Parking Places (Variation of Charges) Bill

David Tredinnick Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Friday 3rd February 2017 Commons Chamber

[Jo Churchill]

Fine, but that takes me back to my earlier point, which is that that is already in the Bill. Are we not just adding a bit of jam to the cake?

[David Tredinnick (Bosworth) (Con)]

This has already been a passionate debate, and I congratulate my hon. Friend the Member for Torbay (Kevin Foster) on moving this probing amendment. I hope I can convince him and my other hon. Friends, many of whom are here today, that he does not need to press it.

No amendments were moved in Committee on Wednesday, so the Bill was reported to the House unamended. This new clause is a somewhat late entry in the race.

[Kevin Foster]

I was not a member of the Committee, so I could not move an amendment at that stage. I am therefore raising the issue on Report. I am just clarifying the situation for those who are not familiar with the procedure of the House.

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[David Tredinnick]

I am in error because I should clearly have asked my hon. Friend to join the Committee. He would have made a major contribution. One of the privileges of introducing a private Member’s Bill is that one has some influence over the membership of the Committee, and it is good to see my hon. Friend the Member for Castle Point (Rebecca Harris), who served on the Committee, sitting behind the Treasury Bench. The Committee examined the Bill with some care.

At the end of Second Reading, I said:

“I can say in all honesty that this modest two-clause Bill will improve the quality of life in every city and town in this country. I am…grateful for the Government’s support.”—[Official Report, 25 November 2016; Vol. 617, c. 1195.]

I am pleased to see the Under-Secretary of State for Communities and Local Government, my hon. Friend the hon. Member for Nuneaton (Mr Jones), who is my neighbour across the A5, Watling Street. No doubt he will have some remarks to make. As the Opposition spokesman, the hon. Member for Hammersmith (Andy Slaughter), will know, the Labour party supported the Bill in Committee, and I hope that we continue to have his support today.

This is a simple Bill. In fact, my hon. Friend the Member for Christchurch (Mr Chope), who is not known as a great friend of private Members’ legislation, whispered in my ear one day—being a very educated man and a classical scholar, perhaps—that this is a de minimis Bill, which I interpreted as meaning that there is very little in it. I have to tell you, Mr Speaker, and my hon. Friends that that was the point of this Bill. I was No. 5 on the list, and, having decided to run with this issue, I felt it had to be a simple Bill that appealed to all parts of the House. I did not want it to attract controversy and encourage colleagues to speak for a very long time and perhaps impede its progress.

You may recall, Mr Speaker, that, in an impromptu remark on Second Reading, I described this as a Santa Claus Bill, as we were in the run-up to Christmas. The first and perhaps most important provision of this Bill is that it allows councils to reduce parking charges without giving 21 days’ notice in their local newspaper or in the media. It is increasingly important that councils have flexibility, and I will explain why in a moment. The second part of the Bill is to force councils to consult on increasing charges, but it does not affect the charges themselves.

Let me just refer to Santa Claus again. I was somewhat stunned when I went into the shop in the House in the run-up to Christmas and found a tree decoration of Father Christmas holding the Santa Act 2016. Clearly, I had been able to inspire somebody in the House authorities to produce this Christmas decoration, but it was a little premature in that the decoration referred to an Act. I can assure you, Mr Speaker, that, as a slightly superstitious Member, I would not conceive of putting such a decoration on a tree until my Bill had been enacted.

[Mr Speaker]

Order. Whether, and to what extent, the hon. Gentleman indulges in retail therapy and what assessment he has made of the aesthetic merits of such attractions in the shop or no is a matter of consuming, almost intoxicating, interest to Members of the House, but I question whether it is altogether relevant to the particular subject matter that is supposed to be under discussion. Knowing him, I feel sure that he will have a response.

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[David Tredinnick]

I am flattered, Mr Speaker, that you should call me back to this point and ask me to explain myself. I also crave your indulgence, because in Committee I did, in error, produce the Christmas decoration and was rightly called to order, as we cannot call devices in aid when we make speeches. Wary of your determination to maintain procedures, I did not venture to do that today. The point I am trying to make is that this Bill, which was talked about as the Santa Claus Bill, is actually something that brings about a lot of goodwill and can be used, particularly in the run-up to Christmas, to help people do their shopping. Previously, the councils were unable to act quickly in response to situations. I will not labour that point any more.

My own local council in the main town of my constituency, Hinckley, just across the border from my hon. Friend the Under-Secretary of State, has many car parks, and, if this Bill achieves Third Reading today, it will certainly have an impact on the way that Hinckley and Bosworth Borough Council implements parking in the future.

Hinckley has been very successful as a town centre. Recently, it was a finalist in the Great British High Street competition. Cost-effective parking is clearly important for a town that can achieve that success.

[Kevin Foster]

My hon. Friend is right to talk about the success of towns. Does he agree that that is why it is so important that we are absolutely clear that this Bill is about varying the charges down, and not up, which would inhibit the success of those towns?

[David Tredinnick]

I am glad that my hon. Friend has intervened. He represents Torbay, which is a very beautiful seaside town. In fact, years ago I knew his Conservative predecessor who was also passionately concerned about the town. He was known as Spy 13 because of his other job, which was writing spy novels. I wish him well if he is tuning into this debate.

May I say to my hon. Friend that he is doing absolutely the right thing for his constituency of Torbay where parking is clearly critical? I can assure him that if he looks at clause 1 he will see that this Bill is about enabling councils to reduce charges. It means that, in the future, they will not have to go to the expense of publishing notices in local newspapers to reduce charges, and it will give them a degree of flexibility, which is really important.

[Jo Churchill]

Is that not, in a nutshell, why we do not need to press this new clause? We are talking about flexibility and the fact that in Stowmarket councils can charge £1 for two hours, and that in Bury St Edmunds councils reduce their fees on a Tuesday afternoon. This is about local solutions to local issues to stimulate the high street.

[David Tredinnick]

I am very grateful to my hon. Friend, who has been a great champion not only on the matter of parking charges, but on the cause of cancer. I am very pleased to serve with her as an officer on the all-party cancer group.

For clarity, I will make it absolutely clear what these two clauses do. Clause 1 provides government with a power to make regulations that simplify the procedure for lowering parking charges. At present, councils must give 21 days’ notification in the press, and place signage in the car parks—something to which I have not yet referred—if they want to lower their charges. The private sector, however, can take a business decision to lower them without going through that process. This clause would simplify the requirement and give councils the flexibility to reduce their charges, thereby putting local authorities on an even footing with the private sector. My hon. Friend the Member for Torbay has not picked up on that point, but he might like to do so now. I am sure that he would have mentioned it had he thought of it.

[Kevin Foster]

To be fair, I do accept the very valid points that my hon. Friend makes. Private sector operators can literally change the signs overnight if they wish to change the prices in a car park, whereas a council has to go through very lengthy procedures. Does he agree with me, though, that, at the end of the day councils are meant to be bodies that are charged with delivering the public good in an area? A company or a corporation is, to put it bluntly, looking to make as much money as it can from the asset it owns.

[David Tredinnick]

My hon. Friend helpfully leads me into an area that I wish to discuss in a moment, which is the impact of pricing on car parking charges generally. Let me just make this further point to him and to the House: it is equally important that councils should consider the effect of increased parking charges on the high street. To that end, the clause makes provision for a consultation requirement so that councils take on board the views of local businesses and residents when they are looking to increase parking charges on an existing traffic order. They must already consult when a traffic order is set up, but it is proportionate to expect them to consult if they are raising charges during the life of the traffic order. I say to my hon. Friend the Member for Torbay that he should not fear that this Bill—the de minimis Bill, to quote my hon. Friend the Member for Christchurch—will increase parking charges; it cannot do that.

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

rose—

[David Tredinnick]

I will resist my hon. Friend the Minister, who looks as though he could spring to the Dispatch Box, because I know that he will make a speech later on.

[Mr Jones]

indicated assent.

[David Tredinnick]

The Minister is nodding his head. I am sure he will reassure Members that I have not put anything in the Bill that allows local authorities to increase charges. I am simply saying that they need to ask people before they contemplate such a move, which they are already in a position to do.

[Wendy Morton]

The A5, which passes my hon. Friend’s seat of Bosworth, is also the link through to my constituency, Aldridge-Brownhills, and to the Minister’s constituency, Nuneaton, so the three of us have something in common other than speaking on the Bill. On the point about consultation, does my hon. Friend the Member for Bosworth (David Tredinnick) agree that, for a resident, one of the most frustrating things is when they turn up in a town centre only to find that the car parking charges have gone up and they had no idea? That is why consultation is really important, because it is particularly frustrating for someone when they open their purse and find they do not have the right coins to put in the machine. I welcome the fact that the Bill emphasises consulting residents and listening to their views.

[David Tredinnick]

My hon. Friend knows how fast our area is developing. A huge business park is being developed at the Motor Industry Research Association, which is in my constituency and abuts that of my hon. Friend the Minister. He and I have been working over the years to improve the A5, and some major improvements are in the offing. It is, of course, a national road, and an important relief road when there are problems on the M6 and other roads. We will see an improvement in traffic movements generally, and if we are to have that, we need an improvement in how we manage the people who are moving around. When the Road Traffic Regulation Act 1984 was passed, nobody thought there would be the fluctuations in the patterns of shopping that we see now. We are in a whole new landscape. The world has speeded up—it is completely different since the advent of mobile phones, such as iPhones, and all the electronic media.

Together, clauses 1 and 2 offer a real opportunity for councils to take the views of their local communities into account, while giving them flexibilities where decreases to parking charges can better support the goal of having thriving town centres.

It is important that I mention the support I have received from various organisations. I had some very helpful briefing materials from an organisation that is engaged in and very concerned about parking. My hon. Friends should be aware that the value of UK retail sales in 2015 was £339 billion. That will provide jobs for 3.3 million employees by 2017 in approximately 287,000 outlets. Increasingly, though, the high street has been exposed to intense competition, including the rise of online shopping and increasing use of out-of-town retailers because of the ease with which consumers can use those options.

The point about online shopping is incredibly important. We have seen all the stories in the press about its impact on major stores and how difficult it is for them to fight back. As my hon. Friends from the midlands know, we have there these huge warehouses and distribution centres, particularly where the M1 and the M6 join, and there is also the M69. The middle of England is the ideal place for such centres. In fact, the geographical middle of England is in my constituency, and the Roman centre of England, where the Fosse Way crosses Watling Street, is just outside. That is really important.

Hon. Friends may want to expand on the important point that parking charges are a barrier to regeneration.

[Craig Whittaker]

On my hon. Friend’s point about online retail, a 2011 report called “Re-Think! Parking on the High Street” highlighted the fact that small towns and villages were charging way above the UK average for parking, putting them at a disadvantage. Does he agree it is important that town and borough councils have the flexibility to react very quickly in light of the threat from online retail?

[David Tredinnick]

I do agree. I shall discuss the impact the Bill will have throughout the country later in my speech, along with some other figures. First, I shall indulge my hon. Friend by referring to the Portas review, which showed clearly that car parking charges were the biggest barrier to the regeneration of our town centres. That is perhaps no surprise when we consider the fact that the average hourly parking rate in London is £8.44, which is 18% more than the minimum wage. That is a staggering figure.

The “Re-Think! Parking on the High Street” report clearly states that footfall does affect town centre performance, with those towns that have higher footfall generating a higher level of spend. If nothing is done, the high street will remain under threat from out-of-town and online retail facilities, where lack of, or expensive, parking is not an issue.

[Kevin Foster]

My hon. Friend just referred to London having extremely expensive parking charges, but it obviously still has thriving business centres around places such as Oxford Street. Does he agree that London’s economy operates very differently from the rest of the country? Anything like those charges in any other town would have devastated the shopping centres and high street businesses.

[David Tredinnick]

I accept that London is a special case and, of course, my hon. Friends and I do not represent London, but I thought it was instructive to make the point that the charges here are so high.

To follow up on the remarks by my hon. Friend the Member for Calder Valley (Craig Whittaker), it is important to look at how the provisions will operate in practice. For greater accuracy, I asked the Commons Library to provide some figures on the scale of natural settlements—known as built-up areas to most of us—in the country. According to the 2011 census, we have in our country 56 cities, 696 towns with a population of 5,000 or more, and 1,590 villages with a population of between 1,000 and 5,000. Each one of those settlements could be affected by the Bill’s provisions. Pride is a dangerous word in parliamentary life—we can sometimes get too proud—but I am absolutely delighted to have been able to introduce a Bill that does not just affect a particular constituency matter but has a national impact. This Bill is going to have huge ramifications for business.

[Mr Marcus Jones]

indicated assent.

[David Tredinnick]

I am very pleased to see my hon. Friend the Minister nodding.

[Wendy Morton]

On the broad point about business and regeneration—perhaps my hon. Friend will touch on this in his speech—by giving councils the flexibility to reduce their car parking charges when they deem it necessary for a specific event or whatever, the Bill can play a vital part in regeneration. Although councils would not get the income from car parking charges, not only would they not have to cover the costs associated with advertising the reduction in charges, but they could get extra income from increasing the vibrancy of the high street, because the increased non-domestic rate collections would go back into the council.

[David Tredinnick]

My hon. Friend, ever eloquent, has struck a rich seam there. I am not going to mine it, but no doubt she can come back to that point.

For greater clarity, Mr Speaker, I should say that the statistics I just gave were for the cities, towns and villages in England.

[Mr Speaker]

Ah!

[David Tredinnick]

The Bill actually affects Wales, but it will not be implemented there and I do not have the statistics for Wales.

Something that has not been mentioned in any of the proceedings so far is what I call unusual events. I shall cite two exceptional events and suggest that the Bill might be useful in those circumstances. I have always been really happy to represent the constituency of Bosworth, which is where English history changed on 22 August 1485, when the last of the Yorkist Plantagenet line—

[The Lord Commissioner of Her Majesty's Treasury (David Evennett)]

King Richard.

[David Tredinnick]

Indeed; King Richard died in horrid circumstances, leaving Henry Tudor to be crowned Henry VII. In the run-up to the 2015 election, Richard’s mortal remains were discovered in a car park in Leicester. [Hon. Members: “Ah!”] Interestingly, the exact position where he was found—my hon. Friends might like to hear this—was under a parking bay with an “R” on it, which one might say stood for “Reserved”, but it actually turned out to stand for “Rex”, Latin for king—Richard Rex, King of England.

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[Kevin Foster]

Does my hon. Friend agree that if special events are about communities coming together and bringing in a surge of trade and that if local authorities view them as an opportunity, bluntly, to turn their car parks into a bit of a cash cow and rip people off, we could see an effect similar to what happened with the solar eclipse in 1999 in Cornwall: where places increased prices, people just did not come?

[David Tredinnick]

I have a good recollection of those events, and the Bill is not about raising charges; it is about lowering charges and raising consultation levels. That is the soundbite; that is what the Bill is all about. That is why I ask my hon. Friend to withdraw his new clause.

My hon. Friend talks about private car park owners who wanted to ratchet up charges in Cornwall. My hon. Friend the Member for South East Cornwall (Mrs Murray), who is not here today, has had her own issues with car parking. My hon. Friend the Member for Stevenage (Stephen McPartland), who also is not here, has had such issues and held a successful debate on them in Westminster Hall the other day. There was so much in the newspapers and so much media hype about what would happen and the pandemonium that would be caused by the huge number of people who would go to Cornwall to watch the eclipse, which totally blocked out the light of the sun for about a minute, that nobody actually turned up. As my hon. Friend the Member for Torbay will recall, the numbers were way down and quite the reverse of what was expected happened. Councils might therefore make provision to reduce charges, but then suddenly realise that there is no need to do so at all, rather than waiting for 21 days and losing revenue. In that situation, the opposite applied.

I shall conclude my remarks fairly soon, but I want first to refer to what the Federation of Small Businesses told me yesterday. Apart from generously congratulating me on negotiating the narrows of the rivers to get to this point with a private Member’s Bill, it says that it is wholly supportive of the measures in the Bill, that it will be an additional tool for the Government to support local small businesses and ensure that they and their customers can park, and that is why it is very welcome. The FSB’s research shows that seven in 10 small firms think that parking is a priority for the future of independent shops. It says that independent retailers in town centres are the engines that help to make the UK’s local communities what they are. In its report, “Going the extra mile”, it found that small businesses are overwhelmingly reliant on roads, with nine in 10 firms—about 89%—placing a high value on the network. With so many small businesses relying on the road network, it argues for greater investment. Well, that is predictable. Its final point is that consultation with businesses is required before local authorities increase the cost of parking. That is exactly what clause 2 will provide.

[Jo Churchill]

Does my hon. Friend agree that this is particularly pertinent in rural communities and small market towns, where a lot of the trade has to come in from villages and so on, and that we need to aim for accessibility and the ability to control prices to facilitate businesses, which we want to survive because there is nothing sadder than a dying high street?

[David Tredinnick]

One is always looking for help in this place, and my hon. Friend almost makes my closing remarks for me. We are talking about a simple three-clause Bill that has been reported by a Committee without amendment, that seeks to allow councils to reduce parking charges without consultation but that insists on consultation if they want to increase charges.

Before I sit down, I should like to tell my hon. Friend the Member for Torbay that he has proposed a helpful new clause. He clearly feels passionately about the issue, as it impacts his town, and he is right to come to the Chamber and get us to scrutinise it in some detail, but I hope that I have been able to give him the reassurance that he requires. I look to my hon. Friend the Minister to flesh out any points that I have not made and give the Government’s approval. I thank my hon. Friend the Member for Torbay and will resume my seat.

[Mr Marcus Jones]

I welcome the opportunity to comment on the new clause and the important points made by my hon. Friend the Member for Torbay (Kevin Foster). My hon. Friend the Member for Bosworth (David Tredinnick), who is my constituency neighbour, has already set out in significant detail his views on the new clause. Although the intentions expressed by my hon. Friend the Member for Torbay are good, as they generally are, and in the best interests of constituents, my hon. Friend the Member for Bosworth was right to speak against the new clause. I shall set out the Government’s view on why we do not think that agreeing to it is a good idea.

The Bill will create the power to make regulations to simplify the procedures local authorities must follow if they want to lower their parking charges. It will introduce a consultation requirement if local authorities want to increase parking charges. Parking provision plays an important role in allowing people to access high streets and town centres. Town centres continue to play an essential role in the lives of communities, and parking charges can be an important factor when people choose which ones to visit. As some out-of-town shopping malls provide free parking, councils need to think carefully about the level and range of parking available. Parking charges will no doubt play an important role in people’s choices. The Government are committed to promoting town centres and high streets as thriving places at the heart of communities.

I strongly believe that it is right and proper for local authorities to consult their local communities and town centre businesses when proposing to increase charges. I stress that this is not about the Government trying to dictate to local authorities how to conduct their parking policies. We are asking councils, in a localist way, to take into account the views of local communities before increasing charges. I have a good example from my constituency. The local district council has not listened to the views of local people and has increased car parking charges. As a result, its car parking income has dropped by £350,000. That shows why it is important to consult local people and listen carefully to what they say because the views of local people and business owners are quite often the views of the very people who use and depend on those car parks for their livelihoods.

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[David Tredinnick]

I beg to move, That the Bill be now read a Third time.

It is a special moment for me to bring a Bill to Third Reading in the House of Commons. I had three criteria for my private Member’s Bill. First, I wanted it to be sufficiently uncontroversial to pass through all stages in the two Houses of Parliament. I have sat through seven Parliaments in this House and seen many Bills bite the dust on a Friday, and I did not want to join that club. That is why I kept the Bill to two clauses.

Secondly, I wanted to have a national impact. In selecting a Bill, I did not want something that was parochial; I wanted something that would make a difference across the country. Thirdly, I wanted something that would improve the lives of our constituents. To use the old-fashioned language, our duty is to improve the condition of the people—that is what they used to say in the 19th century. The modern translation is that our job is to make people’s lives better—that is why we are sent here.

If I am called a second time, I might offer a few words of thanks, but at this point I will just say how delighted I am that colleagues have allowed this Bill to reach its Third Reading.

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[David Tredinnick]

Madam Deputy Speaker, I welcome you to your place. I thank all colleagues who have contributed to the debate today, and I wish the Bill well on its travels to the House of Lords. I point out to their noble lordships and ladyships that the Bill passed through the Commons unamended; there were no amendments in Committee, but there were discussions and agreement with the Opposition.

I say to the hon. Member for West Ham (Lyn Brown), who has just expressed concerns, that there were opportunities to load the Bill with a lot more material. However, it was kept very narrow because, from my long experience of Fridays in the House, I knew that it would not proceed unless that was the case. To continue with an earlier play on words, I hope that the noble Lords will get their ducks in a row, but I hope that they will not add to them. We have quite enough here.

It would be instructive for councils up and down the land to study this debate. There have been some wonderful contributions; I will pick up two or three points that have come up. My hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) spoke with experience of starting and expanding a small business. His point about the power of offering one hour’s free parking, then charging an additional 60p per hour, was very persuasive, and many councils up and down the land should take note.

My hon. Friends the Members for Faversham and Mid Kent (Helen Whately), for Aldridge-Brownhills (Wendy Morton) and for Bury St Edmunds (Jo Churchill) mentioned festivals, and hon. Members focused on the importance of having special events that draw people into towns. We need flexibility in parking charges for those events.

I thank the members of the Public Bill Committee for their help, along with the other Members I have already thanked today. I thank the two Ministers who have spoken on the Bill—my hon. Friend the Minister for Housing and Planning, who spoke in Committee, and my neighbour the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Nuneaton (Mr Jones), who has spoken today. As I have said, I have also had the support of the Opposition. I thank my hon. Friend the Under-Secretary for allowing me access to some of his officials—I know it is not normal to thank officials, but I thank Phillip Dunkley and Thomas Adams for their assistance in ensuring that I was properly briefed.

It is with great happiness and surprise that I find myself having taken through the House a private Member’s Bill that can affect every town, city and large village in the country. I hope that it will proceed through the House of Lords.

Question put and agreed to.

Bill accordingly read the Third time and passed.

Budget Leak Inquiry

David Tredinnick Excerpts

Thursday 22nd March 2012 Commons Chamber

[Mr Gauke]

I am afraid that the hon. Gentleman’s analysis is wrong, because the rich will of course be paying five times the amount as a consequence of the Budget measures. I am afraid that his analysis is no better than his jokes.

[David Tredinnick (Bosworth) (Con)]

Will my hon. Friend accept that he made a mistake in saying that part of the Budget was leaked by the Labour Government in 2005? In fact, the whole Budget was leaked to the Evening Standard.

[Mr Gauke]

I suspect that my hon. Friend is right and apologise to the House for getting that wrong.

Eurozone

David Tredinnick Excerpts

Monday 10th October 2011 Commons Chamber

[Mr Speaker]

Order. A great number of Members are still seeking to catch my eye, and I am keen to accommodate them, but progress so far has been at best leisurely. What is required is brevity, a legendary example of which will now be provided by Mr David Tredinnick.

[David Tredinnick (Bosworth) (Con)]

Is not the fundamental problem with the Greeks that even if a package is agreed, there is no way the Government can implement it, because the tax authorities have themselves said that they are not going to do so? A depreciated or, indeed, a new currency for Greece would give my Hinckley constituents and others some chance of buying cheaper Greek holidays and stimulating the economy.

[Mr Osborne]

As I have said, I was always one of those who said that Britain should not join the euro. I worked alongside my right hon. Friend for Richmond (Yorks) (Mr Hague) when he was Leader of the Opposition, and helped him to write many of the speeches that set out that case. Although the shadow Chancellor keeps talking about the important role that the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) played in all that, I do not recall lots of passionate speeches about why Britain should not join the euro; but no doubt he was doing his work in private.

Let me say this about the Greek situation. If Greece were to leave the euro, there would be a balance of payments crisis. Greece does not have a primary balance, so there would automatically be a need for a huge international programme. The idea that leaving the euro would get it out of needing international assistance, or out of the clutches of the International Monetary Fund, is just fanciful, because it would need such a programme. There would be a balance of payments crisis and there would probably be runaway inflation as well, which would wipe out any competitiveness gains.

I think that we are depicting a nirvana of Greek exit from the euro which does not exist. Greece is in a very difficult position, and it needs to work through its problems.

Oral Answers to Questions

David Tredinnick Excerpts

Tuesday 8th February 2011 Commons Chamber

[Jane Ellison (Battersea) (Con)]

3. What progress he has made in reforming the tripartite system of financial regulation.

[David Tredinnick (Bosworth) (Con)]

10. What progress he has made in reforming the tripartite system of financial regulation.

[The Chancellor of the Exchequer (Mr George Osborne)]

The tripartite system of financial regulation put in place by the new Chancellor and his advisers in 1997 failed spectacularly and cost the British people billions of pounds. That is why we are replacing the tripartite system with a much tougher and more coherent regime led by the Bank of England. We aim to have that system in place by the end of 2012. I repeat what I just said: we have today increased the rate of the Government’s permanent bank levy for this year in order to raise £2.5 billion net. This will mean that the banks pay more in tax in each and every year of this Government than they did in the last year of the previous Government. Through this new bank tax being made permanent and with the revenue announcement today, the banks will be making a fairer contribution to our economic recovery.

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[Mr Osborne]

My hon. Friend is right. It was an interesting admission from the Leader of the Opposition that things started to go badly wrong when he was an adviser at the Treasury. Maybe the man he did the photocopying for will make a similar admission. The creation of a consumer protection and markets agency will provide a stronger consumer voice and a consumer champion. It will be a world-class regulator. We are assembling the right team to run that agency, including many talented people who were at the Financial Services Authority. I am delighted that Martin Wheatley has been appointed as the chief executive designate. He has an outstanding record as a regulator around the world and his arrival bodes well for the future of the new agency.

[David Tredinnick]

Was the three-way split in financial regulation the worst financial decision taken by the previous Government, or has something else caught my right hon. Friend’s eye?

[Mr George Osborne]

There is the selling off of the gold at a record low and the pensions tax that destroyed our pensions system, but I have to say that, in terms of sheer cost to the British taxpayer, the system of regulation designed by the shadow Chancellor was pretty catastrophic.

Economic Affairs and Work and Pensions

David Tredinnick Excerpts

Tuesday 8th June 2010 Commons Chamber

[The Chancellor of the Exchequer (Mr George Osborne)]

I enjoyed what sounded very much to me like a valedictory speech by the shadow Chancellor, going through all the decisions he took and explaining to the House why they were all right. Of course, I paid tribute to him in Treasury questions for the work he did during that period, which was clearly a very stressful one, but it was pretty extraordinary that he did not once accept that he had made a single mistake during those three years—that for all his good manners, he did not once apologise for the fact that he has bequeathed to the incoming Government the worst inheritance that any British Government have faced since the second world war.

[David Tredinnick (Bosworth) (Con)]

Will my right hon. Friend give way?

[Mr Osborne]

If my hon. Friend will allow me, I would like to make some progress first.

I guess that the shadow Chancellor is entitled not to apologise. I would only say this to the people who are standing for the leadership of the Labour party. As far as I can tell from their contest at the moment, they seem to think that they just did not speak enough about immigration and Europe in the campaign. Let me tell him: I have done that campaign and I did not get the medal. Perhaps the leadership contenders will at some point turn their attention to the very serious economic problems that this country faces, and tell us what they would do—what they would cut. The amendment that we are being asked to vote for tonight—tabled by the Leader of the Opposition and the shadow Chancellor—states that we need

“a clear plan to bring down the deficit”.

I agree with that; I would happily vote with the shadow Chancellor if he could perhaps tell me exactly what his clear plan to bring down the deficit is because, as far as I could tell, he opposed every single decision that we have taken to try to reduce the deficit.

[Mr Osborne]

It was the shadow Chancellor who said—and we were reminded of this—that the cuts would be deeper than anything that Margaret Thatcher had undertaken, and that was the proposal from the Labour party when it was in government. It is unfortunately an economic fact that the budget deficit that this country faces is higher than at any point in our peacetime history, and whoever forms the Government of this country has to deal with that budget deficit and cannot ignore it. Indeed, there is a rather striking fact about the Labour Government’s proposals, which they left in their Budget book—the shadow Chancellor has a copy in front of him. There are £50 billion of cuts built into the Labour Budget produced in March, and not one single pound of those cuts has yet been identified by the Labour party.

[David Tredinnick]

Many congratulations to my right hon. Friend on taking up his position. Was not one of the greatest weaknesses of the last Government, which the former Chancellor avoided mentioning, the fact that the number of people in non-taxpaying employment rocketed up and the number of those working in productive jobs that produce taxes drifted down?

[Mr Osborne]

My hon. Friend is right. There was a profound imbalance in the economy. We heard the shadow Chancellor saying, “What are the Government going to do about the unbalanced economy?” He seems to forget that he has been running the economy for the last three years. His Government have actually been in charge for the last 13 years. If there is an unbalanced economy, the people responsible are sitting on the Opposition Benches.