Alcohol Duty Bands
Lord Walney Excerpts(1 year, 9 months ago)
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Lord Walney (CB)
Low-alcohol beers and spirits obviously have a lower duty, but the price to consumers is often comparative or even higher than that of other alcohols. What can the Government do to incentivise lower prices for alcohol-free products, which can have significant health benefits?
Baroness Penn (Con)
The noble Lord is right to point to the fact that, under these reforms, lower-alcohol products—regardless of the type of alcohol product they are—will have a lower duty. That is a significant incentive to people. I am not sure about the other drivers of the higher prices that he referred to; that would have to be looked at more carefully.
Summer Adjournment
Lord Walney Excerpts(5 years, 3 months ago)
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Sir David Amess (Southend West) (Con)
Before the House adjourns for the summer recess, there are a number of points I wish to make. It is really good to see so many colleagues recognising that this is such a valuable debate.
The all-party parliamentary fire safety and rescue group will not shut up until sprinklers are installed in all high-rise buildings and the cladding issue is dealt with following the disaster at Grenfell, just as I will not shut up about city status until it is awarded to Southend-on-Sea. I am glad that the new Prime Minister has said we are going to get it.
Two of my constituents, Stephen and Rosalind Clifton, have paid full contributions for 47 years and, extraordinarily, now find that they do not qualify for a full state pension, so I want an answer from the Treasury Bench on that.
Recently, Mrs Margaret Tothill came to my surgery and told me that in January this year, her granddaughter, Maisie, died in her sleep from a sudden epileptic seizure at the age of 22. The condition is called sudden unexpected death in epilepsy or SUDEP. The charity SUDEP Action has been helping the family with their loss and is calling on the Government to do more to prevent such incidents. Specifically, it is calling for a Government inquiry into avoidable epilepsy deaths and a funded annual risk check for people with epilepsy.
I am very concerned about the number of constituents whose visit visas are being turned down. There does not seem to be any fairness in this. An Australian constituent of mine signed up to an organisation called Sopra Steria and paid £2,400 to try to get a visa. It was a complete mess and now they find they have lost their money and they are having to pay for access again.
Carl Beech—I mean, for goodness’ sake! Harvey Proctor was my neighbour when I was Member of Parliament for Basildon. Leon Brittan died with his name being trashed, and there is Lord Bramall. The way the courts dealt with this matter just is not good enough. People can never restore their reputations, but there should be some compensation. My former colleague, Harvey Proctor, has lost everything, including his home and any future employment.
I recently had a meeting with the Schools Minister—I hope that he is still the Schools Minister—together with my hon. Friend the Member for Rochford and Southend East (James Duddridge) , regarding primary and secondary school funding in our area. We are losing out to London’s schools. Darlinghurst Academy has recently had a wonderful Ofsted report, and I congratulate Emma Nicholls, the executive head, and Mrs Beverley Williams, on all that they have achieved.
I was once a paid advocate for the Caravan Club, although I am not any more. It has advised me that two motor homes that are identical in almost every way can be charged either £265 or £2,135 in vehicle excise duty. This really needs to be looked at by the Treasury, and these vehicles should be classified as commercial vehicles. Recently, I parked my car on a meter but did not have my mobile phone—
Sir David Amess
Yes, but I just want to point out that the clock has not stopped. Okay—it has now.
John Woodcock
The hon. Gentleman is making a really important point. Is he aware that many manufacturers around the country, including Forge Europa in Ulverston, which makes lights for many motor homes, are deeply concerned by this proposed tax change?
Mr Speaker
If the clock was not functioning, it must have been because it was smiling on the hon. Member for Southend West (Sir David Amess), perhaps because it approves of his views on Southend city status. Who knows?
John Woodcock (Barrow and Furness) (Ind)
What a pleasure it is to follow such a compelling speech from the hon. Member for Glasgow South (Stewart Malcolm McDonald). It is to his great credit and of great use to the House that he raised the issues that he did. The plight of Ukraine is too often forgotten about entirely or put to one side by the whole of the west, and this Chamber no less. He is absolutely right to raise the highly suspicious death of Elena Grigorieva. The brutality of the way that she was clearly targeted speaks volumes about the threat to those who are prepared to speak up in Russia and the danger that they put themselves in by speaking up for human rights or by opposing Putin’s regime. We must do more in this Chamber and in this country to oppose the lawlessness and dictatorial nature of that regime.
In this final debate before recess, I want to raise very serious concerns about the current conduct of my hospital trust, the University Hospitals of Morecambe Bay NHS Foundation Trust. Many Members will unfortunately be familiar with the way that the trust was engulfed in a scandal regarding maternity and neonatal deaths over a number of years and with the incredibly difficult process of drawing the culture in Morecambe Bay from being one of the suppression of the truth—of closing ranks around practitioners—into openness. The effort to do that had to be led by grieving families, in the main.
The Kirkup report in 2015 was groundbreaking and had the full support of the former Health Secretary, the right hon. Member for South West Surrey (Mr Hunt), who is now returning to the Back Benches. It drove forward patient safety and transparency right across the NHS, so it is of huge concern that very serious concerns and allegations are now surfacing about the neurology department in Morecambe Bay and about the way that, it seems, the trust is treating a man who was a very highly respected consultant for many years within that department. He felt forced to retire a number of years ago and this week, he published a book, “Whistle in the Wind: Life, death, detriment and dismissal in the NHS—A Whistle-blower’s Story”. I urge the Minister to get word to the Health Secretary to instruct his officials to read that and perhaps to look at it personally. The author makes deeply alarming allegations of malpractice over several years, a number of which concern consultants who are still working in that department. He details a process where he was, in his view, singled out over a period of 10 years, accused anonymously of racism and felt forced to leave the trust.
It is right that these allegations are treated fairly and without prejudice to either side, but what is not right is the way that the trust is seemingly not learning the lessons of transparency. It is refusing FOI requests made by our brilliant local newspaper, which has led the way on this matter. We all owe a debt of thanks to Amy Fenton, a reporter who is just not taking no for an answer. She is being told time and again that she cannot have information from the trust. The Health Secretary must look at this, and I hope that he will come back to us when the House comes back in September.
Santander Closures and Local Communities
Lord Walney Excerpts(5 years, 8 months ago)
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John Woodcock (Barrow and Furness) (Ind)
It is a pleasure to see you in the Chair, Mr Rosindell. I thank the hon. Member for Glasgow East (David Linden) for securing and organising this debate, which I was happy to support.
To strike a note that may be slightly discordant with the speeches of other hon. Members, I must say that I really value online banking. It has been transformative for me personally in terms of ease of access to finance, and we should not forget how many people’s lives it makes easier. I am cautious about unduly amplifying people’s fears about the security of transactions. Yes, there is clearly a big problem with online fraud—I myself was recently a victim to the tune of several thousand pounds—but it is a very small percentage of the overall number of transactions, and the risk lies squarely with the banks themselves. A genuine and proportionate look at the risks associated with online banking suggests that they are often outweighed by the level of convenience that it can bring if we increase people’s online access and computer literacy and ensure that they have a proper understanding.
It is ultimately futile, although it may be gratifying, to rail against individual banks every time they pull out of a high street. I am deeply disappointed that Santander is pulling out of Ulverston, especially given the track record of other banking institutions that have said they foresee only one set of closures, but then, a couple of years down the track or even sooner, close other branches as well. I am waiting for the figures that Santander said it would try to get for me about the busyness of the Barrow-in-Furness branch that customers will be transferred to.
Stephen Gethins (North East Fife) (SNP)
The hon. Gentleman is making a good case. Given the nature of his constituency, which in some ways is very similar to mine, does he agree that the branch network is particularly important to rural areas? In places such as St Andrews and Ulverston, having that rural network goes beyond the personal banking that people can do online; it connects small businesses.
John Woodcock
It absolutely does, and let me say a little more about that point before I go in what may be an unexpected direction and ask whether beating up the banks will really work. The banks on our high streets in communities such as the hon. Gentleman’s and mine are so important for individual customers and businesses. Businesses need access to cash. At the meeting we had last week on the closure in Ulverston, I resolved to help the local business improvement district to survey its businesses about their priorities and needs.
Businesses report a loss of footfall every time a high street branch goes; the evidence is anecdotal at the moment, but we want to put more data behind it. There is also a community aspect. Every bank has a cohort of relatively vulnerable people who rely on it, not only for financial transactions but because it gets them out of the house and, basically, enables banking staff to check that they are okay. As those things are eroded, our communities themselves will bear the brunt.
We will not get anywhere if we do not properly acknowledge the drivers of change within our communities, where people increasingly go online. We have to see what genuine levers we have to change things. That does not mean coming into the House of Commons and shouting at institutions; none the less, we do have levers if we are prepared to come together to demand that the Government use them. For private sector institutions, of course we can do our best to promote the business value of a high street presence. I said last week and I say it strongly again, let us be loyal to the banks that choose to be loyal to our areas.
At the meeting I mentioned, I was impressed to hear from individuals such as the mayor of Ulverston, Dave Webster, who says he has tracked his finances over the years as more and more banks have closed, and will do so again as a Santander customer moving to a branch of a bank that is prepared to have its roots in the town centre. It is good to have the Cumberland Building Society there, which prides itself on keeping footfall in the area. Let us vote with our feet and for institutions that are prepared to root themselves in our areas.
Ultimately, it will be down to the Government to respond. Some Members have rightly mentioned the Post Office. We were pleased and proud to be able to save Ulverston post office from the threat of closure. My goodness, how much more important it will be now as Santander becomes the latest branch to pull out of Ulverston. We require a loss-leading investment in communities and I suggest the Government should ultimately be the guarantor of financial services in an area through an expanded post office network.
I very much add my voice to those speaking out against further branch closures, but I want to add two more elements. First, we have the Post Office card account. I realise that primary responsibility for that lies with the Department for Work and Pensions, but I remember my time in the Department, where I was an adviser to the Secretary of State between 2005 and 2007. Back then, the civil servants, whom we generally worked with very effectively, made the tactics of “Yes, Minister” look timid as they tried to bounce through a policy that radically reduced reliance on Post Office card accounts. Frankly, in the first drafts that we saw, they were not being straight with Post Office card account customers and what their options were. The Minister might like to correct me, but I understand that that process has resumed.
It is outrageous if Post Office card account customers are not clearly told in their advice from the Government and the Post Office that they can maintain a Post Office card account. What was put to us back then and I understand may be being put to the Minister now is advice to customers on how to change from a Post Office card account to a bank account, without telling them explicitly that they have the ability to stay.
Secondly, if the policy is be loss-leading, we cannot just rely on the good will of private banking institutions. Let us put in place an ongoing levy for high street banks to make sure that an institution is rooted in communities, guaranteed by that, and let us strongly consider that institution being the Post Office.
John Glen
I hope the hon. Gentleman will forgive me, but I want to focus on the thoughtful point made by the hon. Member for Barrow and Furness. He referred to his time as an adviser in the Department for Work and Pensions, and to joined-up Government and the Post Office card. It is true that universal credit will have to be paid into bank accounts, but basic bank accounts, which do not involve any fees, are available. Those a viable and accessible alternative. I am happy to take up any further points he wants to make about that, and to learn from his experience in government.
John Woodcock
It would be useful to understand why universal credit is not being made available for payment into Post Office card accounts, but I wanted to intervene on another issue relating to the Post Office. The Minister said the Treasury has a policy on access to cash. One of the big issues with Santander going from Ulverston and, I imagine, other areas is that the cash machine will go as well. We have a post office without a cash machine. That will really damage Ulverston, which is a fabulous market town. On festival days, there are huge queues at the existing cash machine. Can the Government direct the Post Office to increase its cash machines in such areas?
John Glen
I am very happy to look into that. On access to cash machines, as I mentioned in the Adjournment debate last Thursday, we set up the payment systems regulator, which is responsible for overseeing payment systems. The regulator is closely monitoring the situation with LINK and the commitments it has made to maintain the spread of ATMs across the UK. I recognise that the pressure on that network is growing. However, I need to reflect on the relationship with the Post Office rather than trying to answer the hon. Gentleman’s question now.
I am going to make some progress, because I need to leave time for the hon. Member for Glasgow East to respond. Given unparalleled consumer change, the banks have adapted to keep competitive, including by taking some of the decisions we have discussed. That has meant investing unprecedented amounts in digital development, financial capability and tailored support for vulnerable consumers so banking is more personalised, on-demand and flexible, which many people expect in the modern world.
Let me address the impact on the franchising of Crown post offices, which a number of Members raised. Prior to finalising its plans for franchising, the Post Office runs local consultations to engage the local community and help shape its plans. That is in line with its code of practice and has been agreed with Citizens Advice. Indeed, Citizens Advice reported that the Post Office’s consultation process is increasingly effective, with improvements agreed in most cases, demonstrating its willingness to listen to the community.
The Government acknowledge that the post office plays an important part in the lives of customers, and accessibility of post office services is a key Government priority. That is why we have set specific access criteria, requiring 99% of the UK population to be within 3 miles of their nearest post office. Despite the point made by the hon. Member for Heywood and Middleton (Liz McInnes) that legislation does not impose a specific requirement for Post Office Ltd to undertake an equality impact assessment, the Post Office considers the impact of proposed changes to the network on its customers, and the Post Office and all its franchise partners, including WHSmith, are subject to all relevant accessibility legislation.
Class 4 National Insurance Contributions
Lord Walney Excerpts(7 years, 7 months ago)
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Mr Hammond
Yes. As we have now cast more widely our review of the differences in how employees and the self-employed are treated, it is right that we should look at that particular aspect as well, and we will do so.
John Woodcock (Barrow and Furness) (Lab/Co-op)
Can we just be clear: is the Chancellor saying that he was not aware that he was breaking his own manifesto promise until the BBC pointed it out, or that he was aware of it but was just hoping no one noticed?
Mr Hammond
Neither. We understand the commitment that we made to have been discharged by the passage through the House of the National Insurance Contributions (Rate Ceilings) Act 2015, which set out very clearly the scope that the then Chancellor decided to apply to the national insurance contributions lock. That is how the Treasury has worked since 2015, with the locks and ring-fences that were put in place. They are part of the everyday workings of the Treasury, and that was what we worked to in this case. However, I have accepted today that there is a broader interpretation—based on the manifesto itself, not the legislation that implemented it—and that is why I have come to the House and made this statement.
Charter for Budget Responsibility
Lord Walney Excerpts(10 years, 7 months ago)
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Ed Balls
As we and many others have pointed out, including the National Housing Federation, the Government’s bedroom tax is pushing people on to housing benefit in the private sector—on higher rents—so there is a grave risk that it is going to cost money, rather than save money. We will abolish the bedroom tax, within the welfare cap set out on page 87 of the Red Book. That is our very clear position. I have to say to the hon. Gentleman that in Enfield, Southgate there has been a 500% rise in long-term youth unemployment, and he should be backing our compulsory jobs guarantee.
John Woodcock (Barrow and Furness) (Lab/Co-op)
Will the Chancellor take this opportunity to confirm that he will never follow the shameful record of the Conservative party, which in the 1990s took people off jobseeker’s allowance and actively put them on the sick? We still bear the scars of that policy today.
Ed Balls
It started in 1986 under a Conservative Prime Minister and social security Secretary, it was called “restart” and it actively moved people from JSA— unemployment benefit—on to long-term sickness and invalidity benefits. It meant that very many people then spent many years out of work. It was a shameful policy.
amendment of the law
Lord Walney Excerpts(10 years, 7 months ago)
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John Woodcock (Barrow and Furness) (Lab/Co-op)
What a pleasure to follow such a well delivered speech. I only wish that the hon. Member for Romsey and Southampton North (Caroline Nokes) had more time so that she could go into more detail about the reaction of pub dwellers in Romsey or Southampton North when she went in and said, “We have an amazing new offer: buy 300 pints and get one free!” I am sure they were absolutely overwhelmed.
We were told that this Budget would be for savers, and yet the Office for Budget Responsibility says that it will be followed by a sharp drop in the savings ratio. It was supposed to be a Budget for exporters, but the OBR predicts that export volume growth will be less than half what is needed by the Chancellor to meet his targets. It was also supposed to a Budget that learned lessons from the past, but estimates of household debt have now been revised up to near the levels they were at before the global crash. This is not a Budget for the long term. They are not a Government who are thinking of the country’s long-term future. They are an Administration doing, I am afraid, what Tory Administrations always do: trying to manufacture a pre-election splurge, whatever the long-term consequences, and rarely, if ever, intervening in a market, regardless of whether that market happens to be working in the interests of the country and its citizens.
This Government came to power and delayed infrastructure decisions. They told skilled manufacturing workers in sectors such as defence that Ministers were only really interested in buying off the shelf from abroad. They may have changed their tune now, but the world is moving so fast and we will rue these years of stagnation. I am afraid that the ambition remains limited and the delivery too often feeble. Where there is investment, there is little sign that the Government are willing to act to lever in the maximum possible benefit to the community.
In my constituency and in those neighbouring it in south and west Cumbria, we are about to see a scale of industrial investment in the area that will exceed that of the 2012 Olympic games. That includes new civil nuclear capacity; GlaxoSmithKline’s first factory in the UK for 40 years; and the work to enable Barrow shipyard to build the next generation of nuclear submarines. All those are extremely welcome and are a result of the consensus that we forged in government, which—thank goodness—at least one of the Government parties is now on board with taking forward.
When we saw high levels of investment in the area during the 1980s, that coincided with a time of growing divisions in our communities—wealth for a few, destitution for many others. The investment came via a Government who celebrated the concept of trickle-down economics. Yes, Barrow grew in the 1980s, but so did hardship and hopelessness. When recession and mass redundancies came to the shipyard on their watch the last time, it was truly devastating. We still bear the scars of those days.
Look at the parallel now, when rising employment sits alongside an explosion of food banks and desperation. With Olympic-scale investment coming our way, the Government should be doing so much more in Cumbria, helping us to ensure that those massive projects can be delivered simultaneously, which is a big challenge in itself, and, equally importantly, that they will lead to sustained jobs, skills and prosperity for as many people as possible. Unfortunately, there is little sign of that so far, and the expertise that would have been best placed to do much of the work—the Northwest regional development agency—is long gone.
Therefore, as the Government parties stand back, we will step in. My hon. Friend the Member for Copeland (Mr Reed) and I will work with Cumbria’s local enterprise partnership to bring together the employers, investors, schools, colleges and councils to work our how best to make this succeed for all of us for the long term, and to do better than the last time they were in charge.
The Chancellor needed to up his game on long-term infrastructure planning in this Budget, but there was precious little sign of that. He needed to show that he understood how Governments of all colours had damaged the country with stop-start infrastructure spending. Rather than being determined to micro-manage every mile of road in the Budget statement, a truly radical Chancellor would take have taken infrastructure planning off the political merry-go-round. We need a binding, independent body that can lock in a long-term infrastructure plan, making it much harder for today’s—I am sorry to have to break it to them—transient Ministers to unpick.
Instead, we have had the inevitable re-announcement of the ever-hardy perennial, the prospective garden city in Ebbsfleet, but nothing that will fundamentally solve our housing crisis. This Budget was as great a missed opportunity as much of the past four years has been. The Prime Minister can tweet the rhetoric, but he and his Chancellor are just not up to the job. It will be up to us to put that right.
Consumer Rights Bill
Lord Walney Excerpts(10 years, 9 months ago)
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Vince Cable
I know very well my hon. Friend’s interest in this area and the work that he has done on it. He has made Eastbourne an exemplar of good practice. I accept that local authority budgets are squeezed, and sometimes trading standards are squeezed relatively severely. We can help with that by helping to rationalise their operations, training and cross-border co-operation. I am happy to meet my hon. Friend and others, cross-party or otherwise, to see how we can progress this.
A further set of measures in the Bill relates to consumer law enforcement. We will consolidate and simplify the investigatory powers of consumer law enforcers—this takes us back to the discussion we have just had on local trading standards officers—into one generic set to make it easier for enforcers and businesses to understand what powers can be used and in what circumstances. We estimate that that measure alone will save businesses around £40 million during the next 10 years. We will also make it easier for trading standards to collaborate across local authority boundaries to tackle the kind of rogues we saw in a recent scam drawing people throughout the country into costly and unnecessary driveway repairs.
John Woodcock (Barrow and Furness) (Lab/Co-op)
I thank the Secretary of State for his generosity in giving way, particularly as I unfortunately missed the start of his speech. He makes an interesting speech—as interesting as he can given the subject. Why is there so little in the Bill for people who are failed by public sector agencies? Is there not a great need for increased rights when consumers or citizens find themselves on the wrong side of these bureaucracies when they let them down?
Vince Cable
Some of us find this a passionately interesting subject. The enthusiasm shows, I know. There is the ombudsman for the public sector. One could argue that the legislation will bring the private sector up to the same standards of scrutiny that we would expect when there are failures in public administration.
Financial Services (Banking Reform) Bill
Lord Walney Excerpts(10 years, 10 months ago)
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Sajid Javid
I will say a little more about the timetable in a moment, but it is a bit unfair of the hon. Gentleman to say that the Government have had years to introduce the cap, when the Government whom he supported had 13 years to introduce a cap and did nothing.
A number of steps must be taken before the cap can be implemented. All of those steps are important and if they are rushed, it will put consumer protection at risk for the sake of speed. There must first be evidence gathering and analysis. That is critical in getting the cap right. The FCA will draw on the evidence that the Competition Commission has collected. It might also have to get information from lenders and others in the market to get on with its work as quickly as possible. Yesterday, the Government laid secondary legislation before Parliament that will allow the FCA to seek information from the industry. That will support the design of the cap and the cost-benefit analysis that the FCA must issue.
The second and most vital part of the process is the consultation with interested parties on the proposals and their impact, as set out in the cost-benefit analysis. The final component that is necessary for the successful implementation of the cap is that lenders must be given a short period in which to update their systems and processes to meet the new requirements and become responsible, compliant lenders. Difficult though that is, we are not prepared to compromise on the process because that could lead to poor outcomes for consumers.
Sajid Javid
I need to plough on; I am sorry.
I thank the hon. Member for Kilmarnock and Loudoun for giving me the opportunity to set out the FCA’s plans for implementation. I hope that has provided reassurance that the FCA is committed to taking action as soon as possible, and that she will feel able to withdraw her amendment.
In summary, the Government believe that a cap on the cost of payday loans is necessary better to protect consumers from excessive spiralling costs, working alongside regulatory interventions that the FCA is already proposing to clamp down on the causes of consumer harm in the payday lending market.
Amendments 162 and 163 will provide significant benefit to consumers and financial services businesses that have been affected by poor practice in the claims management industry. Claims management companies have a legitimate role in helping consumers claim compensation, but a minority have acted irresponsibly. Despite the threat of suspension or cancellation of authorisation, some CMCs act speculatively and submit illegitimate claims that clog up the system and ultimately impose costs and delays on consumers. The amendments will give the claims management regulator power to impose financial penalties on CMCs that are guilty of misconduct.
The Government’s amendments provide a new form of redress—including financial compensation for consumers affected by a poor service from CMCs—by introducing a mechanism for the cost of handling complaints to be recouped from the industry. Together, the amendments will help ensure that the claims management industry acts more responsibly, and where it does not the regulator and Office for Legal Complaints can take action.
The Government agree with Lords amendments 153 and 154 that provide the PRA with a secondary competition objective and the FCA with competition powers that are exercisable concurrently with the Competition and Markets Authority. The Government are committed to improving competition in our banking sector to drive up consumer outcomes. A secondary competition objective for the PRA was recommended by the PCBS, and the Government accepted it. That objective will ensure that the PRA remains above all the watchdog for financial stability, but we will require it to play a more proactive role on competition.
Cathy Jamieson
That is an important issue that ought to give us more food for thought. In certain circumstances, families might need to borrow on a short-term basis and be perfectly able to pay it back on time without it causing them long-term damage, but they would want to know, before taking out such a loan, that it could damage their credit rating.
I want to return to those who perhaps suffer most from the payday lending sector. Despite changing their tune and bowing to pressure from the Opposition and campaigners at the sharp end, the Government have not gone far enough to protect hard-working families from falling into unmanageable debt. That is why, even at this late stage, we have tabled our amendments. On the first, which relates to data sharing, I am sure the Minister will be aware of the concerns set out by StepChange Debt Charity about how the FCA’s proposed responsible lending rules fail to make payday lenders use real-time credit data in their loan decision making. It says that evidence from its clients suggests that payday lenders often use out-of-date credit data and therefore fail to pick up on whether borrowers have existing payday loans. Understandably, it then makes the point that lenders cannot be sure they are lending responsibly.
As we have heard repeatedly, multiple payday loans from different lenders are a major cause of debt problems. Two thirds of StepChange clients reporting financial difficulties with payday loans have been granted overlapping payday loans from different lenders. It also argues that the regulator’s responsible lending rules transpose Office of Fair Trading guidance into binding rules but continue to allow payday lenders to make loans without using that up-to-date information about borrowers’ existing financial commitments. That is obviously causing particularly severe problems for those who get into difficulty with multiple payday loans.
We should listen to what StepChange tells us about the growing problem of people being lent one unaffordable loan after another as they struggle to pay off the loans falling due. It tells us that more than 30,000 people contacted it for help with payday loans in the first six months of 2013—almost double the figure for the previous year. The average amount owed on payday loans by its clients has risen to more than £1,600, creating severe financial difficulties for those clients. In some circumstances, even a whole month’s income would not cover the repayments. It also tells us that a typical client with payday loans now has three payday loan debts and that one in five have five or more with different lenders.
Therefore, it is clear that different payday lenders granting overlapping loans is a major cause of payday debt dependency and that current procedures are not working. It is thus sensible for the FCA to require payday lenders to make use of up-to-date credit information on a borrower’s short-term commitments when they decide whether to issue or extend a loan. Payday lenders have long claimed to be working towards a system of sharing credit data in real time. They have been talking about it for more than two years, but there has been no solution.
John Woodcock
My hon. Friend is making a very good speech. We have heard the Minister say at the Dispatch Box that the Government are now committed to tackling this issue, whether belatedly or not. This is such a good opportunity to show that we can all be as one in the House and to take action where there is still clearly a problem, as she is so amply setting out.
Cathy Jamieson
I thank my hon. Friend for his kind words about my comments. I am simply putting forward the views brought to us by the people at the sharp end who have experienced the worst problems from payday lending. I pay tribute to those people again for doing so. I agree that it would be wonderful if we could secure some further consensus on these problems and send a clear message to the industry, particularly on advertising. The advertising spend of the top five payday lending brands apparently stands at about £36 million a year. That seems to suggest that they are investing heavily in attracting new borrowers at the same time as being not quite as willing to invest in responsible lending.
Trident Alternatives Review
Lord Walney Excerpts(11 years, 3 months ago)
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Danny Alexander
I will take one more intervention, then I will make some progress.
John Woodcock (Barrow and Furness) (Lab/Co-op)
I very much appreciate the Chief Secretary to the Treasury giving way. Further to the point on the submarine building industry, and in relation to the £4 billion saving that he has just mentioned, does he accept that chart 2 on page 42 of the document includes the platform, the missile, the infrastructure, the warhead and the policy change costs, but does not include the cost of bringing forward the next submarine project to plug the gap in the Barrow shipyard’s order book? That omission could cripple submarine building in this country for ever.
Danny Alexander
One of the review’s assumptions is that we would wish to maintain our sovereign submarine building capability. That is the policy of the Government and it sounds as though it is the hon. Gentleman’s policy, too—[Interruption.] If hon. Members will calm down for a second, I will tell them that it does include the cost of maintaining that capability. All the alternatives include the procurement of further submarines after the successor.
As the House knows, the review was commissioned by the Prime Minister and Deputy Prime Minister, initially with my hon. Friend the Member for North Devon as the Minister in charge. My hon. Friend deserves a huge share of the credit for this work. It has been taken forward under the auspices of the Cabinet Office, with a cross-government team of expert civilian and military officials. I should like to take this opportunity to thank them for their hard work.
During my visits to Aldermaston, Faslane and Coulport as part of the review, I had the privilege of meeting many of the submariners of the Royal Navy, as well as the scientists, engineers and other civilians who support them. They are some of Britain’s hidden heroes, often unsung, who operate at the limits of human understanding. Seeing them in action also gives me confidence that if the next Government were to change their mission, they would deliver it just as effectively, and in the most efficient and credible way. The review will provide the opportunity to do that.
As I said in response to an earlier intervention, it is also important to be clear what the review was not about. First, it was not about short-term savings to help to deal with the current deficit. It is possible under some of the options that savings against current plans would start to accrue from the mid-2020s, but this is not about back-filling budgets in the next Parliament. As I also said earlier, the review has not addressed the question of whether the UK should remain a nuclear weapon power, because complete unilateral disarmament is not the policy of either the Conservative party or the Liberal Democrats—or, indeed, of Labour. The review did not seek to address the question of whether we should possess nuclear weapons. However, the scale and posture of our nuclear weapon capability can change.
John Woodcock
The right hon. and learned Member for North East Fife (Sir Menzies Campbell) has a point, but does it not prove that we have learnt from our past mistakes and clearly the Liberal Democrats have not?
Mr Jones
I did not say that, actually. I said what the Defence Secretary has said—that in thinking about the new nuclear submarines, we should consider whether it would be viable to have three. That is an option worth looking at. We would then have to bring forward the successor programme for Astute. If we deleted two boats—[Interruption.] The hon. Member for North Devon says, “It’s all right if we do it.” The fact is that if we went down to two we would have a deterrent that is absolutely useless. It would not save the £4 billion that the Chief Secretary suggested because unless we had mass lay-offs in the submarine-building programme, we would have to bring forward more work, including on the successor for Astute.
John Woodcock
Is that not the exact point? Would it not be helpful if the Chief Secretary made clear whether he wants to save that £4 billion over 30 years and decimate Barrow and the submarine-building industry, or whether he will bring forward the work and eliminate all those savings?
John Woodcock (Barrow and Furness) (Lab/Co-op)
It is a pleasure to follow the hon. Member for North Devon (Sir Nick Harvey), even if I think it is regrettable that he did not take this opportunity to clarify the remark about sending Barrow workers to the Bahamas, which caused real offence in my constituency. I do acknowledge, however, that he has spent a lot of time over the past two years on this review, even if I find his conclusions completely wayward.
This was supposed to be the Liberal Democrats’ opportunity to show that they could be trusted with the defence of the realm, and I have to say they have blown their chance spectacularly. Smashing the hegemony of a blinkered defence cartel that silenced any debate on the deterrent was heralded as one of the great Lib Dem wins from the coalition negotiations. We can imagine Lib Dem Members reassuring their concerned activists: “Yes, we’re more unpopular than we’ve ever been. Yes, we’re breaking our promises to students. Yes, we’ve given up any hope of being called the progressive party for a generation. Yet we bring you a referendum on the alternative vote, and we will challenge the tyranny of Trident renewal that has bewitched the two other parties.” It has not gone very well, has it?
Mr Kevan Jones
As I understand it, now the Liberal Democrats’ position is pro-Trident. It might be because of the fact that they are only going to have two submarines, but is that not a major change from the last general election?
John Woodcock
I would describe it as a complete collapse in the Liberal Democrats’ position. Two years on, we have a taxpayer-funded document—how much did this process cost the taxpayer, by the way? The document basically confirms what we duped fools have been arguing for years—that unless people show their true colours and come out as unilateral disarmers, and in doing so advocate a path that we strongly believe would make the horror of a nuclear war more likely, there is no credible, cost-effective alternative to the fundamentals of the existing plan to replace our fleet of deterrent submarines.
The alternative review rejects as unworkable and even more expensive what had long been the Liberal Democrats’ preferred option—some sort of mini-deterrent. Then the fall-back plan of halving the number of replacement Vanguard submarines to two, fervently briefed to the newspapers over the weekend, turns out not to have been considered by the review at all. Would anyone like to explain this? Have Liberal Democrats realised that every idea they have put forward so far has collapsed under scrutiny? Did they come to a view that it was best not to test this one in the official review, lest those pesky facts and figures ruin it like all the others?
Dr Julian Lewis
The hon. Gentleman may be aware that all the talk about the Liberal Democrat conference considering a two-boat option comes from a Liberal Democrat document that has been drawn up by a Liberal Democrat group. When I asked the Chief Secretary earlier today at a briefing whether any copy of the review was going to be taken to the Liberal Democrat conference for consideration, he said, “Well, I might take a copy, but it will just be in my briefcase.” In other words, the review is not the document that the Liberal Democrats are going to consider. They are going to consider a completely different document making completely different recommendations, which the review did not even bother to consider.
John Woodcock
The hon. Gentleman is right. If we were living through a Monty Python sketch, this would be the point when the army major intervenes and says that this is all getting too silly and we have to stop it at once. But of course the consequences for the nation’s security, and the 13,000 people directly employed in Barrow and across the UK, would be bitterly serious if the Liberal Democrats had their way on their part-time deterrent idea. That is why it would be a very good thing if this shambolic process now sunk without trace. Even their own document makes it clear just how hopeless an alternative a part-time deterrent would be. It states that
“a 3-boat fleet would risk multiple unplanned breaks in continuous covert patrolling as well as requiring regular planned breaks for maintenance and/or training.”
They are effectively suggesting that we pay billions for something that we cannot be sure will be available to do the deterring when needed.
Proper analysis of the figures makes clear the economic folly of the argument. The Chief Secretary told me that he had considered the cost of maintaining Britain’s submarine-building capacity at Barrow and elsewhere, but his own document makes no suggestion, as far as I can see, that the savings take account of that. It suggests that the extra costs from 2025 of bringing forward the next submarine programme—the successors to the Astute—to avoid a crippling gap in the order book of the shipyard are simply not considered in the £4 billion saving. When he sums up, will the Minister finally confirm what the Chief Secretary has so far avoided admitting—that these relatively modest savings would be completely wiped out by the extra cost?
The choice that the next Government but one would face would be either to leave a gap in construction so large that it could end the country’s capacity to build submarines for ever, sacrificing all those 13,000 jobs, or to end up saving no money at all by embarking on a whole new submarine-building enterprise before it is needed by the Royal Navy.
Dr Fox
Will the hon. Gentleman confirm that the figures are actually worse than that? The savings that the Chief Secretary set out will not accumulate until far later in the period, while the costs that the hon. Gentleman is describing would be incurred very early in the process.
John Woodcock
Absolutely. On the Liberal Democrats’ official figures, the savings will not even start to accrue until 2025, but by that time work would have to be well under way in Barrow shipyard and the supply chain to make the costly preparations for the Astute successor submarines. The Liberal Democrats need to come clean about the extra cost, because it makes a mockery of what the right hon. Gentleman rightly said are incredibly modest savings over a 30, 40 or 50-year period.
It should be remembered that the capacity to build nuclear submarines is one of the very few sovereign protected capabilities deemed so important and sensitive that the overwhelming majority of construction must be carried out on British soil. The submarine supply chain—centred in Barrow, but stretching from Aberdeen to Plymouth—is so advanced and finely tuned that any period in which it is left idle risks destroying it entirely. That is the lesson of the mass redundancies in my constituency in the 1990s. It is a great shame that some of those who now have the privilege of governing do not seem to have learnt a thing.
Mr Bernard Jenkin (Harwich and North Essex) (Con)
On a point of order, Mr Speaker. I am distressed to raise this point, but for some reason the Chief Secretary seems to have adopted a posture of preserved deterrence—that is, he is not here. He left the Chamber shortly after the Opposition spokesman sat down, in a three-hour debate of such importance. I am afraid that I regard that as rather a discourtesy to the House. Did the Chief Secretary give a reason when he left the Chamber and, if not, should he not have done so as a courtesy to the House?
Oral Answers to Questions
Lord Walney Excerpts(11 years, 4 months ago)
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John Woodcock (Barrow and Furness) (Lab/Co-op)
20. Why have 80% of the projects in the Treasury’s infrastructure pipeline not even started construction yet?
Danny Alexander
A vast number of projects are under way, and a vast number of projects are in the pipeline to start, where work and planning permission are going on. These projects are being delivered up and down the country, and I have to say to the hon. Gentleman that he should show a little humility in this matter. After all, this Government are investing a greater share of our nation’s income in infrastructure during this Parliament than his party managed during its 13 years in office.