Russia: UK Companies

Karl Turner Excerpts

Wednesday 7th December 2022 Commons Chamber

[James Cartlidge]

That is an interesting point. My colleagues have been clear on the record about where we stand on that. I will not comment on any specific appeals, but our sanctions regime, to which he referred, is very strong and is working in practice. We are always committed to looking at what more we can do as a Government and working with our international partners.

[Karl Turner (Kingston upon Hull East) (Lab)]

Fenner Dunlop has existed in Marfleet in my constituency since the company Fenner was established in 1861. It manufactures conveyer belts for the mining industry. It refused to trade in Russia and has done the right thing. As a result, it is reviewing the business in Marfleet and 71 jobs are potentially at risk. Everybody can see that the company needs to be commended—it is an excellent employer—but the reason the Minister is having difficulty mentioning specific businesses is because one of them is Infosys. Does he want to put his finger on why he is struggling to talk about that business?

[James Cartlidge]

As ever, I am grateful to the hon. Gentleman for his question. All I will say about the company in his constituency—in Marfleet, I think—is that companies divesting their interests in Russia will undoubtedly have an economic impact at home. They will have gone into that market for a commercial reason and there will be a commercial impact if they divest. We have to do everything possible to show our resolve to the people of Ukraine. That includes strong economic sanctions, even if they have an impact here, but by far the biggest economic impact is on our economy from the enormous surge in energy prices and the resulting inflation. Global inflation will drive the economy around the world to experience a hiatus in growth. We want to see growth return, and one of the reasons that we have windfall taxes is to raise funding to support our constituents and businesses through this winter.

Stamp Duty Land Tax (Reduction) Bill

Karl Turner Excerpts

2nd reading
Monday 24th October 2022 Commons Chamber

[The Economic Secretary to the Treasury (Richard Fuller)]

I thank Members for their contributions to the debate. At its start, my hon. Friend the Exchequer Secretary to the Treasury set out the critical importance of the Bill and the Government’s cut to stamp duty land tax. The Bill is important to home movers and to first-time buyers; it is important for jobs and businesses connected to the property industry; and it is important for our economic growth. Stamp duty land tax at high levels can reduce a household’s willingness to move. This tax cut will enable more people to move home each year, which will, in turn, boost economic growth through the businesses and jobs the property industry supports.

The Labour Opposition spokesman, the hon. Member for Ealing North (James Murray), made points about the cost of mortgages due to recent economic uncertainty and interest rate rises. I just point out to him that interest rates and mortgage rates have been rising since last autumn in response to global trends, including Putin’s illegal invasion of Ukraine, and the UK is not immune to these trends. Crucially, interest rates are not solely rising in the UK; the US Federal Reserve has been raising its base rate since March 2022.

[Karl Turner (Kingston upon Hull East) (Lab)]

I just want to be clear: how sure is the Minister that the new Prime Minister is not going to overturn this stamp duty stuff?

[Richard Fuller]

I am more sure of that than I am that I will be in my position tomorrow. This is a serious debate and an important point about mortgage rates has been made. I am just trying to point out the two issues: rates have been rising since autumn; and this is a global change in interest rates.

Our stamp duty cuts will help the situation by reducing the up-front costs of moving. This Bill will save a family moving into an average home in England £2,500. As the Exchequer Secretary mentioned, we are returning money that can be spent to help cover moving costs, improvements, new furniture or appliances.

The Opposition spokesman asked questions about the processing of the Bill, but he missed the fact, of course, that the stamp duty change is already in effect and the Government are continuing with the legislation. The right hon. Member for Hayes and Harlington (John McDonnell) made some good points about house building. I just point out to him that in 2019-20 almost 243,000 net additional dwellings were delivered, which was the highest amount in nearly 20 years; and that at the spending review 2020-21 the Government confirmed £11.5 billion of funding for the affordable homes programme from 2021-22, which is the largest cash investment in affordable housing for a decade and is providing up to 180,000 new homes across England.

The hon. Member for Westmorland and Lonsdale (Tim Farron) repeated the points he made earlier about issues to do with purchasing additional property. I just repeat that the Government’s stamp duty cut will ensure that about 43% of purchases each year will pay no SDLT whatever and that none of those will be purchases of second homes or buy to lets.

The hon. Member for Hampstead and Kilburn (Tulip Siddiq), in closing for the Opposition, said that the Government somehow seem to be encouraging foreign buyers and she talked about introducing a charge for foreign buyers. I just remind her that there is already a 2% charge for non-residents on SDLT.

Let me conclude by reminding this House of what this Bill is all about. It will mean that about 43% of transactions—

Downing Street Garden Event

Karl Turner Excerpts

Tuesday 11th January 2022 Commons Chamber

[Michael Ellis]

My hon. Friend is right to mention that in the governance of this country, and in the performance of the Executive in delivering for the people of this country, both in dealing with the exigencies of the pandemic and in matters such as levelling up, this Government are performing and prioritising. She is right to focus on that. This is, of course, a matter of concern to the House—that is accepted and it is why we are before the House today—but it will be investigated and that will take place in the proper order of events.

[Karl Turner (Kingston upon Hull East) (Lab)]

We know that the Prime Minister is socially distanced from accountability, responsibility and integrity. Can we be absolutely sure that he will be here tomorrow to face the music instead of hiding behind Sue Gray?

[Michael Ellis]

No one is hiding. The fact is that the Prime Minister will be before the House for Prime Minister’s questions in the normal course of events, so tomorrow, at this time, he will be in this Chamber. The reality is that, at the moment, we are awaiting the outcome of an investigation that is in progress. I know that he will want to approach this matter reasonably, and that is to wait for the result of an investigation.

Oral Answers to Questions

Karl Turner Excerpts

Tuesday 7th December 2021 Commons Chamber

[Helen Whately]

We are seeing a growing number of Treasury staff working in Darlington along with many Ministers spending time there. I am due to be there tomorrow and I think that my right hon. Friend the Chief Secretary to the Treasury will also be there this week.

[Karl Turner (Kingston upon Hull East) (Lab)]

T6. The Chancellor was evasive when interviewed by the media last week, but we need a clear answer on this very important point because many people across the country made great personal sacrifices during the lockdown. So will he categorically deny in the House that he or any of his officials or Spads attended any of the Downing Street Christmas parties on 27 November or 18 December last year?

[Rishi Sunak]

No, I did not attend any parties.

Community Debt Advice Services

Karl Turner Excerpts

Wednesday 1st December 2021 Westminster Hall

[Yvonne Fovargue (Makerfield) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Bardell. I congratulate my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) on her well-informed and passionate speech.

We know demand for debt advice services is high and likely to increase, because personal debt is soaring, because of rising energy and food bills, and the end of furlough and debt payment holidays. Those schemes did quite a lot to put off the problem, but it never went away. About 4 million low-income households in the UK are behind on their rent, essential bills and debt payments. That figure has grown threefold since the pandemic, and coupled with that, there have been big changes to the commissioning of debt advice. That was on 16 July, when we had hoped the pandemic was coming to an end, but it is probably still carrying on, so is this the right time for a new and completely different approach?

It is really welcome that MaPS is investing more money in debt advice, and I also welcome the fact that it is looking at the wellbeing of advisers. Debt advice puts a considerable strain on those advising: quite often, the people who come in are at the end of their tether. There was a black joke in the citizens advice bureau I worked at that when somebody came in with a bulging carrier bag, it was going to be a debt client, and the bag would be full of bills that people could not open. They had put them behind the clock until the clock fell off the mantelpiece, and then they would seek debt advice. That was not just those who could not cope, but people from all walks of life, including professional people. Debt has a particular impact on individuals. It often leaves people feeling shame that they are in this position and cannot do what they want for their families. That is wrong, but it is how people feel, and we cannot get away from it.

[Karl Turner (Kingston upon Hull East) (Lab)]

I know that my hon. Friend is an expert in this area, not least because of all of the years that she worked with the CAB. Would she say something about the importance of the holistic approach to advice? This is very often not just about debt, but other issues, including domestic violence. In my experience as a criminal lawyer, people often get into all sorts of difficulties as a result of other factors. Indeed, the problem is often that people have not been pointed in the right direction on issues such as the benefits that they are entitled to, but do not actually claim.

[Yvonne Fovargue]

I thank my hon. Friend for that intervention, and I will be moving on to discuss the wraparound provision, which does not just cover debt advice. We cannot just see debt as the problem: the important thing is the person who has the problem, and we have to deal with all their problems through that person-centred approach. It is no good just dealing with a person’s debt if they also have an employment problem or a housing problem that needs to be solved. We have to look at everything in the round.

--- Later in debate ---

[Karl Turner (Kingston upon Hull East) (Lab)]

It is always a pleasure to serve under your chairship, Ms Bardell. I begin by congratulating my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy). Persistence pays off, because my hon. Friend has been incredibly persistent in securing this very important debate. I thank her very much indeed for that.

I want to begin by paying tribute to Unite the union. It is my trade union and I am very proud of its constructive campaign on this issue. I also want to thank Citizens Advice, a crucial organisation that is important to me and my constituents. For many years I hosted a citizens advice bureau clinic from my constituency office. It was incredibly busy. It was probably then that I recognised how crucial the service was. An array of people came to that clinic, but they were not what one might expect—somebody on the bones of their backside. The people varied. Some were in good, well-paid employment, often coming up against it and getting into real difficulty. As my hon. Friend said, it is true what people say that we are only two pay cheques away from such incredible difficulty ourselves.

I am incredibly proud to represent the constituency of Kingston upon Hull East, not least because I was born and bred there, but we have real difficulties in Hull. I think I am right in saying that insolvency in Hull is double the national average. In 2019-20, before the pandemic, I understand that the CAB saw 6,000 people for debt, 89% of them face to face. I did not intend to detain the House for very long, but I just want to make this one plea to the Minister. I pray in aid for his support in this: we need to pause, because we do not know—we cannot possibly know—what the result of the pandemic is in reality.

I think the Minister has the power to say to MaPS, “Let’s pause now. Let’s not do something that we will potentially regret later on.” I ask the Minister to pause the change, because it is obvious from the hon. Members who have spoken today that it is essential to stop it. I am not suggesting it is finished forever; it might be, but after a period of time and proper, decent consultation, we can revisit this idea. For now, I say to the Minister, “You have the power. Use it rightly and pause this now.”

--- Later in debate ---

[John Glen]

I am grateful to the hon. Lady for that point. The significant concern that the outcome of the commissioning exercise will leave a smaller number of providers that are somewhat detached from local communities and specific needs must be addressed through the process. It would be undesirable for that detachment to lead to a lack of confidence in the new configuration, and MaPS will need to address that directly in how it responds.

When the outcome is secure, it is important that customers’ needs are diagnosed, that they have tailored support, and that providers collaborate to ensure that customers can be referred in a seamless manner when they can be better served by another service within the provision available. I recognise the point that that is not always possible if there is a level of comfort in a specific physical location. How that will be transferred efficiently needs to be looked at. MaPS has not dictated the channel through which advice needs to be provided, although it has required local provision in its regional lots. That is to allow bidders to innovate and compose a service that is aligned to MaPS’ requirements but is also informed by that intimate local knowledge, skills and experience.

A few people mentioned potential adviser redundancies. I will not be able to say anything more until bids are evaluated, and I think colleagues will understand that. However, we strongly encourage MaPS to take all reasonable steps to support the process and use its role as a market steward. That means supporting, where possible, any transfer of undertaking activities that the organisations involved may need to carry out to ensure continuity of employment for debt advisers.

[Karl Turner]

I thank the Minister for his incredibly constructive approach to the debate—we have all seen that. I do not expect an answer, but would he please, at least, consider asking MaPS to pause the process? We are all worried that we do not know the effects of the pandemic.

[John Glen]

I will come on to that in my final remarks. I want to give the hon. Member for Kingston upon Hull West and Hessle a few minutes to speak, but I have a few more paragraphs, if I may.

Where transfer of undertakings regulation does not apply, MaPS must ensure that successful bidders are aware of, and connected with, any skilled advisers and project staff who might be made redundant so they can be considered for new roles. The Government acknowledge that wherever services are subject to commissioning, there may be elements of uncertainty and change for the sector, as is the case with any new policy. The Treasury and the Department for Work and Pensions will ensure that the outcome of the MaPS evaluation and moderation exercise achieves value for money and meets the needs of vulnerable customers, in line with statutory requirements.

On the point made by the hon. Member for Kingston upon Hull East about a pause, I will reflect carefully on that and talk to my officials. There has been a delay in the decision about what would come forward, last Friday. Clearly, this is an incredibly complex and delicate matter. We want to ensure that the new provision meets changes in consumer demand from a commissioning exercise that had not taken place yet under these conditions, but it must also take account of the fact that our experience of the last 18 months is distinct from anything experienced before. That does not mean that we will say that there will be no change, but it means that the change has to be carefully calibrated and justified on the basis of the very real concerns that have been raised. I thank hon. Members from across the Chamber for their insights, which will inform the way I take the matter forward.

Oral Answers to Questions

Karl Turner Excerpts

Tuesday 7th January 2020 Commons Chamber

[John Glen]

I welcome my hon. Friend to her place. I know she has great experience as an SME leader. The Government recognise that SMEs are the backbone of the economy. We have international trade adviser networks giving peer-to-peer support to encourage more exports. The Government’s export strategy, launched in August 2018, lays the foundations of how to extend that. I hope she will be able to make use of it during her time in the House.

[Karl Turner (Kingston upon Hull East) (Lab)]

The “back of a cigarette packet” policy to increase road duty by more than 700% for motor homes and camper vans is reminiscent of the caravan tax of 2013, which I think was invented by the Chancellor’s predecessor George Osborne. That would have decimated manufacturing industry in Hull. Will the Chancellor meet me, colleagues and those in the industry, who are very concerned about this policy, so that they can explain directly to him how disastrous this policy will be for manufacturing industry in Hull?

[Mr Clarke]

I thank the hon. Member for his question. I met the National Caravan Council in October to discuss precisely these issues. We are clear that we need to incentivise the production of lower emission vehicles, but none the less we are sensitive to the concerns of the industry. I will happily meet him for further talks on this issue.