Delivery of Public Services
Jamie Stone Excerpts(2 years, 3 months ago)
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Mr McFadden
I detect a pattern with these interventions. They seem to be saying that the problem is everyone’s responsibility except the Government’s. There is no escaping 12 years in office.
There are two issues at the heart of this: workforce and technology. Staff shortages are common in many areas. The unemployment figures have fallen, but so too has the overall number of people in employment. More than half a million people have left the labour market since the pandemic. They are from all age groups, but the biggest group is the over-50s, and their biggest reasons for leaving the labour market are ongoing health issues and caring responsibilities.
This is where the delays and backlogs become a vicious circle. I have already mentioned that when people with medical conditions cannot get a new driving licence approved, it can prevent their return to work. The Access to Work programme is there to help people with disabilities into work, but people face delays of up to 12 weeks in their application being processed, and the waiting list for decisions has quadrupled over the past year. That holds people back from taking up jobs and makes the staff shortages worse.
The NHS employs some 1.2 million people, but it went into the pandemic with 100,000 unfilled vacancies. We have argued for a forward plan for NHS staffing, and for training so that the vacancies can be filled. That was supported by the cross-party Health and Social Care Committee, but fiercely resisted by the Government. I have to say to the Minister that looking the other way will not make the workforce issues go away. Why are the Government so resistant to the forward planning needed by the NHS?
The question is how we make the most of our potential workforce, and help those who could go back to work to do so. Many people in this country are suffering from long covid. There are people with mental health issues, and people for whom childcare costs are a barrier. We support an expansion in mental healthcare, so that we get support to those who need it within a month, and we support mental health hubs in our local communities. More breakfast clubs and after-school activities would not only be good for children but would help parents get back to work, too.
The point of all this is that we should use the talent and energy of everyone who can make a contribution, and address any barriers to work that they face, but that is not the Government’s response to the backlogs; they have proposed staffing cuts of 20%. How will that help anyone to get a passport, driving licence or health treatment quicker, or get their case to court sooner? Is it really the best that the Government can come up with? Is it even a real response, or just another initiative thrown up to provoke a debate that distracts attention from the real issues that people face?
The issue is not just about the workforce; it is also about using innovation and technology to make public services better for the public. Covid has been described as the great acceleration. It was a time when years of change were compressed into months—in education, in the way we work, in the way we shop and pay for things, in accessing healthcare and so on. The question is how we make the most of what we have learned, and of all the other rapid changes in daily life that are powered by technology, to reform our public services for the future. Our ambition should not be just to return to where we were in 2019; it should be to improve, so that we can have high-quality public services for all.
We already knew that the Conservatives were running a high-tax, low-growth economy—we have said that many times—but the backlogs that I have outlined in public services, in area after area, show that it is also a high-tax, low-delivery economy. We have the highest tax burden since the 1950s, but people cannot get a passport or an appointment with a dentist. That is simply not a good enough deal for the British public.
The Prime Minister says that he wants another two terms in office, but our public services cannot afford another two terms of backlogs and chaos. This Government are not really governing any more. They are simply campaigning.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
My apologies to you, Madam Deputy Speaker, for attending the start of this debate tardily. Does the right hon. Gentleman agree that there is a Scottish dimension? We talk about the number of Governments we have had. Today, pregnant mothers have to make a round trip of more than 200 miles from Caithness to Inverness to give birth. Health services have gone backwards in my constituency, so all that is being said is also relevant to the Government north of the border.
Mr McFadden
I am glad that the hon. Member had the opportunity to make that point, whether he is wearing a tie or not.
The sole purpose of the Government is the survival of the Prime Minister. They have trashed standards in public life, as we have seen; they have damaged our standing in the world; and they are now trashing service delivery. When people pay the price for Government dysfunction in constant delays and backlogs, which have a damaging effect on quality of life; when the things that we used to take for granted become an endless slog and a debilitating battle; and when all this comes at the price of broken tax promises, people conclude that they cannot rely on the Prime Minister and on this Government. That is what is happening. As long as he and they remain in office, the chaos that has led to Boris Johnson’s backlog Britain will continue.
Cost of Living: Fiscal Approach
Jamie Stone Excerpts(2 years, 4 months ago)
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Dan Jarvis (Barnsley Central) (Lab)
I beg to move,
That this House has considered the fiscal approach to tackling rises in the cost of living.
It is a pleasure to serve under your chairship, Mr Twigg. I am grateful to see so many Members present, although they appear—almost without exception—to be on the Opposition Benches. It is good to see the Minister and the shadow Minister in their places. I want to put on the record my thanks to Unison, which is working tirelessly to help its members through these toughest of times, and to Anna Birley, for her efforts with the research I will be quoting shortly.
It is not my intention to speak at great length. I am aware that colleagues wish to contribute and I want to ensure they get the opportunity to speak up for their constituents. However, before I begin, I would like to say a few words about the tone of the Government’s response to this crisis—not just for the next 90 minutes, but beyond. This is the most serious issue facing our country. Some of my constituents in Barnsley Central are facing an emergency, and the Government are providing nowhere near enough relief.
I want to share the words of a working single mum who contacted my office as an example of the indignity, pain and sacrifice happening up and down the country right now:
“I have not eaten for 2 days due to saving as much as possible for my son to get by until payday. I honestly can understand why so many people feel there is no other way than to end their life. It is humiliating to beg for food.”
She does not want Ministers telling her to work more hours when British workers already put in the longest shifts in Europe. She does not want Ministers telling her to buy non-branded food on the weekly shop when people are so desperate that baby milk is now being security-tagged in supermarkets. Most of all, she does not want Ministers telling her that the Government cannot ease her pain when that is simply not the case.
We are all aware that the effects of this crisis are almost boundless, but I will focus my remarks on the impact on public sector workers. Barnsley was left devastated by the pandemic. The suffering endured will live long in our memory, but so too should the resolve of those who pulled us through—not least our NHS staff, our carers and our educators. They are too often taken for granted, but their true value was there for all to see during our darkest hour. How quick we are to forget.
Unison research found that two in five health workers have had to ask family or friends for financial support in the past year. Roughly the same number are taking on extra work just to make ends meet. Nearly every member of school support staff that Unison surveyed—96%—was worried that they did not have enough cash to cope with the rising cost of living, meaning that a quarter have had to take on a second or, in some cases, third job.
The treatment of those on whom we relied so heavily and so recently is unacceptable and untenable. It is unacceptable because they deserve better. They paid their dues 100 times over, and the Government need to do right by them. It is untenable because it is exacerbating a staffing crisis. Public sector pay is lagging behind the private sector, and the long-term effect could be severely detrimental to services.
Take our NHS as an example. Already, 500 nurses and midwives quit every single week. We are at risk of losing thousands of low-paid staff because of that gulf in pay with the private sector. While Morrisons guarantees workers £10 an hour, there is an ad for a porter on the NHS website for £9.65 an hour. While UPS pays drivers more than £16 an hour, the NHS pays just £10 an hour. Public service workers have already endured more than a decade of pay restraint, and it cannot continue. Public sector workers need a pay rise that reflects not only the cost of living crisis, but their true value to wider society.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
The hon. Gentleman is making an excellent speech. The public sector workers in my vast, remote constituency underpin life—I am thinking of health workers, people who keep the roads clear and everyone else. Given the sheer distance involved, however, everything we buy up in my part of the world, from a bar of soap to a washing machine, is that much more expensive due to the cost of getting the stuff there. However, these people are on similar rates of pay to those mentioned by the hon. Gentleman. Does he agree that, in addressing this hugely important issue, the remote location of parts of the UK, such as the west country or Wales, should be taken into account?
Dan Jarvis
The hon. Gentleman is fortunate to represent a beautiful part of our country. There are some particular pressures on the rural economy, and he is absolutely right to highlight them.
An NHS worker in Barnsley with two decades of service recently contacted me to say that 63% of the meagre pay rise she received went back into the Treasury coffers because she was on universal credit. She said:
“Having worked throughout the pandemic, pushing my children from pillar to post as after school clubs and usual childcare arrangements were cancelled, so that I could work on the front line—often with COVID positive patients—please can you tell me how the government can morally justify this?”
Perhaps the Minister can try to justify it. If not, will she outline what progress the Treasury has made in making the funds available for a long overdue and much deserved pay rise for those who quite literally risked their lives for us?
Soundings from No. 10 suggest that several Ministers, including the Prime Minister, are pushing for further public service pay restraint, but wage inequality is going through the roof. Research by the High Pay Centre reveals that the ratio of chief executive officer pay to that of medium earners is 63:1—almost doubling in a year—so it is telling whose pay Ministers are willing to restrain. By giving porters in our NHS enough money to put enough food on the table, the Government would protect public finances by avoiding a staffing crisis. Awarding a fair pay rise is morally and, critically, economically the right thing to do. Problems are being caused not just by what our key workers are seeing in their payslips each month, but by what is being taken out by stealth—the cost of working.
I have two suggestions for the Minister, both of which would lessen the burden on key workers and have an immediate impact. The first is about mileage rates. According to a survey by Unison, three out of four health workers who use their cars for work say that the current mileage rates do not cover prices at the pump. Care workers, environmental health inspectors, social workers and community healthcare staff are all out of pocket for doing vital work. Some 9% report that high petrol prices and out-of-date mileage payments mean that they have had to cut down on patient visits. More than half the workers at one South Yorkshire hospital say that mileage payments not covering costs is having a severe financial impact on them.
Her Majesty’s Revenue and Customs is responsible for setting approved mileage rates, but they have not been updated since the 2011-12 tax year. National Joint Council rates for local government workers have not changed since 2010, and NHS rates have not been updated since 2014. Ending the mileage rates freeze would put an average of £150 back in the pockets of workers over the course of a year.
The Minister will no doubt point to the Chancellor’s 5p fuel duty cut, which—let’s be honest—is modest, but some retailers stand accused of failing to pass on half that amount. Petrol and diesel prices are at record highs, so more needs to be done. Will the Minister provide an assurance today that the Treasury will conduct an immediate review of mileage rates—a review that would encourage and include provisions for the NJC and the NHS to do the same?
My second suggestion is on car parking fees. Not everyone can use public transport to get to work. Between a quarter and a third of the healthcare workers Unison spoke to in South Yorkshire use a car because of the lack of public transport. That is what makes reintroducing hospital car parking charges so wrong. Three out of five staff at one South Yorkshire hospital said that the reintroduction of car parking charges will have a high or extremely high impact on them financially.
David Linden (Glasgow East) (SNP)
It is a pleasure to serve under your chairmanship, Mr Twigg. As I am sure other Members will do, I pay tribute to the hon. Member for Barnsley Central (Dan Jarvis) for securing this debate and setting the scene so eloquently. I also pay tribute to Unison for its work on the issue. Most of us will have seen the briefing note that came out; I commend everything in it. As the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) made reference to hospital car parking charges, he will be aware that it was the SNP Government in Scotland who lead the way on that—not helped by private finance initiative contracts organised by the previous Scottish Labour Executive. I will not seek to be party political any further in the course of this debate.
Something that I have found difficult over the last few months, particularly since the beginning of the Ukraine crisis, has been people talking about the cost of living crisis as if somehow it is a new thing; it is not a new thing. It has been exacerbated by 12 years of Conservative austerity. In many respects, we are right to call it a crisis, but it is something we have been dealing with for quite some time. I would argue that it is not just a cost of living crisis. Ultimately, at its most fundamental level, it is a low pay crisis.
The UK Government like to talk about the living wage, and I am sure we will hear the Minister do so, but we know that to refer to it as a living wage is to inadvertently mislead the House. It is not a real living wage. It does not reflect the true cost of living for many of our constituents, and it is nowhere near the benchmark set by the Living Wage Foundation.
The UK Government must look at whether that real living wage is fit for purpose. As most of us know from our constituency postbags and surgeries, it is definitely not. The Government should also look at the pay discrimination baked into wage rates in the UK. The reality is that 16-year-old apprentices are still being paid roughly only £4 an hour. A young person on £4 an hour certainly does not get cheaper products at the supermarket as a result of their age. They should not be getting a lower rate of pay.
There are other things we can do. We should absolutely look at a windfall tax. That has become incredibly topical in this place, with people talking about putting a windfall tax on the likes of Shell and BP. I would like them to pay a windfall tax. There is no doubt that they are doing immensely well out of the current crisis. Why not also consider an additional windfall tax on supermarkets and Amazon? We know that the future of work is changing and that our high streets are struggling very much. That is a natural consequence of consumers using big, out-of-town supermarkets and getting goods delivered from Amazon. Given that they are doing very well out of this, perhaps we should consider putting a windfall tax on them as well.
The UK Government should also increase benefits in line with inflation. I was really disappointed when they legislated for a real-terms cut to benefits earlier this year. The people whose benefits are being cut are among the poorest and most vulnerable in society. This is no time to leave them behind. They do not have the disposable income to make a slightly more difficult choice at the supermarket. Let us increase benefits in line with inflation.
If the Scottish Government, who have a fixed budget, can uprate benefits by 6%—I accept that that is still below inflation—the UK Government, with all of their borrowing powers, should be able to do so, too. In reality, the biggest difference between the UK and the Scottish Government is that the UK just puts it on borrowing.
We should also reinstate the pensions triple lock. Pensioner poverty is on the rise and we do not talk anywhere near enough about it in this House. The fact that we have one of the lowest state pensions in western Europe should be a stain of embarrassment for this Government. They like to go around talking about being a global Britain, while pensioners are literally having to choose between eating and heating. I ask the Minister to reflect on that.
We should also reinstate the £20-a-week uplift to universal credit in the social security system. The Government were right to concede at the beginning of the pandemic that social security was inadequate in its current form. It was inadequate in March 2020, and, by the way, it is still inadequate now. Taking that £20 a week away from families means that they are losing £1,000 a year when they can least afford it.
Jamie Stone
Carers for the elderly, the infirm and the sick are crucial in remote parts of Scotland such as my constituency. I have carers pulling out, giving up and calling it a day right now. I am sure the hon. Gentleman agrees with the hon. Member for Barnsley Central (Dan Jarvis) that we must look again, as a matter of extreme urgency, at—how shall we put it?—payments for carers and the regime for taxation on mileage for them and other health workers who have to travel. It is a crisis right now.
Derek Twigg (in the Chair)
Order. I remind Members who take interventions to bear in mind that I am trying to keep speeches to around five minutes.
Financial Statement
Jamie Stone Excerpts(2 years, 6 months ago)
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Rishi Sunak
The national living wage is actually going up by 6.6%—it is one of the highest increases we have seen in the national living wage, and it will mean that someone working full time on the national living wage earns £1,000 more this year.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
The village of Altnaharra in my constituency is the coldest place in the UK every single winter. A great number of households in my constituency rely on domestic fuel for their heating—they have absolutely no choice. Right now, they are faced with crippling bills landing on their doorsteps. I do not want the Chancellor to feel that he has to repeat himself, but could I ask in the spirit of good will and co-operation whether he will agree to my meeting some of his ministerial team to look at different ways in which we could tackle this problem, which is hurting my constituents, in the coldest part of Britain, very badly indeed?
Rishi Sunak
I am always happy to hear suggestions from the hon. Gentleman and, indeed, to arrange a meeting for him. I wanted to make sure that those off the gas grid still benefited from the energy package that we put in place in February, and it will work on electricity meters, so that will happen. As a rural MP myself, I appreciate the issue that the hon. Gentleman raises, and I will happily arrange the meeting for him.
Cost of Living Increases
Jamie Stone Excerpts(2 years, 8 months ago)
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Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
The hon. Gentleman represents a rural constituency, as I do; I represent one of the vastest and most remote constituencies in the UK. As well as household costs, if the price of petrol and diesel goes up, as we are pretty sure it will, that will in turn impact on my constituents, some of whom are trying to work on a very tight, balanced budget. If they get the household heating fuel bill and the extra cost of getting the kids to school and everything else, that will be a pretty nasty vicious circle.
Ben Lake
I thank the hon. Gentleman for that intervention. Like him, I represent a rural constituency, where concern about rising petrol and diesel costs is bearing down heavily on families. For people in Ceredigion private cars continue to account for the overwhelming majority of commutes. Indeed, in Wales as a whole about 80% of people have to commute by car. Sadly, for people in Wales, and particularly in rural areas, there is no short-term alternative to using private cars, so those rising fuel costs are having a devastating impact. Of course the long-term solution would be greater investment in public transport infrastructure, but, as an MP representing a rural area, I know how devastating cuts to bus services have been in the last decade so, sadly, for the time being using the bus instead of a private car is not a viable option.
The crisis has also demonstrated the need for longer-term action, such as action to boost productivity, and green solutions to help address the energy supply emergency and in so doing to alleviate stagnating living wages. We can ease the crisis in the long term by reducing energy demand. We have discussed that often in this place and debates have also been held in the Senedd in Cardiff. If we reduce fuel and energy demand, we also reduce fuel bills.
A good place to start is with the simple measure of improving household heating efficiency. At the autumn Budget I called on the Chancellor to make a £3.6 billion investment over 10 years, in conjunction with the Welsh Government and the private sector, to improve home insulation in Wales. It is well-documented that the quality of Welsh housing stock is poor by both British and European standards, and its energy efficiency is, sadly, a sight to behold. Introducing measures to improve the heat and energy efficiency of our homes would not only boost employment in areas that are desperately in need of levelling up through the retrofitting schemes, but would also address fuel poverty. A report by the Future Generations Commissioner for Wales has suggested that with such a package of investment over 10 years we would be able to end fuel poverty in Wales, producing average annual savings of £418.
Jerome Mayhew
I am grateful to the hon. Gentleman for that intervention. The Government are on a journey to get the national living wage to two thirds of the median income, and they are making good, above-inflation progress to get there. We have to balance the needs of the recipients of hourly rates against the viability of the businesses that pay them; they need to thrive as well.
The Chief Secretary to the Treasury mentioned a long list of assistance in his opening remarks. Particularly important, from my perspective, are the household support fund, with £500 million going directly towards utilities support; the warm homes discount, which reduces the price of heating by £140 per household, at a cost of £200 million to the taxpayer; and cold weather payments, which provide £25 per week to up to 4 million people in this country. The Government have taken proactive steps to support those most in need while supporting the entire economy of our country, in Scotland and elsewhere.
If the SNP was really worried, it would reduce its income tax, which costs £800 million more to taxpayers in Scotland than the rest of the United Kingdom—I was shocked to hear that it applied to taxpayers earning just over £27,000 a year and above—support continued access to North sea oil and gas reserves, and regret Nicola Sturgeon’s assertion that she would not give the go-ahead to the Cambo oil field. We need security of supply and we need to support domestic extraction during the period of transition between now and 2035. That supports our domestic prices and helps us in our transition to net zero. The Committee on Climate Change itself recognises that we need oil and gas resources between now and 2035
Jamie Stone
I rise to my feet as somebody who worked in the oil sector, but that is not what I want to address. The furlough scheme meant that the money paid out in my constituency was reinjected back into the local economy and the UK economy. It was not salted away in Zurich. In terms of supporting families through these hard times, the money does not go into a black hole. It is recycled. It can be clawed back by corporation tax on companies and so on. Perhaps it would be a good thing if all of us, including Her Majesty’s Government, looked at that as we tackle the problem of fuel poverty that lies before us.
Jerome Mayhew
I am grateful to the hon. Gentleman for his intervention. Treasury Ministers are attending this debate and I am sure they were listening very carefully to what he said.
In conclusion, there is a difference between grandstanding on these issues, which the SNP appears to be doing—there seems to be a certain amount of virtue signalling here—and what the Conservatives have been up to in government, taking practical steps to improve the lives of people right across the United Kingdom.
Access to Cash
Jamie Stone Excerpts(2 years, 11 months ago)
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Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
It is a pleasure to serve under your chairmanship, Mrs Miller. I congratulate the hon. Member for Pontypridd (Alex Davies-Jones) on a highly informed and amusing contribution.
I am going to make two points. It is very simple: all of us need cash. As some right hon. and hon. Members know, my wife is disabled. When I go away on a Sunday or Monday—or possibly on a Tuesday, in a good week—to come here, she gets on okay by herself during the week. One thing she always asks me to do is get cash. On the days before I leave to come south, I have to go to the cash machine and get out £70 or £80. That is how life is; she needs that money.
In recent weeks, we heard the sickening announcement that Virgin Money is going to close its branch in Wick. That leaves one bank in the big royal burgh of Wick, Caithness. It is a sickening litany of closures in what I think is the furthest constituency from London on the British mainland. I listened with amusement to the idea of 1 km. Hon. members from Wales are correct that the mountains do get in the way. In the entire county of Sutherland, a geographical area of 5,250 sq km, we have only one branch in Golspie. That is the nature of the problem. My constituents are sick and tired of it. Each time they hear the news again, there is a sadness about the whole issue.
However, in fairness to the Government, good experimental work has been done. Trials have been carried out with idea of banking at post office hubs, which have been well received. I say to the Minister and the Government, push on, forge ahead with those hubs. Some of the remoter constituencies in England, Wales, the and the highlands and other parts of Scotland, such as the constituency of the right hon. Member for Dumfries and Galloway (Mr Jack), would be the perfect places to experiment with those hubs, because rurality militates against access to cash.
I have one final point, and I will be brief, Mrs Miller, to help you. I am going to repeat slightly a speech I made yesterday about post office closures. I talked about a fishing village called Balintore in Easter Ross. The local shop said, “We can’t work with the post office any longer. It’ll have to go.” The community, particularly the hall committee of the Seaboard Memorial Hall, got together and talked to the post office. Hey presto, we have a post office back in the village, although it will be temporary.
My final message to the Minister and the Government is that they should work as closely as they can with the communities that are involved, because very often they will come up with an innovative suggestion, even down to basic routes for mobile banks, the best times to visit communities, and the best ways to get such hubs up and running. I speak with passion because, on behalf of my constituents, I am so heartily sick of seeing my vast constituency drained of access to cash.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
It is a great pleasure to serve under your chairmanship, Mrs Miller, and to take part in another debate on access to cash. I commend the hon. Member for Pontypridd (Alex Davies-Jones) not just for securing the debate, but for setting out the issues. I also commend my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) for his passion on this issue, which he has pursued relentlessly in Parliament and with the Minister. The Minister has always offered good grace and helpful engagement, but as my hon. Friend intimated, we are at the crunch point and need action.
In her contribution, the hon. Member for Makerfield (Yvonne Fovargue) touched on something that the Minister and I have not always agreed on. I feel that the Government have not done enough to convey the message that cash is safe. During the covid crisis, cash was no less safe than using a PIN pad and terminal. The Bank of England and many other international authorities confirmed that, and I do not think a clear enough message was given out that cash was safe. We also know that many retailers and other service providers have just used covid as an excuse to move to cashless payments, rather than there being some safety or security issue.
As we have discussed, the issues of acceptance and access are interlinked. Of course, the third key issue is the ability to deposit cash, which remains incredibly important for many voluntary and smaller organisations. To give an example from my local community, people do not go to coffee mornings, when they are allowed again, with their iPhones.
Jamie Stone
I thank the right hon. Gentleman for giving way—he is an old friend indeed. Does he agree that there is an additional safety aspect to somebody having to travel a long distance with a lot of cash on them?
David Mundell
Indeed I do, and I think the hon. Member for Pontypridd made those comments in her opening remarks. We have to have the three elements: access, acceptance and the ability to deposit. Like the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), I have a very large constituency—in fact, it is the largest constituency in the United Kingdom outside the highlands—where many of these issues of rurality are to the fore, so the issue of the 1 km within a rural context has to be properly addressed. We also have to have a better understanding of how engagement with post offices will work.
I remain very concerned about the post office network. I recently had four post office closures in significant communities, because a well-known retailer decided that it would no longer have post offices within its premises. Just glibly saying that the post office has a role might be right, but it is not as simple as that. We need to understand the basis on which it will underpin the availability of cash. I welcome the progress since the last debate, and I hope that we can achieve the same level of progress in the coming weeks, with a response to the White Paper and an understanding of the timescale. As my hon. Friend the Member for Blackpool North and Cleveleys said about the crunch, the banks have to put up or shut up. If they do not put up, we have to take the necessary action here in Parliament.
Covid-19: Government Support
Jamie Stone Excerpts(3 years, 2 months ago)
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Jamie Stone (Caithness, Sutherland and Easter Ross) (LD) [V]
It is a pleasure to share in this debate under your chairmanship, Mr Mundell. We go back a long way. I congratulate the hon. Member for Midlothian (Owen Thompson) on securing this important debate.
I wish to talk about a subject that I have mentioned before: insurance for live events. Even those who have been eligible for support will struggle in the recovery phase if they are unable actually to stage live music events. Many events cited by the Government as examples of cultural recovery fund support have been unable to go ahead this year due to a lack of insurance, including huge events such as the Glastonbury festival.
Why are they cancelling? Because they cannot get commercial covid insurance cover, or not at a competitive rate. Since January, I and others in all parties have been calling for the Government to put in place a Government-backed covid cancellation insurance solution. I have said it before, but such a scheme is not unprecedented. It has been done before with insurance for terrorism losses and—I point out yet again—the Government made a profit on that, which is worth remembering. I have said that repeatedly to Ministers and I hope that they will heed my call.
If we do not get events back up and running again, I fear that, in addition to losing good events in this country, we will erode something that is very important to Britain. Our culture and music are part of our soft power and, as we know, people come from all over the world to attend such events. Again, that is exactly why it would be helpful if insurance could be put in place.
Before I conclude, as Members know, I have the honour of being the joint chair of the gaps in support all-party parliamentary group. I want to put on the record my sincere thanks to my joint chairs and all the many Members who pulled together to form the APPG. I think it is the biggest in the history of the House of Commons. That shows just how important the issue that the hon. Member for Midlothian has brought to our attention today is.
David Mundell (in the Chair)
Thank you, Mr Stone. It has been a pleasure to chair you for once.
Levelling-up Agenda
Jamie Stone Excerpts(3 years, 3 months ago)
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Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
It is a pleasure to serve under your chairmanship, Sir Edward. My warmest congratulations to the hon. Member for Isle of Wight (Bob Seely) on securing the debate. We in the highlands were disappointed to be put in level 3; the leader of the Highland Council, Margaret Davidson, and I said as much. However, we are where we are.
One of the best ways to level up in the highlands and the islands—the remotest parts of Britain—is through tourism, so I want to speak in support of a bid that will be put to the Treasury in the next couple of days by the Highland Council. The hon. Member for Isle of Wight briefly touched on harbours, and I will as well. Wick harbour was once the herring capital of the UK. When the swell or the wind is in the wrong direction, it can make the harbour unsafe, so the bid is to build a new sea gate to increase the marina potential of the area.
I have often talked about a string of pearls. If we can take rich people who own boats—we call them yachties—up the east coast from the south-east, all the way up to the top of Scotland, and then get them to turn left, go along the top and go down again, not only will they have a great journey but we in the highlands, being canny Scots, would aim to lighten their wallets and their bank accounts on the way round. Doing up Wick would be a major step in that direction. It would accompany improvements to the town centre and to the industrial units next to the harbour.
The second part of the bid that the Highland Council is putting in is related to this. We have a very successful tourism enterprise, of which some hon. Members will have heard, called the North Coast 500. It is a brilliant idea supported by His Royal Highness Prince Charles, or the Duke of Rothesay as we call him in Scotland, and various local businesses. In the last few years it has been a tremendous success and an enormous number of visitors have come north. They have really enjoyed this truly scenic and amazing way around the top of Scotland. However, this has brought infrastructure challenges. One thinks of not enough car parking facilities, the structure of bridges that are starting to fall apart or congestion. If an ambulance in north-west Sutherland has to get in a hurry to the hospital at Wick, it can end up behind a lot of camper vans.
The bid is “Please, help us to finance improvements that are much needed”. I say again, that sort of enterprise will take money from the south-east and the richer parts of the UK to the poorer parts. That is levelling up without the Government having to do much more than putting their hands in their pockets to help finance the initial capital expenditure. That will include electrical charging points and other improvements.
An example of the success of the North Coast 500, the former Member for South Ribble, who was in her time the parliamentary private secretary to the Prime Minister, and her partner are going to come and stay with me in August. I warmly encourage the Minister and his colleagues at the Treasury; they would have the most enjoyable time coming up north to see where their money would be wisely spent. Of course, I would offer them bed and breakfast—what is more, it would be free bed and breakfast, which for a Scot is pretty astonishing.
Finance (No. 2) Bill
Jamie Stone ExcerptsTuesday 20th April 2021
(3 years, 5 months ago)
Commons ChamberRead Full debate Finance Act 2021 View all Finance Act 2021 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 20 April 2021 - large print - (20 Apr 2021)
Sarah Olney (Richmond Park) (LD) [V]
I wish to speak to clauses 92 to 95 relating to VAT. This last year has been exceptionally tough on our hospitality industries and I welcome all measures to support our valuable tourism and hospitality businesses as they tentatively begin to open up after the pandemic. Like many others, I was delighted to be able to visit pubs, restaurants and cafés in my constituency last week. I had a particularly enjoyable Friday night drink at the Black Horse on Kingston Hill and a fantastic Sunday lunch at the Glasshouse in New Malden. I am very much looking forward to getting round to all the other excellent venues in my constituency over the next few weeks and months.
However, it is important to remember that tourism and hospitality will not recover overnight. While there is undoubtedly a great deal of pent-up demand for eating out and visiting the wonderful sights and attractions of our great nation, it will not be possible for all businesses to open immediately and in full. And we do not know whether the Government’s road map will be able to progress as planned. Despite the wonderful success of the vaccine roll-out, we are still at risk from new variants and there may still be a need in future to restrict people’s ability to socialise indoors. So, although we welcome the cut to the VAT rate on hospitality and tourism sales to 5% until September 2021, the Liberal Democrats argue that the cut should be extended for the whole of the financial year, instead of moving to 12.5% from September to March.
Household incomes also need time to recover, and encouragement to spend on luxuries and leisure such as meals out should be continued for much, much longer. Indeed, the Government could and should have gone a great deal further to support these businesses and to safeguard the jobs that they create. Many businesses are able to partially reopen this month. There are estimates that up to 60% will not be able to reopen because they do not have outside space. But they will all be faced eventually with large VAT bills, deferred over the last 12 months.
A much better way to support businesses would have been to provide relief on the deferred VAT owed. That would have relieved businesses of an immediate cash burden and freed up that cash flow to invest in stock, staff and making their premises covid-safe. Instead, the Government propose to start imposing penalties from June this year on those businesses that have not yet started repaying this VAT. That will fall on businesses that have had extremely limited opportunities to earn any revenue in the last 12 months. The measures to allow businesses to pay this in 11 instalments is welcome, but will not help those businesses that cannot yet reopen and will not have any cash coming in to pay any of those instalments.
Businesses will also be carrying a great deal of debt and it is very disappointing to see a lack of measures in the Budget to address that. In particular, many businesses will be indebted to their landlords and it is disappointing that the Government have done nothing at all to help businesses with those costs. The Liberal Democrats would have introduced a revenue compensation scheme to help businesses with fixed costs such as rent. The burden of repaying those will fall very heavily on businesses that cannot yet reopen fully.
I am probably unique in the House in having direct experience of implementing Making Tax Digital for VAT reporting in my former role as an accountant for a large organisation. While the overall objectives of the programme are sound, I can tell the Minister from personal experience that they are not always straightforward to implement. I am puzzled as to why the Government think it should be a priority for struggling small businesses to deal with the additional administrative burden of implementing Making Tax Digital, at a time when they are having to deal with the huge burden of reopening in a highly uncertain time, and at the risk of further fines if they do not comply. Surely this could have waited another 12 months. The imperative to close the tax gap surely pales into insignificance when compared with the imperative to support precarious businesses at this time. How can additional red tape and administrative burden be the right response to the current crisis?
In short, this is not a Government who understand the needs or priorities of small businesses; it is a Government who choose to impose punitive costs and paperwork rather than provide effective support.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Dame Rosie, my humblest apologies for being late in attending the Chamber. I was badly caught out by the fact that this debate is way ahead of where I thought it would be. [Hon. Members: “Hear, hear.”] There is a silver lining to every cloud.
My good friend and colleague, my hon. Friend the Member for Richmond Park (Sarah Olney), has said it all, but I would like to touch on the issue of the hospitality sector. I am sure the Minister is tired of hearing this again and again, but business in my part of the world is very fragile. The hospitality sector depends on making as much money as it can during the short tourist season because the weather can be so inclement—it is like living on the fat you can make in the good times to get through the winter.
I give credit to the Government for the help that has been given, but I am very concerned that some tourism businesses may still yet shut down permanently. I do not know how many times I have said this in the Chamber, but the fact is that, if we lose one business, two businesses or three businesses, we are impoverishing the tourism product that we can offer in a remote part of the British Isles and, if we do that, there is less for tourists to come, see and do, or to eat and drink, and then we do not get as many tourists coming, and it becomes a downward, vicious circle. The VAT reduction we have had so far is welcome, but could we look at extending it a little further, perhaps for as long as my hon. Friend the Member for Richmond Park said? That would be very welcome. I have said several times in this place that it would be helpful if the Scottish Government and the UK Government could look at an overall, longer-term strategy to try to get businesses back on their feet, seeing them through the difficult times and nursing them so that we get to—to quote Churchill—the “sunlit uplands” that surely will come our way.
There is one other issue: we need some form of training element in that package. I was talking to Murray Lamont, who owns and runs Mackays Hotel in Wick, and he said: “Talk about training, Jamie, because we need to keep improving the product and making it still better because the competition is out there.” My hon. Friend the Member for Richmond Park touched on the revenue compensation scheme, and I would be extremely grateful if that could be looked at.
I am tempted to chance my arm and talk about banks, given the name of this section of the debate. Members will have heard me say many times that we have one branch of the Bank of Scotland in the huge county of Sutherland. That is a massive problem, but rather than incur the yawns of those on the Treasury Bench—
Jamie Stone
I will resist the sedentary comments from the Scottish National party Member and conclude my remarks here.
Jesse Norman
The Scottish Government are fully entitled to tax the Scottish people as much as they see fit in the democratic exercise of their mandate. The point I am making is that they have the scope to do so, if they wish, so they should not always be looking to the UK Government on matters of tax if the powers to make the change exist within their own competence and power.
The hon. Member for Richmond Park (Sarah Olney) talked about Making Tax Digital for VAT, but she ignored the fact that many small businesses have already joined the Making Tax Digital for VAT programme. The reason they have done so is that they recognise that it gives them a tremendous ability to manage their tax affairs. It also allows them to enjoy the gains of improved IT productivity. We think that those gains are worth having and worth extending to other businesses. That is one of the powerful drivers behind the Making Tax Digital project.
The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone)—always a delight to see in the Chamber, and I am very pleased that he took off his mask so that we could follow his remarks closely—talked about a revenue compensation scheme. Of course, if he reflects for a moment, he will see that the self-employment income support scheme is precisely a support scheme designed to assist people’s incomes. It has proved to be extremely effective in supporting millions of people on that basis.
I think the hon. Gentleman is right to focus on the sunlit uplands. All I can say is that if we come out of this on anything like the basis that we are projected to do by some of the independent authorities, given that this is the worst economic crisis in recorded history, there will be much to be thankful for. I will be delighted if we can get to those sunlit uplands.
Jamie Stone
I am so sorry that the Minister did not hear the first part of my speech—I could run through it again, if that would be helpful. I will chance my arm here. Last summer, the Chancellor of the Duchy of Lancaster met business representatives to talk about the sorts of issues in the hospitality trade that I was raising. I wonder whether I could crave, or look for, the favour of the Treasury Bench. Will someone in the Treasury be willing, when suitable, to meet those representatives if they came down to London, to talk about the issues, further to the discussions they have already had with the Chancellor of the Duchy of Lancaster?
Jesse Norman
I am very happy to volunteer the Chancellor of the Duchy of Lancaster, if the hon. Gentleman wishes to write to him further to that conversation. We are keenly aware of the problem. As Ministers, we spend our lives engaging with different groups. Of course we will look kindly on any suggestion that he might make, as we would on any suggestions made by any Member of this House, but I do not want him to think for a second that we need to do that in order to be keenly aware and abreast of the actual impacts that this present crisis is having on businesses and individuals.
I come to the points raised by the right hon. Member for Wolverhampton South East (Mr McFadden), which were very important. He rightly noted the impact of job losses on the under-35s. It is important to point that out, and we are keenly aware of that within the Government. He asked for an update on the Northern Ireland steel industry situation. As he will be aware, the Government are engaging closely with the EU on this issue. The Northern Ireland protocol is clear that it should be implemented in a way that has as little impact as possible on the everyday lives of people in both Ireland and Northern Ireland. As I say, there is close and constructive engagement on this topic. I am not in a position to give any more details of conversations that are still under way, but I can let him know that they are in those terms, and there has been reporting on this in the newspapers as well.
The right hon. Gentleman asked about the question of LIBOR. As he says, he and I were on the Treasury Committee when the full scale of this scandal became clear. He may recall the cross-examination I gave to Lord Grabiner on his inquiry into this issue, in which it was clear that there had been serious wrongdoing. There has been a slow and stately process of reform in this area, and businesses have been aware of the changes. Since July 2017, there has been a considerable amount of work done by the FCA. There has been a public consultation, extended because of the covid situation. There has been close engagement by a dedicated working group with industry. The Financial Services Bill reserves powers to the FCA if that is required in order to support an orderly wind-down. A tremendous amount of work has been done and is being done, and we are content with the situation as it stands.
Question put and agreed to.
Clause 92 accordingly ordered to stand part of the Bill.
Clauses 93 to 96 ordered to stand part of the Bill.
Schedule 18 agreed to.
Clause 97 ordered to stand part of the Bill.
Schedule 19 agreed to.
Clauses 128 to 130 ordered to stand part of the Bill.
The Deputy Speaker resumed the Chair.
Bill, as amended, reported.
Bill to be considered tomorrow.
Contingencies Fund (No. 2) Bill
Jamie Stone ExcerptsThursday 11th March 2021
(3 years, 6 months ago)
Commons ChamberRead Full debate Contingencies Fund Act 2021 View all Contingencies Fund Act 2021 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 11 March 2021 - (11 Mar 2021)
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD) [V]
May I use this opportunity to personally thank the Financial Secretary to the Treasury, who has met the gaps in support all-party parliamentary group several times over the last few weeks? That was good of him, and it has been a constructive relationship with Opposition MPs.
That takes me to the first of two brief points that I want to make. Clearly my constituency is very different from other constituencies. It is vast, it is very far away, and we have particular challenges with distance, sparsity of population and even temperature. During the pandemic, my constituency has had particular problems to be dealt with. I understand, and indeed I support, the mechanism that we are debating, which is about getting the money to where it is needed at the right speed. It might be useful if the Government agreed to meet Opposition MPs such as myself slightly more often, to look at the overall package and how it is hitting or not hitting where it should.
I will give one example. I have said many times in the House that businesses involved in tourism and hospitality are fundamental to the economy of my constituency and, indeed, of all the highlands and islands. The package of support during the pandemic needs to be best tailored to ensuring that those businesses can be got off their knees and got going again once the pandemic starts to recede. It would be tragic if we lost any of those businesses during this time, because that would impoverish our tourism product, which people come from not only most of the UK but all over the world to see.
We need a tailored package for tourism and hospitality businesses, and I am happy to talk to the Government about that. There is a precedent. Last summer, the Chancellor of the Duchy of Lancaster came to my constituency, and, as he will agree, we had a constructive meeting with tourism businesses, which was helpful. I am quite open about this: I will work with a Minister of any political colour if it is for the betterment of my constituents and the economy of my constituency.
The second and final point I want to make is one that needs to be stressed. A lot of this money is going to the devolved institutions—the Welsh Assembly and the Scottish Government. I support the Secretary of State for Scotland’s plea that, when the pandemic is over, we look at what the Scottish Government have actually spent the money on. As other Members have said, this is not our money—it is public money; it is taxpayers’ money—and I want to be absolutely sure that it has been used in the most prudent fashion by the Scottish Government and has gone where it should have gone. I support the Scottish Secretary’s plea for some sort of audit, balance sheet or, if you like, profit and loss account to be produced at the end of this.
I have listened to the debate with the greatest of interest—there have been some very high-quality speeches—and I shall listen to the rest with great interest.
Government's Management of the Economy
Jamie Stone Excerpts(3 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD) [V]
I want to make two points, neither of which will come as a surprise. Madam Deputy Speaker, if I were to take you north, on a journey through the highlands, we would drive from Lairg to Kinlochbervie and Durness in north-west Sutherland and when we came to a place called Laxford Bridge, we would shortly find a sign with stars in a circle that said: “This improved stretch of road was paid for with help from the EC”—from the European Union. Those signs are found throughout the highlands.
It may seem that I am making a classic remainer speech. I merely want to make the point that all over the highlands, the European Union invested in harbours, airports, roads and bridges, and that made a great difference to all our lives. It was about levelling up a poorer part of Europe to some sort of equality with the richer parts of the UK and Europe. That sort of development helped arrest that great curse of the highlands: depopulation.
My first point for the Chancellor next week is therefore that we are looking forward with hope and anticipation to the shared prosperity fund. It is essential that the Chancellor and the Government roll it out in a way that equals, if not betters, what went before, now that we are out of the European Union. All of us in the highlands wait with bated breath for that, and it will be hugely important to our country.
My second point is very simple—you have heard me make it many times before, Madam Deputy Speaker. It is good news for the Government. I am extremely grateful, as are my constituents, for the Government’s proposal to site the first vertical space port centre in Sutherland in my constituency. It could mean a great deal to my constituents through providing quality employment in future, but, more important, by giving young people the hope that they will have jobs and homes in years to come in the places where they come from. It will literally keep the lights on in some of our most remote straths and glens.
My second point therefore is to ask the Chancellor and the Government to say—possibly in next week’s Budget, but at any rate, as part of a steady stream of good funding announcements—“Yes, we back the space port in Sutherland and we will do everything in our power to make sure it becomes a reality.” That reality will not only keep employment vibrant in my constituency, but earn a great deal of income for the United Kingdom.