UK Infrastructure Bank Bill [Lords]

Richard Fuller Excerpts

Consideration of Lords message
Wednesday 22nd March 2023 Commons Chamber

[Stewart Hosie (Dundee East) (SNP)]

I just have a small point. The SNP supports this Bill and the intention to create the UK Infrastructure Bank, with its objective to help tackle climate change. However, it is worth putting on record very briefly that both the original Government amendment 3 and amendment 3B in lieu from the other place—while the latter does keep “nature-based solutions” in the wording of the Bill—seek to remove

“structures underpinning the circular economy”

from the infrastructure that the Bill is designed to support in its objectives of tackling climate change and meeting the target for 2050.

I am sure people interested in such matters will look rather askance at that. How on earth can we have a UK Infrastructure Bank Bill, with highly laudable objectives to tackle climate change and meet the Government’s own targets, only then to have both the Government and the other place actively remove investment in infra-structure to support the circular economy—which, for goodness sake, must be part of the solution—from the Bill? We are not going to oppose the amendment, because the Lords amendment is marginally better than the original Government amendment, but it is worth putting on record that the removal of the words

“structures underpinning the circular economy”

from the Bill strikes me as somewhat perverse.

[Richard Fuller (North East Bedfordshire) (Con)]

I find myself in the unusual and extremely uncomfortable position of agreeing with what the SNP spokesperson has just said. It is a condition that I hope will be quickly removed so that I can assert my usual sound Conservative principles.

There is an important point here, which I know the Minister is aware of, and which is not specific to this Bill. It seems a little odd, if we are looking at the next 10 or 20 years of our investment in infrastructure under the terms of the new Infrastructure Bank, to omit explicitly one of the foundational aspects of infrastructure from the Bill. I know my hon. Friend the Minister will have already reviewed that and he will say, I think correctly, that there is nothing in this Bill to stop support for investment in the circular economy infrastructure. However, I think it is important to have voices at this stage of the debate who can say that clearly, so that those who will now take forward the Infrastructure Bank know that, even if it is not in the Bill, the importance of creating the foundation of the circular economy is explicitly one of the things we anticipate and hope that the bank will do.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

On behalf of the Opposition, I would like to say that we support this amendment. As other speakers have said, it improves on the text of the Bill, so we are happy to support it.

Oral Answers to Questions

Richard Fuller Excerpts

Tuesday 21st March 2023 Commons Chamber

[James Cartlidge]

To give just one example of why we should be confident, last year 40% of our electricity came from renewables. The figure in the United States was 20%. We have a very strong record, but we are going to keep building on it. That is why we announced the £20 billion for carbon capture and storage and why we announced Great British Nuclear, because we need that baseload power to go alongside renewables and give us energy security.

[Richard Fuller (North East Bedfordshire) (Con)]

The truth is that it is under this Conservative Government that the greatest strides have been accomplished in harnessing the British economy to achieve net zero, with the leadership of COP26, the establishment of the Glasgow Financial Alliance for Net Zero, and the introduction of corporate reporting on carbon emissions for our major corporations. Will my hon. Friend work with British business to continue that progress and ensure that we can all move forward successfully to achieve net zero?

Silicon Valley Bank

Richard Fuller Excerpts

Monday 13th March 2023 Commons Chamber

[Andrew Griffith]

That is, with respect, the whole point: it was a separate subsidiary. It did have a separate banking licence here and it did participate in the regulators’ stress tests here. There is risk in any financial system. What this House and our diligent regulators are focused on is achieving the right balance of risk. From time to time there will—as there was with the failure of the bank in the US—be factors that lead to challenges in any risk-based system, notwithstanding the good work by the regulators and the stress tests having been applied.

[Richard Fuller (North East Bedfordshire) (Con)]

I draw the attention of the House to my historical entries in the Register of Members’ Financial Interests as an adviser to a technology venture fund and as a board member of a number of portfolio companies, many of which will have had financing arrangements with Silicon Valley Bank, HSBC and other financial institutions.

On behalf of the technology businesses in Bedfordshire, I add my thanks to the Minister and his team for their swift response over the weekend. He will be aware, however, of general concerns about global liquidity for the technology sector. What is his assessment of how the SVB experience at home and abroad may exacerbate those and test the resilience of the UK tech sector? Although HSBC is a great bank—indeed, I am a customer of HSBC—Silicon Valley Bank succeeded over many years precisely because it was so closely attenuated to the needs of early stage and growth stage businesses. Will my hon. Friend consider what steps he can take to encourage the emergence of new challenger banks to repeat the successes and avoid the failures of SVB in the UK?

[Andrew Griffith]

As my hon. Friend knows, the Government are seeking to support challenger banks to make sure we have a vibrant and competitive sector. That includes looking at issues such as the level of MREL—minimum requirement for own funds and eligible liabilities—and making sure that we have proportionate banking regulation that is relevant to the risk involved. He makes important points about the culture and capabilities of SVB UK, which is why it was so important that we had to very swiftly find it a home. I have spoken today to the chief executive of HSBC, as well as to the former chief executive of SVB UK. They are both enormously excited about the future. They see this as a platform for mutual growth, taking our brilliant life sciences and technology businesses international and to a new scale. The Government will not rest until we have mobilised capital to turn us into that science superpower.

Oral Answers to Questions

Richard Fuller Excerpts

Tuesday 7th February 2023 Commons Chamber

[Victoria Atkins]

On the point about the deaths that the hon. Lady understandably raises, we have made referrals to the Independent Office for Police Conduct in relation to those 10 events. The first referral was in March 2019. In the eight concluded investigations, no evidence has been found of misconduct by any HMRC officer, but we are very sensitive to the pressures that people are under, which is precisely why we have the extra support teams in place: teams of trained advisers who can, where appropriate, support taxpayers towards voluntary and community organisations that can help. Of course, people can also ask for help such as time to pay.

[Richard Fuller (North East Bedfordshire) (Con)]

Whatever the hopes were on the loan charge scheme’s introduction, the process has now gone on for a considerable time, raising questions about its efficacy and drawing HMRC into areas of moral hazard. Will my hon. Friend look at ways in which this HMRC scheme can be drawn to a conclusion?

[Victoria Atkins]

May I acknowledge my hon. Friend’s work as Economic Secretary and thank him for it? The difficulty is that a large sum of money is still outstanding from these disputes. We have had an independent review of the matter, through which we have been able to reduce the number of people affected, but the issue of outstanding tax remains. I encourage anyone affected by these historic issues to please talk to HMRC so that we can find a resolution for both sides.

Digital Pound

Richard Fuller Excerpts

Tuesday 7th February 2023 Commons Chamber

[Andrew Griffith]

The right hon. Gentleman runs the risk, if I may say so, of confusing a particular attribute of what is a very large sector. This is not a cryptoasset; the digital pound would not have those speculative attributes. The fact that £10 in digital pounds would be fully exchangeable for £10 in His Majesty’s finest banknotes would prevent that divergence—if it did not, that would present the right hon. Gentleman with a profitable opportunity that he could use to supplement his other activities. He raises other questions, which are rightly the subject of the consultation. I extend the invitation to all parts of the United Kingdom, and we look forward to his constituents and compatriots being able to contribute.

[Richard Fuller (North East Bedfordshire) (Con)]

If I was the Minister, I do not think I would not be quite as confident in my response to the SNP Opposition spokesman: that a digital pound will not affect the pound in our pocket. However, I broadly welcome the consultation, and I am very pleased that this Minister will be overseeing it. He will be aware that during covid we went through a period of extreme authoritarianism in this country. He will also be aware of some of the risks from central bank digital currencies to individual financial freedoms—he enunciated some of them in his statement. At the end of the consultation, will the Minister therefore also look to draft a financial liberty charter that this House can vote on, to protect the freedoms that we experience with currencies today?

[Andrew Griffith]

My hon. Friend and, indeed, predecessor highlights one of the potential concerns: one is either instinctively too early or too late in bringing matters to this House. Although this is a long-term project—the consultation makes it clear that a digital pound would not be introduced before the second half of this decade—it is right that we start conversations on precisely the important matters that influence the liberty of every one of us at this moment in time. So while I will eschew his choice of words, I assure him that liberty remains paramount, which is one reason why it is very clear that any digital pound should not replace, but should sit aside, the anonymity that is currently offered by physical cash.

UK Infrastructure Bank Bill [Lords]

Richard Fuller Excerpts

Report stage
Wednesday 1st February 2023 Commons Chamber

[Richard Foord]

I rise to speak to new clause 1 and amendments 3 and 4.

I welcome the UK Infrastructure Bank Bill. We previously had a Green Investment Bank, founded by the Liberal Democrats in government. It was short-sighted for the Government to sell it off, especially as it made £144 million in profit for its Australian owners last year. Nevertheless, the Liberal Democrats are glad to see steps finally being taken to put the replacement UK Infrastructure Bank on a statutory footing.

Liberal Democrat new clause 1, in the name of my hon. Friend the Member for Richmond Park (Sarah Olney), seeks to ensure that this new UK Infrastructure Bank will remain in operation until the Government’s net zero and environmental commitments have been met.

I hope to see this new bank change investment in green infrastructure for the better, and this brings me to the two amendments—amendments 3 and 4—tabled in my name and those of Liberal Democrat colleagues. They seek to ensure that water companies set out costed, time-limited plans to deal with discharges before they can get funding through the bank. This is important because communities across the UK are currently being impacted by the actions of some negligent and wayward water companies. For years, we have seen these firms failing to invest in our vital infrastructure, but instead prioritising shareholder payouts and bumper bonuses for chief executive officers. It is shocking that this practice has been allowed to continue, and that the Government have resisted several attempts by the Liberal Democrats to clamp down on these sewage spills.

South West Water, which covers my patch in Devon, was awarded a one-star rating by the Environment Agency after having been found to have discharged sewage into rivers and lakes and on to our beaches over 42,000 times. This represents more than 350,000 hours of dumping, including at our prestigious blue flag beaches. Three of the 10 most affected beaches are in Devon. And what was the reaction at South West Water? It gave the chief executive a bonus of more than £1 million.

[Richard Fuller (North East Bedfordshire) (Con)]

We on the Government Benches are aware of some of the comments—if I may say so, the somewhat misleading comments—in Liberal Democrat propaganda about this issue. The hon. Gentleman is obviously familiar with the situation at South West Water. Could he tell me what the cost is to South West Water of eliminating sewage overflow, and what are the implications for water bills for residents in the south-west, because that is what the literature from his party has been saying needs to be done?

[Richard Foord]

The amendment that we are considering is about loans from the UK Infrastructure Bank. Whatever figure is required, the bank should not be permitted to release funds for the purpose of improving our sewerage system until there are plans by water companies for the system’s complete restoration.

--- Later in debate ---

I urge colleagues from all parties to back the amendments and show that we are serious about ending the sewage scandal once and for all.

[Richard Fuller]

I shall go through the amendments thoroughly and therefore I shall not detain the House long.

New clause 1 on the future of the UK Infrastructure Bank would have the effect of not permitting a sale of the bank until the duty set out in the Climate Change Act 2008 and the targets of the net zero commitment by 2050 had been met. That puts significant strictures on the maintenance of one bank and its objectives. I think the hon. Member for Tiverton and Honiton (Richard Foord) probably acknowledges that. He wants us to reflect on the sale of the green bank that was set up under the coalition Government. He talked about the profits that it made last year—about £180 million, perhaps a little less. However, I hope that he recognises a couple of things.

First, when the sale was made, the taxpayer benefited to the tune of £2.3 billion. That included a surplus of £186 million on taxpayer-invested funds and a commitment from the successful acquirer, Macquarie bank, to invest a further £3 billion. In the round, I do not think that was a bad transaction to make, because it enabled the attraction of more third-party capital—private capital—to try to achieve some of the objectives of that green bank under its new owners, and indeed that has taken place. Part of the balance with this Infrastructure Bank is: how are we going to evaluate its abilities and success in attracting third-party capital? If the hon. Member for Tiverton and Honiton reflects, he will see that his broad point in new clause 1 is a fair one, but I hope that he will not press it to a vote, because there are strong arguments on the other side and I would not support the points that he would be trying to make.

Again, I can understand some of the import of Labour’s new clause 2 and amendment 5. Labour is saying, “Here is an opportunity, with a major institution, with which we are going to look at and try to expand the infrastructure of the country, to make sure it has a full focus on the round of public interest in the things it is doing in our name.” That is a good intention but, as the hon. Member for Erith and Thamesmead (Abena Oppong-Asare) knows—we have talked about this in Committee—there are trade-offs to be made within those sets of objectives. As we add objectives to our institutions, those trade-offs make it more obscure to parliamentarians and to the public what the intention of the bank will be.

The objectives that the Government have set out in the Bill are already clear. They have the benefit of clarity, as we know what they are. They also cover a wide range of sectors and intentions, but with the underlying core objective of helping us to meet our green net zero and climate change objectives.

So if the Opposition wish us to support their amendments, where do they see the trade-offs being made between achieving those objectives and having the duties to reduce economic inequalities between regions, to improve productivity, pay, jobs and living standards, and to support supply chain resilience? Very few of us would disagree with some of those objectives—indeed, the Government are making great strides on some of them with their levelling-up initiatives—but we have to accept that as we give directions to some of these institutions with a broad range of objectives, we are, as democrats, losing some control over how public money can be directed; we are giving more discretion to the chief executives of those organisations to do as they see fit and not perhaps to do as we were laying down in statute. I encourage the Opposition to think again, and to consider that perhaps having the clarity and precision of objectives set out in the Bill is precisely what will enable this and future Parliaments to exercise control over the Infrastructure Bank.

The hon. Member for Tiverton and Honiton, who is speaking for all the Liberal Democrats today, as he has graced us with his presence in a number of the debates, talked a little about the water companies again. I hope that he will have been listening today and will be reflecting back to his party’s leadership that some of the publicity the Liberal Democrats have put out has been substantially misleading about the intentions and actions of this Government. Obviously, parties make political statements all the time, this way and that. However, particularly as he has now followed up with his proposal for how water company discharge can be managed, I hope he will see that it is a serious issue and therefore we should treat it seriously.

Amendment 4 seeks to provide that the support the bank can give can happen only after the water companies have produced a “costed, time limited plan”. I think the water companies would say, “We have already done that.” They have a plan, but not one that can be implemented just like that, in the flash of an eye—I mix my metaphors there. I am not sure that the amendment will have the intention that the hon. Member for Tiverton and Honiton wishes it to have, given what the water companies are already doing and what the Government are already doing with the monitoring and the objectives being set to reduce sewage discharge.

I will step over what the SNP spokesperson, the right hon. Member for Dundee East (Stewart Hosie), put forward, because I am sure he will be able to elucidate that point clearly—I believe we have heard it here a number of times, although we are never bored by the repetition. Finally, I thank the Minister for listening to the points that were made in Committee and coming forward with the Government’s amendment.

Finally, I thank the Minister for listening to the points that were made in Committee and coming forward with the Government’s amendment. I can see that the Opposition have not put down a further amendment on that matter, which is a sign that he has got that judgment call right.

[Stewart Hosie (Dundee East) (SNP)]

I will speak to amendment 2 in my name, but before I address that fully, I will say a little about the other Opposition amendments and new clauses.

New clause 1 seeks to stop the bank being sold prior to net zero targets being met, which is sensible in principle, given the fate of the old green investment bank, as I described on Second Reading. New clause 2 seeks a report on the geographical spread of investments, which, again, is sensible given the Government’s recent track record on allocating money from the levelling-up fund. It still strikes me as rather absurd that the Prime Minister’s wealthy Richmond constituency should have been allocated £90 million, while the entire city of Glasgow received nothing in the second round of funding. I think we would all want to ensure that the UK Infrastructure Bank was far more equitable in its disbursements.

Amendment 5 seeks to reduce inequality and improve productivity. Amendments 3 and 4 seek to ensure that investment in water supply quality is permitted, but with conditions on the private companies receiving it. Each of these amendments and new clauses have merit, and we will be happy to support any if they are pressed to a Division.

Government amendment 1 seeks to reduce the gap between reporting from a maximum of seven to a maximum of five years. That is progress of a sort, but five years is still too long. I would be looking for a commitment from the Dispatch Box that the Government anticipate the review and reporting frequency to be within the proposed five-year maximum.

Let me briefly reprise what I said about my own amendment on Second Reading, when I gave the UK Infrastructure Bank and the Bill a broad welcome. Taking it at face value, there was nothing to criticise in its objectives of helping to tackle climate change and supporting the efforts to meet the UK Government’s 2050 target. Nor was there anything to criticise in the objective to support regional or local economic growth.

What I pointed out, though, is that—the Minister on Second Reading alluded to this in his speech—the delivery of support to facilitate local and regional growth in Scotland is provided by the Scottish Government, local government and other agencies, and that the green targets in Scotland, such as the earlier net zero target, are also set independently. It is therefore important that the UK Infrastructure Bank actually supports the devolved Governments’ objectives and does not, even inadvertently, end up working against them. That remains important because we have our own infrastructure investment plan, our own global capital investment plan and our own national strategy for economic transformation that provides the framework for the Scottish Government’s policy priorities.

In giving the Bill a broad welcome, I also made the point that while there is clearly an overlap between the strategic objectives of the UK Infrastructure Bank and the Scottish National Investment Bank—the wording of the aims of both the UKIB and the Scottish National Investment Bank are broadly similar—it is vital to ensure that both banks meet their goals and deliver the maximum impact for the people of Scotland. In line with the objectives set in the Bill, it is essential that the two banks are able to work together to identify and support appropriate infrastructure projects in Scotland. It is also vital that Scottish interests are appropriately represented and that there is an awareness of the Scottish economic context and the Scottish Government’s policy goals.

To ensure that there is alignment between both banks’ aims, I have argued that there should be an administrative mechanism, such as a memorandum of understanding, between the UKIB and the Scottish National Investment Bank to ensure that policy alignment is maintained. I fear that unless we have a firm mechanism, the UKIB’s aims might also be undermined, and there will ultimately be a risk that it will not deliver fully on its objectives. However, the Bill merely suggests in line 9 of clause 2(7) that the Treasury must only

“consult the appropriate national authority before making provision in regulations…that would be within the legislative competence of”

one of the devolved Administrations.

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[Abena Oppong-Asare (Erith and Thamesmead) (Lab)]

A lost decade of broken Tory promises has left much of the UK with second-rate infrastructure, which is why we support the establishment and the strengthening of the UK Infrastructure Bank and will not be opposing the Bill. The bank is much needed. It will invest in projects that support our net zero targets and contribute to local and regional economic growth. However, we will go further than the Government and harness the full potential of the bank to provide good jobs and opportunities across the country. I will speak to our amendments a little later.

I wish to start by saying how much I welcome the Government’s U-turn in relation to their amendment 1. I see Ministers on the Front Bench who were with us when the Bill was debated in Committee. I am sure that they notice how similar their amendment is to the one that Labour tabled at that stage. Indeed, it is identical to our amendment—an amendment that they voted against. As Labour has repeatedly emphasised, reviews of the bank’s performance will be essential to ensuring that it meets its objectives to invest in the industries of the future. It was shocking that the Government wanted an initial review in 10 years with subsequent reviews every five years. The bank needs momentum and drive behind it, and I am glad to see that the Government have now realised the error of their thinking and committed to reviews of the bank every five years.

[Richard Fuller]

I commend the hon. Lady for holding the Government to account on this particular issue of the review period. This is where we are setting the bank free to go on its mission. As she and I agree—I think we agree—the initial few years are really very important. I notice that the Minister has restricted to five years subsequent assessments, as both the hon. Lady and I thought would be wise, but there is still that initial seven years. She did not table an amendment on that, so I wondered what the Opposition’s thinking was on that initial period?

[Abena Oppong-Asare]

I am grateful to the hon. Gentleman for his comments. He might remember that we tabled amendments in Committee and again on Report on that issue, but because the Government announced a U-turn, we decided to withdraw our amendment.

Yesterday’s dreadful IMF forecast makes it very clear that Britain has so much potential but that the Conservative Government are holding us back. The UK is the only G7 country forecast to see negative economic growth. Let us look at the Government’s record on infrastructure: a green homes scheme closed just six months after its introduction, with a £1 billion cut from its budget; an energy system that sees fossil fuel companies making record profits while hard-working people’s bills soar; and just a fortnight ago, a crucial gigafactory, Britishvolt, went into administration, leaving the future of the British electric vehicle market in jeopardy. According to the Government, the purpose of the UK Infrastructure Bank is to provide access to money, particularly where there is an undersupply of private financing. Britishvolt, a UK battery start-up, was expected to support new jobs and green technology with a factory in Blyth. Now it is being sold by administrators, with the Government seemingly abandoning their promises of levelling up and supporting a green economy.

Just this week, the British electric van start-up “Arrival” announced that it is cutting 800 jobs, as it moves for extra funding and green subsidies in the US. Hon. Members will not be surprised to hear that Labour has no faith in the Government harnessing the potential of the UK Infrastructure Bank to invest in the high-skilled jobs of the future. A Labour Government will use our green prosperity fund to invest in wind, solar and nuclear energy; insulate 19 million homes; grow our economy; and get Britain winning the race to net zero. We have tabled new clause 2 and amendment 5 to ensure that the UK Infrastructure Bank can play its role in this mission. New clause 2 would require the bank to publish an annual report setting out the geographical spread and the ownership of businesses and bodies that it invests in. It would also require the bank to publish a good jobs plan for every project it invests in, to ensure that the project will improve productivity, pay, jobs and living standards.

[Abena Oppong-Asare]

My hon. Friend makes strong points about what the Government should be doing, and I hope the Minister takes them on board. We have all seen the allegations of favouritism that have beset the Government’s levelling-up funding, with nothing in the Bill to guarantee that the bank will distribute its funds to the areas that need them the most. Our new clause would ensure scrutiny and transparency over bank investments. Given the Prime Minister’s now famous boast—I quote it in case Members have forgotten—about reversing Treasury formulas that

“shoved all the funding into deprived…areas”,

I hope the Minister can see why we think transparency is necessary. His party, after all, is the party responsible for the loss of £6.7 billion to fraud and mismanagement.

I hope, too, that the Minister is paying attention right now and agrees that we want the UK Infrastructure Bank to create high-skilled, well-paid jobs. With a good jobs plan for every project that it invests in, we can ensure value for taxpayers’ money. That approach has been taken with previous significant infrastructure projects in the UK. For example, the Olympic Delivery Authority worked with trade unions and others to ensure that the project delivered good quality local jobs, and a similar approach was taken with High Speed 2. If the Government are as committed to their levelling-up agenda as they claim to be, I am sure that they will vote for our new clause today.

Amendment 5 would strengthen the bank’s objectives. It would make it clear that the bank’s target of boosting regional and local economic growth includes reducing economic inequalities within and between regions in the UK. Despite the Government’s assurances to the contrary, the Bill contains only a watered-down commitment that could result in the bank’s resources being poorly targeted and ineffective.

We want a further objective for the bank to contribute to the UK’s supply chain resilience and industrial strategy. I have mentioned the collapse of Britishvolt and the warnings of green investment moving abroad. Those are serious concerns. The importance of supply chain resilience has become particularly clear in the wake of the pandemic and as concerns over energy security have come to the fore with the war in Ukraine. We want the benefits of the UK Infrastructure Bank to be seen here in the UK, with home-grown renewables such as offshore wind, solar, nuclear, hydrogen and tidal power.

[Richard Fuller]

The hon. Lady is being generous in giving way, and I am grateful to her. I want to probe her thoughts a little further on amendment 5. The Bill, as I have said, has the benefit of being quite precise in its current objectives. As parliamentarians, we know that when we take something from statute and leave it to regulators, the House’s ability to hold them to account in the public interest is somewhat weakened. Does she accept that additional objectives would give an Executive a lot more discretion to say, “I didn’t achieve that because I was focusing on this objective”? We have created some primary objectives about climate change and so on. Adding others would leave us somehow disempowered, because those Executives could move and shake around where they said their priorities were. As I said earlier, I am concerned about the balance between laudable objectives and ensuring that, when we have put the Bill into statute, we parliamentarians retain the ability to control what is actually happening on the ground in one, two, three, four and five years from now.

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[Andrew Griffith]

I hope the hon. Lady would never dream of trying to score cheap political points, as distinct from our good-natured and collaborative discussions in Committee. Rather than setting a new timeframe there and then, we looked at precedent in a quest for the optimal timeframe. I undertook to come back on Report and share a proposal with the House, precisely as I am doing today. Having listened and having made that determination, I can feel the warm radiation of support from the Opposition. I hope to see that good will extending to supporting the rest of the Bill without further amendment.

[Richard Fuller]

As it gets warm and huggy between the two Front Benchers, I would like to remind the Minister that I also tabled an amendment in Committee. I hope that he is feeling warm and huggy towards Government Back Benchers as well. He seems huggy, though I am not sure it is politically correct to say that any more. I want to emphasise that the Minister has been listening, which is why he has come back with the amendment. That is the right thing for him to do.

The serious part of my point is how the institutional culture of the bank is set. The Minister will know from his own experience that the first few years are very important. He says that the first review period will be seven years, and I understand that, but can he share with the House some of his thinking about how that responsibility will be balanced? I think Members on both sides of the House are concerned that we set the institutions and regulators out there a task, but then we do not have the time, the information or the control to hold them to the original principles that we have set. Does the Minister broadly agree with that? Is he comfortable with the way the legislation will now be framed?

[Andrew Griffith]

Let me assure my hon. Friend and the whole House that this institution will not lack the proper scrutiny. In that initial set-up period it will be reviewed by both the Cabinet Office and His Majesty’s Treasury. It will not lack scrutiny. It has an obligation to report annually. On some of the amendments we have discussed today, I have already procured a commitment from the bank to put more information into the public domain about its investments and their location, which Opposition Members have rightly pressed us for.

Although the bank is yet to reach its full complement of staffing and run rate of operations, it has already benefited from a serious review by the Public Accounts Committee of this House. I think it would be worth trying to correct some misapprehensions, but I do not for one moment take away the importance of regular scrutiny. We are talking about public money, and it is of the utmost importance that we engender trust as well as good value for public money.

That Public Accounts Committee report is a good and important piece of work. I absolutely commend the work of the Committee, which does a sterling job to protect the interests of taxpayers. We should always remember our duty of care when we are spending other people’s money. It is a good piece of work, and I am grateful for it. We will respond to it in the usual way through the Treasury minute process to get that on the record.

However, I want to address one or two of the points raised. The report raised concerns about governance, but this is an institution that has benefited from strong financial governance from the get-go. All deals done to date have been reviewed by the full UK Infrastructure Bank board before being approved. Because of that, early deals were also approved by HM Treasury Ministers to ensure that we protected taxpayers’ money.

I am proud, as we all should be, of the bank’s work as it continues to engage with the market and across Government, building on its first 18 months in which it has done 10 deals worth more than £1 billion of additive, incremental investment across all parts of the United Kingdom.

[Richard Fuller]

My hon. Friend has just used the magic word “additive”. Would he care to explain further, in the context of these new clauses and amendments, that the issue of additive capital is a crucial part of the bank’s responsibility? This is not just about protecting taxpayers’ money, but about attracting third-party private capital. One of the points about the proposal to spread the objectives is that it becomes harder to attract that capital when the mission of the institution is more diffuse. The more focus it has, and the more focus my hon. Friend has, the more likely we are to achieve the objective of additive capital that he has outlined so clearly.

[Andrew Griffith]

My hon. Friend is, once again, absolutely right. The principle of being additive is baked into the core charters and constitutions, as well as the steer that my colleagues and I will give.

New clause 1 would insert a provision to prevent the sale of the bank. I understand the concern that has been expressed by Members in the past, but I can reassure them that the bank is intended to be a long-lasting institution. I have detected a strong degree of consensus about the importance of this, both in Committee and here in the Chamber, just as our commitment to net zero is long-lasting and a subject of consensus. We intend the bank to be permanent; it is an essential part of the Government’s infrastructure strategy. Moreover, the new clause is simply not necessary. In the event that any future Government considered a sale of the bank—and that is not my expectation—it would require primary legislation at the time. The new clause cannot bind the House on a future occasion, and in any event it is not necessary, so I ask for it not to be pressed to a vote.

The hon. Member for Erith and Thamesmead has tabled a new clause and an amendment. New clause 2 would require the bank to publish an annual report addressing the geographical spread and ownership of bodies in which the bank invests. That is, of course, its core purpose, and I therefore do not think we need the new clause. We debated this proposal in Committee and, for the reasons that we set out then, we do not propose to accept it now.

The new clause is simply unnecessary, because the bank will already be reporting on its investments: it will publish a summary of them in its annual report and accounts. It captures data in all its deal assessments, and will be happy to make them publicly available. I have received a letter from the bank confirming that it will make publicly available the names of developers and/or sponsors of the projects it supports. It will also provide the geographical location of these projects. I feel pressed by colleagues on this matter. I have procured more information, as the hon. Lady has requested and, again, I ask for this new clause not to be pressed to a vote.

As for jobs, it is actions, not lines of statute, that count. We do not need to deliver an amendment to deliver good jobs; just ask the employees involved in the NextEnergy, Gigaclear and Fibrus investments which the bank has already supported. Every job is a good job. The bank is committed to pursuing the highest environmental, social, resilience and governance policy standards, and we do not feel that there is any added value in simply adding extra lines of statute or red tape for the sake of it, as the hon. Lady proposes. It is actions, not words, on which we are focused.

Amendment 5 asks for the bank’s objective to include reducing regional inequality and improving pay, productivity and living standards, as well as supporting supply chain resilience. However, those are already implicit in the bank’s current objective. That is the very purpose of setting up a UK infrastructure bank—the clue is in the name—and we now have a track record to show what the bank is doing to support regional and local growth.

[Richard Fuller]

Will my hon. Friend give way?

[Andrew Griffith]

I will give way one final time, but my hon. Friend will have to make it count.

[Richard Fuller]

I am not so sure about that, but I know that my hon. Friend has a lot of reading to get through. As he obviously knows, part of what is inherent in the net zero objectives is the fact that there will be an increase in supply chain resilience.

[Andrew Griffith]

My hon. Friend did indeed make his intervention count, because that is a very pertinent point. Of course, the whole purpose of the bank is infrastructure and capability building, and the commitment to regions is at its heart. Regional and local growth are among its core objectives. The more diverse infrastructure we have in all parts of this great United Kingdom, the more we are naturally adding resilience and achieving our objective. Indeed, the strategic steer set by the then Chancellor in March last year makes it clear that the bank must focus on geographic inequalities by reference to the levelling-up White Paper, which includes a comprehensive set of levelling-up objectives and measures and supports the Government’s strategic approach to levelling up. We would rather do that on a portfolio basis than investment by investment, as proposed by the hon. Member for Erith and Thamesmead.

Amendments 3 and 4, tabled by the hon. Member for Tiverton and Honiton (Richard Foord), focus on the important issue of water quality. This is an area where the Government do not need any lessons. We are taking the lead in this matter, and are taking the action that the hon. Gentleman’s party and its leader failed to take in coalition. Sometimes one detects the fervour of a convert, or even the working-out of some past guilt about their failure to take action on water.

Oral Answers to Questions

Richard Fuller Excerpts

Tuesday 20th December 2022 Commons Chamber

[Victoria Atkins]

I hope that, in the spirit of Christmas cheer, the hon. Lady will accept that the trade and co-operation agreement is the world’s biggest zero-tariff, zero-quota trade deal. It provides a strong base for UK businesses to trade with the EU. We continue to support businesses trading with the EU, as well as helping them seize new opportunities with fast-growing economies around the world through our free trade agreements.

[Richard Fuller (North East Bedfordshire) (Con)]

The Chancellor was absolutely right in Edinburgh to include environmental, social and governance ratings agencies within the regulatory perimeter. But will he ensure that in the guidance, ESG objectives are consistent with the long-term actuarial goals of pension funds, to ensure that money is available in 20 or 30 years’ time, when people wish to retire?

[John Glen]

My hon. Friend is an expert in this area. He is absolutely right to point to that concern. We must ensure joined-up regulatory innovation to make sure there are no unforeseen circumstances. He puts his finger on a very important point.

Financial Services and Markets Bill

Richard Fuller Excerpts

Report stage
Wednesday 7th December 2022 Commons Chamber

[Andrew Griffith]

The financial services sector is central to our Government’s ambition to bolster our global competitiveness and boost growth in all parts of the United Kingdom. This Bill delivers on our ambition by seizing the opportunities of our departure from the European Union, tailoring financial services regulation to UK markets and delivering better outcomes for the economy, consumers, victims of fraud and businesses. There are many amendments for consideration today, so I will be as succinct as possible, and I look forward to having time to respond to hon. Members’ contributions later.

In Committee, I heard from colleagues on both sides of the House about the importance of holding the operationally independent regulators to account regarding their performance—in particular, that there should be regular reporting on their performance to support scrutiny, beyond just the annual report. Regulation is about not just the contents of the rulebook, but how effectively and on how timely a basis those rules are enforced and implemented.

The Government and regulators are both committed to the highest standards of operational effectiveness. That is why last week we published an exchange of letters with the regulators, making clear the intention to publish more detailed performance data in relation to their authorisation processes on a more regular basis. However, I also noted the clear consensus in Committee on the need to enhance the existing statutory provisions. In particular, I thank my hon. Friends the Members for Wimbledon (Stephen Hammond) and for North Warwickshire (Craig Tracey) for raising this important issue.

As a result, new clause 17 provides a new power for the Treasury to require the regulators to publish additional information on a more regular basis, where that is necessary to support this House’s scrutiny of their performance in discharging their general functions.

[Richard Fuller (North East Bedfordshire) (Con)]

I have seen the exchange of letters—that is very welcome—and I have read new clause 17. Both lack any specificity about what those metrics may be. I do not expect the Minister to respond now, but perhaps in his summing up, to reassure those of us on the Back Benches, he could provide some comfort about how specific he and the Treasury will get.

[Andrew Griffith]

I thank my hon. Friend who, as one of my predecessors, has made a significant contribution to getting the Bill to where it is today. I will try to indulge him, but he will also recognise that the Bill is about putting enabling powers in place, and there will be opportunities on future occasions to discuss how we deploy those.

New clause 18 introduces a requirement for the regulators to ensure that all members of their statutory panels are external and independent of the Treasury, the Bank of England and the regulators. That will codify the current approach taken by regulators, putting it in statute, building confidence in their independence and ensuring that it is maintained on a long-term basis.

New clause 19 introduces a new requirement for the regulators to publish a list of respondents to their public consultations, provided that the respondents consent. The requirement is limited to the financial services regulators and their specific statutory consultation in existing financial services legislation. New clauses 18 and 19 also address points raised by my hon. Friend the Member for North East Bedfordshire (Richard Fuller) and the hon. Member for Richmond Park (Sarah Olney).

I also note the interest of my hon. Friend the Member for Harrow East (Bob Blackman) in enhancing regulator accountability through his new clauses on a new regulators’ supervision council and ending regulators’ statutory immunity from civil damages. I understand where he is coming from, and I note that he chairs the all-party parliamentary group on personal banking and fairer financial services, but the Government’s position is that a new supervisory council would duplicate existing accountability structures. Indeed, none of the representations that I receive from industry says that the biggest thing that will help growth and competitiveness is another layer of regulators. There is also a great deal of existing accountability structures, including the role undertaken by this House and its various Committees, which is why that position was supported by the Treasury Committee in its July 2021 report. Removing the regulators’ statutory immunity from liability and damages would risk regulators over-regulating to avoid the risk of liability. There are already mechanisms for holding regulators to account, including the complaints scheme. That scheme is overseen by the independent complaints commissioner, who has powers to recommend redress.

--- Later in debate ---

[Siobhain McDonagh]

I am tempted to give way, because I want to debate this, but I am observant of the Chair’s ruling on limiting speeches, so I apologise to the hon. Gentleman.

Adding the word “free” into the Bill would not result in the loss of a single paid ATM. It would simply preserves free access for every community, so that no one is obligated to pay for their own money. We have all seen how devastating the impact of bank branch closures can be on our communities, particularly for the elderly, the disabled and the most vulnerable, who are least likely to be able to use online banking and most reliant on access to cash. For them, cash is king. It is why MP after MP has led local campaigns fighting to save bank branches in their town centres, but what is the point of the photo in the local newspaper or the packed public meeting unless the rhetoric is matched by a vote in favour today?

It is time for Members to put their money where their mouth is, to listen to their constituents, to challenge their Whip, and to make a simple, lasting change for the most vulnerable people in their community. It is uncontroversial, tangible, straightforward, no nonsense, common sense and cross party. Free access to cash is, quite simply, bang on the money, and I hope that it will have the support of the House.

[Richard Fuller]

After such a thoughtful presentation by the hon. Member for Mitcham and Morden (Siobhain McDonagh), I am sure the Minister will consider carefully her entreaties and also the opinions of those on the Conservative Benches.

I congratulate the Minister and his Treasury team on this important and big Bill passing through its Committee stage and maintaining its cross-party support, which is so evident here today.

One of my greatest concerns about the Bill is that we underestimate the importance and the severity of the international competition that our financial services face. We are in a fierce global competition and the balance of risk has to be that the UK will not move fast enough, it will not be smart enough and its moves will not be significant enough to maintain and build the comparative advantage of our financial services sector, which is why I have tabled some of my new clauses. It is also why I am looking forward to hearing what the Minister will say to reassure me in his closing remarks.

We need a Bill, a Government and a country that are pro the financial services sector. That is where the wealth is created in this country. If we do not allow the financial services sector in this country to grow to be globally competitive we are harming the taxes that then pay for all the public services on which our constituents depend. In addition, as my right hon. Friend the Member for Chelmsford (Vicky Ford) has said, and as is the case in my constituency and the constituency of my hon. Friend the Member for North Warwickshire (Craig Tracey), I have many constituents whose incomes are directly related to the success of our financial services sector.

My new clauses put down some requirements on the regulator to get with that spirit behind its new objective of international competitiveness. New clause 12 would make it a requirement to publish regulatory performance information that is material to new authorisations, because new authorisations mean growth for the United Kingdom’s financial services sector. We need a very close focus on how effective the regulators are being on that, and the new clause asks for some general statistics.

New clause 13 talks about how the Financial Conduct Authority and the Prudential Regulation Authority work effectively to support already authorised firms, and is specifically to do with approved persons, rules and timings on change in control, variation of permissions and waivers and modifications. Those are the tools of doing business, and if they are not greased and moving quickly enough, that is a source of competitive disadvantage.

New clause 14 is about determination of applications. It would create a new key performance indicator for the FCA. None of this is a criticism of the two individuals who run the FCA and the PRA. They are doing a fine job, but the FCA has a lot of KPIs, which have nothing to do with how effective it is in building the financial services sector in this country. It needs to rebalance—I know the Minister is supportive of this—and I will talk about that in a minute.

New clause 15 would create a duty for the regulators to report on their competitiveness and growth objectives. For me, this is a crucial new clause, and I would like to hear from the Front Bench today that the Minister will commit to this report. If he could look through some of the specific items in my new clause about what should be included, I would very much appreciate a specific response.

The Minister talked about the proportionality principle, and there is indeed a proportionality principle, but I reworded it, because it was not done in a way that was effective for the success of our financial services sector and made a difference between wholesale and retail financial services firms. I have tabled amendments about the cost-benefit panel, which gets to the root and branch of how Government should work out whether to enact a new regulation: what are the cost and what are the benefits?

I appreciate that the Minister has said that he is excluding people who are direct employees of the regulators from being part of those panels, and it seems a pretty basic principle that people should not mark their own homework. However, we need the voices of those who are being regulated in that cost-benefit analysis—their opinions, their views and their data.

[Several hon. Members rose—]

[Richard Fuller]

I am afraid I cannot give way because of your desire to get on, Madam Deputy Speaker, which I completely agree with.

Amendments 1 and 4 bring in the importance of transparency for those two regulators, the FCA and the PRA. We do not want to see regulators going away into a secret room, not telling anyone what the cost-benefit analysis is, and then coming out and saying, “We’ve decided it is X.” We need true transparency on their deliberations and on the opinions that they have received. I am very specific in those amendments.

The hon. Member for Hampstead and Kilburn (Tulip Siddiq), the shadow spokesperson, who is not in her place, spoke about her concerns about the intervention power, which I think she completely mislabelled as a dangerous thought—I think it is a fairly reasonable thought. In her absence, I will just say to those on the Opposition Front Bench that what looks good in an era of declining yield curves and quantitative easing in a democratic country may look differently in an era of rising yields and quantitative tightening.

My amendments are quite specific. The Minister has been supportive throughout the process and I look forward very much to hearing his conclusions in his summing-up.

[Sarah Olney (Richmond Park) (LD)]

The Liberal Democrats recognise the importance of good regulation. Well-designed, effectively administered, properly enforced regulation creates a level playing between competitors and instils confidence in consumers and players in all markets. As the Liberal Democrats’ Treasury and business spokesperson, I have spoken to many businesses in many sectors, including in the City, and I have not found anywhere an appetite for the sweeping away of regulations often advocated by Members on the Conservative Benches. Everywhere I hear calls for effective regulation, properly administered.

--- Later in debate ---

[Andrew Griffith]

Fraud is of course a shared responsibility between the Treasury and my hon. Friends in the Home Office, and when it comes to the report that the hon. Member for Hampstead and Kilburn is quite rightly challenging us to produce as quickly as possible, we want that report to be right rather than quick, but we do need to bring it forward as quickly as possible. We will use the time wisely to engage with expert stakeholders, which could well include the training of which my hon. Friend speaks, and we will come forward with that early in 2023.

In addition, this Bill is a seminal moment in protecting victims of authorised push payment fraud. It will ensure swift protections for the vast majority of APP scam victims, reversing the presumption and making sure they receive swift reimbursement so that they are no longer victims of this crime. The measure enables the Payment Systems Regulator to take action across all payments systems, not just faster payments, which is where the fraud occurs most, so that it does not merely get displaced. The Government expect protections for consumers across all payments systems to keep pace with that.

[Richard Fuller]

My hon. Friend has not yet had an opportunity to talk about the Government’s initiative on stablecoins and digital currencies. Given that he has just talked about scams and some of the concerns with cryptocurrencies, is he reassured that what is in this Bill relating to stablecoins remains absolutely front and centre of the Government’s attention?

[Andrew Griffith]

I again thank my hon. Friend, who did so much work on this Bill. It is absolutely right that the Government keep an open mind to new technologies, and my hon. Friend the Member for Devizes (Danny Kruger), who is always very thoughtful, talked about this, but we have to understand the risks. While the risks to consumers of scams in the crypto-space, among others, is extremely high and has been well telegraphed, when it comes to looking at different payment systems—with the power of distributed ledger technology to solve issues such as settlement to make our financial markets cleaner, faster and more efficient—it is absolutely right that the Government consider looking at that, and we will be looking to do more in that domain.

Co-operatives, Mutuals and Friendly Societies Bill (First sitting)

Richard Fuller Excerpts

Committee stage
Wednesday 30th November 2022 Public Bill Committees

[Richard Fuller (North East Bedfordshire) (Con)]

Would the hon. Member be interested, as I would, to hear an update on the progress the Minister has made on that front? It is a key part of what the Bill is trying to achieve, and we want to ensure that we do not lose this opportunity.

[Sir Mark Hendrick]

I thank the hon. Member for his contribution and for the part he played in my getting this far with the Bill. I hope the Minister will indicate what moves are afoot and what progress will be made in that direction.

Finance Bill

Richard Fuller Excerpts

2nd reading
Monday 28th November 2022 Commons Chamber

[James Cartlidge]

My hon. Friend is extremely astute: he has noted the significant contribution these taxes will make to the Exchequer. As I have just said, although this generous allowance is to ensure that we still encourage investment at a time when energy security is critical and where the long-term solution is having secure energy in this country, he is right to highlight the revenue being raised. After all, it goes a long way to funding the support that our constituents are receiving. In fact, they are receiving it this very week: payments are going out to support people facing these very high energy bills. The energy support guarantee this winter will save a typical household £900. We are putting in place extensive support, and as my hon. Friend says, a significant amount of that revenue comes from this new tax.

Putin’s barbaric illegal invasion of Ukraine and the utilisation of energy as a weapon of war has made it clear that we must become more energy self-sufficient. That is why this Bill also ensures that the levy retains its investment allowance at the current value, allowing companies to continue claiming around £91 for every £100 of investment. This investment will support the economy and jobs while helping to protect the UK’s future energy security, and in future the Government will separately legislate to increase the tax relief available for investments which reduce carbon emissions when producing oil and gas, supporting the industry’s transition to lower-carbon oil and gas production. Together these measures will raise close to £20 billion more from the levy over the next six years. As my hon. Friend said, that brings total levy revenues to more than £40 billion over the same period—of course he added on top of that the electricity generators levy, which we will be consulting on. The Government are also taking forward measures to tax the extraordinary returns of electricity generators, as I have just said, but we will do so in a future Finance Bill to ensure that we can engage with industry on these important plans.

The autumn Finance Bill also introduces legislation to alter the rates of the R&D tax reliefs. Making those changes will help to reduce error and fraud in the system, ensuring that the taxpayer gets better value for money while continuing to support valuable research and development needed for long-term growth. Over the last 50 years, innovation has been responsible for about half of the UK’s productivity increases. That is an extremely important statistic. We all know the value of R&D to all of our constituencies—I look in particular at my hon. Friend the Member for South Cambridgeshire (Anthony Browne), who will know of its importance in our university cities and all of our key clusters. R&D is a key way of raising productivity, which is why we have protected our entire research budget and will increase public funding for R&D to £20 billion by 2024-25 as part of our mission to make the United Kingdom a science superpower. These measures are significant, but ultimately businesses will need to invest more in R&D. The UK’s R&D tax reliefs have an important role to play in doing that.

[Richard Fuller (North East Bedfordshire) (Con)]

The Government are absolutely right on this point. The objective of giving taxpayers’ money to companies for use through R&D tax credits is to focus on improving productivity. There were real concerns, particularly in the smaller business segment, that the scheme was not working correctly. One aspect of the scheme that caused some concern to small businesses was the time that it was taking for some credits to be paid out, but I think that is improving. Perhaps in summing up later, the Financial Secretary to the Treasury could point to what recent progress has been made on that.

[James Cartlidge]

I am grateful to my hon. Friend. Of course, he was in the Department and has a business background, so he knows the detail and the importance of R&D tax reliefs. I am sure that my hon. Friend the Financial Secretary to the Treasury will have a chance to look at that later. I believe that we will be having a meeting about a separate issue of concern—a certain railway project that matters to him—when we can also discuss these points.

I turn to the specific detail. For expenditure on or after 1 April 2023, the research and development expenditure credit rate will increase from 13% to 20%. The small and medium-sized enterprise additional deduction will decrease from 130% to 86%, and the SME scheme credit rate will decrease from 14.5% to 10%. That reform will ensure that the taxpayer support is as effective as possible. It improves the competitiveness of the RDEC scheme and is a step towards a simplified RDEC-like scheme for all.

That means that Government support for the reliefs will continue to rise in cost to the Exchequer—from £6.6 billion in 2021 to more than £9 billion in 2027-28—but in a way that ensures value for money. To be clear, the R&D reliefs will support £60 billion of business R&D in 2027-28, which is a 60% increase from £40 billion in 2020-21. The Government will consult on the design of a single scheme and, ahead of the spring Budget, work with industry to understand whether further support is necessary for R&D-intensive SMEs without significant change to the overall cost.

--- Later in debate ---

[James Cartlidge]

The furlough scheme, on its own, protected 11.5 million jobs. Does the hon. Gentleman seriously think that the Government should expand some extraordinary array of resource to find out what those 11.5 million people did with the money that kept them in work when they could have been looking at unemployment, and we could have been facing the most staggering economic depression in our history? We avoided that and, instead, we reduced unemployment by 2 million more than was expected. We avoided that cut in jobs, which would have been absolutely devastating for communities across the country, and we should all be grateful.

[Richard Fuller]

rose—

[Paul Holmes]

rose—

[James Cartlidge]

I have already given way to both my hon. Friends, but I will go to Bedfordshire.

[Richard Fuller]

That is certainly the best place the Minister can go. He is always welcome in North East Bedfordshire.

The Minister will remember that the additional rate of tax was introduced as a temporary measure by Gordon Brown. When the Conservatives came into government in coalition in 2010, we looked forward to its being scrapped—yet here we are today, proposing that more people on lower incomes, in nominal as well as real terms, be made to pay that additional rate of tax. With the basic allowance tapering off above £100,000, and with the introduction of this rate, does the Minister accept that people in this country who earn more than £100,000 now face effective tax rates of 60% or 50%?

[James Cartlidge]

As a Conservative who wants taxes to be lower, I do not stand here with any relish in putting forward a Finance Bill that will increase taxes. The Chancellor was very clear that we will have to pay more tax, but my hon. Friend understands the aggregate reason, I hope, which is the need for fiscal stability. The overall rate will have an impact of £1,200 a year, as I have said; I do not deny that it will be significantly impactful for our constituents. We want to cut taxes if we can, but before we do so we have to get on top of inflation.

I give way to my hon. Friend the Member for Eastleigh (Paul Holmes).

--- Later in debate ---

[Richard Fuller]

Will the hon. Gentleman please check his facts? If he looks at the period from 2010 to just before the covid pandemic and compares the UK’s average rate of growth with that of our OECD competitors, particularly the G7, he will find that the UK outstrips all of them bar the United States and Germany.

[James Murray]

I seem to be engaging more with the hon. Gentleman now that he is on the Back Benches than when he was briefly on the Front Bench. If he looks at the statistics, he will see that, over the last 12 years, the UK’s growth rate has been a third lower than the OECD average, and a third lower than it was during the previous Labour years. I will take no lessons from him or his colleagues on the need for economic growth.

I take this opportunity to give the previous Chancellor, the right hon. Member for Spelthorne (Kwasi Kwarteng), some rare credit. At least he took responsibility for the mess he inherited from his colleagues when he confirmed that our economy is stuck in a “vicious cycle of stagnation.” On that point, he was absolutely right.

Over the Conservatives’ 12 years in power, as I said to the hon. Member for North East Bedfordshire (Richard Fuller), the UK economy grew a third less than the OECD average and a third less than during the previous Labour years. What is more, we are now the only G7 economy that is still smaller than before the pandemic. Over the next two years, we are forecast to have the highest inflation in the G7 and the worst economic growth of any country in the G20 except Russia.

What is more, we are the only country in the G7 whose governing party chose to inflict profound damage on its own economy. Although the Prime Minister and the Chancellor refuse to take responsibility, the British people can see through them and will hold them to account. What the British people want and need is a Government who will get on and do the right thing without having to be pushed, dragged and forced into doing so. That is one reason why people across the country have been so exasperated by the Government’s reluctance at every turn to implement a windfall tax on oil and gas producers’ huge profits this year.

My right hon. Friend the Member for Leeds West (Rachel Reeves) first called on the Government to bring in a windfall tax in January. It took five months of pushing the Government along a painful journey to get them to act. In those months, Conservative Ministers tried to defend their position, saying that oil and gas producers were struggling. They said a windfall tax would be “un-Conservative”, and the current Prime Minister said it would be “silly” to use this money to offer people help with their energy bills. Conservative MPs voted against a windfall tax three times, and then, when they finally realised their position was untenable, they did a U-turn.

Even then, having been dragged kicking and screaming into introducing a windfall tax, the current Prime Minister coupled it with a massive tax break for the oil and gas giants. This tax break will be given to the oil and gas giants for doing the things they were going to do anyway, which helps to explain why some of them have paid zero windfall tax in the UK this year, despite record global profits.

Despite having another go at windfall tax legislation with this Bill, the massive tax break is still there. It is set at a level that will, to quote the explanatory notes,

“maintain the overall cumulative value of relief”.

This tax break leaves billions of pounds on the table. These profits—the windfalls of war—could go towards helping people facing the difficult months ahead. This tax break is set to cost the taxpayer £80 billion over five years. This tax break was brought in by decisions that this Prime Minister took when he was Chancellor, and it is staying thanks to the decisions of the Chancellor he appointed from No. 10. What clearer evidence could there be that, no matter which Conservative goes through the revolving door of Downing Street, it is all more of the same?

All we get from the Conservatives is the same vicious cycle of stagnation. This doom loop has been dragging wages down, forcing taxes up and hitting public services, all of which come round again and keep economic growth low.