The Economy

Eddie Hughes Excerpts

Thursday 24th October 2019 Commons Chamber

[Eddie Hughes (Walsall North) (Con)]

I thank the Chancellor for responding so positively to a joint campaign by me and Andy Street, the Mayor of the West Midlands, for funding to open two additional train stations in Walsall, including one in Willenhall in my constituency. I thank the Chancellor for that money.

[Sajid Javid]

That is exactly what I mean when I talk about levelling up the economy and ensuring that all parts of our great nation are benefiting from the infra- structure revolution.

Oral Answers to Questions

Eddie Hughes Excerpts

Tuesday 2nd July 2019 Commons Chamber

[Elizabeth Truss]

The reality is that that we have got a record number of people into work. Universal credit has been shown to help more families get into work, and it has made work pay. We have also made adjustments to universal credit to shorten the wait time, and we have put in an extra £630 a week for families.

[Eddie Hughes (Walsall North) (Con)]

It has been a while since I asked the Chancellor about the blockchain and distributed ledger technology, so I was hoping that he could present an update on how the Treasury is embracing this new technology.

[John Glen]

I thank my hon. Friend for his question. The UK’s digital economy is thriving and is growing 10 times as fast as the wider economy. We are pursuing a range of measures to reinforce that leading position, and that involves implementing a 10-year action plan to unlock over £20 billion in finance growth in innovative firms and a further £7 billion for research and development since 2016, with internationally competitive research and development tax reliefs to support investment.

Oral Answers to Questions

Eddie Hughes Excerpts

Tuesday 21st May 2019 Commons Chamber

[Mr Hammond]

As I have already said, both the Treasury and the Health Department wish to address this problem. We have to find a mechanism that does it in a way that is fair and appropriate. The right way to do it is through increasing flexibilities within the NHS and, potentially, other public sector schemes. My right hon. Friend the Health Secretary will make an announcement as soon as possible.

[Eddie Hughes (Walsall North) (Con)]

Yesterday I met representatives of Alliance Health Group who were making representations because a number of very experienced surgeons are leaving the NHS due to the problems with the pension. I just wondered how representations would have been made to the Treasury on behalf of consultant groups.

[Mr Hammond]

The British Medical Association has been vocal, I think is probably the right word, in making the case around the disincentive effect of annual allowance charges, in particular, but also lifetime allowance charges. The Health Secretary and I have been discussing this for some time, and I think we are close to reaching a conclusion.

National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill (Second sitting)

Eddie Hughes Excerpts

Tuesday 14th May 2019 Public Bill Committees

[Robert Jenrick]

If my hon. Friend is referring to the benefits system, that is completely unrelated. Contractual benefits are liable to a tax liability in addition to that—perhaps I can provide more information on that in a moment. They will be part of taxable income taken in the round, which once generated is then subject to income tax and the employer’s national insurance contribution in the final termination payment.

The effect of the change will mean that a 13.8% class 1A secondary employer’s NICs charge will be applied to income derived from a termination award that is already subject to income tax. In addition, clause 1 also includes other modifications to existing legislation that relates to employer class 1A NICs, to ensure that the new liability for termination awards works as intended. Clause 2 makes corresponding changes for Northern Ireland, ensuring that the provisions apply across the United Kingdom.

Before I address new clauses 1 and 4, let me say a few words about what clauses 1 and 2 do not do. First, they do not introduce a NICs liability on the employee—I hope we made that clear during questions this morning. There remains an unlimited employee national insurance charge exemption on termination awards. Although there is a principled case for greater simplification and alignment by applying employee NICs to that income, the Government have listened carefully to representations made during the consultation, and we believe that our approach strikes the right balance between delivering greater simplification for employers, and fairness to individuals who are undoubtedly in a difficult period of their lives: losing their jobs and having to make the necessary adjustments.

Secondly, the clauses do not reduce or seek new powers to change the existing £30,000 threshold, below which termination awards are entirely tax-free and NICs-free. As we discussed this morning, that threshold remains generous compared with those of many other countries, including the United States and Germany, which tax income linked to a termination from the very first pound. It will ensure that about 80% of awards are unaffected by clauses 1 and 2, and that awards made as statutory redundancy pay are untouched. We have no plans to lower the threshold in future. Any future Government who wished to do so would need parliamentary approval.

[Eddie Hughes (Walsall North) (Con)]

The Minister has not so far mentioned the money that the measure will raise. My understanding is that that has already been taken into account and that if we were not to proceed, the Government would need to find that money from another source. Is that correct?

[Robert Jenrick]

My hon. Friend is absolutely right. I have said on several occasions that the measure will raise about £200 million a year. Because it was a Budget measure, it has been included in the Government’s forecasts and certified by the Office for Budget Responsibility. If any hon. Member wished to take issue with the policy, they would need to find an alternative way to raise £200 million a year, if they wanted to continue to support public services in the way that we have set out in our spending plans.

Finally, the clauses do not introduce any legislation that goes beyond mirroring the effect of the income tax rules with respect to the scope of the change. Instead, by virtue of the clause, the rules that determine liability to income tax will apply directly in calculating the amount of employer class 1A NICs payable on termination awards above £30,000. Therefore, clauses 1 and 2 simplify the tax system and reduce the incentive for manipulating payments to achieve tax advantage.

[Eddie Hughes]

I am sorry to dwell on the point, but it was raised previously. My recollection is that it would require an affirmative statutory instrument to change the £30,000 figure in future. Is that correct? The Opposition have clearly raised that concern.

[Robert Jenrick]

That is absolutely right. As I have just said, we have no intention of changing the threshold. If a future Government wished to do so, that would need to be done through an affirmative statutory instrument and the House would have the opportunity to debate it and take issue with it in the usual way, if it wanted to. We have no plans to do so; my hon. Friend is right to seek that clarification.

--- Later in debate ---

[Peter Dowd]

My hon. Friend makes an important point. The reality is that the only termination under the Tories is termination of the social and economic cohesion of this country. That is the termination that I am deeply worried about.

Another important point was raised. We always get the same old chestnut from the Conservatives. They say that their proposal will raise £200 million or £300 million —though they often do not raise what they say they will, because they are so incompetent at doing it—and that if we do not agree with it, we will have to find the money elsewhere. However, we have set out where we would find that money. It would not be from people getting redundancy payments; it would be people at the other end of the spectrum, who have significant amounts of money, or employers, who would have to cough up. We will get it from the people who are in the best position, psychologically and financially, to pay it.

[Eddie Hughes]

I think the hon. Gentleman was casting aspersions on this Government’s ability to collect taxes. My vague recollection is that our record is better than the Labour party’s. If that is so, what does he have to say about that?

Oral Answers to Questions

Eddie Hughes Excerpts

Tuesday 5th March 2019 Commons Chamber

[Trudy Harrison (Copeland) (Con)]

3. What fiscal steps he is taking to establish the UK as a world leader in new technologies.

[Eddie Hughes (Walsall North) (Con)]

12. What fiscal steps he is taking to establish the UK as a world leader in new technologies.

[Vicky Ford (Chelmsford) (Con)]

15. What fiscal steps he is taking to establish the UK as a world leader in new technologies.

--- Later in debate ---

[Mr Hammond]

The Government do indeed recognise the potential for the UK to become a leader in the development of the next generation of nuclear technologies, provided that there is demonstrable value for money for consumers and taxpayers. To that end, my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy is considering an industrial strategy challenge fund proposal for small modular reactors and whether it would provide value for money.

[Eddie Hughes]

I do not know whether you are aware, Mr Speaker, that up to 50 different metals may be used in a smartphone. What fiscal support could be given to the excellent work done by Birmingham University in addressing the rareness of those materials, as well as the recycling and reuse of batteries?

[Mr Hammond]

My hon. Friend is right. Rare earths and other critical elements are at the centre of the electronics industry, which now defines our modern life. Some of the materials are very scarce, and recycling the large amounts that are already in use in batteries is crucial. In the 2017 spring Budget I announced the £246 million Faraday battery challenge, to be funded from the national productivity investment fund. Supported by the fund, the University of Birmingham, together with industry partners, is leading the way in developing new methods of recycling lithium batteries, which power so many of the objects that we use in our everyday lives.

Newcastle United Football Club: Regulation

Eddie Hughes Excerpts

Thursday 24th January 2019 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Madam Deputy Speaker, I must start by declaring an interest: I am a Newcastle United fan. [Hon. Members: “Hear, hear!”] Thank you. When I raised this with the House authorities, I was told I did not need to declare it as I “derived no real benefit” from it. I would dispute that. Supporting Newcastle United has brought me great joy, and a sense of belonging, shared purpose and community, as well as the opportunity to watch the beautiful game at its beautiful best in that cathedral to football, St James’ Park. But it has also brought me deep despair and disappointment, particularly in the last few years. I also wanted to present myself in my Newcastle team shirt today, but I was told in no uncertain terms that that was not allowed. Instead, I have settled for a Newcastle Libraries T-shirt with our city on it.

Newcastle United is at the heart of the city. Unlike Liverpool or London, we have only one professional football team and we are united in our support. And what support it is! Hon. Members may recall that, back when we had regional development authorities and investment in our regions, the One NorthEast tourism slogan was “Passionate people, passionate places”. Well, the passion of Newcastle is football. We have consistently high attendances—some of the highest in the league until recent times—and the economy of the city is influenced by the success on the pitch. If we are winning, we are singing—and spending. If we are losing, the gloom hovers over all our heads like individual storm clouds. It is part of our culture.

Anyone who moves to Newcastle—and we certainly have an unparalleled quality of life, so I recommend that everyone does so—will find it an open, welcoming and warm city, but whereas elsewhere people might get away with talking about the weather, in Newcastle they will need to know how the Toon are doing. It is part of our mental wellbeing—90 minutes spent at the Gallowgate end would be enough to convince anyone of that—and this is true not only in Newcastle, as my hon. Friends—and fellow fans—the Members for Gateshead (Ian Mearns) and for North Tyneside (Mary Glindon) can attest. They would have liked to be here today.

Football is the lifeblood of many cities, particularly in the north, and that remains the case despite changes that have seen money, not fans, become the driving force of football thanks to the creation of the Premier League and billions of pounds from Sky Sports. While I will speak mainly about Newcastle United football club, its finances and its owner, much of what I say applies to football as a whole.

Since 2008, Newcastle United has been owned by Mike Ashley, who also owns Sports Direct, House of Fraser and several other retail businesses. In July last year, I presented a petition reflecting the concerns of fans groups, such as If Rafa Goes We Go and the Magpie Group, and that caught the attention of Mr Ashley, something which I had been unable to do as the MP for St James’ Park, despite writing to him to ask for a meeting. It is testimony to the power of Parliament that, after announcing this debate, I was able to meet Mr Ashley on Saturday. I committed to Mr Ashley that I would make no personal attacks on him—I will not avail myself of parliamentary privilege to do so—and I say to all the fans that personal attacks on Mr Ashley or his employees are wrong and hurt our cause.

I shared with Mr Ashley my concerns about financial transparency and funding, and he was passionate in his defence of his investments and in saying that he has not taken any money out of the club other than, he said, short-term funding on a temporary basis. That, he said, was in contrast with the period prior to his ownership. He also emphasised that he had made it clear the club must stand on its own two feet and can spend only the money it generates. Well, to put it diplomatically, we disagreed. The meeting was open, frank and robust, with strong views on both sides, and I hope to continue the dialogue. Indeed, this debate is part of that dialogue. It has to be, because I have still to receive a reply to my letter of last year in which I raised several critical issues that I have also raised in correspondence with the Secretary of State for Digital, Culture, Media and Sport and the previous Sports Minister, the hon. Member for Chatham and Aylesford (Tracey Crouch).

Mr Ashley said that the club can spend only what it is generates—a form of austerity economics of which those on the Tory Benches could be proud—but Newcastle United needs investment to reach its potential. Earnings have been hit by uncertainty and the bad feeling between fans and the owner, but even if we accept what he says, how are we to know what income the club generates? As the Secretary of State said in his letter to me, clubs are treated as any other private business and must submit accounts to Companies House. I am not an accountant, but I have an MA in business administration, studied corporate finance and worked in business for 20 years. However, I have looked at the NUFC accounts and cannot work out what is going on.

Faith in Newcastle’s accounts has not been helped by comments made by Mr Ashley at the Housing, Communities and Local Government Committee last December, when he said:

“People cheat. That is what businesses do.”

He also said:

“Accountants are able—this is their job, by the way—to move the numbers about pretty much at will.”

That seems to be what is happening at Newcastle. Mr Ashley’s ownership of the club passes through four separate companies: Mash Holdings, St James Holdings, Newcastle United and Newcastle United Football Holdings. In addition, dozens of other companies are associated with the club and Mike Ashley, and managing director Lee Charnley has more than 30 other directorships. Newcastle United’s accounts do not include a cash flow statement, although having one is a requirement of reputable accounting. All that seems designed to make it harder to follow the money and see what income is being generated.

I hope that the Minister will agree that that is unacceptable and that she will commit to ensuring that the following income streams can be identified. First, TV payments. These should be more than £123 million, but they are not reported separately. Secondly, merchandise. Mr Ashley turned the club shop into a Sports Direct shop, but the revenues from Sports Direct do not go to the club. Thirdly, player sales. The way in which the purchase and sale of players is booked and amortised is in itself arcane. Newcastle United is consistently reported as having one of the lowest spends on players in the English premiership, and many estimates indicate the club has actually made a profit on player sales overall during Mr Ashley’s ownership. Does the Minister agree that we should be able to calculate that sum?

Fourthly, advertising. Sports Direct hoardings are all over St James’ Park and, yet again, we do not see the revenue in the accounts. Finally, land sales. Next to St James’ Park is an area called Strawberry Place, which Mr Ashley allegedly purchased from the club for less than it was worth—we do not know, because the price is not visible. What we do know is that Strawberry Place is being developed for student accommodation. Selling the land stopped any further expansion of the stadium, and fans believe that the profit from the sale of that land will not benefit the club, but how are we to know? There is also an issue about land and property apparently sold to companies called Project J Newco No.39 and Project J Newco No.40, which appear to be connected to Mr Ashley, but there is no evidence of any payment.

[Eddie Hughes (Walsall North) (Con)]

Has the hon. Lady seen Deloitte’s “Football Money League” report? It seems to identify some of those incomes, such as £27 million for match day, £143 million for broadcasting and £32 million for commercial, figures that we can only dream of for Walsall football club.

[Chi Onwurah]

I appreciate the hon. Gentleman’s interest in Newcastle United, and I have seen the figures in Deloitte’s report, which make Newcastle United the 19th richest club in the world. My concern is that those figures should be reported visibly for all clubs, particularly in the Premier League, where there is so much money going around.

Mr Ashley appears to be able to move assets between his privately owned companies at will, despite the club being a historic cultural icon and the other companies being of somewhat less reputable status and longevity.

We do not know what income the club is generating and whether that money is being used on the club. What is certain is that this transfer window, like the last one, is closing without money being spent on players or training facilities. Mr Ashley’s principal investment in the club has been in the form of loans, rather than equity—presumably to protect his financial exposure. Those loans are interest free, which is good, but as loans they can be called in if needed, so the sustainability of Newcastle United depends on his other businesses being successful.

That leads me to Mr Ashley’s business practices more generally. The BEIS Committee likened them to a Victorian workhouse, with employees being paid below the minimum wage. A “Dispatches” investigation found employees were publicly shamed for talking, spending too long in the toilet or falling ill, and lived in fear of being fired. Now Mr Ashley says that he is going to save the high street. Forgive me for being somewhat cynical, having seen how he has saved Newcastle United.

Newcastle United is an asset to our city, a cultural giant in our lives. I explicitly pay tribute to the fantastic Newcastle United Foundation, which uses the power and passion of football to do great work across the north-east and is, in part, funded by the club, although again that funding is not transparent. The Premier League also uses some of its vast wealth for the benefit of local communities, at least what can be spared from expenditure such as its £5 million farewell gift to departing executive chairman Richard Scudamore.

Neither Newcastle United nor the Premier League consider themselves to be accountable to fans. As many constituents have made clear to me, fans feel powerless before the slow destruction of what we believe in. Newcastle United is the beating heart of our city, and we should be able to protect it.

That goes to the heart of the matter. Why is it that a person can buy a stately home in the wilds of Wiltshire and not be able to change even a window frame, but they can buy Newcastle United, which is in the heart of Newcastle, and strip it of its assets without so much as an eyebrow being raised? Why is football left largely to regulate itself when other businesses, from pubs to social media companies, must meet social requirements?

I know that the Minister recognises the importance of football clubs and the custodian role of owners, because she said so during the recent debate on Coventry City. Will she now put that recognition into action? Will she launch an inquiry into the reporting requirements of premiership clubs, using Newcastle United as a test case? Will she ensure that that inquiry answers the financial questions that I have raised? Will she ensure that supporters have a voice on football club boards, as Labour has called for? Will she make reputable custodianship a requirement of club ownership? The fit and proper person test is clearly not fit for purpose.

It is with great sadness that I say that I have come to the conclusion that football is broken. Its governance has not kept pace with its income, and money has won over sport. We cannot turn back the clock, but we can put in place effective regulation so that financial transparency enables the beautiful game’s true splendour to shine forth once more.

Finance (No. 3) Bill

Eddie Hughes Excerpts

Committee: 2nd sitting: House of Commons
Tuesday 20th November 2018 Commons Chamber

[Mel Stride]

As always, my hon. Friend has made a critical and important point. I took him to be alluding, at least, to the issue of technology businesses—typically, social media businesses, search engines and certain online marketplaces—which, while making substantial profits in our country as a consequence of the interaction of UK users with the digital platforms that they host, are not paying a commensurate level of tax. That led the Chancellor, in the recent Budget, to announce our move towards a digital services tax, whereby we will not be addressing a question of avoidance—it is important to make that point—but will be bringing the international tax regime into the 21st century, so that we can tax profits not just on the basis of where the bricks and mortar may be, where the staff may be, where the intellectual property may reside or where the commercial risks and decisions are being taken, but on the basis of where this particular type of value generation is occurring.

While we have said that we will seek to move forward in a multilateral manner, because we recognise the dangers of double taxation in the event that we move unilaterally, we have made it very clear that we will introduce this measure ourselves as a first mover, or one of the first movers, of the leading countries in the world. We think that it is only right, and we believe that the public feel that it is only right, for these very large businesses to pay an appropriate level of tax.

[Eddie Hughes (Walsall North) (Con)]

The Minister says that members of the public would expect that. Can he give some examples of intangible assets, so that people watching the debate at home in Willenhall and Bloxwich can be better informed?

[Mel Stride]

That is a very good question. In the case of the digital services tax, we are no so much talking about intangible assets, although elements of the Bill—indeed, clauses in this group—relate to ensuring that profits are not artificially shifted as a result of money being moved around in respect of such assets. Here we are talking more about digital platforms, and a particular method of value creation that results from the interaction of UK users with those platforms. However, in terms of intangible assets and intellectual property we might think, for example, of the rights of a particular business based in the UK to carry on business using the branding, know-how and knowledge of a particular piece of intellectual property held in a low or no tax jurisdiction. Any royalties moved from the UK out to that low or no tax jurisdiction will be a form of profit shifting that might be artificial and simply designed to reduce a corporation’s tax bill, which is why we have particular measures in this Bill to address exactly that situation.

--- Later in debate ---

[Anneliese Dodds]

I discussed a few moments ago how many of those measures are in fact disputed. It would be interesting if the hon. Lady could break down that figure. I suspect many of us would not agree that it reflects an accurate representation of the tax lost. In fact, as I mentioned, when profit shifting is taken into account, that figure is likely to be much larger.

I am very positive about the potential of our economy, and the potential of our tax officers, but I think they are being presented with an impossible task. I have talked to many of them—dozens of them—and they are very concerned about the future. They want to do a decent job, but they are being prevented from doing so a lot of the time, sadly, due to the Government’s determination to press ahead with this reorganisation programme.

[Eddie Hughes]

Is the hon. Lady aware that, following the Government’s consultation on their intentions for an increased tax take on intangible assets, they have introduced an allowance of £4 million to make amendments to computer systems and to employ more staff so that they can monitor compliance with these new tax regimes? Will she welcome that?

[Anneliese Dodds]

I am grateful to the hon. Gentleman for his intervention but, as I have said, some of the new staff coming in are replacing other staff who have been lost. In fact, when we look at those data, we see that over 17,000 staff years of experience in HMRC have been lost through redundancy. I find that many more experienced specialised staff are talking about leaving our Revenue in the future if the Government press ahead with their reorganisation scheme.

--- Later in debate ---

[Helen Goodman]

I congratulate my hon. Friend the Member for Oxford East (Anneliese Dodds) on a tour de force. I know she really is on top of this subject, having worked with her on the Sanctions and Anti-Money Laundering Act 2018. I thought her speech this afternoon was very impressive.

I will speak to new clauses 5 and 6, which stand in the name of my right hon. Friend the Leader of the Opposition and deal with tax avoidance and evasion. I am sure Members on both sides of the Committee recall what happened on 1 May 2018, when there was a cross-party move, spearheaded by Back Benchers, to introduce public registers in the overseas territories. The Government, in the form of the Minister for Europe and the Americas, conceded that this was a change that should be made. We had tabled an amendment that would have required similar public registers in the Crown dependencies, but the right hon. Gentleman said he would prefer to take a voluntary approach and asked me not to press the amendment. In the spirit of co-operation I agreed not to do so. Today I ask the Government what progress they have made with the Crown dependencies on that voluntary approach. In public, the Crown dependencies are going around saying how delighted they are that the pressure is completely off and how nobody in this House is interested in having similar public registers for the Crown dependencies as for the overseas territories.

That is relevant to this tax debate because the OECD has estimated that, across the OECD countries, the tax lost to the secret jurisdictions is between $100 billion and $240 billion. An independent researcher, Tax Research LLP, has estimated that this country’s tax loss is £18.5 billion a year, which is a significant sum. I know the Treasury thinks everything is going well, but it is not so flush that it can just wave away £18.5 billion.

I thought I had better follow up with Ministers and ask what they were doing, so about three months later I asked the Foreign Office what discussions it was having with the Crown dependencies. This is the answer I received:

“The Foreign and Commonwealth Office is not responsible for UK engagement with the Crown Dependencies regarding existing beneficial ownership arrangements, and has therefore not had any discussions with the Crown Dependencies on this issue.

The Ministry of Justice is the UK Government Department responsible for the UK’s wider constitutional relationship with those jurisdictions.”

So obviously I asked the Ministry of Justice what it is doing to pursue public registers of beneficial ownership with the Crown dependencies. It said:

“The Crown Dependencies are not part of the UK.”

Okay, even I have latched on to that one. It continued by saying that they are self-governing and that:

“The Ministry of Justice manages the constitutional relationship between the UK and the Crown Dependencies. Ministers and officials routinely discuss a range of matters…but it is not my Department’s role to make specific recommendations”

on company registers of beneficial ownership. It went on to say:

“The Ministry of Justice also liaises with the Home Office as the lead UK Department for arrangements on sharing beneficial ownership information”

Blah-de-blah. Finally, it said:

“The Government intends to use its best endeavours, diplomatically”

—by which is meant, “Let’s hit the ball back over to the Foreign Office”—

“and with international partners, to promote public registers of company beneficial ownership as the global standard.”

That will not do. We were made a promise by Ministers on 1 May. This move would help us significantly to reduce tax avoidance.

I also asked Ministers at Treasury oral questions what their estimate was of the amount of money that would flow in from the changes we had made on the overseas territories—this was the part where we had a consensus. I asked that because I could not see anything in the Red Book on it. The Minister said, “Oh well, this was all pie in the sky. We have not done any work on it.” This is why new clauses 5 and 6 are really sensible. The fact is that if Ministers stand up and offer legislation or make promises but do not follow through, there is no point in this House doing anything. That is why requiring impact assessments in the legislation will enable us to keep track of what Ministers are doing and where they have got to. That is why I urge them to do this. It is in their interests, as they will be able to use the impact assessments to keep track and to manage their officials, who are doubtless beavering away to the best of their ability, given the political direction that they are getting.

Earlier, we debated distribution and the impact of the Budget. It is disappointing not to get information about the distributional impact of the Chancellor’s measures. For many years, the Treasury Committee was instrumental in ensuring that distributional analyses were undertaken. I am not clear where we are on this, but I urge Ministers to publish the proper distributional analyses. That will facilitate informed public debate, rather than the exchange of prejudices. I am sure that that is ultimately what Ministers want.

[Eddie Hughes]

It is a pleasure to follow the hon. Member for Bishop Auckland (Helen Goodman), although I have to say that the contribution from the hon. Member for Glasgow Central (Alison Thewliss) was the speech by an Opposition Member that most excited me, not least because I wrote a paper on blockchain for the think tank Freer, where I considered the merits of the technology and how it might help us to improve the efficiency of government. I am delighted to say that on Thursday I am going to have lunch with Dr Craig Wright, one of the people associated with the creation of bitcoin, which celebrated its 10th birthday recently. I understand that the Government and the Treasury Committee have given some consideration to the use of crypto-currencies and crypto-assets and how they might be appropriately governed in the future. That is the job of the Government. They have to keep pace with improvements and diversity in technology and understand where money is being used and created, to make sure that their tax take is optimised while observing the general principle of low taxation. The second Roman emperor, Tiberius, said that a good shepherd shears his sheep but does not skin them. I think that is an appropriate maxim for us to follow, but sometimes the Government’s problem is that they need to find the sheep in order to shear them.

Finance (No. 3) Bill

Eddie Hughes Excerpts

2nd reading: House of Commons & Programme motion: House of Commons
Monday 12th November 2018 Commons Chamber

[Eddie Hughes (Walsall North) (Con)]

It is a pleasure to follow the hon. Member for Mitcham and Morden (Siobhain McDonagh), not least because I shared a platform with her during the Conservative party conference. It was great that she took the opportunity to attend the party conference and I felt a bit of a convert to her cause with regard to the reassessment of some green-belt land that might not otherwise really be described as green belt.

Anyway, that is obviously a topic for another day, as is, possibly, the subject of fixed odds betting terminals. My son, Sam, used to manage a Betfred, and he would occasionally regale us with stories of the people who came in. The store would be empty all Sunday afternoon, then someone would come in for the last hour of the day and blow £400 or £500 on one of those machines in an hour. That would make keeping the shop open all day worth while. I am not making a political point here, but it was the Labour Government who introduced the legislation that gave us fixed odds betting terminals. Personally, I think it is to be celebrated that this Government are going to see their demise, or at least a reduction in the stake to £2. Whether that happens at one point or another, I am personally glad that it is happening at all.

Actually, none of that was what I wanted to talk about this evening. I want to talk about a slightly abstract topic. I understand that it was Tiberius, the second Roman emperor, who said that it was the duty of a good shepherd to shear his sheep but not to skin them. I say “his sheep”, because obviously they were not so politically correct in those days. He obviously meant “his or her sheep”. I understand that that maxim is on the wall in No. 11 Downing Street, although I have not been privileged enough to go in and see it for myself. Perhaps my hon. Friend the Member for Chichester (Gillian Keegan) can confirm that for me.

How do I know that to be true? I read it in an excellent textbook, “Taxation: Policy and Practice”, by Andy Lymer. Andy is professor of taxation at Birmingham University, and I went to see him recently in order to educate myself. I think it is the duty of all MPs to adopt continuing professional development and to ensure that we understand something about the topics that we are talking about, although in my case it is clearly a very small something.

Anyway, the point was well made by Tiberius: we should not overtax our people. He clearly knew what he was talking about because, when he left office in 37 AD, the were 3 billion sesterces in the Treasury. I have no idea whether that is a lot of money, but 3 billion of anything sounds like quite a lot. He was clearly a man who knew what he was doing. I understand that he achieved that by limiting his wars with neighbouring factions and ensuring that he operated a good diplomatic policy. Perhaps those are other Conservative principles that we can adopt more these days.

Now, why am I going on about this? It is because the tax-free threshold in 2010 was £6,745, and this party is now going to increase it to £12,500. I believe that I represent the most deprived constituency represented by a Conservative MP, so it is incredibly important to my constituents that they will now find themselves £1,200 a year better off. That will have a significant impact on their lives. How many of them are there? The House of Commons Library could not give me specific details, but it told me that approximately 499,000 people will be taken out of the tax bracket because of that change, and 8% of taxpayers are in the west midlands, so that translates to approximately 40,000 people in the west midlands who will not be paying tax as a result of this above-inflation increase for the year 2019-20. For the following year, 2020-21, there will be a further 12,500 people in the west midlands not paying tax. That is hugely significant.

The Mayor for the west midlands, Andy Street, welcomed the Budget as

“a £100 million vote of confidence”

in the west midlands. Why would he say that? It is because approximately £70 million is being given to transport infrastructure across the region, and a further £20 million is being given to help the region to cement its position as a global leader for connected and electric vehicles. That is the future and it is very exciting to see. This Government are making sure that they link up elements of policy. There will be taxation changes for businesses that provide electric charging points at work. Clearly, there is more to be done. In order for people to adopt the new technology, they will need to be able to charge electric vehicles very frequently, so we need to make sure that there are charging points in many convenient locations, but this is certainly a step in the right direction.

The other measure I welcome for my constituents is the stamp duty relief for first-time buyers. I understand that for the previous financial year 270 of my constituents benefited from that relief to the tune of approximately £1,100 each. Again, that is no small potatoes for my constituents. The Government are continuing to support my constituents and to leave the money in their pockets so they can choose where best to spend it.

I encourage the Treasury Front-Bench team to adopt Tiberius’s maxim and continue to shear the sheep, not skin them—it is good Conservative policy.

Inclusive Transport Strategy

Eddie Hughes Excerpts

Thursday 25th October 2018 Commons Chamber

[Ms Ghani]

That is an incredibly valuable point. When talking about shared spaces, we may think about those who are using wheelchairs or those with visual health problems, but not about mums or parents with buggies, let alone older people. That is why the interpretation of shared spaces is so varied. There is some valid concern that when shared spaces are imposed in their totality, when there is absolutely no infrastructure in place, the situation can become incredibly complicated. We all have anecdotal evidence of where it is or is not working, but we absolutely need to collect the data so that we can ensure that the guidance is the best that it can be.

As I mentioned, we will work with Transport Scotland to take on board all the feedback. We are working with our stakeholder groups to make sure that we have a much more informed decision on shared spaces, particularly with regard to controlled crossings and kerbs, and dealing with people with a variety of disabilities. It is only right that towns should be designed in a way that works for all, and the Government are determined to work with local authorities to ensure that this happens.

I have written a letter jointly with my hon. Friend the Minister for Housing to clarify the approach that should be taken to shared-space schemes. The letter makes it clear that the pause applies to schemes with relatively large amounts of pedestrian and vehicular movement such as high streets and town centres, but does not apply to streets within new residential areas or the redesign of existing residential streets with very low levels of traffic. Whether to improve individual schemes is a matter for local authorities, which need to ensure that they are compliant with their duties under the Equality Act 2010, but we hope that common sense will prevail before the updated guidance is issued.

The strategy includes a commitment that the Department will provide £2 million of funding to enable more Changing Places toilet facilities to be installed at our motorway service areas. Having access to these facilities can be genuinely life-changing for some families and allow them to make journeys that would otherwise have been impossible. We will shortly announce further details on how we intend to allocate this funding, and we will be working in partnership with Muscular Dystrophy UK. This should allow the majority of motorway service stations across the country to have Changing Places toilets by the early 2020s, compared with fewer than a fifth today.

The Department announced shortly after the publication of the strategy that it would extend the eligibility criteria for the blue badge scheme. The new criteria will extend eligibility to people who cannot undertake a journey without a risk of serious harm to their health or safety, or that of any other person such as young children with autism who cannot undertake a journey without it causing them very considerable psychological distress, or who have very considerable difficulty when walking. This is another step forward in ensuring that people with less visible disabilities get the support that they need to live independently. It was widely welcomed, including by the National Autistic Society, which said that it was

“thrilled that the Department had listened to the concerns of autistic people and their families”

and that the announcement would

“make a massive difference to the lives of many of the 600,000 autistic people in England, and their families.”

The fifth and final theme in the strategy is the importance of making sure that our future transport systems work for everyone. Transport is changing, and the technologies and services we are using are also changing rapidly. Many of these changes will offer wonderful opportunities for disabled and older people. Autonomous vehicles, for example, could mean that those who would not otherwise be able to drive, including perhaps those with visual impairment, could do so for the first time.

[Eddie Hughes (Walsall North) (Con)]

In Birmingham, people are very excited about the 2022 Commonwealth games, and the Government recently announced £170 million to improve transport there. Does the Minister anticipate that that will ensure that the games are completely accessible to people of all abilities?

[Ms Ghani]

That is a very valid point. I assume that when my hon. Friend mentions the games being accessible to people of all abilities, he does not mean the contenders but the people who are going along to visit the great city of Birmingham. That should be the ambition—absolutely. Our desire is to make sure that our services are fully accessible, and any new funding recognises that as well. New technologies should be designed, from the outset, in such a way that disabled and older people can use them.

The strategy includes a commitment that the Government will publish a monitoring and evaluation framework explaining how we will measure the impact that it is having. That is really important. It is essential that we track the progress that is being made towards our goal of creating a transport system that offers equal access for disabled people. The Department will publish the detailed monitoring and evaluation framework in early 2019.

The strategy also includes a commitment that the Department will report regularly to Parliament on the delivery of commitments set out in it. This will allow hon. Members to hold us properly to account. Finally, it includes a commitment to create a new stakeholder advisory group to allow organisations representing disabled people to have more of an opportunity to shape the Department’s policies in the future. The announcements we have made in the strategy show that we have been listening to disabled people, and I am determined to ensure that we continue to do so as we deliver it.

The inclusive transport strategy marks a significant step forward in ensuring that our transport systems are genuinely accessible to all our users. This is a key part of making a society that works for us all. The strategy is ambitious, as it should be, and comprehensive, as it should be, and it sets out a clear direction of travel. The House will have an important role to play in holding the Government to account on the delivery of the strategy. I commend the inclusive transport strategy to the House and look forward to working with hon. Members as the Government deliver it.

--- Later in debate ---

[Lilian Greenwood]

I thank the hon. Member for Inverclyde (Ronnie Cowan), who is a valued member of the Transport Committee, for allowing me to continue.

I very much welcome the Department’s work on an inclusive transport strategy and the opportunity to debate these issues. We know that disabled people are often reliant on public transport, and much of my speech will focus on that. As the Minister said, disabled people face difficulties due to the accessibility of transport, its cost and attitudes, and as I have said already, many measures that can make public transport more accessible for people with a disability also make it more accessible for everyone. Audio-visual announcements on buses, which are standard in London and, I am pleased to say, available on almost all buses in my city of Nottingham, not only are essential for someone who is blind or visually impaired, but help everybody using the bus, particularly if they are visitors from out of town or going on an unfamiliar route. If people can hear what the next stop is, it helps everyone. We look forward to having visual announcements on all trains in the future. As people get older, they often experience greater difficulties with mobility and hearing, and with an aging population, addressing such issues becomes ever more pressing.

The hon. Member for Banbury (Victoria Prentis) talked about pavement parking. Guide Dogs has done important work to raise the profile of that issue and the problem it poses to many people with a disability, so I hope that the Minister will tell us when we can expect to see some change. Pavement parking was the subject of a private Member’s Bill some time ago, when the Government promised to act, so I would be grateful if she could give us a timescale. I also welcome the work around shared spaces, which is another issue that Guide Dogs and other organisations regularly raise on behalf of people with visual impairments.

[Eddie Hughes]

Does the hon. Lady also welcome the Government’s pledge to get 1 million more disabled people into work by 2027, and does she think that the inclusive transport strategy will help to achieve that?

[Lilian Greenwood]

Of course I welcome the commitment to getting more disabled people into work, but my concern is whether the Government are doing enough on a range of issues so that people have the support that they need to get back into work. Perhaps that is an issue for another day, but the availability of accessible and affordable transport certainly plays a key role in ensuring that disabled people can access the workplace.

Funding for these measures is really important, but sadly there is a problem in my city at the moment. In September, Nottingham City Council changed the rules for the concessionary pass for people with a disability. Until early September, disabled people could use their mobility pass before 9.30 am, which was a huge assistance not only to disabled people in work, but to many who would be travelling to attend hospital and other medical appointments. As a result of the funding reductions that the council has suffered, it has had to go back to the national system, which says that passes can be used only after 9.30 am. That enormously regrettable decision is having a significant impact on disabled people in my constituency, although I understand why the council made it. This is about the availability of resources as well as policy.

Another local issue—I wonder whether the Minister is aware of this at a national level, and whether it is a problem in other places—relates to payments for on-street parking through parking meters. Increasingly, meters that allow people to pay by cash are being replaced by services such as RingGo, which involve people paying for their parking by telephone or using their smartphone. I am concerned about the impact of that on older and disabled people, particularly those who are deaf or have a hearing impairment. Has the Minister considered that issue and asked local authorities that are implementing such changes whether they have properly considered the impact on disabled people?

I will come on to speak about a number of individual modes of transport, but people going on journeys do not think, “I’m going to take a bus journey and a rail trip, and then I’m going to walk.” People think about getting from their starting point—perhaps their home—to where they wish to go. We must ensure that there is joined-up thinking, because a disabled person needs to be confident that every leg of their journey will be reliable and accessible. What action is the Minister taking to ensure that there is the joined-up and integrated approach that a disabled person will need if they are to have the confidence to travel? Unfortunately, we know that many disabled people are stopped from travelling because they do not have that confidence.

A report published in April 2017 by the Equality and Human Rights Commission stated that transport options for disabled people are “very limited” because of access and expense, and that disabled people report feeling “trapped” by high costs and limited options. The report also refers to

“attitudinal or psychological barriers that prevent or discourage disabled people from using transport services. This could involve the behaviour and attitudes of some transport staff or concerns that people have about using transport, such as fear of crime, abuse or attack”.

Of course, those are not just issues for disabled people, as they often affect young travellers or women travelling late at night. There are many common issues that we can look to address.

Community transport has already been mentioned, and the Transport Committee’s first report of this Session considered the Government’s proposals on changing the regulations on section 19 and 22 permits. There is considerable concern among Members on both sides of the House about the potential impact of the Government’s changes. Indeed, it is not just a potential impact, because the Government’s actions in July 2017—that was before the Minister took responsibility for community transport, which is a recent development—have already started to have an impact on community transport operators. I wrote to the Minister only a couple of weeks ago to express concern about the actions of some local authorities, traffic commissioners and police. That is happening even though the response to the consultation has not been published and the Government have not issued new guidance.

When the Committee took evidence as part of our inquiry, we heard from hundreds of individual disabled people and the organisations that represent them. We were struck by how many people referred to community transport as a “lifeline”. I am sure that the Minister has listened to concerns raised across the House. I hope that she will take them into account when she publishes her response to the consultation and act to protect community transport, which is vital for so many disabled people.

I know the Minister is passionate about buses and I have been heartened by our discussions so far, but there are a number of issues to raise. One concern that has been highlighted by the Campaign For Better Transport since 2010 is the loss of supported bus services, which in part relates to the reduction in funding for local authority services. Thousands of services have been cut or scrapped altogether as result of those changes, and the impact of that on people who depend on buses—they might be people on low incomes, older people, or of course disabled people—is a great concern. Ahead of the Budget, I hope that the Minister has had conversations with the Chancellor and put in a plea for appropriate funding for transport, and particularly for buses, which are so important to communities up and down the country. Those cuts have had a particular impact on rural communities and more isolated locations.



The curtailing of services can have a particular impact on disabled people. Last week, the Transport Committee held an outreach event in Leicester where we talked to bus users. One woman, who had been a driver in the past but due to having had a stroke was now a bus user, described how on one of her local services the number of stops had been reduced. Where the bus had previously stopped at the hospital, it now stopped at the bottom of the hill before it reached the hospital, leaving her with a difficult journey uphill to access a very important local facility. That is just one example of how services are sometimes curtailed in a way that has a disproportionate impact on disabled people.

Reference has been made to the importance of wheelchair spaces on buses. Everyone is of course aware of the potential clash between buggies and wheelchair users for that space. I pay tribute to Doug Paulley, who took this issue on and confirmed that disabled people should have access to them. I welcome the Government’s commitment to act, but I would like more clarity on when it will happen. We raised this issue during the passage of the Bus Services Act 2017 about 18 months ago, so it would be helpful to understand when further action will be taken. We do not want to see a clash between the needs of wheelchair users and those with large amounts of luggage or prams and buggies. We want to ensure that buses are accessible for everyone. There are some really good examples of bus design. Nottingham City Transport, in my constituency, has large banks of tip-up seats that allow space for two wheelchairs or a large number of parents with children in buggies, so it can be done. We need to ask some bus operators why they are not acting more quickly.

The same is also true for audiovisual announcements, which I have already mentioned. Another shocking example from our visit to Leicester last week was told to me by a young woman. Her friend, who is visually impaired, had got on a route that normally has audio announcements, even though it is not standard in that city. She noticed that there were no audio announcements, so she spoke to the driver who said, “Oh yes, we’ve turned them off because I find them annoying.” That is really shocking, so what action will be taken to ensure that that cannot happen?

Finally on buses, the Minister knows that I wrote to her about the importance of transport to hospital. Many of those who use an older person’s concessionary bus pass use it to travel to hospital and medical appointments. I was really glad that, after I wrote to the Minister—alongside Age UK, which has done excellent work on this in its report, “Painful Journeys”—it appeared in the inclusive transport strategy. I just want clarification on some of the action that was promised. Has transport to hospital been raised at the disabled people and society cross-ministerial working group mentioned in the strategy? Is cross-departmental work currently under way? If so, what specifically is happening? What are the Minister’s plans for ensuring that the commitments in the strategy on transport to hospital actually happen? Will they definitely be built into the evaluation framework? I am sure that she will address those issues when she sums up later.

Trains often dominate our discussions. I apologise, Mr Deputy Speaker, but I am hoping we have plenty of time for this debate.

Five-year Land Supply

Eddie Hughes Excerpts

Wednesday 4th July 2018 Westminster Hall

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Nigel Adams)]

It is a pleasure to serve under you, Sir Christopher, for the first time in this hot seat. It is also a great pleasure to have listened to some fantastic contributions from colleagues from across the House.

I congratulate my hon. Friend the Member for South Suffolk (James Cartlidge). Everyone who has contributed to the debate has been an outstanding champion for their local area. It was heartening to hear so many passionate speeches from right hon. and hon. Members. Before I respond to some of the points made, I thank my hon. Friend for his continuing work to raise such important issues. He has great knowledge of the area and has spent many years of his professional life in the sector. I also read his well-informed “Red Box” piece in The Times today.

Many years before I was elected—before I had even considered going into politics—I asked the Member of Parliament for Selby at the time, the late Michael Alison, “What takes up most of your time?” He told me about the various issues, and I asked, “What about planning?” He said, “Planning is simple—I ignore it, don’t get involved in it and leave it to the council. That’s the way forward.” Times have changed a bit, because I think we can all agree that planning takes up an enormous amount of our time in this day and age.

I should point out that the Secretary of State, as Members know, has a quasi-judicial role in the planning system. I am sure everyone understands that it would not be appropriate for me to comment on the detail of individual decisions or plans, but I can talk about the issues that have been raised more broadly. I will set out our national policy aims and then speak more generally about the technical points of each case. I just need a steer on when I am meant to be finished by, following the 25-minute suspension.

[Eddie Hughes (Walsall North) (Con)]

Eight minutes past.

[Nigel Adams]

I have about nine minutes left—that is about right. My thanks go to a great Parliamentary Private Secretary.

Issues with the current five-year land supply model and slow build-out were a key feature of the housing White Paper. The Government are seeking to address that through a package of reforms to the planning system, including revising the national planning policy framework, which will be published this summer. The review of the NPPF is fundamental to delivering the 300,000 homes a year we need, and sets out a comprehensive approach to ensure that we get the right homes, built in the right places and to the right quality.

The revised framework implements around 80 reforms that were announced last year, and retains the emphasis on development that is both sustainable and locally led. Those changes include clearer expectations of local authorities and developers to deliver their commitment to unlock land, fulfil planning permissions, provide essential infrastructure, and ensure that homes are built to meet the diverse needs and expectations of communities. The measures include a standardised way of assessing local housing need; reforming the plan-making system to ensure that every part of the country produces, maintains and implements an up-to-date plan; and an opportunity for local authorities to have their five-year housing land supply agreed on an annual basis. The last two points are particularly relevant to today’s important debate.

It is important that local authorities plan effectively for the new housing required in their areas. Ultimately, new homes need to be provided through up-to-date local plans, produced in consultation with local people and communities. These are a vital element of the planning system. They are the starting point for planning decisions by planning authorities and inspectors. I welcome the progress that Babergh District Council, working with Mid Suffolk District Council, has made with their local plan preparations. I understand that the local authorities are aiming to submit them for examination by the Planning Inspectorate in spring next year.

It is important that adequate land is available to build the homes we need. Local authorities play their part by producing up-to-date local plans and identifying a five-year supply of housing sites. That provides clarity to local communities and developers about where homes should be built so that development is planned rather than the result of speculative applications. Every right hon. and hon. Member in the Chamber will have had experience of that. I have great sympathy with communities that feel that they have no control over planning, and nobody wants to see companies overtly gaming the system. However, we need more homes, and that is why communities should consider a neighbourhood plan—championed by many right hon. and hon. Members here today—to give them more control over the issue.

Demonstrating a deliverable pipeline of housing sites has been a long-standing Government policy. Since the existing NPPF was introduced in 2012, local planning authorities have been asked to identify and update annually a supply of specific deliverable sites, and to demonstrate a five-year land supply. Where the local authority cannot demonstrate that, the lack of supply means that plan policies are not considered to be up-to-date, and applications are assessed against the presumption in favour of sustainable development. However, the presumption in favour of sustainable development does not, and should not, mean development at all costs. Any adverse impacts of the development will still need to be taken into account.

The housing White Paper acknowledged that the current policy has been effective in bringing forward more permissions but has had some negative effects, as we have heard today from my hon. Friend the Member for South Suffolk. In response, we have proposed reforms to how land supply is calculated. The draft revised NPPF includes proposals to allow local authorities to agree their five-year housing land supply position on an annual basis and to fix it for a one-year period. The Department believes that taking up that opportunity should reduce the number and complexity of appeals, and provide greater certainty to all parties.