10 or 11. Each of those banks—Danske Bank, Ulster Bank and all the others—has made exorbitant profits. I am not saying that they should not make a profit, because they should, but their profits are so high that they could well keep their branches open to ensure that people who live in a rural area can have access. Does she agree with me on that?

[Tulip Siddiq]

I agree with the hon. Gentleman’s point, especially as regards constituents in rural areas. I hope the Minister will take on board the comments that are being made.

I was delighted to hear the announcement from the Cash Action Group this week that the sector will be launching additional banking hubs on a voluntary basis, but these services must be protected by legislation. Will the Minister kindly set out in his summing up when the Treasury will be publishing its cash access policy statement, and whether it will ensure that in-person services are protected under the legislation?

It is also disappointing that the Bill fails to address the growing problem of financial fraud. Labour fully supports clause 62, which enhances protection for victims of authorised push payment scams, but the Bill does nothing to strengthen fraud prevention. Under this Government, the amount of money stolen directly from the bank accounts of hard-working people and businesses through scams and frauds has reached an all-time high of £1.3 billion. That would be bad in a normal time, in the best of times, but it is especially bad when we are in the middle of a deepening cost of living crisis. This Government have completely failed to get to grips with modern fraud and scams, such as identify theft and online scams, which have seen people’s lives stolen and their economic stability put at risk.

The former Business Secretary, who is now the Chancellor of our country, was asked about fraud earlier this year. He dismissed it, saying that fraud and scams are not a part of most people’s everyday lives. That is breathtakingly out of touch. Why does he think that? It is shocking. Martin Lewis, the money saving expert, said at the time that

“denigrating the experience that people in this country have with scams, and the lives that have been lost or destroyed because of scams, is an outrage. And he must and needs to apologise if he has any shred of decency in him.”

We still have not received an apology from the Chancellor, but he can put things right by taking immediate action to rectify the amount of fraud and scams that people are facing. I ask the Minister to explain in his closing statement why his Government continue to fail to take fraud seriously and push responsibility solely on to the banks. The Bill ignores the fact that digitally savvy criminals are increasingly exploiting a range of financial institutions, such as payment system operators, electric money institutions and crypto asset firms, to scam the public. In his summing, can he also please explain why the Bill would only provide for the reimbursement of fraud victims who send money using the faster payment system, and why other payment systems have not been included? That seems baffling.

Another area in which I feel the Bill lacks ambition is support for the mutual and co-operative sector. While clause 63 contains some welcome and long-overdue provisions, such as enabling credit unions to offer a wider range of products, the Bill does little to address the outdated regulatory regime faced by credit unions, building societies and co-operative banks. We have seen numerous building societies threatened with demutualisation in recent years, while the number of mutual credit unions has plummeted by more than 20% since 2016. Unlike the USA and many other European countries, the UK is uniquely lacking in mutually or co-operatively owned regional banks. That lack of diversity in the financial services sector has had devastating consequences for financial inclusion and resilience, with many desperate families forced into the arms of unethical lenders. I have seen that first hand in my constituency, especially in Kilburn.

A clear first step in addressing this issue would be to require the Financial Conduct Authority and the Prudential Regulation Authority to have an explicit remit to report on how they have considered specific business models, including credit unions, building societies and mutual and co-operative regional banks, to ensure they are given parity of esteem with other providers. I would be grateful if the Minister addressed that in his closing remarks—I recognise that I have asked many questions that I want him to answer.

Turning briefly to food speculation, Global Justice Now has brought to my attention concerns that the Government’s proposed reform to the position limits regulations under MiFID II have not been adequately assessed for commodity market speculation risks. I ask the Minister to provide some reassurance that these reforms will not adversely impact commodity prices, such as energy and food prices, in the midst of a cost of living crisis, and to explain what role the regulators will play in monitoring this.

Finally, turning to the points that have come from the Opposition Benches, it is striking how little the Bill has to say about green finance. We of course welcome clause 25, which formalises the responsibilities of the FCA and PRA under the Climate Change Act 2008—introduced, I remind the House, by the last Labour Government—but the Government promised much more radical action. Indeed, we were promised that the UK would become the world’s first net zero financial centre, but instead, we are falling behind global competitors.

A recent report from the financial services think tank New Financial revealed that the UK is a long way behind the EU in both share and penetration of green finance in capital markets. It is possible that the Minister has not read that report; I am happy to send him a copy. If he reads it, he will see that it says in black and white that the UK is behind the EU. It found that green finance penetration in the UK was at half the level of the EU, and roughly where the EU was four years ago. When the Minister closes, if he does not agree with me, will he please explain why nothing in this Bill commits the Government to introduce sustainability disclosure requirements, a green taxonomy plan, or a green finance strategy for the sector? If he does not agree with the report I have quoted, could he tell me whether it is wrong?

I look forward to debating and, hopefully, addressing these issues with the Bill when it is in Committee. Once again, I thank the Minister in advance for his closing remarks, which I am sure will give detailed answers to all the points I have raised today.

Nazanin Zaghari-Ratcliffe

Debate between Jim Shannon and Tulip Siddiq

Tuesday 16th November 2021 Westminster Hall

[Tulip Siddiq]

Richard Ratcliffe is in the Gallery and will have heard that message directly from my hon. Friend. This campaign has touched everyone, regardless of where they are in the country. A lot of Members will know that my constituency of Hampstead and Kilburn is one of affluence and deprivation. When I am in Hampstead, Emma Thompson will stop me and ask, “Have you got Nazanin home?” When I am campaigning in the south Kilburn estates, people will open the door and say, “What good are you if you haven’t got that poor woman home yet?” The campaign has touched everyone; my hon. Friend is right to make that point.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for her excellent campaign. She deserves every credit. The USA has agreed to pay around $1.4 billion in moneys owed to Iran, even though it supports the sanctions against Iran. Does she agree that the UK should follow the USA’s decision by paying the £400 million, thereby ensuring Nazanin Zaghari-Ratcliffe’s immediate release?

[Tulip Siddiq]

The hon. Gentleman has appeared at every single debate we have had on Nazanin. I thank him for all his efforts in the campaign. I will come to the debt and getting our constituents back home.

It goes without saying that the reason why my constituent is imprisoned in Iran is because of the Iranian regime. It is because of them that my constituent is away from her young family. But in six years of dealing with our Government, I have become increasingly frustrated that Ministers are ignoring the elephant in the room, which is the fact that this case is now linked to the £400 million that this country owes Iran. That is not something I want to deal with, but it is the reality of the situation. It is becoming obvious that the Iranians see the £400 million that we owe as a pre-condition to releasing Nazanin.

Childcare

Debate between Jim Shannon and Tulip Siddiq

Monday 13th September 2021 Westminster Hall

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Roger. I would like to thank all my colleagues across the House who took the time to speak in today’s important debate. Like my hon. Friend the Member for Walthamstow (Stella Creasy), and little Pip, I want to begin by paying tribute to Joeli Brearley and everyone at Pregnant Then Screwed for starting this important petition and for the inspiring work that they have done to support women and parents in this country and to fight against gender inequalities.

On no issue is it more important to have dedicated campaigners like Joeli than on childcare, which is all too often ignored by politicians, despite it being a fundamental building block of our economy and our children’s development, as has been repeated several times in the debate. Its importance is highlighted by the fact that well over 100,000 people signed the petition, including 400 of my constituents in Hampstead and Kilburn.

In the Chamber last week I raised the Government’s own statistics, which show a loss of over 3,000 childcare providers in England in the first half of this year alone. This comes on top of a net loss of over 100,000 providers since 2015. I was very surprised that the Minister responded by claiming that there were no problems with sufficiency in the early years sector, given that a third of English councils do not have enough childcare places for parents working full time. My hon. Friend the Member for Walthamstow raised this in her speech. I was surprised by the Minister’s remarks on childminders, which have now drawn much criticism, including from the chief executive of the Early Years Alliance, who commented:

“To hear the Children and Families Minister so casually dismiss the closure of thousands of childminders—and falsely imply that what they provide is just care, rather than education—is both insulting and infuriating.”

I do not want the outside world to think that that is how politicians in this place think when it comes to early education.

Every year, Coram Family and Childcare publishes a survey of childcare costs and availability, and every year it shows that there is a postcode lottery in childcare provision. All too often, the costs are soaring well above inflation. My hon. Friend the Member for Putney (Fleur Anderson) outlined her own experience of living through this postcode lottery and how much misery it has caused so many people in her constituency. A survey published before the debate by Pregnant Then Screwed found that a staggering 19 out of 20 working parents said the Government are not helping enough with childcare, with a third paying more for it than their rent or mortgage—again, a point that has been made over and over in the debate. That is because a full-time childcare place in the UK costs £14,000 a year. As my hon. Friends the Members for Walthamstow and for Putney constantly said, ours is one of the most expensive childcare systems in the whole world. That should make our heads hang in shame.

The sad truth about the eye-watering costs of childcare in this country is that it was a predictable result of the decision that the Government took to underfund the free childcare policy by a third in the last financial year alone. We know that because the Department for Education itself predicted it. Secret Government documents from 2015, uncovered by the Early Years Alliance, warned over and over again that failing to fully fund this policy would drive up costs for parents. Ministers pushed ahead regardless, which, as my hon. Friend the Member for Lewisham West and Penge (Ellie Reeves) said, left the sector with a £662-million annual funding gap even before covid hit.

As if that was not bad enough, there was almost no targeted support either for early years or for wraparound childcare providers during a pandemic that has seen their attendance levels and income plummet to the ground. Then came what early years analyst Ceeda calculated as a quarter of a billion pounds’ funding cut this spring term, due to the premature withdrawal of pre-covid funding levels. It is no wonder that 85% of childcare businesses expect to make a loss or break even this year, as research by the National Day Nurseries Association shows.

It is not just about statistics. There is a very real impact on families, who are struggling to make ends meet. My hon. Friend the Member for Pontypridd (Alex Davies-Jones) talked passionately about equal parenting, the pay penalty, proper flexible working, and how children are being priced out of education at the most important stage of their development. Not only are private fees for early years childcare well out of reach for many families, including those in Hampstead and Kilburn, but a recent Sutton Trust report confirmed that the eligibility for the 30 hours free childcare scheme excludes the poorest. Are these the policies we want to have in our country, where we exclude the poorest from accessing high quality childcare?

As my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) pointed out, parents are being forced to cut hours and quit jobs because they cannot find or afford childcare. Of course, this affects women disproportionately. Three quarters of working mums were forced to cut working hours in the first lockdown due to a lack of childcare. In 2018, there were over 800,000 mothers who wanted to work, but could not for financial reasons.

[Jim Shannon]

The shadow Minister is making some very important points. Does she agree that it is not fair for the burden of childcare to fall upon the shoulders of grandparents, who do not have the physical ability to look after children in the way they probably did at one time? I believe that the onus is on the Government and the Minister to come back with a response that helps people.

[Tulip Siddiq]

I thank the hon. Gentleman for his intervention. I was listening to his speech very closely, because I was reflecting that there is no way I could have got through six years of being an MP without relying on my mother—who, by the way, turns 65 today. She is someone who helped me with my childcare, because my father is in a wheelchair; she was responsible for looking after the children when I did not get proper maternity leave from this place. I wholeheartedly agree with the hon. Gentleman, and I hope that the Government will recognise the pressure that is put on grandparents. My mother is 65, but there are lots of grandparents who are a lot older and struggle physically to look after small children. I hope the Minister takes heed of what the hon. Gentleman has to say.

I also want to talk about childcare workers, 93% of whom are women, who are languishing on poverty pay after suffering years of real-terms pay cuts under Conservative Governments. As my hon. Friend the Member for Lewisham West and Penge pointed out, the average wage in the sector is £7.42 per hour, and shamefully, one in 10 staff earn less than £5 an hour. These talented and dedicated workers are unsurprisingly leaving the sector as quickly as they can. It is clear to anyone who has direct experience of the childcare system in this country that there is something seriously wrong with it, and it could get a lot worse if nursery and childcare closures continue as they are at the moment. This petition should be a wake-up call for Ministers and the Government to rethink their approach to child- care funding.

That is why my Labour colleagues and I have been banging on about the need for targeted support to halt the collapse of the childcare sector. We are not being dramatic, and we are not scaremongering: this is the reality of the situation. Our childcare recovery plan also proposes a real, substantial hike in the early years pupil premium, from £302 per person per year to £1,345, as part of a £15 billion package to give every child new opportunities to learn, play and develop. I believe it is time to give childcare the attention and the funding it deserves, so that we can be a country that values children, parents and family and so that childcare becomes a part of the country’s infrastructure, as my hon. Friend the Member for Newcastle upon Tyne North so eloquently put it when she opened this important debate.