Retailers: Business Rates

Debate between Lord Bates and Lord Bird

Monday 8th April 2019 Lords Chamber

[Lord Bates]

My noble friend looked at this area when she was Commercial Secretary to the Treasury. As a result of that review in 2016, a number of changes were made that had a significant impact, such as doubling small business relief from 50% to 100% for those with a value less than £12,000, moving to more frequent revaluations, which were asked for, and moving the multiplier in inflation rates from the RPI to the CPI. All these things are making a difference. It is not that we cannot see the big problems on the high street at the moment, which is why the Chancellor announced his £1.6 billion package in the Budget of 2018.

[Lord Bird (CB)]

Can we accept the fact that a bookshop on a high street has such an enormous social echo that it actually makes the high street a lot better? Can we start seeing our bookshops in a different way and not simply as traders in the marketplace?

[Lord Bates]

There is a social value there, and significant steps are being taken on the purely financial side—the retail discount and the small business rate relief apply to eligible bookshops—to protect that vital form of social and intellectual capital on our high streets.

National Insurance Contributions Holiday

Debate between Lord Bates and Lord Bird

Wednesday 27th March 2019 Lords Chamber

[Lord Bates]

We are running very hard on this agenda. I mentioned the 713,000 more people in work, and I would have thought that that would be welcomed on all sides of this House.

[Lord Bird (CB)]

Is it possible to include people who are banged up at the moment? If we can actually get them into work when they get out of prison, as a disadvantaged group, the knock-on effects are enormous. People who have a job when they leave tend not to reoffend.

[Lord Bates]

That is absolutely right, and the noble Lord has done more than probably anyone else to improve the chances of people in those circumstances. That is one reason why we announced the rough sleepers initiative and why we have this new education network, which is being trialled with governors. But we cannot get away from the stark statistic that although care leavers represent only 1% of 19 to 21 year-olds, they represent 24% of the prison population. That has to be an area that we all focus on, on a cross-party basis.

Housing: Rent Payment History

Debate between Lord Bates and Lord Bird

Wednesday 31st October 2018 Lords Chamber

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, the Government believe it is right that a history of paying rent should be recognised in tenants’ credit scores, including where tenants share payment of their rent. At the Autumn Budget in 2017 we announced the Rent Recognition Challenge, a £2 million competition seeking technological solutions to enable tenants to record and share their rental data.

[Lord Bird (CB)]

My Lords, I thank the noble Lord for that Answer. The real problem is not so much gathering the information—although it is very good that we are getting a move on towards doing that—but getting the credit service providers to use it. Are the Government doing anything in particular to make sure that all this information helps to put an end to the divide between the people who have a mortgage and can get a high credit rating and those who get a low credit rating simply because they are paying rent?

[Lord Bates]

First, I pay tribute to the work that the noble Lord has consistently done in raising this issue up the agenda. It is indeed something that the Government are taking seriously and they are working with the Financial Conduct Authority and the regulators to see how this can be done. The noble Lord will have noticed the welcome announcement last week that Experian intends to take into account rental contributions as part of credit scoring. That will make a significant difference along the lines that we want—that is, getting the major credit reference agencies to use this data in ensuring that lenders have an accurate reflection of an applicant’s ability to service a loan.

Creditworthiness Assessment Bill [HL]

Debate between Lord Bates and Lord Bird

Committee: 1st sitting (Hansard): House of Lords
Friday 11th May 2018 Lords Chamber

[Lord Bates]

I hear what the noble Baroness says but, as other Members have pointed out in the debate, there is the risk of some unintended consequences as a result of taking this approach. I have also outlined that we are not dismissing the problem, but are seeking an alternative route to solving it which we believe will be more effective and fairer, and avoid some of those unintended consequences. If that turns out not to be the case, of course we are always open to review our position vis-à-vis proposals such as this, and we will continue to act in that way because our first priority is to protect the most vulnerable and help them make a better future for themselves and their families by getting access to home ownership.

[Lord Bird (CB)]

I really enjoyed that. That was a brilliant array of political parties coming together in the House. I am really glad. I am also glad that the noble Lord, Lord Blencathra, introduced the amendments in his name and that of the noble Lord, Lord Naseby, because they allow us to address the laws of unintended consequences. The noble Baroness, Lady Lister, also raised the question.

I come from a long line of people who did not pay credit. I am not likely in my dotage to be grassing up the people I come from. My mother used to go to a doorstep lender, who would direct her to a particular shop, where we paid through the nose over and again in the 1950s, 1960s and 1970s, until she died in absolute poverty in the late 1970s. I am not going to grass these people up, I assure your Lordships. Actually, I am much more interested in the 15% or 20% of people who are going to find it very difficult to get credit. They are finding it very difficult to get credit now.

--- Later in debate ---

[Lord Bates]

My Lords, I think I can be brief on this group. I thank my noble friend for moving the amendment. This group of amendments concerns the proposal for the Financial Conduct Authority to conduct a review into the experience of rental tenants, with particular regard to their ability to demonstrate their creditworthiness under the existing rules.

I remind the Committee that the FCA recently consulted on proposed changes to its rules and guidance on assessing creditworthiness in consumer credit and has undertaken research on this subject, which carefully considered the factors that firms take into account when making lending decisions. This consultation made direct reference to the current limitations on sharing rental data and the potential for new technology to alleviate them. That is the purpose behind the rent recognition challenge.

Furthermore, in April 2018 the FCA announced that it will conduct a market study on credit information. A consumer’s credit information affects how likely they are to be able to access a range of financial services, including mortgages, loans and credit cards. Consumers may experience harm, such as restricted access to credit, if this information, such as rental payment history, is not shared effectively. The FCA’s aim is to ensure the credit information market works as well as possible to maximise the benefits that it can deliver for consumers. The FCA will also collect evidence to gain a better understanding of the potential for harm in this market and, if necessary, identify remedies. This study will be launched in quarter four of 2018. Finally, the FCA conducts a review of all new interventions as a matter of course and continues to monitor the market for consumer detriment on an ongoing basis.

In conclusion, I put it to the Committee that the need for a further review by the Financial Conduct Authority into this issue is unclear, as the regulator is already carrying out extensive work in this field. The Government’s position on the Creditworthiness Assessment Bill therefore remains unchanged.

[Lord Bird]

I am pleased that the noble Lord has withdrawn—I feel a great victory. We have to move on to the next stage, and I thank the noble Lord, Lord Bates, for this great opportunity to respond to what we said. I thank the noble Baronesses, Lady Grender and Lady Thornton. It seemed all a bit “spaghetti” just now, so forgive me my trespasses. I will sit down. Thank you very much indeed.