Financial Services: Mansion House Speech
Caroline Nokes Excerpts(4 days, 8 hours ago)
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Madam Deputy Speaker (Caroline Nokes)
Mr Speaker is very disappointed that the Chancellor of the Exchequer has not come to the House in person to update us on last Thursday’s Mansion House speech, which included important new policy announcements on a range of issues, including the consolidation of local government pension funds. I am sure that Members would have welcomed the opportunity to question the Chancellor personally on it. Mr Speaker is very sorry that the Chancellor has not seen fit to come here herself.
The Economic Secretary to the Treasury (Tulip Siddiq)
I apologise on behalf of the Chancellor for the fact that she could not be here. If there are any specific questions for her, I will ensure that she knows what they are, and that she personally writes to Members.
With permission, Madam Deputy Speaker, I will update the House on the Government’s work to support the growth of the UK economy. The financial services sector is the jewel in the crown of the UK economy, as I am sure everyone across the House will agree. It is one of our largest and most successful sectors, employing 1.2 million people and making up 9% of gross value added, and the UK is the second largest exporter of financial services in the G7. On Thursday night at Mansion House, the Chancellor placed the sector at the heart of the Government’s growth mission and, building on the economic stability and public investment that the Budget provided earlier this year, she set out a plan for investment and reform of the sector.
The plan builds on the rapid work that the Government have already done to support the growth of the sector. One week into office, the Government welcomed the biggest changes in the UK’s listings regime in more than three decades; in our first month we launched the landmark pensions review and in September we delivered the final stage of the post-crisis capital reforms for banks, working closely with the Bank of England, strengthening our banking system while also protecting lending to the wider economy.
The package that the Chancellor set out at Mansion House builds on those steps, beginning with a commitment to develop a comprehensive plan to grow our financial services sector. In spring next year, the Government will publish the first ever financial services growth and competitiveness strategy, giving the financial services sector the confidence it needs to invest in the long term by setting out our plans for the sector over the next 10 years. Published alongside our modern industrial strategy, it will be clear-eyed about our strengths, proposing five priority growth opportunities: fintech, sustainable finance, asset management and wholesale services, insurance and reinsurance markets, and capital markets, co-designed with voices across the financial services sector.
From the base of long-term stability, the Chancellor also laid the foundations for getting even more investment into our country. The Government have already confirmed our plans to capitalise our flagship investment vehicle, the National Wealth Fund, to invest in the industries of the future. To support investment in our green industries, the Chancellor’s speech confirmed the Government’s next steps to deliver a world-leading sustainable finance framework.
The Chancellor also set out our plans in another key area that I know has generated interest across the House: pension funds. The UK has one of the largest pension markets in the world, but pension capital is often not used enough to drive investment and growth in our economy. Thanks to the excellent work taken forward by the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Wycombe (Emma Reynolds), the Chancellor announced the interim report of the pensions investment review. The report sets out our plans to harness the collective size of our pension funds to create larger pools of capital for investment, supporting pension funds to invest at scale. To do that, we will deliver a significant consolidation of the defined contribution market and the Local Government Pension Scheme in England and Wales, providing better outcomes for savers while supporting investment for growth. Indeed, we could unlock around £80 billion-worth for investment in private equity and infrastructure through those actions alone, according to domestic and international comparisons.
Alongside economic stability and higher levels of investment, the Chancellor’s Mansion House speech put reform at the heart of the Government’s growth agenda. The Government’s approach to regulation is a core part of that. Across our economy, we will upgrade our regulatory regime, reviewing the guidance we give to the Competition and Markets Authority and other major regulators to underline the importance of growth. That includes our financial services regulators. While it was right that successive Governments made regulatory changes after the global financial crisis to ensure that regulation kept pace with the global economy of the time, it is also important that we learn lessons from the past. Those changes have resulted in a system that sought to eliminate risk taking, and in some cases they have had unintended consequences that we as a new Government must now address.
Regulation has costs as well as benefits. It has costs for firms when they are spending large sums on compliance and not using that money to innovate and to grow, and it can have costs for consumers, for example by restricting access to financial advice that could help them to plan for the future. While maintaining important consumer protections and upholding international standards of regulation, we therefore feel that now is the moment to rebalance our approach and take forward the next stage of reforms needed to drive growth, competitiveness and investment. To support that aim, the Government issued new growth-focused remit letters to the financial services regulators to make clear that the Chancellor and I fully expect them to support the Government’s missions on economic growth.
The Financial Ombudsman Service plays a vital role for consumers in getting redress. That will not change, but reform is needed to create a sure environment. We will work closely with the Financial Conduct Authority and the FOS to develop a new agreement between the two institutions, with clear expectations on how they co-operate, including on historic market practice and mass redress events. The Government welcome the call for input that asks for views on how to improve the rules governing how the FOS operates.
The Government’s ambitions for reform are much wider than regulation. Building on our work to improve the UK’s listing regimes, we are unlocking funding for our capital markets and legislating to establish, by 2025, PISCES—the private intermittent securities and capital exchange system—which is an innovative new stock market to support companies to scale and grow. We are also supporting innovation in the financial services sector by launching a pilot to deliver a digital gilt instrument using distributed ledger technology, as my written statement sets out.
Insurance markets are pivotal to supporting growth and creating resilience by helping us to manage risk. The Government have launched a consultation on captive insurance, where a new approach could cement the UK’s position as a leading financial services centre.
As the House will know, this Government prioritise the growth of the mutuals sector. We have launched a call for evidence on the credit union common bond, asking regulators to report on their mutuals landscape to support their growth, and welcoming the establishment of an industry-led mutual and co-operative business council.
The Chancellor also published the national payments vision to set out the Government’s ambition for this vital sector, ensuring that our approach to regulation allows firms to grow and innovate, and including decisive action to progress open banking and to support our fantastic fintech businesses.
Finally, we are working with tech platforms and telco networks to reduce the scale of fraud originating on their platforms. The Chancellor, the Home Secretary, and the Secretary of State for Science, Innovation and Technology, have written to leading tech and telecom companies, calling on them to go further and faster, with clear action to reduce the level of fraudulent activity that exploits their platforms and networks. We will be monitoring that closely in the coming months.
This is a significant package to support the growth of the financial services sector and invest in the wider economy. I have heard lots of murmuring from Opposition Members while I have been speaking, which I hope shows their approval for our overall package. I look forward to working across the House to deliver these important reforms from the first Labour Mansion House speech in 14 years.
Tulip Siddiq
I thank the Opposition spokesperson for his comments. I think he welcomed the news, although I am not quite sure. He spoke a lot about the ex-Chancellor, the right hon. Member for Godalming and Ash (Jeremy Hunt), who did a lot of work in this space. I remind the House that the ex-Chancellor said that there was
“Much to welcome in the Chancellor’s Mansion House speech today.”
The Opposition have said that these are “broadly” good reforms; I thought I would remind the Opposition spokesperson of that. I also remind him that we are not interested in sticking-plaster politics. We have a long-term vision for the economy, which is why we are looking at using the national wealth fund and the industrial strategy to ensure that we grow the economy.
I will answer a few of the hon. Gentleman’s questions, but if I do not get to all his pension questions, the Minister with responsibility for pensions is happy to meet him. I point out that our public services are crumbling, and that we inherited a £22 billion fiscal black hole from the previous Government. We had to make difficult choices to fix the foundations of the country and restore desperately needed economic stability in order to allow businesses to thrive. He pointed out that hospitality businesses were contacting him. More than half of employers will see either a cut to or no change in their national insurance bills. To support the hospitality industry, we are permanently cutting business rates for retail, hospitality and leisure from 2026. That comes alongside a 40% relief on business rate bills next year for thousands of premises.
We are committed to delivering economic growth by boosting investment and rebuilding Britain, which is exactly what our Budget did. The interim report of the pensions investment review, which the hon. Gentleman had a lot of questions about, put forward proposals to drive scale and consolidation in the defined contribution workplace market. The Local Government Pension Scheme is still consulting. The final version will come out in spring next year, but as I said, the Minister for pensions is happy to speak to him. There is international industry consensus that the scale and consolidation benefit investment and savers, and that these measures could unlock around £80 billion of productive investment.
On the hon. Gentleman’s questions about the reforms taking autonomy away from local authorities, under the proposals in the consultation, each administrating authority would retain control over the most impactful decisions by setting their investment objectives and strategic asset allocation. The consultation proposes that implementation of the chosen strategy be delegated to investment experts in the asset pool, who are best placed to execute the investment objectives to meet the desired investment outcomes. I hope that reassures him that we will not take autonomy away from the authorities.
The hon. Gentleman talked about the overall package of boosting UK economic growth and benefiting pension scheme members. The objectives are complementary. Driving consolidation and tackling waste in the pension system ensures that schemes can achieve the necessary economies of scale and efficiencies to pursue diversified investment strategies. I reassure him that assets such as infrastructure and private equity are seen as part of the balanced portfolio, and can enhance savers’ returns. They will boost economic growth, so he does not need to worry about that, and we will benefit the communities where pension savers live.
The hon. Gentleman spoke a lot about what the previous Government did. They talked a lot about pensions, but they actually never did anything. We have shown in the first few months of a new Labour Government that we mean business, and we have our action ready to go. By next spring, he will see the full details in the Bill.
Madam Deputy Speaker (Caroline Nokes)
I call the Chair of the Treasury Committee, Dame Meg Hillier.
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
I draw the House’s attention to the fact that a family member works for Allied Irish Bank, and to the fact that I am a trustee of a pension fund.
I want to ask my hon. Friend about the remit letter for the Financial Conduct Authority. Just as the pushmi-pullyu in “Dr Dolittle” did not know which way to go, there is a danger that if we try to pursue the secondary objective while protecting consumers, consumers could lose out. Could she set out clearly how she expects the FCA to ensure that it maintains its approach of protecting consumers? Could she pick up on the comment from the hon. Member for Wyre Forest (Mark Garnier) about whether there will be any move to mandate pension funds to invest in UK infrastructure?
Tulip Siddiq
I thank my hon. Friend for that question. On pension funds, we are not looking at taking that action right now, but I will let her know when we take further action. On the remit letters, we are committed to financial inclusion and to ensuring that consumers are looked after. That is why, in their remit letters, I have asked regulators to have regard to that, and why I have made it clear that our top priority is to promote growth and international competitiveness. The laser focus, in the remit letters, is on growth, but they are not intended to encompass the entire scope of the Government’s vision for the sector. She should be in no doubt that consumer outcomes are top of our agenda. I have made that clear in every meeting I have had with the regulators.
Daisy Cooper (St Albans) (LD)
We welcome any reforms that will provide an effective route to growth without putting undue pressure on people’s savings, so we look forward to seeing more details from the Government. In the meantime, I press Ministers on their broader goal of getting investment in innovation. Constituents in St Albans report that their small and medium-sized enterprises have invested in innovation. They have successfully applied for research and development tax credits, only for His Majesty’s Revenue and Customs to claw them back. It is right that HMRC tackles errors and fraud, but thanks to Conservative inaction, it is now widely accepted that a number of SMEs are seeing their valid claims rejected or withdrawn, while others are simply not applying for the tax credits at all. Will the Minister please conduct an urgent review of HMRC’s approach, with a particular focus on whether it is undermining the growth and innovation of the SME sector?
Fiscal Rules
Caroline Nokes Excerpts(3 weeks, 4 days ago)
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The Chief Secretary to the Treasury (Darren Jones)
With your permission, Madam Deputy Speaker, I would like to make a statement to the House about the action the Chancellor will take this week to fix the foundations and rebuild Britain.
Economic growth and modern public services can only be built on strong foundations. That is why this Government have brought political and economic stability back to Britain. After years of chaos from the Conservative party—chaos that cost families, businesses and public services dear—the British people are now rightly looking to this new Labour Government to clear up the mess from the last Government, fix the foundations and rebuild Britain. That is the change that my party promised the country, and it is the change that we will deliver.
To deliver that change, the fiscal rules that the Chancellor will set out this week will establish the basis for stable fiscal policy, meaning careful management of day-to-day spending and responsible long-term plans to invest and grow the economy.
As we committed to in our manifesto, the Government will have two robust fiscal rules that will guide the decisions we take. The first is our stability rule: we will pay for all day-to-day spending on public services from receipts. The budget was last in surplus under the last Labour Government, and this Labour Government will return the public finances to that position. The second is our investment rule, which will get debt falling as a proportion of our economy. It will ensure that we can secure the investment that our economy needs to grow, and to generate jobs and opportunities for people across the United Kingdom of Great Britain and Northern Ireland, while maintaining a strong fiscal anchor and ensuring that our debt burden falls over time.
The plans that we inherited from the last Government would have seen public sector investment decline to the lowest level in more than 10 years. The path of declining investment is the path of a declining nation, and we refuse to follow it. Instead, we will seize the huge opportunities of the future to support the enterprise and talent that this country creates.
The Government recognise that sustained public investment is a crucial driver of long-term economic growth, giving the private sector the confidence to invest too, but our ambitions for public sector investment must be balanced against the need to maintain debt on a sustainable trajectory and ensure that we invest every pound of taxpayers’ money responsibly. That is why I will deliver a 10-year national infrastructure strategy next spring, working with colleagues across Government, the nations and regions, and with our mayors and the private sector, to set out a robust long-term strategy for sound investment. That is also why our new approach to overlapping multi-year spending reviews will improve the way that we allocate and spend capital, and why the Chancellor of the Duchy of Lancaster and I will lead the new national infrastructure and service transformation authority, which will drive better delivery of major projects and infrastructure across the country. In addition, there will be the work of the new office for value for money and the National Audit Office. Those robust guardrails will ensure that our capital spending is value for money, and that our financial investments deliver a positive return for the Exchequer.
Finally, the Chancellor has been listening to the views of institutions such as the International Monetary Fund, and to expert economists. As she has set out, that is why the Treasury has been reviewing the right measure of debt to target in the fiscal rules ahead of the upcoming Budget. The details of that policy will be announced to the House in the Chancellor’s statement on Wednesday, alongside an economic and fiscal forecast produced by the independent Office for Budget Responsibility. In the usual way, the fiscal rules will be published in a draft charter for budget responsibility, on which Members will vote in due course. I commend this statement to the House.
Madam Deputy Speaker (Caroline Nokes)
I call the shadow Chief Secretary to the Treasury.
Darren Jones
I know that the Chancellor looks forward to giving evidence to the Treasury Committee following the Budget in the normal way. To answer the question, the national infrastructure strategy will, for the first time, bring together all the infrastructure and major project asks of Whitehall Departments into one place alongside the economic infrastructure assessments. This will inform the multi-year spending reviews, which will now overlap, so that when an election comes up, we do not again end up with a Government making no spending plans whatsoever, or announcing a load of projects when there is no money to pay for them. We are confident that this better approach to allocating capital will mean that investment under this Government will improve the productivity of our public services and the growth of our economy, and mean a better return for British taxpayers across the country.
Daisy Cooper (St Albans) (LD)
Under the Conservatives, the fiscal rules changed five times in seven years, so a change to fiscal rules is not that unusual in and of itself. However, does the Minister agree that what would be completely unforgivable is a repeat of the Conservatives’ disastrous mini-Budget, in which they tried to pursue £40 billion of unfunded tax cuts, and which left a long shadow on our public finances? Will he assure us that any additional borrowing that the Government seek will only be for productive investment that will generate growth and fix our crumbling hospitals and schools?
VAT: Independent Schools
Caroline Nokes Excerpts(1 month, 2 weeks ago)
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Richard Tice
No, we are short of time.
As a former governor of an independent school, I know that that approach would have been welcomed by the independent sector. Instead, the choice that the Government have made will do the opposite of what they intend. It is not going to raise anything like the funding they think it will: almost 100,000 children will leave the independent sector, many of whom have special educational needs, so it will earn almost nothing.
I spoke earlier about the unintended consequences of this policy. A parent in my constituency has written to me. She has two children with special educational needs at private school, and she cannot afford the VAT, so they are going to go into the state system. The nearest place is an hour away, so now the local authority is going to pick up the cost of the taxi service of over £20,000 per child. Those are the unintended real-world consequences of this choice by this Government. Most shamefully of all, because there is such a lack of capacity in so many areas and so many local authorities, that choice is going to result in bigger class sizes. That means more pressure on hard-pressed teachers in the state system, at a time when we are trying to ease that pressure. This choice is going to damage the education of many hundreds of thousands of children—exactly the opposite of what is intended.
I say to the Minister and his Government that they could choose differently. They could pause this policy, work with the independent sector and gain much more universal support. Instead, we have legal challenges going ahead. As I finish, I ask the Minister to answer this simple question: if those legal challenges end up in the European Court of Human Rights and it rules that the policy is unlawful, will his Government comply with that ruling?
Baggy Shanker (Derby South) (Lab/Co-op)
Thank you, Madam Deputy Mayor—[Interruption.] I have done it again, haven’t I? I am sorry, Madam Deputy Speaker, but that is my local government background.
Education is the foundation upon which we build the future of our country. It opens doors, breaks down barriers and creates opportunity. Yet today so many of our young people are being left behind by an education system that is struggling to meet their needs. Labour is committed to changing that by driving high and rising standards in all areas in our state schools, ensuring that every child, no matter where they come from, has the same access to excellent education.
When the Tories left office—let us use the word “left”—they also left behind a trail of devastation across our education system. Schools were left crumbling, standards were left falling and they had the audacity to claim that they had “maxed out” on support for our children. We know that that could not be further from the truth. Our state schools are in desperate need of investment, and that is why Labour is making the tough political and fiscal choices necessary to prioritise our children’s future.
One of the toughest yet most significant steps we will take is to levy VAT on private schools and end their business rates exemptions. By doing so, we will generate over £1.3 billion. That money will be reinvested directly into the state education system, benefiting the 93% of children who attend state schools. It is time to put an end to a system that allows a privileged few to enjoy tax breaks while the majority of our children are left with lesser funded schools, and we know that is true.
What will this investment achieve? It will be used to recruit and retain thousands more teachers, ensuring that every child has access to the quality education that they deserve. We will reform Ofsted, improve our schools, and provide early speech and language intervention for our youngest children. Mental health counsellors will be placed in every secondary school, because we understand that a child’s wellbeing is as important as their academic success. We will expand careers advice and work experience, giving students the skills and confidence to shape their own futures.
We know that this works. We need look no further than my own constituency where, as leader of the council, I was proud to introduce the Derby promise. The city of Derby has made—
Madam Deputy Speaker
Order. I am going to call the Front-Bench speakers at 3.59 pm. That means that the remaining Members are not all going to be called, unless they choose to make one-minute contributions, which I cannot recommend to anyone. This is just to alert you that there will be some disappointment.
Stephen Morgan
I am going to make some progress. The right hon. Gentleman spoke earlier. I know that many Members are concerned about children with SEND. [Interruption.] Members can shout as much as they like, but I have some really important points to make about SEND. I know I speak for the country—the right hon. Gentleman certainly does not. I assure Members that the Treasury has sought to ensure that these changes do not disadvantage pupils who need provision that is unavailable in the state sector.
Let me be clear: pupils who need a local authority-funded place in a private school, including those with a local authority-funded EHCP, will not be affected by the changes. That is because local authorities are able to reclaim VAT when they are charged. For other pupils, this change should not mean that they will automatically face 20% higher fees. The Government expect private schools to take steps to minimise fee increases, including through reclaiming VAT incurred in supplying education and boarding. I also note that IFS analysis shows that the number of children in private schools has remained steady despite a 20% real-terms increase in average private school fees since 2020 and a 55% rise since 2003.
Members from both sides of the House mentioned transfers to the state-funded sector. There are always some pupils moving between the private and state-funded school sectors. Approximately 50 maintained private schools close every year, for a range of reasons. Where schools do close, pupils may transfer to another private school or move into the state sector. We simply do not accept, in the case of recent closures, that this has had any connection to our policy on VAT. Quite simply, the evidence does not bear that out. The number of pupils who might switch following these changes represents a very small proportion of overall pupil numbers in the state sector. Any displacement is likely to take place over several years, and will mostly come from parents choosing not to place their children in the private sector to begin with, rather than children leaving the private sector. All children of compulsory school age are entitled to a state-funded school place if they need one. I understand that moving schools can be a challenging experience, and local authorities and schools already have processes to support pupils moving between schools.
A number of Members also raised concerns about capacity. There are always a range of pressures on state-funded school places, and the Department for Education works to support local authorities to ensure that every local area has sufficient places for children who need them. That is business as usual and local authorities and schools already have a range of options to increase capacity where it is needed. We are confident that the state sector will be able to accommodate any additional pupils and that there will not be a significant impact on state education as a whole.
I congratulate my hon. Friend the Member for North East Derbyshire (Louise Jones) on her maiden speech. I know she will be a real champion for children and young people in her community. I also welcome my hon. Friend the Member for Bury North (Mr Frith) back to this place and congratulate my hon. Friend the Member for Glasgow East (John Grady) on his maiden speech—he spoke eloquently and with passion about his constituency and the needs of his constituents. It was also a real pleasure to hear the maiden speech from the hon. Member for Isle of Wight East (Joe Robertson), who described so well his beautiful constituency, a place I enjoyed holidaying in as a child. I look forward to working with him on issues affecting the Solent region. My hon. Friend the Member for Tipton and Wednesbury (Antonia Bance) gave an excellent maiden speech. It was evident that she will be a strong voice in this place, nationally and for her community. I congratulate the hon. Member for Horsham (John Milne) on his maiden speech, and I wish him well on his unexpected new role in this place and on delivering opportunity for all.
The hon. Member for South Shropshire (Stuart Anderson) and others mentioned military families; I know that colleagues in the Ministry of Defence and the Foreign, Commonwealth and Development Office will closely monitor the impact on affected military families, considering support via the continuity of education allowance scheme. Small faith schools were raised by a few Members; those schools meet the needs of dedicated faith communities, often at low cost. I know that Treasury colleagues have met representatives from those schools to ensure fairness. A number of right hon. and hon. Members spoke about the impact assessment. As my hon. Friend the Exchequer Secretary to the Treasury set out, we are considering the impact of the policies and will publish a tax information and impact note at the Budget in the usual way.
In conclusion, this Government were elected to deliver change across our country, not least in our schools. Our mission to break down the barriers to opportunity is exactly what our country needs. This party is showing that education is once again at the forefront of national life. I urge Members across the House to demonstrate that by voting against the motion.
Question put.
The House proceeded to a Division.
Madam Deputy Speaker (Caroline Nokes)
Will the Serjeant at Arms investigate the delay in the No Lobby?
Winter Fuel Payment
Caroline Nokes Excerpts(2 months, 1 week ago)
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Dame Harriett Baldwin (West Worcestershire) (Con)
On a point of order, Madam Deputy Speaker. This is the second Government Minister we have heard from the Dispatch Box today, yet only moments ago we saw the Chancellor sitting on the Front Bench. It was the Chancellor who chose to spend billions on setting up Great British Energy. It was the Chancellor who chose to spend billions giving pay rises to their union paymasters. It was the Chancellor—
Madam Deputy Speaker (Caroline Nokes)
Order. I thank the hon. Lady, but she will be aware that that is not a point of order; it is more of a speech that she is seeking to make. Perhaps she will find an opportunity to contribute in the debate.
James Murray
Thank you, Madam Deputy Speaker. The hon. Member who just intervened, and indeed everyone on that side of the House, might like to reflect on what the legacy of the last Government truly was. It was one of irresponsible overspending, of uncosted commitment after uncosted commitment, and of Ministers running away from taking difficult decisions. As a direct consequence, when we came to power we were faced with a £22 billion black hole in the public finances for this year alone.
James Murray
My hon. Friend is absolutely right. Frankly, it is time for Conservative Members to recognise and accept what they have done to this country, and to show some contrition and accept responsibility. However, no matter what the Conservatives choose to do, we are getting on with the tough decisions that are necessary in government. By changing the winter fuel payment and making it means-tested, we are beginning to take the necessary steps to address the black hole they created, while protecting the most vulnerable in society.
The Prime Minister has said that we must be prepared to be unpopular if we are to govern responsibly, which means facing up to tough challenges and tackling them head-on. The motion laid by the Opposition sets out several “regrets”, but they have never once shown regret for all the reckless decisions they took and the damage they did to our public services, public finances and economy. Our task now in government is to fix the mess they made and to give our country the chance of the better future we deserve.
Madam Deputy Speaker (Caroline Nokes)
I call the spokesperson for the Liberal Democrat party.
Madam Deputy Speaker (Caroline Nokes)
As the hon. Gentleman will know, the House is not counted, and the matter of quorum is not a relevant consideration at this time and therefore we shall move on.
Several hon. Members rose—
Madam Deputy Speaker (Caroline Nokes)
Order. I have no choice but to put a three-minute limit on Back-Bench speeches before I hand over to the next speaker, which I am very sorry to do. Members will be aware that more than 40 of you wish to take part. I call Priti Patel.
Josh Simons (Makerfield) (Lab)
I am glad that we are having this debate. Perhaps the Opposition and parts of the media are bored facing something that they have not seen for years—Government Benches packed full of Members representing all parts of the United Kingdom who respect each other and support the Government—because they have stoked a frenzy that I fear is at risk of obscuring the most important arguments for the changes that we are debating.
Yes, there is the economic argument, which matters. As the Office for Budget Responsibility and Institute for Fiscal Studies have recognised, this Government inherited public finances in a shocking state, in
“one of the largest in-year overspends outside of the pandemic”
in history—or, as one Member put it earlier, an “accounting error”. Unlike the rapid succession of Conservative Chancellors, our Chancellor has levelled with the British people and been transparent about the nation’s finances. Restoring stability means hard choices. This is not the first, and it will not be the last.
However, it is not the economic case that I wish to emphasise today, but the principled one. Let me make a general point about the arguments we make in politics. Sometimes we politicians can be too quick to hold up our hands and say that we have no choice—the lawyers required this or the economists required that. That can leave voters frustrated: “Why vote if the people we vote for are not in charge, but lawyers or economists are? Can the people we elect not control the things that affect our lives?” To restore trust in politics, we must show that politics matters. That is why it is important that we articulate what we do in terms of principles and choices.
To govern is to choose. Targeting winter fuel payments is a choice. However difficult and necessary, it is the right choice for two principled reasons. The first is about the moral purpose of the policy. Gordon Brown designed the winter fuel payment to ensure that nobody was at home cold because they could not afford to turn on their heating. It was a time when state pension rises were miserly and, as many found, insufficient to heat their homes. But let me note that pensioners were better off after the last Labour Government. One million were lifted out of poverty by 2004. The changes we are debating today do not move from that position. In a time when the state pension has risen by £900, and will rise again by as much as £400, the changes target the winter fuel payment based on the principle of need. That is the right principle.
Let me be clear: I do not believe that taxpayers—
Rachel Taylor (North Warwickshire and Bedworth) (Lab)
You say that our Chancellor and the Prime Minister are not here on the Government Benches, but where are your leader and your shadow Chancellor? They are not here either. You talk about means-testing being right: we have a difficult financial situation and difficult decisions that we have to take, so the right hon. Gentleman seems to agree with us on that.
Madam Deputy Speaker (Caroline Nokes)
Order. I appreciate that passions are running high this afternoon, and that there are many new Members in the House, but when we use “you” and “your”, we are referring to the Chair. There are good reasons for why we direct debate through the Chair. Please can Members remember that?
Sir Roger Gale
Thank you, Madam Deputy Speaker—I stand chastised. The Leader of the Opposition was in the Chamber earlier this afternoon, but I saw no sign whatsoever of the Prime Minister. However, the answer to the hon. Lady remains the same: the responsibility for this policy lies directly with the Chancellor of the Exchequer and the Prime Minister, and they are going to live to regret it.
Sam Rushworth
I absolutely do, and Members may recall that I came to this House last week and asked the Chancellor a question about my own constituents. I represent the snowiest and coldest constituency in England, and I have had deep concerns about those pensioners. However, I have studied the detail and listened to pensioners in my constituency. In the last week alone, it has turned out that several people who have come forward to me expressing concerns about this policy are people who could be claiming pension credit but are not.
I want to make a broader point about the winter fuel allowance. The winter fuel allowance was introduced under the last Labour Government in 1997, when the state pension was £3,247 a year. If that had increased at the rate of inflation, today it would be £6,200 a year. Thankfully, it is more than twice that. [Hon. Members: “Because of us.”] Conservative Members say that it is because of them, but, again, they may want to look at the record. In fact, under both the previous Labour Government and the previous Conservative Government, the state pension increased at above the rate of inflation, and I absolutely welcome that. The winter fuel allowance, however, has not increased for 20 years. So the winter fuel allowance, in real terms, has become less and less year after year. The point I am making is that we need to consider our people. If the Conservatives’ argument is that, after 14 years in government, people on the full state pension are £100 away from death and destitution, what have they been doing for 14 years?
We need a new settlement for the economy, and this Government are actually answering the concerns of my constituents, who live in cold, stone-built, badly insulated homes, and who lost out when the previous Government chose to cut the funding available to insulate homes. This Government are setting up Great British Energy, which will help to cut bills over the long term. People are poor and struggling to pay their bills not because we do not give away enough taxpayers’ money in small pockets of benefits here and there. What we need are higher wages and better pensions, and I have been convinced by the Chancellor’s arguments that, under this Government, the pension will rise at or above the rate of inflation year on year, while energy bills will fall.
Finally, my constituents would not thank me if I did not take steps to stabilise the economy, because we need to get NHS waiting lists down and we need—
Matthew Patrick (Wirral West) (Lab)
I am grateful to follow the hon. Member for Strangford (Jim Shannon). I have had a short time in this place, but I already know that he often sits in the Chamber and listens to everyone: to Members across the House. I listened to his points as well and will make these points to him. On this issue, like so many others, when it comes to our economic inheritance—which is a £22 billion in-year black hole—we have to make difficult decisions. We can choose to ignore the situation we are in and duck those decisions—the well-trodden path that was too often taken by the last Government—but the price of entry to that path is not free. There is a cost. It means accepting a failing economy and failing public services. It tries to shift the problem again and again to future generations. It is an easy path, but not a responsible one.
The alternative is that we govern as we campaigned—not just on economic stability but on credibility and truth in politics—and are honest with people about the mess that we are in and, crucially, about the path that we will take to bring about brighter days: to lower waiting times in our NHS, to get more teachers into our schools and more police on our streets, delivering again for people across the country.
Failure to deliver has become the norm; that must change. If we ignore the problems, we cannot fix them. Since records began, no Government front-loaded spending so much to leave the cupboard so bare for the second half of the year. That was an easy path, but not a responsible one. I believe that Opposition Members know that.
Indeed, there have been calls over the years from Conservative and Liberal Democrat Members to target winter fuel payments to those most in need. The Government are combining responsibility with compassion, and I know—
Dr Luke Evans (Hinckley and Bosworth) (Con)
On a point of order, Madam Deputy Speaker. I seek your guidance. I was under the impression that in the Chamber we should refer to Members, Friends or even the constituency. Is that correct?
Madam Deputy Speaker (Caroline Nokes)
The hon. Member is absolutely correct. May I just helpfully point out to all hon. and right hon. Members that, in seeking to make repeated interventions, they are actually cutting into each other’s time? I have made the point previously about the correct way to address each other, through me as Deputy Speaker. Interventions need to be a great deal shorter because they are just cutting into the time for the debate and there are an awful lot of Members who wish to contribute.
Nick Timothy (West Suffolk) (Con)
On a point of order, Madam Deputy Speaker. I would like advice from the Chair, please. Reportedly, more than 200 Labour MPs received more than £2 million in donations before the election from the trade unions. Before other Members give speeches about issues such as public sector pay, would it not be in order for them to declare that interest at the beginning of their speeches?
Madam Deputy Speaker
As the hon. Member will know, it is for individual Members to declare their interests, if one is applicable.
Laurence Turner
I declared my background in the trade union movement, and I note that the hon. Member for West Suffolk (Nick Timothy) wrote the manifesto, which he stood on, that proposed cutting the winter fuel allowance.
Now that the winter fuel allowance is to be means-tested, we must boost the uptake of pension credit. I welcome the measures Ministers have announced today, so that the allowance can be protected for the very poorest pensioners.
Dr Mullan
Does the hon. Member agree that it is deeply disingenuous for him and other Labour Members to talk about the drive to increase the uptake of pension credit? He knows full well that if the Government were able to do that, it would wipe out the saving that they are claiming to make. They do not actually want people to increase their uptake of pension credit, because the Government would not save any money.
Madam Deputy Speaker (Caroline Nokes)
Order. I remind the hon. Member that the word “disingenuous” is almost akin to suggesting that someone is lying. Perhaps he would like to withdraw his remark.
Several hon. Members rose—
Madam Deputy Speaker (Caroline Nokes)
I will reduce the time limit still further, to two minutes, after the next speaker.
Yuan Yang (Earley and Woodley) (Lab)
My volunteers and I have been out speaking to residents across my constituency every weekend since the general election. Like many others, Earley and Woodley is a very diverse constituency with diverse needs. Last weekend we spoke to relatively well-off pensioners who told us that they feel it is right that winter fuel payments be means-tested and that, with their sense of dignity and generosity, they do not need state aid in this respect.
Pensioners in other parts of my constituency are less well off, and I was shocked to find that one in three pensioners in my constituency who are eligible for pension credit, which is roughly 1,000 pensioners—as well as one in three across the UK who are eligible for pension credit, or 880,000—do not claim it.
Over the weekend I held one of my first constituency surgeries at the Whitley community development association café. A staff member told me that they talk to the pensioners who come in about the struggles they face with the cost of living crisis that has unravelled over the last few years. They talk to them about support, but these elderly people respond, “No, I don’t need benefits. I don’t need help.” I recognise that as part of the broader societal stigma around being a recipient of benefits and state aid, which this Government must challenge and defeat.
A compassionate, generous and dignified society recognises when people require help, when people do not require help and when people can help others, and accepts that people sometimes fall on hard times due to an accident, bereavement, illness or other reasons outside their control. For those who need help, it is not undignified to seek it. In fact, it is very important that every pensioner listening to my speech, whether they are in my Earley and Woodley constituency or elsewhere in the UK, knows how to seek help and can seek it if they need it. I am determined that we bring about a dignified and fair means-tested benefit and tax system. Fairness and dignity will keep that system functioning.
Members on both sides of the House have talked about civility. We too often hear about individuals and societal groups being pitted against each other. Pensioners in Earley and Woodley are part of the broader community, and they have children and grandchildren who work in hospitals, who require care, who are supported by teachers, who take buses and trains and, yes, who avail themselves of all the means of support provided to maintain our flourishing and cohesive society. It is unacceptable—
Ann Davies (Caerfyrddin) (PC)
It was only two months ago that Labour won a majority in the general election on a message of change. But in those two months the new Labour UK Government have refused to abolish the cruel two-child benefit cap and now seek to take away winter fuel payments of up to £300 from millions of pensioners across the UK, by limiting it to recipients of pension credit. Well, nothing has changed.
Some 68% of households in Carmarthenshire lived in homes with poor energy efficiency in 2022, and 60.4% of households in my Caerfyrddin seat live off the gas grid, often relying on oil as a heat source. But the price of oil is very volatile, and in winter we can see it going up by 20p or 30p a litre, causing uncertainty for people budgeting over the winter.
Not heating a home can have serious consequences. A cold home brings with it a higher risk of stroke, respiratory infection and falls or other injuries. The End Fuel Poverty Coalition estimated that nearly 5,000 excess winter deaths were caused by living in cold homes during the winter of 2022-23. And many older, vulnerable people have higher energy costs due to health reasons.
It is a shame that the Minister of State for Crime, Policing and Fire misspoke earlier this week, as the consideration of other options, such as a social tariff or different ways of means testing, would be welcomed. As constructive criticism, can the Government bring the winter fuel payment within the definition of a taxable income to ensure that pensioners get what they need?
In closing, I call on colleagues to consider whether they can justify—
Budget Responsibility Bill
Caroline Nokes ExcerptsWednesday 4th September 2024
(2 months, 2 weeks ago)
Commons ChamberRead Full debate Budget Responsibility Act 2024 View all Budget Responsibility Act 2024 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 4 September 2024 - (4 Sep 2024)
The Second Deputy Chairman of Ways and Means (Caroline Nokes)
I call Will Forster to make his maiden speech.
Mr Will Forster (Woking) (LD)
Thank you, Ms Nokes, for giving me this opportunity to make my maiden speech. Before I do, I pay tribute to the hon. Member for Southend East and Rochford (Mr Alaba), who spoke of his and his constituency’s proud military past. I am sure that he will see his constituency through these tough challenges and on to a brighter future.
It goes without saying that it is a great privilege and an honour of a lifetime to be here, having been elected by the people of Woking. I thank them for electing me as their Member of Parliament. However, I must begin by addressing the Bill and severe crisis facing my local authority, Woking borough council. Despite being relatively small, the Conservatives left Woking with more than £2 billion of debt following risky investment decisions. This legacy is one of negative equity, service cuts and unsustainable debt repayments. It could be argued that the Conservatives in Woking invented Truss economics before the former right hon. Member for South West Norfolk had her small stint as Prime Minister. What has happened in my constituency shows why the Bill is so important. I fear that, without support from the new Government, the situation in Woking, like the rest of local government, will only worsen. My constituents will suffer the most, and that is unacceptable when it is not their fault. I urge the Government to step in and provide the assistance we so desperately need to ensure that my community can recover and thrive.
Most people might think of Woking as a modern constituency, but it has a rich history that stretches back through the centuries. Woking was mentioned in the Domesday Book. Sutton Place, famous for being the former home of Paul Getty, dates from 1525, and is one of the oldest unfortified houses in the country. Woking palace—now sadly a ruin—was a royal residence for both Henry VII and Henry VIII. As a result, Woking football club, my local team, is affectionately known as the Cards, after Cardinal Wolsey.
Several Acts of Parliament have had an especially profound impact on Woking. For example, the Basingstoke canal was authorised by Parliament in 1778. The canal runs through much of Woking constituency. It has shaped our area, and is a popular cycling and walking route and a haven for nature. But like so many places in the country, Woking as we know it today was shaped by the railways. With steam, stone and iron, Woking was cast into the proud town it is today. In the mid-1800s we laid the foundations to become the great commuter town we are.
Woking is also a wonderfully diverse and welcoming place, home to the Shah Jahan mosque, the oldest in the country. A vibrant Muslim community has developed in the town as a result. More recently, we have welcomed Ukrainian refugees, and I attended many events to support our new Ukrainian residents with my predecessor, our former MP Jonathan Lord. That was a powerful example of cross-party co-operation, and I thank Jonathan for his service as Woking’s MP, especially on this humanitarian issue where there was no disagreement whatsoever. Although we were opponents at the last election, I wish him and his family well for the future. Woking’s MP before Jonathan was Humfrey Malins, who founded the Immigration Advisory Service in 1992, which to this day provides free asylum and immigration advice to those who need it. He got a CBE for his work. Woking has a proud history of electing MPs who welcome immigration, and I am pleased to follow that tradition.
Our town is also known for its connection to McLaren; it hosts its Formula 1 team and luxury cars are built there. I was privileged to make a visit only yesterday. As a young child of around 11, I remember watching with excitement as McLaren toured the town with its Formula 1 cars, driven by Mika Häkkinen, to celebrate their success. McLaren is winning again, much like the Liberal Democrats.
The town also takes great pride in being home to the World Wide Fund for Nature. We have pressing issues, such as sewage in our rivers and the fight against climate change. I am already working alongside the five other newly elected Liberal Democrat MPs in Surrey to hold Thames Water to account for sewage dumping in our local rivers and streams. One of my first acts as an MP is to bring all the surrey MPs together to meet Thames Water to petition it for improvements and a better service.
Woking is fortunate to be surrounded by green spaces. I love walking my dachshund Toffee on Horsell Common, where HG Wells famously landed his aliens in “War of the Worlds”. So it was not a great surprise when Ed Davey’s Liberal Democrats turned up and started campaigning with their out-of-this-world stunts. Of course, I’m only “woking”—I wouldn’t dare call my Liberal Democrat colleagues aliens.
Getting back to the matter at hand, my constituency has a much-loved local hospital, Woking community hospital. Despite feeling like I was born and bred in Woking, I was not actually born in the constituency. Actually, no one has been born in a hospital in Woking for generations. I was born in Frimley Park hospital, one of the nearby hospitals we depend on, as Woking lacks maternity services. However, Frimley Park is plagued with RAAC—reinforced autoclaved aerated concrete—and its future is far from certain. I will work with my hon. Friend the Member for Surrey Heath (Dr Pinkerton) to press the Government for a solution to rebuild Frimley Park hospital.
Another major issue is the cost of rent and mortgages. As someone under 40—just—I understand these issues deeply. They have been raised consistently by local people on the doorstep. The increased cost of mortgages and rents in the past two years is a further reason why the Bill is so important.
My journey into politics began because of Surrey county council’s failure to protect vulnerable children. At the time, it was rated the worst county council in the country because of that failure. We cannot allow vulnerable children to be failed again.
The wider theme of why I was elected, and indeed why so many of my hard-working Liberal Democrat colleagues have been elected, is that we understand our communities’ local issues. I have worked for 15 years in local government and served as deputy leader of Woking Council. I have seen first-hand the crippling issues that some councils face. When I look at the faces of the Liberal Democrat MPs here, I see people who have worked hard in local government for years. What a glorious theme for this new Parliament: a cohort of 72 who understand the local issues our communities face, and a force for good in the country and in the Chamber when we need it most.
The Second Deputy Chairman of Ways and Means (Caroline Nokes)
I call Jake Richards to make his maiden speech.
The Second Deputy Chairman of Ways and Means (Caroline Nokes)
I call Clive Jones to make his maiden speech.
Clive Jones (Wokingham) (LD)
Thank you very much for calling me, Madam Chair. I congratulate the hon. Member for Rother Valley (Jake Richards) on his very interesting speech—I learnt an awful lot about his constituency. I have also learnt a lot today about Southend East and Rochford, Portsmouth North and Swindon North, and especially about my colleagues, my hon. Friends the Members for Woking (Mr Forster) and for Chelmsford (Marie Goldman). I actually knew quite a lot about them before, but it was nice to hear some more. I particularly liked the speech from the hon. Member for Loughborough (Dr Sandher), who suggested that the Minister might like to get his chequebook out. Let me say to him, “If you are getting your chequebook out, I would like you to spend some money for the constituents of Wokingham.”
Members on these Benches have a strong sense of social justice. This comes to us from many directions during our lives. Fifty years ago, I had an inspirational social and religious studies teacher, John Featherstone, to whom I am grateful for helping to instil these values in me. This sense of social justice will, I hope, guide me during my time in this House. I am very pleased that John is up there in the Gallery today.
It is a pleasure to represent the constituency of Wokingham, whose boundaries somewhat changed at the last general election. I would like to pay tribute to my three predecessors, who each represented part of the constituency. From James Sunderland, the former MP for Bracknell, my constituency inherited the parishes of Finchampstead and Wokingham Without. I always found James approachable and straightforward, and I understand that his constituents found the same.
Sir John Redwood was the MP for the former Wokingham constituency for a remarkable 37 years—a tremendous stint of public service—during which he had a profound influence on public policy. He served in Margaret Thatcher’s Government as a junior Minister, and in John Major’s Cabinet as Secretary of State for Wales, where he is best known for his enthusiastic miming of the Welsh national anthem.
The wards of Thames and Twyford were represented by Theresa May—now Baroness May of Maidenhead—for 27 years. She was a dedicated public servant who served as Home Secretary and Prime Minister. She also has a well-deserved reputation among her former constituents, who hold her in high regard and talk about her warmly, with affection and with much respect. Although our politics are different, I wish all of my predecessors well in their future endeavours.
It is an honour and a privilege to be elected to represent the people of Wokingham, where I have lived for much of the last 50 years. I went to school there, and my children went to school there. They were born in the nearby Royal Berkshire hospital, where I am proud to be a governor. It is also the hospital where doctors found my cancer in 2008 and began my successful treatment. In 2016, they were there to help me again, and diagnosed a need for a quadruple heart bypass. Without the Royal Berkshire hospital, I would not be standing here today. Our NHS staff are wonderful, and clinicians at the Royal Berkshire hospital deserve all the praise that is heaped on them by my constituents.
Today we are debating the Chancellor’s Budget Responsibility Bill. In a previous debate, she announced the pausing of the new hospital building programme, which included the Royal Berkshire hospital. Parts of the building date back to 1839, and staff have to work in offices where the windows do not open, and they regularly have to walk around buckets that are there to catch dripping rainwater. I must repeat my plea to both the Chancellor and the Secretary of State for Health and Social Care for a speedy decision as to when the much-needed rebuild of our beloved hospital will happen.
If I may, Madam Chair, I would like to give you a short tour of the Wokingham constituency. In the north is the world-famous Henley regatta course at Remenham and the very successful Leander rowing club—one of the most successful sports clubs in the world. I was delighted that the former Prime Minister chose to visit the Leander Club during the recent general election, and even more so that his visit coincided with a boat trip that I and my hon. Friends the Members for Henley and Thame (Freddie van Mierlo) and for St Albans (Daisy Cooper) were making to highlight the dumping of raw sewage into our waterways. It was fun to wave at the Prime Minister from that beautiful stretch of river, and the media all seemed to enjoy it as well.
Wokingham has wonderful, picturesque villages. Wargrave was first recorded in 1061 and features in the Domesday Book. The village of Twyford dates from 871, when Alfred the Great’s army escaped Viking pursuers by crossing the River Loddon. Wokingham has a thriving and growing brewing sector that is establishing great reputations among beer lovers, including the Loddon brewery, the Elusive brewery and the Siren brewery. The Stanlake Park wine estate in Hurst is one of the oldest wine producers in England.
The Chancellor will know that our town centres and village centres, like many others in the UK, are finding life difficult. The cost of living crisis created by the previous Government continues to limit people’s spending power, and online competition is ruthless. Business rates are a huge issue for our local retailers, who make our high streets the great places they are, and I do hope that the Chancellor and Ministers will look into the reform of business rates at the earliest opportunity.
Wokingham town received its market charter in 1219. I thoroughly recommend the market, especially the fruit and veg stall and the fishmonger. My wife likes me to buy flowers for her from Darren’s flower stall. She says they last longer than any supermarket flowers. Using this market is good value for money and it is an important part of our local character.
Today, the constituency is gaining a reputation as a home for life sciences businesses. I was pleased, when leader of the council, to be involved in the early stages of discussions with Lonza, a Swiss public company that will be investing several hundred million pounds in the constituency over the next few years.
Wokingham has many charities in which volunteers work hard to improve the lives of our residents. I will mention just a few: the Wokingham food bank, First Days, Wokingham in Need, Building for the Future, Citizens Advice, Age UK Berkshire, Wokingham United Charities and the Cowshed. The dedication and hard work of the volunteers in these charities and many others is truly inspirational.
In the southern part of the constituency, in Arborfield, there is a former Royal Electrical and Mechanical Engineers garrison, with which the town had an important relationship for many years.
John Walter, a newspaper editor and politician, and the son of the founder of The Times, lived on the Bearwood estate. He was a Whig MP for the county of Berkshire before 1832—early beginnings of what I hope will become a long-standing tradition in our area.
Madam Chair, from your chair you must be thinking that this 59th Parliament has so many young faces, and I hope you will be including me in that category. I bet you are wondering, “What is his secret?” It is very simple: I worked in the toy industry for many years, running manufacturing and importing businesses. Playing with toys every day for the last 30 to 40 years is what makes me look so young. Our toys made many young people and their parents happy. I am hoping to be just as successful in my second career, helping the people of Wokingham to improve their lives. If I can achieve this, I will have had two worthwhile careers.
Finally, I am grateful to the many people—in particular, my family and friends—who have helped me in my campaigns to be elected to the House of Commons, some of whom are in the Gallery today. Wokingham has never before elected a Liberal Democrat MP. I will work tirelessly to represent my constituents and I will endeavour to make them feel recognised and supported. I come here idealistic and hopeful, hoping that we can make the public feel the same about our institutions, and I want to ensure that we do them justice on these battered but far from broken green Benches.
Ellie Chowns (North Herefordshire) (Green)
I pay tribute to the hon. Member for Dudley (Sonia Kumar) for her excellent maiden speech. Indeed, we have heard more than half a dozen excellent maiden speeches today, several of which touched on the climate crisis and the future of children in our country, themes that relate to my amendment. I was touched to hear the passion with which all the new Members spoke about their experiences and commitments.
My amendment 5 requires the OBR to report on the impact of fiscally significant measures announced by the Government on the UK’s statutory net zero target. The justification for my amendment is that we simply cannot separate the economy and the climate—they are interlinked. To deliver the green economic transformation that we so urgently need, as referenced by hon. Members speaking earlier, every single policy must be aligned with the UK’s net zero target and every Government spending decision should be as well.
It makes sense to increase the OBR’s remit on net zero to specifically consider the impact of climate risks on economic stability, and how far policies introduced at fiscal events will reduce or increase these risks. Fiscal events, namely Budgets and spending reviews, lock in what is happening in our economy for years to come, even generations, so it beggars belief that they are not properly taking account of climate impacts. Whether those policies are spending on new roads, subsidies and tax breaks for oil and gas, investment in renewables infrastructure or giveaways like a freeze on fuel duty, they all have direct impacts on the UK’s prospect of meeting our net zero targets. Those impacts should be made clear and considered explicitly in the policy-making paper. We need to be thinking about the impacts of today’s economic policies on the prospects for future generations.
The costs of failing to take an approach that considers climate impacts are eye watering. A 2022 report by the Grantham Institute found that climate change damages to the UK are projected to triple by 2050 and more than double again 50 years later, so climate prudence and fiscal prudence are one and the same thing. Given that the OBR’s main duty is to assess the health of the UK economy and the sustainability of its public finances, it needs to be charged with assessing whether fiscal events are reducing or increasing climate risks to the economy.
Bringing net zero into the OBR’s mandate is consistent with the Government’s five missions. Indeed, in announcing its clean energy superpower document, Labour said that it will add net zero mandates to all relevant regulators that need it. I would argue that the OBR is a relevant regulator that needs a net zero mandate. That is why I am proposing this probing amendment today. As other Members have mentioned, it would also represent increased transparency around how fiscal policy choices are impacting the UK’s progress towards our net zero targets and help ensure that future Governments also consider that.
It is also an important stepping stone towards a net zero test, which would assess the aggregate climate and nature impact of every fiscal event. Again, this is something that Labour committed to in opposition. In his winding-up remarks, will the Minister comment on whether he is able to ensure that this test is integrated into the legislation that he is proposing?
I hope that Labour will use this opportunity to commit publicly to introducing a net zero test in Government, and will take a step towards doing that by backing my amendment.
Lauren Edwards (Rochester and Strood) (Lab)
Thank you for giving me the opportunity to speak, Madam Chair.
I pay tribute to the many hon. Members who have given such impressive maiden speeches today. It is an honour to follow my hon. Friend the Member for Dudley (Sonia Kumar) who gave such a passionate speech about her constituency, and who certainly did her family very proud. Although she has left her place, may I also commend the hon. Member for Chelmsford (Marie Goldman) for her excellent speech, which, as somebody born in Australia, I particularly appreciated for its reference to the Australian opera singer, Dame Nellie Melba?
Financial market stability and public trust in announcements on fiscally significant measures are, funnily enough, not issues that come up regularly on the doorstep. But the real-life consequences when these two important pillars of our society are lacking was central to the recent conversations that I had across Rochester and Strood.
The cost of living pressures, already challenging for most, were heightened as families found that they had to pay, on average, hundreds of pounds more just to put a roof over their heads. The cause of that additional pressure—the former Truss Government’s mini-Budget—was a deeply undesirable situation that this Bill seeks to prevent from ever happening again. One reason given for the adverse market reaction to that mini-Budget was the lack of forecast by the Office for Budget Responsibility—an omission which, in turn, contributed to a lack of investor confidence in the plans. Political parties, whatever their colour, can have the best policies in the world, but if they are not backed with economic competence and market confidence in those who are holding the purse strings, no one will be better off for them.
We cannot and should not play fast and loose with the economy, so, like many others, I take great comfort from the Bill. That includes the chair of the OBR himself, Robert Hughes, who says that the Bill will address a gap in the current law and
“serve to strengthen the legal foundations for fiscal management.”
It is surely only right that policymakers, when making major fiscal decisions, base those decisions on up-to-date economic and fiscal outlooks, published at the same time to give maximum transparency.
I dwell so much on economic stability as I view it as a necessary precondition for economic growth—this Government’s chief mission—and because, in recent years, there has not been enough focus on the latter in places such as Medway. I am immensely proud to call Rochester and Strood my home and honoured to have been given the opportunity by its residents to represent them here in this place. I will work hard every day to ensure that residents’ voices are heard in this Chamber and to get a better deal for everybody in Rochester and Strood. I will do that by continuing to drive regeneration work in my constituency, work that I began as a former cabinet member on Medway council. I will work with the Government and the private sector to bring more investment to our towns and villages, support the local business community to thrive, and provide more opportunities for young people, so that they do not feel that they need to move away to get on in life.
Rochester and Strood has many strengths, not least the military presence at Brompton barracks, home of the Royal Engineers. The River Medway, which runs the length of the constituency, has so much potential for industry, leisure and tourism, and a very rich maritime history from the days of Chatham dockyard. We have a burgeoning creative community centred at Chatham Intra, developing green industries out on the Hoo peninsula, and high-quality technical colleges and universities. However, we also have high levels of deprivation in the constituency, not enough good-quality and affordable housing, an overburdened hospital, and not enough infrastructure, including health services, public transport and banking services, to support our communities, particularly on the more rural Strood side of the constituency.
Fred Thomas (Plymouth Moor View) (Lab)
Thank you, Madam Chair. Before I talk about Plymouth, may I celebrate the amazing speeches that we have heard this afternoon, and pay tribute to the wealth of experience and passion, not just on the Government Benches but across the Chamber? It is really heartening. My hon. Friend the Member for Rother Valley (Jake Richards) spoke about the spirit that we have all seen in the communities that we represent, and the confidence that he has in that spirit to overcome some of the challenges that we are facing as a nation and in our communities. I completely share that.
Let me now talk about Plymouth, the city that I call home and the city that I am so proud to represent in this place as the Member for Plymouth Moor View. I want to talk about our people, our institutions, our rolling hills, grey warships glinting in the south coast sun and the noise that 43,000 Argyle fans make on match day. I want to talk about the gritty determination of staff at one of the biggest hospitals in the country, and I want to talk about hope.
I will frame this speech with two principles that I lived by during my time in the Royal Marines, principles that are well known amongst the armed forces community in Plymouth. First, a leader must be a dealer of hope. When the chips are down, leaders have to step forward and give hope. I believe that is our job in Parliament too. In Plymouth, communities come together to give each other hope. There is immense strength and resilience in the streets, the housing estates, the front rooms and wherever folks get together and organise to change the lives they and their neighbours are living, making simple, tangible changes by addressing the needs in front of them.
We have Whitleigh Big Local, the Four Greens Community Trust and Connecting Youth CIC, to name just a few, working in partnership with the local community to improve the things that matter and to bring hope. I want to use my position in this House to empower our community to effect change and generate hope that life will get better and that families can be lifted out of poverty.
Today, relative child poverty in Plymouth Moor View is at 23%, set against the regional figure of 17%. I will not accept rising child poverty, because the second principle that I live by, one I believe a lot of us share, is this: “The standard you walk past is the standard you accept.” If we see something that we know is wrong and we keep walking, we are effectively saying we are happy with that situation. The harder option is not to walk past, but to take action.
Derriford hospital in Plymouth serves almost 2 million people across Devon and Cornwall. I have met the nurses, paramedics, doctors and volunteers, who do fantastic work under immense pressure. They are people who do not just walk past. However, the hospital is up against it: in June alone, there were 5,000 instances where a patient waited more than four hours in A&E. That represents a series of personal tragedies for the patients affected. With the new Government, I will work tirelessly to change that story.
Away from the hospital, the beating heart of our city is Plymouth Argyle football club, which is in its second season now in the championship, making it one of the top clubs in the English football league. Yet in Plymouth, many families struggle to afford access to sport for their kids. I am a keen footballer and I believe in the power of sport to set young people up for life. I will use my platform to improve access to sport in Plymouth, because a standard where this country has the finest football leagues, watched the world over, but our own youngsters cannot afford to play is not a standard I will walk past. I pay tribute to the excellent work that the Argyle community trust and the Plymouth football boot bank do already to broaden access to sport in Plymouth.
As a former Royal Marines commando, it is a particular privilege to represent the city that is home to not only the largest naval base in western Europe, but the Royal Marines, who are still headquartered in Plymouth. Ours is a city where so many residents have served in uniform, and I take this opportunity to thank every single one of them for their service and dedication. I also pay tribute to my predecessor for his heartfelt efforts to raise the profile of the veterans agenda.
For centuries, Plymouth has had a proud military history, and the Prime Minister recently called it
“the frontline of defence in this country”.
Navy, Marines and Army personnel have deployed from Plymouth for hundreds of years. The tradition of proud military service runs through our city like the writing in a stick of rock. Now, as we find ourselves as a country in another moment of critical international instability, Plymouth is again a keystone of our national security. Devonport dockyard is the home port for the frigates, survey vessels and amphibious shipping that are crucial for our safety. It is also where the submarines that host our nuclear deterrent are maintained, and will be for generations to come. We are also home to highly skilled small and medium-sized enterprises such as MSubs—makers of unmanned submersible craft used in the most special military projects—Barden bearings and Collins Aerospace, whose cutting-edge engineering is integral to the UK’s modern weapons systems.
From our military institutions and our manufacturing base to our hospital, our football club and our dockyard, we stand up and we serve in Plymouth. We give a lot to this nation, but for all this—if I can borrow a phrase from a friend and a constant source of advice, my hon. Friend the Member for Plymouth Sutton and Devonport (Luke Pollard)—Plymouth does not get its fair share. I will work tirelessly with the Government to change that, because in Labour we respect service, and ours will be a Government of service—a Government of hope. As I served my country before in uniform, so I will serve my city now in office. As I was trained to do in the Marines, I will strive to be a dealer of hope. When it comes to taking action, I will remember, along with colleagues on both sides of the House, that the standard we walk past is the standard we accept.
Lucy Rigby (Northampton North) (Lab)
I pay tribute to my hon. Friend the Member for Plymouth Moor View (Fred Thomas) on his fantastic maiden speech and to all hon. Members who have made such brilliant maiden speeches in this afternoon’s debate. It is a privilege to follow them and to make my own maiden speech in the context of such an important Bill.
Northampton has sent Members to Parliament since 1283, and it is the honour of my life to be among them as the Member of Parliament for Northampton North. One of those former Members, I am proud to say, was the trailblazing Margaret Bondfield—the first woman to serve in Cabinet in this country, the first to be appointed to the Privy Council and the first to chair the TUC. I hope, in the course of my time here, that we might find ways to see Margaret’s name given greater recognition and prominence, as I believe is due. Some 51 years after Margaret Bondfield’s arrival in this House, the good people of my constituency elected Maureen Colquhoun—a trailblazer herself in relation to many issues, including being the country’s first openly gay MP.
I want to pay particular tribute to my two immediate predecessors: Sir Michael Ellis and Sally Keeble. Sir Michael stepped down at the last election, having served Northampton North for 14 years and served the country as a Minister in multiple roles. He is also remembered locally for performing lifesaving CPR on a constituent having a coronary episode—I am more than aware that that sets me a very high bar for looking after my constituents. Like Sir Michael, Labour’s Sally Keeble served Northampton North for well over a decade and served her country in government too. Sally has many achievements—notable among them was the taking through of one of the last pieces of legislation under the previous Labour Government to protect developing countries from vulture funds. Sally remains a dedicated and committed public servant. I do not mind admitting that I spoke to plenty of residents during the election campaign who told me that while they really appreciated my doorstep pitch for their support, they would be voting for Sally Keeble.
I am aware of the examples of good service in this place that have been set for me, and I hope to live up to them, so I want my constituents to know that serving our community in Northampton will be my first and highest priority for as long as I remain in this place. This place could, in fact, be in my constituency, because Northampton has been the seat of Parliament on more than 30 occasions. King John even moved the Treasury to Northampton in 1205, when he fell out with a few people in London over something akin to the disastrous mini-Budget—an option that I suspect those supportive of the Treasury’s current location will be glad to know was not suggested, as far as we know, to the former right hon. Member for South West Norfolk.
We are a town of deep pride in both our present and our past. We are the largest town in England. We have buildings of neo-gothic splendour; strong communities; beautiful green spaces such as Eastfield Park, Abington Park and the Racecourse; and not one but two shoe armies: Premiership champions Northampton Saints, and the mighty Cobblers. Our boot and shoemaking industry has provided many Members of this House with their footwear over the years, including, I am proud to say, the former Prime Minister and Member for Sedgefield, who wore the same lucky pair of Church’s brogues at every Prime Minister’s questions for 10 years, which just goes to show where a good pair of Northampton shoes can get you.
Darren Jones
And it is equipped to do the job it is supposed to do, alongside the other regulatory body that holds the Government to account, the Committee on Climate Change.
In conclusion, I hope I have been able to provide some assurances and that hon. Members will be content to retract their amendments. If not, I urge the House to reject them. I thank other Members for their contributions to the debate. I gently invite the hon. Member for Arundel and South Downs (Andrew Griffith) to reflect on his own party’s record in crashing the economy through unfunded tax cuts, losing control of public spending and ruining family finances, before offering advice to this Government on fiscal responsibility. I say to the SNP spokesperson, who is not in his place, that I was surprised to see so many discredited Conservative party lines to take in his speech. Who knew that the SNP and the Tory party were one and the same thing?
With this Labour Government our commitment to fiscal discipline and sound money is the bedrock of all our plans. The Bill will guarantee in law that from now on every fiscally significant change to tax and spending will be subject to scrutiny by the independent OBR. That delivers on a key manifesto commitment to provide economic stability and sound public finances by strengthening the role of the independent OBR. That is a crucial first step to achieve sustained economic growth, and I commend the Bill to the House.
The Second Deputy Chairman of Ways and Means (Caroline Nokes)
I call shadow Minister Nigel Huddleston.
Nigel Huddleston
I will not detain the House long by repeating the arguments that I made in my opening comments, but I am disappointed by the Minister’s response, and in particular by his refusal to accept our amendments. It is alarming that he is refusing to do so because, as I outlined, I believe they are consistent with the goals of the Bill overall, and I think the credibility of the Bill will be seriously undermined if it does not include the fiscal rules. I like the Minister a lot. We go back a way and have always had civil conversations, but if he does not believe or consider the level, type and definition of debt to be “fiscally significant”, then with the greatest respect perhaps the Treasury is not the right home for him. They are transparently fiscally significant, and an important part of the consideration we are talking about today.
Budget Responsibility Bill
Caroline Nokes ExcerptsTuesday 30th July 2024
(3 months, 3 weeks ago)
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Mr Luke Charters (York Outer) (Lab)
Thank you, Madam Deputy Speaker, and congratulations on your elevation to the Chair.
I am proud to stand here as part of a changed Labour party that won the public’s trust on the economy. I am so glad that we did, because we would otherwise still be at the behest of those on the Opposition Benches, who did so much to damage the public’s finances. My constituents paid the economic price for their economic incompetence—the £22 billion black hole uncovered yesterday is just one example. Ultimately, that is why the Opposition paid the price at the ballot box. The people of York Outer and this country resoundingly sent a message at the general election: never again!
If anyone needs reminding why, they should take themselves back to 23 September 2022, when we had £45 billion of unfunded tax cuts, with no consultation with the OBR. The pound fell below $1.09 for the first time since 1985. The central bank had to undertake emergency liquidity operations by purchasing long-dated gilts. Banks and building societies entered into a chaotic spin, with fixed-rate mortgage products being pulled—at one point, over 1,000 products were withdrawn in a single day. As the former Member for South West Norfolk once said, that is a disgrace.
Amidst all the chaos, there is a simple point: the mini-Budget did not meet the needs of the British people. Let us take some of the businesses that closed in the dying embers of the last Government. A music shop believed to be the oldest in the UK closed only a few months after the mini-Budget. Banks Musicroom had been in York since 1756, but ultimately market conditions saw it shut down in early 2023. The stationery company Thomas Dick, in Clifton Moor, which closed earlier this year, had been open 90 years but faced chaos and supply chain issues that left it no longer viable.
The decisions we make in this place have real consequences, and the impact we can have on people is very real. Before my election to this new role, my friend the Mayor of York and North Yorkshire ran a small business on our high street. I remember him talking just before the mini-Budget about what the impacts might be; he warned just how dangerous the mini-Budget would be, and he was right.
But it is not just about the impact on businesses. Last weekend, I visited Hoping Street Kitchen, a fantastic volunteer-run project that helps homeless people and those facing poverty across York. I was deeply inspired by its volunteers, sense of community and unwavering commitment to improving the lives of others. A volunteer told me first hand how crumbling public services, a lack of affordable housing and long mental health lists have created an unimaginable crisis. The project has gone from providing 30 to 40 meals a week during 2021 to providing 100 a week in 2024.
That is why it is critical that we implement our national mission to rebuild public services, build more homes and offer more NHS appointments. But it is also why I am speaking in this debate: this Bill is so important because it is the only way we can grow those public services with a stable economy. We saw yesterday just how difficult that challenge will be, which is why we must protect our economy now.
The Bill respects our institutions, rather than undermining them, and a prime example is how it gives real oversight to the Office for Budget Responsibility. It also includes provisions for the Treasury Committee to have a greater say in key fiscal moments. However, with the heightened responsibilities that the Bill gives the OBR, we need to think about the most effective ways in which the OBR could be properly scrutinised by Parliament, and the Bill could make more specific provisions on the Treasury Committee’s scrutiny role of the OBR. This week, I met the team from the Institute for Government that authored a report earlier this year on how Select Committees can better hold regulators to account. I commend that report, and I would welcome a debate on how this place best scrutinises the OBR.
What the Bill really protects against, however, is knee-jerk reactions and fantasy Budgets. If we are to get the growth we so badly need, we must behave like an established economy, not an emerging one that came out of the mini-Budget. That is why the Chancellor’s presence at the G20 over the weekend and her warm words about Britain being open for business are so important. If we can fix the lamentable legacy that the Conservative party left, we will have real cause for optimism. I was pleased that the right hon. Member for Godalming and Ash (Jeremy Hunt) commended the work of the OBR in his first speech as shadow Chancellor, but it felt somewhat jarring for him to flippantly suggest:
“We all understand the politics of a Bill that allows the Government to make endless references to the mini Budget”.—[Official Report, 22 July 2024; Vol. 752, c. 408.]
George Orwell once said:
“The secret of rulership is to combine a belief in one’s own infallibility with a power to learn from past mistakes.”
The Conservative party clearly has some way to go in that regard, but under this Government the green shoots of economic recovery are already starting to show. We may have inherited a particularly difficult situation, but the evidence of stable markets and an increase in the pound show the confidence in the security that this Government bring. After all, I made it clear in my maiden speech how welcome it is that the country has some good Yorkshire representation in No. 11, embodying the value of frugality.
We know there are tough decisions to make, and we are not hiding that from the British people: just take yesterday as a prime example of our approach. This Bill seeks only to offer greater transparency over decision making and it treats taxpayers’ money with respect. That is why I am proud to sit on the Government Benches, and it is why the people of York Outer can be confident that this is a Government that will serve them well.
Yuan Yang (Earley and Woodley) (Lab)
First, I would like to congratulate my fellow Members on their wonderful maiden speeches. My hon. Friend the Member for York Outer (Mr Charters) made remarks about budget scrutiny that I agree with. My hon. Friend the Member for Wirral West (Matthew Patrick) spoke cinematically of his peninsula and about the role of reason in political debate. My hon. Friend the Member for Kettering (Rosie Wrighting) and I seem to share a birthday week, and I very much welcome the diversity of generations we see across the Chamber. The hon. Member for Ynys Môn (Llinos Medi) spoke powerfully about her experience of homelessness; I am glad to hear such testimony in the House today. I share a predecessor with the hon. Member for Maidenhead (Mr Reynolds); he displayed an exemplary knowledge of railway bridges, and we share concerns about Sonning bridge and the congestion on it.
I welcome you to your place, Madam Deputy Speaker, and thank you for calling me in this debate on budget responsibility. During the Minister’s remarks, I strained to find a joke to make about national accounts, but I deemed that it would be too much of a liability. I then considered making a joke about fiscal take, but I thought that was too taxing. I assure you, Madam Deputy Speaker, there are no more jokes about economics in my speech. Joking aside, I first became engaged in politics while studying economics 16 years ago, and I very much welcome a change in the way that we manage our economy.
I am proud to stand before Members today representing my home constituency of Earley and Woodley, a new seat on the east and south of Reading. Most of the households in my constituency have never been part of a Labour seat, so for many residents I am their first Labour MP in history. I will work hard continuously to earn the trust of every one of my constituents, although it may be some time before I win over the former Member for Maidenhead, Theresa May.
I want to thank four of my predecessors. My hon. Friend the Member for Reading Central (Matt Rodda) is well loved by his former constituents in my seat. His hard work, alongside the work of his predecessors and our Labour group on Reading borough council, connected the Elizabeth line to Reading.
My other predecessors have retired from the House of Commons. For Theresa May, that retirement is extremely well earned. She stepped up to lead our country at a time of crisis, proving the maxim that it takes a woman to clean up the mess the men have left behind. Even at the height of her national responsibilities, she was always present and well respected in her constituency. John Redwood, the former Member for Wokingham, was a man of conviction and authenticity. I respect that very much in a politician, even though I do not share many of his convictions. Finally, Alok Sharma, the former Member for Reading West, displayed international leadership, convening crucial climate talks as the President of COP.
For the first time in history, we now have three constituencies in Reading and, what is more, three Labour MPs. Earley and Woodley has become a new constituency because of the families who have chosen to settle there, moving out from central Reading, London, the rest of the UK and, indeed, the rest of the world. It is a success story for house building as well as for multiculturalism. It is a beautiful area, stretching from Sonning, on the banks of the Thames, to Shinfield, on the banks of the Loddon. In Earley, my family and I live within dog-walking distance of four lakes and woodlands. I want to ensure that future generations have access to nature and to affordable housing, because both have been under threat for too long.
Sonning has a long history, featuring in the Domesday Book, but most of the area in my constituency has been built more recently. After the first world war, Reading contributed to the national campaign to house returning soldiers, by building homes in Whitley and Whitley Wood. The area is now home to Reading football club. There is high-flying history in Woodley, too, which produced aircraft during the second world war.
Most of the houses in Earley, including my own, were built from the 1960s onwards. At one point in the 1980s, the area was the largest housing development in Europe. Shinfield parish, which covers Spencers Wood, Three Mile Cross and Grazely, has had the most recent developments. Alongside Shinfield Studios, the largest new film studios in the UK, we have the Shinfield Players, a community theatre.
However, our constituency is not without its challenges. In many parts of the constituency, the building of infrastructure has not kept pace with the needs of residents, and we need a new Royal Berkshire hospital. We need to ensure that new investments benefit local people. We face deprivation, too, and I will support our grassroots community organisations to work alongside local authorities on regeneration. For those living in our new builds, reform of the leasehold system is much needed, and I look forward to working on all these points with our new Government.
At the heart of my constituency is the University of Reading, which does world-leading research into climate science and meteorology. We are also home to the European Centre for Medium-Range Weather Forecasts. Now, there has been much competition in the debate this afternoon about who has the sunniest constituency. Although my constituency may not enter that competition, it surely holds the power to adjudicate the winner.
The research prowess of the University of Reading, as well as the Thames valley cluster of science and technology giants, has made our area prosperous as well as diverse. We are proud of our diversity; our diversity makes us stronger. Yet there are those who seek to divide us and to weaponise our country’s problems to turn us against ourselves. It is clear that we face many problems and that the politics of the past has failed to deliver, and in conversations with residents I have heard again and again the despair that has crept into our democracy, but I fundamentally believe that our democracy is worth fighting for.
I was born in 1990 in China, a country without the right to vote. Three decades later, another crackdown on democracy has led to hundreds of thousands of Hongkongers seeking refuge in the UK. It is never easy to leave your home or to move countries. I came here with my parents as a four-year-old and it took them many years to find stable work. I still remember my mother, the evening before I started secondary school, telling me, “Don’t compare yourself to the other kids. Their families have money and connections. We don’t and we don’t know anyone in this country.” As a 10-year-old, I did not know what having connections meant, but I did learn not to compare myself to the other kids, and I think that my mother’s advice has stood me in good stead.
I thank my parents very much for supporting me throughout my campaign, and I feel lucky that we call Earley and Woodley our home. To all those families arriving here, wherever they are from and wherever they started off in life, I want to say that wealth or connections should not be a prerequisite for your children’s success. I am proud to be part of a Labour Government who will do our utmost to break down the barriers to opportunity.
I joined the Labour party after university, because I saw opportunities drying up for my generation. I studied economics during the financial crisis and graduated during the onset of austerity. While studying my masters in economics, I realised how much economic debate had become detached from the real-world crises around us. With fellow students, I set up Rethinking Economics, a charity that campaigns for better economics education.
I have spent most of my career trying to make economics and business news engaging and accessible, starting at The Economist and then spending eight years at the Financial Times, where my colleagues taught me so much and supported me so well. I will miss them, but in the words of Cynthia Freeland: “I fully understand that I am now no longer part of the pack, but part of the prey.” And so it should be in a democracy with media freedoms—although less bloodlust would be welcome across this House, I am sure.
I have worked in places without media freedoms. I have interviewed labour activists, protesters and fellow journalists who gave up their own freedom for their causes. Some are still in jail today. When I stood for election, some of my friends told me I was brave, given the abuse and violence against women and girls in our society and in politics, which I have suffered and which we must address, but I think I would be lucky to have a fraction of the bravery of some of my former interviewees. Their determination makes me even more determined to defend and improve our democracy, which has to be constantly renewed through our actions.
Our democracy has to be renewed through reform—through empowering our communities, widening participation in democracy and ending the corrupting influence of money in politics. Our democracy also has to be renewed through delivery—through building a fair economy that can support people. It is my greatest honour to be part of a Government that will do both.
Madam Deputy Speaker (Caroline Nokes)
I call Euan Stainbank to make his maiden speech.
Euan Stainbank (Falkirk) (Lab)
I pay tribute to my hon. Friend the Member for Earley and Woodley (Yuan Yang), especially for her commitment in her career before coming to this place to economics education and journalism, a noble profession and one that is critical in today’s world. I thank all hon. Members across the Chamber who have given their excellent maiden speeches, and I pay tribute to the parliamentary staff and the Speaker’s Office, who have been utterly exemplary in introducing new Members to our roles over the last few weeks.
It is the honour of my life to be elected for the Falkirk constituency. Falkirk is my home: it is where I was born, where I grew up and where I have spent the vast majority of my adult working life. The name for those from Falkirk is “Bairns”, or “the Bairns”, and the historical understanding is that true Falkirk Bairns are those born within the boundaries of the old borough of Falkirk, as I was—and here I will beat my hon. Friend the Member for Kettering (Rosie Wrighting) and the hon. Member for Maidenhead (Mr Reynolds)—27 days into the new millennium. As my partner Innes told me on the night after the election, if it turns out I did not get here early enough to be the Baby of the House, I can be proud enough to be the Bairn of the House.
I pay tribute to my predecessor John Mc Nally for his nine years of service to the people the people of Falkirk and to his office staff. I also thank John for his 10 years prior to that serving the people of Herbertshire and Denny and Dunipace on Falkirk council. I first spoke to John last month, when he popped by an event hosted by the Forth Valley Sensory Centre and the Royal National Institute of Blind People Scotland on the very important topic of town centre accessibility with all the candidates vying for the Falkirk seat. The stories I have heard about John from those in the Forth Valley Sensory Centre, as well as throughout the community, show him as a caring and passionate representative, always ready to lend a hand to anybody in need. I wish him well in future.
Accessibility is a cause that I am passionate about. How accessible our streets are can often be the difference between somebody being forced to stay home or being able to access their community. I encourage all hon. Members, especially Scottish Members, to read the RNIB report “Street Credibility: making Scotland’s streets accessible for people with sight loss”, an excellent guide to how we can use our role to make streets safer and easier to access for everyone.
I would like to take hon. Members through my constituency and the towns, villages and estates that make it up. We start with the Braes villages where my grandfather John and my late grandmother Janet are from, Limerigg and Slamannan. Across the Braes there is also Avonbridge, Standburn, California, Shieldhill and Whitecross. As we travel north down the Braes we get to Maddiston, Brightons, Rumford, Redding, Reddingmuirhead, Wallacestone and Polmont. As we go through Westquarter and Laurieston, the tops of the Callendar Park high flats peek out as we enter the town of Falkirk and the Falkirk South ward that I was honoured to represent for the last two years.
Surrounding the town are the estates of Hallglen and Lionthron, Bantaskin, where my mum Susan was raised, and Tamfourhill, where she first lived. Up north, past the stadium and the Kelpies, we find Middlefield, New Carron, Bainsford and Langlees. To the west, we pass through Camelon, where the Union and Forth & Clyde canals bisect at the famous Falkirk wheel, towards Bonnybridge, Dennyloanhead, Head of Muir, Greenhill and the Carron valley, where we find the town of Denny and the villages of Dunipace, Banknock, Longcroft and Haggs.
As my hon. Friend the Member for East Renfrewshire (Blair McDougall) stated in his maiden speech today, and as many others in the Chamber have said, it is our people who make our communities. Those wonderful communities host most of my family and friends. When my dad Duncan made Scotland his home in 1992—I know my hon. Friend the Member for Glasgow North (Martin Rhodes) said in his maiden speech that he moved in the same year—both he and my mum Susan, a Falkirk native, wanted a community that I and my brother David would feel we could call our home for life. I am proud to represent my constituents in this place, but even prouder that I am representing my neighbours.
We will all be better off under a Government who seek to unite and serve, rather than a Government who seek to divide. I know that this Labour Government will serve the people of my constituency better than we were served before. Prior to politics, my experience of service was earned in the hospitality sector: from the age of 16, I was pouring pints and serving tables at hotels and restaurants; even earlier than that, I was running a match-day kiosk at Parkhead.
I swiftly moved on from the latter job—the only place to be at 3 pm on a Saturday is the Falkirk stadium, the home of the Invincibles. This year, Falkirk football club became the first non-Glaswegian men’s team to go unbeaten for an entire league season in Scotland since the 19th century. I am looking forward to welcoming the sizeable number of Jambos in the Scottish parliamentary Labour party to our league cup fixture on 17 August, when I am hoping we can bring back memories of when we ended their invincible tilt in January 2015. [Laughter.] It was a bit niche, that one.
Not everybody has recognised the value of my experience in the hospitality industry, as a recent online comment from a detractor illustrates:
“Euan can’t be the MP, that’s the boy who used to work at that tapas place.”
I humbly thank the people of Falkirk for electing the boy, who—prior to my entry into politics two years ago—did indeed work at Christie’s Scottish Tapas in Falkirk, the well-deserved winners of the Scottish restaurant of the year award in 2024. I went back to Christie’s on the day after the election to celebrate in the best way possible, in the heart of Falkirk’s town centre. If any Member is planning a visit to the stunning Kelpies in Helix Park, the one-of-a-kind Falkirk wheel, the historic Callendar House estate or the newly restored Rosebank distillery—and I suggest they do all four—I strongly recommend a subsequent refreshing trip to one of Falkirk’s incredible cafés, restaurants and bars. Among the highlights are Christie’s Scottish Tapas, Behind the Wall, the Sanam Tandoori, Finnegans café and the Wheatsheaf Inn, which are even harder to avoid than the restaurants in Carshalton and Wallington.
Both my trip to my old bit on the day after the election, and my online detractor declaring my electoral incompatibility based on my pint-pouring past, reminded me that the service provided by those working in hospitality is not properly valued by all of us who use it. If our feet are still sore from canvassing, I know at first hand that that is nothing in comparison to the shift people put in cooking, cleaning and serving, day in, day out. If anybody in this Chamber thinks it is all just so easy, I recommend that they fasten their apron, get behind the cooker and get ready for the lunch rush.
On behalf of hospitality workers, the most important message that I can pass on is “Make sure we are paid properly.” The experience of hospitality workers, who often deal with low pay and insecure work despite their work ethic, displays the fundamental reasons why Labour’s new deal for working people, manifested in the forthcoming employment rights Bill, matters so much. Despite servicing the essential elements of our economy and our communities, substantial parts of our working population are being told, when they look at their payslip, that their work does not matter.
The same impression is felt acutely by those working in the public sector—our teachers and school staff, NHS and social care workers, refuse collection workers and now especially college lecturers and staff, such as those at Forth Valley college in my constituency. I welcome the significant pay offer that this Labour Government announced yesterday; I encourage the Scottish Government to use any consequential funding that will flow from it to settle the disruptive and long-standing disputes and give Scottish public sector workers the pay rise that they deserve.
For far too long, age-discriminatory bands have indicated to young workers that their time is worth less than anybody else’s. We have had a relatively stagnant minimum wage that does not reflect the spiralling cost of living; zero-hours contracts, which I have worked on; and fire-and-rehire practices that prevent workers from having control over their lives. Those are all things that this Labour Government will change emphatically for the better.
As one of the first Members to be born in this millennium, I share and echo the concerns set out in other Members’ maiden speeches about the low turnout across the country, but especially the consistently low turnout among young people. Many young people have spoken to me on the doorstep about how they feel alienated from politics and are losing trust in politics as a route to positive outcomes.
This disconnect should not exist. As a councillor, I spoke to so many passionate young people with bold and exciting ideas about how to change their communities for the better. I want especially to mention the young people at the Falkirk Youth Voice forum, the Scottish Youth Parliament Members for the constituencies of Falkirk East and Falkirk West, and the Falkirk Champs Board, all of whom I have worked closely beside. I was honoured to be invited to participate in a panel discussion last Tuesday that was hosted by the Duke of Edinburgh scheme; I draw hon. Members’ attention to its Youth Voices 2024 study, which explores the issues that matter most to 3,000 young people from across the UK.
Work like this can be a road map to using our time here to make young people believe in politics as a force for good again. The starting place to mending this bridge is having representatives who listen to young people and work with them for better outcomes. Votes at 16 will be a substantial step in the right direction: I look forward to their being introduced in due course by this Labour Government.
We must also make young people’s priorities our priorities and clearly show ambition for our future when tackling issues such as the cost of housing, the cost of living, mental health, the climate crisis, the moral stain of child poverty, and the NHS. While many young people understand that we must efficiently progress our progressive economic agenda, they deserve to see substantial progress by the end of this Parliament. I look forward to further credible plans being put forward by this Labour Government to make sure we can tackle those issues. I am especially looking forward to the first Labour Budget in the autumn, when I will work tirelessly on behalf of the people of Falkirk, advocating to see us permanently and sustainably end the cruellest policies enacted during the past 14 years. As the people of Falkirk demanded change at this election, the young people of Falkirk, Scotland and the United Kingdom demand that they now see change. I will use my seat and my voice to champion them.
Public Spending: Inheritance
Caroline Nokes Excerpts(3 months, 3 weeks ago)
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Daisy Cooper (St Albans) (LD)
The legacy of the Conservatives’ new hospitals programme is dire, but the Chancellor will know that there is also a cost to delay. We have life-expired buildings that will continue to need to be patched up until they are replaced, so I urge the Chancellor, as I urged the Secretary of State for Health and Social Care last week, to give the go-ahead to those projects that are ready to go and involve life-expired buildings. Will she review the outdated rules, and allow hospitals to spend more of their capital funds on helping with repairs and rebuilds?
Rachel Reeves
I welcome you to your place, Madam Deputy Speaker. My right hon. Friend the Secretary of State for Health and Social Care will meet with people affected. We were promised a new hospital in Leeds that has never been built, so I understand the concerns that right hon. and hon. Members have about the hospital programme. However, there is a £22 billion in-year overspend, which means taking incredibly difficult decisions. They are not the decisions that we would want to make, but they are responsible ones in the circumstances, given our dire inheritance from the Conservative party.
Rachel Reeves
My hon. Friend is welcome on the Government Benches with his expertise. Everything in our manifesto was fully costed and fully funded, including 40,000 additional NHS appointments every single week, which will be funded by cracking down on tax avoidance and ensuring that people who make their home in Britain pay their taxes here. We will finally deal with the terrible situation of non-doms claiming that they do not live in Britain for tax purposes, despite making their home here. Those people should contribute to the public purse; under Labour, they will.
Sir Julian Lewis (New Forest East) (Con)
Congratulations on your election, Madam Deputy Speaker.
I cannot hope to match the splendid double entendre of the hon. Member for Walthamstow (Ms Creasy), but I may I say to the Chancellor that one effect of being here for a long time is a realisation that no one party has a monopoly on wisdom? Given the impartial assessment by the Library that covid cost this country between £310 billion and £410 billion, is she willing to at least concede that the previous Government did a pretty good job in getting inflation down to 2% less than two years after the pandemic?
Bill Esterson (Sefton Central) (Lab)
Welcome to your place, Madam Deputy Speaker.
It was not just the public finances that the Conservatives mismanaged over 14 years; they failed to support industry too. Figures published today demonstrate that Britain has dropped out of the top 10 countries for manufacturing for the first time since the industrial revolution. I welcome my right hon. Friend’s commitment to leveraging millions more in private investment to make up for the record low levels of private investment we saw under the previous Government. Does she agree that the latest manufacturing figures show how critical it is that the Government work closely with business and trade unions on a long-term industrial strategy?
Rachel Reeves
First, it is an extraordinary omission that the previous Government did not set affordability criteria for the independent pay review bodies, which meant that they were able to come back with these recommendations. It would be almost without precedent not to accept recommendations from an independent pay review body. If the hon. Gentleman wants to go to the doctors, nurses, teachers, police officers and those in the armed forces in his constituency and say that they do not deserve a pay increase in line with private sector wages, that is up to him, but I believe that those public sector workers deserve those pay increases.
On pensions and the winter fuel payment, this is not the decision I wanted to make and it is not the decision I expected to make, but we have to make in-year savings, which is incredibly difficult to do. Without doing that, we would put our public finances at risk. We are ensuring that everybody who is entitled to pension credit—the poorest pensioners—continue to get the winter fuel payment, and we will work with the Department for Work and Pensions, local authorities and charities to boost the take-up of pension credit.
Rachael Maskell (York Central) (Lab/Co-op)
Thank you, Madam Deputy Speaker, and welcome to your place.
I thank my right hon. Friend for her forensic approach to the nation’s finances. As she digs deeper, she will see that York, the city I represent, is at the bottom of many of the matrices for the funding formulas. Will she look at the funding formulas before the Budget so that we can see the distribution of funding? The last Government handed out, for pet projects, much of the money that she is trying to get control of now, but will she look at how that is distributed across the country?
Rachel Reeves
I can see, on behalf of the hon. Gentleman’s constituents, the frustration and anger that he feels at the previous Government letting his constituents down so badly by not funding the hospitals that they promised. I commit to my right hon. Friend the Health Secretary meeting everybody affected. We also have a workforce plan, to invest in the future workforce in our national health service, and we are announcing today that we are accepting in full the recommendations of the independent pay review bodies to pay properly our doctors, nurses and others who work in our NHS.
Torsten Bell (Swansea West) (Lab)
Congratulations on your new post, Madam Deputy Speaker.
There can be reasonable political debate across the House about the total levels of public spending—there was a lot of that during the election campaign, with our calling for higher levels of public investment—but there should be complete agreement about the need for the Treasury to ensure that public money is well spent. At the top of that is making sure that the policies and commitments of every Department match their budgets. We hear from experts right around the country today that they do not match those budgets, so can the Chancellor reassure this ex-Treasury official, this House and my Swansea constituents that this will never happen under this Labour Government?
Rachel Reeves
I thank my hon. Friend for that question and welcome him to his place in this House—he speaks powerfully, based on his previous experience. I will fix the mess that we have inherited, but it is a terrible mess: a £22 billion in-year gap between what was forecast to be spent and what was actually being spent by the previous Government. We will get a grip on our public finances; that requires tough choices, but that is the role of Chancellor, and it is the role of Government. These are choices that the previous Government ducked and diverted, but we will make the difficult decisions to get our public finances back on a firmer footing.
Madam Deputy Speaker (Caroline Nokes)
We could do with some masterclasses in short questions and short answers.
Nick Timothy (West Suffolk) (Con)
Earlier, the Chancellor quoted Paul Johnson of the Institute for Fiscal Studies, but she omitted the end of his comments. He said that half of the spending hole she claims is public sector pay
“over which govt made a choice”.
That is the truth, is it not? The Chancellor does a good shocked face, but she chose to create her own spending hole, did she not?
Rachel Reeves
There is nothing pro-growth about making commitments that we cannot afford. There is nothing pro-growth about having £22 billion of unfunded commitments. We saw that when Liz Truss did her mini-Budget less than two years ago, and right hon. and hon. Opposition Members would do well to learn that lesson.
Clive Lewis (Norwich South) (Lab)
I welcome you to the Chair, Madam Deputy Speaker.
My right hon. Friend the Chancellor will probably not be too surprised to hear that when it comes to wasteful and expensive vanity projects, the Conservative party has not confined itself to national matters. Conservative-run Norfolk county council is attempting to push through a £300 million vanity road known as the Norwich western link, which measures 3.9 km at a cost of more than £70 million a kilometre. Will she look at that environmental and financial disaster, and work with those of us who know that there are more cost-effective and ecologically sound alternatives?
Rachel Reeves
Yes, page 5 of the “Fixing the foundations” document that we have published today sets out the pressures on public spending. On rail services:
“Pressures have emerged on rail finances, primarily due to the weaker-than-expected recovery in passenger demand”,
as well as the cost of industrial action, have led
“to a pressure of £1.6 billion”
in this financial year alone.
Christine Jardine (Edinburgh West) (LD)
I would also like to welcome you to the Chair, Madame Deputy Speaker.
Much of what the Chancellor says I welcome—no fresh income tax, national insurance or VAT—but I am sure the Chancellor will recognise the concern that many pensioners, particularly in the coldest areas of the country, will be feeling at the announcement of the withdrawal of winter fuel payments. Although she is saying that she will work on bringing more people forward and encouraging them to sign up for credits, can she tell us how she is going to do that if she is also going to cut the Government communications budget?
Rachel Reeves
If our economy had grown at just the average rate for OECD economies over the past 14 years, it would today be worth £140 billion more. That would have been worth £5,000 for every family in Britain and would have meant an additional £58 billion for our public services, without increasing tax by a single penny. That shows how important economic growth is, which is why getting our economy growing is the No. 1 mission of this Government.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
Thank you and welcome to your place, Madam Deputy Speaker.
The estimates day provisions presented by the Chancellor to the House last week included a capital departmental expenditure limit of £12.655 billion for the Department of Health and Social Care. We know that it included the funds for the new Hillingdon hospital, which was granted planning permission and where work has already started. Does the Chancellor of the Exchequer stand by what she told the House in the estimates day debate, on which we all relied when casting our vote? Can she therefore assure my constituents that that hospital project, which was fully budgeted for and where work has already started, will be delivered by this Government?
Rachel Reeves
I can fully understand why the hon. Gentleman’s constituents are so angry with the previous Government for leaving this mess and making unfunded commitments. I assure him that projects that have already started, such as the station he mentions, will go ahead.
Jim Shannon (Strangford) (DUP)
Still the strongest legs in the Chamber, Madam Deputy Speaker. Thank you for calling me to ask a question.
I am very pleased to hear the Chancellor’s statement. The clear financial predicament is one that all the United Kingdom of Great Britain and Northern Ireland is in together. Will she confirm that, in light of the budget gap and the welcome announcement of the junior doctor pay offer, savings will be made in ways that do not affect required pay increases at the expense of our health staff, but that they will focus on cutting back on unnecessary quangos, on the estimated £500 million of taxpayers’ money that has been spent on issues such as diversity and inclusion—although important, they do not deserve priority in public spending—or on vanity projects such as Casement Park in Northern Ireland?
Paul Holmes
On a point of order, Madam Deputy Speaker. May I raise a significant issue that I am concerned about, in relation to the Chancellor’s statement? [Interruption.] The Chancellor obviously does not want to stay in the Chamber to hear this.
In the course of her remarks, the Chancellor appeared to indicate that the Government had knowingly laid wrong or misleading estimates before the House on Thursday last week which differed significantly from what she has presented today, one working day since those estimates were laid. This, if true, is of serious concern. What steps can we take to ensure that the Government retract either the estimates laid or the document that they produced today, and can you tell me whether this possibly constitutes a breach of the ministerial code?
Madam Deputy Speaker (Caroline Nokes)
The hon. Member will know that the Chair is not responsible for the content of contributions made by Ministers, but I am sure that his concern has been heard on the Government Benches. I am sure that if an error has been made in this instance, the Minister will seek to correct it as quickly as possible. It is for the Government to decide on the estimates that they put before the House.
Kit Malthouse
Further to that point of order, Madam Deputy Speaker. The Chancellor of the Exchequer made certain assertions about timing during her statement. However, we know from the media that the contents of the statement were briefed to The Guardian at 8.58 pm on Thursday, just after the estimates had been voted on. While I understand that the Chair is not responsible for the content of what is said at the Dispatch Box, the Chair is responsible for the integrity of documents that are laid before the House and on which we vote and rely. May I ask whether this is a matter for the Prime Minister in his governance of the ministerial code, or for the Commissioner for Standards in his upholding of standards in the House? Prima facie, in the absence of any evidence from the Chancellor, it looks as if we have all been misled.
Madam Deputy Speaker
The right hon. Member will know as well as I do that that is not for the Chair to decide. It is for the Government to decide what they put in their estimates and in documents that are published.
Stuart Anderson
Further to that point of order, Madam Deputy Speaker. The Chancellor said—for transparency—that she had found out about everything this weekend, but last week, prior to this weekend, she said that the Treasury had also met the Office for Budget Responsibility to explain how bad things were. The two cannot both be correct. Could the Chancellor come to the House and correct the record?
Madam Deputy Speaker
I have made it very clear that it is not a matter for the Chair. Those on the Government Benches will have heard three points of order on the same subject. If they wish to come to the House, I am sure the Chancellor will.
HMRC Self-Assessment Helpline
Caroline Nokes Excerpts(8 months, 1 week ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Nigel Huddleston
Very simply, we have one of the lowest tax gaps reported in the world, at about 4.8%, precisely because of the clarity of the tax system and the efficiency of HMRC in gaining the tax that is owed. Of course there are customer service challenges, and I am having conversations with HMRC about that. HMRC is also held to account in the Chamber, the Treasury Select Committee and elsewhere, as appropriate. It is important that we recognise that HMRC received 38 million telephone calls and 16 million pieces of correspondence in 2022-23. If it were a private sector business, we can see how it would make sense strategically to move, where appropriate, as much of that activity as possible online, where it can be dealt with more appropriately and often more quickly.
Caroline Nokes (Romsey and Southampton North) (Con)
The Women and Equalities Committee, which is currently carrying out an inquiry on the rights of older people, this week met Independent Age and a range of stakeholders in Andover. They made the point that older people need to be able to access all services on the telephone, as people who are disabled or have a visual impairment find online services difficult. To be able to communicate effectively, people who are hard of hearing need websites with a British Sign Language overlay. Independent Age and the stakeholders I met were horrified at yesterday’s announcement on the closure of the helpline.
What consultation has there been with my hon. Friend the Member for Mid Sussex (Mims Davies), in her expanded role as Minister for Disabled People, on the potential impact of these changes? When Members of Parliament deal with HMRC on constituency casework, it now tries to push us into using the telephone rather than email. Can the Financial Secretary assure me that vulnerable people will still be able to use telephone services? Will he comment on the contradiction between how Members of Parliament and the public are dealt with by HMRC?
Nigel Huddleston
I assure my right hon. Friend that we are having live conversations with HMRC about how it communicates with Members of Parliament on behalf of our constituents. Some Members tell me that they would prefer a telephone call, whereas others would prefer email. It is important that we have both. I am more than happy to communicate views and opinions from across the Chamber on that point. I am well aware that one of the biggest areas of concern about yesterday’s announcement, and one of the reasons why the feedback has been so loud, is that vulnerable people, including those with disabilities, might not be helped. It was never the intention or the plan that such people would be unable to access online, webchat or other channels.
Future of UK Capital Markets
Caroline Nokes Excerpts(9 months, 3 weeks ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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Caroline Nokes (in the Chair)
I will call Alun Cairns to move the motion and then the Minister to respond. There will not be an opportunity for Mr Cairns to wind up, as is the convention for 30-minute debates.
Mortgage and Rental Costs
Caroline Nokes Excerpts(1 year, 4 months ago)
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Caroline Nokes (Romsey and Southampton North) (Con)
On a point of order, Mr Deputy Speaker. I rise to seek your advice. Following the ten-minute rule Bill of the Member for North West Leicestershire (Andrew Bridgen) this afternoon, a number of right hon. and hon. Members of this House have been accused of being in support of grooming children. I have looked at the Metropolitan police’s website, which specifically says:
“Grooming is when a person builds a relationship with a child, young person or an adult who’s at risk so they can abuse them and manipulate them into doing things. The abuse is usually sexual”.
That accusation has been retweeted by the Member for North West Leicestershire. I seek the House’s and indeed your advice, Mr Deputy Speaker, as to what action Members can take to ensure that there is some sort of sanction on that—I believe—unparliamentary behaviour.