Horizon: Compensation and Convictions

Debate between Alan Brown and Kevin Hollinrake

Monday 8th January 2024 Commons Chamber

[Kevin Hollinrake]

My hon. Friend is right; rapid and fair compensation is exactly what we are seeking to deliver. It has to be seen to be fair. We also need an easier route to overturning convictions, and we are determined to take that forward, as well as individuals being held to account. He raises an important point on the judicial system, and potentially the trust we place upon computer records seems to have played a part in this case. That is a lesson we potentially need to learn across the legal framework, and I know the Justice Secretary has that in mind.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Minister is aware that this is not just about those who were wrongly accused and convicted; it is also about those who were falsely accused, were not prosecuted but who still experienced consequences. I have a constituent who believes she was a victim of Horizon false accusations. She lost her post office franchise as a consequence, but the associated pressures led to her losing her main business as well. Can the Minister confirm whether she would be eligible for compensation? How does she go about accessing compensation? For similar victims of false accusations without prosecution who sadly have died, how does the deceased’s family access compensation?

[Kevin Hollinrake]

There are three compensation schemes for good reason—it is not ideal to have three different schemes, but we are where we find ourselves. We have the Horizon shortfall scheme, the group litigation order scheme and the overturned conviction scheme, and it sounds as though the hon. Gentleman’s constituent would fit into the Horizon shortfall scheme and should be able to apply to that. I am happy to make sure that he is aware of the route that his constituent can take. In assessing financial loss, consequential losses are a part of that assessment, and it sounds as though there is a case for consequential loss in that particular case. It can certainly be something that financial compensation takes into account. With regard to the families of deceased individuals, they can still claim to the same compensation schemes and should be compensated in exactly the same manner and to exactly the same degree.

Autumn Statement Resolutions

Debate between Alan Brown and Kevin Hollinrake

Thursday 23rd November 2023 Commons Chamber

[Kevin Hollinrake]

I know that the hon. Gentleman has campaigned on this for some time and I have great regard for the work he does. It is worth him reading the “Payment and Cash Flow Review”, which was published yesterday alongside the autumn statement. It includes some references to retentions, to which he refers. There are other measures from the small business commissioner as well as more transparency on late payments. I am happy to engage with him further on this issue.

Although taxes pay for vital public services, this Government are clear that they must not stifle business owners’ ambitions. Quite simply, our economy relies on those ready to take risks and to innovate. Time and again, these entrepreneurs tell me that a simpler tax system would make life easier for them. This autumn statement will not just reduce tax but reform it, while putting more money into employees’ pockets.

The abolition of class 2 national insurance will save the average self-employed person £192 a year. Alongside the 1% reduction in the rate of class 4 national insurance, some 2 million self-employed people will be saving an average of £350 a year from next April.

In addition, from next year we will merge the existing research and development expenditure credit and the small and medium-sized enterprise R&D scheme. This will allow companies to claim back a proportion of their spending in this area through their tax bill, further simplifying the system and boosting innovation.

Finally, and very significantly, we have unveiled game-changing plans to make full expensing permanent. As the Chancellor set out yesterday, expensing aims to stimulate investment by giving larger companies £250,000 off their tax bill for every £1 million they invest. It was introduced, as hon. Members know, by the Chancellor in the spring and was set to last for three years, but it has been such a success, and the calls for it to continue have been so loud and clear that yesterday the Chancellor made it a permanent policy. This is the largest single tax cut in modern British history. It means that we now have not just the lowest headline corporation tax rate in the G7, but the most generous capital allowances too. That is hugely appealing to any business looking for a home in a global market.

The Office for Budget Responsibility tells us that this move alone will increase annual investment by around £3 billion a year, and by £14 billion over the forecast period. We are able to do this only because we have met our borrowing rules early, have more than halved inflation, and are seeing our debt go down every year.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Going back to the tax regime in general, one of the measures in the autumn statement—line 50 of table 5.1—was entitled “HMRC: Investment in Debt Management Capability”. According to the statement, investment of £160 million into the debt management facility of His Majesty’s Revenue and Customs will somehow unlock £1 billion a year in debt recovery. What is that investment, why was it not undertaken previously and how will it realise an extra £1 billion of income for HMRC?

[Kevin Hollinrake]

HMRC has a responsibility to be understanding and compassionate when it comes to business difficulties, but if debts are owed to the taxpayer it is only right that we seek to return them. Many more businesses may have that difficulty because of difficulties in recent years, but if the hon. Member is implying that we should not chase debts owed to the taxpayer—

[Alan Brown]

indicated dissent.

[Kevin Hollinrake]

Perhaps we should have a conversation offline about that. I think it makes perfect sense to invest in reclaiming debt owed to the taxpayer.

I wish to turn now to another of my Department’s spending measures: the advanced manufacturing plan. The UK is a global advanced manufacturing hub. Recently—this is not a statistic that is often quoted in the media—we overtook France to become the world’s eighth-largest manufacturing nation. What is not to like about that? While we have a strong story to tell, there is fierce global competition. Already my Department has been instrumental in attracting significant global investment to our key future-leaning industries, including Tata’s £4 billion gigafactory and a £600 million investment to build the next generation of electric Minis.

Our £4.5 billion advanced manufacturing plan will help to safeguard the sector’s future and seal our reputation as the best place to start and grow a manufacturing business and to invest in this industry. It includes over £2 billion for the automotive industry—the single biggest Government investment ever in the UK sector—alongside £975 million for aerospace and £960 million for a green industries growth accelerator to support clean energy manufacturing. In short, the plan will ensure that our manufacturing success story can begin its most exciting chapter yet.

This is a Government who know business. We are for business because we are from business. This is a Government who believe in business. This is a Government who back business. Our autumn statement could not be a clearer illustration of those facts. Have no doubt that it will provide our most promising companies with the capital, certainty and support that they need to thrive long into the future. That is why I commend its measures to the House.

Strikes (Minimum Service Levels) Bill

Debate between Alan Brown and Kevin Hollinrake

Consideration of Lords message
Monday 17th July 2023 Commons Chamber

[Kevin Hollinrake]

As I have said, we intend to consult with all parties to make sure that they have a chance to comment on what reasonable obligations a union might be required to take. I think that it is pretty straightforward, and, indeed, unions will be familiar with the code of practice on picketing that was issued under section 203 of the 1992 Act. This code will be subject to statutory consultation, including consultation with ACAS, and to the approval of Parliament. The consultation will give trade unions, employers and any other interested parties an opportunity to contribute to practical guidance on the steps that a union must take in order to make it as practicable, durable and effective as possible.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

If the Minister is so willing to consult, why is he rejecting an amendment which confirms that there should be a consultation?

[Kevin Hollinrake]

We are not happy with a number of other parts of the amendment. We are proposing a measure that we have already proposed in earlier debates. It is, of course, up to those in the other place to decide how they take their amendments forward, but we believe that this is fair. We are satisfied that it is an effective way to provide for clarity, and that the individual consultations for specific minimum service levels in relevant services required by Lords amendment 2D are not needed. The real impact of the amendment would be a delay in the implementation of minimum service levels, given the additional and lengthy consultation and parliamentary requirements which we strongly suspect are its purpose. Unnecessary delays in the protection of the lives and livelihoods of those whom we have been elected to represent cannot be justified.

Strikes (Minimum Service Levels) Bill

Debate between Alan Brown and Kevin Hollinrake

Consideration of Lords message
Wednesday 21st June 2023 Commons Chamber

[Kevin Hollinrake]

There are three motions before the House. I am grateful for the fact that both Houses have reached agreement on the appropriate territorial application of the Bill, but I regret that we have not yet reached agreement on some remaining issues. I must once again urge the House to disagree with the Lords amendments before us. Again, the Bill has been amended in ways that would delay implementation or seriously limit the operation of minimum service levels. That would mean that we could not provide the all-important balance between the ability of unions and their members to strike and the ability of the wider public to access, during periods of strike action, the key services that our country needs. I will briefly summarise for the House the reasons why the amendments remain unacceptable to the House.

First, through Lords amendment 2B, the noble Lords seek to introduce additional consultation requirements and new parliamentary scrutiny processes. We recognise the importance of ensuring that the public, employers, employees, trade unions and their members are all able to participate in setting minimum service levels. That is why we ran consultations on applying MSLs to ambulance, fire, and passenger rail services on that basis. The Government maintain that the Bill enables the appropriate consultation to take place, and we are confident that the affirmative procedure will allow Parliament to conduct proper scrutiny of secondary legislation.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Proposed new section 234F of the Trade Union and Labour Relations (Consolidation) Act 1992, inserted by the schedule, says,

“the Secretary of State must consult such persons as the Secretary of State considers appropriate.”

Does that not mean that there is no obligation to consult at all? The Secretary of State can decide that no one needs to be consulted. Does that not show the importance of the Lords amendment?

[Kevin Hollinrake]

If there is anybody whom the hon. Gentleman thinks was not able to contribute to the consultation, I ask him to please let me know, but it was open to anybody to make a submission to the consultation, and all those submissions will be properly assessed by Ministers and officials.

I turn now to the Lords amendments that would restrict the ways in which we can ensure that minimum service levels are achieved, Lords amendment 4B still leaves employers powerless to manage instances of non-compliance when workers strike contrary to being named on a work notice.

--- Later in debate ---

[Kevin Hollinrake]

I will make a little progress, but I will make sure that both the hon. Member for Kilmarnock and Loudoun (Alan Brown) and the hon. Member for Glasgow South West (Chris Stephens) get a chance to make their points.

The Bill takes the same approach as to any other strike action that is not protected under existing legislation. Lords amendment 5B may suggest that the other place accepts that trade unions should have a role to play in ensuring that minimum service levels are met, but in reality under, that amendment, whether and how the unions encouraged their members to comply with work notices would be at their discretion. Unions would be able to induce people to strike as normal and take steps to undermine the achievement of minimum service levels. That is clearly directly counter to the objectives of the policy.

[Alan Brown]

The Minister has said that the consultation has already closed, but the whole point of the Lords amendment is to oblige the Government to consult on draft regulations when they bring them forward and to publish impact assessments. If the consultation has already closed, that proves that there will be no transparency going forward, does it not?

--- Later in debate ---

[Kevin Hollinrake]

As always, I entirely agree with all the points that the hon. Gentleman has made. Of course strikes should be a last resort, and workers should be able to take industrial action when they feel their voices are not being heard. I do not think there is anything in the Bill that cuts across that. Hon. Members may disagree, but that is our position, and it is a position we have maintained throughout the passage of the Bill.

[Alan Brown]

Will the Minister give way?

[Kevin Hollinrake]

No, I have given way twice to the hon. Gentleman.

The Government maintain that there must be a responsibility for unions to ensure that their members comply. Without that, and without any incentives for employees to attend work on a strike day when identified in a work notice, the effectiveness of the legislation will be severely undermined. Unfortunately, I do not consider that these amendments are a meaningful attempt to reach agreement. I fear that we are having a somewhat repetitive debate that is delaying us getting on with the important business of minimising disruption to the public during periods of strike action, and I encourage this elected House to disagree with the amendments.

--- Later in debate ---

[Kevin Hollinrake]

Any person who is legislated for in these measures should be able to go on strike, subject to minimum service levels. It is quite clear, and we have been consistent all the way through.

In response to the hon. Member for Kilmarnock and Loudoun (Alan Brown), our objection to the amendments is the delay that they will cause. We want to ensure that people can go about their daily lives. The right hon. Member for Hayes and Harlington (John McDonnell) raised some points about reasonable steps. Unions will not somehow have to compel people to go to work; we are asking them to undertake reasonable steps to ensure that people comply with a work notice. In fact, we were willing to set out in the Bill what those reasonable steps would be, but the right hon. Gentleman’s counterparts in the other place rejected such measures.

The hon. Member for Leeds East (Richard Burgon) talked about the independence of unions; of course we respect that. It is true that if a union fails to take reasonable steps, the strike would be unprotected, as it would if the trade union failed to meet other existing requirements in the Trade Union and Labour Relations (Consolidation) Act 1992, such as balancing requirements. This is not a departure from the existing position.

[Alan Brown]

The Minister keeps talking about wrecking amendments, but how is obliging an employer to ensure that an employee has received a work notice a wrecking amendment?

[Kevin Hollinrake]

I draw the hon. Gentleman’s attention to other points in Lords amendment 4B: proposed new section 234CA(4) of the 1992 Act is a wrecking amendment because it says there is no contractual obligation for someone to comply with a work notice. That drives a coach and horses through the Bill.

The hon. Member for Glasgow South West (Chris Stephens) talked about how other jurisdictions deal with requiring people to go to work under a work notice. He may be aware that in France, people can be subject to criminal charges if they do not comply with a work notice. These are proportionate measures. We must make the view of the elected House as clear as possible, and avoid any further delay to fulfilling our duty to protect the lives and livelihoods of those we represent.

Question put, That this House disagrees with Lords amendment 2B.

Strikes (Minimum Service Levels) Bill

Debate between Alan Brown and Kevin Hollinrake

Consideration of Lords amendments
Monday 22nd May 2023 Commons Chamber

[Kevin Hollinrake]

This Bill was introduced with the intention of balancing the ability to strike with the rights and freedoms of the public, by applying minimum service levels on strike days to protect the lives and livelihoods of the public. We should not ignore the fact that the economic costs of these strikes have been estimated at around £3 billion, and much of that impact falls on business sectors that are already facing difficulties, such as the hospitality sector.

The Bill brings the UK into line with many other countries: Spain and France have statutory minimum service levels in ambulance services and they also, along with Belgium, have statutory minimum service levels in fire services. In some countries, such as the United States of America, Australia and Canada, some services are prohibited from taking any strike action altogether. However, the Government are not suggesting we go that far.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

In the European countries the Minister mentioned where there is minimum service provision, is it not the case that that minimum service provision is agreed by negotiation, and that workers there do not get sacked for striking?

[Kevin Hollinrake]

All jurisdictions differ, and the way that minimum service levels are set differ. Some are set by the Government; we have done that, through consultation with stakeholders, and we will decide what the right level of minimum service will be. All jurisdictions differ somewhat, but the key point is that in many jurisdictions there are restrictions placed on the ability to strike.

--- Later in debate ---

[Kevin Hollinrake]

I am grateful to my hon. Friend for that point. He has raised it with me offline. I am of course very happy to have a proper discussion with him about that, and I know that Transport Ministers would also be happy to.

[Alan Brown]

On making unions responsible for forcing workers to comply with work notices, does the Minister not understand that unions work for and on behalf of their members, and reflect their wishes? If their members wish to go on strike, how is it just or moral to force unions to make their workers break that strike?

[Kevin Hollinrake]

There is a balance to be struck, and what I think is just and moral is ensuring that public services are maintained. That is the balance that we are trying to ensure. We are not at all saying that people cannot strike; we are saying that a minimum service level should be maintained during the strike.

Lords amendment 5 would mean that there were no consequences for trade unions that failed to meet their responsibilities. If we remove the consequences for trade unions that fail to take reasonable steps, we will be far less likely to achieve minimum service levels, as trade unions might attempt to persuade workers not to comply with work notices, and to take strike action instead.

Strikes (Minimum Service Levels) Bill

Debate between Alan Brown and Kevin Hollinrake

Committee stage
Monday 30th January 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kevin Hollinrake)]

It is a pleasure to serve under your chairmanship, Mr Evans.

It is well known that the first and foremost job of any Government is to keep the public safe. Every one of us in this Chamber will know of people who have been impacted by industrial action. Every one of us will know constituents who work hard and expect access to essential and life-saving services when they need them. It is clear that that is not happening in all cases. That is why this Government are taking proportionate and sensible steps through the Bill. Our position, which has the support of the majority of our constituents—in a recent YouGov poll, 56% of those polled said that they support the legislation—is that we need to maintain a reasonable balance between the ability of workers to strike and the ability to keep the lives and livelihoods of the British public safe.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Minister has started with a red herring about keeping people safe. Can he explain, then, why teachers and education are included in the Bill?

[Kevin Hollinrake]

Clearly, there is a wider context for children. It is about services and safety—those are both contexts in this—as well as livelihoods. All those things are affected when people do not provide a minimum service level.

Prepayment Meters: Self-Disconnection

Debate between Alan Brown and Kevin Hollinrake

Thursday 15th December 2022 Commons Chamber

[Kevin Hollinrake]

Other Members have made that important point, and I will come to it, but I had better make some progress, because you asked me to finish in about four minutes, Madam Deputy Speaker, which I shall endeavour to do.

We believe that there is a role for prepayment meters. Ofgem rules already require energy suppliers to offer a prepayment service only when it is safe and reasonably practicable to do so, and that applies whether a meter is smart or traditional. There are clear obligations on energy suppliers regarding customers in payment difficulty, and a prescribed process for occasions on which a warrant is required. That point was raised by the hon. Member for Kilmarnock and Loudoun (Alan Brown) and, indeed, by the hon. Member for Glasgow North East.

There are clear expectations for suppliers in respect of the steps to be taken before they instal a prepayment meter owing to debt, or switching a smart meter from credit to prepayment mode. Those steps include conversations to discuss debt repayment, budget management and energy efficiency measures, and referrals to debt advisers and charities. Before a prepayment meter is chosen as the debt repayment pathway, its safety must be assessed, as well as the customer’s ability to pay. Suppliers must give their customers seven days’ notice before installing a prepayment meter or switching a smart meter to prepayment mode. Ofgem recently published a regulatory expectations letter, in which it set out its expectation that suppliers will ensure that prepayment meters are safe and reasonably practicable in every case.

I would like to highlight some of the circumstances in which it is not deemed safe to have a prepayment meter, which include having specific disabilities or illnesses, or having children under five, as has been set out. Indeed, the hon. Member for East Lothian (Kenny MacAskill) raised that point. It is absolutely right that we provide support for those who are most in need.

The hon. Member also raised the issue of social tariffs, which were introduced in 2008 as part of a voluntary agreement between the Government and energy suppliers. They were replaced by the current mandated warm home discount scheme in 2011. This has improved outcomes by providing consistent and transparent benefits, and by utilising data matching to improve targeting. Clearly, it is important that we continue to review our current provisions and see what else might be done to help people in those circumstances.

[Alan Brown]

The Minister almost seems to be making an argument that the warm home discount scheme has been more successful than the social tariffs. Why then has the Department for Business, Energy and Industrial Strategy confirmed that it is considering revisiting social tariffs? I do support that, but he seems to be making a contrary argument.

[Kevin Hollinrake]

I do not think it is a contrary argument. We should always look to improve our rules. We believe it is an improvement on the past scheme, but there may be further improvements we can make. That is the right iterative process to take.

Britain’s Industrial Future

Debate between Alan Brown and Kevin Hollinrake

Tuesday 15th November 2022 Commons Chamber

[Kevin Hollinrake]

The hon. Gentleman made some good points about the opportunities on Teesside. Carbon capture and storage and Net Zero Teesside represent a huge opportunity and something that is on the Government agenda. We are also looking into the life sciences sector in Teesside and the first large-scale lithium refinery in the country, with 1,000 jobs in construction—all these things are happening on Teesside. I recognise his point on the steel sector, but all this carbon capture and storage may well form part of the future for Teesside.

The hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) made some interesting points about buying British. I think everyone in this House would agree on the need to buy British, but does he accept that, that as the trade and co-operation agreement and others open up EU markets to UK companies, we cannot on that basis expect to close our markets to EU countries, or to countries from around the world? We believe in international trade—[Interruption.] Well, I also believe in buying British. I share his enthusiasm for the Government’s £206 million investment in a UK Shipping Office for Reducing Emissions—the biggest Government investment ever in that sector.

Manufacturing has been at the heart of our economy for centuries—the shipbuilding, automotive and steel industries perhaps more than any others. In 2021, manufacturing contributed more than £205 billion gross value added to the UK economy, which is the fourth highest figure in Europe. Manufacturing, which is responsible for almost half of UK exports, has a vital role to play in driving innovation, job creation and productivity growth beyond the bounds of the M25. The hon. Member for Kilmarnock and Loudoun (Alan Brown) will be pleased to note that 95% of manufacturing jobs are outside London.

[Alan Brown]

Does the Minister accept that although we cannot necessarily stipulate to buy British, procurement can be managed by assessing community benefit and local content as part of quality assessments, so that it is not a case of price takes all? That is not happening with the Government’s bus procurement strategy, and it did not happen long enough in the CfD auctions, either. Is that not something that the Government need to address?

[Kevin Hollinrake]

The hon. Gentleman makes a fair point. Certainly, the Cabinet Office is looking at procurement strategy now, and nudges could be made. My point is that we cannot expect other markets to open their doors to our businesses if we close our doors to theirs.

From Sunderland to south Wales, industries are at the heart not just of our economy, but of our communities. Those industries are integral to our economic policy, and the Government are ensuring not just that they are alive and kicking, but that they prosper in the 21st century. Together, Government and business are laying the foundations for an economy that is fit for the future. By delivering the new infrastructure, industries, skills and jobs that we will need to meet the demands of the day, we can deliver a future for all that is more sustainable, secure and prosperous. Across the country, we are already seeing stories of success.

Let me begin with shipbuilding. The UK has always been and always will be a seafaring nation. Today, the shipbuilding industry supports 46,000 jobs in places such as Portsmouth and Rosyth, and adds £2.4 billion to the British economy. I am glad that the hon. Member for Kilmarnock and Loudoun welcomes today’s £4.2 billion order for five Type 26 frigates, which will be built in Glasgow.

Earlier this year, we refreshed our national shipbuilding strategy, unlocking more than £4 billion in investment for maritime firms from the Solent to the firth of Forth. We are improving access to finance by providing credit for UK ship buyers through a home shipbuilding credit guarantee scheme, and we are working closely, through the shipbuilding enterprise for growth, to raise the productivity and competitiveness of UK shipyards.

This is not just a story of success at sea; we are leading the way on land, too. We are the sixth largest automotive producer in Europe, and the sector is one of the engines driving forward our plans for green growth in every corner of the country. Last year, Nissan announced £1 billion in investment to create a world-first electric vehicle hub in Sunderland, safeguarding 6,200 existing jobs and creating more than 1,000 new ones. We know that there is some way to go, but this Government are committed to putting the pedal to the metal and doing all we can to accelerate our efforts.

Many Members quite rightly talked about steel. The Government recognise the challenging international economic environment in which the steel industry has to operate, including in relation to overcapacity. Above all else, we understand the vital role that steel occupies as a cornerstone of the UK economy, underpinning domestic industries and local communities. Over the past nine years, the Government have committed £800 million towards electricity costs through the energy intensive industries compensation scheme, on top of the energy bill relief scheme. Of course, we continue to consider what can be done to ensure that the steel industry is competitive, in fair terms, with other nations.

On critical and advanced materials, we are investing in the materials of the future. That is why we published in July our first ever critical minerals strategy, which sets out our plan to secure our supply chains. We are boosting our domestic capabilities in the production and processing of critical minerals, building a circular economy where they can be recovered, reused and recycled.

The story really could go on, but I think I have made my point. This country has a rich industrial history that goes back centuries. Our world now looks very different from the 18th century, but one thing remains the same: that particularly British spirit of innovation and enterprise. This Government can and will play their part so that no community or corner of this country is left behind.

Question put and agreed to.

Resolved,

That this House condemns the Government for its lack of policy on British industry including the steel, automotive and shipbuilding sectors; regrets that after 12 years of Conservative Government, the UK has the lowest levels of business investment in the G7; recognises the large number of high-quality jobs created by British industry, as well as its importance to achieving the UK’s net zero targets; calls on the Government to recognise the unique challenges and opportunities in each of these sectors; and therefore further calls on the Secretary of State for Business, Energy and Industrial Strategy to urgently bring forward plans to ensure these sectors are supported and to avert job losses that will have a devastating impact on communities and the wider economy.