Government's Management of the Economy

Florence Eshalomi Excerpts

Tuesday 23rd February 2021 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

The last decade has seen huge changes to our economy and the way we work, most notably the advent of the gig economy, characterised by short-term contracts or freelance work instead of permanent jobs. It is a work force dominated by women and workers from black and minority communities. That type of economy works well for people who can choose where, when and how they work, but it does not work for everyone—those who have no choice but to take whatever low-paid, insecure work they can get.

This pandemic has revealed and exacerbated deep structural inequalities in Britain today, and it has also created winners and losers. Public Health England found that black and minority ethnic communities were more likely to live in overcrowded houses in deprived areas and have jobs that exposed them to high risks of contracting the virus—a cocktail of conditions that had left them more vulnerable to unemployment and the risk of death.

We must take the opportunity to reflect on the lessons of the pandemic. Time and time again the Government have promised to reform the gig economy, but their flagship employment Bill is nowhere to be seen. We need to ensure that that Bill enshrines strong protections for gig economy workers, so that as we start to recover and rebuild the foundations of our economy and Britain, we build a Britain that will benefit everybody.

Financial Services Bill

Florence Eshalomi Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Wednesday 13th January 2021 Commons Chamber

[Sir Robert Neill (Bromley and Chislehurst) (Con) [V]]

There are a lot of good things in the Bill that I welcome, and I refer to my entry in the Register of Members’ Financial Interests. I welcome the assistance given to financial services in Gibraltar, and I welcome a number of the technical changes to the operation of retained European law in relation to markets. I particularly welcome new clause 6, on FinTech, which is a really important growth sector for this country. Added to the listing regime changes in the Bill, this gives us the opportunity to encourage the bringing forward of initial public offerings of FinTech companies in the UK and to build a critical mass.

I have sympathy for new clause 4, but I do not want to pre-empt the work of the Law Commission. That said, the Government do have to act more swiftly and with more urgency in relation to reform of corporate criminal liability. It has been kicking around for a long time. The Justice Committee has heard compelling evidence on the need for reform. I do not accept the contention that there is a balance on this. The balance of evidence is clearly in favour of reform. Both the current and former directors of the Serious Fraud Office have highlighted the deficiency in criminal liability in this field, as have at least two former Attorneys General. I hope that as soon as the Law Commission reports, we will move swiftly to enact this reform, because we lag behind other jurisdictions in this regard.

The other area where I do not think it is necessary to legislate is progress on equivalence. Although we may not need to legislate, it is really important that the Government address this with urgency. Of course, as we build our way forward outside the EU it will not always be appropriate to follow everything by way of regulatory equivalence, but there are many instances in which it will be very much in the interest of the City and the broader financial services sector to do so.

In the immediate term, is important that we acquire further equivalence agreements with our EU partners; that is in the interests of both sides. Currently, we have a commitment to a memorandum of understanding by the end of March, but the EU says that it has no immediate plans for further equivalence discussions. That needs to be resolved. Although it does not require legislation, we need from Ministers greater commitment to resolving the issue. There has sometimes been a feeling that financial services are being taken for granted in the Brexit negotiations; that needs to be put to bed. Financial services are the jewel in the economic crown of this country and need to be front and centre of our ongoing economic policy.

[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

I wish to focus my remarks on amendments 1 and 2, tabled in the name of the Leader of the Opposition. As my right hon. Friend the Member for Wolverhampton South East (Mr McFadden) said, the amendments are desperately needed now to ensure that regulators must take into account the Government’s target of achieving net zero carbon emissions by 2050. I was therefore disappointed to hear from the Minister that the Government will not support the amendments but might “consider” the matter “in the future”. We cannot afford to wait. Climate emissions are cumulative, and a large part of the carbon that we produce today will stay in the atmosphere for hundreds, if not thousands, of years.

If we are serious about tackling the climate emergency and reaching our 2050 target, we must reduce our emissions as quickly as possible. The sensible and least-destructive way to do that is to start to adapt our economy now; the irresponsible thing would be to leave it too late, thereby making the inevitable economic adjustment more painful for everyone. Regulation is one of the most powerful tools in our box of options and will ensure that the whole financial sector is unified in its actions towards this really important goal and, most crucially, acts within a timeframe that reflects the climate emergency we face.

I do not want my two young children to ask me one day why I missed the opportunity to fight for a better, more sustainable future for them. That is why I will support amendments 1 and 2, and I urge all Members in the House to join me.

[Jessica Morden (Newport East) (Lab) [V]]

I wish to speak briefly in support of new clause 7, tabled by my hon. Friend the Member for Walthamstow (Stella Creasy), to whom I pay tribute for her work with campaigners on the issue. Her new clause would require buy-now-pay-later operators to be regulated by the FCA.

As others have said, buy-now-pay-later is a new and growing industry, the popularity of which has rocketed in the pandemic, with one company reporting a 43% increase in sales. It is a form of credit that promotes impulse buying—one in four users spend more than they planned—and it is targeted at young consumers who are pursued by companies using celebrity influencers and targeted ads. StepChange, the debt charity, is seeing many more under-40s coming forward for advice with this type of debt. Let us protect consumers and properly regulate the sector, which is currently uncontrolled and operating with a social media-savvy face. Let us not wait for people to get into trouble with unsustainable levels of debt, particularly when we will see an increase in personal debt because of the pandemic.

Support for SMEs: Covid-19

Florence Eshalomi Excerpts

Tuesday 10th November 2020 Westminster Hall

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Sir Edward, and I pay tribute to the hon. Member for Carshalton and Wallington (Elliot Colburn) for calling this debate.

My constituency is home to more than 6,000 small and medium-sized businesses, ranging from independent shops around the ever-busy Clapham Common, including Minnow, Charlotte Cave and Clapham Books, to the row of street stalls and quirky businesses along the Lower Marsh in Waterloo, including Greensmiths and River Remedies, the numerous small pubs, cafes and restaurants along what many people refer to as Little Portugal—South Lambeth Road—and our vibrant lesbian, gay, bisexual and transgender communities and venues, which draw so many people to Vauxhall from across the world, adding immeasurable culture to our part of south London.

The covid-19 pandemic has had a devastating impact on all those businesses, and I have personally visited them over the past few months to see at first hand the impact on the ground and how they have been adapting and coping with what we call the new normal.

I met one constituent in March who planned to open a new grocery store after three years of sheer dedication, hard work and money to get that off the ground. He was devastated just before the national lockdown not to be able to open as planned. He now faces unaffordable rents and his costs have to be paid even though he is not receiving any income.

Another small business owner I met told me about her 13-year-old daughter. She is worried about how the business will be kept running. If she is forced to self-isolate because one of her children catches the virus, the business will struggle and that will be the end of the business for her and her husband.

My constituent who runs the Prince of Wales in Clapham Old Town highlighted the dire consequences for the hospitality sector, with many landlords continuing to demand rent for closed premises. He also highlighted the fact that a number of his staff come from EU nations—I am proud to boast that I represent the top-voting Remain constituency in the country—but there are real consequences here for small and medium-sized businesses. It is important that we get a firm deal so that these businesses can continue to thrive.

At the beginning of the lockdown in March, the Government provided the coronavirus hospitality and leisure grant for properties with a rateable value of £51,000, but Vauxhall is a central London constituency with higher than average rateable values, so many of the businesses that I represent did not qualify for any support, yet saw an immediate drop in footfall.

As the lockdown lifted over the summer, many of the small and medium-sized businesses that support the vibrant cultural sector that I represent along the South Bank were not able to open their doors again. Those businesses rely on tourism, but—guess what—the tourists have not come back, and they will not be coming back for a while.

How do we help those small businesses? The Government’s one-size-fits-all approach is not helping small and medium-sized businesses, which in places such as Vauxhall are struggling. When we come out of lockdown, it is important that we do not look at any more business closures, because without those businesses our communities will not thrive. Will the Minister therefore reassure my constituents that the Government will not try to implement their one-size-fits-all approach, but will listen to small and medium-sized businesses and provide tailored support so that all of them can get back on their feet post-covid 19?

[Several hon. Members rose—]

Black History Month

Florence Eshalomi Excerpts

Tuesday 20th October 2020 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

Following on from the hon. Member for Beaconsfield (Joy Morrissey), who mentioned Mary Seacole, this is something that is close to my heart. It is important that we celebrate some of the great people who have contributed to our country. Some of that work has been led by a number of people campaigning for many years. The Mary Seacole statue at St Thomas’s Hospital in my constituency came about not just because people wanted it, but through 12 years of hard work by the Mary Seacole Trust. Private contributions of more than half a million pounds were secured to put it up. To give the former Chancellor, George Osborne, credit, the Treasury also contributed £250,000 towards it. I want to pay tribute to some of the people who were at the unveiling of the statute in 2016, including the great Baroness Floella Benjamin and the great Dame Elizabeth Anionwu. It is important that we ensure that Mary Seacole’s history and contributions are recognised in our history books.

Both of my children were born at St Thomas’s. My daughter was born in 2015 and my son in 2017—a year after the statue was erected. It gave me immense pride, as I was pacing up and down waiting for that child to come out, to see it in the garden of St Thomas’s. On it is inscribed the words of The Times’ Crimean war correspondent, Sir William Howard Russell:

“I trust that England will not forget the one who nursed her sick and who sought out her wounded to aid and succour them and who performed the last office for some of her illustrious dead”.

We have seen that in this pandemic: some of our nurses working around the clock caring for people who have tragically died, and some of our care workers working around the clock on some of the lowest pay caring for our elderly relatives. It is important that we do not forget their contributions. That is why Black History Month is so important. That fight for racial justice must always show the appreciation of that collective history. If not, why are we celebrating it?

A number of people have asked me, “Why do you always talk about race?” Until we have full racial equality, I will not stop talking about race. Unfortunately, we still do not have it in 2020. I am proud to have been the first black woman to be elected to represent my constituency of Lambeth and Southwark in the London Assembly, and to be the first black woman to represent my constituency of Vauxhall, but I do not want to be the first. I want other people to come after me; it is no good just being the first. We have to look at how we are bringing up the next generation to get involved in all spheres of life, not just politics.

As the Minister knows, as she comes from a Nigerian background, our parents tell us when we are younger, “You are going to be a doctor, a nurse or a lawyer,” but how do we make sure that more of our young children have an advantage in all different aspects, that they can see themselves in all different professions, in boardrooms and running their own businesses? That will happen only if there is equality of opportunity from the start for all our young people.

My journey into politics was not easy. People said to me, “Why do you want to do that? Why do you want to go there? Are you sure this is what you want to do?” Even in the last 10 months, I have witnessed and been subject to racism, but that is not going to stop me; it is going to push me even more to make sure we call out some of those ill things. The right hon. Member for Romsey and Southampton North (Caroline Nokes) said that she has been an ally. That is fantastic. We need more people across all sections being allies to black people, calling out some of the things they have seen and calling out the racial injustices, whether in the workplace, at home or in their business. That is what true allyship means.

I went to visit a secondary school in my constituency last week to speak to the year 11s about Black History Month and they gave me a small goody bag. One of the badges in the goody bag said “Black 365 Days”. I am not black only in the month of October; I am black every day. It is important that we celebrate the contribution of our black people throughout the year. That is something that we all agree with, and to get to that we need to look more strongly at the issue of black education in our curriculum.

My hon. Friend the Member for Streatham (Bell Ribeiro-Addy) mentioned Olive Morris.  For years as a councillor, I used to go into that building, not knowing the great work that she pioneered, and it is important that that is celebrated and documented. We are not talking about whitewashing and erasing our history. That was in the past—yes, there is an uncomfortable past in some of the things that this country did, but it is about celebrating and recognising the contributions of great black Britons, so going forward, I hope that we can see more debate and more contributions.

This October, it would be remiss of me not to mention Nigeria. We celebrated 60 years of independence on 1 October, but we see some troubles going on in Nigeria. Myself and my hon. Friend the Member for Edmonton (Kate Osamor) were out at the protest; there is a big movement at the moment, trying to end the police brutality. I am really sure, for the Nigerian diaspora in the UK, that we should celebrate their positive contribution.

Budget Resolutions

Florence Eshalomi Excerpts

Monday 16th March 2020 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

While Members have expressed a number of concerns about the Budget that I would echo, I wish to focus my remarks on coronavirus and the impact it will have on my constituency.

I spent this morning and early afternoon visiting a number of businesses in my constituency to hear at first hand the impact coronavirus is having on the ground. One organisation raised with me the fact that the loss of income is having a big impact in terms of cancellations of bookings and administration charges associated with refunding tickets for organisations. Another organisation raised the fact that the cancellation is costing in excess of £400,000 a week. In Lambeth, there are more than 30,000 self-employed workers. I continue to receive messages that they are seeing cancellations and a reduction in bookings as a direct result of the virus.

The Chancellor’s response to the self-employed and those not eligible for statutory sick pay is to direct them towards universal credit. Unfortunately, the universal credit system is not fit for purpose. We have seen a sharp increase in food bank use under universal credit, and the five-week wait built into the system means that it is not suitable to deal with millions of temporary new claimants. The Chancellor must go further to ensure that universal credit works and to start that payment from day one so that the system can deal with those who need it due to coronavirus.

Many of my constituents are in insecure work and will also be in the private rented sector. They do not have adequate levels of security in their tenure to deal with the crisis. If we expect people to stay at home, tenants need to have a secure home for the entirety of the crisis. People should not be forced to choose between health and hardship. The support provided to mortgage holders is reassuring, but there seems to be little by way of support for vulnerable tenants who struggle to pay their rent and have been forced to leave their home. How can tenants be assured that they can self-isolate whenever they feel symptoms if they can also be evicted with two months’ notice if they fall behind on their rent?

As the Member of Parliament for Vauxhall, which contains the world-class and famous South Bank area, I represent some of the most visited attractions and businesses in the country. That brings with it busy hospitality and a leisure centre that should be looking forward to a thriving spring and summer, but even now, when relatively new cases of coronavirus seem to be coming, those businesses are already struggling with the impact.

Members of the South Bank Partnership of businesses have told me that they are suffering from reduced footfall and booking numbers, and venues are seeing a drop in group bookings from Asia and mainland Europe. Bars and restaurants are seeing a drop in customers and future bookings, and major hotel chains have seen a 30% drop on per-room revenue compared with last year. This afternoon, the Prime Minister announced that the public should not go to theatres, but the Government are not enforcing mandatory closure, which means that many businesses will not be able to claim the insurance that was put in place to protect them. This is not working, so will the Chancellor work with me, the Mayor of London and these businesses to develop a forward-thinking recovery plan that helps these companies and gives them the reassurances they need?

The Government’s measures to protect small businesses are welcome, but many of the businesses I have spoken to feel fearful about their future, and the Government’s package does not go far enough. Will the Chancellor resolve this crisis by funding local government and giving it guidance on implementing hardship funds, so that we can all continue to support our local businesses?