Co-operatives, Mutuals and Friendly Societies Bill

Debate between James Murray and Matt Western

3rd reading
Friday 24th February 2023 Commons Chamber

[James Murray (Ealing North) (Lab/Co-op)]

I begin by warmly congratulating my hon. Friend the Member for Preston (Sir Mark Hendrick) on his important Bill, which receives its Third Reading today. My hon. Friend has worked tirelessly to build cross-party support for the Bill, the success of which has been evident today. I also congratulate him on securing Government backing for this legislation, and for that support I extend my thanks to the Minister.

As we have heard during debates on the Bill, including today, Members across the House see the huge value of co-operatives, mutuals and friendly societies. There are now over 7,000 co-operatives operating in the UK, with a combined turnover of almost £40 billion, and almost 235,000 people earn their livelihoods directly through co-operatives trading in a range of different sectors.

Co-operatives have proven resilient in the face of hardship. Despite the covid-19 pandemic and the economic challenges resulting from the national lockdowns, the co-operative and mutual sector grew by an impressive £1.1 billion in 2020. The resilience of co-operatives is also evident in the higher levels of productivity that can result from employee ownership. In the United States, for instance, the National Centre for Employee Ownership tracked the performance of more than 57,000 firms and reached the conclusion that employee ownership can greatly improve a business’s productivity and its chance of success. However, despite the fantastic contribution that co-operatives and mutual societies make to society and the economy, outdated legislation has prevented the sector from reaching its full potential in the UK.

Given their unique structure, co-operatives, mutuals and friendly societies are often excluded from traditional investment methods. Today, less than 1% of businesses in the UK are co-operatives. By comparison, as another hon. Member mentioned, Germany’s co-operative economy is four times the size of that of the UK. In Emilia-Romagna, Italy, co-operative enterprises generate close to 40% of GDP, and the province has the lowest socioeconomic inequality of any region in Europe.

Sadly, as we know, the sector is under threat from demutualisation. There was celebration across the co-operative movement last year when members voted to reject the controversial takeover of the insurer Liverpool Victoria by the private equity firm Bain Capital. I want to take this opportunity to recognise the work of my hon. Friend the Member for Harrow West (Gareth Thomas) and other in this House in protecting the mutual status of that historic firm.

[Matt Western]

My hon. Friend just cited statistics about Germany and Italy, but does he agree that one of the interesting things is the culture of mutuals and co-operatives? Their thinking on financial investment and return is much longer term, and that is surely to the benefit of investors.

[James Murray]

My hon. Friend is absolutely right to point out some of the wider benefits of employee ownership and involvement, including longer-term thinking, greater investment and greater productivity. It is a real showcase for the value of co-operatives, friendlies and mutual societies, which Members from across the House have come together today to recognise.

Demutualisation remains a real and present threat to the sector. The provisions in the Bill are crucial as they will help to ensure that mutual capital is maintained for the purpose for which it is intended. Beyond this Bill, we believe that further support, such as giving co-operatives more freedom to issue perpetual capital to fund investment, would help to secure the future of the sector. We recognise that today is a significant, important step forward, and we are very pleased to give this Bill our full support.

Non-domicile Tax Status

Debate between James Murray and Matt Western

Tuesday 31st January 2023 Commons Chamber

[James Murray]

We were not increasing taxes on working people when we were in government. The hon. Gentleman can start looking at the record 13 years ago, but it is high time that Members on the Government Benches took responsibility for what they have done in government—for the low growth, for the high taxes on working people and for the fact that our public services are crumbling.

[Matt Western (Warwick and Leamington) (Lab)]

On that point, to recall what happened in 2010, one of the first things that the incoming Conservative coalition Government did was to increase VAT from 15% to 20%. Who did that hurt?

[James Murray]

As my hon. Friend reminds us, increasing taxes on working people has long been a hallmark of the Conservatives. That has led us to a situation where we have the highest tax burden on working people in more than 70 years.

National Insurance Contributions (Increase of Thresholds) Bill

Debate between James Murray and Matt Western

2nd reading
Thursday 24th March 2022 Commons Chamber

[James Murray]

We have made it very clear that we believe in a fair taxation system. The key point for us in the Chancellor’s package is that he is raising taxes for working people, while ruling out measures such as our one-off windfall tax on the profits of North sea oil and gas producers. That is not a fair taxation system.

The inescapable truth is that whatever the Chancellor puts on his Instagram account, he has left Britain facing the highest tax burden in 70 years. As Paul Johnson, director of the Institute for Fiscal Studies said yesterday:

“almost all workers will be paying more tax on their earnings in 2025 than they would have been paying without this Parliament’s reforms to income tax and NICs, despite the tax cutting measures announced today.”

The Institute for Fiscal Studies has calculated that median earners on around £27,500 can expect, even after the increase in national insurance thresholds, to be £400 worse off in the coming financial year. The Office for Budget Responsibility has confirmed that this year will see the biggest hit to incomes on record. That will be the true legacy of this Chancellor, not the phoney tax-cutting image that he has been so desperate to cultivate.

Although today we are debating national insurance thresholds, and the impact that will have on people’s lives, there is much more that the Chancellor simply failed to address in his spring statement. We have been repeatedly pushing the Chancellor to levy a one-off windfall tax on North sea oil and gas producers’ profits, to help fund a one-off cut to people’s energy bills. Our plans would cut everyone’s bill by £200 and would do so by £600 for the 9 million households facing the toughest squeeze.

[Matt Western (Warwick and Leamington) (Lab)]

My hon. Friend is making a powerful speech. It is worth putting that last point in context. The chief executive of BP made it clear that there absolutely was a windfall: the company had become a “cash machine” because of the massive rise in revenues resulting from the significant increase in the price of a barrel of oil. There is a huge opportunity to take a windfall tax now. Does my hon. Friend agree that the Government should also have looked at the supermarkets during the pandemic?

[James Murray]

My hon. Friend is absolutely right that there is a huge opportunity to levy a one-off windfall tax on North sea oil and gas producers’ profits. Yet there was no mention of such a tax in yesterday’s statement.

--- Later in debate ---

[James Murray]

As the hon. Gentleman knows, his party has been in power for the past 12 years. We have set out clearly that we would end the delay in new nuclear power alongside introducing greater onshore and offshore wind power and solar energy.

[Matt Western]

On that point, the Labour Government were the first to put in place the Climate Change Act 2008—that is, the first globally to introduce legislation that would address the need to switch to a more renewable energy sector. I remind Government Members that the Labour Government put in place the zero carbon homes legislation, which was torn up by the coalition Government. If that had still been in place in 2016 to 2021, 1 million new zero carbon new homes would have been built, which would have reduced our energy need.

[James Murray]

I thank my hon. Friend for making an important point about the last Labour Government and drawing attention to the lack of action from this Government in pursuing investment in renewable energy sources, which would cut energy bills and give us greater energy security and independence.

We need a Chancellor who is prepared to levy a one-off windfall tax to help cut people’s energy bills now and invest what is needed to cut bills in the long run. Instead, yesterday, we saw neither.