The Economy

Hugh Gaffney Excerpts

Thursday 24th October 2019 Commons Chamber

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

It is a pleasure to follow my hon. Friend the Member for Newport West (Ruth Jones).

It is a new Session of Parliament, but we are still hearing the same old ideas from the Government. This was not a Queen’s Speech offering a serious programme for government; it was a pre-election stunt by a Prime Minister who promises everything but can deliver nothing. He has no majority, no mandate and no policies to tackle the real issues facing this country.

We have a poverty crisis in the UK. There are 14 million people living in poverty, one fifth of our entire population, and 4 million of them are children. It was once said that the best route out of poverty was to secure employment, but the growth of insecure employment—for instance, zero-hours contracts—has led to rising levels of in-work poverty. Sixty per cent. of those living in relative poverty reside in working households. The UK’s poverty crisis is real and the Government continue to ignore it at their peril. Sixty per cent. of the public believe that the Government have caused poverty through their austerity policies. When will we see action from this Government? When will they tackle low pay with a real living wage of £10 per hour for all workers, starting from the age of 16? When will they scrap failed welfare reforms like universal credit, which are directly responsible for the rise in food bank use, and when will they end insecure employment by abolishing the exploitation of zero-hours contracts? The public are demanding action, and if the Government are not prepared to act, I say to them: stand aside because Labour is ready.

There are clear examples of workers’ rights under attack, which the Government have chosen to ignore in the Queen’s Speech. The Queen’s Speech contained no proposals to scrap the undemocratic Trade Union Act 2016, which undermines the right to strike. There are no proposals to support the Asda workers, who face a disgraceful choice between accepting cuts to their terms and conditions or losing their jobs, and there are no proposals to support the postal workers who face threats to both their jobs and their terms and conditions despite agreements.

I congratulate the postal workers and the Communications Workers Union for a fantastic ballot result, which saw an overwhelming 97% vote in favour of strike action. I say today to Royal Mail, “Honour the agreement that was made and we can avoid any industrial action.”

The Government have chosen to impose austerity on our communities for the last 10 years, despite the clear damage that has done. Only Labour are committed to investing in our public services and our communities and ending austerity. The real tragedy of austerity has been the impact upon the lives of ordinary people, people like the 75-year-olds who have seen a broken promise on their TV licences. That is why I tabled amendment (b), and I thank all those Members who supported it. There is a simple answer, and I hope the Government will listen and think again: let us get the free TV licences back for those 75-year-olds.

We have seen rising levels of poverty, attacks on workers’ rights and austerity imposed upon our communities under this Government. When I stood for election in 2017, I asked the good people of Coatbridge, Chryston and Bellshill to send a working man to Parliament. I am here to fight for my constituents and to fight for the workers; that is why I will be opposing this Queen’s Speech tonight.

Devolved Administrations: Borrowing Powers

Hugh Gaffney Excerpts

Tuesday 9th July 2019 Westminster Hall

[Luke Graham (Ochil and South Perthshire) (Con)]

I beg to move,

That this House has considered borrowing powers for devolved administrations.

It is a pleasure to serve under your chairmanship, Sir Gary. I thank the House for allowing this important debate on the borrowing powers of the devolved authorities across the United Kingdom. People might be wondering, “Why have this debate?” We have a packed audience here to listen to it, which shows the importance of the powers and why they matter so much for our constituents. If people do not realise how much the powers matter, hopefully this timely debate will help them to see that.

Funding is often contested. Speaking as a Scottish MP, and as I am sure colleagues will attest, there is confusion about the powers available for tax raising and borrowing, as well as about where the funding comes from—Westminster, Edinburgh or a local authority. That stands in Wales and Northern Ireland as well. In my constituency of Ochil and South Perthshire, recently a Barnett consequential for the high street and towns fund was denied. Representatives of the devolved Administration in Edinburgh said that there was no Barnett consequential, and that the funding came from Edinburgh. It is important to have this debate to discuss exactly where the money comes from, and the powers that devolved Administrations have throughout the United Kingdom.

There is also some confusion on social media; I am sure cross-party colleagues will agree. When funding plans are welcomed or criticised, there are often such comments as “Scotland has no powers to borrow any funds”. Today’s debate will hopefully be an opportunity to demystify the borrowing powers of the devolved Administrations and some of the funding routes across the United Kingdom. I hope that it will make the situation clearer and will raise the debate to a higher standard right across the UK—in Westminster, Edinburgh and at local authority level.

I start with the facts. All devolved Administrations can borrow. That includes Scotland, Wales, Northern Ireland, and even some of the devolved areas in England, although powers and the amounts vary across the devolved Administrations. I will attempt to make things clear for constituents and those who want to learn more about our financial settlements. Those powers will often be split into two parts: capital, going to assets, and resource spending, which is more cash-based.

My focus is very much on Scotland. I have some live examples, and I am sure colleagues will have interventions to make. In Scotland, local public revenue raises about £60 billion, which is about 8% of UK GDP. Expenditure stands at just over £73 billion, which is about 9.3% of the UK’s spend, so there is a gap of about £13 billion between what we raise in Scotland, including the oil and gas revenue that is often quoted, and what we spend. That gap is bridged by central Government, by other tax revenue raised in Westminster from across the United Kingdom.

What powers does Scotland have for additional tax raising and borrowing? Tax-varying powers have existed since devolution started. We had some flexibility over the penny on income tax. Obviously, our powers increased through the Scotland Acts 2012 and 2016, and we now have powers to vary the income tax bands—powers that the Scottish National party Administration in Edinburgh have used. They have lowered taxes for those earning under £26,990. If someone earns less than that threshold, they are now about £20 better off per year. That is about 38p better off per week—very helpful if someone wants to buy a Tunnock’s Teacake. Someone who is in the higher tax band will be charged about £1,500 more than other taxpayers in the United Kingdom.

[Mr Philip Hollobone in the Chair]

That is a significant point. Not all the higher-rate taxpayers in Scotland—about 14% of Scottish taxpayers—are ludicrously wealthy; the people who fall into that tax band will be teachers, doctors—some will be nurses—and public servants, as well as some very hard-working private sector workers. They should have their hard work rewarded; they should not be penalised for being in Scotland.

We want to attract more people to Scotland. As my hon. Friend the Member for Angus (Kirstene Hair) has brought up many times, this issue is especially important for our armed forces. Everywhere else around the world, they pay the Westminster rate of tax. It is only in Scotland that they are penalised and have to pay additional tax for being based there. Being based in Scotland is, of course, a benefit, and that benefit should not be eroded by the tax system imposed on them by Edinburgh. Thankfully, due to the work of my colleagues and the Government, that tax impact has now been neutralised, and members of the armed forces will now pay no more tax in Scotland than they do in other parts of the United Kingdom.

Devolved Administrations can borrow. Scotland can borrow about £3 billion for capital and about £1.75 billion for resources. What does “resources” mean? Breaking it down, it means that if we are a bit short in our cash flow in Scotland, we can borrow up to £500 million for cash. About £300 million is for forecast errors, and we see some of those coming through at the moment. There is a fantastic National Audit Office and Public Accounts Committee report on devolved income tax collection in Scotland. It makes for fantastic night-time reading; it clearly outlines some of the difficulties and costs of having additional income tax rates in Scotland.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

The hon. Gentleman is making a good point about the limited borrowing powers in the Scottish Parliament, which do not match the growing taxation powers. Yesterday, the Foreign Secretary ruled out more economic powers for the Scottish Parliament in his Tory leadership bid. Would the hon. Gentleman agree that the Scottish Parliament needs greater borrowing powers to invest in the Scottish economy?

[Luke Graham]

In short, no. We should use the borrowing powers that we already have. The SNP Administration underspent by a reported £450 million in the last year; that shows that the proper economic programme is not being put forward for Scotland. They are not delivering for us. We have the power to vary tax rates, we have additional borrowing powers, and we do not have half the risks and responsibilities that the Treasury in London has to bear, yet in each of the next four years, we are forecast to underperform, compared with the rest of the UK. Going back a year, we were the lowest performing economy in the OECD and out of the G20 advanced economies.

Beer Duty Rates

Hugh Gaffney Excerpts

Tuesday 25th June 2019 Westminster Hall

[Giles Watling]

I celebrate that positive action; it is great that the duty is 18% lower than in 2012.

The Alcohol Health Alliance concludes that previous across-the-board cuts in beer duty have helped supermarkets to continue to undermine on-trade sales, while failing to slow the rate of pub closures. Despite the Government’s valiant efforts, therefore, the important contributions that our pubs make to the economy and to community life by providing a place to socialise and encouraging responsible drinking remain at risk.

Most concerningly, analysis shows that it is small independent pubs that are disappearing as the big pub chains consolidate their businesses around larger bars, usually in town centres. Eventually, that will allow those big pub chains to monopolise the on-trade marketplace. That will give them a stranglehold over pricing and is unlikely to result in a cheaper pint for the consumer.

Moreover, the closure of any pub, especially a small community asset, endangers work on loneliness and social cohesion. Researchers have found that people who have a local pub are happier, have more friends and feel more engaged with their local communities, but closures are depriving some people of those benefits. That can be particularly acute in rural areas. The pub is a famous and traditional part of the British way of life. It is an essential part of the community. It deals with loneliness and is a form of social care. The traditional landlord knows his clientele. He knows who needs help, who is in trouble and what resources are available, and he is a friendly ear.

As a touring actor many years ago, I stayed in a small village on the outskirts of Stratford-upon-Avon that had a pub, a church and a community centre, and a pub landlord, a vicar and a policeman. Twenty years later, I went back and those three pillars of the community had gone, along with the pub. It was a sad reflection of that wonderful little community that I knew so well, where people talked over the garden fence, talked to one another in the pub, looked after each other and looked out for one another. Instead, the people of that little local community had disappeared into their silos. They went to the local town to work as commuters and came back to their houses to drink cheap supermarket booze in front of their widescreen televisions. The community had broken down. The loss of that community is a great shame, and I want to prevent that from happening elsewhere. We must do all we can to prevent the closure of any pub.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

I worked in the pub trade for 10 years. One of my first and most enjoyable jobs was working at the Windmill Tavern and the Gates Bar in my constituency. That was a long time ago, but those pubs survive. Sadly, I know a lot of landlords who knew then, and know now, that business rates and the price of a pint are far too high. We are losing places to socialise and we are losing communities. Communities need pubs, so I strongly support the hon. Gentleman.

[Giles Watling]

I ran a pub with my wife—the Kings Head on Kings Head Hill, Chingford—in one of those moments when my acting career was not going too well.

Pubs are also positive for our high streets. They attract visitors, so closures are counterproductive to the Government’s efforts to revitalise our urban centres. Let us not forget the general economic impact of the beer and pub industries, which contribute £23 billion to GDP every year and support more than 900,000 jobs. Crucially, 44% of those jobs are held by 16 to 24-year-olds.

All that is at risk, however, because of beer duty rates. Even after the Government’s reductions, we still have one of the highest rates in Europe and pay 40% of all beer duty in the EU while consuming only 12% of the beer—despite my best efforts. That has contributed to the fact that, according to the Campaign for Real Ale, 56% of drinkers believe that the price of a pint of beer in a pub has become unaffordable.

Drinkaware notes the shifting preference of the consumer, who now purchases alcohol in the off-trade marketplace to consume at home, as per my example of the little village near Stratford-upon-Avon. When people can buy a pint of beer for less than £1 in some supermarkets, it is hardly surprising that many choose that option, especially when pubs simply cannot get near those rock-bottom prices. I believe that the average pint of beer is between £3.50 and £4, which is three or four times the amount.

The data supports that shifting preference and demonstrates that while high rates of beer duty have been pricing people out of drinking in pubs, off-trade sales have been thriving. Figures from the British Beer and Pub Association show that since 2000, on-trade consumption has fallen by a massive 47.2%, but off-trade consumption has risen by 29.3%. That is clearly inequitable and stems from the disparity in cost between the two. The Government’s across-the-board beer duty reductions have not addressed that disparity, given that they also benefit off-trade sales. Because pub closures largely derive from the surge in the sale of cheap alcohol, the disparity needs to be addressed.

An underlying potential public health concern could result from inaction, because people who drink at home without a responsible landlord to keep an eye on them are at risk of alcohol abuse. Today, the number of hospital admissions related to alcohol remains high at one million annually, and that places a strain on our precious resources. Most worryingly, the number of admissions has risen as a pint has become more expensive. Even if there is not a direct correlation, 73% of publicans think that increasing the price of off-trade alcohol is crucial to tackling alcohol problems.

We can do that with a differential rate of beer duty that skews the odds back in our pubs’ favour by cutting the on-trade beer duty rate to benefit those sales over off-trade sales. The Exchequer Secretary to the Treasury said recently:

“I can see the strong argument for that, but it is unfortunately not possible under EU law. Duty is levied on production, not on the place of consumption. However, we might be able to turn to that should we have sufficient flexibility.”—[Official Report, 28 March 2019; Vol. 657, c. 635.]

We are shortly going to get that flexibility, and there must be a technological mechanism that we can use to track the destination of beer products when they leave the producer, and then add the tax accordingly. Such an approach would mean cutting the on-trade duty rate, before adding a stipend for beer products destined for the off-trade marketplace. It would also mean that the cut for on-trade sales would offset the increase in off-trade duty. I accept that such a change could impact all off-trade retailers, and therefore any such adjustment should be narrowed to large retailers only. For large retailers, sales of beer form only part of their turnover, whereas for small off-trade retailers, alcohol sales can be everything. That important point must be considered during any discussion of the proposal so that we do not damage our very valuable small businesses.

We must differentiate and cut beer duty for on-trade sales, because doing so will truly benefit our pubs. However, although I might be considered an expert on beer, I am not an expert on tax law. I hope that we can have a pledge from the Minister today that the Treasury will investigate this matter, so we can see whether such differential rates could hypothetically be used to support our pubs when we leave the EU. Moreover, when we investigate, we must find a way to ensure that producers pass on savings to the consumer. Many in the industry allege that previous savings have been retained by brewers, and that undermines efforts to save our pubs.

If I have convinced the Minister that there is still a strong argument for differential rates of beer duty—I am sure I have—I hope that one day he will join me for a drink in my local in Frinton to celebrate the introduction of this important change.

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[Andrew Griffiths]

My father said that there was no such thing as bad beer. My hon. Friend is articulating that there is—there is a skill; it is a profession. One of the things we have lost over many years is the landlord as a profession, but with the rise of cask ale, it is beginning to come back. The landlord was well respected in our communities. He was a pillar of the community. He knew his job and he knew his cellar. The more we can support the great British pub, the more those skills can be retained and will flourish.

Secondly, on public safety, we all suffer on our high streets occasionally from what we call preloading or binge drinking, particularly among younger people who might buy some alcohol from the supermarket, or who may get it from their parents or whatever, who then go and drink in the park or in the town centre. There is a cost involved for the police and the wider community in managing that, but there is no cost to the supermarket. However, publicans are required to keep their house in order. They are required to have door staff who treat people with respect and with care, and who make sure that the licensed premises is safe and that people who turn up who may have had too much to drink are refused so that everybody else in the establishment is kept safe. None of those costs are on a supermarket, but they are on the British landlord. It is important to recognise that and to represent it in the taxation regime.

There is also the extra cost of delivering cask ale or draught ale. This may be one way in which the Minister can think about being creative when he looks at a replacement for EU duty on alcohol as we come out of the European Union. The duty is on production and it may be difficult to differentiate the duty on a bottle of beer sold from a supermarket and the beer sold in a pub, but we could differentiate a bottle of beer sold in a supermarket and a pint of draught ale, because it is in a different container and is served in a different way. That may be one clever way—I know the Minister is extremely clever—in which he can crack this nut of supporting our pubs, which offer an asset to the community, keep us safe and are the great introduction to responsible drinking. I am sure hon. Members remember when someone went down to the pub where the landlord would keep an eye on them; he knows the family; if someone gets into trouble, he says, “You’ve had a few too many—go home.” We risk losing that if we lose the great British pub.

[Hugh Gaffney]

I am a non-alcoholic. I do not drink. I have done the pub trade for 10 years and I have never drank. I enjoy the social side of going to a pub and meeting people. Where publicans are really struggling now is with business rates. Pubs are community hubs, and we really need to look at business rates.

[Andrew Griffiths]

I could not agree with the hon. Gentleman more. As the ex-chairman of the all-party parliamentary beer group, I decided to challenge myself to have 12 months off alcohol. That runs out in July. I have been alcohol-free for 12 months, but that does not mean that I do not continue to support the British brewing industry and the British pub. It is absolutely at the centre of our community. The hon. Gentleman is exactly right.

The hon. Gentleman mentioned business rates and it is absolutely right that pubs are treated in a unique way on business rates. I use an old phrase: we have an analogue taxation system in a digital world. I am not saying that Amazon will be delivering my pint of cask ale to me via Amazon Prime, but businesses more generally, particularly small businesses, are having to compete with sales on the internet and the brave new world of retailing. I am absolutely sure that doing something about business rates will help our high streets.

I have one other matter to take up with the Minister, which I hope he will find interesting. One of the objectives behind all Government policy is responsible drinking. We want people to enjoy a pint of great British beer, but we want them to do it responsibly. A great thing we have seen because of responsible actions by brewers is a reduction in the alcohol by volume in drinks, and in beer in particular. Beer is a particularly good way for us to take units out of consumption, because of its high volume and relatively low strength.

The Government introduced a lower rate of duty on beer less than 2.8% ABV. Brewers have done a really good job and have tried to embrace that, but it is difficult for a brewer to produce a tasty beer at less than 2.8%. It is the alcohol that gives it the bite, but it is also the alcohol that helps to preserve it and keep it drinkable in the pipes for longer. With the best of intentions, landlords wanted to provide a lower-alcohol beer on cask, but they could not because it was not economically viable because the beer went off. It was 2.8% because of the EU directive, which prevented us from doing anything else. As we Brexit and come out of the European Union, we have the opportunity of a differential rate—maybe 3% or 3.5%—at which brewers could produce a great, tasty beer while taking units out of consumption. For those of us who enjoy a pint, but not a stronger pint, all those things would work well together.

I thank you very much for allowing me to take part in the debate, Mr Hollobone. In conclusion, I am absolutely heartened to hear that we have such beer champions. As the MP representing the heart of British brewing—Burton upon Trent, with its history and future in brewing—I hope the Minister will think about using Brexit to deliver cheaper beer for Britons across the country as we leave the European Union.

Debt Collection Letters

Hugh Gaffney Excerpts

Tuesday 21st May 2019 Westminster Hall

[Norman Lamb (North Norfolk) (LD)]

I beg to move,

That this House has considered the content of debt collection letters.

It is a pleasure to serve under your chairmanship, Sir Graham. I have been working with the charity the Money and Mental Health Policy Institute. I sit on its advisory board, along with hon. Members from other parties, including the hon. Members for Plymouth, Moor View (Johnny Mercer) and for Liverpool, Wavertree (Luciana Berger). It was set up in 2016 by Martin Lewis from Money Saving Expert. Money and Mental Health has been conducting valuable research into the link between financial difficulty and mental ill health, and leading campaigns to bring about reform where it identifies a problem.

The link between debt and mental ill health is striking. People with mental health problems are three times more likely to be in problem debt as those without mental health problems. Half of adults in problem debt have a mental health problem. Research by Money and Mental Health found that in England each year, more than 100,000 people in problem debt attempt to take their own life and more than 420,000 people in debt consider suicide. This is an incredibly serious issue.

Several factors contribute to that link between financial difficulty and mental ill health, but one important issue—the subject of this debate—is debt collection letters. They are written in a way that can make people feel that there is no way out of their financial problems, sometimes leading to disastrous and fatal consequences. I will give a couple of brief case studies.

Paul lives with bipolar. Throughout his life he has suffered from mental ill health, which has been compounded by debt problems. When he was on a high, he would go out on spending sprees funded by loans; during periods of depression, he would struggle to pay his bills and often spend money to make himself feel better—it was a sort of escape from the nightmare and trauma he was going through.

Paul said that being hounded by creditors left him feeling trapped and helpless. He tragically made attempts on his own life. Like so many others in debt, Paul received letters from lenders, which are intimidating, often written in complex language and can feature threats of court action right at the top, very prominently. Sometimes people receive such letters from multiple lenders on a daily basis, leaving them feeling trapped in the nightmare engulfing them. Paul says,

“the letters that you get from creditors are horrendous. They were like someone standing in front of me with a knife, so I wanted to get rid of them. I’d just put them straight in the bin or burn them…You feel trapped by your debt, and that you can’t get out—that’s what can drive people to feel suicidal”.

Thankfully, Paul is now in a much better place with support from his family.

I have witnessed people who, when confronted by letters demanding payment, hide away and do not confront the problem, because of the state of their mental health. Sometimes they put letters into cupboards, hoping that the problem will go away. Of course, it does not go away and in many cases the debt escalates, making the situation even worse.

Jerome Rogers sadly took his own life at the age of 20 after receiving two £65 traffic fines, which escalated to £1,000 of debt after the council passed on his debt to aggressive bailiffs. Jerome’s mother Tracey believes that a big factor in his death was a combination of the threatening bailiffs who came to the door and the intimidating letters he received from lenders. Tracey says that if the letters had not been so frightening and Jerome had been able to get the right support when he needed it, he would still be here today. That is one life tragically lost, but there will be many others.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

The right hon. Gentleman gave two powerful examples. This is reality. This is life. People are getting these letters and thinking about committing suicide. After a decade of austerity, things are not improving. Does he agree that it is time that the Government gave new guidelines to stop these letters coming through the door and threatening people? We need to examine this more and I therefore welcome this debate.

[Norman Lamb]

The hon. Gentleman goes to the heart of what I am proposing. I will expand on the point he made.

Debt collection letters, like the ones received by Paul and Jerome, often include complex text, which is capitalised and put in bold. The language can be intimidating to someone experiencing mental ill health. The letters often start with threats of court action. They do contain advice—the purpose is well meaning in terms of the legislative requirements.

However, the wording they are required to use is inaccurate and out of date. It was devised before free debt advice was widely available. Recipients are told to get help from a solicitor, from their local trading standards department or a citizens advice bureau. However, trading standards can only help someone when a company’s behaviour is illegal, not in an ordinary civil situation. Therefore, that advice, in wording required by the Government, is inaccurate and should not be there.

The idea that someone in problem debt should be told in official advice to seek out a solicitor is outdated and frankly ridiculous for many people who would just assume that going to a solicitor is impossible, due to the cost involved. The advice is so out of date because, outrageously, the content of these letters is dictated by legislation that has not been updated for decades. Lenders are legally obliged to include certain pieces of prescribed content, as is laid out in the Consumer Credit Act 1974 and the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983.

The Money and Mental Health Policy Institute’s “Stop the #DebtThreats” campaign calls on the Government to amend the Consumer Credit Act and the associated regulations, to put a stop to the threatening letters. First, the Government should change the prescribed content of lenders’ letters, exactly as the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) suggested. The Government should make these letters more accessible, easier to understand and clearer for people in problem debt.

If the Minister is tempted to say that he is supportive of the principle involved here, but it involves a comprehensive review of the Consumer Credit Act and the whole thing will take a long time, I do not buy it. There is clearly a case for a review of the primary legislation, but the wording of the letter, which is out of date and inappropriate, could be changed quickly through regulations. There is a real danger that we overcomplicate this. Those regulations could be made in a straightforward way quickly, pending a wider review of how we deal with these issues. One sensible idea is to refer the matter across to the Financial Conduct Authority. The step could be taken immediately to get rid of the inappropriate and inaccurate prescribed wording, which simply should not be there and makes things more difficult for people.

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[John Glen]

The right hon. Gentleman rightly reiterates the challenge, and I take it on. At this point, I should also mention the reference he made to the work of the hon. Member for Leeds West (Rachel Reeves) on bailiffs. There is absolutely no excuse for aggressive tactics from enforcement agents, and that is why the Ministry of Justice has launched a call for evidence, looking at the need for an independent regulator. The call closed in February 2019 and the Government will respond in the summer. I am meeting with the relevant Justice Minister just after the recess to press for robust action, so that is very much on my agenda as well. I recognise the right hon. Gentleman’s portrayal of how deeply wrong some of those behaviours are.

[Hugh Gaffney]

Sometimes a letter gets passed on to another debt collection agency and then another, so pressure is being put on individuals all the time. If I remember rightly, each time a letter is passed on more money is added on. I ask the Minister to have a look at that.

[John Glen]

The hon. Gentleman makes a reasonable point, and that is something we need to examine carefully when we consider what needs to happen in this area. I thank the hon. Gentleman for his intervention.

Stakeholder views will be essential to inform the Government’s decision making, and I would welcome the opportunity to meet the right hon. Member for North Norfolk and any other interested colleagues across the House to better understand how this important issue should be addressed as our policy thinking progresses. During my time in office, I have encountered many individuals who have been in financially vulnerable circumstances and I have compassion for the unique challenges they face. Indeed, only last week I welcomed to the Treasury some individuals with lived experience of financial difficulty, to hear in more detail how they had got into those situations.

I would like to take this opportunity to assure the right hon. Member for North Norfolk that reviewing the mental health aspect of the prescribed content in debt collection letters will be top of my list of priorities during this programme of work. The issue requires continued dialogue to understand what the best outcome for these vulnerable individuals would be, and how best to deliver it. Given the letter’s rather terse words referring to a solicitor, which are really not appropriate and could have been written a long time ago, I will reflect on the right hon. Gentleman’s point about the changing nature of debt advice and about how best it can be presented.

That does not mean that those most at risk will not see benefit in the near future. I draw attention to the significant work that has been undertaken to meet the Government’s manifesto commitment of implementing a breathing space scheme, which I alluded to earlier. The scheme will give the most vulnerable consumers 60 days of respite from creditor action, to access debt advice and put their finances on a sustainable footing.

Financial Exclusion: Access to Cash

Hugh Gaffney Excerpts

Tuesday 21st May 2019 Westminster Hall

[Seema Malhotra]

My hon. Friend makes an important point. I agree that this whole debate also needs to be part of a strategy for towns, which are often left out of how progress is made, how policy is implemented and who is the first to benefit when new resources are rolled out. The provision of financial services and ATMs is absolutely vital for ensuring economic progress and the viability of businesses.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

The banks are closing down everywhere and are using the excuse that we can use post offices to access cash. Yesterday it was announced that 1,000 post offices are to go and more to follow. Sub-postmasters are not making the same money as the banks. That is now going to lead to a more cashless society. That, to me, is what the banks are heading for.

[Seema Malhotra]

My hon. Friend’s extremely important point is one I was about to go on to. We have seen this debate previously in relation to post offices, and have then seen post offices become an important part of the strategy for maintaining access to cash—Mastercard and others are also working with them. Research from the Post Office shows that about 44% of small businesses believe that the convenience of cash is essential to their business, and also that they use post offices. Yet, alongside this debate, we see these warnings, and alongside the challenges that the post office network faces, deprived and rural communities will have even poorer access to cash.

Billy McNeill MBE

Hugh Gaffney Excerpts

Monday 20th May 2019 Commons Chamber

[Brendan O’Hara]

How different the course of history could have been had great-uncle Charlie managed to woo Nellie! On behalf of Celtic fans everywhere, I am very glad that he did not.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

As the MP for Coatbridge, Chryston and Bellshill, I know that Bellshill is already talking about erecting a statue to Billy McNeill to recognise the great man. I speak as someone who grew up in Lanarkshire; my brother was born in 1967 and his first words were “Celtic”. I also knew Jimmy Johnstone very well; I knew Jimmy all through his career and all through his life. I knew him through the pub, and through the pub I got to meet a lot of the Lisbon lions. It was an absolute pleasure and God rest them all.

[Brendan O’Hara]

I thank the hon. Gentleman for that contribution. It shows that every one of us in Scotland seems to have just one, two or three degrees of separation; it is often said that it is the largest village in the world, and that is true.

I remember my dad telling a story. When Billy McNeill first signed for Celtic my dad was a sales rep and Billy worked in insurance and he used to meet Billy for coffee in the afternoon. Of course everybody claimed to know Billy McNeill and my dad used to tell the story that he was actually known not as Billy McNeill but as Willie McNeill. We never really believed this, but when he left Celtic to join Manchester City my dad wrote to him, “Dear Willie”, and got a letter back saying, “Dear Charlie, thank you for the letter, best regards, Willie.” So everybody seems to know everybody; the hon. Gentleman is absolutely right.

--- Later in debate ---

[Brendan O’Hara]

My hon. Friend downplays the fact that his dad was a hugely accomplished professional footballer for Greenock Morton.

As I said earlier, my dad was present at Hampden in 1965 to see the start of the all-conquering McNeill era. In 1975, I was lucky enough to be at Hampden to see the last of his 822 appearances, when Celtic beat Airdrie in the Scottish cup final. On Saturday, a whole new generation of O’Haras and I will be back at Hampden, hoping to see our team complete a remarkable “treble” treble. In the year we lost both Billy McNeill and Stevie Chalmers, it is fitting that the players will be wearing the numbers 5 or 9 on their shorts.

[Hugh Gaffney]

Before the hon. Gentleman moves on from 1967, is it not a great tribute that the Celtic fans at Parkhead shine their phones like stars every Saturday during the 67th minute?

[Brendan O’Hara]

Yes, absolutely. It makes the hairs on your neck stand up on those big European nights under the floodlights at Celtic Park. It will hopefully inspire a whole new generation of players.

Finally, our condolences go to Billy’s wife Liz, to his children Susan, Carol, Libby, Paula and Martyn and to his eight grandchildren. Scottish football has lost one of its very, very best, because Billy McNeill was not only a lion of a footballer but also a giant of a man.

Beer Taxation and Pubs

Hugh Gaffney Excerpts

Thursday 28th March 2019 Commons Chamber

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

I thank the hon. Member for Dudley South (Mike Wood) for securing this debate, and I congratulate my local Coatbridge brewery, the Veterans, on its successful launch on Armistice Day 2014. It was built by ex-servicemen, and I visited it recently.

Many years ago, I worked in the pub trade for 10 years as a barperson and landlord, and it was the most enjoyable job. I wish to thank my local, the Windmill Tavern in Tannochside, because it was the customers who made my job so happy. I also thank Gates Bar in Bellshill, where I worked part-time. We had many debate nights when we would be pulling pints and talking politics—multi-tasking.

In those days the pubs were busy. Day and night people were out socialising and enjoying a pie and a pint. Changed days—30 years later we have empty pubs and landlords who struggle to compete with the off-sale market given the price of a pint and the price of socialising. Sadly, although we still love our local pubs, I have also seen a change in the hotel and catering trade. Staff wages are low and zero-hours contracts are used and abused. What really annoys me is when staff tips are taxed, and in most cases managed poorly. In conclusion—in the tradition of last orders—can we look at beer taxation, eradicate zero-hours contracts, and stop taxing the tips?

Santander Closures and Local Communities

Hugh Gaffney Excerpts

Thursday 14th February 2019 Westminster Hall

[David Linden]

Absolutely. That fits nicely with the next point I want to make, which is about impact assessments. The bank concedes that only half of the customers who use the Parkhead branch use online, mobile or telephone banking services. The data concerning digital exclusion in the east end is widely available, so it beggars belief that Santander has overlooked it and still plans to pull down the shutters on a branch that serves some of the most vulnerable and isolated people in the country.

I want to turn now to the issue of reliance on the post office network to deliver banking services. Having asked the Minister about it during Treasury questions a couple of weeks ago, I can almost anticipate his response: that Santander customers can just do their banking at the post office. I think my hon. Friend the Member for Lanark and Hamilton East (Angela Crawley) felt frustration about that during her Adjournment debate last week.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

I have a background in the Post Office. All we see is closure after closure, and now that WHSmith—the worst retailer on the high street—is taking the contract, it could also close post offices. The excuse given by the banks—that if they close down, people can use the post office—needs to be looked at seriously.

--- Later in debate ---

[Neil Parish]

I could not agree more with the hon. Gentleman, because I just do not think that enough thought is being given to this process. Naturally, it says in this letter I received from Santander that its customers in Axminster are able to go to the post office for cash, to put in cheques and to make withdrawals. Again, however, it is not like having a banking service. That is the other reason that I wanted to speak in this debate.

My hon. Friend the Member for Carmarthen West and South Pembrokeshire (Simon Hart) made the point that we should not just highlight Santander. If I go back to the issues in Axminster, we have had branch closures there for Barclays and NatWest, and the one we have left is Lloyds. Let us hope that Lloyds stays in the town and indeed I hope that all the Santander customers pile along to Lloyds. As Members well know—putting my farming hat back on—it is not always easy to change banks. I used to have a very large overdraft with NatWest, and they did not always want me to transfer it. When a person has a business, they want some personal attention; they want to be able to see somebody; and they want to get some sort of decision on not only their everyday banking, but their business building or their business. That is just not there anymore.

I wonder, as the banks contract, whether there is one bank out there—they all advertise that they are going to listen to us more and have more local services, but they all close them—that will listen to this debate and think, “Perhaps we can work in the other direction. We will offer some sort of personal attention and look after people and businesses, and actually be there. We might open on a Saturday morning after 12.30.” Most of us work, but the banks close their branches at 12.30. Some of my Axminster constituents can go to Honiton, which is quite difficult to get to but is not that far away, but that branch will be closed at 12.30. What is the point? If a bank is going to provide a service, why does it not open and provide it?

[Hugh Gaffney]

I thank the hon. Gentleman for making that point, because we did have a network: it was called the Crown post offices. They are closing them down. If the banks want to shut down, give us work in the post offices. Let us stop the closure of Crown post offices, get them reopened, and give the Communication Workers Union the work.

[Neil Parish]

The hon. Gentleman is attempting to entice me down a route that I do not quite want to go down, but I agree with him in many respects. Post offices provide a great service, and if we are to lose them as well, that is a real problem. However, at this moment in time I am in full flow about the banks, so I ask the hon. Gentleman not to put me off that particular subject.

--- Later in debate ---

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Rosindell. I thank my constituency neighbour, the hon. Member for Glasgow East (David Linden), for securing this debate.

In my constituency of Coatbridge, Chryston and Bellshill, we have seen the loss of local branches in recent years. Recently, Stepps, Tannochside and Bellshill have all seen their local Royal Bank of Scotland close down, despite the fact that the Government own the majority stake in RBS and could have kept some of those branches open and protected those jobs. We have also seen the collapse of Scotland’s oldest savings bank, the Airdrie Savings Bank, which led to the loss of branches in Coatbridge and Bellshill.

The loss of those branches in my constituency are just a snapshot of what I have heard today and what is happening throughout the whole country. I repeat that the rot started with the Crown post office closures. Now Santander says, “Let’s turn to the Post Office. It can help us.” Too little, too late.

[Mr Sweeney]

My hon. Friend is making a very important point about the post offices. One of the justification for the Santander closures was, “Don’t worry. The bank service can transition over to the post office.” The Springburn post office has been put up for franchising and will be in the back of a grocery store somewhere. That is hardly a place that someone is going to go to take out a mortgage, is it?

[Hugh Gaffney]

That is exactly what is happening up and down the country. I have seen many fighting for people’s jobs in Crown post offices, which have good terms and conditions that are not matched by WHSmith.

I asked the Chancellor in a written question whether the Treasury had made any assessment of the impact of Santander’s decision to close branches on consumers’ access to money. I received a reply from a Minister, who stated that the Treasury had made no assessment, and that it was a commercial decision for Santander. How often have we heard that? I would like the Chancellor and his Treasury Ministers to tell the affected communities that the Government have made no efforts to determine the impact of the proposed branch closures on their ability to access their money. That is their written answer: no effort, no access. That is shameful, but it is an all-too-common attitude for this Government.

The impact of the branch closures has been worsened by the loss of cashpoints. Figures released this week by Which? show that 280 cashpoints were lost across Scotland in 2018, 203 of which were free to use. Despite the growth of online and telephone banking, 73% of the public continue to use cash frequently to pay for goods and services. My children still use cash; the elderly still use cash. This is not a cashless community yet. The branch closures and the loss of cashpoints only make it harder for people to access their money. The branches and cashpoints are being lost in the poorest and most vulnerable communities in the UK, as my hon. Friend the Member for Glasgow North East (Mr Sweeney) pointed out, and as many others up and down the country know.

Which? has asked the Government to appoint a new regulator with sole responsibility for cash infrastructure. I think that is a much-needed step forward to ensure that consumers and businesses can continue to access cash. I urge the Government to take action by creating a regulator, so we can begin to reverse some of the devastating effects that our communities have experienced because of the branch closures and the loss of cashpoints. If they are not listening today, when will they start listening?

Communities: Charities and Volunteers

Hugh Gaffney Excerpts

Wednesday 13th February 2019 Commons Chamber

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

I refer Members to my entry in the Register of Members’ Financial Interests regarding my position as a councillor for Thorniewood on North Lanarkshire Council.

In all our communities, charities carry out work on a voluntary basis, from supporting the elderly to assisting families who have fallen on hard times. In many cases, they are only able to do so because of the dedication of volunteers and the generosity of the public. I often ask myself where we would be without volunteers. I look at the work that charities do in my constituency for the good people of Coatbridge, Chryston and Bellshill, and it reaffirms my belief that they are a key part of the very foundations of our society.

I look at the fantastic work and dedication of the volunteers at Coatbridge food bank, which I helped to grow. It exists because of the Tory austerity and welfare reforms like universal credit. Indeed, the Secretary of State for Work and Pensions herself now accepts that there is a link between the increasing use of food banks and the botched roll-out of universal credit. Isn’t it a shame that some volunteers are getting sanctioned for helping?

Considering the work of local charities, I am not surprised that the Charities Aid Foundation found that 80% of the public believe that charities play a vital role in the UK. It saddens me that our charities are now facing difficult circumstances because of the actions of this Government; just look at the way they are handling Brexit. The charity sector currently relies on £250 million of funding from the EU—funding that the Government said they would match through the UK shared prosperity fund after Brexit. Just like so many other promises made by this Government, it has been broken, leaving the charity sector in a state of deep uncertainty about its future funding.

Charities find themselves gagged because of the Government’s lobbying Act—the Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Act 2014. Charities do important work in highlighting issues within our society and across the world. They campaign, build public support for a cause and take their arguments to MPs to seek change. The lobbying Act prevents charities from speaking out and doing this important work. Indeed, the Government have used gagging clauses to prevent charities from speaking out—otherwise they risk losing contracts from Government Departments. The Charities Aid Foundation found that 67% of people felt that charities were best placed to speak for the disadvantaged, yet they are being denied the chance to do so because of the lobbying Act. It should be abolished, and the next Labour Government will ensure that it is consigned to the dustbin of history.

It is worth reflecting on the increasing need for charities in our society. Charities are assuming greater responsibilities in providing support for our elderly, the disadvantaged and others who would once have used services offered by the Government. But the Government’s continued pursuit of austerity has led to a loss of local services and charities having to plug the gaps with decreasing funds at their disposal. In England, we are seeing council cuts of 60%, and Scotland is no different. We have austerity in Scotland. We are losing community centres, volunteer groups, libraries, and other much-needed services. This year, my own council has been asked to find £30 million. It saddens me that the Government have cut vital local services without pausing to think of the consequences or of whether the charity sector would be able to step in to cover the gaps in public service provision.

As I said, I am the councillor for Thorniewood on North Lanarkshire Council. I receive a salary that I donate to local charities, groups, associations, and anyone I can help in their hour of need. In a time of austerity and increasing pressure on charities, I want to do my bit to ensure that their vital work can continue across my constituency for the good people of Coatbridge, Chryston and Bellshill. I have been pleased to help many charities—in particular, Bumblebee Babies, which does so much work to support parents of stillborn children. That group nearly closed and finished because of a lack of funding.

I will continue to support charities whenever I can. I call on this Government to provide the support that our charities need nationally as well. It is time to stop the cuts to their funding. It is time to stop gagging them in their campaign efforts. It is time to stop leaving them in uncertainty about their future after Brexit. It is about time that our charities were properly supported so that they can continue the vital work that they do in all our communities. As I said earlier, where would we be without the volunteers?

ATM Closures

Hugh Gaffney Excerpts

Tuesday 4th December 2018 Westminster Hall

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

I am grateful to you, Mr Hollobone, for allowing me to speak in this important debate. It was a pleasure to be here this morning to listen to the important speech made by my constituency neighbour and hon. Friend the Member for Rutherglen and Hamilton West (Ged Killen). I support his continuing efforts to stand up for the most vulnerable people in our communities through his campaigning on this important issue.

My hon. Friend has already outlined many of the concerns. I will not repeat all the arguments, but will focus on a few key areas: charges, closures and the reliance of many people on ATMs as essentially “the last bank in town” on main and high streets in towns and villages in all four nations of the United Kingdom.

Since my election to this place in 2017, a number of issues have been raised with me in my role as the local MP. One is the impact of Tory austerity on the people I represent in Coatbridge, Chryston and Bellshill. That impact has been made worse by the fact that many of the ATMs available in our community charge residents to access their own money and by the closure of three RBS branches. Forcing people to pay to withdraw their own money is crazy and, in these tough times, so unfair and unjust. I call on ATM providers to think again about the impact on those who have to survive on low incomes and low wages. Those people have to turn the pennies inside out and the pounds upside down to survive, to keep a roof over their head and to keep their families warm and fed. We all have a duty to speak up for them in the House.

The figures speak for themselves. From January to July 2018, 1,300 free-to-use ATMs disappeared, at the disgraceful rate of about 250 a month. According to analysis by Payments UK and the Bank of England, the number of people who rely almost entirely on cash has risen by more than half a million in the past two years to 3 million. Like me, my hon. Friend the Member for Rutherglen and Hamilton West has raised this issue in Parliament, through his private Member’s Bill introduced under the ten-minute rule, which has my full support. I will continue to work with him and others on the Opposition Benches on these issues.

The issue of ATM closures goes to the heart of the debate this morning. My hon. Friend was very clear in his speech that we cannot sit back and watch the programme of closures. I thank Which? for its research on this issue, which has shown that the number of closures of free-to-use ATMs is highest in rural areas. That stands to reason: ATM providers think that fewer people will complain and make a big deal of it. Well, they cannot get away with that, not on my watch, not on my hon. Friend’s watch and not on the Opposition’s watch. I know that most hon. Members here today will not allow it, either.

All colleagues will know that Coatbridge, Chryston and Bellshill is made up of towns and villages across North Lanarkshire in central Scotland. We have main towns and small villages, and I am proud to represent every one of them and all those who live in them. I am determined to stand up for their right to access their own money, in their own community, free of charge.

This debate speaks to the crisis facing our high streets and main streets. All Members of the House will recognise, as they go about their business in their constituencies, that an increasing number of pubs, businesses, post offices and banks are closing. That is why I am hugely supportive of Labour’s five-point plan to support and save Britain’s high streets, outlined by the shadow Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Salford and Eccles (Rebecca Long Bailey), at Labour’s recent conference in Liverpool. The five points are, first, to ban ATM charges and stop bank closures and, importantly for me, stop post office closures; secondly, to improve local bus services and provide free bus travel for under-25s; thirdly, to deliver free public wi-fi in town centres; fourthly, to establish a register of landlords of empty shops in each local authority area; and, fifthly, to introduce annual revaluations of business rates, ensure a fair appeals system and review the business rates system to bring it into the 21st century.

For many people in my area, the ATM is indeed the last bank in town. If someone does not have a car to travel to the closest branch of their bank, or if they cannot afford the cost of bus travel, they rely on access to an ATM to be able to pay bills and survive. Members of the House will know that Crown post offices are branches directly managed by Post Office Ltd, which is wholly owned by the Government—or should I say by the people who elected every Member of this House. Let me take this opportunity to pay tribute to the postal workers who campaigned in Scotland, England, Wales and Northern Ireland on Saturday for the national day of action to save our post offices. I was proud to campaign with postal workers in Scotland; I am proud of my brothers and sisters in the Communication Workers Union.

As part of the “modernisation” programme, Post Office Ltd has been involved in the privatisation of Crown post offices. The Post Office closes down the Crown post office and looks for a retailer to take over the counter. We are paying £31 million—it is Government money—to subsidise our post offices. That is not good enough. I am delighted that the next Labour Government will stop the franchising of Crown post offices by introducing a new condition into the Post Office’s funding agreement—that no further Crown post office branches will be closed. That will be an important step forward and is so necessary.

I thank my hon. Friend the Member for Rutherglen and Hamilton West for his leadership on this issue and for introducing the debate today. I will fully support him as he continues his endeavours.