(1 week ago)
Commons Chamber
Gurinder Singh Josan (Smethwick) (Lab)
I am pleased that this Budget sets a clear priority to address the cost of living. More than 44,000 households in my Smethwick constituency will receive the £100 payment to help with their energy bills, and the business rates freeze will benefit 52% of retail, hospitality and leisure properties in the west midlands, including 1,198 properties in my constituency.
It is clear that decisions taken by this Labour Government, the current Chancellor and the previous Chancellor have been instrumental in keeping UK growth at the top end of growth in all G7 countries. Furthermore, in the past two years the Government have set out an ambitious programme of investment in key industries, including in nuclear energy, green energy and defence industries to name a few. Alongside that public investment, those industries will need crucial private investment to grow to their full potential. For that reason, I would have liked to see the restoration of the 30% up-front income tax relief for venture capital trusts, which was reduced to 20% at the last Budget, as that relief is vital in supporting British small and medium-sized enterprises in their early stages of development.
Venture capital trusts already support over 1,100 British companies, predominantly in tech sectors, employing over 100,000 people and generating £21.8 billion in revenue in the last year alone. Those businesses often have high up-front costs, long development cycles and uncertain terms that can make conventional finance difficult to secure. In 2006, when the relief was reduced from 40% to 30%, fundraising reduced by around 65%, and it took 16 years for it to recover. At last year’s Budget, the relief was reduced further from 30% to 20%, and as a result, industry estimates suggest a decline in fundraising of anywhere between 30% and 60%, which is equivalent to between £1.25 billion and £2.5 billion less growth equity for UK scale-ups over the next five years.
Restoring the 30% relief would incentivise investment in SMEs across the country to support Government investment. It would allow investment into firms that are crucial to the supply chains that will help to secure our place as a global leader, build our national resilience and deliver growth in every postcode. Every pound invested by VCTs unlocks an additional £2.33 in funding from additional sources. The Treasury has already shown a willingness to support small businesses. Indeed, last year the then Chancellor listened to the industry and implemented changes that it had been requesting for many years. I hope that the Treasury will consider restoring the relief to 30% as part of a wider industry strategy that supports our ambition for growth in every postcode.
(8 months ago)
Commons ChamberWe already have the fastest growing G7 economy in Europe thanks to the Chancellor, so I do not think she needs the hon. Gentleman’s advice.
Gurinder Singh Josan (Smethwick) (Lab)
In times of increasing division, there is no place for divisive rhetoric, and the Government clearly have a role to play in supporting cohesion. The Tories clearly failed in that respect; we have heard again of their inability to embrace the United Kingdom of today. I welcome the definition of anti-Muslim hostility. Racism against Muslims, Jews and people of all backgrounds, including Sikhs, is sadly increasing and needs to be tackled. Many hate attacks on Sikhs are recorded as Islamophobia or anti-Muslim hatred, and it is important that that data is disaggregated. However, the United Kingdom is a very diverse country, so can the Secretary of State outline how his proposals will support people of all backgrounds, including in less diverse communities such as rural and coastal communities and smaller towns?
My hon. Friend is right to say that the response of the official Opposition was disappointing, because it implied that they have learned nothing since their historic election defeat a year and a half ago. Pride in Place—£5.8 billion distributed to almost 300 constituencies—will give some of the most held-back communities in the land up to £20 million each, and local people will choose how that money is spent. Whatever the demographic make-up of individual communities—be they more or less diverse—that will bring local people together to make decisions for themselves. The restoration of power to communities will help to build resilience within them, for whatever challenges we may face.
(11 months, 2 weeks ago)
Commons ChamberI say gently to the hon. Gentleman that I think he misrepresents the proposal that has been announced. It is not an automatic removal for all planning applications relating to more than 150 homes; it is simply a referral process, which applies in other situations already, that allows the Secretary of State to call in individual applications.
Gurinder Singh Josan (Smethwick) (Lab)
I recently met representatives of BUUK, a multi-utility infrastructure provider that constructs and operates essential utility assets, and can provide all utilities as a one-stop shop. In view of the Department’s progress on new towns, and the need to rapidly scale up house building, what consideration has the Department given to using innovative delivery models, such as BUUK’s site-wide deployment of utility infrastructure, and thus reducing bureaucracy, streamlining delivery, improving accountability and allowing house builders to get on with building?
I thank my hon. Friend for that question. The Government obviously recognise the importance of ensuring that new housing development is supported by appropriate infrastructure. On the individual company that he references, I will ask my officials to reach out to it directly to discuss its delivery model and find out a bit more about its potential advantages.
(1 year, 7 months ago)
Commons ChamberI said that this is a partnership. Of course, Birmingham city council, as the employer in this trade union dispute, has to negotiate with the trade unions and the workforce to get those services back. That is a statement of fact, not an opinion. The question is then: what can we do, as a national Government, to support local government to achieve that? We have maintained support. The commissioners, appointed by the previous Government, are in place. We have provided additional financial support—not just to Birmingham—with £5 billion of new investment in local government, bringing the total settlement to £69 billion.
As I said before, £40 million alone was for the recovery grant for Birmingham, so I feel the Government are doing as much as we can, but we always stand ready to do more if needed.
Gurinder Singh Josan (Smethwick) (Lab)
Over 14 years, Birmingham city council lost £736 million of funding under the previous Conservative Government. Does the Minister agree that that is a big recipe for the situation we are in now? Does he agree that both sides, the council leadership and the trade unions, need to put public rhetoric to one side, get around the table and sort this dispute out?
If we look at the progress made on equal pay, the trade unions and the local authority worked in partnership to agree a way forward. In the end, they recognised that they all care about the same things: they care about the people of Birmingham, about the workforce and about the long-term viability of the local authority. When common interest is applied, people can find a way through. I hope, going forward, that all interested parties can get around the table, find a way through and get the bins emptied.