Exiting the European Union (Excise)

Lisa Cameron Excerpts

Wednesday 3rd February 2021 Commons Chamber

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

Before I begin to speak today, it is appropriate that I declare an interest as chair of the all-party group for textiles and fashion, and that I express my thanks to Heather Lafferty and Tamara Cincik of Fashion Roundtable, and Chantelle De Villiers from the British Retail Consortium, for their important work campaigning right across the United Kingdom on these matters.

One of the positives to come out of the pandemic has surely been the celebration of heroes in our local communities, care homes, schools and NHS. We do not often think of retailers, shop owners or small businesses across the UK as some of the heroes of the pandemic, but in reality we should. When we boil down the pandemic to its simplest principles, we see shops and local businesses doing everything they can, even to the point of closure, so that we can keep the most vulnerable in our communities safe. Many of these same businesses will be the first to face the economic and employment consequences of a 7.3% decrease in non-EU visitors to the UK, which is what is predicted by the Centre for Economics and Business Research as a result of the Government scrapping the VAT retail export scheme. So it would be remiss of me, as chair of the all-party group on textiles and fashion, not to focus my remarks today on the impact of this decision on the textile and fashion industry across Scotland and across the United Kingdom.

The Government have gone to great lengths to stress their commitment to levelling up the economy out of the pandemic and to boosting the economic performance of the cities and regions of the United Kingdom way beyond London. In their exit from the VAT retail export scheme, however, it would appear that the Government have fallen at the first hurdle. The Evening Standard reported before Christmas that £500 million of tax-free shopping takes place in over 12,000 stores outside London each year. Fashion Roundtable estimates that the fashion industry in Scotland is made up of nearly 2,000 businesses and employs 30,000 people. In 2019, £92 million in VAT-free fashion purchases were made in Edinburgh and a further £23 million in VAT-free fashion purchases were made in Glasgow and surrounding areas. Each of these purchases supports our high streets, businesses and jobs—high streets that need every purchase to survive at this time, businesses that are at the heart of local communities and jobs that help to provide for families and loved ones.

Hundreds of employees in my constituency are reeling already from the announcement of Boohoo’s takeover of Debenhams and the lack of investment in bricks-and-mortar stores in our town centres. Every single one of them is facing untold uncertainty as to what the future holds, so Government must support the recovery of retail. It is my very present fear that thousands more will be affected across Scotland if we fail to do everything in our power to support our high streets and those who work in them.

Tourism is indeed the beating heart of our high streets and of the fashion industry as a whole. However, tourists in search of high-end purchases from UK stores will show retailers and those employed by them very little loyalty if there is ample incentive to shop elsewhere. Scottish Enterprise estimates that the tourist industry in Scotland is made up of 15,000 companies employing 218,000 people. That is 15,000 companies and 218,000 people whose businesses and jobs could be affected as a consequence of tourists choosing to shop and visit elsewhere. For my local area and region surrounding the constituency, that is close to 30,000 people. The ripple effect of this decision to leave the VAT retail export scheme should not be understated. Tourists have come to the UK in search of retail purchases and, for the duration of their stay, let us not forget, they experience, visit and, most importantly for our debate today, buy so much more. We will lose their business to other destinations that continue to offer VAT-free shopping.

There are so many whose livelihoods depend on the distinctiveness and renown that come from being branded with the label “Made in Scotland”, the inspiration, flavour, taste or beauty of which cannot be found anywhere else in the world. These are businesses and jobs that depend heavily on the tourist trade. They have had their businesses decimated by covid-19, and they are relying on a strong rebound in tourist travel out of this pandemic for their very survival. So we should and must do everything we can to encourage tourism. Too many businesses and too many jobs in fashion, retail and further afield are at risk if we fail to do so.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I am very sorry, but we do have to move on.

Covid-19: Economic Package

Lisa Cameron Excerpts

Tuesday 12th May 2020 Commons Chamber

[Rishi Sunak]

Let me start by conveying the thanks of the whole House, and certainly of the Government, to my hon. Friend’s constituents for the role that they are playing in trialling the new app. That will be important as we look to gain control of this virus in the second and third phase of our approach to tackling it. Will he please pass on our thanks to all his constituents? I reassure him that they are very much in our minds. We know that the sector he mentioned is struggling and will need support. The document that the Government published yesterday spoke about creating an industry taskforce, and I look forward to working with my hon. Friend, and others, as we chart a future for those in the leisure, hospitality and tourism sectors.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP) [V]]

The all-party group for disability, which I chair, believes it is crucial that the Chancellor accelerates efforts to include people with disabilities in the economic recovery plan, enabling a disability-inclusive covid-19 response. Will he address that issue by undertaking an impact assessment of the economic recovery plan, based on equalities principles?

[Rishi Sunak]

The Government and the Treasury will, of course, undertake all appropriate equalities and disabilities assessments for policies as they are unveiled and as is required. I have talked about this issue in the past with the hon. Lady, and the Budget outlined something that she and I care very much about, which is the Changing Places campaign for those with complex disabilities. We created a fund to help local authorities and businesses to adapt or build new changing places that will benefit hundreds of thousands of those, especially young children, who suffer with complex disabilities, and who require different types of facilities so that they can enjoy time with their families out and about. I hope we can continue to work closely on that issue.

Beer and Pub Taxation

Lisa Cameron Excerpts

Wednesday 5th February 2020 Westminster Hall

[Mike Wood]

My right hon. Friend makes an important point. I have a feeling the Minister might just touch on small brewers relief in his response to the debate, because the Treasury has of course conducted a review into it, and we are all looking forward to seeing some of the results of that review—hopefully, we will see them before too long.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

Will the hon. Gentleman give way?

[John Howell (Henley) (Con)]

Will my hon. Friend give way?

[Mike Wood]

If I may, I will give way to the hon. Lady first, and then I will come back to my hon. Friend.

[Dr Cameron]

I thank the hon. Gentleman for giving way and for bringing this extremely important debate to the House today. Does he agree that we also need common-sense rateable values? The Glassford Inn in our community is under threat of closure due to the ridiculous rateable value that has been placed on it, meaning that it would actually have to sell a drink to every single person in the village every single night of the week just to meet the rates, never mind make any profit and pay the staff. Does the hon. Gentleman agree that common sense is needed in this agenda and that we must support our rural pubs so that they can continue?

[Mike Wood]

The system of non-domestic rates—business rates—is fundamentally a system of local taxation that was designed in the 19th century, building on the previous poor law. It really does not suit the needs and features of a 21st-century economy, particularly one where so much retail is increasingly moving out of town or on to the internet—as yet, nobody has designed an effective virtual pub that can serve a virtual beer that is quite a satisfying as the real thing. We are in a position where our community pubs are at an unfair disadvantage, as the hon. Lady says, compared with businesses that can reduce their liabilities.

Special Educational Needs and Disability Funding

Lisa Cameron Excerpts

Wednesday 29th January 2020 Westminster Hall

[Munira Wilson]

Absolutely. My right hon. Friend makes an excellent point. I was going to touch on deficits later, because Richmond’s finances are in a parlous situation for that very reason.

To return to the main topic of SEND funding, many children are missing out on the support that they require and deserve, because of the enormous funding pressures on local councils and schools throughout the country. The SEND funding landscape is complicated by the fact that there are two separate funding pots. There is the high needs block for EHCPs, special schools and alternative provision; and children with moderate SEND, requiring in-school support, are funded out of core school budgets. Simultaneous demands on both have created the perfect storm. School cuts since 2015 mean that support staff have been the first to be cut. That in turn has led to increased demand on EHCPs, causing delays.

As a parent of two young children, I know that if either of them needed additional support, I and my husband would explore every single avenue open to us to apply maximum pressure on decision makers to ensure that those needs were met fully. However, many parents do not have the time, resources or confidence to navigate the complex system of appeals, ombudsmen and tribunals—even with the support of SEND advocacy groups such as the excellent Skylarks charity in my constituency. The result is that the most disadvantaged families often lose out.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

I commend the hon. Lady for bringing such an important issue to the House today. I refer the House to my entry in the Register of Members’ Financial Interests. Does she agree that part of the funding issue is that there is now a lack of educational psychologists who are able to assess children at an early stage, particularly in relation to disability, learning disability and autism, and that means that a much greater burden is placed on teachers? That cannot go on, because we are failing the children we really need to be supporting.

[Munira Wilson]

Absolutely. The hon. Lady makes an excellent point, which feeds into all the wider workforce debates that we are having in relation to both health and social care and the education sector.

With both schools and councils under serious financial strain, perverse incentives in our SEND funding system start to emerge. Councils expect schools to cough up £6,000 before they will consider a pupil for an EHCP, so headteachers are often more reluctant to send children for a diagnosis. When councils, schools and health services are all cash-strapped, is it any wonder that EHCPs might be bland and vague, failing to guarantee the support to which a child is entitled? That in turn may lead to further delay or indecision. And what is the result? Many children are missing out, and local authorities find themselves in dire financial straits.

One report estimates a national high needs spending deficit of between £1.2 billion and £1.6 billion by 2021. Many authorities are relying on reserves to make up the shortfall. In Richmond this year alone the SEND funding gap is £4.9 million in year. The cumulative figure will be a staggering £15.85 million by the end of this financial year. That is despite tight financial management across the wider schools’ budget to keep the high needs deficit down. Such a significant and growing deficit is unsustainable and could result in other, non-statutory council services being cut. That is merely robbing Peter to pay Paul, and we are all too aware that local authorities have absolutely no fat left to cut.

The recent Government announcement about putting £780 million into SEND funding was of course very welcome, but that does not even begin to scratch the surface. Not only was it a single-year announcement but money was not targeted at those authorities where the SEND need was greatest, because of the way the funding formula operates. That meant that some local authorities with no SEND deficits received significant additional funding, whereas others, such as Richmond, received the minimum, barely 50% of the current year shortfall, so we have half a sticking-plaster solution.

The Department has previously advised Richmond Council to ring-fence the dedicated schools grant deficit, but auditors, the Treasury and the Ministry of Housing, Communities and Local Government refuse to accept that approach. I hope that the Minister can provide further cross-departmental guidance on that point. Indeed, I would like to request that the Secretary of State for Education meets me, my hon. Friend the Member for Richmond Park (Sarah Olney), and senior Richmond councillors and officers to find a solution to the incredibly challenging situation in which the borough finds itself.

I have spoken extensively about the impact on council finances, but we must not forget that at the centre of every tough and contested decision is a child in need of support in order to learn, develop and flourish to their full potential, and a family experiencing stress, anxiety and often financial hardship to ensure that their child has the appropriate support in place. Richmond SEND Crisis tells me that some families spend £30,000 on tribunals, sometimes remortgaging their homes to do so, and we know that many people cannot afford to do that.

Last year, four in 10 EHCPs were not finalised before the statutory 20-week deadline, according to freedom of information requests via the BBC. Many parents are resorting to home schooling because they have given up waiting for a placement in an education setting.

What are the solutions? As well as a significant cash injection, we need to remove the perverse incentives. For example, at the election the Liberal Democrats proposed reducing the £6,000 that schools are expected to pay for each child with SEND. We should not punish schools for doing the right thing. Councils need to get the basics rights on EHCPs, and they need adequate staff and resources to do so.

Finally, a national SEND strategy from the Government would encourage councils to share specialist SEND services where relevant, such as provision for deaf children. A national strategy should also set out steps to ensure that central Government, local government, schools and, critically, health and social services—which have not always stepped up to the plate on EHCPs—work together more effectively.

Economy and Jobs

Lisa Cameron Excerpts

Monday 20th January 2020 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

I rise in support of the amendment standing in the name of my right hon. Friend the Member for Kingston and Surbiton (Sir Edward Davey).

This, of course, is not my maiden speech, although it is the first time I have spoken in the Chamber after an enforced absence of two and a half years—not quite as long as the break that the Conservatives have taken in representing Newcastle-under-Lyme. The hon. Member for Newcastle-under-Lyme (Aaron Bell) gave us a very entertaining maiden speech, for which I thank him. I welcome him to the House.

This year is likely to be a watershed for the British economy and will have long-lasting impacts on the shape of our nation’s employment. After three and a half years of wrangling, we stand here on the verge of leaving the European Union. We will be abandoning the structures that have underpinned our economy for 40 years; that have enabled businesses across this country to grow their market without barriers or obstacles; that fostered relationships between individuals and organisations to their mutual benefit; and that gave us the easy access to a wider range of goods and services than we could produce ourselves. They gave our young people the option to travel freely across 28 countries, and gave us the benefit of the skills and experience of people who could travel freely back to us.

Although I reluctantly concede that Brexit is now happening, I continue to be baffled as to why. Given that delivering Brexit was the centre of the Conservative manifesto, I was hoping that my confusion could be cleared up by reference to their programme for government. The Queen’s Speech opens by telling us that the Government plans to make the most of the opportunities that Brexit brings for all the people of the United Kingdom, but there is no further mention of what the opportunities are or what the Government plan to do to make the most of them.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

I thank the hon. Lady for giving way. She is making an excellent speech. In relation to making sure that the economy works for everyone, does she agree that it is extremely important that the economy works for people with disabilities, so that they are able to get into employment? We should also champion opportunity for people with disabilities to become entrepreneurs themselves and to run businesses, because without everyone being involved in the economy, it is really worth nothing at all for anybody.

[Sarah Olney]

I thank the hon. Member for her intervention. I agree 100% with her points.

It is striking how often the words “maintain”, “continue” and, dare I say, “remain” appear in the briefing notes about the planned financial services legislation. The importance of the financial services sector to our economy is underlined, but the message is that, far from leveraging the opportunities of leaving the EU to enhance this key sector, every effort must be made to keep things exactly as they are. That is in direct contrast to the comments last week of the outgoing Governor of the Bank of England, who said that close alignment on financial services would not be in the UK’s interests, as we would effectively be surrendering control of regulations to a body over which we have no power. That surely highlights the conundrum at the heart of Brexit. Do we want close alignment with the EU to smooth the path of our exports, or do we want to take control of our own destiny and set our own rules? The Queen’s Speech, alas, gives us no indication of the path that the Government plan to take.

We see that conundrum highlighted further in the trade Bill. Its commitments to transitioning trade agreements that we are currently party to as members of the EU are undermined by the Chancellor’s comments at the weekend that he wishes to see no alignment with the EU. We cannot transition trade agreements smoothly if we wish to renegotiate the terms on which they are agreed. Again, there is no clarity on what the Government have chosen—alignment without influence or frictionless trade? Are we to have cake or will we eat it? The Government announced their plans to set up a UK-based body to plead with the international community not to be unkind to UK firms. I wait eagerly to see whether this policy is more effective at protecting the interests of UK businesses than having a seat at the table of international rule-setting trade bodies.

The Liberal Democrats made changes to business rates a central part of our 2019 manifesto, because we recognise that urgent reform of this regressive tax is required to support small businesses and revive town centres. I therefore welcome the Government’s commitment to conducting a fundamental review of business rates, but I regret that they do not use their substantial majority in this place to commit to a more radical change. The Government state in the briefing notes that they recognise

“the role of business rates as a source of local authority income”,

as if to warn us that we can have thriving town centres or well-funded local services, but not both. It is disingenuous of the Government to pretend that they cannot resolve this conundrum through proper reform of local government finance.

I welcome the Government’s commitment to protect and enhance workers’ rights as the UK leaves the EU, but regret that they have not provided more detail as to exactly how those rights would be upheld. Liberal Democrats would like to see employees on zero-hours contracts given the right to request a permanent contract after 12 months, but the Government only commit to enabling them to request a more predictable contract—a guaranteed single hour of work, perhaps.

It is disappointing that there has been no mention in the Queen’s Speech of reforming either the loan charge or the IR35 regime. The loan charge is causing intense distress to innocent taxpayers up and down the country that is unlikely to be alleviated by the recent recommendations from Sir Amyas Morse, and the IR35 legislation—a looming disaster for the self-employed in the private sector—is not mentioned either. The Chancellor has only committed to a review.

I take this opportunity to highlight the excellent neonatal unit at Kingston Hospital in my constituency, and the fantastic staff who work there. I should also like to mention the charity Born Too Soon, which does amazing work supporting families whose babies have to stay at the unit. To my deep and lasting sadness, we were once one of those families, so I feel qualified to welcome uncritically the Government’s commitment to paid neonatal leave for those parents who find themselves in that incredibly difficult position.

The Prime Minister promised us a radical and reforming Queen’s Speech, but the most striking feature of its plans for the economy and jobs is its timidity and uncertainty. There is bold talk of making the most of the opportunities presented by Brexit, but very little detail. It is almost as though the Government are not really sure what they want to do with the Brexit that they secured a mandate for. If the best they can come up with is to commit to keeping everything just the same as it was, I am forced to wonder why on earth we are leaving the European Union at all.

HMRC Tax Office: Cumbernauld

Lisa Cameron Excerpts

Tuesday 14th January 2020 Commons Chamber

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

I am very grateful for the opportunity once again to bring HMRC’s disastrous proposals to close Cumbernauld tax office to the House’s attention. Let me begin by paying tribute to its workforce for their dedicated service and thanking their representatives in the Public and Commercial Services Union, who have worked tirelessly on their behalf to make the case for keeping jobs in Cumbernauld.

If implemented, these proposals will be a huge blow to the workers at HMRC Cumbernauld, many of whom have given decades of service, and many of whom will not be able to transfer to the Glasgow office for a variety of reasons. If implemented, they will also be a disaster for the whole town and community of Cumbernauld. Finally, quite simply, they make no sense from the point of view of taxpayers generally. These are, of course, the workers who ensure the collection of the taxes that are needed to fund our vital public services. Disrupting them, putting some of them out of a job, reducing their capacity and moving them to more expensive inner-city accommodation seems to serve a dubious purpose, to put it mildly.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

My hon. Friend is making an excellent speech. A tax office in the centre of East Kilbride is also due to be closed, although it has been a pivotal place for tax collection in Scotland. This whole agenda goes against the Government’s towns initiative. Moving jobs from towns to cities is counter productive, and counteracts what the Prime Minister set out in his agenda.

[Stuart C. McDonald]

My hon. Friend has made a powerful point, and I shall say more about it later in my speech. The experience so far of similar changes in other parts of the United Kingdom seems to be that it is harmful to the collection of taxes, rather than helpful to the work that HMRC employees are trying to do.

As some Members may know—my hon. Friend certainly does—the proposal to close the Cumbernauld tax office forms part of a massive programme of reform to the HMRC estate, which has been given the title “Building our future”. Members on both sides of the House—including, obviously, my hon. Friend—may have seen similar offices close in their own constituencies, or may be battling similar proposals.

The scale of the changes and cuts faced by HMRC has been extraordinary. When it was formed in 2005, HMRC had 96,000 full-time equivalent members of staff in 593 offices; less than a decade later, staff numbers had fallen to below 60,000 based in fewer than 190 offices. “Building our future” set out to close 137 of those remaining offices, and to centralise even fewer workers in just 13 large regional hubs with between 1,200 and 6,000 staff. It seems that HMRC will shed many thousand more jobs during this process, with tens of thousands having to move location.

--- Later in debate ---

[Jesse Norman]

I have no doubt that HMRC, which is operationally responsible for this change and for the management of its business, will have spoken very closely with the relevant unions on this issue, as it has been doing in other areas, too.

If I may, with your permission, Mr Speaker, I will continue to make some progress on my speech. In November 2015, HMRC announced that in the following 10 years it would seek to bring its employees together in 13 regional offices based in locations where it already had a significant presence, such as Glasgow, which is one of the two HMRC regional centres in Scotland. The co-locating of teams across HMRC is designed to lead to increased collaboration and flexibility, making it easier for skills across a lot of teams to be shared and for teams to switch between communications channels and subject areas in order to meet the evolving needs of taxpayers. HMRC recognises that the transition may not be easy and has put considerable support in place to help its workforce through these changes. The hon. Gentleman has mentioned that and I will address that support in due course.

In Glasgow, the regional centre will be situated in the heart of the city at 1 Atlantic Square and is currently in development. It will be home to some 2,600 HMRC staff, who will be moving from six offices around the region in order to fulfil a wide range of tax professional and operational roles, including in compliance and in large business relationships.

[Dr Cameron]

Does the Minister recognise, however, that HMRC’s plans to move the hubs to city locations are counterproductive and undermine the Government’s own agenda to try to support development in towns? The specialist expertise is already in the towns, so why are we moving the hubs to cities, against even the Prime Minister’s aims of reinvigorating towns?

[Jesse Norman]

The hon. Lady is right to say that the Government take the needs of towns seriously. That is why we have a towns fund, which, in turn, works with a much wider spread of support that we are giving to cities. Of course towns have their uses and functions, and cities have theirs. HMRC is seeking to use the benefits of the city: the capacity to agglomerate services and bring people together, and give them proper communications and technology support. Those are things from which both HMRC and those staff will benefit.

I have taken a lot of interventions and I now have a limited amount of time, so I will make progress. HMRC has already opened three new regional centres in Croydon, Bristol and Belfast, with staff planned to move to the Edinburgh regional centre later this year. Construction is under way at all the remaining new locations, including Cardiff, Leeds, Liverpool, Manchester, Nottingham, Birmingham and Stratford.

In addition to the 13 regional centres, HMRC will keep eight transitional sites open across the UK for several years to help retain key skills during the transition period, as well as five specialist sites for work that cannot be done elsewhere. For example, HMRC will retain Telford as a site for some of its specialist digital teams. Through this phased approach, HMRC will seek to minimise disruption to business operations.

The overall programme will deliver savings to the taxpayer of around £300 million up to 2025 and then rising cash savings, estimated to be more than £90 million by 2028. It also avoids additional costs of £75 million a year from 2021, when the current PFI contract with Mapeley, agreed by the last Labour Government, comes to an end.