Growing the UK Economy

Gavin Williamson Excerpts

Wednesday 29th January 2025 Commons Chamber

[Darren Jones]

My hon. Friend knows that I am not let out of the Treasury often, but when I am I will be delighted to visit. These are classic examples of how, by working together with private investors and local businesses to co-ordinate investment on road junctions, rail, housing developments or even football stadiums, we can get to a point where we can unlock economic growth for people and improve their communities. We are absolutely interested in looking at all those opportunities.

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

What assessment has the Treasury made of whether the increase in employers’ national insurance contributions will increase or decrease business investment?

[Darren Jones]

The right hon. Member is inviting me to speculate on the OBR forecast, which will be presented to the House on 26 March.

Oral Answers to Questions

Gavin Williamson Excerpts

Tuesday 21st January 2025 Commons Chamber

[James Murray]

As I have set out, the UK CBAM will mitigate the risk of carbon leakage by placing a carbon price on some of the most emissions-intensive industrial goods imported into the UK, including in the iron and steel sector. The UK CBAM is designed for the UK context, and in some areas, its emissions scope is wider than the EU CBAM—in respect of indirect emissions, for instance. The first CBAM industry working group was held earlier this week, and I understand that a representative of the UK steel sector attended. I will make sure that my officials continue to engage with the industry sectors most affected, and I am very happy to discuss this further with my hon. Friend.

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

Heavy industry, whether it is steel, ceramics or so many other areas, is totally dependent on low energy costs. The trajectory is that energy costs are rising, especially in industry, whether as a result of regulation or world markets. Many other countries are doing more to protect their heavy industries by making sure they can have low input costs for energy. What more can the Minister do to protect our heavy industry in the future?

[James Murray]

The No. 1 thing for industry and households is to bring down the cost of energy. That is why we are investing in renewable home-grown energy for the future, to make sure we have energy independence, energy security and, crucially, lower bills for those households and businesses.

UK-China Economic and Financial Dialogue

Gavin Williamson Excerpts

Tuesday 14th January 2025 Commons Chamber

[Rachel Reeves]

I will always stand up for Britain’s national and economic interest, which is why I am helping some of our best businesses to export around the world. That is what I did in China at the weekend, and it is what I will continue to do. I will always stand up for our economic interest.

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

Has the Chancellor of the Exchequer spoken to the Governor of the Bank of England about what action needs to be taken to bring about stability in our bond markets?

[Rachel Reeves]

I regularly speak to the Governor of the Bank of England; indeed, he was with me on the delegation to China this weekend. We work closely together to ensure that the British economy remains competitive in global markets.

Farming and Inheritance Tax

Gavin Williamson Excerpts

Wednesday 4th December 2024 Commons Chamber

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

The hon. Gentleman has made an important point, but analysis will show that over a 10-year period, 99% of the profit from the average 350-acre arable farm owned by a couple will go back towards paying inheritance tax. That does not leave enough money for them either to invest or to live. I wonder how the hon. Gentleman thinks they can deal with that.

[James Murray]

I have confidence in the way in which we have calibrated the policy. As I said to the right hon. Member for Salisbury (John Glen), it has balanced the need to retain significant, generous provision of inheritance tax relief for family farms with ensuring that, at the same time, we fix the public finances in the fairest way possible.

--- Later in debate ---

[Jon Pearce]

No. The message from this Government is that we are committed to farming, and to making it profitable and sustainable. That has to be the message that we send out to those young farmers.

There is no doubt that farmers in my constituency have been struggling terribly for the past 14 years, working seven days a week, 12 hours a day, for very little reward. The last Government promised them the earth, but left them in the sheep dip. After all the Brexit promises, what they got was the Leader of the Opposition selling them out in trade deals with New Zealand and Australia. Boris Johnson promised farmers that subsidies would stay at 100%, but then the Government phased out the basic farm payment. The Opposition’s incompetence saw farmers miss out on £358 million that could have been in their back pockets when they desperately needed it, and then came Liz Truss. Her mini-Budget and all those unfunded tax cuts—a point that I will return to—crashed the economy, causing interest rates to rise and driving many farmers to the brink. Over 12,000 farmers and agricultural businesses were lost under the last Government, so we will not take any lectures from the Opposition about the farming industry.

[Sir Gavin Williamson]

The hon. Gentleman has 428 farms in his constituency. How many of those farmers will thank him for supporting the Government today?

[Jon Pearce]

I live in one of the rural villages and speak to the farmers in my villages all the time. The fact is that those farmers voted for me because they were so let down by the last Government.

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[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

Staffordshire is the largest dairy-producing county in the midlands and across the county we have 9,600 people working on farms. Four hundred and thirty-two of those farms are in my constituency, and they are an incredibly important part of the fabric of the area. So many of my constituents who listened to the Budget were genuinely shocked. They were shocked because they took it at face value when the Labour party said that there would not be any changes in inheritance tax for agricultural land. They listened and they believed.

I know—I always like to believe the very best of people—that the Ministers on the Front Bench from the Department for Environment, Food and Rural Affairs would have fought for that position, but this policy was a diktat from the Treasury. In my experience, there is a tendency for the Treasury to do that to many Departments. That diktat has meant a change in position, and one that has a severe impact on many people’s lives. If there were a factory in Staffordshire employing 9,600 people and its future viability was in jeopardy, Ministers would be rallying to its support. Members across the House would be saying, “Let us do something to save these jobs and save these livelihoods.” But that is not the case here.

[Josh Fenton-Glynn]

Will the right hon. Member give way?

[Sir Gavin Williamson]

I will, of course, give the hon. Gentleman the opportunity to burnish his potential to be that Parliamentary Private Secretary in DEFRA that I know he is so desperate for on any occasion.

[Josh Fenton-Glynn]

Why is the right hon. Member so dismissive of DEFRA, which is a fine Department whose work those of us who believe in the countryside value? I wonder why he was not so loud when 875 agribusinesses in his region closed in the last 14 years.

[Sir Gavin Williamson]

All the while I have been a Member of Parliament, I have fought for my farmers, and I will continue to do so.

I invite the Minister for Food Security and Rural Affairs to the next Staffordshire agricultural show as my guest. I will happily take him around, and he can look for farmers who are in favour of the Government’s policy. He can talk to my farmers. There are 446 farmers in the Stafford constituency, which neighbours my own, who I imagine will have a very similar view to that of farmers in my constituency: that this policy will put them out of business. If I take the Minister around the Staffordshire agricultural show, he might meet some of the 351 farmers from the neighbouring Lichfield constituency. Let him see how many of them believe that his policy will help them to grow their businesses.

A family business, whether it is a farm or a manufacturing business, invests not just for five years but for a generation and more. The Government’s policy will drive large financial institutions to own much more of our land—not local farmers who are invested in the community and care about the villages and towns that serve them. This policy is already having an impact. Many businesses that supply farmers are already seeing a significant drop-off in orders, whether it is people who supply agricultural machinery, people who supply seed or many more. I urge the Minister, who I believe comes to this House with a good heart, to look at the wider impact that the policy will have on our countryside, and at how it can be changed and improved.

The Labour party says that it wants to capture the large landowners—the James Dysons. I have a great deal of confidence that such people will be able to find different arrangements that mean that their wealth will never be touched, but many small farmers, who have worked hard all their lives to build something that they can hand on to their children, will be impacted. I fear for them, and I urge the Government to put the dogma of party politics to one side and really think of the impact that the policy will have on the lives of so many farmers who are trying to do the right thing for this country and our countryside.

--- Later in debate ---

[Sir John Hayes]

rose—

[Sir Gavin Williamson]

rose—

[Daniel Zeichner]

Opposition Members have had a lot of time to make their points. I am going to make mine. Would Conservative Members have been so interested during the last Parliament? I remember sitting on those Opposition Benches hour after hour on the rare occasions when there were rural debates. They had no interest then; suddenly now.

Oral Answers to Questions

Gavin Williamson Excerpts

Tuesday 3rd December 2024 Commons Chamber

[Rachel Reeves]

Stoke-on-Trent has a proud industrial history and some beautiful buildings. My hon. Friend makes an important point—I will raise it with colleagues at the Ministry of Housing, Communities and Local Government. The £500 million boost to the affordable homes programme also allows up to 10% of that delivery to come from acquiring existing homes. Social landlords, including some local authorities, can bid for funding to bring empty homes back into use for social housing.

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

Many of my constituents have benefited over many years from the right to buy their council homes and social housing, which has given them an important step on to the ladder to home ownership. The discounts in Staffordshire are going to be cut to £16,000. I do not doubt that the Chancellor, like me, wants to help as many people as possible on to the path to home ownership. Will she pledge to review that decision with regard to the impact it will have on so many people, and look at restoring that discount in future?

[Rachel Reeves]

As the right hon. Gentleman will know, home ownership fell under the previous Government. We are determined to turn that around and ensure that more people, particularly families, get on to the housing ladder. As he has confirmed, the right to buy discounts will continue, but in future every penny of that money will go back into building new social housing, so that more people can have a home of their own and a roof over their head.

Winter Fuel Payment

Gavin Williamson Excerpts

Tuesday 10th September 2024 Commons Chamber

[Chris Murray]

Sorry, I will not give way, I must make progress. Thirdly, we must look more broadly at all the challenges that older people face. Waiting lists are appallingly long. Older people in my constituency can wait 18 months for a hip replacement; others spend their life savings on private healthcare. I understand that people are concerned, but we do people no favours by pretending that tough choices do not exist. Delaying that decision only leads to tougher, less enviable choices ahead.

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

rose—

[Chris Murray]

Let me make progress. If the House wants to understand tough choices, look no further than my home of Scotland. Despite having higher public spending and higher taxes than the rest of the UK, our pensioners face the longest waiting lists on record. Today, the SNP will oppose means-testing the winter fuel allowance in Westminster, while bringing in its means-testing in Scotland. That is not to clean up the mess that the Tories left them, but to clean up their own mismanagement of Scottish finances. We can do better.

In taking this step, we must recognise that the country has changed since the winter fuel allowance was introduced. Today, when I look around my constituency, I see that age is no longer the main factor in whether someone can afford to heat their home. It cannot be right that we continue to give the wealthiest pensioners £300 a year. As society changes, we must adjust. We do today’s pensioners a better service by targeting those who need help the most.

--- Later in debate ---

[John Slinger]

I thank the hon. Gentleman for his intervention. I say to him and his constituents that the Government are making every effort to ensure that vulnerable pensioners and pensioners who need pension credit receive it. We are sticking by the triple lock to make sure that pensioners are better off year on year, and I am glad and proud that we are doing so.

[Sir Gavin Williamson]

Will the hon. Gentleman give way?

[John Slinger]

I will make some progress, if I may. I have already taken two interventions.

This Government are choosing to move on from the terrible choices of the previous Government. We are choosing a stable, strong economy that will benefit all of the people of this country—all demographics in all regions, the next generation and definitely pensioners.

--- Later in debate ---

[Sir Gavin Williamson]

In Stone, Great Wyrley and Penkridge, over 19,600 pensioners are going to lose their winter fuel payments. Of course, so many of them are incredibly proud and do not want to apply for additional benefits, and so many will be just outside of being eligible. The decisions of this Government are condemning them to a cold and incredibly hard winter.

[Dr Hudson]

My right hon. Friend is exactly right that many people are too proud to claim these benefits, and that many people are just above the cut-off point. These people have been portrayed by some Labour Members as rich and able to deal with it, but that is not the case.

I am proud that our Conservative Government not only provided winter fuel payments, but extensively supported older people and the country through difficult times during the pandemic and the effects of the war in the Ukraine and, very importantly, that they honoured the Conservative triple lock, meaning that pensioners got the pension increases they deserve.

I am also proud that my party is continuing to defend older people, including through the compassionate Conservative motion that triggered this debate and vote, and that I was proud to sign. The economic decisions we make speak volumes about our values as a society and a country. How the Labour Government respond to this debate on winter fuel payments, and how they respond in the upcoming Budget, is their chance to show where their values truly lie. This Government need to confirm that, now and in the upcoming Budget, their need to save money will not come at the expense of older people and the financial support they need.

This Government really need to think again about their move to cut winter fuel payments, for the sake of the millions of older people who need them and for the implications it will have. If Labour chooses to continue with this heartless policy, my constituents and the constituents of Conservative colleagues can be assured that my party and I will continue to stand up for our pensioners and will maintain our call that the winter fuel payment cut be reversed.

Finance Bill

Gavin Williamson Excerpts

2nd reading
Wednesday 13th December 2023 Commons Chamber

[Priti Patel (Witham) (Con)]

I praise and congratulate my right hon. Friend the Chancellor of the Exchequer on bringing forward the Bill. As we have previously discussed, it will implement the important measures set out in the autumn statement.

We have already debated some of the key measures that were included in the National Insurance Contributions (Reduction in Rates) Bill, which was considered in the other place yesterday. I do not want to go over the arguments on fiscal drag and lower taxes, as I have set out my views previously, but I commend the Government for bringing forward those measures quickly and in the right way, as they will go some way to easing the tax pressures the public are feeling.

My right hon. Friends on the Front Bench are well versed in my views on the tax burden, so I will not go on about how about I feel about that or measures we can bring in going forward. However, I would like to press them to ensure that we think about long-term provisions and that the next Finance Bill goes further by raising thresholds for income tax, including for higher-rate taxpayers, and for national insurance.

It is worth noting that in the Budget after the general election of summer 2015, the then Chancellor outlined plans to increase the tax-free threshold to the equivalent of 30 hours’ pay at the national living wage. The new £11.44 national living wage rate for 2024 commences in April, so if the tax-free threshold rose to cover 30 hours per week next year, that would equate to £17,000 to £18,000, rather than remaining at £12,570 through to 2028, as currently planned. I press my right hon. Friends to keep that under review—thankfully, all tax measures are under review—and to prioritise uplifts to those thresholds, because we believe in enabling people to keep more of their earnings.

At the same time, when we see GDP figures not growing as fast as they could, as we have today, it is important to focus on how we can grow the economy much more, and with that people’s incomes. We want to see more growth in those GDP figures, but they represent the impact of high interest rates and what they mean for inflation. High interest and inflation have placed a burden on businesses and households. The Bill outlines reductions in business taxation that are well timed and well placed but, as ever, they need to be kept under review. Businesses grow the economy by employing more people, which helps economic growth, and that is the space where we, as a Government and a country, want to be.

It will not surprise my right hon. Friends on the Front Bench that I wish to speak to certain clauses, as I have spoken about clauses on business taxes in the past. I want to focus on the provisions in clause 21 and schedule 12 of the Bill, on pillar two and the global minimum corporation tax measures that we are adopting. I have been on record about this previously, but the Minister is also well aware of my long-standing concerns over the implementation of pillar two measures. Binding ourselves to pillar two undermines our fiscal sovereignty and risks deterring investment into our country. I labour this point because we have just seen the publication of our GDP growth forecasts. Obviously there will be revisions in our growth forecasts, even by financial institutions, and we should be mindful of that, but this measure undermines our competitiveness. It is known that some 130 countries have signed up to pillar two, but, unlike the UK, barely a quarter of them are implementing it at the end of the year. Given our economic backdrop and GDP forecasts, I would rather see a delay in the implementation of this measure.

A written parliamentary answer earlier this month shows that just 30 countries are implementing this measure at the same time as we are. They will be followed by Japan in April, and then Guernsey, the Isle of Man, Jersey, Hong Kong and Singapore from January 2025. We also know that the US, our big economic ally, is not likely to implement the measure, so by pressing ahead with this fiscal measure, we are basically limiting the scope that we give ourselves—oxygen, basically—to develop and grow.

When the Finance (No. 2) Act 2023 went through Parliament last year, it contained more than 150 clauses, which were spread over two parts, with a further five schedules, covering 170 pages in total. Many of us remember carrying those weighty tomes into the Chamber and flicking through all the pages. There was a large and complex change in tax laws. But despite that legislation being passed in the summer, this Bill makes even further changes to pillar two and the domestic top-up levels. Clause 21 and schedule 12, which cover those changes, span 55 pages and include multiple amendments to the Finance (No. 2) Act passed only a few months ago. I recall saying that the amendments alone would generate more complexity to the system. I say politely to those on the Front Bench that the 55 pages here point to the complex nature of the matter. The fact that we are amending something that went through the House not that long ago says it all.

No impact assessment has been provided of these measures, which give effect to the accounting periods beginning on or after 31 December 2023. Companies and partnerships will be impacted by the changes coming into effect in less than three weeks’ time, even though the Bill will not receive Royal Assent until next year. We must be cognisant of the burdens that we are again putting on businesses. I am no fan of accountants, but by putting more burdens on to businesses, we are increasing their dependency on accountants and on process, which we should be freeing them from. I ask the Minister to provide us with further details as to why these changes are needed when the previous Finance Act was passed only earlier this year, and with an impact assessment of them.

I would like to understand the merits of the global minimum income tax, and I hope that, in the same way that all tax is under review, Ministers will consider removing all the provisions from our statute book in due course, because other countries will not follow suit or are delaying implementing some of these measures.

I wish to comment on clause 2, relating to research and development tax credits. It merges the current R&D expenditure credit with the small and medium-sized enterprises scheme. These tax credits help and support businesses to invest and take risks, and, importantly, to innovate and grow, set up jobs and employ people. I have previously raised the concerns that some businesses have about the complexity of claiming them and the processes that they experience. I am aware of many businesses that have spent more than a year having their claims investigated, with multiple rounds of questions and inquiries from HMRC officials. There are many live cases, which I will not reflect on now, but previous Treasury Ministers have committed to hold discussions on them.

[Sir Gavin Williamson (South Staffordshire) (Con)]

I thank my right hon. Friend for giving way. In Staffordshire, which is a manufacturing powerhouse, R&D tax credits are vital in driving productivity in manufacturing businesses. Does she agree that it would be good to hear those on the Front Bench make a commitment to reviewing and slimming down that scheme, so that it actually gets those small businesses embracing it and getting the investment that we need?

[Priti Patel]

My right hon. Friend is spot on. The scheme was set up for a very good reason, which is, effectively, to support entrepreneurism and innovation and to grow businesses. Now we are seeing those businesses saddled with bureaucracy and burdens. What is worrying is the number of small businesses that have been under investigation by HMRC for over a year, as that is now having a detrimental impact on their performance. As a representative not just of Witham, but of Essex as a whole, I can see businesses that have now come together to make wider representations to HMRC and the Treasury about that. I hope that those on the Front Bench will learn from some of these experiences and look at how we can evolve and adapt the process, so that the scheme can revert back to its original premise of supporting businesses. As I have said many times, the only way is Essex. Essex is a county of entrepreneurs and they are the ones who are feeling the pressures.

In his summing up, will the Minister outline the operational aspect of these changes? In particular, what interactions is he having with HMRC about some of the cases that have been under investigation for more than a year, and the impact that that is having on those smaller businesses? At the end of the day, they are SMEs that are not able to grow their businesses because of these inquiries and investigations. Naturally, that has an impact on the profits that they can then reinvest in their businesses.

I also wish to make a few comments on air passenger duty and the provisions in clause 24. Many of us in this House have spoken about air passenger duty for many years. I have been a long-standing campaigner for reform of this tax to encourage and support economic growth. It is ironic that we are having this debate on a day when the GDP figures have come out as they have. I believe in globalisation—in the sense of more global competition—and in our being more open to the world when it comes to those global dynamic markets.

We should also make travel more competitive and affordable for families, especially as they are struggling with the impact of the cost of living. Reforms that have taken place under previous Conservative Chancellors have been welcome. I query the small increase in the APD rates for 2024-25 in the Bill. Back in the summer, in his speech on net zero, the Prime Minister pledged to scrap plans for new taxes on flying, but the Bill provides for an increase in APD rates, ranging from 50p to £6 per flight. Although they are small increases, they are still increases. They are lower than the rate of inflation planned for and assumed in previous Government statements and OBR forecasts, which is to be welcomed. Therefore, any clarification on what is happening with APD going forward is welcome. Again, that is important for certainty and also for forecast purposes.

On the subject of air travel, I am disappointed that the autumn statement and this Finance Bill do not contain reforms to end the so-called tourism tax. I was one of the few Members to speak on that during the Humble Address debate. If we look at London, our great city, we can see that, at this time of the year, it is a magnet for tourism and for people coming from overseas. It is great for our businesses, great for our country and great for our brands—our British brands and our small brands. Our tourism sector and shopping and retail businesses are losing out to their European competitors as a result of the removal of the VAT refund and the VAT-free shopping and arrangements that had previously been in place. I think that we can reintroduce those measures. In the last debate, those on the Front Bench committed to looking at dynamic modelling in this area, and some external reviews of the potential revenue base. It would be a boost for business and jobs, and we should be looking at all measures to boost economic growth and competition. There are plenty of reports and studies out there. I do not want to labour the point; I know that those on the Front Bench will be aware of them.

It is winter, and we are heading towards a spring fiscal statement. Since 2010, the Government have consistently kept fuel duty down, cutting and freezing rates. This is an opportune moment to remind the public what the Government have achieved on that alone, because it is very important. Families, businesses and households depend upon it, and I very much hope that we will continue to stand up for the measures that we have put in place historically. I urge the Government to commit to maintaining the 5p reduction, and perhaps even to go further where there is fiscal headroom. Finding fiscal headroom is difficult, but sometimes—I say this as a former Treasury Minister—it can be found when we really look for it.

As the Bill passes through the House and is subject to further scrutiny, I know that my colleagues on the Front Bench and the Chancellor of the Exchequer, who is dedicated to dealing with the difficult fiscal challenges that we face, will be focused on unleashing future growth by reducing taxes and, importantly, empowering the very businesses that employ people and keep people in their jobs for long-term economic security.

Bank Closures: Stoke-on-Trent North

Gavin Williamson Excerpts

Wednesday 14th June 2023 Westminster Hall

[Jonathan Gullis]

The hon. Gentleman is absolutely right not only about the elderly, but about people who do not have online access, or have no desire to have it, or who do not understand the modern technology about which we have the benefit of learning in this day and age. Such people have a natural mistrust of online banking because they are fearful of scammers and the online hoaxes that have sadly become all too apparent in our criminal justice system. If the Barclays closure goes ahead, Stoke-on-Trent North, Kidsgrove and Talke will be left with just one high street bank, which is simply not good enough.

I am pleased to have secured the debate given the terrible news that Barclays has announced its intention to close the Kidsgrove branch on 11 August. That decision will leave that great town without a single bank and leave the community isolated from vital in-person banking services, which provide local people with reassurance and confidence with respect to their money, particularly during a cost of living crisis.

It is right to point out that digitalisation has transformed the way that families and businesses deposit, withdraw and save their money, and in Stoke-on-Trent we have been rolling out brand-new 5G broadband, which is increasing our connectivity, and which will undoubtedly make online banking more effective. The digital revolution means that banks are innovating, and Barclays points out in its argument for closing the branch that

“the way people bank today is unrecognisable from 50 years ago”.

However, it is of paramount importance that we do not let digitalisation exclude people in our community from banking services.

The services that bank branches provide are most important for vulnerable members of society, and closures impact them the most. One of my constituents, Dawn from Kidsgrove, told me that her father, who is an elderly customer, would find it “impossible” to travel to Crewe or to Hanley to visit a Barclays branch, that his deafness means he cannot use telephone banking, and that he is not confident enough to use internet banking.

As the Chief Secretary to the Treasury pointed out in the 2020 access to cash call for evidence:

“exclusion from banking services can have a detrimental impact on people’s lives. Whilst card payments and other payments services are becoming increasingly popular, the evidence shows that a significant proportion of the UK population continues to rely on cash in their day to day lives.”

The Financial Conduct Authority states that banks are expected to carefully consider the impact of planned branch closures on the everyday banking and cash access needs of their customers, and to take particular care for their most vulnerable customers.

I have launched a petition to save Barclays branch from closure, and it has nearly 450 signatures already. That shows the strength of local feeling that Barclays is not upholding its responsibility to look after its most vulnerable customers.

[Sir Gavin Williamson (South Staffordshire) (Con)]

I congratulate my hon. Friend on securing the debate. We are also facing the closure of a Barclays branch in Wombourne, which is going to have a devastating impact on the village, and on the access to banking facilities for many elderly people, as well as for businesses. Does my hon. Friend agree that it is time for Barclays to rethink? It is often the last bank in town, and we need that in order for our communities to thrive.

[Jonathan Gullis]

My right hon. Friend and Staffordshire colleague has been a fantastic champion for that great country for many years. He is entirely correct that there needs to be a rethink. It is starting to feel, albeit unintentionally, like Barclays has something personal against Staffordshire, with Kidsgrove, Newcastle-under-Lyme and Wombourne all facing branch closures. This has not been well thought through, particularly as residents may have to travel to Crewe or Hanley. That is not an easy journey for the constituents of my right hon. Friend the Member for South Staffordshire (Sir Gavin Williamson), as I am sure public transport connectivity is not what he would desire.

A journey to Crewe is a significant one even from the place I am proud to serve, particularly if households do not own a vehicle and rely on public transport that is not well connected to the surrounding north Staffordshire area and the Cheshire boundary. I hope that common sense will prevail here, and that Barclays will engage with my right hon. Friend, my hon. Friend the Member for Newcastle-under-Lyme and myself to talk about what can be done to help protect its customers in these difficult times.

One of my constituents, Ms Green, told me that

“many disabled people and pensioners will suffer”.

That makes me question whether Barclays is even complying with the FCA’s guidance. Crucially, 40% of over-65s—over 4 million people—do not manage their money online. That is because online banking is difficult to navigate and automatic telephone responses are monotonous and impersonal. A constituent wrote to me to say that they found telephone banking

“confusing and difficult to hear.”

A recent survey by Accenture illustrates that point, finding that 44% of over-55s would rather visit their branch. It also showed that in-person banking was also popular among over 20% of younger people.

Alongside the impact the branch closure will have on vulnerable people, it is impossible to underestimate the financial security implications of a lack of in-person banking. Since Barclays announced its closures, I have been inundated with correspondence from local people outraged that Kidsgrove is losing its last remaining bank. One constituent told me that they are “appalled” at the announcement, and that it will put the elderly

“at greater risk of getting scammed.”

Dr Daniel Tischer of the University of Bristol noted that,

“the danger of mass cyber-attacks... looms ominously”.

He also noted that there is a genuine risk of cyber-crime, scams and fraud. I am certain that the precedent set by bank closures will put people at greater risk, especially the most vulnerable in our society, who lack the digital awareness younger people have to spot clear signs of illicit financial activity. For those people, in-person banking with specialist advisers is crucial. By closing the branch, Barclays is putting people whom it has an obligation to support and protect at a much greater risk.

--- Later in debate ---

[The Economic Secretary to the Treasury (Andrew Griffith)]

It is a pleasure to see you in the Chair, Ms Nokes. I congratulate my hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) on securing this debate on a very grave matter that faces his constituents and many others across the country. I thank the hon. Member for Strangford (Jim Shannon), my right hon. Friend the Member for South Staffordshire (Sir Gavin Williamson) and my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell) for their contributions, which shows the depth of concern about this significant change.

There is strong feeling here. My hon. Friend the Member for Stoke-on-Trent North talked about his incredible 450-strong petition from local residents, which demonstrates the real concern of people in Kidsgrove, as well as his formidable capability in representing them and bringing the issue to the national stage. As a fellow local Member of Parliament, I have also focused on helping small high streets in my constituency. I understand the real concern that when an amenity such as a local bank branch closes, there is more jeopardy for the high street. My hon. Friend is quite right to highlight that. It is a credit to him and to Members who have supported him that he has secured that commitment from Barclays for a Barclays Local, which will be just a three-minute walk away from the current branch, offering the face-to-face service that people value so much, three days a week at Kidsgrove Sports Centre. That comes on top of the three free-to-use ATMs at which his constituents will continue to have free access to their cash, and the Post Office, which is doing a valiant job. As consumer patterns change, we often see the Post Office stepping in, and that is one of the things underpinning the continued fortunes of our post office network.

Although it is uncomfortable and difficult, we are seeing a very rapid change in consumer patterns. Local bank branches across the nation are getting fewer and fewer visitors. That does not mean that face-to-face banking is not vital, which is why there are so many regulations in place, administered by the FCA. It is also why it is so important that we all remain vigilant to ensure that the FCA does its job of challenging and pushing back when communities such as Kidsgrove are threatened by the loss of a bank branch, and why it is imperative that adequate alternatives are in place. I fall short of the Government stepping in and making commercial decisions for firms, and I think Members broadly understand why that might be the case.

[Sir Gavin Williamson]

My hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) set out the interesting idea of hubs working together, which is already being trialled. The Minister rightly says that there is commercial pressure on banks, and they are looking at a different model, but Government have a great ability to act as a convening power, bringing the major high street banks together to look at how they can co-operate and work together to ensure that communities such as those in Kidsgrove, Wombourne and Newcastle-under-Lyme are not excluded.

[Andrew Griffith]

My right hon. Friend, who exercised his great convening power and delivered great service to the nation, makes a very good point. This agenda is never far from my mind. Only last week, I visited the new banking hub in Acton to see how the Government and the sector are working together to bring forward viable alternatives, and it was impressive to see the range of services offered in a new community hub. I wish my hon. Friend the Member for Stoke-on-Trent North all the best with the regeneration project, and perhaps there could one day be a banking hub. For the time being, Barclays is seeking to mitigate the change that is happening.

Members may know that the Financial Services and Markets Bill, which has had its final day of debate in the House of Lords, will shortly be coming back to the Commons for a final time before being put on the statute book. I hope, that will happen within a matter of weeks, if not days. The Bill enshrines for the very first time a statutory right of access to cash—free cash, no less—working with the LINK network and with UK Finance, convened by the Government. That is one of the ways that we seek to underwrite this, and I understand that it is underwriting; it is not the full provision that every colleague seeks.

As my hon. Friend the Member for Stoke-on-Trent North said, we have to be very mindful of the vulnerable. The Government are committed to cash. It is not the Government’s policy to seek to extricate cash entirely from the system. It is very important to underwrite it for those who are vulnerable, those who have some sort of impairment or simply those who manage their finances through cash.

We have made significant interventions through that Bill—the great clunking force of law—to ensure that our constituents can continue to have access to free cash and, potentially more importantly, although it does not show up as much in our inboxes, that businesses can continue to have access to deposit cash. If they do not have that really important part of the supply chain, businesses will find it more onerous to accept cash, and we will not have the ability to pay with cash.

There is a range of alternatives in place. My hon. Friend is right to have secured this debate on behalf of his constituents and others.

Autumn Statement

Gavin Williamson Excerpts

Wednesday 5th December 2012 Commons Chamber

[Mr Osborne]

Capital spending is higher than the level in the plans that we inherited from the last Labour Government. That is simply the case. We inherited big planned cuts in capital spending, and we have increased capital spending, off those plans. We have that new money for schools, and I would hope that the hon. Lady would welcome that.

[Gavin Williamson (South Staffordshire) (Con)]

Can my right hon. Friend confirm that someone earning £10,000 who would have paid £1,180 in national insurance contributions and income tax in 2010-11 will pay £380 in 2013-14? Does that not show that Government Members support people and families on low incomes, unlike the Labour party?

[Mr Osborne]

My hon. Friend speaks very powerfully about the way in which we have helped people. We have helped basic rate taxpayers by increasing the personal allowance, we have taken 2 million of the lowest paid out of work, and we have halved the income tax bill for people on the minimum wage; but, above all, we have helped working families throughout the country with a further income tax cut today.

Oral Answers to Questions

Gavin Williamson Excerpts

Tuesday 6th November 2012 Commons Chamber

[Chris Skidmore (Kingswood) (Con)]

2. What fiscal steps he is taking to encourage job creation in the private sector.

[Gavin Williamson (South Staffordshire) (Con)]

8. What fiscal steps he is taking to encourage job creation in the private sector.

--- Later in debate ---

[Danny Alexander]

Yes, I certainly will. [Interruption.] I know the Opposition do not like to hear this, but my hon. Friend is right to highlight the good performance of the British labour market and the facts that the private sector has created more than 1 million new jobs in the last two and half years and that there are more people in employment in this country than ever before.

[Gavin Williamson]

Under the Labour Government, we lost 65,000 private sector jobs in the west midlands. In stark contrast, since 2010 my constituency alone has already secured £400 million in investment. What more will my right hon. Friend do to secure private sector jobs in South Staffordshire and the west midlands?

[Danny Alexander]

My hon. Friend is right to say that the Labour party’s record on encouraging the private sector was at its most catastrophic in the west midlands, for which the figures he gave are absolutely correct. That is why another £124 million of funding for projects in the west midlands was announced in round three of the regional growth fund and why we are providing additional support for the automotive sector, which is so important in his constituency and region. Of course the improved climate for business, the removal of regulations and the funding for apprenticeships will benefit businesses in the west midlands, as well as in the rest of the country.