Budget Resolutions

Bob Blackman Excerpts

Thursday 9th March 2017 Commons Chamber

[Sajid Javid]

I think I have already answered that question for the hon. Gentleman: there was no deal available to Surrey that is not available to any other local authority.

I have been working on adult social care with my right hon. Friends the Secretary of State for Health and the Chancellor of the Exchequer. The result is a Budget that delivers £2 billion of additional funding for adult social care. Let me be very clear: every single council in England responsible for adult social care will benefit from this additional funding, rural or urban, north or south, Labour or Conservative. To allow councils to move fast so that they can put in place extra social care packages as soon as possible, we will publish the allocations later today. This additional money, front-loaded for 2017-18, will make an immediate difference to people in our communities who need care and support, and it will bring the total dedicated funding available for adult social care in England to £9.6 billion over the course of this Parliament.

I know that this is a novel concept for the Labour party, but more money is not the only answer. This Government are not just dedicated to sustainable economic growth; we also believe in sustainable public services. Demand for adult social care is not about to stop rising, and the challenge of paying for it is not going to go away. The £2 billion announced in this Budget will make a significant difference over the next three years, but the challenge will not suddenly vanish in 2020.

The funding model for the adult social care system is clearly in need of substantial reform and improvement; it has to be made fairer and more sustainable, and we are absolutely committed to doing just that. We are looking at all the options, and later this year we will be publishing a Green Paper setting out a long-term plan that will ensure that proper care is provided to everyone who needs it.

[Bob Blackman (Harrow East) (Con)]

The announcement of money now will be warmly welcomed across the country, but before my right hon. Friend announces the details of the long-term plan, which we welcome as well, the short-term issue is whether the money is new money or money being brought forward from later years, and whether it will be added to baseline budgets so that local authorities can expect to receive that funding each year, rather than being just one-off funding. Finally, the formula by which this is distributed is key, because different local authorities are under different levels of pressure.

[Sajid Javid]

I am pleased that my hon. Friend asks that question as it allows me to say more on this issue. First, I can confirm that the £2 billion is all new money; it is new grant from central Government. Secondly, I can confirm that it will be added to every local authority’s baseline over the next three years as that money is distributed. My hon. Friend also rightly asked about how it will be allocated. The vast majority of the money will be allocated using the improved better care formula that already exists and is transparent and open, which will mean that account can be taken of not just the needs of every local authority but of their ability to raise money through council taxes. A small portion—10%—will be allocated using the existing relative needs formula, and the purpose of that is to make sure that every local authority in the country that has responsibility for adult social care is able to access new funding.

--- Later in debate ---

[Bob Blackman (Harrow East) (Con)]

It is a pleasure to follow the hon. Member for Croydon North (Mr Reed). First, I place on record my declaration in the Register of Members’ Financial Interests as a vice-president of the Local Government Association, given that many of my remarks will be about local government funding and the services provided.

When Chancellors stand up at the Dispatch Box, they have a real challenge on their hands to balance the books in terms of taxes to be raised and money to be spent. In looking forward to the year ahead, we must take into account not only the Budget announced yesterday but the autumn statement, which led to large elements of Government spending being brought forward. There is a Budget that is announced at the Dispatch Box, and then there is a Budget that appears in the newspapers in the days and weeks beyond.

The test of a Budget is often how long it lasts before people start to pick at the finer points. It cannot be said that the Chancellor did not address national insurance increases: he spent a large proportion of his statement speaking about national insurance and the importance of balancing the overall position. We need to look at the matter very carefully, however, because a solemn promise was made in the manifesto not to increase national insurance, and I worry that the Government could be accused of signing a contract and failing to look at the small print. Across the country, many people who have entered self-employment are on relatively low rates of pay. They are taking all the risks on themselves, and we want to encourage them to be entrepreneurs and to invest in their businesses and livelihoods.

There has been a dramatic reduction in national insurance for many low-paid people, but I think the point at which people will pay more is far too low. I trust that the Treasury will look at introducing appropriate tapers to ensure that those contributions fall on highly paid people who would appear to be abusing the opportunity to be self-employed, rather than on the lower paid.

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman has clearly outlined the issue concerning the Conservative party manifesto. The media—the radio, the TV and the papers—have today given many illustrations of why people are unhappy with the Government’s intention to raise national insurance contributions. It is an issue in my constituency, and many of my people are telling me that they do not want it to happen. Those people have operated under the existing system for several years, and they want it to continue. Does he feel that the Government should review their decision? I think that that is what he is saying, but will he confirm that?

[Bob Blackman]

The Government have to look at the matter very carefully and review the point at which someone will pay more national insurance as a result of the abolition of class 2 contributions and the increase in class 4 contributions. I do not think that the balance, as announced yesterday, is right.

[Norman Lamb]

The hon. Gentleman rightly highlighted the concern that this may be a case of having to look at the small print. Is the situation not worse than that, however? The small print actually came in the legislation that was introduced after the election; when the commitment was made in the manifesto, there was no small print. It was a very clear promise, which has been broken.

[Bob Blackman]

The right hon. Gentleman and his party are experts in broken promises. It is important that we are seen to be fair and reasonable in this process, and that we encourage people to become entrepreneurs. That is the key element.

I now move on to funding for social care. The Communities and Local Government Committee, on which I have the honour of serving, recommended that the Chancellor make available £1.5 billion to fund adult social care. I am delighted that the Chancellor announced an extra £1 billion for adult social care. I am also pleased that the Secretary of State for Communities and Local Government confirmed today at the Dispatch Box that that money will be added to local authorities’ baseline budgets, and that he confirmed the formula by which it will be distributed. I think that that will be warmly welcomed by local authorities up and down the country, and it is a continuation of much needed funding.

I hope that the Economic Secretary to the Treasury will be able to clarify in his winding-up speech one or two points in the Red Book that are slightly confusing for me and may be so for other Members, if they have looked at them. Line 9 of table 2.1 on page 26 mentions a spend of £1.2 billion on adult social care in 2017-18, which is more than the Chancellor announced yesterday in his speech. I hope that that can be clarified. However, the extra £1.2 billion does not appear to have been added to the CLG items in the table on page 21. It is not clear whether the money is ring-fenced for adult social care—I hope it is—and how the Government will ensure that it is spent in the intended manner. The funding was clearly needed, and I am delighted that it has been announced. It shows that the Chancellor and the Treasury are listening to concerns raised by hon. Members from right across the House.

I am equally pleased to see the additional funding that has been introduced for the national health service, particularly capital funding to provide much needed A&E improvements. Those improvements will take some pressure off A&E departments by allowing for the triaging of individuals who turn up at A&E when they should have gone to their GPs in the first place. That will clearly take the pressure off our health service, and it will be warmly welcomed across the country. I trust that we can get on with implementing those capital schemes as fast as possible, so that next winter A&E will not face the problems that it has experienced over the last couple of years.

I note that the Chancellor has allocated an extra £325 million of funding for sustainability and transformation plans. However, the estimated requirement is £9.5 billion. I just wonder where the extra money will come from to support that. The extra money for that in the Budget is welcome, but there seems to be rather a shortfall by comparison with the demand created by the various STPs.

On business rates, we all welcome the relief for pubs and the reinstatement of a three-year revaluation cycle. If we have learned nothing else from the process, we have learned that a seven-year revaluation period is ridiculous. Although many businesses across the country will be warmly happy about the fact that their business rates were effectively frozen for seven years, after the businesses are revalued they will almost face a cliff-edge. The implementation of a three-year revaluation period has to be the right approach.

I warmly welcome the £300 million given to local authorities to grant discretionary relief on business rates. My only concern is that we know that a large number of appeals will be lodged against the revaluations, and some local authorities may therefore be hesitant about granting relief while appeals are going on. In London and other parts of the country where 100% of business rates are devolved, that may have a huge impact on local authorities’ income. That is my one concern.

We need absolute clarity on what will happen about the billing of business rates and the reliefs that will be offered thereafter. Businesses up and down the country will receive their bills without necessarily knowing what reliefs they will get. In terms of cash flow, that will be a serious concern. The additional money to provide businesses with relief from the increase in business rates is extremely welcome, but the devil is in the detail, and we must resolve businesses’ uncertainty as quickly as possible.

[Mr Jackson]

My hon. Friend is, as I am, a vice-president of the Local Government Association. Does he agree that there is probably a case to be made for introducing a regional aspect to non-domestic or business rates? The potential difficulties in Greater London and the south-east are not replicated throughout the rest of the country, where bills are being reduced. That speaks to a need to look at London as a unique entity.

[Bob Blackman]

As we move forward, and before we get to 100% devolution of business rates across the country, we must resolve the conundrums that have arisen in relation to business rates. Equally, we have to recognise that business rates raise in the order of £25 billion a year as a tax, so changing its basis could be extremely cumbersome and might lead to hikes for some businesses, which would not be welcome, as well as reductions for others. We should look at that in the round and make sure, following the consultation that we are going to embark on, that the new policy works for all businesses and business people.

On education, the funding for the 500 free schools, including the new free schools, will be extremely welcome. Certainly in my constituency and across my borough, the reality is that we need an additional four new schools immediately. We have expanded every single primary school to its capacity and built on every piece of land available to provide new school places—all with Government funding, allocated under the coalition Government, which was extremely welcome—but we still need additional schools. I am delighted that a new faith school will be opening soon in my constituency, which will be the first state-sponsored all-through faith school in the country for the Hindu community. We will still need additional schools, however.

I have real concern about the principles of the fairer funding formula. The reality is that if the money coming into the formula is flat, then when some people are gaining, others will be losing. The current estimate is that 75% of the schools in my constituency will have not just a reduction in real terms, but a real cash-terms reduction in the funding available to them per pupil. They cannot increase the number of pupils, because the schools are full, so the only alternative is to cut staff and implement a worse service for the children in my constituency. I place it on the record right now that that is unacceptable.

I welcome the investment being made in skills and vocational studies. For far too long, academic skills have been recognised and applauded in this country, while vocational skills have not received the investment they deserve. I welcome what the Chancellor is doing to make that happen, using the funding to drive forward such a process, which must be the right way to encourage young people to develop their skills. If they have academic capabilities, that is wonderful, but if they have vocational skills, we desperately need them in the construction industry, our services industries and right across the board. This is one of the areas in which, for far too long, we have not had such investment, so I welcome the change that is taking place.

I also welcome the new deal on London devolution. I note that the Labour Mayor of London has welcomed the Chancellor’s decision to devolve such money. I have not heard that from Labour Front Benchers, but there is clearly always a disconnect between the Labour Mayor of London and his own Front Benchers in this House. We warmly welcome such a devolution. Local authorities in London, as well as in other parts of the country, will keep their business rates and have the opportunity to make local decisions for local people.

There is, however, a gap in that the Chancellor did not talk about the funding needed to replace the EU regional funding schemes. The schemes have been used for particular purposes right across the country. We clearly do not need to make such a decision now, but the Chancellor must consider this in the future, because these funds are vital right across our regions.

I welcome the provisions on alcohol duty in the main, but it would have been sensible for the Chancellor to maintain the policy of not increasing beer duty. [Interruption.] I am sure that is warmly welcomed among Conservative Members, and I declare an interest in that it is my favourite drink. The cuts in beer duty in previous Budgets have been an appropriate way to encourage people to drink lower-strength beers rather than higher-strength alcohols, which is important.

On tobacco duty, which is significant, I welcome the changes that the Chancellor has made, but I think he could have gone further. If he and my hon. Friend the Economic Secretary want to increase duties on something, let us increase them on tobacco. The fact is that there is a straightforward translation: the less people smoke, the less demand they will make on the national health service.

[Adam Afriyie]

My hon. Friend is making a very powerful speech, and I agree wholeheartedly with him on tobacco duty. In fact, I would go further and urge the Chancellor, as well as everyone in the House, not only to increase the duty on cigarettes significantly, but, conversely, to ensure that vaping and heat-not-burn devices get a better hearing, because switching to such devices will actually save lives and improve the health of so many millions of people.

[Bob Blackman]

Quite clearly, anything we can do to encourage people to give up smoking has to be good for their health and for the national health service overall.

[Mr Jackson]

Before my hon. Friend moves on from vices, does he agree that the Red Book shows that there is only a commitment to consult on white cider and other high-strength ciders? Given the argument that they cause disproportionate harm—with policing, health and so on—is there a case for increasing the duties on such high-strength alcoholic products?

[Bob Blackman]

The position is quite clear. In particular, I want the Treasury to look at the differential duties on licensed premises compared with those involving off-sales, because such an approach could make a quite massive difference.

My one concern about what is proposed for tobacco duty is the possibility of driving individuals away from normal standard cigarettes to hand-rolled tobacco. Young people might be encouraged to switch to hand-rolled tobacco, which is even more harmful to their health than smoking cigarettes. The duty on hand-rolled tobacco should be looked at, so that we can discourage that.

I was disappointed—my hon. Friend the Economic Secretary will know what I am about to say—not to see further compensation for the victims of the Equitable Life scandal. The Treasury believes that the scheme is closed. It is quite clearly closed to new applicants, but there is still the burning injustice that people who saved for their future and their future pensions have not received the full compensation due to them. I am very proud to say that the Government allocated funding in early 2010, which has helped to compensate some of the victims of the scandal, but a total of £2.8 billion or £2.5 billion—it depends which figures one looks at—is still owed to the victims of the scandal. Those individuals are getting older and more vulnerable, and if we give them any money, it will go straight into the economy because they desperately need it for their old age.

I hope my hon. Friend will look at that again in the round. I understand how difficult it is to balance the books, particularly at the moment, but this is clearly a debt of honour. As the economy recovers, we should look at increasing the compensation, not saying to individuals, “That’s it. That’s all you’re going to get.” If we do that, we will suffer the consequence of people’s mistrust.

The housing White Paper has demonstrated large elements of what we need to do to increase the volume of housing. There was a great deal of comment in the autumn statement on funds for housing, but there was no mention of that, or of the further measures we need to undertake, in the Budget yesterday.

As you will know, Madam Deputy Speaker, my private Member’s Bill is progressing through Parliament. It is in the other place at the moment and, I hope, will become law very soon. It aims to reduce homelessness in this country, but the most important impact we can have on homelessness is to build more homes. I trust that the Economic Secretary will consider measures to encourage local authorities, housing associations and private builders to build low-cost housing that is relatively easily affordable for the people of this country, so that we can combat homelessness once and for all in our civilised society.

The Budget must be looked at in the round. I have been critical of certain areas. It is our duty as Back Benchers to be critical friends of our Front Benchers to make sure that they keep abreast of what is going on, particularly when the Opposition do not seem able to critique the Budget. I welcome the overall thrust of the Budget and trust that we can look at ameliorating some of the areas I have mentioned. I commend it to the House.

Christmas Adjournment

Bob Blackman Excerpts

Tuesday 20th December 2016 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

I beg to move,

That this House has considered matters to be raised before the forthcoming adjournment.

I rise to speak on behalf of the Backbench Business Committee. Unaccountably, I must apologise for the Chair of the Committee, the hon. Member for Gateshead (Ian Mearns), who is unable to be with us this afternoon; he is no doubt very active in his constituency, regaling his constituents with festive wishes.

The theme of my introduction is thinking about those who are less fortunate than we are. First and foremost, I want to place on the record what I believe is the view of the whole House in expressing our horror and revulsion at the events at the Berlin Christmas market. Our thoughts are not only with those who are fighting for their lives, but with the relatives of those who have sadly lost their lives. It just shows what can happen and the horrors that can ensue at a simple Christmas market where law-abiding people are going about their business. We do not yet know who was responsible or what their motives were. However, our sympathies are with the relatives of those who have lost their lives and equally with those who have been severely injured.

Secondly, let us express our thoughts, as a whole House, for the people of Aleppo, who are in a parlous condition at the hands of a brutal dictator, and a brutal army that is basically eliminating anyone and everyone that stands in its way. I trust that there will be a resolution of this terrible conflict in the new year, and that people will be able to return to their homes in peace and harmony.

Thirdly, this is the first Christmas that Jo Cox’s family will experience without her. Members on both sides of the House have been touched by the brutal murder of a colleague who was just doing her job on behalf of her constituents. The best thing we can all do—even if we are not used to downloading tracks—is to download her single and help to make it the No. 1 for Christmas. That would be a fitting tribute for a late colleague whom we all mourn.

I want to move on to another set of people who are far less fortunate than we are—the homeless and rough sleepers. Madam Deputy Speaker, you will know all too well that my Homelessness Reduction Bill is making its way through Parliament. I am delighted to say that it has all-party support. It had an unopposed Second Reading on 28 October, and we have pursued the Bill in Committee, where I am pleased to say that we are more than halfway through its 13 clauses. I am told that it is the longest ever private Member’s Bill, and it will probably end up as the most expensive for the Government to fund.

Equally, the Bill is very important. The number of people who are homeless in this country is a disgrace, and the number of people who will sleep rough tonight is a disgrace. We owe it to them to make sure that we deliver a radical solution. First and foremost, that is about increasing the supply of housing so that people can have a decent roof over their head, but it is also about transforming local authorities to make sure that they look at the reasons why people are homeless and provide help and assistance at first hand.

I want to thank some of the people involved. I place on the record my thanks to Crisis, St Mungo’s and Shelter for all the work they do to assist people who are homeless at this time of year. I also thank them for giving me tremendous support in producing the Bill, together with the National Landlords Association, which has also given me exceptional assistance.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

Given that it is Christmas and that the hon. Gentleman has raised the subject of housing, will he take this opportunity to join me in praising Harrow Council for beginning to build council houses—for the first time in 28 years, there will be new council homes in Harrow—which is surely a key part of tackling the housing crisis that affects both our constituencies?

[Bob Blackman]

I thank the hon. Gentleman, who is my constituency neighbour, for raising that issue. It is important that affordable housing is developed right across London and right across the country. To me, the form of tenure does not matter too much; what matters most is that housing is provided for people at a price they can afford. It is good to see Harrow Council doing something right under Labour control. That is very rare—I have a whole catalogue of its errors. But in the spirit of Christmas, let us thank the council.

May I also place on the record my concern and that of more than 216 Members of Parliament about the plight of Equitable Life policyholders? It is a long-running scandal. Although the Government have now closed the compensation scheme to new applicants, the issue is far from over. The Government rightly provided £1.5 billion in compensation to people who suffered from the scam, but the former Chancellor, my right hon. Friend the Member for Tatton (Mr Osborne), made it clear that the total sum owed to those people—as a result of saving their money, as was their right, for a reasonable retirement—was £4.3 billion. More than 1 million people have received only 22% of the compensation they are due. A great deal of money still needs to be found to compensate those applicants. That is without dealing with the most frail and vulnerable—those with pre-’92 trapped annuities, who deserve help on compassionate grounds. I am glad that the new Economic Secretary has agreed to meet a cross-party delegation in the new year to discuss the next steps.

[Bob Stewart (Beckenham) (Con)]

The Equitable Life policyholders are getting older. It matters that we get this sorted.

[Bob Blackman]

I thank my hon. Friend for raising that issue. Quite clearly, in the not too distant future large numbers of those affected will want to use their pension for the comfortable life they thought they were saving for and have literally been robbed of.

This year, we have resuscitated the all-party parliamentary group on Romania. I particularly want to raise the plight of Alexander Adamescu, a journalist from Romania —originally from Germany—who is resident in the UK and is under threat from a European arrest warrant for raising issues that are slightly controversial in Romania but in this country would not be an issue. That raises specific concerns about the relationship between Britain and Romania, and about how the European arrest warrant is used.

I also want to raise the plight of 1.5 million people displaced in Azerbaijan from the disputed region of Nagorno-Karabakh. The conflict there has been going on for far too long. It is a forgotten conflict, and unfortunately the position with Armenia, Russia and allies has not helped the overall situation. This summer, the all-party parliamentary group on Azerbaijan went to see one of the camps that has been set up for those people. They are suffering very greatly through no fault of their own. It is time that human rights and shared values were restored to that part of the world.

There is unfinished business in Parliament on two other issues that I will raise briefly. First, we have now gone a year since the expiry of the tobacco control plan that the Government implemented. We have been waiting a year for the new plan. We have been promised on frequent occasions that it would be published soon. On today’s Order Paper I see no progress on it, and I do not think the issue was aired at Health questions. It is obviously important that the Government publish the new tobacco control plan early in the new year, with far-reaching targets, so that we can set out our stall to make sure that the United Kingdom becomes a smoke-free country. It is important that the plan is set out, because without it we run the risk of going backwards on all the wonderful things that have been achieved over the past five years.

Equally, on behalf of the all-party parliamentary group for British Hindus I want to raise the fact that the Government have promised on several occasions to publish the consultation document on ridding ourselves of the unnecessary, ill-thought-out and divisive caste legislation. That consultation was promised by the end of the year. Today is the last day this year that we will meet in Parliament, and there has been no notification to Parliament about the publication of that consultation document. I trust that we will see the document before the end of the year, but Parliament should see it and it should be announced in Parliament before it is released to the public.

[Keith Vaz (Leicester East) (Lab)]

May I pay tribute to the hon. Gentleman for all his work on behalf of the Hindu community, not just in Harrow but throughout the country? He and I compete as to the number of British Hindus in our constituencies, although I probably just beat him in Leicester. Does he agree that it is important that we have a debate on that document once it is published? It is not sufficient just to publish and rush it through the House. A proper debate involving the diaspora would be very helpful.

[Bob Blackman]

I thank the right hon. Gentleman for that point. I have asked at the last two Women and Equalities questions for the publication of the consultation and asked at business questions for a statement to the House. We could have that debate and Members from all parties and with all interests could register their point of view. Sadly, that has yet to be the case. It is important that we have the debate before the consultation starts, so that it can frame the consultation rather than ending up responding to the document.

I will raise a couple more issues of significance before I conclude my opening speech. The first is the problems that I am sure Members in all parts of the House are experiencing with regard to the issuing of visas for weddings, religious ceremonies and educational or other particular purposes. Visas are being rejected on grounds that I consider spurious. That causes immense difficulties for people coming for religious functions, weddings and in particular funerals, where things are done at the last minute. Applications from India, Pakistan, Iran and Sri Lanka seem to be singled out in an unfair manner and are not treated properly.

I will continue to work in the new year for a two-year visitor visa to be issued for Indian citizens in the same way as the Government agreed for Chinese citizens. I have nothing against Chinese people wanting to visit—that is wonderful—but huge numbers of Indians want to come here and visit too, and I see no reason why they should suffer unfair discrimination when so many relatives are here and people want to visit and to use this country appropriately.

Local transport services are suffering. This may be a theme of other speeches in this debate. We are looking forward to Harrow-on-the-Hill station in the constituency of my honourable neighbour the Member for Harrow West (Mr Thomas) being made step-free. I am looking forward to Stanmore station becoming step-free in the same timeframe. I trust that the solution that has been identified will go forward and will be appropriate.

The one local health issue that I want to raise is that we are seeing the rebuilding of the Royal National Orthopaedic hospital in my constituency. That is not before time. I and my predecessors have struggled to achieve that and I am delighted that it is finally happening and that we will see the development of a first-rate national hospital that suits the brilliant work that the doctors and nurses do.

I could raise a range of other issues, but I know that a huge number of colleagues are keen to update the House on what they think matters before we rise for the Adjournment. I look forward to the response of my good friend the Deputy Leader of the House to the debate in time-honoured fashion. I have no doubt that it will be appropriately challenging for him, but I know that he will respond and that colleagues will have suitable matters to raise.

Mr Deputy Speaker, I wish you, the Speaker, your fellow Deputy Speakers, the whole House, our colleagues, the staff and the people who keep us safe a very merry Christmas and a happy new year that I trust will be peaceful, prosperous and healthy. On behalf of the Backbench Business Committee, I open the debate and look forward to the speeches of hon. Members on both sides of the House.

[Several hon. Members rose—]

Tax Credits: Concentrix

Bob Blackman Excerpts

Wednesday 14th September 2016 Commons Chamber

[Jane Ellison]

I am aware that the hon. Lady has been very active on this—she has asked a number of parliamentary questions and has shown considerable interest in the issue. It is important to note, and the performance figures support this, that it is only really in recent weeks that performance has not been acceptable. It is not that this has been an acute problem for a considerable length of time. However, performance has not been acceptable in recent weeks.

People should contact the number on the letters they have received. I am aware that there have been problems getting through on the phone in recent weeks, and have tested it out for myself. We are putting in additional resources to allow Concentrix to focus on answering the phones and dealing with outstanding cases while additional HMRC staff resolve some of the back-office issues and some of the complexities, so that people can focus on the immediate issue.

Some more mandatory considerations are coming in, but we think there are around 2,500 cases in the system still to be dealt with at the moment. We expect more to come in because it is that time of year, after people who have not supplied additional information as they were requested to have seen their tax credits stopped. We feel that, with that additional resource, we can resolve that quickly, and that is my focus.

[Bob Blackman (Harrow East) (Con)]

Now that the position is that Concentrix is not going to deal with any new claims or cases, will my hon. Friend clarify for the House who, from HMRC or wherever, will deal with claims of errors, fraud and other problems, so that we send a strong signal to people that that will not be acceptable and that we want to see genuine claimants compensated for losing money that they need?

[Jane Ellison]

I reassure my hon. Friend that it has always been the case that both Concentrix and HMRC were pursuing matters of error and fraud; it was not the case that only Concentrix was doing so. HMRC will continue to pursue error and fraud cases. In recent years the Government have put additional resource into supporting HMRC’s work on general tax avoidance and evasion, and compliance.

Summer Adjournment

Bob Blackman Excerpts

Thursday 21st July 2016 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

I beg to move,

That this House has considered matters to be raised before the forthcoming adjournment.

The hon. Member for Gateshead (Ian Mearns) sends his apologies; the time taken by the urgent question meant that he could not stay but had to leave to attend to constituency business.

I wish to concentrate my remarks on some local issues and matters concerning this House that might benefit from a mention. I am pleased to report that during the recent London mayoral election in Harrow East, we managed to secure an overwhelming majority for our mayoral candidate, our constituency candidate and the party vote. Regrettably, the rest of London did not follow the same line. I am also pleased to say that we secured a strong majority vote in my constituency to leave the EU, which was of course echoed across the country.

On transport, the dreadful performance of Southern Rail was mentioned in business questions this morning. This affects my constituents as well. The service from Harrow and Wealdstone station to Gatwick airport and Brighton has already been cut, and now Southern proposes to cut the service to Croydon. I wrote to the outgoing Rail Minister about this, and I trust that there will be strong action from the new Secretary of State and the Rail Minister to combat this disgraceful service.

Flooding is a particular issue in my constituency. Many Members from rural constituencies might not realise this, but constituencies like mine have seen deep pools of water and sewage emerging as a result of recent flash floods and heavy rainfall. I have had consequential correspondence and held a series of meetings with the council, Thames Water and the Environment Agency, and it is a great source of frustration that none of them is taking any action to remedy the problem. As a result, many homes have been flooded unnecessarily, which has caused immense problems with insurance.

I had hoped to report today a satisfactory outcome to the ongoing saga of the redevelopment of the Royal National Orthopaedic hospital. This has been going on since before I was elected: my predecessor and his predecessor attempted to get the hospital rebuilt. The only thing that seems to have changed is that the NHS Trust Development Authority has changed its name to NHS Improvement. Still the bureaucracy continues and still the £20 million funding that is required is being “considered carefully” by the bureaucrats. I trust that the Health Secretary and his team will reduce these levels of bureaucracy and that we can get a reasonable and quick decision on a proper, business-like service. This is a service on which we all rely.

I am receiving complaints about the planning service in Harrow. The local authority is struggling to deal with enforcement notices and the grey areas around permitted development and retrospective planning approval. I warned about this when the Government changed the rules and regulations on planning. It is now causing immense problems, not only in my constituency but throughout London.

I have also received numerous complaints about the rejection of legitimate visa applications submitted for weddings, religious ceremonies, education and other visits to this country. My office is referring every case either to UK Visas and Immigration or the Immigration Minister. We are seeing mass rejections of visas for families travelling to my constituency for legitimate reasons. This needs to be rectified.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

The hon. Gentleman makes a good point. At their advice surgeries, many MPs see people complaining about legitimate entry clearance applications being refused. At the same time, is the hon. Gentleman aware that the high commission in Islamabad recently granted entry clearance to two hate preachers, including one Muhammad Qureshi? Why does he think that permission is being granted to people who are seriously dangerous to our country yet not to those who are not?

[Bob Blackman]

It is quite clear that the problems in the visa system need to be resolved. People who want to cause harm and damage to good community relations in this country should be barred from entering. The new Immigration Minister has a task to review this process. I have proposed that visitors from India have the option of a two-year visitor visa, just as visitors from China do. It might be possible to consider other countries as well, but if we have friendly relations with countries, we should allow people from there to come and visit on a reasonable basis. We should also bar those we do not want here, and that includes barring from our mosques messages from hate preachers who preach over the internet or via satellite television. That causes religious and other concerns.

I wish to take up the vexed issue of the garden tax in Harrow. The council decided in 2015 to charge for the collection of garden waste. Having contacted every London borough, we have established that Harrow is charging more than any other borough in London, and probably the country, for garden waste collection. Residents were rightly outraged by this imposition, but the policy has been approved and 10,000 addresses in my constituency have now been registered for this tax. We have had 168 complaints of poor service and 3,080 missed collections out of 128,000 since the service was introduced. The service is poor yet the most expensive in the country. It is outrageous.

I was pleased recently to visit Bentley Priory museum, where we were buzzed by a Spitfire as part of the celebrations of our winning the Battle of Britain. I also received an interesting request. After successfully securing from the Chancellor a £1 million grant towards an education centre for the museum, I received an email asking for an invoice for £1 million and details of the person to whom the cheque should be payable. I had to check that it was not coming from Nigeria or some other country, rather than a civil servant. I am pleased to say that I was able to pass it on to the relevant people and to make sure they got the money they deserved.

I am pleased to say that the first state-sponsored Hindu Secondary School in this country has now received planning permission. It will be built in my constituency and will open as soon as possible. I look forward to the new Secretary of State for Education coming to open it in due course.

After the break, I will be introducing a private Member’s Bill on homelessness reduction. It is supported by national charities such as Crisis, Shelter and St Mungo’s and by the National Landlords Association and other local charities in my constituency, such as the FirmFoundation night shelter charity and Harrow Churches housing association. Although we cannot eliminate homelessness, we can try to reduce it as much possible. The Communities and Local Government Select Committee will be publishing a report on measures to combat homelessness across the country. My Bill will go through pre-legislative scrutiny by the CLG Select Committee, which I understand will be a first for any private Member’s Bill. This may be an ordeal for me and others.

I would like to tell Members wishing to support my Bill that Second Reading is on 28 October. I look forward to gaining cross-party support for the Bill, and I have already secured co-sponsors from Conservative, Labour, SNP and DUP Members, but unfortunately I could not find a Liberal Member to help. No doubt the Liberals will also support it, however.

I raised the issue of caste legislation at Women and Equalities questions this morning. The all-party parliamentary group for British Hindus is actively lobbying to repeal clause 9 of the caste legislation as it approaches the end of its sunset clause. The consultation time with communities has been fully exhausted over the last two years, and now is the time to take a decision. British Hindus deeply resent this unnecessary, ill thought out, ill-considered legislation, which was foisted on us by the other place. I look forward to its being repealed as soon as possible.

I had the privilege of celebrating the second international day of yoga this year. We had a very well attended meeting here with researchers, practitioners, parliamentarians and representatives from the NHS. The key point is that the NHS is considering putting yoga into the wellbeing aspects of the health service. I would recommend it for all Members. I start my day with a short period of yoga exercises and stretches and meditation, and it has served me extremely well. I thus strongly recommend it for all colleagues—[Interruption.] No, I will not demonstrate it here and now! I have held two meetings with the Minister of AYUSH— Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy—in India. The aim was to get Indian Ministers to inform the Government here and all who would like to listen that this can be utilised to assist people’s wellbeing, as well as ensuring that people can relax and live a proper, decent and long life.

This morning I also raised the plight of religious minorities in Bangladesh. I would like to highlight early-day motion 351 for Members to sign if they so wish, with the aim of ensuring that we get some action. At the moment, we spend £157 million on overseas development aid to Bangladesh, and I am proud of the fact that this country spends 0.7% of its gross domestic product on overseas development. It seems to me that at a time when religious minorities are being victimised and persecuted in Bangladesh, we should spend more of that money on improving security over there for all people of all religions rather than on some of the areas where the money has actually been spent.

I have also raised the plight of Hindus in Jammu and Kashmir. This is an integral part of India, and it shall remain so. The area illegally occupied by Pakistan must be repatriated to India. I have spoken on a regular basis against the continued attacks on Hindu minorities in Kashmir. As a result of the assassination of the terrorist Burhan Wani, the situation in the valley has erupted, with Pandits and Government establishments attacked by Kashmiri Muslims and other terrorists.

I visited Jammu and Kashmir to gain a first-hand understanding of the situation. I met many members of civil society, politicians, lawyers, traders and residents to understand the situation in both Jammu and Kashmir. I met senior cabinet Ministers in Delhi, and it is quite clear that there are huge opportunities for tourism and infrastructure improvements and for the whole of society to come together, provided that the terrorism ceases.

[Dr Rosena Allin-Khan (Tooting) (Lab)]

I thank the hon. Gentleman for telling us about his experiences in Jammu and Kashmir. I have been there, too, and I would like to say that the terrorism runs both ways. It is important for us to acknowledge that. The hon. Gentleman is absolutely right that there is a long way to go, and that there are opportunities to be had for creating greater community cohesion. It is important to register the fact that the acts of terrorism, as I say, go both ways. I have seen that at first hand myself.

[Bob Blackman]

The reality is that under UN resolutions, Pakistan is illegally occupying part of Kashmir—and it should leave. I am also concerned about the link-up between China and Pakistan on the illegal silk route that is being followed, and the threats to security that result from it.

Let me deal now with the costs to the NHS that come from smoking. At the moment, treatments for people who choose to smoke amount to £2 billion a year, while smoking causes 79,700 unnecessary deaths every year. Smoking rates still remain stubbornly high, but I am delighted that the numbers of young people taking up smoking are dropping considerably, which is good news for the longer term. I shall be hosting a round table event in September to discuss progress on the tobacco control plan, and I urge the new Health Minister to ensure that this control plan is introduced as quickly as possible. Our meeting will bring together key stakeholders interested in the development of the plan, and is intended to ensure that we give appropriate recommendations to the Department of Health on this issue. This has been delayed over the summer, and the change of Ministers might bring a need for further consideration, but I urge the Department to get on with this quickly.

In conclusion, I wish you, Madam Deputy Speaker, and all members of staff, who serve us so well, a very happy recess. Personally, I shall be working in my constituency on behalf of my constituents, as well as having a very short and brief holiday to allow me to recover from this year.

[Several hon. Members rose—]

UK Economy

Bob Blackman Excerpts

Wednesday 29th June 2016 Commons Chamber

[John McDonnell]

I fully agree. I echo the Chancellor’s statement on Monday that this country is open for business, and Members of all political parties must repeat it time and again to ensure that we retain the confidence of overseas investors as best we can.

We have to recognise that the confidence of international investors has been undermined by uncertainty over the UK’s relationship with the rest of the world. It is regrettable that the current account deficit has not been addressed so far. To address it would have required a restructuring of our economy. We would have needed an industrial strategy to develop and support our key industries. The Government must now produce a comprehensive industrial strategy to support those industries and lay a path to future growth.

[Bob Blackman (Harrow East) (Con)]

Given that uncertainty, does the hon. Gentleman welcome the fact that the Speaker of the House of Representatives has today called for immediate talks between the United States and the UK about setting up a trade deal that will be in place for the US when we leave the EU? Does he also welcome the statements from the Indian Government, who want a trade deal between the UK and India to be arranged immediately so that we can ensure that there is no interruption to the UK economy?

[John McDonnell]

It must be recognised that the trading relationship with India, although growing, is still relatively small. I welcome the negotiations that are taking place, but we know from our experience of the timescale in which trade agreements have been secured over much of the past decade that the process is lengthy, and that when individual states negotiate on their own, they do not necessarily achieve the benefits that they would have secured within a trading bloc.

The simplest explanation for these decisive economic weaknesses is the poor state of investment in the UK. Admittedly, business investment was already in decline before the referendum, but it is undoubtedly falling still further, and, as the press has reported, the ongoing uncertainty alone is enough to deter investment. That fall in business investment is being worsened by the Government’s plans to cut their own investment which, according to current projections, is set to fall by the end of the decade. Without sustained investment—private and Government investment—we shall not be able to address the economic decline that has blighted too much of our country.

Oral Answers to Questions

Bob Blackman Excerpts

Tuesday 7th June 2016 Commons Chamber

[Mr Osborne]

The first thing I would say is that there were those remarkable figures recently showing that 25% of UK electricity generation is now from renewable energy. That is second only to Germany and is an amazing transformation in our energy supply under this Conservative leadership. Secondly, we need to renew the next generation of nuclear power stations, starting with Hinkley Point, but the deal we have signed makes sure that taxpayers are not exposed to the construction risk.

[Bob Blackman (Harrow East) (Con)]

T6. I note that the Government will publish a report on the progress of payments to Equitable Life policyholders who are victims of the great scam, and I congratulate the Government on the progress that has been made to compensate those individuals. Will my right hon. Friend undertake to review the amount of money paid to victims of the scam so that we can fulfil the debt of honour that we owe them?

[The Economic Secretary to the Treasury (Harriett Baldwin)]

I can announce that although the Equitable Life payment scheme is now closed to new claims, payments being made under the scheme to with-profit annuitants are not only tax free but will continue for the life of the relevant annuity.

Budget Resolutions and Economic Situation

Bob Blackman Excerpts

Tuesday 22nd March 2016 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

It is a pleasure and an honour to follow the hon. Member for Walthamstow (Stella Creasy). As a graduate in physics and maths from the University of Liverpool, I both congratulate and condemn her on managing to get both Stephen Hawking and Wayne Rooney into the same speech.

I want to send my condolences to the families of the victims in Brussels. I was in Brussels shortly after the Paris attacks and the degree of security being implemented demonstrated that the authorities were already on high alert. It is clearly a devastating tragedy.

The events of the past few days seem to have over-shadowed a remarkably good Budget from the Chancellor. Reducing business taxes to promote growth to enable people to have the dignity of earning a living, rather than a life on benefits, should be applauded on both sides of the Chamber, not condemned. I trust that that will be the Government’s focus over the next four years.

London has done particularly well out of the Budget, but I have not heard many details mentioned in the Chamber. The Chancellor has invested £80 million in Crossrail 2, which will be this country’s single biggest transport operation outside HS2 and something that we clearly need to get on with. I am looking forward to Crossrail 2 enhancing north-west London and my constituency in particular. It will be excellent for everyone involved in transport across London. Transferring business rates powers to the Mayor of London and London councils is remarkably important and will mean that the transport projects that London desperately needs will be funded by the business rates paid by London’s businesses, with that money being appropriately retained. Kick-starting the redevelopment of Old Oak Common will be central to the generation of new homes, new jobs and new businesses and a much better transport infrastructure for London.

Combating rough sleeping across the country is important. Ensuring that people do not experience a second night out is vital, particularly in London. I ask the Chief Secretary to the Treasury, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands), to make it clear when he replies to the debate how much of the money will go to London, because London has the biggest homelessness problem and we all want to see it combated. I recently visited FirmFoundation in my constituency, which does a brilliant job of dealing with single homeless men, but it needs additional resources to assist such men and to enable them to get back into a proper home and get their lives back together again. It desperately wants to know how it can apply for the extra money being made available, so I trust that we will hear more details later.

In contrast to my hon. Friend the Member for Bedford (Richard Fuller), I applaud the Chancellor for introducing the sugar tax. Given that behaviours can be driven by taxation, something of which I strongly approve, the Chancellor has missed an opportunity. I welcome the increase in tobacco duty, particularly on rolling tobacco, to encourage people to give up smoking. However, given that the Chancellor has said that the sugar tax will be spent on things to encourage a reduction in obesity, let us drive behaviour by adding additional duties. Just a penny increase on every cigarette smoked in this country would raise £500 million, which could be invested in initiatives such as encouraging people to give up smoking or, even better, not to start in the first place.

The other issue that I want to mention is something that is not going to go away: seeking justice for Equitable Life policyholders. I had hoped that we would hear something in the Budget about further compensation for both the pre-1992 trapped annuitants and the people who have not received compensation thus far. Let me put the Chancellor on notice that we will continue our campaign until we get justice for those who suffered as a result of that terrible scandal.

Budget Changes

Bob Blackman Excerpts

Monday 21st March 2016 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

Does my hon. Friend agree that the best way to reduce the welfare bill is to create more jobs and to give people the opportunity to have the dignity of earning their own living, rather than being stuck in a life on benefits?

[Mr Gauke]

My hon. Friend is absolutely right, and that is why all of us in the House should be delighted that we have record numbers of people in work.

Equitable Life

Bob Blackman Excerpts

Thursday 11th February 2016 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

I beg to move,

That this House congratulates the Government on providing a scheme to compensate victims of the Equitable Life scandal; welcomes the Government’s acceptance of the Parliamentary Ombudsman’s findings in full; notes that the Parliamentary Ombudsman recommended that policyholders should be put back in the position they would have been in had maladministration not occurred; further notes that most victims have only received partial compensation compared to the confirmed losses and that the compensation scheme is now closed to new applicants; and calls on the Government to ensure that the entire existing budget allocated for compensation to date is paid to eligible policyholders and to make a further commitment to provide full compensation for relative losses to all victims of this scandal.

I draw Members’ attention to the fact that I am the co-chairman of the all-party parliamentary group for justice for Equitable Life policyholders. I share that honour with the hon. Member for Leeds North East (Fabian Hamilton), who regrettably has to be in another debate, otherwise he would have been here. I hope that he will be able to get here and put his point of view before we conclude. The all-party parliamentary group is one of the largest groups in Parliament, if not the largest group, with 195 members drawn from all political parties.

When I was elected in May 2010, I signed only a limited number of pledges. One that I was very happy to sign, having investigated the matter fully, was a pledge to seek justice for Equitable Life policyholders. There is no doubt that this has been an outrageous scandal in respect of the length of time it has lasted and the repeated failure of Governments of all persuasions adequately to compensate people who were the victims of a scam. These were hard-working people who invested their life savings in a pension scheme that they believed was secure.

We all know that when one invests on the stock market or in such schemes, the market can go up or down. The difference between this scam and other such schemes is that Equitable Life went round inducing people to put their life savings into it, promising huge bonuses and payouts. It swept up enormous amounts of money and numbers of people who thought that it was a great scheme. In reality, the scheme could not finance itself. It could never meet the commitments that it had made. That was very dangerous, but the regulator knew that it was going on, as did the Government and the Treasury. They conspired to prevent it becoming public knowledge so that people carried on investing their money and losing money.

To make matters worse, it took not only court action, but the Parliamentary and Health Service Ombudsman to bring to the attention of the public that this was maladministration of the worst kind. The last parliamentary ombudsman made it clear in her excellent report that Equitable Life policyholders who had suffered a relative loss should be put back in the position they would have been in had they not suffered as a result of this scam. I seek to ensure in this Parliament, as we did in the last, that all Equitable Life policyholders are given the compensation they are due.

[Sir Edward Leigh (Gainsborough) (Con)]

After all the debates, the truth is that 95% of Equitable Life with-profits policyholders have received just 22% of their relative losses. That is the bottom line, is it not? The Government have a responsibility, given the maladministration that clearly happened, to help the many elderly people who have faced such appalling losses.

[Bob Blackman]

I thank my hon. Friend for that clear statement.

There are three sets of policyholders: the pre-1992 trapped annuitants, who were to get not a single penny under the compensation scheme; the with-profits annuitants, who were to get 100% compensation; and the pension holders, who got 22.4% of their relative losses, as my hon. Friend said. The coalition Government set up a compensation scheme, which I was pleased to support. However, it is a scandal that if someone purchased their policy on 31 August 1992, they got nothing, but if they purchased it on 1 September 1992, they got 100%. The rationale was that if the pre-1992 trapped annuitants had looked at the regulated accounts, they could have seen that there was a problem and that it was a scam. The reality is that when people sign up to such schemes, they do not expect to have to do that. I applaud the Government for taking steps, following the legislation, to partly compensate the pre-1992 trapped annuitants.

[Robert Neill (Bromley and Chislehurst) (Con)]

My hon. Friend has done great work with the other members of the all-party parliamentary group. I apologise, Madam Deputy Speaker, for the fact that, as you know, for a number of reasons I will not be able to stay for the whole debate. Many of my constituents were victims of this scam. Does he agree that when there has been a failure of regulation, as there was in this case, the Government essentially stand behind the regulator, so the moral responsibility ultimately falls on the Government, regardless of party? Although the coalition did something, the financial constraints that enabled it to argue that it was not able to do as much as we would have wished at that time are beginning to ease. Do not decency, honesty and equity demand that we revisit the amount of compensation that is due to these people, who saved and did the right thing, and who, frankly, have been let down by Government agencies as much as by Equitable Life?

[Bob Blackman]

I thank my hon. Friend for that clear conclusion.

The Government allocated £1.5 billion of compensation to policyholders who had lost money. Some £45 million was then promised and delivered to the pre-1992 trapped annuitants. The Chancellor accepted at the Dispatch Box in November 2010 that the total loss was some £4.1 billion, so the shortfall in compensation is £2.6 billion.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I congratulate the hon. Gentleman on bringing this issue forward for debate in the Chamber. I am sure that, like me, he has received representations from elderly decent people who have done the right thing throughout their life and who invested in Equitable Life in order, they thought, that they had a secure pension in the long term. The Government need to foster a savings culture and promote pensions. Does he not think that the failure to compensate people in full for what they did responsibly and in good faith risks undermining the culture that we need to develop for the future of this country?

[Bob Blackman]

When people make an investment decision, they understand that the market can go up or down. What made this scheme different from other investment choices was that it was a scam, and we should recognise it as such. It was a scandal. There is a moral duty, as hon. Members have said, on the Government to provide full compensation.

What has changed is that the Government set a time limit for the submission of new applications for compensation and said that they had to be in by 31 December 2015. Therefore, we now know the total number of people who are due compensation and can look at how the compensation scheme is operating. I have no doubt that the Minister will outline the progress that has been made in compensating individual policyholders.

I want to draw attention to two elements. A contingency fund of £100 million was deliberately set aside because, at that time, it was not known how many policyholders would need to be compensated. Also, because it has not been possible to trace a large number of policyholders—I think it is about 110,000—there has been an underspend of some £39 million. My first ask of the Minister is that that £139 million goes to the people who have suffered loss. That would not cost the Treasury anything because it has already allocated that money.

[Rachael Maskell (York Central) (Lab/Co-op)]

I thank the hon. Gentleman for securing this debate. This is an important matter for my constituents, particularly those who worked at the carriage works in York, which has closed, many of whom have suffered from mesothelioma. For some of them, it is too late. Is not expediency an important criterion for the Government to consider so that the survivors have the opportunity to receive compensation?

[Bob Blackman]

I thank the hon. Lady for that intervention.

Because of the different categories of policyholder, the pre-1992 trapped annuitants—of which 9,000 are still alive—have a minimum age of 88, and most are in their late 80s or early 90s. They are coming to the end of their lives, and it is right that they should seek and receive compensation. It is wrong and reprehensible that some of those individuals who invested their money have had to exist on pension credit, when they expected to have a proper pension scheme. Those 9,000 people should receive the £100 million contingency fund, which would lead roughly—I will leave the Minister to consider the detail—to an average of about £12,000 compensation each. That would be a dramatic change for those individuals who are coming to the end of their lives.

[Julie Cooper (Burnley) (Lab)]

I thank the hon. Gentleman for securing this important debate on a matter that affects a number of my constituents. The Government have cited affordability constraints as a reason for not bridging the gap and providing full compensation. Given that we are now in 2016, and the Chancellor constantly tells us that the economy is in a far stronger position, should we urge him to look again at the issue, so that those who have been so badly affected and who have worked all their lives and invested in a prudent fashion, should be compensated?

[Bob Blackman]

I agree wholeheartedly with the hon. Lady. We now know how many victims there are, and what the payouts have been. For with-profit annuitants, 38,135 victims have received £336 million, and those payments will continue over the next few years. However, 890,472 victims have received only 22.4%, and it has been difficult for members of the scheme to understand the basis on which that has been delivered. As has been mentioned, the Government said that they could not afford all that money to pay people out, but people who are in that position will need compensation over several years. They do not need all the money to be put into the scheme upfront; they need it to be spread over a number of years while they are pensioners. As the economy recovers, the Government should supply additional funds, as the Treasury can afford it, to top up the scheme and ensure that those who suffered relative loss receive the full compensation package due.

[Mr Charles Walker (Broxbourne) (Con)]

My hon. Friend mentions the hundreds of thousands of people who are waiting for full compensation. How much additional money does he feel that the Government will have to come up with over that compensation period?

[Bob Blackman]

We must find a further £2.6 billion to meet the commitment that all of us signed up to. Those of us who made that pledge said that we wanted full and fair compensation, and the Chancellor made it clear at the Dispatch Box that that was the figure, although he was only able to come up with £1.5 billion at the time. The shortfall is now £2.6 billion. I could go through a whole list of other things that the Chancellor has found money for but that have perhaps less merit than the plight of those elderly people who invested their money.

I do not expect the Minister suddenly to say, “Don’t worry, we’re going to provide all the money. Here it is”—it would be good if he did—but the Chancellor will be at the Dispatch Box on 16 March to deliver the Budget, and I hope that he will announce further compensation for the pre-1992 trapped annuitants so that they receive full compensation. I also hope he will confirm that none of the money that has already been pledged will be clawed back at the end of the scheme, and that further moneys will be made available as and when that is allowed in the Treasury forecast.

[Mr Christopher Chope (Christchurch) (Con)]

I am grateful to my hon. Friend for all his work on behalf of the victims of the Equitable Life saga. It surprises me that the Treasury has not yet conceded that it will have to spend the £139 million that it has in its coffers on this compensation, as it expected to, rather than take it as a windfall. Surely that is the starting point.

--- Later in debate ---

[Bob Blackman]

I completely agree with my hon. Friend—that is the starting point, but to be fair to the Treasury, we expected and hoped that the agency would be able to trace more victims of the scandal so that they could receive the compensation due. Tracing has taken place over an extended period, and I applaud the Government for using many different means to try to trace those individuals. Some people will have died, some have moved multiple times, and some were in all sorts of pension schemes that then moved on. Some people had small pension policies and may not have seen any point in requesting compensation. However, we now know exactly how many victims there are, and there is no excuse for retaining the contingency or the underspend.

I know that a number of Members wish to speak, so in conclusion, this is all about justice for people who have suffered loss. Indeed, not only did they suffer that loss, but it was avoidable. The Government, the company and the regulator knew that the scam was going on, but it was too big to fail because had it done so, the Government would have had to come up with all the compensation straightaway. This is a matter of justice, and on behalf of the all-party group for justice for equitable life policyholders, I pay tribute to the Equitable Members Action Group for its wonderful work over the years in bringing the plight of those people to light in both the public eye and in Parliament. The fight will go on until every single policyholder who suffered relative loss is receiving full compensation. I invite the Minister to receive comments from across the House, and to do the right thing by people who have suffered injustice.

--- Later in debate ---

[Bob Blackman]

I thank hon. Members and all three Front-Bench speakers for the constructive and fair way in which the debate has been conducted. Almost 2% of the population have been affected by this scandal, and we have a duty to ensure that they are given full compensation for the loss they have suffered.

I thank the Minister for laying out his argument, and I thank those who have contributed on the personal views of different constituents. I listened carefully to the Minister, and the Treasury accepts that the compensation bill for Equitable Life policyholders is £4.1 billion. Of that, £1.5 billion has been paid out, which leaves a balance of £2.6 billion.

The Minister rightly said that compensation payments will be made well into the next decade for those who have suffered loss. It therefore seems reasonable to me and, I think, to Members across the House—the Chancellor will no doubt be listening to this—that as the economy recovers, our long-term economic plan comes to fruition and we reach a position where the budget is in balance, those who have saved for their retirement are given full and proper compensation.

As the economy recovers, therefore, the Government can top up the scheme if they choose to, and I urge the Chancellor to pledge to do that in his Budget speech on 16 March. As we reform pensions in other ways, we can then send out the signal to young—and not so young—people that it is right to save for the future and for retirement and that if such a scandal were ever to happen again, the Government would step in to protect the retirement incomes of those who do the right thing and save for their old age.

Question put and agreed to.

Resolved,

That this House congratulates the Government on providing a scheme to compensate victims of the Equitable Life scandal; welcomes the Government’s acceptance of the Parliamentary Ombudsman’s findings in full; notes that the Parliamentary Ombudsman recommended that policyholders should be put back in the position they would have been in had maladministration not occurred; further notes that most victims have only received partial compensation compared to the confirmed losses and that the compensation scheme is now closed to new applicants; and calls on the Government to ensure that the entire existing budget allocated for compensation to date is paid to eligible policyholders and to make a further commitment to provide full compensation for relative losses to all victims of this scandal.

[Madam Deputy Speaker (Natascha Engel)]

Order. Before we come on to the next debate, I inform Members that I am going to raise the speech limit on Back-Bench contributions to seven minutes, in order that they are aware that they have a little more time than is shown on the annunciator.

Oral Answers to Questions

Bob Blackman Excerpts

Tuesday 1st December 2015 Commons Chamber

[Mr Gauke]

My hon. Friend makes an important point. From September 2017, the Government are doubling the free childcare entitlement from 15 hours to 30 hours a week for working families with three and four-year-olds. That will be worth up to £5,000 per child. From early 2017, tax-free childcare will also be introduced, providing support worth up to £2,000 a year per child for working parents.

[Bob Blackman (Harrow East) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The First Secretary of State and Chancellor of the Exchequer (Mr George Osborne)]

The core purpose of the Treasury is to ensure the stability and prosperity of the UK economy. Today I can tell the House that the date of the Budget next year will be Wednesday 16 March.

[Bob Blackman]

My right hon. Friend has announced that the closure of the compensation scheme for Equitable Life policyholders will be at the end of this month. We will then know exactly how many claimants there are. Has he any plans to extend the amount of money that is being given to the victims of this scam?

[Mr Osborne]

I am, of course, always happy to listen to representations from my hon. Friend and others, but we have put a substantial sum of taxpayers’ money into compensating the people who lost out through Equitable Life. We have also ensured, through our payment system, that those payments have been made. That is why the scheme is coming to a close.