Rebecca Long Bailey debates involving the Department for Business, Energy and Industrial Strategy during the 2017-2019 Parliament

Oral Answers to Questions

Rebecca Long Bailey Excerpts
Tuesday 16th October 2018

(5 years, 7 months ago)

Commons Chamber
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Greg Clark Portrait Greg Clark
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I think it is well known, and my right hon. Friend is aware, that we have been one of the leading forces in the world in ensuring that the rules should be changed, so that companies that currently pay little tax because of international agreements make a fair contribution. There is more to be done, but my right hon. Friend served in Cabinets in which this was put at the top of the agenda, and some progress has been made.

Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford and Eccles) (Lab)
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I warmly welcome the Under-Secretary of State, the hon. Member for Rochester and Strood (Kelly Tolhurst), to her new role. I am sure she will do fantastically.

All the major business representatives, from the CBI to the chambers of commerce and the Federation of Small Businesses, have highlighted the need for business rates reform and temporary relief. The CBI says:

“The…system is stifling growth and investment”,

and the FSB says it creates a significant barrier to small business growth. Can the Secretary of State confirm today whether there will be any action on this issue in the forthcoming Budget?

Greg Clark Portrait Greg Clark
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The hon. Lady knows that decisions on the Budget are for the Chancellor, but one of the measures we have taken, which I hope she would acknowledge, is a very substantial reduction in the burden of business rates on small businesses. That shows that the Government are alive to the importance of business rates for small businesses. We of course listen constantly to the organisations she mentions, but also to the Retail Sector Council.

Rebecca Long Bailey Portrait Rebecca Long Bailey
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I suddenly have a sense of déjà vu. At the last autumn statement, business groups warned of the devastating effect of business rates. In return, we saw only minor tinkering. Since then we have had a raft of store closures, with more than 100,000 retail jobs lost in the past three years. Many businesses cite business rates as a root cause. The Secretary of State has reportedly said that adjusting business rates would be one way to recognise the value of our high streets, yet the Chancellor said in July that there were no plans for reform. Just what is going on? Will there be action, or should we expect another year of meaningless tinkering from the Chancellor?

Green GB Week and Clean Growth

Rebecca Long Bailey Excerpts
Monday 15th October 2018

(5 years, 7 months ago)

Commons Chamber
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Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford and Eccles) (Lab)
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I thank the Minister for advance sight of her statement today. I am pleased to be responding to the news that she has written to the Committee on Climate Change asking for advice on setting a date for achieving net zero greenhouse gas emissions. However, despite any good intentions she may have had in writing that letter, she must understand that Government policy is demonstrably incompatible with that goal.

First, investment in renewable energy has undergone what the Environmental Audit Committee refers to as a “dramatic and worrying collapse”—falling 56% in 2017. Changes in planning rules and Government funding since 2015 have seen the rate of deployment of new solar fall 95%, and planning applications for new onshore wind fall 94%. The Government now plan to remove support to small-scale renewables, which according to the Solar Trade Association, risks the almost total collapse of the industry. How is this compatible with net zero emissions?

Secondly, this Government and the last have sadly overseen a collapse in investment in energy efficiency, with Energy UK pointing to a 53% drop in investment between 2012 and 2015, an 80% reduction in improvement measures, and further declines projected to 2020. Again, how is this compatible with net zero emissions?

Thirdly, this Government have pursued a policy of fracking at any cost, overruling local planning decisions and reportedly even considering relaxing earthquake regulations. Shale gas can only be described as low carbon if it replaces coal in the energy mix, but coal is already on its way out of the UK’s energy mix, before fracking has even started. If shale gas were to come online now, it would be displacing genuinely low carbon energy, not coal. James Hansen, the former NASA scientist known as the father of climate science last week slammed this Government’s decision to pursue fracking as “aping” Donald Trump. What a terrible irony it is that the first day of Green Great Britain Week is the day that fracking is due to commence in Preston. How is this compatible with net zero emissions?

Fourthly, last week the Government announced that they are cutting the electric vehicle plug-in grant by £1,000—a move described by industry as “astounding”. Fifthly, according to the Committee on Climate Change, the Government are off course to meet existing carbon budgets, which are set with a view to achieving an 80% reduction in emissions by 2050. So I ask again: how is this compatible with meeting the more ambitious target of net zero emissions?

I believe that the answer to that question is contained within today’s letter to the Committee on Climate Change, in which the Minister describes carbon budgets 3 to 5, which run up to 2032, as “out of scope” of the referral. By effectively ruling out any additional action on climate change in the next 14 years, the Government seem to be asking the committee for advice but only in so far as they do not actually have to act on it. Unlike Labour’s plan to dramatically decarbonise energy supply and insulate 4 million homes as part of a green jobs revolution, the Government do not expect actually to implement any of the real measures needed to avert dangerous climate change. Sadly, without more robust and radical action from the Minister, she must realise that her Government’s vision for a green Great Britain is just a great green washout.

Oral Answers to Questions

Rebecca Long Bailey Excerpts
Tuesday 17th July 2018

(5 years, 10 months ago)

Commons Chamber
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Greg Clark Portrait Greg Clark
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I and our colleagues in the Treasury have constant discussions with the services sector. It is important that our distinctive financial services sector not be subject to a set of rules in the future that might be very much against its interests. Everyone who knows the City needs to recognise that the flexibility and distinctiveness of our approach must continue.

Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford and Eccles) (Lab)
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Airbus, Jaguar Land Rover, BMW, Siemens—just a few of the businesses that have recently spoken out about the Government’s handling of Brexit. They alone provide thousands of jobs and significant investment in the UK, but the Government’s chaos is putting this in jeopardy. The Secretary of State himself was forced to rebuke the flagrant dismissal of his own Front-Bench colleagues, stating that big employers were entitled to be listened to with respect. Would he say that he has now listened to the concerns of business with respect?

Greg Clark Portrait Greg Clark
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The hon. Lady is absolutely right. Those businesses did speak out. Since the publication of the White Paper, they have also recognised that the zero-friction proposal made in it merits support and they have committed to advocating for it across the rest of the EU, as I hope that she will.

Rebecca Long Bailey Portrait Rebecca Long Bailey
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Well, the CBI and the British Chambers of Commerce have both said they are no clearer on the Government’s negotiating position in several key areas, and last night business leaders are reported to have warned the Prime Minister that her customs legislation was not fit for purpose, but the Government pressed ahead, even accepting amendments that their own colleagues state fundamentally undermine the Chequers proposal, and wrecked it, caving in to the hard, no deal Brexiteers. When exactly will the Secretary of State’s Government start paying more than lip service to the concerns of business?

Greg Clark Portrait Greg Clark
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The hon. Lady is wrong. All the organisations she mentioned have given the White Paper and the Chequers proposals a warm welcome. In the Prime Minister’s Mansion House speech, we committed to minimising frictions at the border. The proposal now is to have zero friction at the border. That is strongly in the interests of business and allows our successful supply chains to continue to prosper. We need the Opposition to recognise the national interest in having a good deal. Almost everyone in the country wants a good deal negotiated between Britain and the EU. Rather than edging for difference and trying to make political points, she should get behind this excellent suggestion for the country.

Oral Answers to Questions

Rebecca Long Bailey Excerpts
Tuesday 12th June 2018

(5 years, 11 months ago)

Commons Chamber
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Claire Perry Portrait Claire Perry
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My hon. Friend is right. I should clarify that we are entering commercial negotiations—a deal needs to be done—but we should make a virtue of the fact that we have one of the most diversified energy supplies in the world and one of the lowest-carbon energy supplies. We have also managed to get ourselves off coal, which other countries long to do.

Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford and Eccles) (Lab)
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The Government’s shambolic policy on the solar and onshore wind sectors in recent years has meant that significant economic growth and decarbonisation opportunities have been lost. For example, we have seen dramatic feed-in tariff subsidy cuts; business and VAT rate hikes; and obstruction to clean power auctions. Sadly, as we have heard today, there are reports that the Swansea Bay tidal lagoon, the world’s first tidal lagoon, which would create thousands of jobs and local supply chains and use 100,000 tonnes of majority British steel, is potentially on the Secretary of State’s hit list. Will the Minister buck that trend today and confirm when the decision will be made, and outline what support she will give to solar and onshore wind?

Claire Perry Portrait Claire Perry
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I remain bemused by the hon. Lady’s ability to seize a disaster out of a triumph. We have delivered more renewable energy than we ever thought possible, at a price that is unimaginable—[Interruption.] I know the Opposition Front Benchers do not give a stuff about consumer bills, as they have made that totally obvious, but we care about decarbonisation at the right price for the consumer.

Rebecca Long Bailey Portrait Rebecca Long Bailey
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I think we touched a nerve there. The Minister is living in a parallel universe to me, because in the first quarter of 2018 the deployment of new solar slowed to its lowest level since 2010, and next year onshore wind installation is expected to be at its lowest level since before 2008. But it gets worse: last November, the industrial strategy was published, yet seven months on progress has been slow, with business becoming increasingly frustrated. The industrial strategy council has not yet been appointed, no strategy for reaching the research and development target has been published and dozens of sectors are waiting for responses to their sector deals. So does the Minister accept, as some key business leaders do, that perhaps her Government’s chaos over Brexit and the apparent inability even to concentrate on an industrial strategy are undermining British business and indeed our growth?

Claire Perry Portrait Claire Perry
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The previous point still stands. We are incredibly proud of our industrial strategy, with its groundbreaking opportunities to link up government and businesses for the first time. I go back to the point on the hon. Lady’s questions about solar: the thing about offshore wind is that we lead—[Interruption.] Again, if they could all stop chuntering, Mr Speaker—God almighty. We lead the world in terms of the installed capacity, and we have created tens of thousands of jobs. I know the Opposition Front Benchers, as per the first question, do not give a stuff about jobs, let alone consumer bills, but the point is that—

Retail Sector

Rebecca Long Bailey Excerpts
Wednesday 6th June 2018

(5 years, 11 months ago)

Commons Chamber
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Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford and Eccles) (Lab)
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I beg to move,

That this House notes that 21,000 jobs were lost in the retail sector in the first three months of 2018 due to store closures and company administrations, with more announced since; further notes that the retail sector is one of the largest employers in the UK and contributed £94.6 billion to the UK economy in 2016; regrets that the Government’s industrial strategy contains only three references to the retail sector; further regrets that the Government has presided over the biggest squeeze in wage growth in a generation, is failing to provide certainty around future trading arrangements after Brexit and has failed to ensure a fair business rates system; and calls on the Government to urgently publish a strategy for the retail sector.

Melanie Onn Portrait Melanie Onn (Great Grimsby) (Lab)
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Will the shadow Minister give way?

Melanie Onn Portrait Melanie Onn
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I thank the shadow Minister. The point on business rates is one that small businesses in my constituency regularly raise with me as something that not only curtails their opportunity to grow, but impedes their security for the immediate future. Does she think that the Government should do something about this immediately?

Rebecca Long Bailey Portrait Rebecca Long Bailey
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I thank my hon. Friend for her intervention and I completely agree. I will come on to business rates and the action that I would suggest that the Government take shortly.

Kate Green Portrait Kate Green (Stretford and Urmston) (Lab)
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I welcome this debate. My hon. Friend may be aware of research by Revo and intu shopping centres that looked at the UK’s appeal to international investors in the retail sector. They highlighted that business rates were the single biggest inhibitor of new international inward investment. Does she agree that that is a further reason why, in a post-Brexit environment, it will be all the more important that we review our business rate regime?

Rebecca Long Bailey Portrait Rebecca Long Bailey
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Yes, and I thank my hon. Friend for her intervention—I completely agree. Before I start the substantive part of my comments, it is important to note that the commercial retail sector has faced significant strain over recent years, affecting landlords and tenants alike. That is not least due to the business rates system. A lot of major property investors—for example, St Modwen—have divested themselves of their retail arms, because they are simply not profitable anymore, not only for tenants but for landlords, so it is critical that the business rates question is addressed urgently.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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I really appreciate my hon. Friend giving way on such an important issue as business rates. Can she fathom why the Government, when they announced 15 months ago that they were going to review business rates, have not done anything to progress this issue?

Rebecca Long Bailey Portrait Rebecca Long Bailey
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I completely agree, and now I will begin the substantive part of my comments, if I may.

The retail sector is undergoing a period of transformative change that will impact millions of workers across the UK. As has been played out in the press over the last few months, the sector is experiencing huge challenges, with almost silence from the Government, sadly. We have seen an onslaught of store changes; big-name chains that have been the stalwart of our town centres and high streets for years have collapsed and gone into administration.

Alex Cunningham Portrait Alex Cunningham (Stockton North) (Lab)
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My home town of Stockton won the rising star award in the British high street awards, sponsored, ironically, by Marks & Spencer, which is now abandoning our town after taking profits from our people for over a century. We believe however that our town has got a future, but does my hon. Friend agree that firms like Marks & Spencer should consider the future prospects of towns properly, and show a bit of loyalty to their loyal customers instead of taking their profits and running off to out-of-town shopping centres?

Rebecca Long Bailey Portrait Rebecca Long Bailey
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I agree with my hon. Friend, but the issue is twofold. It is not simply about imposing obligations on businesses; the Government have a duty to provide a fertile business environment in which large and small businesses can grow and provide a positive contribution to their communities.

Toys R Us and Maplin collapsed on the same day in February, putting 5,500 jobs at risk in one day. Card Factory, Moss Bros, Laura Ashley, Carpetright and Mothercare have all issued profit warnings this year, and some have entered into company voluntary arrangements, with hundreds of store closures expected. In April we heard news of a possible merger between Asda and Sainsbury’s; a couple of weeks ago the one and only Marks & Spencer announced it will be closing 14 branches this year and 100 stores by 2022; and just this week there were reports that House of Fraser is on the brink of collapse and attempting to negotiate a CVA. That list is not exhaustive but it clearly demonstrates the scale of the challenge faced by the industry.

I am sure many Members across the House will at one point or another have worked in the retail sector; it is many people’s first experience of the working world, as it was for me. My first job was as an assistant at a pawn shop. I must clarify that it was a pawn, not a porn, shop—at a meeting a few years ago I said I had worked in a pawn shop and one lady in the audience, thinking it was a porn shop, was horrified. That first job was important because it taught me valuable skills and allowed me to gain some financial independence, but for millions of people retail is not just a Saturday job; it is their livelihood. It is therefore vital that the Government take the challenges facing the sector seriously and provide support to it.

The industry is one of the largest sectors in the UK, contributing £94.6 billion to the UK economy in 2016. However, staggeringly, its productivity is less than four-fifths that of the national average, and this low productivity drags down the productivity of the UK, a point made recently by the Institute for Public Policy Research. And, sadly, with low productivity comes low pay. We should not fall into the trap of thinking that all people in retail are low paid and in economic hardship—the student doing a summer job would certainly not be in that position—but there is a widespread problem in the retail sector, and according to the Joseph Rowntree Foundation there are around 1.5 million people in low pay in retail, with a higher proportion of households facing economic hardship than in working households generally.

Because retail is such a large sector, the industry now accounts for just under one third of the total number of people in low pay in the UK. The economic importance of the sector should therefore not be understated, and the Government should be doing more to support it. I am sure the Secretary of State will listen to my suggestions today, but I hope that when he speaks later he staggers me with a comprehensive plan to support the sector.

I will start my kind suggestions to the Secretary of State by saying that one of the most glaring omissions from the industrial strategy White Paper was an appreciation that an industrial strategy is not just about labs or hard-hats, but is also about low productivity service sectors, where the majority of people work. Investing in and talking about headline-grabbing hi-tech industries is of course critical, but this alone does not constitute an industrial strategy. Despite the Government’s intention to improve productivity, sadly the industrial strategy Green Paper mentioned retail only twice in 132 pages, and the White Paper only three times in 256 pages, with vague references to working

“closely with sectors such as hospitality, retail and tourism on each of the foundations of productivity”,

but with very little detail to match.

Many challenges are facing the sector, and I will touch on just a few key areas today. Retail firms have since the economic crisis come under increasing pressure. Things have got so bad that in the first three months of 2018 some 21,000 jobs in the retail sector were at risk. The drive towards online retailing, and indeed bad weather, have of course had a significant impact on our spending habits, but one reason for this that is rarely mentioned is a clear failure to sustain wage growth. Wages are not expected to return to pre-crash levels until at least 2022, and household debt has spiralled to unprecedented levels. This clearly has a significant impact on what people spend their money on, with many, sadly, relying on credit cards just to get by each week, never mind buy luxury items.

The Office for National Statistics has stated that consumer spending is worth around 60% of GDP, and it has been one of the driving forces behind the recovery of the UK economy. Interestingly, however, trends are showing that British consumers have stopped taking on more debt, and Credit Suisse recently told clients that it believes this trend will continue, which would damage one of the key drivers of GDP growth.

Another issue is the increasingly hostile business environment many retailers are now facing. But it is not just businesses that will lose out: communities are having their hearts ripped out and high street after high street is becoming littered with empty shops, charity shops and bookmakers.

Ged Killen Portrait Ged Killen (Rutherglen and Hamilton West) (Lab/Co-op)
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Does my hon. Friend agree that another issue for high streets is that the banks have been leaving? Many retailers tell me that having an ATM beside their business makes all the difference to their takings. Does my hon. Friend think that the Government, as the majority shareholder in RBS, should step up to the mark and take action on branch closures?

Rebecca Long Bailey Portrait Rebecca Long Bailey
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I completely agree, and interestingly historically RBS had a last-man-standing agreement to be the last bank on many high streets, and that does not seem to have been enforced by the Government, so I call on the Secretary of State to look at this. My hon. Friend makes a pertinent point, and it is not just bank closures that are damaging the high street infrastructure; the closure of post offices is also a significant issue.

These issues are exacerbated even further by years of under-investment in many of our regions and nations. If the Government are not prepared to provide the tools businesses and communities need to provide a fertile environment for local businesses, how can we expect these fortunes to change? A worrying report by David Jinks called “The Death of the High Street” argues that, unless we see radical change within 13 years, the impact of online shopping and home deliveries will “destroy” over half of today’s town centre stores. His report also argues that between 2020 and 2030 half of the UK’s existing shop premises will disappear; 100,000 stores will close, leaving just 120,000 shops on our high streets.

Britain’s high streets are fading away because new shops are not opening fast enough to replace those that close. The Government attempted to deal with this issue through the Portas review, which advised that town teams be created to assist towns undergoing significant strain, but official funding for town teams ended on 1 April 2015.

The Government’s recent announcement to develop local industrial strategies was a welcome step forward. However, think-tank Localis stated last month that there was a capacity gap in Whitehall for developing these, leading to concern that a pipeline of local industrial strategies will face significant delays. I will be grateful if the Secretary of State provides clarity on this and confirms what resources are available to local enterprise partnerships and local authorities in taking these strategies forward.

EU funding has also been a significant supporting factor to many areas in decline; it has always been strongly targeted at less prosperous regions. The Government are currently failing to provide any certainty to business over the UK’s future trading relationship with the EU, the extent of regulatory alignment, or access to labour, but they have also failed to provide clarity on one key tool that previously helped spur the regeneration of many towns and high streets that had been starved of investment: EU structural funds. We know that the Government are planning a new fund to replace them when we leave the EU, but so far there has been no commitment on the scale of that fund, on how it will be administered or which investment it will be directed at. Will the Secretary of State give us more information on that today?

When we add to this massive uncertainty the significant cuts that local authorities have faced in recent years, we have a recipe for complete high street annihilation. That environment, and the lack of support that many businesses face, was made very clear in the shambolic handling of last year’s business rates revaluation, in which many businesses faced an unmanageable overnight hike in their rates. I am pleased that the Government have brought forward CPI indexation, but I urge them to go further by immediately introducing statutory annual revaluations, guaranteeing a fair and transparent appeals process and excluding new investment in plant and machinery from future business rates valuations. They must urgently evaluate and reform the whole system to make it fit for purpose and capable of addressing the changes that we are seeing in the sector.

Businesses were failed not only in regard to business rates; we also saw a failure to handle the scourge of late payments, which can lead to businesses struggling to cover costs or to invest, and sometimes going bust. We saw the effects of this recently in the collapse of Carillion, when huge swathes of supply chain companies faced a cliff edge due to late payments, often of up to 120 days. Many of those businesses will never see their money again. I urge the Government to adopt Labour’s position by ensuring that anyone bidding for a Government contract is mandated to pay their own suppliers within 30 days and by developing a robust system of binding arbitration and fines for persistent late payers.

As the retail sector struggles, how to boost productivity remains a major challenge. There are at least two schools of thought on this. The first concentrates on improving technology and ultimately automating many jobs. That involves automating warehousing, sales, deliveries and so on, and job losses could result. That was the view of Deloitte, which suggested that 60% of jobs could be lost. The jobs that would remain would require a range of skills such as operating advanced machinery, software and robotics. They are likely to be higher paid and involve higher skills.

The second model involves redesigning how business operates to boost productivity growth. Research from the Joseph Rowntree Foundation has shown that many capable employees in the retail sector are reluctant to move up the rungs of the management ladder, as that involves greater responsibilities without much of an increase in pay. Jobs need to be redesigned so that an individual performs a range of different tasks that straddle the staff-management boundary and pay is increased. In that way, talented individuals could be engaged in the management side, raising performance and productivity. Either of those models—or a hybrid of the two, whichever the Government chose to take forward—would require dedicated Government investment in skills training for employees, to enable them to navigate the changes.

Rachel Maclean Portrait Rachel Maclean (Redditch) (Con)
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I agree with a lot of the challenges that the hon. Lady is outlining. My son works in the retail sector, and he has recently had a promotion to management level. He is only 18, so I give full credit to Zara for encouraging his talents. Does she agree, however, that the Government’s approach in bringing in T-levels has played an important part in tackling those challenges and that they are working with industrial partners to bring those changes forward?

Rebecca Long Bailey Portrait Rebecca Long Bailey
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I thank the hon. Lady for her intervention. Please will she congratulate her son on his recent promotion? Some of the Government’s commitments are welcome, including the national retraining scheme and the T-levels that she has just mentioned, but sadly they are meaningless in the context of the cuts that we have faced over recent years. For example, £64 million was announced for the national retraining scheme, but £1.15 billion was cut from the adult skills budget between 2010 and 2015. I hope that the Secretary of State will put forward proposals today to increase investment in skills, because if we do not invest in skills, we will not be able to take our employees on the journey that they need to make.

Stephen Kerr Portrait Stephen Kerr (Stirling) (Con)
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The hon. Lady has been speaking for some time now, giving her analysis and talking about what the Government should do, but in her position as the shadow Secretary of State for Business, does she have any pearls of wisdom to give to retailers on what they should do to attract people into their retail outlets?

Rebecca Long Bailey Portrait Rebecca Long Bailey
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I thank the hon. Gentleman for his comments, and I do apologise for speaking for some time. If he listens, perhaps he will get some of those pearls of wisdom in due course. The point I am making is that the Government need to recognise that businesses need support. Businesses themselves need to innovate and to ensure that they drive productivity increases in-house, but the Government need to show dedication to providing the tools required to increase fertility in the business environment. Frankly, that is not happening at the moment.

An essential element in improving retail productivity is innovation, which is the best means of raising wages and boosting the competitiveness of British industry. Innovation is required by businesses themselves, as I have just pointed out to the hon. Gentleman, but the Government must commit more money to research and development spending. They referred in their White Paper to increasing that spending to 2.4% of GDP, which is welcome, but if they are really going to support low productivity sectors such as retail and ensure that we can compete on the world stage, they need to increase it to at least 3%, as other world leaders such as South Korea and Japan have done.

I also welcome the Government’s recent establishment of a Retail Sector Council, but I have heard very little information about it since its establishment. Will the Secretary of State update the House on how often the council has met so far and whether there have been any discussions with the Government about what role the Government can play in boosting innovation in the sector? Labour has pledged to establish a catapult centre in relation to retail, to lead on technological, managerial and employee innovation. This is important because the Fabian Society recently reported that increasing managerial innovation and sharing best practice in retail can drive productivity by improving quality, as well as sale and business growth, and I call on the Government to examine Labour’s catapult centre proposals.

Infrastructure investment is also a critical part of boosting productivity in the sector. We must recognise that the future of our high streets depends on quality infrastructure, transport links, parking amenities and high-speed broadband, as well as on the local anchor institutions that draw people in, such as entertainment and leisure facilities and libraries. The sums announced in the White Paper are sadly negligible, and the TUC has stated that public investment will be increased to just 2.9% of GDP, while the average invested by other leading industrial nations in the OECD is 3.5%. Again, I hope that the Secretary of State has some earth-shattering updates for me today, to restore our faith in what the Economic Justice Commission recently dubbed

“the most regionally unequal country in the whole of Europe”

in terms of investment in our regions.

This brings me to the subject of retail workers, who are vital to the success of the sector. They provide positive customer experiences, and a lack of staff can have an adverse impact on customer service levels. The impact of job losses in retail should therefore not be understated. They have a profound impact on families and communities right across Britain. Retail has traditionally provided entry-level, part-time and flexible jobs for millions across the UK, and it has often provided livelihoods for people who have had to leave declining industries in particular regions.

Anna McMorrin Portrait Anna McMorrin (Cardiff North) (Lab)
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One of my constituents who is directly affected by this has written to me. Her husband works in retail, and she is appalled by the contract changes being forced on people working in the sector, particularly in Sainsbury’s, where 9,000 long- standing and loyal staff will suffer a significant pay cut of up to £3,000 and see their paid breaks and premium pay scrapped.

Rebecca Long Bailey Portrait Rebecca Long Bailey
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My hon. Friend makes a vital point, and I shall come on to that shortly.

For some people, working in retail may be their only viable employment option. If a chain goes under and the local store closes or relocates out of the area, they will either have to travel further afield to find work or decide that the journey is simply not cost-effective and be forced to give up work altogether. According to a recent report by the Fabian Society, forecasts for the reduction in employment in the industry suggest that women, who make up the majority of the retail workforce, will sadly be the hardest hit. Workers in the retail sector are vulnerable, as my hon. Friend has just said. When costs need to be cut, workers are usually the first to face the squeeze. Only recently, Sainsbury’s announced sweeping changes to contracts for up to 130,000 staff in stores across the UK.

Mike Amesbury Portrait Mike Amesbury (Weaver Vale) (Lab)
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Does my hon. Friend agree that the likes of Lidl, which has its senior management at Manor Park in Runcorn, should allow access to the trade union USDAW, because a healthy workforce is a productive workforce?

Rebecca Long Bailey Portrait Rebecca Long Bailey
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My hon. Friend makes an important point about another key factor in improving productivity. This is about not just improving skill levels, but engaging with the workforce proactively and collaboratively. That is best done through trade union membership and allowing trade unions access to workplaces, so issues on the shop floor can be identified and dealt with quickly, increasing productivity overall.

Kate Green Portrait Kate Green
- Hansard - - - Excerpts

I am a proud USDAW member, and will my hon. Friend join me in commending its “Freedom From Fear” campaign, which seeks to ensure that shop workers are safe at work, travelling to work and leaving work? Too many of them still risk abuse and unpleasantness from customers in the workplace.

Rebecca Long Bailey Portrait Rebecca Long Bailey
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I thank my hon. Friend and support what she says.

Going back to Sainsbury’s, staff will no longer get paid breaks or higher rates of pay for working on a Sunday under the new terms. Premium rates for night-shift work will be restricted to between midnight and 5 am, and shop floor staff will no longer be able to earn bonuses. It is interesting, however, that the freeze on bonuses is allegedly not likely to impact senior managers or the CEO, who will still receive their bumper bonus packages. There are also worrying reports that staff may be forced to resign if they refuse to sign these new contracts.

Sainsbury’s is not alone in this trend towards fluctuating terms and conditions and insecurity. As USDAW recently reported, a number of clear trends within the sector have led to the workforce feeling increased pressure. Many retailers, seeking to maximise flexibility to deal with fluctuations in customer demand, have introduced flexible, short-hours contracts. As a result, two thirds of USDAW members are regularly working additional hours above those that they are contracted to work, yet they have no guarantee that those hours and the associated income will be available to them in the future. The Bakers, Food and Allied Workers Union reports similar trends, with McDonald’s workers recently striking in a dispute over zero-hours contracts and working conditions.

The Government’s recent response to the Taylor review included a right to request more stable hours, which I referred to when the Secretary of State made his statement on the review, but how does that actually differ from the current position? Without an obligation on the employer to accept, it is meaningless and I urge him to reconsider.

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - - - Excerpts

Coming from a family of shopkeepers and as a former co-chair of the all-party parliamentary group on retail, I have been listened very carefully, but the shadow Business Secretary has made hardly any mention of Amazon and the onslaught of online trading that has decimated footfall on the high street. The vast majority of her speech has been gibberish to people in retail, with no practical suggestions. I hope that there will be something in her conclusion.

Rebecca Long Bailey Portrait Rebecca Long Bailey
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With the hon. Gentleman’s knowledge of the sector, I am surprised that he says that, given that business rates are one of the critical issues affecting the high street. Retailers often tell me about the unfairness of businesses such as Amazon receiving skewed business rates valuations due to the size of their operations, so I have dealt with that point.

Vicky Ford Portrait Vicky Ford (Chelmsford) (Con)
- Hansard - - - Excerpts

I have listened carefully to the hon. Lady, who has accused British retailers of lacking innovation. However, the UK is the third largest e-commerce market in the world. Digital taxation needs to be done on a cross-border basis, so will she join me in congratulating our Chancellor on getting 100 countries across the world to look at implementing a digital tax to allow us to address the level playing field between online and offline?

--- Later in debate ---
Rebecca Long Bailey Portrait Rebecca Long Bailey
- Hansard - -

I have not in any way, shape or form suggested that any business lacks the capacity or drive to innovate—quite the contrary—but they do lack Government support to drive that innovation. As for making tax digital, I ask the hon. Lady to read some of the Library research. While the sentiment is credible, the implementation has been far from it, with numerous businesses reporting problems from start to finish, and that needs to be addressed urgently.

Rachael Maskell Portrait Rachael Maskell
- Hansard - - - Excerpts

Does my hon. Friend recognise that the retail sector suffers from offshore landlords charging exorbitant prices for property, forcing businesses off our high streets?

Rebecca Long Bailey Portrait Rebecca Long Bailey
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I referred earlier to the commercial retail property market, and the Government must recognise that they have to work collaboratively across the sector and with landlords to enable tenants to secure fair tenancies. In the current climate, many tenancies are unfair to retailers, forcing many of them over the edge. Offshore landlords are a significant issue that we have discussed at length in this Parliament.

That completes my whistle-stop tour of many of the issues the sector faces, and I hope that my comments have been helpful to the Business Secretary. He knows that retail is our largest industrial sector. It has the power not only to transform our economy, but to transform our communities, providing high streets and towns with the services and consumer choice that Britain deserves.

When I was little, my Uncle Ray was a butcher. He was proud of having his own business and the family were proud of him. However, he was not just proud of being an entrepreneur; he was proud of the services that he provided to his local community and to the people who came into his shop every single day. In all my life, I have never seen such profound change in the retail sector, and the alarm bells are ringing loud and clear. How many more Uncle Raymonds are there who want to start their own business but are frightened to do so in the current climate? How many more Uncle Raymonds are out there who are in business but are frightened of going bust due to the hostile environment they face? Once our high street is gone, it will be gone forever, and the basic lifeblood of an entrepreneurial nation from high street grocers and hairdressers all the way through to department stores will be in tatters. I urge the Business Secretary to act now before it is too late.

Nuclear Power

Rebecca Long Bailey Excerpts
Monday 4th June 2018

(5 years, 11 months ago)

Commons Chamber
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Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford and Eccles) (Lab)
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There is cross-party consensus that new nuclear will continue to play a vital role in the UK’s energy mix, and I am therefore pleased to hear that progress has been made, after some uncertainty, on the Wylfa nuclear plant. Given the well-documented failings of the Hinkley Point C deal, however, I am deeply concerned by the way in which the financing has been or will be negotiated—namely, the lack of transparency and parliamentary scrutiny thus far.

On 15 May, I wrote to the Secretary of State requesting information about the negotiations and I am yet to receive a response. Until the last few days, we have had to piece together snippets of information from the Japanese press, and titbits from energy and environmental groups. We have finally heard today that a deal will be negotiated with Hitachi, which media reports suggest will include a guaranteed strike price, loan guarantees and an equity stake in the project in exchange for direct Government investment.

I must say that this is a surprising shift from the Government’s ideological position against Government investment in new energy infrastructure, and I wonder whether the shift applies to other renewable technologies, for which support has been repeatedly cut by this Government. I suspect not. I must sound a note of caution. Without sufficient detail and transparency, the House is unable to determine the risks and benefits borne by consumers and taxpayers in the proposed deal.

Last year, the National Audit Office concluded on the Hinkley Point C deal that the Department had

“not sufficiently considered the costs and risks of its deal for consumers.”

The NAO made a series of recommendations, including mechanisms for reviewing value for money and the affordability of the deal; making it clear who is accountable for oversight and governance; ensuring that the cost and timing implications of alternatives are shown clearly; and developing a plan to realise the benefit across local economies and supply chains. Last year, I asked the Government to adopt those recommendations. So will the Secretary of State say whether he has done so and, if not, why not? However, if the Government have done so, will he publish all relevant documentation showing that each recommendation has been followed in relation to Wylfa or, indeed, confirm that they will be followed if they have not been processed yet?

Negotiations between the Government and Hitachi thus far appear to have been conducted behind closed doors. Will the Secretary of State say whether the House will be given time to scrutinise the proposed deal outline, or is this simply a done deal? If so, have any binding commitments been made or, for example, have any preliminary heads of terms or memorandums of understanding been issued? The NAO stated that

“making commitments to investors can limit flexibilities to react to a change in circumstances.”

The implications of that need to be understood and communicated clearly to decision makers. It is important to ensure that the cost and timing implications of alternative funding arrangements are shown clearly—again, that is advocated by the NAO. If such alternatives have been, or will be, examined, can the Secretary of State provide the House with details today?

I move on to safety issues. It has been widely reported in the press that Hitachi is seeking to “reduce or eliminate” its financial responsibility for accidents. Will the Secretary of State say whether that is true? If so, where will such liability lie and what safety impact assessments have or will be carried out from construction and operation through to decommissioning? Indeed, on the issue of decommissioning, will he explain who will bear that liability and how much the cost is likely to be?

Despite the good news for Wylfa, subject to the queries that I have outlined, it appears that further down the Welsh coast the news is not so good for renewables generation. Media speculation suggests an impending negative decision on the much-anticipated Swansea tidal lagoon project after years of planning and campaigning by Tidal Lagoon Power, the Welsh Government, environmental groups and MPs across the House. If that is true, it is outrageous. To assume that Swansea is somewhat redundant, given the plan for investment in Wylfa, is very short-sighted.

I understand that Tidal Lagoon Power has offered to negotiate further, but has not received a response from the Government. Under the plans, there would be a zero-carbon power plant producing energy for over 100,000 homes, creating thousands of jobs across Britain; turbines built in a wall in the sea that harness the power of the tides, so that we can turn the kettle on in the morning; world-leading infrastructure built in Britain using British steel to last more than a century; and the potential to export our expertise and products across the globe. An ambitious, decisive and forward-thinking Government would jump at a project like that, just as they have done with Wylfa. Well, perhaps not. Recently, someone joked to me that the desk of the Secretary of State was where good ideas went to die. I hope that that is not the case with the Swansea tidal lagoon, and I implore the Secretary of State one last time to stop messing about, and to sit down with the company and the Welsh Government to develop a deal urgently.

Greg Clark Portrait Greg Clark
- Hansard - - - Excerpts

I am disappointed that the hon. Lady did not continue in the spirit in which she opened her contribution. This is an important moment, and we are beginning a negotiation on a project that will supply energy to this country for the next 60 years, until towards the end of the century, which will create jobs and reduce our carbon emissions. She said that her party supported the proposal and that there was cross-party consensus—one could be forgiven for missing that in her tone—and it is important to establish that, because it is evident that any 60-year project will take place over the life of successive Governments. This country has given nuclear investors confidence over time that there is a strong commitment to such major infrastructure projects, so I hope that she will back the commitments that she and her party made in their manifesto last year to support new nuclear and recognise the considerable opportunities, as she put it, for nuclear power internationally and domestically.

The hon. Lady asked about the financing model. She urged me in a letter to reflect on the recommendations of the National Audit Office and the Public Accounts Committee to explore alternative financing models that can reduce the price of the electricity that is generated. That is exactly what I have set out—I have followed the recommendations of the NAO and the PAC. We are entering a negotiation—I think somewhere in her remarks there was a welcome for that—but the essence of doing so is that a deal has not been agreed. We need to explore that, and it is subject to the very tests that she set out and that the NAO and the PAC observed are required, including on value for money.

On safety, the hon. Lady should be reassured—there are many hon. Members who are familiar with the nuclear industry in this country—that the safety standards operated through our independent nuclear inspectorate are the highest in the world, and that the generic design assessment is the most exacting in the world. We always abide by the rulings and requirements of the independent regulators so that we can have full confidence in the safety of this important industry.

Finally, the hon. Lady mentioned other potential investments, including the proposal for renewable power in Swansea. She knows—we have had exchanges about it across the Dispatch Boxes—that I believe in a diversity of energy supply, but we need to make sure that value for money is offered for taxpayers and bill payers. A rigorous assessment is required and, as I have done today, I will update the House when the process is concluded.

Oral Answers to Questions

Rebecca Long Bailey Excerpts
Tuesday 1st May 2018

(6 years ago)

Commons Chamber
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Lord Harrington of Watford Portrait Richard Harrington
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I can assure the hon. Gentleman that the money is already spent. It is our intention to launch a request for proposals to secure a fund manager this summer. Further details will be included in the Department for Transport’s forthcoming zero-emissions road transport strategy.

Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford and Eccles) (Lab)
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Following figures showing that car registrations plunged in March by 15.7% compared with 2017, Jaguar Land Rover announced that 1,000 jobs would be cut at Solihull and that it was temporarily reducing production at Halewood. Sadly, reports suggest that the Solihull workers were told this news at a mass meeting that lasted only 10 minutes, with no opportunity to ask questions. We have heard some hints from Members today, but will the Minister tell us whether he has made any assessment of the causes and the potential knock-on effect on jobs in the supply chain? What steps is he taking to support workers and to reverse this worrying trend in the whole automotive sector?

Lord Harrington of Watford Portrait Richard Harrington
- Hansard - - - Excerpts

The hon. Lady will know that JLR has been clear that this restructuring is part of the cyclical nature of automobile production. It is very confident about this country; it is employing a lot of apprentices and skilled people and training up its workforce to take part in the next phase of automobile expansion.

Rebecca Long Bailey Portrait Rebecca Long Bailey
- Hansard - -

I am not sure that that has actually answered my question. Automotive is not the only sector in crisis. This year alone in retail, Toys R Us has collapsed, Maplin has gone into administration, New Look has announced job losses, Carpetright is planning a company voluntary arrangement and retail profit warnings across the UK have hit a seven-year high. The chief executive officer of The Entertainer has stated:

“The Government just haven’t got it. They need to take some responsibility for the high street’s decline.”

Can the Minister explain why Government action in this sector—from woeful action on business rates and income stagnation and under-investment in retail innovation—has been so lacklustre, and what urgent action he is taking to help a sector that is currently in crisis?

Lord Harrington of Watford Portrait Richard Harrington
- Hansard - - - Excerpts

The hon. Lady will be aware that the same thing is happening in the retail sector all over the world. I would be very pleased—on another occasion—to find out whether there are any exceptions. The Government have taken action. My hon. Friend the Under-Secretary of State for Business, Energy and Industrial Strategy—who is the Minister for retail, among many other things—launched the Retail Sector Council recently. A lot of thought is going into this, to change retail into a modern, leisure-driven shopping choice.

Sainsbury and Asda Merger

Rebecca Long Bailey Excerpts
Monday 30th April 2018

(6 years ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford and Eccles) (Lab)
- Hansard - -

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the proposed merger of Sainsbury’s and Asda.

Andrew Griffiths Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Griffiths)
- Hansard - - - Excerpts

On 30 April, J Sainsbury plc and Walmart Inc. announced that they had agreed terms in relation to a proposed combination of Sainsbury’s and Asda Group Ltd, a wholly owned subsidiary of Walmart, to create an enlarged business. There are no planned Sainsbury’s or Asda store closures as a result of the merger. The proposed deal is conditional on clearance by the Competition and Markets Authority.

The Competitions and Markets Authority will hold pre-notification discussions with the parties and, when it has sufficient information, will commence its phase 1 investigation. Usually, a phase 1 investigation will last up to 40 working days before the authority will decide whether to clear the merger or refer it on to a detailed phase 2 investigation. I understand that the parties have requested to fast-track straight to phase 2. As part of its competition inquiry, the CMA can look at the buying power of a merged company in relation to its suppliers and the impact that the merger would have on them. Decisions about mergers are taken independently of ministerial control and are subject to legal challenge. Under the Enterprise Act 2002, Ministers have the power to intervene in mergers only on public interest grounds covering national security, media plurality and financial stability.

[Official Report, 2 May 2018, Vol. 640, c. 4MC.]Today, the Secretary of State and I have spoken to Sainsbury’s chief executive officer Mike Coupe, and Asda CEO Sean Clarke, so that we can better understand their plans. Additionally, I have today spoken to the Union of Shop, Distributive and Allied Workers and Unite unions, and I will speak to the GMB union immediately after leaving here. When I spoke to Len McCluskey this morning, I made it clear that I expect Sainsbury’s and Asda to conduct proper and thorough engagement with the unions. This afternoon, I have spoken to the Groceries Code Adjudicator, Christine Tacon, to reiterate the importance of ensuring that suppliers, particularly small and medium-sized enterprises, are treated fairly.

The UK’s merger regime is designed to offer clarity for businesses and to build investor confidence. Mergers are an important part of a dynamic economy, and the Government appreciate that they can bring real benefits to consumers and the economy as a whole by attracting inward investment. We will continue to monitor the situation closely.

Rebecca Long Bailey Portrait Rebecca Long Bailey
- Hansard - -

The landscape for retailers has become increasingly difficult over recent years, and I am sure that the Minister shares my concerns regarding this deal, given its potential to squeeze competition in the market and the risks that it poses to workers, suppliers and consumers. He confirmed that there will be no store closures, but will he also confirm that there will be no job losses, no changes to pay, terms and conditions, and no closure of any sites within each company’s estates portfolio—distribution sites and offices, for example? If so, for how long will that promise be effective, and will he seek legally binding assurances?

It is clear that a duopoly of the big supermarkets—Tesco, and Asda and Sainsbury’s—will now emerge providing never-before-seen bargaining power. Indeed, the statement this morning included a promise to bring prices down for consumers, but it is feared that that will be at the expense of suppliers, farmers and manufacturers whose prices and terms will be driven down, pushing many to the edge of collapse. Can the Minister confirm that that will not be the case? In addition, does he agree that control of 60% of the market by the duopoly may pose a risk to consumer choice and provide less incentive to entice with good offers? If so, what assurances has he received in that regard? I am sure that he agrees that an urgent CMA investigation is imperative, but can he confirm that the CMA will prevent the integration of the companies during investigation, as it is entitled to do?

The Minister will agree that many of the risks associated with this deal do not bear directly on the CMA’s remit of testing whether there would be a substantial lessening of competition. As he said, he has no power to intervene directly in the merger as it does not meet the public interest tests of national security, media plurality and financial stability. Given that the deal could radically alter the whole grocery sector—from farm and factory to supermarket shelf—will he finally use his powers to broaden the scope of the public interest test to include deals of such economic and national significance, as he has been repeatedly asked to do?

Andrew Griffiths Portrait Andrew Griffiths
- Hansard - - - Excerpts

I thank the hon. Lady for her important points. I share many of the concerns that she voices, but she says that the CMA’s remit does not extend to the substantial lessening of competition—[Interruption.] That is exactly what the CMA does. Its role is to examine competition matters—[Interruption.] If I misheard the hon. Lady, I apologise.

The CMA’s role is to consider the impact of this merger on not just competition in the marketplace, but suppliers. The hon. Lady rightly raised the impact that the merger could have on farmers and suppliers, and that was why the Secretary of State and I reiterated to Asda and Sainsbury’s when we spoke to them this morning the importance of their engaging with not just the CMA, but bodies such as the National Farmers Union and other unions to ensure that this is a proper process that we understand. The hon. Lady will know that section 172 of the Companies Act 2006 puts a duty on directors of the new company to have regard to the impact that their decisions would have on their suppliers, and we will be monitoring that very closely in the months to come.

We must also recognise, as the hon. Lady said at the very beginning of her contribution, that the retail sector is in a huge state of flux. We must all understand that the way in which consumers purchase these days is changing dramatically. There has been a 9% increase in sales through online vehicles in the last 12 months alone. That, by necessity, means that the retail sector has to change and adapt. One of the things that the merger will offer is reduced costs for the consumer, which I hope she will welcome. We all want to protect consumers and make sure they are getting great value for money, and that is one of the things that the merger promises. I can assure her, from the discussions I have had with the CMA, the Groceries Code Adjudicator and both parties, that ensuring the supply chain is properly protected is one of the priorities and something that I guarantee we will keep a close eye on.

Domestic Gas and Electricity (Tariff Cap) Bill

Rebecca Long Bailey Excerpts
Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford and Eccles) (Lab)
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You will be pleased to hear, Mr Deputy Speaker, that I will be brief.

I thank all Members who have contributed to proceedings on the Bill and all members of the Public Bill Committee, who worked diligently and in such a consensual way. I particularly congratulate my hon. Friend the Member for Southampton, Test (Dr Whitehead), who over the past weeks and months has spent many hours working on not only this Bill, but a great many pieces of legislation. I thank the Public Bill Office and the Clerks for their tremendous support, as always.

Somewhat unusually, I am delighted that we are here to send a Bill to the other place in a speedy fashion. The Opposition will support the Bill’s Third Reading. However, the Minister and the Secretary of State, diligent as they are, may share some of my exasperation that wider Government inaction—shall we say?—and delay at the beginning of this Parliament has meant that millions of people are still suffering with big energy bills as the winter comes to a close.

The 2017 Conservative manifesto committed to implementing an energy price cap that would protect 17 million households. On 9 May 2017, the Prime Minister herself wrote of the cap in The Sun:

“I expect it to save families on poor value tariffs as much as £100.”

Yet the policy was thrown into doubt when the Queen’s Speech said merely that the Government would introduce

“measures to help tackle unfair practices in the energy market to help reduce energy bills.”

That was followed by numerous letters between Ofgem and the Secretary of State in which it was made clear that legislation was required, but the Government still did not introduce a draft Bill.

It was not until mid-October that we saw evidence of the Government’s commitment coming to fruition, but even then there were reports that some in the Cabinet had no intention of seeing legislation on the statute book. Thankfully, pressure from the Opposition, and indeed from Government Members, has ensured that the Bill has made progress. A price cap will therefore eventually be in place, but the fact sadly remains that in nine days’ time it will have been exactly a year since the Prime Minister wrote her commitment to energy customers in The Sun.

I am happy that we are here today—I commend the Minister and the Secretary of State—but it is disappointing to say the least that a year has passed and the cap is still some way from implementation. As a result, energy customers have not been protected during a winter in which we have seen some of the coldest weather on record. Prices have continued to rise, and in the past couple of weeks, British Gas has announced a 5.5% price rise, while EDF has announced a 2.7% rise.

My hon. Friend the Member for Southampton, Test and other hon. Members attempted to improve this Bill and help the Government to ensure that their own commitments were met. Sadly, although the Minister was very amiable, the Government did not accept many of the amendments.

Caroline Flint Portrait Caroline Flint
- Hansard - - - Excerpts

May I add another couple of dates to help Members to understand how long it has taken to get us here today? I think that, as I get older, collective memory becomes an even more important asset. It was in October 2011 when the then Prime Minister, David Cameron, held a summit to tackle rising energy prices, and it was in October last year—six years later—when we finally heard talk of a Bill.

Rebecca Long Bailey Portrait Rebecca Long Bailey
- Hansard - -

My right hon. Friend is correct. I share her exasperation and that of many Members on both sides of the House about how long it has taken to tackle this very serious issue.

Briefly, let me turn to some of the amendments that were discussed—Members will be pleased to hear that I will not go through all of them. Amendment 6 would have required Ofgem to ensure that the tariff cap conditions resulted in customers on standard variable and default rates having their annual expenditure reduced by no less than £100, as per the Prime Minister’s election promise. If the Government had accepted that amendment, it would have given energy customers confidence that the Government were serious about their commitment significantly to reduce the bills of millions of customers. However, the Minister said that she felt that the Opposition had been mischievous in trying to place a Government policy within a piece of Government legislation. I do not think that I need to say any more about that—we will not try to do so again.

After our discussions in Committee, we redrafted an amendment that we had previously tabled. Rather than proposing a hard stop date, amendment 5 would have simply ensured that the cap would be in place within five months of Royal Assent. Ofgem has stated that it will take five months from Royal Assent to implement the cap. It indicated that placing such a deadline in the Bill would not cause it a problem or hinder its process so, again, it was sad that our amendment was not accepted.

Similarly, new clause 1 would have developed requirements for a differential between a supplier’s cheapest and most expensive rates after the termination of the cap. That would have offered a degree of ongoing protection for consumers while wider market reform could take place.

I wish to pick the Secretary of State up on a statement that he made on Second Reading. He said:

“Britain has long been a pioneer in not only the privatisation and liberalisation of industries but the regulation of these utility industries, too.”—[Official Report, 6 March 2018; Vol. 637, c. 206.]

I am afraid that I have to take issue with him. Although I am pleased that the Bill is completing its final stages today, the necessity of the Bill in itself demonstrates the Government’s abject failure adequately to ensure that our UK utilities have been regulated. In the past year alone, £120 has been paid by every household in the UK for dividends to energy company shareholders. As I have said before, the six distribution network operators had an average profit margin after tax of 32% a year between 2010 and 2015, which equates to £10 billion over six years. During that time, shareholders received £5.1 billion in dividends, or half the net profit generated. In the past 10 years, water companies paid 1,000 times more in dividends than in tax. Three of them paid more in dividends than they made in profit in that period, which means that they were borrowing on the back of household bills to pay their shareholders. Radical reform of our energy market is needed—it is not optional, but necessary.

We have yet to see any response to Dieter Helm’s consultation on the cost of energy, which included many proposals for reform. Perhaps the Secretary of State will confirm when a response to that consultation will be published. It is urgent that we have such a response if effective competition is to be achieved by the end of 2020, or indeed by 2023, when the energy price cap will definitely be lifted.

I support the Bill and I welcome this Government action, but, as I have said, the cap is simply a sticking plaster. I hope that the Government will now act speedily and listen to the comments of Members about the wider reforms that our energy market requires.

Points of Order

Rebecca Long Bailey Excerpts
Tuesday 24th April 2018

(6 years ago)

Commons Chamber
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John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

I am saving up the hon. Member for Birmingham, Erdington (Jack Dromey). It would be a pity to squander him at too early a stage of our proceedings.

Rebecca Long Bailey Portrait Rebecca Long Bailey
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On a point of order, Mr Speaker. The Secretary of State for Business, Energy and Industrial Strategy suggested in response to my earlier comments that I have never said what further undertakings he should have sought from Melrose. I know he cherishes our exchanges—there are many of them, so I forgive him for forgetting one of them—but on 27 March, in response to an update from him, I questioned the absence of numerous undertakings and was very specific about what they were. I would simply like to correct the record, and I accept his apology in advance.

John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

I am most grateful to the hon. Lady for her attempted point of order, which I would prefer to classify as a point of continued debate. I am sure it will be of intense interest across the House, and copies of this particular extract of today’s proceedings will probably be lodged in the Library. More particularly, I rather imagine that she will wish speedily to communicate what she has just said to many, many thousands of people across Salford and Eccles.