(4 years, 1 month ago)
Commons ChamberThis morning, almost a quarter of all MPs—about 150 of us—joined a Zoom call for the first meeting of the all-party parliamentary group on the 3 million workers who have been excluded from Government schemes.
Like many others in this House, the Minister will be aware that I have been quite persistent in raising the issue of the plight of limited company directors. On 1 May, I tabled a written question with a very specific, concrete proposal from Directors UK, asking the Treasury if it would consider the idea that limited company directors could submit dividend certificates through an online portal linked to HMRC’s self-assessment process. I was pleased when I got the response five days later, because it said that he would be reviewing that proposal.
A further seven days later, the Minister held a call with a number of Members of this House on the launch of the self-employed system, and again, when I raised it, he agreed to look at this specific proposal about the use of dividend certificates. A further five days later, I wrote again to the Minister, following up on that call and gently reminding him that I was looking forward to receiving a response. A further eight days later, in despair, I wrote to the Chancellor asking about the same issue, as well as many others who have been excluded from the schemes.
A further eight days later, on 3 June, we had another phone call when I raised this issue once again, and asked explicitly for a written response on why the dividend certificates idea had not been considered and why we could not get an answer. Much later, on 23 June, I got a response from a Treasury official—it was a response, but not an answer, and said simply that under current reporting mechanisms, it is not possible for HMRC to distinguish between dividends that are derived from an individual’s own company and those from other sources. It went on to state that targeting additional support for those who pay their wages via dividends is much more complex than existing income support schemes. It seems that the Treasury has thrown its hands up in the air and stuck the issue in the “too hard” basket. With all due respect, the Government must do better. It is clear that the Chair of the Treasury Committee, the right hon. Member for Central Devon (Mel Stride), and many other Members agree.
Here we are, with directors of limited companies, new employees and the newly self-employed, all of whom feel utterly abandoned by the Government who have labelled them as “too complicated” to support. That is also having an enormous impact on people’s mental health, and many cannot see a way out. They are spending their life savings, and are worried for their livelihoods and their homes. I have been trying hard for two months to get an answer to the specific, concrete proposal about the use of dividend certificates. I now ask again, for a sixth time, whether we may have an answer to that specific proposal, whether it can be used technically, and, if it cannot, for an explanation as to why it will not work so that Directors UK and others can come back with a new idea.
(4 years, 4 months ago)
Commons ChamberWhen we announced the job retention scheme, I said that it would apply to those who were known to HMRC on 28 February. That was how the scheme was designed and set up. Over the last few weeks, we have moved that date to 19 March, which brings an extra few hundred thousand people into it and means that overall, just shy of 30 million people in employment are able to benefit from the furlough scheme. It is an extraordinary achievement for the team in HMRC to have conceived that in this short space of time.
Pubs and restaurants have been hit particularly badly by covid-19. Those with a rateable value of more than £51,000 do not qualify for the retail, hospitality and leisure grant fund. Six of the big pubcos are still charging their tenants rent, and now pubs are being told that they will be some of the last to reopen once restrictions start to lift. Will the Government commit to extend the retail, hospitality and leisure grant fund to properties with a rateable value of up to £150,000, instruct the big pubcos to stop charging their pubs rent, and commit to extend the furlough scheme for as long as pubs and restaurants have to remain closed or for as long as their income is affected by social distancing measures?
The hon. Member is absolutely right that companies in the retail, leisure and hospitality sector are the hardest hit during this crisis. Of course, they can avail themselves of all the various interventions we have put in place more generally, but they also have one specific benefit: for most of these businesses, rent is a significant part of their cost structure, which is why we have given them a complete business rates holiday for this entire year.
(4 years, 5 months ago)
Commons ChamberUrgent 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.
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I am sorry that the hon. Gentleman wishes to criticise the tone of my response. I am clear that this is an unprecedented crisis. The Government have made a series of announcements, and will be making further announcements. A range of sensible suggestions have been made, many of which we are already examining urgently.
In response to specific questions about technical matters, I have had to use quite complex and unfamiliar constructions. If I did not do that, I would not be answering the question. If I used too many soundbites, I would be criticised in another way. We will do everything we can to take on board the questions that have been raised today to come forward with a comprehensive package that all our constituents will see as effective.
I asked the Government 10 days ago whether they would guarantee the wages, rents and business rates of small businesses. The measures that have been announced are riddled with problems. Businesses in St Albans tell me that they do not qualify for the secured loans or the grants up to £25,000, and they are being told that business interruption insurance will be payable only after the event when the insurance company can see how much they have lost. That is not good enough. Businesses are saying that Her Majesty’s Revenue and Customs must be used, not the benefits system; that they need grants, not loans; and that wages for all must be guaranteed, and guaranteed today.
(4 years, 6 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I thank the hon. Member for Dudley South (Mike Wood) for securing this debate. As the newly elected vice-chair of the all-party parliamentary group for beer, I am pleased to be able to speak in this debate.
In St Albans, there are a number of independent businesses that do not know if they will survive this financial year because of eye-watering increases in business rates. This Government have seven weeks to save them. St Albans is not only home to CAMRA—the Campaign for Real Ale, of which I must declare I am a member—but has regrettably also become home to the Save St Albans Pubs campaign and the national Save UK Pubs. More than 30% of our pubs have a rateable value greater than £51,000, which means they are not eligible for the business rate relief announced in the Queen’s Speech. I urge the Minister to look at that cap again and, as an immediate measure, extend the business rate relief beyond the £51,000 cap for pubs.
We all know that the business rates system is broken. We all know that it punishes property-based businesses, as well as those successful licensees who increase their turnover, but the implication of that is that our landmark pubs are most at threat—the landmark pubs that draw people into our towns and city centres. They are part of our landscapes and our tourist guides. They are the pubs that are printed on postcards, that are at the centre of food and drink festivals, and that host the charity events. They are steeped in our nation’s history and heritage.
Let me try to persuade the Minister with a few examples. Sean Hughes is the licensee of a pub called The Boot—the war of the roses started on its doorstep. The pub’s rateable value has gone up by 281% from £27,000 to £76,000. The Boot now has to sell an extra 22,000 pints a year just to cover the increase in business rates. It is simply not possible.
Christo Tofalli is the owner of Ye Olde Fighting Cocks, which dates back to the eighth century and is recorded in “The Guinness Book of Records” as the oldest inn in England. It has been forced to close two days a week to make savings to off-set the increase in business rates. The Cock, a grade II listed building, dates back to around 1600. Its rateable value is up by 216%.
Let us consider this disparity in a tale of two pubs: the Rose and Crown, and the Six Bells. These two pubs, both in the beautiful village of St Michael’s, on the edge of Verulamium Park, are less than 30 metres apart—it takes just one minute to walk from one to the other. They are a similar size and, until 2017, the difference in their rateable value was just over £8,000. Since the business rate review, despite being broadly the same size and practically next door to each other, the Rose and Crown has had a very welcome decrease in its rateable value, but that of the Six Bells has almost doubled. The gap has widened from £8,000 to a massive £43,250. The rateable value of the Six Bells is now three times as much as the Rose and Crown.
How on earth does the Minister expect that pub to compete, when the Government are hammering its ability to do so? They have got to get a grip. They have been dragging their heels on business rates reform for years and years. We need immediate rates relief to save some of these pubs, which are at the heart of our heritage, and we need wholesale reform of the entire system.
(4 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a massive honour to serve under your chairmanship, Mr Pritchard. I pay tribute to my hon. Friend the Member for Twickenham (Munira Wilson), who made an outstanding speech. I am grateful to her for leading the debate.
In the run-up to the debate, I contacted all the headteachers in my constituency to ask what they wanted me to tell the Minister about special educational needs funding and provision. The collective message that came back is one of desperation. In rural communities such as ours in Cumbria, small local schools simply do not have the financial resilience to cope with the ludicrous cuts they have to face from the Government, but it is especially tough when it comes to SEN funding.
My constituency has eight secondary schools, two of which have fewer than 200 pupils; 35 primary schools, 10 of which have fewer than 30 pupils; and three primary schools smaller even than that. They are all fantastic schools. They are small because they serve sparsely populated areas that are significant distances away from one another, and small schools are the most vulnerable. One of our larger secondaries, Kendal’s Queen Katherine School, spoke for all the heads when it revealed the real financial pressure in being expected to fund the first 11 hours of education, health and care plans out of the school’s own budget. Because of the cuts that the Government have made to overall per-pupil funding, they have no reserves to provide that support.
The head of Storth Primary School sent me a copy of the letter that he had written to the county. He described the school’s reputation for being a caring and nurturing setting and how that has resulted in the school attracting more children with special educational needs. That should be celebrated, commended and rewarded. Instead, the lack of funding has made it a burden. In recent years the school has had children needing full-time 2:1 or 1:1 support, but no funding has been provided. They have been under a deficit recovery plan for five years. The head speaks of the pressure and anxiety that the staff are under and the frustration and pain of trying to provide the best possible care and education for all pupils on a budget that simply will not allow it.
A similar picture was painted by the special educational needs co-ordinator at Cartmel Primary School. The local authority recommends the school as suitable for children with an EHCP and 4.3% of its children have one, significantly above the national average. Although the school expresses its pride in its reputation, it is in danger of buckling under the funding pressure that falls on its shoulders alongside the usual strains that fall on small school budgets.
Cumbria is as vast as it is beautiful. Often in rural communities such as ours there simply is not the alternative provision available in reachable distances. The head of Langdale Primary School described how for many pupils the available special schools would require travelling extreme distances, and therefore they are effectively unavailable. She wrote with some distress that, despite the incredible hard work and enthusiasm of her excellent team, its ethos—to be wholeheartedly centred on individual children—was coming under increasing strain.
Heads in south Cumbria say that they are challenged by the lack of staffing, and in my experience that is the case. Cuts in support staff have left teachers isolated in supporting children’s needs in the classroom. St Martin & St Mary Church of England Primary School in Windermere described the extremely high criteria set to qualify for an EHCP, so only children with the most severe needs receive any funding at all. On top of that, many schools have to contend with long waiting lists for SEN referrals, followed by delayed assessments. Children are often then refused support, despite their evident need, and that leaves schools in Cumbria also having to find the resources to support the significant number of children who are in limbo, waiting for an assessment. They have needs but do not have an EHCP, and indeed they may never get one.
Does my hon. Friend agree that it is completely unacceptable that families have to wait for far too long? He mentions the delays and assessment refusals, and how people have to wait a long time once assessments are granted. The statutory timescale is 20 weeks: four and a half months to wait to get an assessment. Even in my area of Hertfordshire County Council, one in five of the families do not get their assessment within the statutory period, so does he agree that the timescale should be shortened?
My hon. Friend makes an excellent point. The situation is the same in Cumbria. The point was made earlier by the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron), who is no longer in her place, regarding the lack of educational psychologists. The Government are not funding the support needed to get people to have their EHCP in the first place, and therefore schools are picking up the tab for assessments that have not been made. Nevertheless, the needs are absolutely still there.
The head of Dallam School in Milnthorpe expressed concern on another matter: the lack of resources available to access quality training and training providers to equip staff to support pupils’ mental health needs. Many of the other heads shared the concern that it damaged their schools’ ability to do the job that they are so desperate to do. The Government can talk a good game on mental health, but they are utterly failing to invest in preventive mental health with the staff and training necessary in schools to keep our children mentally well. Indeed, across the whole of Cumbria only 75p is spent per child per year on preventive mental health work, which is an outrage.
The Government are demoralising our teachers and letting down our children, because schools have to fund those first hours of provision for children with EHCPs. We therefore have a system that punishes schools that have a deserved reputation for being nurturing and for caring for their children’s needs. The Government are systematically penalising the schools that do the right thing, and that must change. I challenge the Minister today to ensure that all funding to support children with EHCPs is delivered centrally and does not come from the school’s own budget.
I am grateful to all the headteachers who contacted me—many more than I have had time to refer to here. They are all hard-working, enthusiastic and caring, and so are their staff. I am incredibly proud of all of them, but they are desperate because Government funding has put them in an impossible position. They are outstanding professionals who love their jobs, love their schools, and are driven to make a difference in the lives of the children of Cumbria, whom they serve. Imagine how unbearable it is for them to know that they cannot do what they know they should; cannot meet the needs that they know they should; cannot support the children in the way that they know they should. It is as heartbreaking as it is outrageous. Let us have no more excuses. The Government must act.