Building Societies Act 1986 (Amendment) Bill

Debate between Gareth Davies and Peter Gibson

Report stage
Friday 19th April 2024 Commons Chamber

[The Exchequer Secretary to the Treasury (Gareth Davies)]

Let me first congratulate the hon. Member for Sunderland Central (Julie Elliott) on reaching the Third Reading of her important Bill, which will help to ensure the future growth and success of the building society sector. She is a strong advocate for the sector, and has introduced a Bill that will help it to grow and compete with retail banks, so that it can continue to provide vital diversity to the UK financial services sector.

I also congratulate my hon. Friends the Members for East Kilbride, Strathaven and Lesmahagow (Dr Cameron), and for Milton Keynes North (Ben Everitt), and especially my hon. Friend the Member for Darlington (Peter Gibson), who I was delighted to join back in November to open the Darlington Building Society in the middle of town. I saw from him and the employees just how impactful they are in his community, and I am sure that they will go from strength to strength.

[Peter Gibson]

While the Minister is on his feet, I wonder whether he could outline to the House the gift he received from Robin Blair, our veteran fruiterer and vegetable trader in our historic market hall, who joined him on that opening day.

[Gareth Davies]

I was not expecting an intervention on that of all subjects, but I did enjoy the satsumas that were provided by the very nice gentleman, who I understand is an institution in the town of Darlington.

As I was saying, building societies are important to all our communities, not least mine in Grantham and Bourne. In Grantham I have the Nationwide Building Society, the Nottingham Building Society and the Melton Mowbray Building Society, a new branch of which is opening in Bourne in April.

Today I wish to outline a few things: first, the Government’s support for the mutuals sector; secondly, the importance of mutuals to our overall financial services sector; and, finally, how this Bill will further support the future growth and success of mutuals. The Government want to promote the growth of mutuals, which make a vital contribution to the UK economy. As outlined in the mutuals prospectus, there are over 9,000 mutuals operating throughout the country, with a combined annual turnover of some £88 billion in 2022, which equates to 3.5% of UK GDP. However, beyond their vital financial contribution to the UK economy, mutuals play an important role in supporting people across the country. Their unique ownership model means that these businesses are rooted in their local communities, and working to make society better.

It is for those reasons that the Government are committed to supporting the growth and success of the mutual sector. For example, last summer the Government amended the Credit Unions Act 1979 so that credit unions in Great Britain can offer a greater range of products and services. Moreover, as the hon. Member for Sunderland Central said, last year the Government supported the private Member’s Bill introduced by the hon. Member for Preston (Sir Mark Hendrick), which achieved Royal Assent in June 2023. The Co-operatives, Mutuals and Friendly Societies Act 2023 will allow the Treasury to pursue further secondary legislation to give co-operatives, mutual insurers and friendly societies greater flexibility in deciding what to do with their surplus capital and the restrictions on their assets. The Government continue to develop a modern and supportive business environment for mutuals. As part of that, we have asked the Law Commission to conduct reviews of the Co-operative and Community Benefit Societies Act 2014 and the Friendly Societies Act 1992.

Building societies are perhaps one of the best-known types of mutuals. There are 42 building societies operating throughout the country, providing mortgage and savings products to around 26 million members. They play an essential role in supporting their members in building savings habits and buying their own home, as the hon. Member for Bristol North West (Darren Jones) outlined. That cause is supported by Members from across the House, but particularly by the hon. Member for Sunderland Central, who has consistently championed the importance of supporting first-time buyers—not just in her constituency, but across the country.

Building societies are especially well represented in communities outside the south-east. For example, the Melton Mowbray Building Society provides vital support in all areas neighbouring my constituency, and I note that the Newcastle Building Society has a significant presence in the constituency of hon. Member for Sunderland Central. It builds on a 160-year history, and its amazing commitment to its members in the communities in which it operates remains strong. It has partnered with the citizens advice fund to provide expert advice to members, answering questions on a variety of important issues. She also has the Yorkshire Building Society in her constituency, which has done great work on financial literacy through its Money Minds programme.

It is clear that building societies contribute to the wellbeing of communities throughout our country, including in the constituency of the hon. Member for Sunderland Central. The Government are fully supportive of this private Member’s Bill, which will help the sector to compete more effectively with retail banks, so that building societies can continue to work.

This Bill is about enabling building societies to grow and compete with retail banks. We are achieving that by updating the legislation in three short ways. First, the Bill excludes three specified sources of funding from the 50% wholesale funding limit for building societies. This will provide them with greater flexibility in raising additional wholesale funding, while still operating within the mutual model. The detail of the funds will be further specified by the Treasury through secondary legislation in due course. Furthermore, the amendment in the name of the hon. Member for Sunderland Central means that the statutory instruments will be subject to the affirmative procedure, allowing for greater parliamentary scrutiny; that comes on the back of very constructive work from across the House. The amendment does not change the policy outcome of the Bill in any way, but simply amends the parliamentary procedure that will be followed when subsequent regulations are made.

Secondly, the Bill allows for the option of real-time virtual participation at building society meetings. This will improve meeting accessibility and promote wider membership engagement, should the members of any building society choose to permit virtual participation under their rules.

Finally, the Bill will provide His Majesty’s Treasury with the power to further align constitutional provisions. Specifically, it will align provisions in part 2 of the Building Societies Act 1986 on common seals and the execution of documents with modifications made to company law. This will remove outdated and burdensome legislative requirements, and update the 1986 Act, in line with modernisations made to company law.

In conclusion, the Government fully support the hon. Lady’s Bill. We recognise the importance of the building society sector, which supports people and communities across the country. I extend my thanks to the hon. Lady for introducing the Bill and for progressing it to Third Reading. She can be assured that the Government share the vision set out in the Bill for supporting the future growth and prosperity of the building society sector.

Oral Answers to Questions

Debate between Gareth Davies and Peter Gibson

Tuesday 6th February 2024 Commons Chamber

[Peter Gibson (Darlington) (Con)]

Can my hon. Friend tell me how many staff are now employed across the eight Departments based at the Darlington Economic Campus? What progress is being made on naming the new building “William McMullen House”?

[Gareth Davies]

I can tell my hon. Friend that 750 staff are employed across all Departments at the Darlington Economic Campus. The Treasury’s aim is to reach 355 full-time staff by March 2025, and we are on track to meet that target. The official name of the campus will be decided closer to the 2025-26 delivery date and will be consulted on by the Government Property Agency, but we have heard very clearly his suggestion of William McMullen House, and we will consider that in due course.

Oral Answers to Questions

Debate between Gareth Davies and Peter Gibson

Tuesday 14th November 2023 Commons Chamber

[Peter Gibson (Darlington) (Con)]

I thank the Exchequer Secretary to the Treasury, my hon. Friend the Member for Grantham and Stamford (Gareth Davies) for his recent visit to Darlington, where he opened a new branch of Darlington Building Society. He will know from that visit the impact that Treasury jobs are having locally, including an additional £80 million of spending in our local economy. Does he agree with me that Darlington Economic Campus is a fantastic levelling-up project, ensuring that people can stay local but go far?

[Gareth Davies]

It was a great pleasure to visit my hon. Friend and open the Darlington Building Society in his town, a very prominent business that is important for in-service banking facilities. The Darlington campus is an important part of our Treasury levelling-up agenda and long may that continue.

Approved Mileage Allowance Payment Rate

Debate between Gareth Davies and Peter Gibson

Monday 3rd July 2023 Westminster Hall

[Gareth Davies]

That is a fair question. I assure the hon. Lady that an extensive review is taking place, which takes into account a range of factors, but a big part of it is engagement. We have engaged extensively with various industries and unions, and we will continue to do that around the fiscal event cycle, as I have said. All taxes remain under review.

I have magically received an answer to the hon. Lady’s earlier question: between 1.8 million and 2.1 million people use their own vehicles for business travel, and 200,000 employees claim mileage allowance relief. That is 40% of all those entitled to it. I hope that answers her question.

I am coming to the end of my remarks, but I want to ensure that I address as many points raised as possible. My hon. Friend the Member for Waveney made points about the importance of NHS staff, and I want to put on record my thanks to all NHS workers who use their own cars. I entirely agree with the emphasis he put on the importance of those workers to our society. I stress that paying the AMAP rate is voluntary. It is up to the NHS as an employer to determine expense rates. Travel cost reimbursement is covered by NHS terms and conditions, jointly agreed between trade unions and the employer. As my hon. Friend the Member for Darlington (Peter Gibson) pointed out, as of January 2023, the NHS increased its rate above the AMAP rate to 59p for cars up to 3,500 miles, in recognition of the fact that a number of NHS workers travel a shorter distance.

[Peter Gibson]

I am grateful for the clarification. Will the Minister clarify why it is right and fair for that scheme to apply in the NHS, but not outside it?

[Gareth Davies]

As I said, the scheme is voluntary. Any organisation can apply a higher rate than the AMAP rate, and the NHS has chosen to do that. If my hon. Friend believes that other organisations should offer a higher rate, that is something he should take up with them.

[Peter Gibson]

I am grateful to the Minister for giving way again. Will he outline what tax consequences there would be if an organisation chose to take those higher rates?

[Gareth Davies]

If a rate is provided that is above the AMAP rate, national insurance and income tax would be applied to that difference, depending on the personal circumstances of the individual—for example, depending on the overall amount of income tax they pay, or whether they are over the personal allowance amount. Voluntary organisations, which my hon. Friend spoke about, can offer any rate they want, as I pointed out to my hon. Friends the Members for Waveney, and for Carshalton and Wallington. So long as evidence is shown for the journeys, organisations do not have to use the AMAP rates. I hope that clarifies things.

In conclusion, it is ultimately for employers to determine the expenses paid in respect of motoring costs that employees incur with their private vehicles. The Government set AMAP and simplified expenses rates with the aim of creating administrative simplicity. Those rates will necessarily be more appropriate for some motorists than others. However, the Government have taken decisive steps to support households with the costs of living, which I have extensively set out. The Government will continue to keep AMAP and simplified expenses rates under review, as they do all taxes and allowances.

Oral Answers to Questions

Debate between Gareth Davies and Peter Gibson

Tuesday 20th June 2023 Commons Chamber

[The Exchequer Secretary to the Treasury (Gareth Davies)]

We have a world-leading track record on net zero, but we must balance that correctly with who bears the cost. Critical to the nature of the right hon. Gentleman’s question is mobilising more private capital, and we are making great strides on that front.

[Peter Gibson (Darlington) (Con)]

Can my hon. Friend update the House as to when we will see spades in the ground on the Brunswick site in Darlington for the Darlington economic campus?

[Gareth Davies]

My hon. Friend is a great champion of Darlington, and Darlington’s economic campus is a critical part of levelling up. The Government Property Agency has been working hard to finalise commercial negotiations. I would be happy to write to my hon. Friend when I have a more substantive update.

Taxis and Private Hire Vehicles (Disabled Persons) Bill

Debate between Gareth Davies and Peter Gibson

3rd reading
Friday 18th March 2022 Commons Chamber

[Gareth Davies]

My hon. Friend makes an excellent point, and I pay tribute to Apollo Taxis, just as I did at the beginning to all those taxi firms in Grantham and Stamford constituency.

I also welcome the national disability strategy, which has already been referred to by one of my hon. Friends and is the first cross-Government effort to improve the everyday lives of disabled people. Again, I praise this Government for the efforts they are making, particularly the disability Minister, who has taken to her brief with great passion and motivation. However, there is clearly an issue, which this Bill is seeking to address. Many disabled people face discrimination when it comes to taxi services, whether that is outright refusal of service, over-charging of passengers, or a failure to provide assistance. None of that should be happening; it is completely and utterly unacceptable. To the point of my hon. Friend the Member for Aylesbury (Rob Butler), only 58% of taxis and 2% of private hire vehicles are wheelchair-accessible, which is in stark contrast to buses of which, thanks to the national bus strategy, 99% are accessible to disabled people, so that gap needs need to be filled.

As mentioned by my hon. Friend the Member for Bassetlaw, the Government’s 2018 inclusive transport strategy aimed to support the creation of an inclusive transport network and highlights the inconsistent application of the Equality Act 2010 to taxis. I am delighted that this Bill seeks to address that inconsistency by preventing taxi drivers from refusing a journey, by requiring drivers to assist disabled people, and by requiring local licensing authorities to maintain and publish a list of wheelchair-accessible taxis. The point made by my hon. Friend the Member for Darlington (Peter Gibson), backed up my right hon. and learned Friend the Member for Kenilworth and Southam, about transparency and having a register is important, and I hope the Minister is listening.

[Peter Gibson]

I am grateful to my hon. Friend for sharing those statistics. Just 58% of taxis being accessible to disabled users masks the fact that such vehicles are not evenly spread throughout the country. I imagine that many of them are based in here in London, and constituencies such as ours, some distance from London, do not have the requisite number of accessible vehicles. I also thank my hon. Friend for mentioning the register, which I raised earlier.

[Gareth Davies]

Again, I am grateful to my hon. Friend. It is worth highlighting my second statistic: 2% of private hire vehicles are wheelchair-accessible. In a rural area such as Lincolnshire, where I am from, we do not have that many taxis—London has the bulk of them, as my hon. Friend points out—so 2% is an astonishing and, frankly, disturbing figure. That highlights why it is so important that my right hon. and learned Friend the Member for Kenilworth and Southam has brought this Bill to the Chamber today.

This Bill, this initiative and, indeed, this debate with its many contributions from Conservative Members will be met with great appreciation in my constituency. I pay tribute to the Grantham Disabled Children’s Society, run by the incredible Darryl Blair and his team of volunteers, who do so much for disabled children in Grantham. I have spent a lot of time with the organisation, and Darryl in particular, and it does fantastic work to make the lives of disabled children across Lincolnshire a lot easier. He will welcome my right hon. and learned Friend’s efforts today.

If the House will indulge me, based on conversations with Darryl and the Grantham Disabled Children’s Society I will touch on two important related issues facing disabled people in Grantham and Stamford that are close to my heart. First, while we are talking about taxis today, some disabled people—about 4.2% of the population according statistics I have read—hold a blue badge pass, but many report growing issues with non-passholders incorrectly using disabled parking spaces at petrol stations, supermarkets and other venues or, unbelievably, just abusing them, which I have seen happen on countless occasions. Of course, I appreciate that not all disabilities are visible, but Government statistics show that blue badge theft and misuse is a real problem. In 2021, 4,396 badges were stolen, and the most common reason for prosecution for the misuse of blue badges was when someone uses somebody else’s badge following some undetermined action.



Even if disabled people can get around, my second point is that when they get somewhere, there are insufficient places for changing and bathroom facilities. I have spent a lot of time looking at changing places, and I was shocked to learn that in my constituency and across Lincolnshire we have very few changing place facilities for disabled people. I support our local district council in its wish, and the bid it has put in to the Government, to put in place a changing place facility in each of the three towns I represent, Grantham, Bourne and Stamford.

It is right that we debate this subject and that we put on record our thanks to our taxi drivers across our constituencies, while also recognising that much more needs to be done to level the playing field for disabled people. This is an incredibly important Bill, which has my full support and, I am pleased to say, the support of many across the House. The Government have an important role to play in levelling the playing field; I appreciate all the efforts they have made, but we should never be complacent.