Oral Answers to Questions

Debate between Bill Esterson and Stephen Williams

Monday 20th January 2014 Commons Chamber

[Stephen Williams]

I do not think that it is for Ministers to give advice to individual households—therein trouble often lies—but I will say that it is up to local authorities and housing associations to help their tenants with their budgeting as much as possible, in order to deal with welfare reform and other cost pressures.

[Bill Esterson (Sefton Central) (Lab)]

Condensation, damp and mould in social housing are now at a level that has not been reported by social housing experts for many years. Does the Minister not appreciate that what has changed the situation is the bedroom tax, along with other cuts in the income of people who live in those properties?

[Stephen Williams]

Plenty of things have changed since 2010, but this Government are still giving huge priority to bringing homes up to a decent standard. In the next spending review, we are allocating money for that purpose until 2017. By that stage, 99% of houses owned by housing associations, and almost as many local authority houses, will be up to the decent homes standard.

High Streets

Debate between Bill Esterson and Stephen Williams

Wednesday 16th October 2013 Commons Chamber

[The Parliamentary Under-Secretary of State for Communities and Local Government (Stephen Williams)]

The hon. Member for Corby (Andy Sawford) and I are both newbies in our roles, so I welcome him to his role. I will decline his blandishments, which have been offered to me on many occasions by an Opposition spokesman, seductive as they may be in part. That is often the way with Opposition motions, and I have spoken on many of them over the past three and a half years. Although there are some good things in what the motion says and I agree with some of it, there are obviously areas where we cannot agree.

There have been 13 Back-Bench speeches. It is the second time in the past two years or so that the House has had the opportunity to debate high streets. I spoke in a Back-Bench debate on the high street called by my hon. Friend the Member for Nuneaton (Mr Jones) in January 2012. On that occasion 50 Back Benchers spoke in the debate so we know that there is huge interest in the issue across the House. However, given that this was an Opposition-day motion, there are rather more Labour Members in the Chamber as we are coming up to the vote than there have been throughout the entire debate. Considering that it was their own motion, it is disappointing that more Labour MPs chose not to take part.

It is a particular pleasure on my first outing at the Dispatch Box to be speaking about high streets. If I may be parochial for a moment, my constituency, Bristol West, has the greatest high street in England running right through the middle of it—the Gloucester road, the longest stretch of independent businesses in the country. At the west of my constituency there is Clifton village, full of independent shops and boutiques, and in the east of my constituency is Stapleton road. Rather as the right hon. Member for Lewisham, Deptford (Dame Joan Ruddock) said of her constituency, Stapleton road in my constituency is in one of the 10% most deprived census enumeration districts in England, but it is a thriving high street and I pay tribute to all my constituents there, particularly the new arrivals from Somalia in recent years, who have opened small businesses in that street.

We do not have in that high street the problems of betting shops that the right hon. Lady mentioned. She was the first of many speakers who mentioned that problem, to which the Opposition motion refers. The general point that was made was that nothing can be done about it. To all those who made that point, I say there is something that can be done. There is something in existing planning legislation that they could use; it is called an article 4 directive. I suggest that all the hon. Members who said they feel that their local area is not doing enough to stem the tide, as they see it, of betting shops moving into their high streets should speak to their local councillors and local council officers and ask why an article 4 directive has not been issued. Many of the other considerations relating to betting shops fall under the licensing regime, not the planning system, which is primarily to do with the rationing of space.

[Bill Esterson]

Will the Minister tell the House whether he thinks a cut in business rates will help his high streets, and if he does, will he vote for our motion tonight?

[Stephen Williams]

The Government are doing much on business rates. We have delayed the revaluation until 2015. Also, as was announced in the Budget this year, we are giving every business in the country a £2,000 national insurance credit. That will be of huge value to many small businesses throughout the country, some of which will no longer be paying employers’ national insurance at all, and many of them will be retailers. That £2,000 may compensate significantly for the high cost of business rates, which we certainly acknowledge is a problem. Many small businesses say that uniform business rate is a problem for them.

Finance (No. 3) Bill

Debate between Bill Esterson and Stephen Williams

Tuesday 5th July 2011 Commons Chamber

[Stephen Williams]

I want to make some brief remarks on the amendments. The hon. Member for Nottingham East (Chris Leslie), who leads for the Labour party, mentioned that youth unemployment has grown to roughly a fifth of 16 to 24-year-olds. Of course we all deeply regret the wasted talent that that represents, whether of young people who have qualified at school or college or have left university with a degree and cannot find jobs or those who have not acquired any training or education—the so-called NEETs, those not in education, employment or training. Over the years, I have worked with many charities, such as Fairbridge and the Prince’s Trust, which try to help such people in my constituency. I must gently tell the hon. Gentleman that many of his points were made in the previous Parliament when I used to sit where his hon. Friend the Member for Leyton and Wanstead (John Cryer) is sitting now and I spoke for the Liberal Democrats on skills and higher education. The number of NEETs and the rate of youth unemployment increased year on year throughout the previous Parliament; the number just about touched 1 million before the general election.

I am sure the hon. Member for Nottingham East was not trying to give the impression that youth unemployment had reached 1 million purely because of the actions of the Government. It has been a problem in some cohorts of young people for a long time and has seemed intractable for Administrations of many parties, but the Government are trying to do some good things to tackle it, such as investment in apprenticeships and in the Work programme that will come in shortly.

[Bill Esterson]

I am glad the hon. Gentleman has given way, because I cannot believe he has the nerve to say what he has just said. One of the first actions of the incoming Government was to scrap the successful future jobs fund, which was bringing down youth unemployment. If he reads Professor Wolf’s report, he will see that her worry is about what is happening to 16 to 18-year-olds. We are in danger of repeating the mistakes of the ’80s when youth unemployment peaked four years after the middle of the recession.

--- Later in debate ---

[Stephen Williams]

I was not aware of the continuation of that quote. However—[Hon. Members: “Withdraw!”] Rather than withdraw, I shall expand on my point and make it more strongly. The previous Government engendered the culture of get rich quick by slashing the rates of capital gains tax and making a virtue of cutting income tax and holding down higher rate taxation. Ironically, it is under the Conservative-Liberal Democrat coalition that capital gains tax has gone up and the 50p top tax rate has been levied in this Parliament.

[Bill Esterson]

The hon. Gentleman called himself a free market liberal. Another Member of the House who described himself as a free market liberal is the right hon. Member for Haltemprice and Howden (Mr Davis), who describes the current arrangements in this country and the way in which capitalism operates as wealth extraction, rather than wealth creation. Does the hon. Gentleman agree with that assessment when it comes to bankers’ bonuses, and will he support the amendment on the reasonable grounds that my hon. Friend the Member for Nottingham East (Chris Leslie) set out?

[Stephen Williams]

I thank the hon. Gentleman for his intervention, but I have already stated clearly for the record that I share the moral and ethical outrage at the level of bonuses being paid by certain firms in the City and elsewhere. The question is whether reintroducing the bonus tax designed by the Labour Government would make any difference, because the evidence suggests that it made absolutely no difference to the bonus culture. It was a handy device for raising rather more than the expected revenue, but it certainly did not change behaviour.

As a free market liberal, I think that companies should be free to decide their remuneration policies, but they must justify them to their shareholders. One way that behaviour might change would be if shareholders took a more active interest in the bonuses that the remuneration committees award within their companies, whether they are banks or not. As was mentioned in yesterday’s debate, the people on those committees are often executive directors of other companies and so have a vested interest in the magic circle of super bonuses being justified in other companies. If the shareholders of the banks that we own, Lloyds Banking Group and Royal Bank of Scotland, were able to express a view, that would introduce a new dynamic into capitalism.

I hope that the Government will seriously consider giving each citizen a share in RBS and Lloyds Banking Group when the time comes for both banks to be divested from the state—this is another plug for the pamphlet I published in March, “Getting your share of the banks: giving the banks back to the people”. I had an interesting meeting with officials from UK Financial Investments last Wednesday in the Treasury in order to discuss that.

Amendment 31, tabled by the hon. Member for Hayes and Harlington (John McDonnell), proposes a Robin Hood tax. I fully support such a tax, as I have mentioned in many debates in the House. I have spoken with many non-governmental organisations in my constituency and at lobbying events, such as the one that took place last week and has already been mentioned. A Robin Hood tax has three elements. The first is a levy on banks’ balance sheets, and the Government introduced that in the form of a bank levy. We might disagree about the level of the levy, but the important fact is that the coalition Government have legislated for it to exist and said that it will be permanent, in the sense that it will last for the lifetime of this Parliament. The rate has been changed once, as I mentioned in an intervention, and I hope that it might be increased again.

The second element of a Robin Hood tax is a financial activities tax—FAT, as opposed to VAT, which the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) might have phonetic difficulty with when speaking in Welsh, in distinguishing between an F and a V. I hope that the Minister can update us on what discussions are taking place on that between Finance Ministers across the European Union and what progress has been made on the introduction of such a tax, which is a tax on certain profits of the banks.

The third element of a Robin Hood tax is a financial transactions tax, which is the subject of the amendment. As the hon. Member for Hayes and Harlington said, that has traditionally been called a Tobin tax. It would be the most problematic component of a Robin Hood tax to introduce. It might impede liquidity, which is not necessarily a good thing, and the other barriers he mentioned would be difficult to surmount without international agreement between the major trading nations.

Another problem with a Robin Hood tax is the question of how much it would raise, as I have heard a wide variety of figures for that which are in the billions. The hon. Gentleman referred to the great coalition of NGOs that support such a tax, and many of us support them, but I wish that they would agree a figure for what the different components of the tax could reasonably be expected to raise.

Finance (No. 2) Bill

Debate between Bill Esterson and Stephen Williams

Monday 11th October 2010 Commons Chamber

[Stephen Williams (Bristol West) (LD)]

That was a fascinating exposition of small town, small business socialism, a political philosophy that I have never come across before. I am not sure how much of it will have been welcome to Labour Front Benchers.

I intend to follow the example of the Exchequer Secretary who opened the debate—rather than that of the shadow Chief Secretary—and speak briefly on this brief technical Bill. It is much briefer than many of the other Finance Bills I have seen in my five years as an MP. When I was new to this place, the Liberal Democrat Whips Office inflicted cruel and unusual punishment on me by putting me on the Finance Bill Standing Committee as training in how to operate as an MP. It seems that it is my luck to serve in that way again five years later. To new MPs who may be similarly blessed by the Government Whips Office this time, I can say that it is exceptionally good training. If they can survive the Finance Bill, they will be well prepared for any other legislation in Committee.

This is a small and technical Bill, much of which is familiar ground to me from my professional career before I became an MP. I dealt with capital allowances, venture capital trusts, enterprise management incentive schemes and group relief. I am not so familiar with the taxation of the earnings of seafarers or the workings of petroleum revenue tax, and perhaps the Economic Secretary will give us all a tutorial on those in the exciting Committee stage of the Bill to which some of us may look forward.

As the chairman of the all-party parliamentary group on smoking and public health, I welcome clause 23, which refers to long cigarettes. The hon. Member for Luton North (Kelvin Hopkins), who is no longer in his place, mentioned that it would be wise for the Government to invest in more measures to combat the smuggling of cigarettes and the avoidance of duty by some by cutting long cigarettes into two.

The Bill has to be seen against the background of the deepest deficits among developed countries. Contrary to what the hon. Member for Bassetlaw (John Mann) said—I tried to intervene on him at the time—it is a fact that the deficit that this coalition Government have to tackle is the largest among the larger economies in the world. It is larger than that of the US and Japan, as well as those of the so-called PIGS countries, including Spain and Greece—[Interruption.] Yes, it is larger as a proportion of our economy. Our budget deficit is more than 10% of our GDP and is higher than those of all the countries that I have cited. That is the serious issue with which the coalition Government have to get to grips. We have made some tough choices on taxation, which were the subject of detailed debates after the Budget, and we have some tough decisions to make on expenditure next week. The Government are making those tough decisions, and we are not avoiding the adverse consequences and political hostility that may come our way. We are being responsible, and not avoiding the issue as Labour Front Benchers are doing. They are denying their responsibility for the mess we are in and even scrabbling about to bring in what must have seemed very clever quotes from Wikipedia on the Boer war and Lord Kitchener earlier this afternoon. We are taking the deficit seriously and we are putting in place the measures that are needed to tackle it.

[Bill Esterson (Sefton Central) (Lab)]

Is it responsible to follow the policies adopted in the Republic of Ireland, which have seen the deficit grow, not fall? Those policies are similar to those advocated by this Government.

[Stephen Williams]

All countries, whether in the EU or elsewhere, are having to put forward measures that are appropriate to their domestic circumstances. The circumstances of a small country of about 3 million people such as Ireland are completely different, and we will have to evolve our own response. My point is that we are in a desperate situation, as bequeathed to us by the previous Labour Government. We are taking that challenge seriously and not shirking the difficult decisions that will have to be made to put our economy and public finances back on track so that we can make the sensible investments in public services that we all wish to achieve.