Budget Resolutions
Gregory Campbell Excerpts(4 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Jonathan Reynolds
I ask the right hon. Gentleman to look at the detail of our plans. From the data held by the Treasury, we can plan for how many firms will be affected, and it is a very small number. In most cases, given the existing inheritance tax nil-rate band, especially where property is involved or where there is a transfer from one spouse to another in the inheritance chain, the allowance is so great that it is already considerably in excess of the average claim for relief in this area.
The right hon. Gentleman is talking about a very small number of firms at the very large end. I think the revenue can be raised in a way that protects the kind of family firms he and I want to see continue to thrive. We all know there are cases where, for instance, people advertise the sale of agricultural land or certain types of investments specifically to avoid inheritance tax, which is not right. That is not good for business. We have to recognise that these fair and proportionate changes will pay for the last Government’s spending commitments. The changes will always have a benchmark for international competitiveness, in a way that the right hon. Gentleman should recognise rather than scaremonger.
At the Budget, as a statement of intent for our new industrial strategy, we saw the Chancellor make the first of many down payments with multi-year funding commitments for these areas of our economy. There will be significant tax relief for our world-leading creative industries, up to £0.5 billion for a brand-new life sciences innovative manufacturing fund, and nearly £1 billion for our aerospace sector to fund vital research and development into jet zero technology, which will boost industries in the east midlands, the south-west and Scotland. There is also £2 billion for our automotive sector, ensuring that the next generation of electric vehicles are designed, developed and built right here in the UK.
At the same time, we recognise that our industrial strategy’s success rests upon working in partnership with mayors and multinationals, councils and CEOs, unions and academics. That is why this Government are championing local growth plans—growth plans for the long term—to be delivered by strong local political leadership, which will work together with the Government to create the right conditions for success.
Crucially, our new industrial strategy will be international from the start, taking learnings from the best of what has been achieved globally so that we enable businesses of all sizes and sectors to thrive in our market. To that end, it will work in lockstep with our trade strategy and our twin-track approach to trade, acceding to the comprehensive and progressive agreement for trans-Pacific partnership and negotiating deals with the Gulf Co-operation Council and India, all to the benefit of British business.
Unlike the previous Administration, we are also making it much easier for UK firms to do business in and with Europe. Although the Opposition might not want to hear it, the EU is not just our closest trading partner but is still our largest trading partner, by quite some margin, yet the previous Government’s adversarial approach to working with the EU—all that incendiary rhetoric—was not conducive to good business. We are changing course, aiming to remove unnecessary barriers to trade, so that British companies will be able to operate more easily in France, Germany, Italy and across Europe.
We are making real progress. Earlier this month, the Prime Minister and the President of the European Commission issued a joint statement to deepen our co-operation on the economy, energy and security. We have agreed to regular EU-UK summits to strengthen our connections in all those areas, including the close business and investment ties that connect our economies.
Mr Gregory Campbell (East Londonderry) (DUP)
On the sectors that will benefit, does the Secretary of State agree that the hospitality sector would benefit more from some honesty and openness? The Government announced a 6% increase for people on the minimum wage, many of whom are employed in the private hospitality sector, but while our constituents will pay for that, the Treasury will benefit by hundreds of millions of pounds, because almost all those minimum wage earners will become taxpayers overnight.
Mr Reynolds
The hon. Gentleman should recognise that the Chancellor did not make an announcement on personal tax thresholds, which, for some Conservative Members, was unexpected and reflected the difficult inheritance of the new Government. Labour Members are proud of the minimum wage, now called the living wage, which has been one of the most successful policies in the history of this country—and even some Conservatives claim credit or support the measure as a policy innovation.
There is no doubt about the burden on the hospitality sector, because if the living wage goes up for people employed in it, that is a business cost. We have to acknowledge that. What those businesses fundamentally need are customers who have some spending power to use their disposable income in those places. The rise is not without benefit, but I recognise that it is painful.
The future for this country, however, cannot be as a low-wage, low-productivity economy that does not give people the living standards they want. I have been on television many times talking about the stagnant wages of the last Government. I want wages to be higher. The doubling of the employment allowance in the Budget recognises the burden on those types of businesses, which can now employ up to four people on the living wage without any national insurance liabilities at all. We have to have a system that accommodates those burdens, but fundamentally this Government are in favour of higher wages, and we are not going to pull away from that in any measure.
Pub and Hospitality Sector
Gregory Campbell Excerpts(1 month, 1 week ago)
Westminster HallRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Mr Peter Bedford (Mid Leicestershire) (Con)
I beg to move,
That this House has considered support for pubs and the hospitality sector.
It is a pleasure to serve under your chairmanship, Ms Vaz. I apologise for my hoarse voice; I can assure hon. Members that it is not as a result of the overuse of pubs and similar venues in my constituency over the weekend.
Over recent months, I have had the privilege of visiting several hospitality venues in my constituency. I think particularly of the Curzon Arms in Woodhouse Eaves, which I reopened over the summer recess; the Forge Inn in Glenfield; the Stamford Arms in Groby; and the Coach and Horses in Markfield, which I have got to know over many years as the local councillor. I thank the many hon. Members who have turned up this morning; the debate is clearly of great interest.
The pub and hospitality sector has long been at the heart of the British economy. From the small countryside pub to big inner-city restaurants, the sector provides countless social and economic benefits for the United Kingdom. It is essential that we understand the challenges faced by the industry and do our utmost to support it to flourish.
The sector provides countless economic benefits to the UK as a whole. It contributes £140 billion in economic activity and provides £54 billion in tax receipts to the Exchequer. In fact, pubs and breweries contribute a whopping £18 billion in taxes to the UK economy.
Mr Bedford
If the hon. Gentleman could give me a few moments, I will carry on. The success of UK plc is intrinsically linked to the success of the leisure and hospitality sector. The hospitality sector is a key employer throughout the UK, employing 3.5 million people, many with flexible working arrangements. It is vital for our younger people. As of this year, 51% of 16 to 24-year-olds are employed in the sector, and that plays a crucial role in developing their careers.
In my maiden speech, I stated that social mobility, particularly through apprenticeships, is key to creating a fairer and more just society. Many businesses in this sector offer apprenticeship schemes. Is it not great that someone can start as a trainee, a pot washer, and end up running an entire business? I think that should be applauded.
The sector also provides many social benefits. Hospitality businesses play a crucial role in encouraging socialising. In a country where many, particularly the elderly, often feel isolated and alone, community pubs often provide a place for people to come and feel part of broader society.
I have spoken with local independent brewers in Leicestershire, in particular Everards, and we should also recognise the significant charitable contributions of community pubs. In Leicestershire, 153 independently-run pubs raise more than £1.5 million locally for local charities, which is reinvested in local communities to make them even greater places to live and work. That is invariably why 72% of British adults believe that pubs have a positive impact on the communities that they serve. I take the opportunity to celebrate the positive impact that the hospitality sector has in my constituency. In Mid Leicestershire, our 41 pubs cumulatively support more than 2,000 jobs and contribute £19 million to the Treasury.
However, as we are all aware, the industry has faced many challenges over recent years. What makes the sector so successful is its incredible resilience. There have been many challenges: the covid-19 pandemic, the conflict in Ukraine and various geopolitical challenges have sent input costs spiralling high. The pandemic saw the hospitality industry suffer the biggest economic decline of all sectors. Economic output in the sector between 2019 and 2020 decreased by 42%, and we lost 10% of hospitality businesses during the pandemic. However, industry experts recognise the support that the last Conservative Government offered the industry through the eat out to help out scheme, a temporary cut to VAT and furloughing more than 2.1 million jobs, which limited the impact of the pandemic.
There have also been significant global challenges. The sector’s resilience has been displayed throughout the ongoing cost of living crisis brought on by world events.
Steel Industry
Gregory Campbell Excerpts(1 month, 2 weeks ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Jim Shannon (Strangford) (DUP)
It is a pleasure to serve under your chairship, Mrs Harris. It seems like only a few minutes ago that you were chairing the last debate yesterday in Westminster Hall, and here you are again. I commend you on your perseverance and obviously on the fact that you do not need any sleep at all to look fresh and well—well done.
First, I thank the hon. Member for Boston and Skegness (Richard Tice) for leading today’s debate. As he always does, he set the scene in a very admirable way, underlining his concerns, which many of us in this Chamber share as well. There is no doubt that this is an incredibly important debate not just for myself but others, and we need to discuss these matters.
Looking at the steel industry in the UK over the years, it dates back as far as the 17th century when steel production was initially established. Steel was traditionally used for larger projects such as bridge building and weight-bearing items like rail tracks—the hon. Member referred to the trains and rails in India. In 2020, steel contributed some £2 billion to our economy and was responsible for 0.1% of the total UK economic output. Jumping forward to 2023, the latest reports show that UK steel production and demand plummeted to new historic lows of 5.6 million tonnes and 7.6 million tonnes respectively, which fall well below the levels seen at the peak of the pandemic in 2020. That is unfortunately quite discouraging.
I should have said at the start, and I apologise for not doing so, that it is nice to see the Minister in her place—I wish her well. She was telling me earlier in our conversation on the way to the hall that she has dual responsibilities. I very much look forward to her response to our inquiries. Everybody’s wish in this Chamber is to see the steel industry secured. It is also nice to see the shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith), in his place, and I look forward to his constructive contribution.
Mr Gregory Campbell (East Londonderry) (DUP)
In the positive tone my hon. Friend is adopting, and maybe in a light-hearted sense, would he agree that a man yesterday showed considerable backbone, of real steel: Michael O’Neill, the Northern Ireland manager, who picked a team of under-21s and thrashed Bulgaria 5-0? That is a real backbone of steel and we need to see some positive results like that from this debate.
Jim Shannon
I am sure the Minister has many football skills. Last night one of the players, the young fellow Price, scored a hat trick—yes, it was an admirable victory. If everybody showed that backbone and strength of character, certainly we would be in a better place. I thank my hon. Friend—I know that was moving away completely from the subject matter but he nonetheless reinforced the point to be made.
Northern Ireland plays an important role in the success of the UK steel industry, although back in 2022 that was under attack from the damages of the Northern Ireland protocol and the outbreak of war in Ukraine. It was said at the time that steel exports from Northern Ireland could face up to 25% tax and tariffs, but it is good to report today that that has since been addressed by the Windsor framework. That is one of the positives that came out of that process: I wish there were more.
What springs to mind is the 1,100 steel businesses across all parts of the United Kingdom and the 33,400 jobs that hinge on them—we cannot ignore those; they are so important. We have seen recently the threats to job security due to decisions to close production in certain steel plants. Only two weeks ago, Tata shut down its blast furnace 4, which was the final furnace operating at the UK’s biggest steelworks in Port Talbot. That resulted in 2,800 job losses across south Wales, not to mention that Port Talbot was pivotal to steel construction in Northern Ireland. That is why, in debates on steel, we do not necessarily have to have a manufacturing base in our constituency to see the benefits. The benefits for us in Northern Ireland were quite clear: the steel produced in Port Talbot came to Northern Ireland.
The hon. Member for Boston and Skegness rightly raised concerns about the impact that our net zero advancements could have on the steel sector. It is crucial that we get this correct while ensuring a proper balance. Our defence industry relies heavily on domestic home-grown steel to build tanks and warships. That raises issues of us potentially relying too much on foreign imports, which the hon. Member referred. We should not ignore that, and our focus should be on providing incentives to the fantastic local companies we already have and putting them front and centre to the UK steel sector’s success. We must modernise to advance our steel industry and properly take care of it and get it right together.
We must also be able to source steel locally; doing so is of major importance for many industries across the United Kingdom, from aerospace and defence to boats and other transport. For us in Northern Ireland, the aerospace sector is very important.
I know the debate is not about this but I want to ask the Minister a question about Harland & Wolff that I had hoped to ask in Defence questions. Will the Minister give Northern Ireland Members some update on where we are with Harland & Wolff? During my discussion with the Minister about Defence questions on Monday, the Minister said, “Jim, ask this question and I’ll be happy to come back with an answer.” Harland & Wolff is really important, No.1, for the jobs it provides, but also for the connectivity that we have, with all parts of the United Kingdom coming together. Defence and aerospace are important for our manufacturing base in Northern Ireland, but also for the continuation of how we work better together.
I support our steel system. I want the best for it. We all want the best for it and I know that. I also hear and respect the concerns of other Members about its future. And there is no doubt at all that more needs to be done to preserve and protect it.
In conclusion, society will progress and changes will be made, but it is important that we remember the benefits that our steel sector brings to the United Kingdom economy. Moreover, there are the jobs that it provides for my constituents in Strangford and for people further afield—indeed, in all areas of this great United Kingdom of Great Britain and Northern Ireland. So, I sincerely look forward to hearing from the Minister and assessing what steps our Government will take to preserve our steel sector, and I have hope—much hope—that that action will allow for all of our nations to play their part together.