Economic Crime and Corporate Transparency Bill

Harriett Baldwin Excerpts

Report stage
Tuesday 24th January 2023 Commons Chamber

[Seema Malhotra]

I thank my right hon. Friend for her intervention and for the discussions that we had on this matter prior to the Report stage.

In summary, this legislation is essential, but as we have heard from across the House today, there are still areas in which it must go further if we are to catch up after years of being on the back foot on economic crime due to years of inaction. These are thoughtful and purposeful amendments that will improve the Bill, and I look forward to the Minister’s response.

[Harriett Baldwin (West Worcestershire) (Con)]

I rise to speak to new clause 20 and the amendments tabled in the name of my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom). I very much welcome the progress that has been made in today’s legislation and the fact that this Minister is the person responsible for taking it through, given that he used to be one of my colleagues on the Treasury Committee and is a signatory to the report on economic crime that we put out last year.

It is clear from the work that we have all done on economic crime how important the reform of Companies House is to achieving this. We have all heard horror stories of people who have stolen other people’s identities and successfully set up businesses at Companies House, and of people who have shut down one business then immediately started up another one with a different name. Clearly the reform of Companies House, as taken forward by this important piece of legislation, will make economic crime much more difficult in the United Kingdom, which is something that everyone should welcome. In the report on economic crime that the Treasury Committee put out last year, we called for resources to be put into this important work. Clearly it cannot be done without those resources, and it will be interesting to hear from the Minister today about his discussions with Companies House and his estimate of the resources required.

New clause 20 proposes a fee for new businesses of £100 rising with inflation, which would give Companies House more resources to undertake this important work and, importantly, keep its budget increasing along with inflation. I acknowledge that we do not want to set a fee at a level that could act as a deterrent to anyone starting up a small business, but the work that we did last year in the Committee suggested that the current levels of fees, benchmarked against international comparators, were very low. It was clear that we needed more resources to enable us to understand the identity of those who are establishing businesses in this country, so we pulled a number out of thin air.

I acknowledge that the figure of £100 was pulled out of thin air, although I think we probably also got evidence recommending it, but I think it is a reasonable and plausible amount at which to start these discussions. I know that the Minister is as keen as those of us who have signed this amendment to see a fee established that will ensure that the regime at Companies House has sufficient resources to manage the budget. We know that software upgrades cost money and, as we all experience rising economic crime in this country, it is important that we do everything we can to ensure that Companies House has the resources to undertake this important work.

[Kevin Hollinrake]

My hon. Friend is making some valid points, as I would expect from the Chair of the Treasury Committee.

The Treasury Committee’s report does not say that we should adopt a fee of £100, but that

“A fee of £100 would not deter genuine entrepreneurs”.

I agree, but, as my hon. Friend says, the figure has been pulled out of thin air. It depends on what principle we follow, and the Government’s position is that Companies House needs to set out exactly what resources it needs to be able to perform its obligation to implement the objectives, from which we can decide how much money we need to raise. We will then look at the fees charged by Companies House. Members on both sides of the House have mentioned the incorporation fee, but an annual fee might raise more money. More work is needed with Companies House to consider this in the round before we come to a settled position. I would therefore rather not specify £100 in the Bill, for all those reasons.

[Harriett Baldwin]

I think I heard the Minister acknowledge that Companies House needs more resources, and that those resources should be raised not through a one-off fee when setting up a business but through ongoing registration fees. I also think I heard him say that he rather likes our proposal to increase the fees every year to reflect inflation. I think he substantially agrees with the thesis of new clause 20, so this is a great opportunity for him to endorse it so that Companies House is able to start budgeting right away.

I heard the Minister make the valid point that he wants to ensure the budget is worked from the bottom up, and that an arbitrary number should not be put into legislation. I have sympathy for his point of view, but I want him to understand the urgency of the matter. I want him to appreciate that we have waited long enough for this Bill, and that the Treasury Committee will therefore not allow this measure to be kicked into the long grass. We will continue to scrutinise progress, and we expect that progress to be urgent and rapid.

[Dame Margaret Hodge]

At this point in the cycle, I cannot believe there is not a resource budget. Even within the constraints of the Bill, there should be a budget because the negotiations will be starting. It would be interesting if the Minister could reveal that figure.

My second point, with which the Minister might agree, is that we so under-resource the enforcement of existing anti-money laundering regulations in this country that, even if this figure of £100, which the Treasury Committee and other Committee came up with, proved too much, which I doubt, setting up an economic crime fighting fund would mean that other enforcement agencies, such as the National Crime Agency and the Serious Fraud Office, could use those resources to provide better defences against economic crime.

[Harriett Baldwin]

The right hon. Lady makes some excellent points. Once the Minister does this work, it may well turn out that £100 is a good starting point. Other things are budgeted for, and I understand the budget for the work that is under way is £20 million for the financial year just ended. A further £63 million is expected to be needed up to 2024-25 and was allocated in the last spending review.

Forgive me if I am cynical about the budgets for public sector computer procurement projects, as they sometimes come in somewhat over budget. I urge the Minister in his response to new clause 20 to make sure that he can move swiftly to change the amount that it costs to set up a business, while making sure that it remains competitive in terms of economic parameters. It is not every day that Back Benchers say to Ministers, “Here’s some more money for you. We think this is going make the UK much safer and a centre that is less vulnerable to economic crime.” That is the purpose behind our support for this new clause.

[Mr Djanogly]

Is the point not also that if we raise the fees, rather than their falling to the general taxpayer, those who use the service would actually be paying?

[Harriett Baldwin]

That is my point—my hon. Friend has made it much better than I was. This is an offer to the Minister for a significant increase in the budget of one of the agencies for which he is responsible, Companies House, and it would be feasible without putting any further burden on the hard-pressed taxpayer. That is why I support the new clause and why I am looking forward to the Minister accepting the principle of it. I acknowledge that we may be talking about plus or minus a few quid around that £100, but that is a good starting point.

[Alison Thewliss (Glasgow Central) (SNP)]

I am glad to rise on this auspicious day to discuss this auspicious Bill. Today is auspicious not just because we have this Bill back in the House today, but because it is my mum’s 70th birthday. I am sure all Members from across the House would like to wish her many happy returns. [Hon. Members: “Hear, hear!”] Thank you.

The Bill presents a significant opportunity for the Government, and for all of us, in tackling economic crime across these islands. We have tabled many different amendments during the Bill’s various stages, including yet more today, but we very much encourage the Government to look at these amendments in good faith. As Ministers and anybody looking at the amendment paper will see, they are very much cross-party amendments. There is a lot more we agree with in the amendments to this Bill than I have seen in respect of just about any other Bill that has come before this House. The Government would do well to reflect on quite how cross-party the amendments are—there is very little to choose between us.

I pay tribute to the right hon. Member for Barking (Dame Margaret Hodge) for the important work she has done in her all-party group, which has been significant in bringing so much cross-party agreement together on the direction of travel here. I hope very much that the Minister will be listening to her, as we all will be, when she speaks later, because the amount of work that has gone into considering what would make the Bill stronger is significant; it is not a light job that has been done there. The Bill would be strengthened all the more if these amendments were accepted.

Draft Small Business, Enterprise and Employment Act 2015 and Pubs Code Etc. (Amendment) Regulations 2021

Harriett Baldwin Excerpts

Tuesday 11th January 2022 General Committees

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

I beg to move,

That the Committee has considered the draft Small Business, Enterprise and Employment Act 2015 and Pubs Code Etc. (Amendment) Regulations 2021.

It is a pleasure to serve under your chairmanship, Mr Gray.

The Pubs Code was introduced in 2016 to regulate the relationship between large pub-owning businesses and their tied pub tenants in order to address concerns about the treatment of some tenants. Under a tied tenancy, the tenant typically agrees to purchase beer and other stock from the landlord in return for a lower rent and other benefits. That arrangement means that both landlord and tenant have a shared interest in the success of the pub, and they should work in partnership to achieve that. It also means, however, that tenants are prevented from sourcing cheaper beer and other products if they want to, even when circumstances change.

The Pubs Code was introduced to create a number of rights and protections for tied tenants including better information prior to signing a contract; no upward-rent-only reviews; no tied gaming machines; and a right, at certain points, to break their tied arrangement and opt for a free-of-tie tenancy through the market rent only, or MRO, process.

The code regulates contractual arrangements that have been entered into freely by tenants and landlords. That sort of intervention by Government is only made when Parliament finds there is a clear public policy case for doing so. In this case, the intervention was justified in the light of evidence from tenants to several Select Committees suggesting that the tied model was subjecting tenants to abuse. The Government are committed to ensuring that tied tenants under the code are treated fairly and lawfully, and that there is a system for redress where alleged breaches of the code can be raised with the Pubs Code Adjudicator, the PCA.

The tied model is not inherently bad, and in most cases it works well. I have heard from tenants who are positive about their tied arrangements and welcome the partnership with their pub-owning business. It is therefore crucial thar the code strikes the right balance between protecting the tied tenant and the right of the pub-owning businesses to realise the value of their investments. The statutory requirement to review the operation of the code every three years provides an opportunity to review that balance.

The first review concluded with the publication of the Secretary of State’s report in November 2020, which found that although there had been improvements, some tied pub tenants found it hard to exercise their rights to test the free-of-tie alternative. The restrictive timetable for the process was cited as a significant issue. The most significant changes introduced by the measure before the Committee are those designed to improve how the MRO process works in practice.

The MRO process enables the tied tenant to request a proposal from their pub-owning company setting out the terms for a free-of-tie tenancy where the tenant would pay a market rent. In most cases the rent would be higher than under a tied arrangement, but the tenant would no longer be required to buy products from the pub-owning business. The statutory instrument will improve that process by, first, requiring that the initial MRO proposal from the pub-owing business includes a rent proposal, so parties can negotiate both terms and rent at the same time. Secondly, it introduces a single resolution period of up to three months. Unlike the current process, which gives tenants only 14 days to decide whether to refer a MRO proposal to the PCA, that period allows the parties time to negotiate the proposed free-of-tie terms and the offered rent. The tenant can end that period after 21 days and refer the free-of-tie terms to the PCA or the proposed rent to an independent assessor should they feel the need.

Finally, the SI makes other changes and clarifications to the MRO process following the introduction of the resolution period. For instance, if there are procedural defects in the MRO proposal, such as omission of the rent offer, the tenant has 14 days to refer those defects to the PCA.

[Harriett Baldwin (West Worcestershire) (Con)]

I welcome the update that the Minister is outlining, but will the amendments cover the situation that I discovered in my constituency during the pandemic when pubs were closed? I found that it was the pub-chain owner that was pocketing all the grants that were very generously provided by the Chancellor, whereas the tenant was suffering from absolute lack of business.

[Paul Scully]

My hon. Friend raises an important point. I do not want to start a wider debate that stretches too much from the SI, but when a tied tenancy works properly shared prosperity should occur. The pandemic proved the success and failure of the Pubs Code in that many pub-chain companies gave a lot of market discount and rent discount over and above what might have been expected from normal negotiations. They did so because they do not want empty pubs and it is in their interests. When arrangements work in both parties’ interests, the process works, but I acknowledge that there have been cases where matters have not worked well. The SI provides expressly for re-referral to the PCA where the tenant considers that the pub-owning business’s revised response is still not MRO-compliant.

Schedule 1 to the SI uses powers in the Small Business, Enterprise and Employment Act 2015 to amend the qualification period for a business owning tied pubs to come into the scope of the Pubs Code. It would change the requirement from having owned 500 or more tied pubs for six months in the previous financial year to three months. No new pub-owning businesses have reached that threshold but hon. Members will be aware of the merger and acquisition activity that is a feature of the pub sector. By determining the qualifying period by reference to the previous financial year, the Act provides an important safeguard, reflecting the need for business planning and budgeting. However, currently tied tenants may wait for nearly 18 months after their landlord reaches the 500 tied pub threshold before gaining the rights and protections of the code. For example, if a pub company increased its tied pub estate to more than 500 such pubs through acquisitions in October 2022, it would not come under the code until April 2024. Under the proposed amendment, the maximum period would be reduced to 15 months. For example, a pub company that increased its tied estate in October 2022 would now come under the code in April 2023.

That change may also result in a pub-owning business that reduced its number of tied pubs to below 500 remining regulated by the code for a longer period. That means the minimum period of full protection for the remaining tied tenants increases from six to nine months.

The amendments in schedule 2 relate to the comparison period used to determine whether a significant price increase for a tied product or a tied service has occurred. That is one of the events that allows tied tenants to request a MRO proposal and acts as a disincentive to pub-owning businesses to raise beer and other prices significantly under the tie. The Government are cautious about changing the arrangements, but there is a case for amending how the comparison period is calculated. In effect, the code created a 56-week comparison, potentially capturing two annual price increases and that raised complications for the more traditional 12-month business planning cycle. The proposed change amends that comparison period to a 52-week period, while continuing to disincentivise price increases and providing protection for tenants.

In terms of notification in relation to extended protection, that protection applies where a tied pub is transferred to a landlord that is not a regulated pub-owning business under the code. Tenants with extended protection benefit from the provisions of the code for a limited time, with the exception of the right to a MRO proposal. Currently, the PCA has no direct knowledge of such transfers. The Government propose that a regulated pub-owning business must inform the PCA when it is transferring a tied pub in circumstances that mean that the tenant will enjoy extended protection. That will allow the PCA to contact the new owners to raise awareness of their tied tenants’ rights and protections.

The SI will make helpful and important changes to improve the operation of the Pubs Code, in particular by allowing the parties a meaningful period in which to negotiate and reach a resolution. I ask the Committee to approve the instrument.

Oral Answers to Questions

Harriett Baldwin Excerpts

Tuesday 21st September 2021 Commons Chamber

[Harriett Baldwin (West Worcestershire) (Con)]

T3. I recently held an event for leading Worcestershire businesses on the journey to COP26 and net zero, and was impressed with their plans for investment. Will the Secretary of State reassure the House that now that one in six cars purchased in this country are electric, the grid will be strengthened in rural areas to ensure the widespread adoption of this new technology?

[Kwasi Kwarteng]

I know, as a former Treasury Minister, that my hon. Friend is very focused on making the green transition as economically successful as possible. I and others in the Government are very focused on getting a proper electric vehicle charge roll-out, and I would be happy to speak to her to discuss the plans that we have adopted.

Oral Answers to Questions

Harriett Baldwin Excerpts

Tuesday 15th December 2020 Commons Chamber

[Paul Scully]

I regret that the Scottish Government have not continued their discussions with the UK Government about an internal market Bill specifically, whereas they have continued them on the common frameworks. On the United Kingdom Internal Market Bill, we have made amendments in the other place that reflect conversations with the Welsh Senedd and Northern Ireland Assembly. I just wish the Scottish Government would come back with productive conversations so that we can push this through and give certainty for business.

[Harriett Baldwin (West Worcestershire) (Con)]

What steps his Department is taking to support businesses during the covid-19 outbreak.

[Paul Holmes (Eastleigh) (Con)]

What steps his Department is taking to support businesses during the covid-19 outbreak.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Nadhim Zahawi)]

My Department continues to deliver a wide range of measures to support UK businesses. We have extended our loan schemes, which have already delivered more than £65 billion of finance, until the end of January.

[Harriett Baldwin]

That level of support is impressive, and I also thank the Minister for all he is doing on the vaccine roll-out. There are sections of the UK economy that are going to grow rapidly, not least the green industrial revolution, thanks to the energy White Paper announced yesterday. What steps is he taking to make sure that it is UK-based businesses that grow the workforce and benefit from the job creation as a result of the green industrial revolution?

[Nadhim Zahawi]

I am grateful to my hon. Friend for her excellent question. The 10-point plan will build on the nearly half a million green jobs that already exist in the UK economy, supporting up to 250,000 further high-skilled jobs. The House will be interested to know that we are talking about 60,000 in offshore wind, 10,000 or more in nuclear, 50,000 in green and comfortable homes, 8,000 in hydrogen, 53,000 in carbon capture utilisation and storage and 40,000 in accelerating the shift to zero-emission vehicles.

Oral Answers to Questions

Harriett Baldwin Excerpts

Tuesday 21st July 2020 Commons Chamber

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

What support his Department is providing to businesses to help them operate in a covid-secure way.

[Harriett Baldwin (West Worcestershire) (Con)]

What steps he is taking to help all businesses reopen in a covid-secure way.

--- Later in debate ---

[Alok Sharma]

As my right hon. Friend will know, 2.7 million self-employed people have accessed over £7.8 billion of grants from self-employed income support scheme. The scheme has been extended, and individuals will be able to claim a second and final grant when the scheme reopens for applications on 17 August.

[Harriett Baldwin]

I thank the Secretary of State for finding a way to reopen the beauty sector, which employs so many women across the country. When I paid a visit to the Malvern Spa to celebrate its reopening last weekend, I was told that it has capacity now for only 15 spa days, rather than 40, because of the square footage rules that his Department has set out. Will he look urgently at reviewing those, because it is a very spacious premises?

[Alok Sharma]

I thank my hon. Friend for her acknowledgement of the work we have been doing. The key has been to open businesses safely and securely in a cautious and phased manner, and we will continue to do that.

Covid-19: Business

Harriett Baldwin Excerpts

Tuesday 12th May 2020 Commons Chamber

[Alok Sharma]

The hon. Gentleman raises an important point on behalf of a sector that he is working to represent. We will continue to work collaboratively to come up with further guidance on sectors and industries that are not currently open.

[Harriett Baldwin (West Worcestershire) (Con)]

I thank the Secretary of State for allowing garden centres to reopen from tomorrow; that is very welcome in West Worcestershire. As he thinks about allowing more of the retail sector to open, is he considering relaxing the rules to allow a levelling up of our high street to the same sort of opening hours as we have on the internet?

[Alok Sharma]

I, too, welcome the fact that garden centres will be open from tomorrow. It will be an opportunity for us to continue to restart our economy. My hon. Friend makes an important point. I will continue to keep the situation under review.

Budget Resolutions

Harriett Baldwin Excerpts

Thursday 12th March 2020 Commons Chamber

[Harriett Baldwin (West Worcestershire) (Con)]

It is, I think, a pleasure to follow the hon. Member for Glasgow Central (Alison Thewliss), who sits with me on the Treasury Select Committee, which has eight women members out of 11. I think I did detect one thing that she welcomed in the Budget, which was the end of the tampon tax. I was glad to hear one thing that she welcomed.

The Budget was delivered in truly exceptional circumstances, in the context of a coronavirus outbreak. As we sit here today, the US stock market opened down at its limit again and had to close for the second time this week. This is truly a difficult and challenging economic environment for the Chancellor as he delivers his Budget. I am sure that all colleagues were impressed with the way in which our new Chancellor delivered the Budget. He did so with the confidence that looked as though he had been working all his life to deliver it, whereas he had been in post for only four weeks. It was a remarkable performance that got an exceptional Budget done in exceptional times. It delivered on so many of the promises in our manifesto—promises that the British people voted for last December.

I have heard a number of people this afternoon reference the unprecedented nature of the coronavirus, and I think everyone has welcomed the measures that were taken in the Budget. They all reflect the fact that this is a temporary situation; we know that it will come to an end, but we do not know when. The measures were also timely, and they were very targeted at those who will be most adversely affected. I think there was a collective agreement in yesterday’s speeches and today’s that the measures were necessary and welcome. They also come against a backdrop that continues to be very distorted in certain fundamental ways in terms of the global economy and in terms of our own economy. It is quite remarkable that this week—on Monday—the two-year bond in the UK switched to a negative interest rate for the first time. Before I came into politics I was a portfolio manager for over two decades, and I never saw anything like this. What is happening on the markets is really quite unprecedented.

Similarly, since the financial crisis, when the Bank of England implemented quantitative easing and added Government bonds to its own balance sheet, it has not been able to unwind those holdings. It has actually had to increase them over the past decade, holding now some £425 billion-worth of bonds. There are some really fundamental and long-standing distortions on the Government’s own balance sheet. Twelve years on from the financial crisis, the Government still, on behalf of taxpayers, hold shares in RBS. I know that the Red Book says that the Government are planning to reduce those holdings by 2024, but I note that since January the value of those holdings has fallen by half. I would love to hear from the Minister what the plans are for the RBS shares.

There was also a lot in the Budget statement about the long-term plans for levelling up the British economy, and a lot that we can welcome across the House in terms of long-term infrastructure spending. We all recognise—certainly on the Government Benches—that Governments have no money of their own. They have only the money that they can borrow or the money that they can take in taxation from a productive economy. The growth in public spending that is in this Budget is much faster than the overall growth that is projected in the economy. Government Members all recognise that this is an exceptional response to exceptional circumstances, but we cannot carry on doing that. As the Institute for Fiscal Studies said today:

“Obviously, that is not sustainable for any prolonged length of time.”

Effectively, what the Chancellor did in the Budget was to say that the money that is going to be invested in the long-term plan—that levelling up, that infrastructure investment—is going to generate a greater rate of return for the economy than the OBR assumes in its forecasts. I can see that in my constituency, where I am campaigning for the redoubling of the Cotswold line, for example. There is a proposal on the table for nine miles of Cotswold line to be redoubled. That has a business case of a 4:1 ratio, so it is clearly something that would be really positive for the local economy. The Secretary of State spoke in his opening remarks about the research and development spending that is in the Budget, and he mentioned that there is a 7:1 ratio for spending on research and development. I can see it in terms of the spending for flood defences that is in the Budget. How valuable that will be for the communities in West Worcestershire that I hope will benefit from it. The same can be said for investment in superfast fibre and improving rural mobile phone signals. This money should receive a greater rate of return in economic growth than is currently forecast by the OBR.

I have three quick questions in the minute left to me. First, on the £22 billion of public R&D investment and the £800 million specifically for an advanced research projects agency, will it link with what we are doing on defence research budgets through the Defence Science and Technology Laboratory and taking some of those inventions to market through the Ploughshare scheme? What is the vision for those investments? In what sectors will they likely be invested, and how will we measure success over time? Secondly, are we extending the maturity of our debt and taking advantage of these low interest rates? Thirdly, as I mentioned before, what is the plan for RBS?

Finally, I recognise the exceptional conditions in which this Budget was delivered.

Oral Answers to Questions

Harriett Baldwin Excerpts

Tuesday 3rd March 2020 Commons Chamber

[Nadhim Zahawi]

I thank the hon. Member for his question, but he is wrong. We have stood up a very important group within the Department that is working with the automotive sector, the retail sector and others that are impacted by China’s supply chain problems. We continue to monitor the situation closely, as well as the critical infrastructure that keeps the UK’s lights on and the UK economy powering ahead.

[Harriett Baldwin (West Worcestershire) (Con)]

Does the Minister agree that one of the best ways to level up the great British high street with the internet would be to allow our high street shops to choose when they open?

[Paul Scully]

I know that my hon. Friend has looked at extending the hours of the Malvern tourist information centre. The Government have reviewed this issue several times. There are strongly held views on both sides. We believe that the current rules represent a fair compromise between those seeking reduced opening hours and those seeking greater liberalisation.

Oral Answers to Questions

Harriett Baldwin Excerpts

Tuesday 21st January 2020 Commons Chamber

[Jacob Young (Redcar) (Con)]

3. What progress her Department has made on tackling climate change.

[Harriett Baldwin (West Worcestershire) (Con)]

12. What progress her Department has made on tackling climate change.

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

I welcome and congratulate my hon. Friend the Member for Redcar (Jacob Young) on winning his seat—a great result. We have reduced carbon emissions by more than 40% since 1990, while growing our economy by more than two thirds. We are currently decarbonising our economy faster than any other G20 country, and more than half our electricity now comes from low-carbon sources. We have the largest offshore wind capacity in the world.

[Kwasi Kwarteng]

Absolutely—I would be delighted to back Redcar’s big opportunities in CCUS. I was there last week when I had an instructive meeting with various stakeholders and industry professionals, and there is a huge economic opportunity.

[Harriett Baldwin]

Businesses such as Frank Matthews tree nursery in my constituency play a vital role in growing the trees that we will need to combat climate change. How will the Department ensure that the trees we plant are native, sustainable species?

[Kwasi Kwarteng]

As my hon. Friend knows, the Government are absolutely behind such initiatives. We have a well-developed forest nursery sector, and we encourage the planting of UK-grown trees, as proven by our £640 million Nature4Climate fund. That builds on our support for preserving areas of great natural beauty, such as the Malvern hills in my hon. Friend’s constituency, and we hope to plant an additional 75,000 acres of trees a year by the end of the next Parliament.

Climate Change, the Environment and Global Development

Harriett Baldwin Excerpts

Wednesday 10th July 2019 Commons Chamber

[The Minister of State, Department for International Development (Harriett Baldwin)]

It is great privilege to reply to this debate. In this Parliament over the last few months, a 93-year-old man, Sir David Attenborough, has spoken powerfully of the need for us to act, and a 16-year-old girl, Greta Thunberg, has come here and told us of the need to act. In the last week, many of our constituents have come to say that the time is now for all of us to act. I am proud to be speaking at the Dispatch Box representing the greenest Government ever of the country that has gone faster than any other major industrialised country to decarbonise, and which is indeed decarbonising faster than any other country in the G20.

Millions of women will have got up this morning in Africa and walked for miles to cut down a tree, turn it into charcoal and cook using it in their own home in a way that poisons them and their family. This is one of the biggest killers in our world today. What came through loud and clear in today’s debate is that this is a global challenge and a global problem. Yes, we have to do our bit here in the UK, but we must also keep at the front and centre of our work the very poorest, who are likely to be the most affected by climate change.

I welcome the spirit of today’s debate. There has been a huge amount of cross-party support. That is important because passing the legislation to go to net zero without a vote in this Chamber, as we did last week, sends out the most powerful signal that we can send to the UK private sector that, whatever happens in our politics, everyone is on the same page on this agenda. Of course, there may be differences about what we do and how fast we go, and a range of different points of view were expressed on that today, but what was most powerful overall was that everyone agreed, cross-party, that this is something we need to tackle.

We should also welcome the fact that, although I am responding to this debate as an International Development Minister, my hon. Friend the Member for Pendle (Andrew Stephenson) opened it as a Minister in the Department for Business, Energy and Industrial Strategy. That also sends a very strong signal about how we are working on this across Government.

We are all agreed that climate change remains one of the biggest global threats to sustained development and, indeed, to our own way of life. No country on this planet is projected to be spared from further temperature increases, and the world is already facing serious challenges to the natural environment, food production and water resources. The challenges posed by change to our climate are systemic. Much more needs to be done and greater global ambition is needed. That is why the UK is jointly bidding with Italy to host next year’s COP 26.

We have had an excellent debate, full of a range of very strong contributions. Although the hon. Member for Liverpool, Walton (Dan Carden) objected to a Business Minister opening the debate, he will be interested to know that 34% of all our climate finance is spent by the Department for Business, Energy and Industrial Strategy. He will also be interested to know that the multilateral development banks agreed at last year’s COP to align their $200 billion of climate finance with the Paris agreement—that is a point he specifically requested.

As we send out these strong cross-party messages, we need to think carefully about the attacks I heard from Opposition Members against the oil and gas sector. I am sure that Labour voters in Scotland would be alarmed if they felt that the hon. Gentleman would be as harsh on the oil and gas sector in Scotland as he appears to be on the sector elsewhere in the world.

This is the only political point I will make from the Dispatch Box today, but we need to think about actions that will lead the world and about actions that will lead to businesses moving from this country to other parts of the world. I would put in that second category the shadow Chancellor’s aspiration to remove the UK listings of many perfectly good, British companies, which will simply move their listings elsewhere.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The Minister is talking about future investment. Will she commit her Government to taking real action on carbon capture, utilisation and storage? The project in Peterhead was shamefully abandoned by George Osborne a few years ago, and we need to get projects such as St Fergus up and running. If we could do that by 2023, it would do an awful lot to help this issue. Can the Minister get behind that?

[Harriett Baldwin]

The hon. Gentleman will be aware that we are spending £45 million on supporting this technology, and we published an action plan last November, but of course we need to do more.

In a strong speech, my right hon. and learned Friend the Member for North East Hertfordshire (Sir Oliver Heald) talked about transport and the importance of changing behaviour in the sector, which is such a big emitter of carbon. I highlight the £1.5 billion that goes with the “Road to Zero” strategy, which was published last year, and the private sector is rapidly responding to the signals sent out from this place.

All the UK car companies have now developed electric models, including today’s welcome news about the Mini in Oxford and the wonderful news about Jaguar Land Rover in the midlands. Even in my constituency, Morgan Motor Company, known for its traditional cars, will have an electric model. My right hon. and learned Friend will be interested to know that 1,000 charging points a month are now being installed across the UK, which exceeds our expectations. The sector is rapidly responding to the signals we have sent out from this place.

The hon. Member for Dundee West (Chris Law) made an excellent speech about what Scotland is doing, and he made the valid point that the minority SNP Government may have examples of best practice from which England and other parts of the UK can learn.

My hon. Friend the Member for Chichester (Gillian Keegan) made an amazing speech, and I salute her work as co-chair of the all-party parliamentary group on the United Nations global goals for sustainable development. With her experience of the car industry, she made some powerful points about how we are bringing people with us.

The hon. Member for Leeds West (Rachel Reeves), who is Chair of the Business, Energy and Industrial Strategy Committee, made a powerful speech about how this is an opportunity for the UK to lead the next industrial revolution, and she highlighted some of the Committee’s excellent work in this area.

My hon. Friend the Member for Stirling (Stephen Kerr) spoke at some length—I am now looking at the time to make sure I am not also going over—and he highlighted the importance of our moving beyond single-use plastics. As a member of the Select Committee, he spoke with great knowledge of trees, electric vehicles and a range of other important areas. He also spoke of the importance of cross-party work in Scotland.

I am glad that the hearing aid of the hon. Member for Falkirk (John Mc Nally) did not cause any faltering in his excellent speech as a member of the Environmental Audit Committee. The hon. Member for Bath (Wera Hobhouse) highlighted that this is not a new issue. I am old enough to remember the slogan “Plant a tree in ‘73”. I will not embarrass the House by asking other hon. Members to acknowledge that they remember that, but it is something that we have been doing for a while. We need to act faster and go further. I diverged from her only on her feeling that we would be helped in doing that by being a member of the European Union. We are going further and faster than the European Union which was not able to reach consensus on the issue recently.

The shadow Minister talked about the importance of climate finance. The UK has led the world in green finance. We published a further green finance strategy last week, and the leadership of Mark Carney at the Bank of England has been strong in this area, including on disclosure in annual reports. The City of London has shown itself able to attract a lot of listings, and we have more than $25 billion of funding going into green developments, which has happened as a result of the UK’s leadership in this area. We need to carry on with that because such investments can often be very capital intensive.

Looking to the future, I am confident that the UK can lead from the front in helping the world to drive the change necessary. That is why debates like today’s are important, timely and effective. I thank everyone who has generated the strong amount of consensus in this important debate today.

Question put and agreed to.

Resolved,

That this House has considered tackling climate change, protecting the environment and securing global development.