Kew Gardens (Leases) (No. 3) Bill [Lords]

Stephen Pound Excerpts

3rd reading: House of Commons & Legislative Grand Committee: House of Commons
Wednesday 24th July 2019 Commons Chamber

[Stephen Pound (Ealing North) (Lab)]

It is a sad commentary on—or almost a tragic indication of or a metaphor for—our times that a Bill like this which every sane, sensible person would support wholeheartedly seems to have run into the mire of parliamentary procedure. The hon. Member for Perth and North Perthshire (Pete Wishart) normally exhibits a warmth and amity so typical of his Caledonian cousins, and he normally extends this warm cloak of friendship over all of us and wishes nothing more than to accelerate the proceedings of the House, but on this occasion there was a smidgen of sarcasm about his words; it pains me grievously to say that. He implied that somehow this was not a matter of great moment beyond west London—although west London is obviously a place of great significance.

Kew Gardens is a global treasure store. It is a world bank and a world centre of excellence, yet the hon. Member for Perth and North Perthshire—one of the very few Members of this House to have exposed himself to the nation on “Top of the Pops” when he was playing with Runrig—somehow implied that this was not an issue that stretched beyond west London. I immediately thought of F. E. Smith during the Established Church (Wales) Bill, when he suggested that the eyes of the entire world would be on us. Hon. Members may remember Chesterton’s comment at the time:

“Are they clinging to their crosses, F. E. Smith,

Where the Breton boat-fleet tosses,

Are they, Smith?

Do they, fasting, trembling, bleeding,

Wait the news from this our city?

Groaning ‘That’s the Second Reading!’

Hissing ‘There is still Committee!’”

This is an important Bill, and I have to say that the Minister has exhibited many of the great skills of the horticulturalists. He has been patient and allowed the Bill to grow before us. He has battened off invasive species using only organic principles—

[Gordon Marsden (Blackpool South) (Lab)]

Will my hon. Friend give way?

[Stephen Pound]

I was coming on to chemicals, but of course I will give way.

[Gordon Marsden]

In his encomium for the Minister, will my hon. Friend ask him whether he has done enough pruning?

[Stephen Pound]

The parliamentary secateurs—if not the snips—certainly should have been exhibited earlier on.

Kew Gardens is not just a world centre and seed bank; it is also a place of huge entertainment. My hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard) talked about a concrete and steel part of the world that is illuminated and enlivened by this patch of green. Actually we are not all concrete and steel in west London, but we are grateful for that patch of green. Many of us will go along to the exhibitions, and not just the incredible Christmas celebrations—[Interruption.] What? I am sorry, Mr Deputy Speaker, but it always hurts me when a voice from the Rhondda is in any way attacking me. Kew is not just a place of great entertainment and an extraordinary resource for the world; it also has a new function nowadays. All over London we have these pop-up gardens on large, soulless council estates, and it is Kew that people go to for information on this. It is Kew that provides the details of plants that do not need a huge amount of watering or that can be resistant to problems. I am glad to see that the leader of the all-party parliamentary group on horticulture and gardening, the hon. Member for Taunton Deane (Rebecca Pow), is on the Front Bench today. I trust that that means she has been promoted. All I can say is that Kew is for the world; it is not just for us in London. The Minister has done an excellent job, and I hope that we can leave aside the sourness and bitterness that may occasionally have been exhibited this afternoon and celebrate the glory that is Kew.

Question put and agreed to.

Bill accordingly read the Third time and passed.

Kew Gardens (Leases) (No. 3) Bill [Lords]

Stephen Pound Excerpts

2nd reading: House of Commons
Monday 24th June 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (David Rutley)]

I beg to move, That the Bill be now read a Second time.

As the Minister in the House of Commons with responsibility for the Royal Botanic Gardens, Kew, I am delighted to present a Bill that will provide the ability to grant longer leases on Crown land there, opening new streams of revenue that will support the great British institution and enable it to flourish in the future.

Let me place on record, at the outset, my appreciation of the work of Members in this House—my hon. Friends the Member for Bridgwater and West Somerset (Mr Liddell-Grainger) and for Richmond Park (Zac Goldsmith)—who have promoted similar private Members’ Bills on Kew Gardens. I also note the keen interest of noble Lords in supporting Kew. A similar Bill was promoted by Lord True, and this Bill, before coming to this House, was amended by Lord Whitty so that he and others could be reassured in placing the duty to prevent inappropriate development at Kew unequivocally on the face of the Bill.

Indeed, I think it fair to say that the Bill has already received support from Members on both sides of the other place. Baroness Jones of Whitchurch considered the Bill, and Lord Whitty’s amendment, supported by the Government, provides a double lock on future extended leases. Baroness Kramer and Lord Rooker were pleased that the Bill strengthened the protection of Kew and allowed us to look to a future as distinguished as its proud history.

Kew is a scientific institution of the utmost importance, not only for the United Kingdom but as a global resource—the global resource—for knowledge of plants and fungi. We are facing immense challenges when it comes to the preservation of the natural world, and it is clear that there is an essential role for plants and fungi in that regard.

[Stephen Pound (Ealing North) (Lab)]

The hon. Gentleman talks about Kew being a centre of scientific research. For those of us in west London not blessed with wide open spaces, Kew is a treasure house—an absolute treasure trove of delights. The recent exhibition of Dale Chihuly showed Kew Gardens at its absolute finest. I hope that I speak for everybody on the Opposition Benches when I say we entirely support the hon. Gentleman, but particularly those of us in west London who absolutely love this treasure so close to our hearts.

[David Rutley]

The hon. Gentleman speaks well for the west London posse. He speaks very assuredly and with great passion as always for Kew Gardens, and we are grateful for that. It is a wonderful institution. I assure him that people not just in west London but across the nation want to visit it, and I hope that that is a boost to the local economy.

We are facing immense challenges in preserving the natural world. Within the challenge it is clear that there is a central role for plants and fungi, and Kew can provide answers about how plants and fungi will help us and our planet not just thrive but survive. Kew is a custodian of world-renowned collections, including the Millennium Seed Bank at Wakehurst and the Herbarium at Kew itself. The restoration and digitisation of the Herbarium will need considerable investment and will make the collection accessible globally.

Kew scientific research leads the world. With more scientists than at any time, its research is crucial in solving the challenges facing humanity today. Kew plays an extraordinary global role, in partnership with scientists, educators and communities, promoting research, education and conservation.

Kew does so much to involve the public, as we have already heard. With over 2 million visits to Kew and Wakehurst each year and around 100,000 pupils on school visits, it is building a wider understanding of plants and fungi and why they matter to us. Across the spectrum of public engagement, Kew is fostering a wider understanding of plants and fungi and why they matter to us.

Kew is not only an extraordinary scientific institution; as visitors and scientists will know, the estate includes many special buildings and structures, more than 40 of which are listed. It is a huge challenge to ensure the maintenance of these structures, which due to their historical nature is undertaken at considerable expense. We have a duty to balance public spending against priorities, and Kew is no exception. In view of Kew’s important role, DEFRA has been able to maintain funding to Kew in cash terms over this spending review period, but a key part of that was to support Kew to develop its other sources of income to deliver its ambitions.

Kew has made great strides in improving its financial sustainability. Kew’s Government grant forms just over one third of its income—37% in the 2017-18 accounts—and its mixed funding model is proving hugely successful, for example by using Government funding to leverage significant philanthropic and grant funding for renovation of the Temperate House, which reopened in 2018. Nevertheless, parts of the Kew estate, including some listed residential buildings near Kew Green, badly need investment to maintain and enhance their condition and enable Kew to realise additional income.

Attracting capital investment to refurbish buildings within the boundaries of Kew is one of the big opportunities available, but the current 31-year limit on leases imposed by the Crown Lands Act 1702 has made this difficult to realise. The Bill will allow leases to be granted on land at Kew for a term of up to 150 years. Longer leases will enable Kew to realise additional income from land and property, and will reduce maintenance liabilities and running costs. The additional income generated will help Kew to achieve its core objectives, maintain its status as a UNESCO world heritage site, and prioritise maintaining and developing its collections as well as improving the quality of its estate.

--- Later in debate ---

[David Rutley]

My right hon. and learned Friend makes a good point, and I am sure that these matters will be given due consideration. The car park that may be envisaged in the future would need to comply with planning regulations locally, so these things would have to be considered.

[Stephen Pound]

Will the Minister read into the record a fact that is known to many of us, but perhaps not to every one of the vast number of people paying attention to the debate? Anyone who emerges from the main gate at Kew and strolls less than 100 yards up the road will find themselves at Kew Gardens station, where they can take the elegant District line to almost any place that their heart desires. There is also the London Overground. No one actually needs to drive there. There are three buses that stop there and two tube stations very close by. Would he care to note that for the record?

[David Rutley]

Noted. The hon. Gentleman is well informed, and I thank him. Of course it makes sense to use sustainable transport whenever possible, particularly when visiting Kew.

Another element of protection that will continue under the Bill is that of Kew’s UNESCO world heritage site status, and other designations that offer protection under the planning system. These will apply to any lease granted under the provisions of the Bill. Once again, the Bill goes further, requiring that before granting any lease the Secretary of State must be satisfied that the lease and anything that the leaseholder is permitted to do with the property under its terms would not have any adverse impact on Kew’s UNESCO world heritage site status.

--- Later in debate ---

[Dr David Drew (Stroud) (Lab/Co-op)]

I am pleased to be able to speak on Second Reading. The Minister can relax because the Opposition have no intention of dividing the House. In fact, we hope that the Bill gets on its way speedily. I thank him for arranging for me to go to Kew last week. It was the third time that I have managed to get to Kew, which is a haven of peace and a wonderful facility. It is no wonder that it is a UNESCO world heritage site, and we must maintain that status and do everything we can do to improve it.

I welcome my hon. Friend the Member for Midlothian (Danielle Rowley) to the Opposition Front Bench. It is apposite that this debate comes before the debate on the motion relating to climate change. The Labour party believes that climate change must be given greater emphasis both in this place and outside. I hope that my hon. Friend can take part in future debates, but perhaps not this one because it will be fairly short.

[Stephen Pound]

I will not interrupt again.

My hon. Friend just mentioned his visit to Kew, which I have visited many times. I was delighted to be shown around by Eric White last weekend, and the all-party parliamentary group on gardening and horticulture has also arranged such visits. Given that other things are happening in the world of politics and we are not blessed with a huge attendance, does my hon. Friend agree that it might be an idea to invite the director of Kew to set up an invitation to parliamentarians to visit Kew? Those who have not tasted the delights of this glorious oasis of peace do not know what they are missing.

[Dr Drew]

I thank my hon. Friend, and I am sure the director will have heard him—particularly if he can get £18 off us all individually as our contribution to keeping this wonderful facility in place. I did not pay my £18, so if the Minister wants to take it off me later, I willingly make that offer.

This long-awaited Bill has been around for some time, and it is urgently needed. The enthusiasm of the staff for their wonderful facility is only enhanced by their need for this Bill, because they need more money. We will talk a bit more about that.

The hon. Member for Richmond Park (Zac Goldsmith) will no doubt say a few things about the Bill, because he, like Lord True and the hon. Member for Bridgwater and West Somerset (Mr Liddell-Grainger), tabled a previous Bill. This Bill has been round the houses. It may not have been scrutinised before, but it has been known about, and it is a short Bill that should not take us much time.

In fact, we offered to get through the Bill much quicker, because it will come back again on Report and Third Reading. We were quite happy to consider the Bill in one sitting. We are not tabling any amendments, because the amendments moved by my noble Friends Baroness Jones and Lord Whitty have already been made. We have got what we wanted on giving greater protection to this heritage site, and we are happy the Government agreed to that.

It is important to recognise that the Bill dates back to the difficulties in which Kew Gardens found itself in 2014-15, when there was a potential funding crisis. The then director identified that Kew could lose up to 150 research staff, which would have been a tragedy given the facility’s international importance not just in terms of public access but in being the world’s most important research institution. I will say a bit more about that shortly.

Kew’s particular grouse in 2014-15 was that, in 1983, it got 98% of its funding from the state through grant in aid, which the Minister says is now down to just over 40%. By comparison, the Natural History Museum still draws the vast majority of its funds through the state. There is a lack of parity, at the very least. When and if Kew gets this money, I want assurances about what happens to that money, and I will say something about that in a minute.

The Select Committee on Science and Technology called the Government to account in 2014-15, and one of the things the Committee was clear about is that the Government did not have a clear strategy with regard to Kew Gardens, so it would be interesting to know what progress has been made on the strategy. This Bill may be part of that progress, and there may be other things that the Minister wants to say about the progress that can be made, but progress there needs to be. Protecting and enhancing this wonderful facility will take money. The cost will partly be defrayed by what we are talking about today, but there is no substitute for the fact that the state has to put its hand in its pocket. It has done to some extent, but it needs to do more—again, I will say more about that in a moment.

In a sense, things are on a more even keel than they were, because the cost of going into Kew has risen and now stands at £18 per individual. There are discounts and family tickets, but for people in many walks of life £18 is quite a high contribution, despite the fact that it is a wonderful day out, given that they can go to museums for free. One problem in attracting people, particularly tourists, to Kew is that additional cost they face. Will there be any implication here in terms of additional rises in the entrance fee, even though this may give Kew some extra money? My worry always with this extra money is whether it will go to Kew directly and will not be intermediated by the Treasury, which may just see it as a little cash bonus and take some of it away. We are talking about £15 million, as a maximum. In terms of what Kew gets, that may be a considerable sum, but it will get that hit only on one major occasion. It would therefore be interesting to hear from the Minister that he has got assurances from the Treasury that the money will go to Kew, will be ring-fenced and will not be taken for anything else. I say that because I want to talk about what this wonderful institution will have to do.

We welcome the Bill, but I just want to establish that we are talking about 11 properties. When I walked around the estate, it was apparent that other houses were already in the private sector, so it would be interesting to know exactly what properties we are talking about. I know it is a mixture of houses and flats, but the Minister could certainly clarify that. Again, it would be interesting to know, following on from what the Select Committee said, some of the ways in which the charitable context, which the Minister has explained, is fully understood by all concerned. A slightly different arrangement does apply, because this is not subject to the Charity Commission. We have all received a briefing note from the Charity Commission, but it has very little say over how this charity operates. It is entirely dependent upon the Department for Environment, Food and Rural Affairs and therefore DEFRA has to be the agency that protects Kew more than anyone else.

I have a big ask of the Minister, and I hope he is listening. The one thing I did learn was about the need to digitise the herbarium records. They are the most important records of flora—there are some of fauna—in the world. I, for one, would be exceedingly worried if we did not digitise that record as a matter of urgency. There is a £40 million cost, but I hope the Government will look to make a big contribution towards it, because if that building was to catch fire and those thousands of exhibits were lost—I know that is a big if, but these things could always happen—the world’s greatest collection would be endangered. So I hope the Minister might have some say over the way in which the Government’s future strategy takes us towards digitising those herbarium records, and there would be another big advantage, because many people from all over the world want access to those records but currently have to arrive in person at Kew. For people on the other side of that world that involves a big cost, and it is important to recognise that is our obligation to make those records more easily accessible.

I just want to share a few stakeholder views, which are important to put on the record. These largely came out of the inquiry of nearly five years ago, but they are still pertinent. One key thing was about Kew’s status in the global strategy for plant conservation, where it has an important part to play, as it does in terms of the convention on international trade in endangered species, livelihoods, and UK and international biodiversity strategies. All that is tied up with where Kew is and what it does. I hope the Minister accepts that the Bill will contribute towards that, so we can be clear on where the Government’s strategy is taking us.

I have some questions that the Minister needs to answer on the record, because Kew is such an important aspect of the heritage of not only London but the whole country. I have already mentioned the cost of entry, so I shall not labour that point. Another argument that the Select Committee put forward was that in a sense the Department for Environment, Food and Rural Affairs has become the sole funder of Kew, which is largely understandable. However, Kew draws no money from the Department for Digital, Culture, Media and Sport, let alone from the Department for International Development, even though both Departments draw benefit from what Kew has to offer. It would be interesting to know what discussions the Minister has had with those other Departments to see whether they could contribute to the funding as we take Kew Gardens forward.

There is an issue with how we balance what Kew is in respect of its research work and public access. None of us will want to see it become more commercialised, let alone a theme park, which has been a prominent idea in some people’s views on how to deal with the financial shortcoming at Kew. We want to keep it as it is, open for public access, but the back-office elements are important. Kew is crucial to our understanding of climate change. Much of the research that will have to be done on how we feed our future population will be undertaken by Kew scientists, so it would be interesting to know where it fits into the Government’s climate change strategy. One hopes it will play in important part.

I have two more issues to raise quickly. In respect of the action on biodiversity, it is crucial that we do not in any way downgrade Kew’s status because of lack of funding. I hope that the Government will make it clear that Kew has an important part to play in the biodiversity strategy that the Government wish to address.

Finally, the recent report by the Joint Nature Conservation Committee, which was published in January 2019, showed that the UK is on track to miss 15 out of its 20 Aichi biodiversity targets. By which date does the Minister expect the UK to be on track to meet those biodiversity targets, given that the only way we can do so is through Kew’s active participation?

Overall, the Bill is good, short and pertinent, so we give it our support and hope that the Government can get it through as a matter of urgency.

[Zac Goldsmith (Richmond Park) (Con)]

It is a rare opportunity for a Member to be able to speak on legislation that pertains almost exclusively to his or her constituency, but I have that honour today, because the magnificent Kew Gardens is in my constituency—

[Stephen Pound]

And really close to mine.

[Zac Goldsmith]

That is absolutely right.

I am delighted that the Government have taken up this small, uncontroversial but nevertheless important Bill. Members who have visited Kew Gardens will know what an extraordinary place it is. With 2 million visitors a year, including 100,000 schoolchildren, the gardens are one of the great wonders of the world. There are stunning landscapes, extraordinary plants and peaceful walks—except when they are punctuated by the noise of aeroplanes flying over, but that is a debate for another day.

Kew is a great deal more than a beautiful garden or a tourist attraction: in addition to hosting the world’s largest collection of living plants, its herbarium contains a collection of more than 7 million plant species. It is an extraordinarily valuable international resource, which is in the process of being digitised, as we have just heard, and made freely available worldwide. Kew Gardens is at the forefront, the cutting edge, of international plant science, which is crucial in providing a response to the existential threats of climate change, antimicrobial resistance, and diseases such as cancer, diabetes and more. Kew is simply a priceless national asset, and we should be doing everything we can to support it.

That brings me to the Bill. Very briefly, let me say that I first brought it to this House as a ten-minute rule Bill in January of last year, following similar efforts by my hon. Friend the Member for Bridgwater and West Somerset (Mr Liddell-Grainger) and by my friend Lord True in the other place. Unfortunately, it was blocked, I think, nine times by a friendly colleague on the Government Benches. I want to repeat my thanks to Ministers from the Department for Environment, Food and Rural Affairs for their decision to bring the Bill forward in Government time, and I welcome the changes that have been made to the Bill in the Lords. Although the intention of the Bill was never to allow Kew to lease out core parts of its estate, it is welcome that that is now clear in the Bill, with explicit protections for its UNESCO status.

Having visited Kew many, many times, including this morning, I can assure hon. Members that the clear intention is to use the powers in this Bill to lease out the residential buildings on the periphery of Kew’s estate. In fact, I saw a number of those buildings this morning, all of which are beautiful and all of which have been empty for more than a decade. The anomaly of Kew Gardens being Crown land means that it has several buildings that can be leased for a maximum of only 31 years, which is not commercially attractive compared with the 150 years that the Bill will now allow.

Like the hon. Member for Stroud (Dr Drew), I want to caution against the suggestion that passing this Bill into law will provide some kind of windfall for Kew. There is no doubt that the potential financial gains are significant, but they must not be seen as a substitute either for visitor income or for Government funding. I hope the Minister agrees that this Bill is an opportunity for Kew to do more. With the spending review on the horizon, I urge him to make sure that Kew continues to receive significant support from Government. I want to reiterate that this Bill must not be used as a pretext to reduce such funding sources.

I thank the Bill team for their support and their willingness to take this Bill off my hands, out of the risk of its being blocked by some on the Back Benches, and on to the statute book. I look forward to it passing its first Commons stage this afternoon.

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[David Rutley]

There we go. As the hon. Gentleman knows, I am a reasonable man, and I am trying my best to move forward with this legislation. With support from the Opposition, Government Members and those across the House, we are making progress. Hopefully we can make more.

The hon. Gentleman is right to say that it is appropriate to hold the Bill’s Second Reading ahead of the climate change debate. I wish to join him in welcoming the hon. Member for Midlothian (Danielle Rowley) to her place. It is also good to see my hon. Friend the Minister for Energy and Clean Growth in his place for what will be another important speech.

I want to respond to many of the points made in the debate. With characteristic enthusiasm and passion, the hon. Member for Ealing North (Stephen Pound) has persuaded people at Kew in no time at all that it is entirely appropriate for a group of MPs to come along. They would indeed like to extend that invitation to Members here, so I hope that he can join us on that occasion. It is rare for our suggestions to be put into action so quickly, but the hon. Gentleman has managed it.

My right hon. and learned Friend the Member for North East Hertfordshire (Sir Oliver Heald) mentioned low-carbon transport. Kew’s transport policy is, of course, not within the scope of the Bill, but we will pass on his comments to people there. My hon. Friend the Member for Camborne and Redruth (George Eustice) talked about extending the leases; I responded by saying that leaseholders could apply to replace the original lease with a new one of no more than 150 years. The hon. Member for Stroud also asked which properties would be included.

My hon. Friend the Member for Richmond Park (Zac Goldsmith) made a very important speech; I say a huge thank you to him for his remarkable work and support for Kew over the years. He also does a huge amount on the wider debate about biodiversity and climate change, for which many Members—not least DEFRA Ministers—are extremely grateful.

Of the properties that we are talking about today, five are currently let on a one-year lease following renovation work, partly funded by a loan, and two are unoccupied and require substantial renovation to bring them up to a habitable condition or make them fit to become office accommodation. In the first instance, Kew would like to focus on that portfolio of properties, particularly the unoccupied properties. That portfolio can itself generate a capital sum or remove liability for renovation or maintenance works—a cost avoidance of about £15 million over a 10-year period.

The hon. Member for Stroud also asked about funding and what would be done with it. The Government’s intention is for Kew to receive the income to support its mission, including investment in its infrastructure and the quality of the world heritage site itself. Although I cannot prejudge the outcome of the forthcoming spending review, the importance of Kew’s mission and of securing the institution’s future means that my Department will be working closely with Kew to put forward the strongest possible case. That includes significant investment in digitising Kew’s herbarium collection, which the hon. Gentleman called for and which my hon. Friend the Member for Richmond Park said was so important, so that it can be conserved securely and be globally available.

Kew’s work is vital for our biodiversity and in tackling climate change. The hon. Gentleman can be assured that we will push hard to get the right funding for these tasks. It is vital that we get behind that work and further support Kew, because it is a global centre of knowledge about plants and fungi, and that should never come under any question. Given my remarks, I hope that the hon. Gentleman and other Members will be assured that we are in this for the long term. We need Kew to thrive and survive, and the Bill will help it do just that.

I hope that Members are now fully aware of the necessity of the Bill and the benefit that it will bring to the Royal Botanic Gardens, Kew, and the wider role played by Kew generally. I also hope that hon. Members feel reassured that proposals under any new lease will be subject to scrutiny by trustees, the Secretary of State and through the planning process with the local planning authority, as well as being in line with Kew’s world heritage site management plan.

It is an honour to have participated in this debate. We care passionately about Kew, and we are grateful to the team there for their important work—I think everybody would echo that—and for their sheer enthusiasm.

[Stephen Pound]

Long may they flourish!

[David Rutley]

Long may they flourish, grow and prosper—absolutely. Their enthusiasm is infectious, and we are grateful for it. We want them to continue to succeed in the work they do. I hope the Bill will continue to make positive progress through Parliament, so that we can take this work forward.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Thank you.

[Stephen Pound]

Thank Kew!

[Madam Deputy Speaker]

For the avoidance of doubt, and particularly for Mr Pound’s information, I should say that that was entirely unintentional.

I thank the whole House for dealing so swiftly with this important matter after the many months that the hon. Member for Richmond Park (Zac Goldsmith) spent trying to get the Bill through the House.

Question put and agreed to.

Bill accordingly read a Second time.

Value Added Tax Bill

Stephen Pound Excerpts

Friday 8th February 2019 Commons Chamber

[James Cartlidge]

Of course. Although that is a very good point, it does assume a competitive marketplace where that tax change would be passed on in full to the consumer, and it remains to be seen whether that would be the case.

The point that I was trying to make is that when the Labour party makes unfunded commitments, we talk about the magic money tree. I have to say that I was trying to keep a tally as my hon. Friend the Member for Christchurch was speaking, and he seems to have opened up something that we might call a wondrous wonga arboretum of revenues. At one point, we were looking at £7.6 billion, once we added in the heating exemptions and the potential increase in the threshold to half a million pounds. These are not inconsiderable sums of money. The key thing that we have to remember is that, yes, there are those who argue about dynamic effect on behaviour, which means that these things are revenue-neutral. Perhaps I am a small c conservative, like a former great Chancellor, my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke), whom I admire greatly. He was talking about this very Budget. He used to take the view that we should never rely on forecasts; everything has to be paid for. If we make a commitment, we have to find a corresponding item to fund it. I take that view as well. That is how one should run a business. It is cautious—one always assumes that there is a downside and an upside. Unfortunately, we now live in an era in which we cannot talk about downsides, because there is this “Project Fear” thing, but that is the sensible way of politics and prudence.

[Stephen Pound (Ealing North) (Lab)]

I rather doubt that the hon. Gentleman spent a great deal of his life at Labour party conferences back in the ’60s and ’70s. Had he done so, he would have recalled Barbara Castle’s blackboard—it is probably called a chalkboard now—on which she entered every single spending commitment ever agreed by the Labour party conference with two totals. Every time we made a spending commitment, we had to vire something in the other direction. Does he pay tribute, as many of us do, to the late Barbara Castle?

[James Cartlidge]

The hon. Gentleman is correct: I do not spend a lot of time at Labour party conferences. I am sure that, because he is there, it is huge fun. I know that he has a great sense of humour and so on. I never met Barbara Castle, but I am sure that it would have been a great honour to meet her. I do agree with that basic set of housekeeping accounts, which, by the way, the great Margaret Thatcher also used to believe in.

--- Later in debate ---

[Lyn Brown (West Ham) (Lab)]

I am delighted to be here today to discuss this fascinating subject—what a lovely way to spend a Friday morning!

Unlike most other taxes, VAT is paid by us all, and we all have an interest in ensuring that it is applied in the fairest and most effective way possible. As Members know, 16.8% of tax collected in 2018-19 is forecast to come from VAT, according to the Office for Budget Responsibility. With that in mind, we must weigh our words carefully. As we have rehearsed, we have to consider both the rate and the tax base of VAT, as VAT revenue goes towards the public services that most of us rely on. The significance of VAT to the Exchequer has fluctuated over the years. The total amount raised from VAT has grown over time from £57 billion in 1999 to 2000 to £122 billion in 2012-13, with the only sustained dip being in the years of the financial crisis, when VAT revenue dropped from £81 billion in 2007-08 to £74 billion in 2009-10. However, as we know, as a proportion of GDP it has increased only slightly, from 5.5% in 1999-2000 to 6.1% in 2016-17.

As we have discussed today—I think that almost every speaker has alluded to it—VAT does not affect our constituents equally. The most recent data from the Office for National Statistics shows that the poorest fifth of households paid 13% of their disposable income in VAT compared with 7% paid by the richest fifth of households. To quote the ONS,

“indirect taxes increase inequality of income.”

As we all know, different Governments have taken different approaches. Members with long memories—I see that my hon. Friend the Member for Ealing North (Stephen Pound) is behind me, and I am sure that the hon. Member for Christchurch (Sir Christopher Chope) will be included in this group—may remember that it was a Conservative Government who first introduced VAT in 1973, another Conservative Government who raised it to 15%, and yet another Conservative Government who raised it to 17.5%. It was therefore a bit of a surprise when, ahead of the 2010 election, the Conservative party spokespeople said that they had

“absolutely no plans to increase VAT”

to 20%. I think I hardly need remind the House of what happened next, or of the fact that the headline rate of the VAT has remained at 20% since the coalition Government put it there. I always like to remember the Liberal Democrats at this point. They are not here today.

[Stephen Pound]

They are not anywhere.

[Lyn Brown]

They are not anywhere today.

After considering these matters of history, let me touch on the question of which goods and services VAT is applied to. The choice of which goods and services we apply reduced rates to is political, not just technical. It is an example of the priorities we have as a society. We see that in some of the items that are exempt from VAT, such as sports activities because we want to encourage physical and mental health, and admission charges to museums, art exhibitions and education services because we think that that sort of thing is good for the education and mental health of our nation. There has been much discussion—I thank hon. Members in all parts of the House for this—about the imposition of VAT on sanitary products. When the rate was reduced by the last Labour Government, it was the lowest rate permissible under European legislation. On the other hand, my party unveiled plans ahead of the 2017 general election to charge VAT on private school fees. The money we raised could have been used to pay for free school meals for all primary school children—a policy that has already been implemented at local level by some really insightful Labour councils, including my own in Newham.

The current Chancellor was reportedly considering copying the idea—if newspapers are ever to be believed.

--- Later in debate ---

[The Exchequer Secretary to the Treasury (Robert Jenrick)]

From the heart-warming and uplifting bravery of Finn and his fellow service dogs, to VAT—such is the unique ability of the Treasury to change the mood in the Chamber. I thank my hon. Friend the Member for Christchurch (Sir Christopher Chope) for promoting this Bill and raising these issues, and all hon. Members across the House who have had the chance to contribute today. In my experience, my hon. Friend’s rather dim view of the bean-counting accountants at the Treasury is unfair to the excellent civil servants who work there. My office has a portrait of Nigel Lawson on the wall. He was one of the great Chancellors who understood the dynamic effect of simpler and lower taxes.

[Stephen Pound]

And now he lives in France.

[Robert Jenrick]

Part of the time.

I am grateful to my hon. Friends the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), and for Erewash (Maggie Throup)—not “ear wash” as it was pronounced in the previous debate by my hon. Friend the Member for South Suffolk (James Cartlidge), who is the voice of small c conservatism in this place. The hon. Member for Ealing North (Stephen Pound) made a fleeting cameo appearance in the debate to recommend Barbara Castle, who I agree was one of the great politicians of the 20th century. Modern politics might have been different if she had been able to take forward the reforms that she set about in the late 1960s. Briefly—he is no longer in his place—my hon. Friend the Member for Harborough (Neil O’Brien) set out the twin pillars that any Conservative Chancellor must balance: sound money and respect for the public finances so that we do not leave the next generation worse off than we found it, and the liberating dynamic effect of lower taxes. Every Chancellor has the opportunity to balance the two responsibly and drive the economy forward, and that is very much the context for this debate.

The Government champion small business people and entrepreneurs, who are the backbone of our economy. A simple tax system helps those individuals and the businesses they create to operate in a productive and profitable manner, as we heard from numerous colleagues across the House. We want to find opportunities wherever we can to help them move their businesses forward.

Under UK VAT rules, UK businesses must register for VAT once their total taxable turnover crosses the threshold, which is currently set at £85,000. Businesses can de-register if their turnover falls below £83,000. The Government recognise that accounting for VAT can be burdensome on small businesses, but it should not be over-estimated—our research shows that the cost to a small business of meeting its VAT responsibilities is generally around £300 a year. That is not inconsiderable, but it is perhaps not as much as some might suggest.

We want to maintain a VAT threshold that supports small businesses, and we do. As we heard from my hon. Friend the Member for Erewash, the United Kingdom’s VAT threshold is the highest in the European Union and the OECD. To put that in context, the EU average is €33,000, and $44,000 in the OECD. The German threshold is only £15,600, and ours is £85,000. We compare extremely favourably with our competitors around the world. That benefits 3.5 million UK businesses that are not required to account for or pay VAT—not half of all small businesses, but 60%. It is also worth noting the large and growing number of enterprises in the sharing economy, such as individuals taking up Airbnb businesses, generally below the VAT threshold, providing the kinds of services that might, in an era before the technology was available, be provided by VAT-registered businesses such as hotels and B&Bs.

Views on the right level at which to set the threshold are divided, despite the fact that it is, by international comparisons, very generous. Two years ago, the Chancellor asked the Office of Tax Simplification to examine the impact of making the threshold higher or lower. We did not prejudice that research; we asked the OTS to come forward with its views. Its report, published in November 2017—colleagues have quoted it today—found that the relatively high level of the threshold in the UK has a distortionary effect on business growth.

One reason for that, as we have already heard, is the “bunching” phenomenon, whereby small businesses limit their turnover to remain below the threshold. In the same way that welfare reform improves the ability of individuals to work extra hours or take a promotion, we do not want to discourage entrepreneurs from taking on an extra client, expanding their business or growing their sales. The bunching effect is significant, and raising the threshold somewhat, for example to £100,000, would not eliminate it; it would just move the problem further up the chain.

As a result of that report, the Chancellor committed to explore whether the design of the threshold could better incentivise growth. He launched a call for evidence in March last year, to understand the effects of the threshold on small businesses and ways of easing the burden once they become VAT-registered. During the call for evidence, businesses raised concerns, not dissimilar to those we have heard today, about the administrative and financial implications of registration, but there was no clear consensus on reform. That was not obfuscation of the kind alluded to by my hon. Friend; there was simply no clear answer on how to proceed. Numerous businesses wanted the threshold to be increased, and numerous wanted it to be decreased. The Chancellor therefore announced that the Government would maintain the threshold at its current level of £85,000 until March 2022, taking a balanced approach, with the UK continuing to lead the EU and the OECD in support for small businesses in this manner.

Holocaust (Return of Cultural Objects) (Amendment) Bill

Stephen Pound Excerpts

2nd reading: House of Commons
Friday 8th February 2019 Commons Chamber

[Stephen Pound (Ealing North) (Lab)]

I have no doubt that I speak with the approval of the entire House, and far beyond, in heartily paying tribute to the right hon. Member for Chipping Barnet (Theresa Villiers) for introducing this crucial legislation, particularly at this of all times. It is noteworthy that one of her Barnet predecessors—although not a previous Member for her constituency—Andrew Dismore, who was a regular attender on Friday mornings, also spoke with great passion about the return of the Parthenon marbles, and I have no doubt that he would have been here to support the Bill. It is also noteworthy that a legislative consent motion has been received from the Scottish Parliament, which shows the national support. We all feel the same.

The right hon. Lady spoke intensely powerfully about the emotional impact of objects. One of the things stolen from the victims of the holocaust that we can never return is their lives, or their hopes, their dreams, their culture, their community and their ambition. That can never be returned, and that stain on humanity will always be there, deep and dark, but what we can do is acknowledge the looting, the theft and the appalling way in which these priceless objects—many of them of religious significance—were ripped from those households and, in some cases, exhibited in the homes of the temporary victors within the Nazi party.

Imagine the agony of someone seeing their own cultural artefacts, perhaps a menorah or some other item of great symbolic or religious significance, being exhibited as a spoil of what was perceived to be a war. The pain must have been almost unendurable, which is why we in this country have to do what we can, with the support of our museums and all the cultural community, to return these items from whence they should never have been taken. Is it not a shame that we cannot legislate beyond these shores? Throughout the world there are many, many countries that still hold these artefacts and objects, which should be returned.

As we see in the reports of the Simon Wiesenthal Centre in the ’50s and ’60s, which list the number of paintings, we are talking not just about famous ones—the Rembrandts, Kandinskys and Chagalls and the ones we know about—but about many smaller paintings, many of which are family portraits. What could be more cruel than to have the portrait of a deceased relative, someone who had died in Auschwitz-Birkenau or in another camp—that painting, that memory, that link with that life—taken away and somehow treated as a piece of art that has a monetary value, not its spiritual and emotional value?

I find myself agreeing very much with the right hon. Member for Chipping Barnet on many occasions. She was a most distinguished Secretary of State for Northern Ireland, and when I held a minor office on the other side, I never had anything less than utter respect for her. That respect has grown even more today, but if the word “respect” is to be used in the Chamber today, it must be extended to those of the Jewish community and those Jewish relatives—the relatives of the holocaust. It must be extended to those people who suffered so grievously. We must show them not just the emotional respect that they are entitled to demand, but tangible respect, where we say, “We will do all we can to return to your home, to your hearts, to your hearths these objects that should never, ever have been taken away.” These objects are not stone, canvas, metal or paint—they are culture. They are the cultural embodiment of that community. They are the atoms that go to create that community. They are the very indication of what that community was, is and shall forever be.

Let us give the right hon. Lady a fair following wind with her Bill and let us spread the message even further, beyond these shores, that what we do today should be emulated throughout the world, in recognition of, and in some pale, minor recompense for, the greatest and most appalling crime the 20th century saw.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Mims Davies)]

It is an honour to speak at the Dispatch Box on this important Bill, and to follow the Opposition spokesman, the hon. Member for West Bromwich East (Tom Watson). In the poignant words at the end of his speech, he spoke about a loss of culture being equated with the loss of humanity. The last time I spoke at this Dispatch Box, it was on discrimination in sports and on the fact that ugly acts of hatred are not welcome in sport. Such acts are not welcome in any part of our society or any of our political processes. The Government absolutely recognise that and will stand up for people subjected to such vile hatred.

There is therefore good reason to come together to support the very thoughtful words in the introduction from my right hon. Friend the Member for Chipping Barnet (Theresa Villiers). With moving passion, she made a thoughtful speech, and I would like to recognise the broader work that she does. She mentioned that 6 million souls were lost to families and communities in the holocaust, and that stark reminder was echoed by the hon. Member for Ealing North (Stephen Pound). My hon. Friend the Member for Chichester (Gillian Keegan) spoke about a constituent of hers saying that there was no time limit on righting these wrongs. We also heard the personal story of the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard).

I thank my hon. Friend the Member for Torbay (Kevin Foster) for his, as ever, very thoughtful words. He spoke about remembering the impact of the aim to annihilate and subjugate, how culture was not to be supported and how families’ precious items were part of the murderous demolition. There was another thoughtful speech from my hon. Friend the Member for Erewash (Maggie Throup) in support of this important Bill, and we heard from my hon. Friend the Member for North Devon (Peter Heaton-Jones) about the physical connections and preciousness of family objects. That is why the Government support this Bill, and we see it as an absolute imperative to do so. The Government’s view remains that it is correct to right the wrongs that took place in the Nazi era, and when it comes to cultural objects lost in such circumstances, we must provide fair and just solutions for families who suffered persecution.

As we have heard, an estimated 20% of Europe’s cultural treasures were stolen or plundered by Nazi Germany, mostly from Jewish families, and more than 100,000 works remain lost and are presumed to be in private collections. Despite their valiant efforts, the monuments men—a band of art historians, museum curators, professors and other unsung soldiers and sailors in the allied armies’ monuments fine arts and archives sections—could not bring everything home to those who wanted it. A massive volume of cultural artworks was lost, including works by Vermeer, van Gogh, Rembrandt, Raphael, Leonardo, Botticelli and many other artists.

[Stephen Pound]

I apologise for interrupting the Minister who, as ever, speaks powerfully and from a well-informed position. Given her comments about the immensity of the task, does she recognise that today we are able to send out a message to victims of the other genocides? I think particularly of the Armenian genocide of 1915, when an entire community was treated just as foully and appallingly. Does she agree that we could send out a signal to the wider world that we are finally seeking some recompense for those sins and crimes of the past?

[Mims Davies]

Today, we are focused on a particular issue, but we are speaking about an extremely solemn area. I served on the Cultural Property (Armed Conflicts) Bill Committee, and the Bill rightly became an Act. We must look more broadly, because throughout history so much culture has been lost on a truly astronomical scale, and we must send a message that there is no time limit when people have suffered injustices. It is right to continue on our mission of returning looted art, which is no less important now than it was then. As we have heard, there is a clear consensus across the House that we want to do the right thing, and we in the UK are sending out a message because we have a perfect piece of legislation that enables us to do that.

The Holocaust (Return of Cultural Objects) Act 2009 allows 17 cultural institutions in the UK to return objects lost between 1933 and 1945, and it enables them to do that effectively, by using the appropriate advisory panel. Today, we heard about the importance of having a fair and just way of returning to people those cultural objects lost during the Nazi era. The institutions covered by the 2009 Act are statutory bodies that would otherwise be prevented from doing that by Government legislation, and therefore returning those objects would be too difficult. The Act from 10 years ago ensures that we can continue to reunite objects with their claimants, alongside the advisory panel, and supported by the Secretary of State.

We heard about the Beneventan missal, which was the first item to be returned under the 2009 Act. That fine example of a 12th-century manuscript was in the possession of the British Library, and a claim was first considered by the Spoliation Advisory Panel in 2005. The panel concluded that the manuscript was looted and should be returned to its rightful owner, and for that to be possible, it recommended the introduction of legislation to permit the restitution of such objects. In the absence of such legislation at the time, the British Library sought to agree a long-term loan of the missal to Italy. Only after the introduction of the 2009 Act was the claim referred back to the panel, and the missal was finally returned to the place where it had been lost after the allied bombing in September 1943. The return of the missal became highly symbolic for the city of Benevento and its cathedral, and they were delighted to have it back. It is now kept in the chapter library, attached to the cathedral, which was rebuilt after damage sustained during the war.

The principle of correcting past injustices, as exemplified in this case, has not been affected by the passage of time. In fact, arguably that principle is strengthened as memories start to fade, as we have heard today. It is not necessarily easy to make sense of what happened more than 70 years ago. With fewer survivors among us, we must rely increasingly on written testimony and second-hand accounts.

On Holocaust Memorial Day this year, my Department was incredibly fortunate to hear the personal testimony of Harry Bibring, a holocaust survivor who told us how his parents sent him and his sister, who were both in their early teens at the time, on the Kindertransport to England, along with 10,000 other children aged from nine months to 16 years. Sadly, they never saw their parents again. There are many such stories still to be told. We must continue to listen and seek redress where we can. The Bill is the right legislation to allow that process.

Today, Sir Nicholas Serota, director of the Tate from 1988 to 2017, and the National Museum Directors Council’s lead on spoliation from 1998 to 2017, issued the following statement:

“The UK has been an international leader in responding to the challenges associated with Spoliation claims. The creation of the Spoliation Advisory Panel in 2000 established a model and a procedure that has been adopted by other countries. In recent years, new claims have become less frequent, but there is a strong moral case to remove the ‘sunset’ clause that provides for a time limit on cases being considered. It is important that potential claimants should not feel that the door is being slammed in their face.”

It is worth noting that claimants are unlikely to be able to pursue a legal claim for the return of their property through the courts. Referral to the Spoliation Advisory Panel is, in nearly all cases, the sole remaining route for pursuing the return of cultural objects lost in these circumstances. Just last week, the Government announced that the UK has joined four other European countries—Austria, France, Germany and the Netherlands —to form a new network for increasing international co-operation on the return of works of art looted during the Nazi era. The UK has always sought to lead by example, so it is absolutely right that we all support the Bill.

Finance (No. 2) Bill

Stephen Pound Excerpts

Committee: 1st sitting: House of Commons
Monday 18th December 2017 Commons Chamber

With the lack of housing supply and the decrease in home ownership, we have seen the number of households in private rented accommodation soar to more than 5 million, and the figure is set to rise to 6 million by 2021. That would not be a problem if private landlords were forced to make their homes fit for human habitation and if, in an era when we are moving nearly 8 million households on to universal credit, we had landlords who had faith in the Government’s universal credit system. Landlords’ right of redress to reclaim rent arrears has been removed under universal credit, so it is no wonder that 73% of them do not feel comfortable that the Department for Work and Pensions will enable them to recoup their arrears.

[Stephen Pound (Ealing North) (Lab)]

I hope my hon. Friend will forgive me for interrupting her flow. She is making a precise and pertinent point. Would she not wish to encourage all people of good heart here present to support the Bill that has been presented by my hon. Friend the Member for Westminster North (Ms Buck) on this very subject?

[Ruth George]

Absolutely. I hope that Members on both sides of the House will give their encouragement to that Bill so that we can make homes fit for human habitation.

On the subject of universal credit, whether or not homes are fit for human habitation, unfortunately landlords are not prepared to rent. A representative of a lettings agency came to my surgery just last week and showed me the books for its tenants. At the moment, 20 tenants are on universal credit—we still have not seen it rolled out—of whom 18, or 90%, are in huge arrears. Nine of them—45%—have had to be evicted because landlords cannot get any redress for arrears. They cannot afford to see those arrears build up. Now that they no longer claim mortgage interest relief, they know that they will have to pay a big tax bill come the end of January, so they need to ensure that they can make their homes pay.

This Government’s housing policy is simply racking up disaster on disaster. Homelessness is doubling and home ownership is falling, and universal credit is yet to come. We needed big ideas from the Chancellor, as the Secretary of State for Communities and Local Government told him in no uncertain terms. We see nothing in this Bill but tinkering at the edges that will do nothing to help solve the enormous housing crisis in this country.