Pub Companies

Caroline Nokes Excerpts

Tuesday 21st January 2014 Commons Chamber

[Caroline Nokes (Romsey and Southampton North) (Con)]

I shall keep my comments as brief as possible because the problems with pub companies have been well rehearsed this afternoon. I would like to thank the hon. Member for Chesterfield (Toby Perkins) for mentioning the Abbots Mitre in Chilbolton; I can reassure him that the pub is still open and doing business. In that instance, however, there have been significant problems with the tie. That caused difficulties for the local community, which then sought to establish a community buy-out to make sure that their much-loved local is still open.

There are numerous examples in Romsey and Southampton North of previously successful and popular pubs shutting their doors. Some of the closures have been temporary. I am pleased that the Hunters inn in Romsey, for example, has reopened and is doing well. I echo the hon. Member for Plymouth, Moor View (Alison Seabeck) in saying that it takes a very special type of person to make a success of running a pub. The Hunters inn is a good example because the landlord there is also the landlord of two other pubs in the immediate Romsey area. He has certainly worked hard with pub companies to make sure that he can make a go of it. I am sure that it is partly attributable to his strong negotiation skills when it comes to arranging and agreeing leases.

However, this afternoon I want to focus on a slightly less happy example: the Stoneham Arms in Bassett, which closed in the middle of last year. I fear that what I am about to say is almost inevitable: the pub was owned by Enterprise Inns and is due to be converted to a Co-op store, although there is already one just a few doors away. I have no doubt that there is a sound business model to add to the existing retail offer in Bassett Green road, because otherwise the Co-op would not be seeking to do that, but the Stoneham Arms as a pub provided a meeting place for the community, and there are precious few such facilities left in Bassett. We often talk about the need for more community cohesion, but pubs can and do provide ideal meeting places.

I know that pub companies often cite a lack of interest on the part of potential future tenants as one of the reasons why they are obliged to consider alternative uses. Enterprise Inns informed me that the Stoneham Arms had been marketed on extremely competitive terms in an attempt to find a new publican, and that, in its words,

“not one serious enquiry was received to operate the premises as a public house”.

However, we cannot know how competitive those terms were, or, indeed, what other bars there were to people seeking to run the premises as a pub. Nor can I judge how significantly the beer tie acted as a deterrent to potential publicans, but I am convinced it played a part. The tie, the nervousness with which publicans regard possible abuses of it, and the general uncertainty that exists in the industry as a whole have come together to present a very bleak picture.

As we have heard repeatedly this afternoon, publicans just want to be able to earn a decent income—and must work incredibly hard to do so—and I believe that regulation is necessary to make that a possibility. Those in the trade seek certainty, fairness and reassurance that the Government are on their side, to ensure that they can run their business models.

Time is of the essence. As we have heard, 26 pubs are closing each week, and the Stoneham Arms is just the latest in a long list of pubs in my constituency that have either been lost or come under serious threat. The Woodman, also in Bassett, is now a Tesco Express, and in the villages of my constituency many pubs have been boarded up. I do not pretend that that is just because of pub companies and beer ties. Indeed, a pub in my own road is currently being marketed, and as far I know it did not have a contract with a pub company. However, we know from CAMRA that the rate of closures is increasing, and that many in the trade are looking to the future and considering their positions very carefully.

I realise that the Minister has heard a great many exhortations about timely action today. I welcome the amendment and the fact that it is supported by the hon. Member for Leeds North West (Greg Mulholland), whom I have always regarded as something of an expert on this issue. As he has said, it has and deserves cross-party support. We have heard from the Secretary of State that statutory regulation is needed, and there is agreement on that among Members on both sides of the House, but it is vital that when that is done it is done well, so that it works for the whole of the licensed trade and, indeed, its customers.

Sixth-Form Colleges (VAT)

Caroline Nokes Excerpts

Tuesday 17th December 2013 Westminster Hall

[Lisa Nandy]

Absolutely. I pay tribute to the work done by my hon. Friend and many of the other Members present. The fact that there are so many Members here for such a short debate should tell the Minister that there is huge strength of feeling throughout the House on this issue.

All of this would make more sense if the sector were failing, but taken as a whole, sixth-form colleges are not only lean and efficient institutions, according to the National Audit Office; they are also among the best existing provision for 16 to 19-year-olds. Some 80% of them are rated as good or better, and they consistently rate higher than other types of provision in terms of added value. I know that St John Rigby college in my constituency does tremendous work with young people from deprived backgrounds and outdoes almost every other type of provision in getting those young people to university.

[Caroline Nokes (Romsey and Southampton North) (Con)]

I congratulate the hon. Lady on securing this important debate. Does she agree that 16 to 19 provision in further education colleges—outside a school setting—can sometimes provide the impetus that 16-year-olds who might not have done well at school need to enable them to achieve their GCSEs and then go on to A-levels?

[Lisa Nandy]

The hon. Lady is absolutely right. I am grateful to her for raising that issue. The culture in sixth-form colleges is enormously beneficial to such young people, and the staff are obviously passionate and determined to ensure that those young people reach their potential.

In conclusion, Ministers have accepted that this situation is unfair, so will the Minister who is here in Westminster Hall today take steps to create a level playing field for sixth-form colleges?

Oral Answers to Questions

Caroline Nokes Excerpts

Tuesday 10th December 2013 Commons Chamber

[Caroline Nokes (Romsey and Southampton North) (Con)]

T10. Trojans sports club in my constituency is a brilliant example of a multi-sports club that encourages participation in a wide range of sports. What steps is my hon. Friend taking to help multi-sports clubs, which sometimes feel disadvantaged compared with single-sports clubs?

[Nicky Morgan]

The Government want to support all sports clubs and encourage as many people as possible to participate in grass-roots sports, which is why we recently announced changes to the community amateur sports clubs regime that we hope will benefit up to 40,000 sports clubs in this country. I hope that the club in my hon. Friend’s constituency will take advantage of that. One of the best things we have done is extend corporate gift aid so that local businesses that donate to sports clubs will be able to offset their donations against their corporation tax bill, which I hope will make a real difference to their income.

Interest Rate Swap Derivatives

Caroline Nokes Excerpts

Thursday 24th October 2013 Commons Chamber

[Caroline Nokes (Romsey and Southampton North) (Con)]

I congratulate my hon. Friend the Member for Aberconwy (Guto Bebb) on his tireless work to bring this matter to our attention, on having secured this second debate and ensuring that so many colleagues are here today, and on his enormous hard work as chair of the all-party group on interest rate swap mis-selling.

The last time we debated this subject, I was aware of only three constituents affected by interest rate swap agreements and described it then as a niche problem. Since then, however, the number of constituents affected—that I am aware of—has doubled to six. While the problem affects only a small number of constituents, the figures involved are eye watering—for two of my constituents, the sums run into several million pounds—but what has struck me is the features they all have in common: they are all small business people working hard to build up and expand their businesses. Whether in student lets, the leisure industry or farm diversification, they have all sought, ostensibly with the help of their banks, to grow their business, provide more employment and greater opportunity in the local area and, of course, help our economy. Some have quite impressive premises; others are literally run out of a garden shed or a room above the garage, but until they were unwittingly sold a product quite unsuitable for their circumstances, they had all enjoyed good relationships with their banks—those frankly are now in tatters.

Over the last few days, undoubtedly like other Members, I have suddenly started receiving updates from the banks about the progress they are making, setting out how they are compensating customers mis-sold these products and in my view trying to gloss over what have to date been quite unacceptable delays. I cannot repeat what the managing director of the Landish Group, which operates in my constituency and the constituencies of other hon. Members, said to me about the update I forwarded him from his own bank. The language was quite unparliamentary, so I will not repeat his words, but I can understand his frustration.

As we have heard, the banks have collectively spent more than £500 million on their own administrative costs, but in nearly 16 months they have delivered only a handful of decisions; and only 32 businesses have received any payments at all. It strikes me that a number of key issues must be addressed. First, on the speed of redress, I would like to reiterate what my hon. Friend the Member for North Herefordshire (Bill Wiggin) said about the snail’s pace of payments. It is painfully slow, but it was notable that as this debate drew close, there was a flurry of updates and self-congratulatory crowing from some of the banks about how they had made contact with 96% of their customers. Well done! How about paying back some of the money?

Secondly, we need to separate direct and consequential losses. One of my constituents had his decision from Barclays on 8 July. The bank admitted that he had been mis-sold and said that the swap would be torn up and exchanged for a simple cap at a cost of £29,000 and that, allowing for the cost of the cap, his direct costs—£1.35 million—would be returned, but four months on, he has seen no sign of that money. He placed a consequential loss claim at the beginning of August, which has not yet been accepted, declined or even discussed, and Barclays will not return the £1.35 million that it acknowledges it owes him until it has agreed the consequential losses, which it will not even talk about. I entirely endorse the call from my hon. Friend the Member for Aberconwy for the direct and consequential losses to be separated, so that the banks can crack on and refund some of the money owed, allowing businesses to invest, employ people and carry out redevelopment that might best take place at this time of year.

Thirdly, there is the thorny problem of what constitutes a sophisticated customer. Two of my constituents were judged to be sophisticated and so, along with 10,000 others, were excluded from the FCA redress scheme. One was deemed to be sophisticated despite his having no finance director; having never heard of a swap before he was sold one; doing his own accounts on a spreadsheet; having no in-house accountant; not being a limited company or even registered for VAT; and literally running his business out of a garden shed. I do not think it could get much less sophisticated if it tried.

[Bill Wiggin]

I am most grateful to my hon. Friend for giving way. I hope she needs the extra minute. Does she agree that an arbitrary limit on the number of employees is no way to determine sophistication in relation to financial products?

[Caroline Nokes]

I certainly agree with my hon. Friend about that.

All my constituent is asking for is the chance for what happened to his business to be reviewed, because of the situation he now faces—owing to the swap product, the fees, the charges and the circumstances of the product, an initial £3 million loan has spiralled to a massive debt of £9 million in just five years. The product far exceeds the term of the loan, time-wise. He has found himself having to work to the limit every day, seven days a week, just to make sure that he can make the repayments on the loan.

I was somewhat relieved today that my constituent did not turn up wearing a snail suit, which he was threatening to do—sadly, it was unavailable—but I am conscious that Bully-Banks is organising some sort of snail racing today. I have no idea whether it has taken place yet, but I can well understand why the snail has become the emblem of the campaign. I sincerely hope that the Financial Secretary will act to help these small businesses—which are, after all, the lifeblood of our economy, but have found themselves caught up in this nightmare—and make sure they are given swift and fair redress after all this time.

Beer Duty Escalator

Caroline Nokes Excerpts

Thursday 1st November 2012 Commons Chamber

[Caroline Nokes (Romsey and Southampton North) (Con)]

I pay tribute to my hon. Friends the Members for Burton (Andrew Griffiths) and for Leeds North West (Greg Mulholland) for securing the debate. I agree with the hon. Member for Easington (Grahame M. Morris) that this is a powerful and important message for the Minister.

I also want to pay tribute to the right hon. Member for Southampton, Itchen (Mr Denham), my immediate constituency neighbour, who drew attention to the conversion of The Woodman pub in my constituency to a Tesco. I remind him that The Castle Inn has on occasion—I recollect this from the 2001 general election—played host to a polling station, which is evidence of a pub playing its role in the big society.

Historically, Romsey is a brewing town. I vividly recall from my primary school days the smell of the brew from Strong’s brewery hanging over the playground. On my 11th birthday the last brew began at Romsey brewery, but I am pleased to say that after a short gap Romsey is now host to a micro-brewery in Flack Manor, which brews some wonderful ales. The proprietor of Flack Manor, Nigel Welsh, and publicans in Romsey and Southampton North have forcefully told me that the beer duty escalator is deeply harmful to their commercial success. They are not alone; their opposition is shared by such august organisations as CAMRA and the Society of Independent Brewers.

The pub trade employs nearly 1,000 people in my constituency and contributes more than £14 million to the local economy, but publicans tell me that their trade is held back by a policy based on false assumptions about its social, economic and health benefits.

[Mr Robert Buckland (South Swindon) (Con)]

My hon. Friend highlights the contribution made to her local economy. In Swindon, 1,425 people are employed by the brewing and pub industry, which adds about £17.2 million to our local economy. The issue touches not just Romsey but every community in the country.

[Caroline Nokes]

My hon. Friend makes an excellent point. The economic argument is also flawed. As we have heard many times today, the amount of money raised through the Exchequer since the rise in beer duty in 2004 has failed to match the predicted levels of revenue. That has cost 5,000 jobs a year and VAT revenue has been lost through reduced beer sales.

The basic laws of supply and demand dictate that if the price of a commodity is increased, demand will fall. Demand for beer in pubs certainly has fallen. I am not suggesting that the beer duty escalator was the sole reason for the closure of pubs such as The Vine Inn in Stockbridge, or The Wheatsheaf in Braishfield, which has fortunately now reopened, but figures show that, despite the Olympic games and Euro 2012, in the three months to October this year pubs sold 117 million fewer pints than in the same period last year. I am not suggesting that nationally we are drinking less beer; we are simply changing our habits, giving an advantage to supermarkets over the traditional pub.

Before the introduction of the escalator, it was four times more expensive to drink in a pub than at home, but it is now 10 times more expensive. Beer sales in pubs are falling and the proportion of alcohol consumed outside that responsible, supervised environment is increasing. That brings me to my second point, about the benefits of the escalator to health and social policy. I believe that that merits close scrutiny. A recent study of the impact of alcohol pricing on consumption in Sweden produced some interesting results, showing mainly that increasing the price of alcohol in an attempt to reduce consumption might actually have the opposite effect, since drinkers who were buying more expensive brands simply switched to cheaper drinks and as a consequence bought and drank more. In other words, making it more expensive to drink in pubs simply pushes people to drink cheaper alcohol and possibly fuels binge drinking.

Binge drinking is a real and growing problem. Just last night Romsey police tweeted a picture of a massive quantity of alcohol they had seized from under-age drinkers. The beer duty escalator does nothing to prevent that. I give full credit to the local police for their action, and I encourage hon. Members to look at that photo on Twitter. It does not show alcohol bought at a pub—far from it. The cut-price bulk offers on alcohol in supermarkets often encourage parents to buy more, and that means easier access to large quantities of alcohol stored at home.

According to data from the World Health Organisation, alcohol consumption in the UK increased by approximately 4% between 1985 and 2003, whereas in Europe it decreased. Over the same period, alcohol-related harm has grown. For example, there were 8,758 alcohol-related deaths in 2006, twice as many as 15 years previously. The Government know this: in a preliminary assessment of the economic impacts of alcohol pricing policy, published by the Home Office in June 2010, the conclusion stated that duty increases are

“a ‘blunt instrument’ that does not target those drinkers who cause harms”.

The tax raises little revenue, causes unemployment and encourages binge drinking on cheap alcohol—and the taxpayer has to bear the burden.

I am on record as supporting minimum pricing for alcohol, but that does not in any way contradict my support for a review of the beer duty escalator. Major supermarket chains, such as Tesco, ruthlessly promote cut-price deals, so it is not the traditional public house, supplied by excellent local breweries, that promotes excessive drinking, but the supermarkets, which use their ability to buy and sell alcohol cheaply, often as loss leaders, to the detriment of the local pub, the local economy and the local community.

Green Economy

Caroline Nokes Excerpts

Thursday 28th June 2012 Commons Chamber

[Caroline Nokes (Romsey and Southampton North) (Con)]

I add my congratulations to those of other colleagues to my hon. Friend the Member for South Thanet (Laura Sandys) on securing today’s important debate. As a member of the Environmental Audit Committee, I am conscious—as our Chair, the hon. Member for Stoke-on-Trent North (Joan Walley), who is no longer in her place, mentioned earlier—of the need to have a green thread running through every area of Government policy. That, of course, gives us the opportunity to have a very wide-ranging debate today. I am conscious, however, of the number of Members who wish to speak, so I shall try to keep my comments brief and restrict them to just two areas.

First, we have seen over the last few days the importance of fuel tax as a fiscal measure, and we are all well aware of the impact of high fuel prices on our constituents—not just on motorists, but on the consumers of goods transported by road, which in this country is, of course, absolutely everything. The carbon emissions from road transport make up a significant proportion—over one fifth—of the UK’s total CO₂ emissions. Passenger cars, in particular, emitting in the region of 76 million tonnes of CO₂ annually, contribute 13% of all CO₂ emissions.

Clearly, this is an area where Government policy must be used constructively not only to encourage shifts in modes of transport, but to encourage road transport users to look for cleaner, greener alternatives. I am a big fan of differential rates of vehicle excise duty, as there is nothing that concentrates the mind of the user quite so much as choosing to drive a car that attracts a lower duty tariff. I urge Ministers to ensure that ultra-low levels of duty are retained for the cleanest and most efficient engines.

I do not wish to dwell today on passenger transport and the private car, so I shall move on to road haulage and the freight industry. This is an area of policy relating to green transport, which is a matter of concern to me, and I have asked a number of parliamentary questions on the subject. I particularly emphasise today the duty differential for used cooking oil biodiesel, which expired in March this year. I appreciate that biodiesel is currently little used in the passenger car sector, although it does have potential; it is far more significant in freight transport, which accounted for 26 million tonnes of CO₂ emissions in 2010.

Without the support of the duty differential, many biodiesel users will inevitably switch back to fossil fuels, resulting in higher emissions and risking the loss of up to 3,000 jobs in the low-carbon economy. The double certificates allowed under the renewable transport fuel obligation look unlikely to be able to support this sector, particularly given that recent certificate values have fallen as low as 10p. While this industry is maintaining an ongoing dialogue with the Minister’s colleagues in the Department for Transport, looking to find an alternative solution, Treasury support and awareness is also vital.

The second area of policy I wish to highlight is house building. The hon. Member for Luton North (Kelvin Hopkins) mentioned the efficiencies that can be made through better insulation. Better use of water should also be highlighted, as should better and more efficient boilers. Linden Homes, a house building company that operates in my constituency, has come up with an innovative way to help the Government to progress a zero carbon policy. Its proposal to create a “new homes sustainability bonus”, has the potential to contribute towards a zero carbon policy in a sustainable and affordable way, at a time when the industry faces significant challenges.

At present, all new homes constructed in the UK are required to meet stringent Government energy and water efficiency standards—and rightly so. This company’s idea, as part of the policy mix for national carbon reduction, is that developers could, for all new units built from 2013, contribute a new homes sustainability bonus paid into a central fund, which would then be used to find the most cost-effective ways to reduce carbon within the UK’s existing housing stock, which chronically falls behind new home standards and has significantly higher energy and water consumption. Only 40% of all homes currently have energy-efficient boilers.

[Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)]

My hon. Friend is making a very good point about existing housing stock, which is the majority of the stock in this country. Retrofitting and improving energy efficiency in those homes is good not only for business, but for consumers, particularly for those on fixed incomes such as the frail elderly and people in other vulnerable groups.

[Caroline Nokes]

I thank my hon. Friend for that comment. He makes exactly the point I was moving on to.

Last year, the Environmental Audit Committee went to visit the Sustainable Building Centre in Leamington Spa, where we learned that if everyone in the UK with gas or oil central heating installed a high-efficiency condensing boiler, we would save more than 6.5 million tonnes of CO₂ every year—and that is only one aspect.

[Kelvin Hopkins]

The hon. Lady makes a good point, but a 20% VAT charge is still made, when it could be only 5% VAT. That would be one simple subsidy to encourage people to invest in better and more efficient boilers.

[Caroline Nokes]

I thank the hon. Gentleman for that, but my point is that if home developers were obliged to pay into a central fund, we could start to ensure that people in social housing and those on the lowest incomes do not merely think about cheaper energy-efficient measures, but have a grant to enable them to achieve that. The hon. Gentleman mentioned insulation earlier, but improvement is possible from double glazing, too.

Particularly at a time when my constituency and parts of the south-east are under water stress, we must start to look at finding better ways to use our water. We need to be more efficient through rain water harvesting, using grey water and taking simple measures to improve sanitaryware systems, so that the cistern from the lavatory uses less water. All these measures could be done very cheaply indeed.

According to the Energy Saving Trust, each person in the average UK home currently uses 150 litres of water a day. Level 6 of the code for sustainable homes seeks to reduce that usage to just 80 litres—but, significantly, that applies to new-build properties. As I have already said, however, they are a tiny proportion of our housing stock, and far greater savings—both in litres per day and cost to the consumer—can be achieved through working on older properties.

Independent research has indicated that by shifting the focus on to the existing housing stock of 25 million homes, rather than on the already energy-efficient new-build sector, great efficiencies and more value for money can be delivered for the nation as a whole. That scheme would mean that existing home owners would see reduced energy bills, social housing associations would benefit from reduced maintenance costs and local employment would receive a boost, thanks to the number of trades people needed to carry out the work. New home buyers would be spared additional costs, which would in turn help to ensure the viability of many development projects—a critical factor for the UK economy given the already chronic under-building due to economic constraints.

[Mr Robin Walker (Worcester) (Con)]

I congratulate my hon. Friend on her speech. She is making some important points about both water and heating, and about the work that can be generated. Does she agree that it is vital for the Government, when designing schemes, to work closely with the installers, who are key to people’s decisions about how to implement these policies in their homes?

[Caroline Nokes]

My hon. Friend is right. The Government must work hand in hand with industry and the installers to ensure that we come up with schemes that not only look good on paper, but work in the real world.

Evidence suggests that if the hearts and minds of consumers are to be won over to energy efficiencies, there must be demonstrable cost savings for them. In response to a survey conducted in April this year, 41% of people said that they would be prepared to pay nothing more to make energy efficiency improvements in their homes. A scheme of this kind has the potential to provide grants for householders, enabling work to be done at no cost to them while also saving money, reducing emissions, and helping the Government to meet their targets. Surely that it is a win-win situation.

I have mentioned water efficiency. A company operating in my constituency, i2O, has developed the advanced pressure management solution, the world’s first system to monitor and control water pressure through a pipe network. It is an extremely successful design which has been deployed throughout the world, and is most widely deployed to regulate water flow and manage leakages. Last month South East Water awarded the company a £1.5 million contract to help to reduce its leakage problems. In view of last month’s drought conditions throughout the country, I am sure that such technology will be needed more and more, and I am pleased that South East Water wanted to install the system as soon as possible. I urge the Minister to support companies such as i2O which are employing innovative and sustainable ways of managing water levels and distribution.

Let me again congratulate my hon. Friend the Member for South Thanet on securing the debate. I look forward to hearing the Minister’s response.

Interest Rate Swap Products

Caroline Nokes Excerpts

Thursday 21st June 2012 Commons Chamber

[Caroline Nokes (Romsey and Southampton North) (Con)]

I start by adding my congratulations to my hon. Friend the Member for Aberconwy (Guto Bebb) not only on securing today’s debate, but on the immense work he has done on this subject over the past few months.

I do not pretend that the mis-selling of interest rate swap agreements is a huge issue in my constituency; in fact, it has been raised by only a very small number of constituents who are local business owners. For the individuals affected, however, it is a massive issue, and as they contribute to the local economy, provide jobs for local people and use local services to assist with their businesses in the region, the knock-on effect has the potential to be very significant indeed.

It has been reported that RBS and Barclays, two of the UK’s biggest high street lenders to small business, have sold roughly 7,000 of these products between them. I can certainly add Lloyds bank to the list, as one of my constituents has had significant difficulties with that bank, which sold him this product several years ago.

Interest rate swap agreements are highly complex. As one of my constituents pointed out, these are the territory of corporate bankers, but have been sold to chip shop owners, to care home providers, as we have heard, and indeed to landlords. A constituent who approached me is the owner of a company that rents out a significant number of properties in Southampton, largely to the student market. He pointed out that, should his company fail, 1,000 individuals could be turfed out on to the streets of Southampton in the middle of their studies. What redress do these businesses have should it all go wrong?

Fear of the bank calling in the debt has kept many quiet. Micro-businesses have the option of going to the Financial Ombudsman Service, but that is possible only for those with small turnovers employing fewer than 10 people. My affected constituents are not eligible for assistance from the ombudsman, having too high a turnover and too many employees. So they have been forced to consider court action. However, as one of them said:

“how can you sue a bank you need to support you?”

In any case, the maximum redress the Financial Ombudsman Service can award is limited to £150,000, which is scant compensation when one of my constituents assures me that he has been charged an additional £6.1 million on a £3 million loan and he has already made payments into the interest rate swap agreement of over £1 million.

[Damian Collins]

Does my hon. Friend agree that this looks like old-fashioned extortion? Were the banks not simply trying to obtain the maximum possible rate, with the threat that rates might rise even higher unless people took advantage of the product?

[Caroline Nokes]

Let me reply to my hon. Friend by quoting a constituent who said to me, quite seriously, “I would have been better off going to Wonga.”

I welcome the FSA’s decision to review these products, and sincerely hope that the outcome will be assistance for the thousands of small businesses that have been affected. We should not forget that they are the lifeblood of the British economy. As that same constituent said, he is paying £3 million on top of the interest on an £8 million loan. The loan was for only three years, but the swap product was for 10. As he said, if he had not been stuck in the product he would have expanded more, employed more people, and paid more tax to the Exchequer. He also came out with a fantastic remark which really hit home in describing precisely the sort of small business man to whom these products have been sold. He said, “I left school with no qualifications. I learned my maths by scoring darts at my father’s pub. Yet suddenly I am involved in interest rate future, caps, collars, derivatives, curves, flows. All I wanted was a loan.”

My constituent is in no doubt about the fact that the loan to expand his business was dependent on the swap product. He has been quite clear about the position. His bank has been threatening him, telling him not to raise the matter with his Member of Parliament or to pursue the complaint via the courts. Land sales over which the bank has had a charge have been delayed until he makes his intentions regarding court action known to the bank. All the while, his business has been saddled with a swap product which, against the odds, he has managed to service. It has cost him more than £1 million over the last four years, and his business, family and employees have faced uncertainty.

I commend the work of my hon. Friend in pursuing this issue. I have no doubt that, as the motion says, prompt action is needed to ensure that small businesses do not continue to suffer as my constituents have. Their banks must not be allowed to threaten them.

Petrol and Diesel

Caroline Nokes Excerpts

Wednesday 23rd May 2012 Westminster Hall

[Robert Halfon]

My hon. Friend is completely right. Before I answer that, I should say that although I have received a lot of credit for working on the fuel campaign in Parliament, he is deputy chair of FairFuelUK and has done an enormous amount of work to help me behind the scenes. I must give credit where it is due. Haulage firms all over the country are closing down. Transport firms are closing.

[Caroline Nokes (Romsey and Southampton North) (Con)]

Southampton is in close proximity to Portsmouth ferry port. One big challenge faced by hauliers in the south-east is easy access to the continent and European lorry drivers coming over with much cheaper tanks of fuel.

[Robert Halfon]

Again, we need to consider that, as well as considering the charging of foreign lorries that come here. I recognise that the Government have made some progress, but those lorries must be charged a lot more. The playing field is not level. Why should our people suffer because foreign lorries have an unfair competitive advantage?

First-time Buyers

Caroline Nokes Excerpts

Wednesday 14th March 2012 Westminster Hall

[Sheryll Murray (South East Cornwall) (Con)]

I, too, congratulate my hon. Friend the Member for Winchester (Steve Brine) on securing this debate today. Buying a property for the first time is a huge undertaking for anybody, but doing so has become increasingly difficult, as we have heard, in the current economic climate. This issue affects my constituents in South East Cornwall. We have heard that it also affects the constituents of many hon. Members.

First-time buyer numbers have tumbled to levels not seen since 1974, with only 200,000 recorded first-time buyers in 2011, compared with 400,000 in 2005. People trying to get on the property ladder are struggling to do so, owing to the increase in house prices. The average UK property price increased from £163,000 to just below £165,000 in 2011. This correlates with the rising price of deposits, with many people needing to save for years to cover the cost.

[Caroline Nokes (Romsey and Southampton North) (Con)]

Does my hon. Friend agree that we should be worried about not only the falling number of first-time buyers, but the age of those first-time buyers? That is evidenced by the increase in deposits required. People have to get to a much greater age before they manage to save up the deposit.

[Sheryll Murray]

I was going to come to that point a little later. In fact, my hon. Friend is probably psychic. This is not purely an issue that affects young people; the average age of first-time buyers is 35.

The major issue is the fact that house prices are continually rising. Prices on the Nationwide index rose by 0.6% in February, and prices were 0.9% higher in February compared with a year ago. The house price to borrower’s income ratio has been gradually rising since 2007, making it harder predominantly for first-time buyers. Another issue is that the number of mortgage approvals has remained generally flat since early 2010, at below half pre-recession levels. Housing starts have increased since the recession, but still remain below pre-recession levels. The Government have recognised this issue. They have pledged to alleviate the struggle for first-time buyers, and I congratulate the Government on that.

In November, the Conservative-led Government launched a scheme to underwrite mortgages worth hundreds of millions of pounds for new homes. A central part of the new housing strategy is the £400 million get Britain building fund, which pays for the construction of up to 16,000 new homes. The fresh drive could result in a further 100,000 homes being built, so creating 200,000 jobs.

I also congratulate the Government on the two new initiatives that were launched this week, which will be crucial to aid first-time buyers. The NewBuy scheme makes it possible for first-time buyers and existing home owners to get a mortgage on a new build property with only a 5% deposit, as opposed to the 15% or 20% that we are used to. This deal means that where buyers have been typically required to save a deposit of between £30,000 and £40,000, they will now need only £10,000. The other scheme—it has been mentioned by previous speakers—is the right-to-buy scheme, which will enable council tenants to buy their homes at a discount and increases the maximum discount cap for tenants to £75,000. That will provide tenants who have the right to buy or preserved right to buy with a real incentive to buy their home, and that is no bad thing.

The schemes will make a big difference to the lives of constituents such as mine in South East Cornwall, where things are particularly hard for first-time buyers. Cornwall is a popular tourist destination, which attracts more than 5 million visitors each year. That has artificially raised house prices in my constituency, as it has become attractive to affluent people from all over the country buying homes or second homes. The average house price in Cornwall is £216,000, according to the Land Registry for England and Wales. That does not seem too high, but compared with the annual average wage in my constituency, it is very expensive. Average annual earnings in Cornwall are just under £21,000, well below the averages for the south-west and for Britain. That makes it hard for first-time buyers to come up with a deposit for a house or flat, as they are competing with wealthier holidaymakers who can afford properties in South East Cornwall. That is where the NewBuy scheme will have a positive impact.

The story was different 20 years ago. When I moved to my village from Stoke-on-Trent, I could buy a property that needed renovating. Although even then there was a massive difference in property prices, I had the opportunity to buy my own home. Sadly, young people in South East Cornwall do not have that option, as the older properties have already been sold and renovated. The situation is different from when I purchased a property in the 1980s.

As a Government, we are doing what we can to help first-time buyers. I am confident that the figures will become more encouraging after the Government’s introduction of these fantastic incentives.

Fuel Prices

Caroline Nokes Excerpts

Tuesday 15th November 2011 Commons Chamber

[Caroline Nokes (Romsey and Southampton North) (Con)]

I congratulate my hon. Friend the Member for Harlow (Robert Halfon) on the persistence that enabled him to secure this important debate.

The issue that we are discussing does not affect only rural constituencies. I am very conscious that 75% of the constituents who have contacted me come from the more urban parts of the constituency. The truth is that everyone is affected by rising fuel prices. Nevertheless, a disproportionate burden has been placed on those who live in rural areas. In parts of my constituency, people have no choice but to use their cars. Those who live in remote rural villages travel, on average, 10,000 miles a year just to gain access to essential services. One constituent told me, “This is not about luxury. I leave home for work before the first bus arrives in the morning, and I return long after the last one has gone back to the depot.” He has no choice whatsoever.

However, it is not only those who use their cars for their own journeys who are affected. We should also consider those who act as volunteer drivers and support charities, an increasing number of whom tell me that they are finding it too expensive to continue to help the community in that way. We should be thinking about ways of supporting them. Although they welcome the increase in the Chancellor’s approved mileage allowance, they say it is becoming increasingly difficult for them to play their part in helping the local community and reducing the burden on the local councils that would otherwise foot the bill.

[John Hemming (Birmingham, Yardley) (LD)]

Does my hon. Friend agree that because of the greater scarcity of fossil fuels, we should be aware of the costs of energy generally and in the long term, not just the short term?

[Caroline Nokes]

Absolutely. I hope that I shall have time to mention that at the end of my speech.

This is not just of concern to middle-income families who may be running two cars; it is a huge cost for low-income families who spend proportionally more of their incomes on fuel.

[Nadine Dorries (Mid Bedfordshire) (Con)]

I am sure my hon. Friend agrees that some of those low-income families are trying to establish their own businesses, or are already running small businesses such as, in my constituency, landscape gardening businesses. Winter is coming, and those people will now have to deal with the increase in fuel prices as well.

[Caroline Nokes]

That is indeed of real concern.

It is little wonder that so many of our constituents signed the e-petition—more than 110,000 members of the public called for the debate—and little wonder that the focus has been on the proportion of taxation in the current average price of £1.34 a litre.

[Susan Elan Jones (Clwyd South) (Lab)]

The hon. Lady is making a powerful speech. Could she make it even more powerful by saying that she would support a reversal of the increase in VAT on fuel?

[Caroline Nokes]

I am not convinced that that would be legal.

This morning I met representatives of the Freight Transport Association. They told me that high fuel prices have had a crippling effect on the logistics industry, whose business viability is determined by the price of fuel. Even the smallest rise makes a massive difference to them. A 5p increase in fuel duty adds another £2,350 to the annual price of running an articulated lorry, and the 3p increase that is planned for January would mean that a fleet of 50 vehicles would have to recover £37,000 more per year.

[Esther McVey (Wirral West) (Con)]

Will my hon. Friend give way?

[Caroline Nokes]

I am sorry, but I do not think I have time to do so.

Profit margins for hauliers are incredibly tight, which makes haulage a very vulnerable business. In particular, fuel companies are not willing to extend credit terms, with the result that some payments are shrinking to as little as three days’ worth. As haulage firms are often not paid for work for up to 60 days, this is very much a hand-to-mouth industry, and companies can afford to think only as far as January. That hinders growth, investment and further recruitment.

There are about 100 Freight Transport Association members in my constituency, which is, of course, close to a deep-sea port. Fuel duty is lower on the continent, and £1,000-worth of diesel purchased on the continent can give over 200 extra miles to the driver. That has led to European businesses becoming more competitive than their UK counterparts, further heightening the pressure on domestic hauliers.

I acknowledge that we are facing a very difficult economic situation, and that we need to take robust steps to tackle the deficit, and I also know that the planned rises are less than the previous Government had intended. It is a relief to constituents that the Government delayed the scheduled tax rises and have introduced a fuel stabiliser but, like others supporting this motion, I want us to have a stabilisation mechanism under which duty rises and falls in response to fluctuations in the underlying price of oil.

As I am a member of the Environmental Audit Committee, it would be wrong of me not to mention the impact motorists and hauliers have on our nation’s carbon footprint, but fuel taxation is a blunt instrument and the reality is that people in rural areas are having to bear the additional cost as they often have to make the same essential journeys as before.

There are alternatives to petrol and diesel that are more environmentally friendly. One of them is biodiesel, produced from used cooking oil. Over the last year, 99 million litres of used cooking oil was collected from restaurants, food manufacturers and caterers. It is an entirely sustainable fuel derived from a waste product and devoid of some of the negative impacts traditionally associated with biofuels. Therefore, if taxation on fuel is partly about encouraging behavioural change, rather than just being about revenue raising, the Government should encourage the use of this fuel, rather than see it as another target for increasing duty. The removal of the 20p per litre duty differential on this type of fuel, which is an excellent source of green energy, sends entirely the wrong message.

[Several hon. Members]

rose—