Community Bank Closures

Jamie Stone Excerpts

Thursday 8th February 2018 Commons Chamber

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I thank you, Madam Deputy Speaker, for calling me so early in this debate, because I have a very long way to travel. I apologise to the House for not being present when the winding up speeches take place; it is not an intentional discourtesy.

I also congratulate the hon. Member for Stoke-on-Trent North (Ruth Smeeth) on making a really first-class speech. She covered every single point, and I am left with almost nothing to say as a result, which is rather distressing for someone like me who has a tendency to be verbose.

This issue causes me an element of personal pain because I have a number of friends who work for the Royal Bank of Scotland, at all levels of the bank. My comments about the bank are not intended particularly for the bank; they are aimed at the system in general. In my constituency, we face the closure of three RBS branches. One, in Tongue in north-west Sutherland, may be on hold—there has been a stay of execution. However, in the old royal boroughs of Tain and Wick, the intention is to close the branches. I have never seen an issue that has caused so much deep unhappiness among my constituents.

Call me old-fashioned, but the bank and the bank manager were as much a part of the social structure of these communities as the doctor, the minister and the school teacher. I think particularly of what happens when someone has, for example, a seed corn business—from little acorns mighty oaks grow. The point is that, in the past and even in recent times, someone with a business idea could go to the branch of their bank and say to the manager, “I have this idea. This is my business plan. Will you take a punt and lend me the money?” I have seen, in my home town, some seriously big businesses grow in my lifetime from absolutely nothing—there was a brave bet by the bank manager. We should not underestimate that.

The point has been made about the post offices. Our main post office in the town of Tain in the north of Scotland closed. Our post office now, which is very well staffed by well-intentioned individuals, is essentially a newsagent. The gap between the counter, where a person does their business, and the magazines is only the distance between two Benches in this place. If someone is trying to bank large amounts of money at the same time as Mrs McKenzie is trying to buy her copy of the Scots Magazine, everything gets muddled and, frankly, the staff get hassled. I really do not envy their position one little bit.

I have a short anecdote, which reflects on the banks. My first bank account, with the Royal Bank of Scotland, was opened by my father when I became a student. He put in £16—I did not see many £16s after that. In due course, I spent all the money because I was a young first-year student who did not know what he was doing. When my grant cheque came in, I opened another bank account in the Bank of Scotland and then I spent all that, too. The trouble came when the two bank managers talked to each other and said, “Do you realise that young Jamie Stone has two bank accounts and he is spending money like water?” Then they went and told my dad. There was absolutely no end of trouble over that. In a way, for those Members who are experts on Adrian Mole, that conversation, perhaps not completely correct today, headed off a potential multiple debt situation. I was pulled up and stopped—well, I had to be—which was probably to my great benefit in my life.

Banking is about the human face—of course it is. It is about seeing someone in the branch of a bank who says, “Don’t worry. What’s happened here is that the payment will not clear for three days.” That can be the difference between peace of mind and mental torture. It takes someone just to say, “Wait a minute, I will go online and take a look. Oh, here’s the problem. This is what’s happening.” You cannot take that away. We talk about online banking. Well, let me tell Members: if I hit the icon on my phone, it says that I have been logged out and, no matter how hard I try, I cannot get back in again. I do not have a clue, just like when I was 18, I do not know what my bank account is doing. Therefore, online banking is not for everyone.

The issue, as the hon. Member for Hazel Grove (Mr Wragg) said, is one for Government. The only way in which we will stop this endless gloomy slide of closures, which is eating into our communities and sapping morale, is for the Government to say, “Wait. What is the public service responsibility here?” They should then come forward with some thoughts and guidelines. It has been suggested that perhaps we should combine banking facilities and get the clearing banks to work together to form a one-stop shop. That is a very interesting idea.

I look for something from the Government saying, “We recognise that this is a responsibility, that this is dangerous for the structure of society and that these are the proposals that we intend to bring forward.” I am an optimist, so I wait in the hope that there will be something that will sort this out once and for all.

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[Jamie Stone]

I entirely take on board what the right hon. Gentleman is saying about post offices. But I have just outlined the case of a post office that is using a retail premises that is entirely unsuitable. It must therefore be up to the Post Office to negotiate premises that are suitable for the service he is talking about.

[Nick Herbert]

The hon. Gentleman has anticipated exactly what I was going to say. If the post office premises become the location of the only banking services in a village or small market town, we must ensure that they are suitable, and the Post Office needs to ensure that that is the case when it identifies premises. It must also ensure that the banking services can be provided. The online systems have been down in the post office in Arundel over the past few days and as a result there have been no banking services.

As suitable premises can often not be found, suitable post office sub-postmasters cannot be found in various villages and small market towns in my constituency. This means that there is sometimes a suspension of post office services for a period of months, even though the Post Office’s policy is that there will be a post office outlet in these communities. That cannot happen if the post offices become increasingly important owing to the fact that they are providing banking facilities as well as all the other important facilities that they provide for the local community.

We need some more creative thinking. We cannot just allow the banks to step away and absent themselves from their responsibilities to ensure better services in this regard. To that extent, I agree with the hon. Member for Stoke-on-Trent North. The Government do have a role to play, by stepping in where the market is not working properly. The market is not working because there is insufficient demand in some areas for banking services in their traditional form, but those services are still important to local communities.

We must remember that local high streets are already under great stress. High streets in rural areas have really been suffering from the impact of globalisation and competition from online retail services. It is very difficult for small businesses to keep their heads above water as it is, so banking services are very important for them. If the Government’s objective is to maintain the vibrancy of these high streets—and I think it is—we need some active measures to ensure that post offices are promoting the best banking services and that these services are well publicised. We need banks to step up to the plate and contribute to ensure that the banking services can be universal and just as good as the services that were provided before. All those things can be done.

I recently had a useful meeting to discuss the issues with the Post Office’s senior management and the Minister’s predecessor, who acknowledged all these points. I know that the Government are concerned to ensure that banking services are provided. We must look forward to what can be created using the existing post office network and ensure that services are provided properly. It does not help to look backwards and think that we can somehow set a retail banking model in aspic, when it is actually failing because it does not provide the services necessary for the wider community and only supplies a very small number of customers. We need banking services in these areas, and they could be provided more creatively and innovatively. The situation needs a bit of Government help, but we also need the banks to play their part.

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[Michelle Donelan (Chippenham) (Con)]

I commend my hon. Friend the Member for Hazel Grove (Mr Wragg) and the hon. Member for Stoke-on-Trent North (Ruth Smeeth) for securing the debate.

My constituency is formed of four market towns and a lot of villages, so it will be no surprise to Members that we have seen a number of bank closures in the past few years. In fact, there are no branches left at all in Bradford on Avon and Corsham. Locally, a key part of the problem has been insufficient transport infrastructure to get people into those towns, particularly from surrounding villages such as Neston, and an above-average ageing population.

Nationally, the banking industry estimates that branch visits have fallen by roughly a third since 2011. I understand and recognise that banks are businesses and that branch closures happen for commercial reasons. Fundamentally, advances in technology—online and mobile banking—have significantly reduced demand. Cheques are still the main reason customers go into a branch, but cheque usage has declined severely—by 13% between 2014 and 2015 alone. Things have changed: I remember back in the day my Mum paying in the supermarket with a cheque and cheque guarantee card. Now she uses Apple Pay on her iPhone!

To explain the decrease in demand, we must consider the purpose of banks. For some people, as Members have suggested, banks are more than a normal service. They are a part of the community, offering people a personal relationship and an opportunity to chat. They can prevent loneliness. That is why, for some, closures are not just an inconvenience or a sting: they can actually hurt. I know that that has been the sentiment in my constituency.

That view of banks, however, is decreasing, especially among younger generations, hence the need to specifically help and consider the elderly when banks close. I must note at this point, as other Members have, that provisions are already available to reduce the impact of bank closures. The industry’s access to banking standard, launched in 2017, makes a commitment to provide information about branch closures, along with options locally to continue to access banking services. It also includes specialist assistance to customers who need specific help. Importantly, it commits to providing a minimum of three months’ notice of branch closures. However, I do not think that three months is long enough for people to change their habits or prepare themselves. I ask the Minister to call on the banks to operate a six-month policy, which would be fairer and more adequate. It is vital that when banks make decisions on closures they review the transport network and infrastructure, and ensure that provision is available so that banks are accessible in the area.

Mobile banking is a perfect example of a halfway house, costing only 19% of a physical branch. RBS group and Lloyds have built a large network of mobile banks across the country, and HSBC has just started to do the same. They help in areas where there is no accessible alternative provision, and they can be used as transitional arrangements to enable people to adapt and have more time.

[Jamie Stone]

I take on board completely the point about mobile banks, but there are issues with them. The public have to queue up outside in inclement weather and get soaking wet, and they do not have the ability to handle paper transactions.

[Michelle Donelan]

I do not believe that mobile banks are the answer; I am proposing that potentially they are a part of the solution. I agree on the point about cold weather. That is a very valid and worthy consideration.

I have worked locally with Lloyds to reduce the impact and to manage the transition of the loss of branches in Bradford on Avon and Corsham. I am pleased to say that we have a provisional agreement for a mobile bank trial in Corsham. Madam Deputy Speaker, I am sure you will agree with me that the case for such a trial is just as valid in Bradford on Avon. I am sure the Minister, as a local Wiltshire MP, also agrees.

Turning to the impact of bank branch closures, each case is different in every circumstance. When severe, it can suggest, alongside closure, a lack of investment in training and support for older and vulnerable people. That is why I reiterate that a three-month notice period is not long enough. It takes time to build some people’s confidence in the security of digital banking. Alongside Lloyds bank and Barclays, I have run three fraud workshops, which were heavily attended, particularly by the elderly community. Support to vulnerable residents and the elderly is crucial. It is important to remember that about 4 million people—mainly the elderly—are not online at all. However, we must not write off older people as incapable of using the internet. We must support and manage them, and give them the tools and skills to make progress. More than 600,000 people aged over 80 already have online banking. They put me to shame, as I joined only last year.

Another stumbling block to digital banking can be deprivation, which can render people unable to own a computer or a smartphone. Mobile blackspots and patchy internet services are both common in the villages in my constituency. Banks should ensure that an alternative option is accessible, such as mobile banking or sufficient public transport to the nearest branch, and I again make the point that Bradford on Avon really needs mobile banking.

Post offices are not the answer, but they are part of the solution and can play an essential role. Our post offices have been struggling for years, but incorporating banking into their services is proving to increase their footfall and helping to engage people in their services again. The Post Office currently offers basic banking services to many bank customers and is expanding that to business customers. As has been noted, awareness is the key problem, but it is also about changing consumers’ habits. I was pleased that at the autumn Budget of 2017, the Treasury wrote to the Post Office and UK Finance to stress the importance of raising public awareness. I would like to hear the result of that from the Minister.

In conclusion, it is important that we do not resist technology, but that we accept and embrace change to enable progress, grow our economy and compete on the international stage. However, I want to be realistic. I believe that it is inevitable that all branches will eventually close. The supply of them has reduced by 60% in my lifetime, so I think that we should encourage a sustainable hub model to emerge—a one-stop shop—where post office and banking facilities can be offered, as well as debt advice and potentially even a citizens advice bureau. That will help to safeguard our high streets. The transition period is so important, along with the support available. Banks need to lead the way in training and supporting people who are currently unable to support themselves through their digital skills. We must also encourage the roll-out of mobile banking.

I hope I have outlined today that the banking world is changing, but that there is a process whereby we can improve the transition, so that everybody in society can continue to embrace technology. We must support our community.

Christmas Adjournment

Jamie Stone Excerpts

Thursday 21st December 2017 Commons Chamber

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I will be brief. I believe that one of the best uses of time in the future in this Parliament would be a thoughtful consideration of how the devolved Administrations and the UK Parliament can work best together to benefit constituents, particularly constituents in my vast and far-flung part of Scotland.

I shall touch on three subjects this afternoon. I apologise to Members because they have heard me mention them before, but I do feel duty bound to bring them up. The first is broadband. The hon. Member for Harrow East (Bob Blackman) was quite correct to raise the issues in his own constituency, but, clearly, when someone is dealing with distances as vast as mine, the matter presents particular challenges. In the past, not so very long ago, we saw a bit of backwards and forwards between hon. Members on both sides of this Chamber about whose fault this is. I do not want to get into that, but it does seem to me that, if one could have a get together, a meeting of minds between both levels of government, perhaps we could work together to tackle the issue.

As everyone in this Chamber knows, I am a remainer. Whatever form Brexit Britain takes, we will absolutely need connectivity in the future if we are to compete in a world market. I hope that we can all accept that. Equally, I have mentioned universal credit many times in this Chamber, but the problem that universal credit presents to my constituents is that many of them cannot go online to access it. That is enough said on broadband.

In the north of my constituency is the former nuclear power station, Dounreay, which is being decommissioned. We have a skills base there which is second to none. The challenge for me and for everyone who cares about employment in the far north of Scotland is to see how to utilise those skills in the future in that area. At the Scottish Government level, we have the Highlands and Islands Enterprise trying to encourage development, but we also have the Nuclear Decommissioning Authority, which is very much a function of Westminster. The more joined up—I know that it is a clichéd phrase—that we can be, the more I can say to the working people of Caithness that we are doing our very best to look to their future to see what we can do.

The temptation for me here in this Chamber is to go down the health route. I am sure that Members of the Scottish National party would yawn if I did that, but I will not do so because I have already covered the subject in some detail. However, what I do want to mention is energy and the production of energy. Today, I have received a letter from a constituent, Mr Murray Threipland, who owns and runs a business in Caithness, Dunbeath Engineering. He has recently got planning permission to build a turbine, which will cost him just short of half a million pounds. That is great; he has got the go-ahead. However, due to problems with the local electricity grid, he cannot export the surplus energy that he is going to make. He is faced with buying a large number of electric heaters and, at night time when he does not need the surplus energy, heating up the night air of Caithness. A nice idea, people may think—it might help get rid of the midges or keep the odd poacher warm, but it does not achieve much else.

We need energy in this country. We need to make as much energy as we can and to do it as efficiently as we can. Again, a joined-up view of government both north and south of the border would be hugely helpful. I take the view—perhaps in slight contradiction to other colleagues here—that the UK is here to stay. Things such as broadband and energy do not respect national boundaries; they are for the good of the UK. The same goes for how we decommission nuclear sites, how we use the skills and how we approach the future.

That is really all I have to say, except, like others, I should like to thank people for all that has been done in this place. I am no longer a new Member—I have been here for six months—and want to say something that is personal to me. I have been touched by the kindness, support and advice that I have received from all parts and all parties of this Chamber. How this place works strikes me as being very, very special, and I am deeply grateful for it.

Madam Deputy Speaker, may I wish the merriest Christmas to Mr Speaker, you and all the other Deputy Speakers, every Member in this House and in the other place as well—not that I frequent it very often—and everyone who works here? Thank you.

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[Nigel Huddleston]

I am happy to have facilitated that discussion.

I wish to thank you, Mr Speaker, and your entire team, and indeed everyone who looks after us—and I do mean looks after us—in this place. From security, the cleaners, and those in hospitality, everybody does a very good job and they do not always receive the praise that they deserve. I also wish to thank my family who go through quite an ordeal living with me, particularly given the lifestyle that we all lead, and I thank my constituents for re-electing me this year, for which I am grateful. I am sure I speak on behalf of all hon. Members when I say that although we are grateful to those who voted for us, we also represent those who did not. All Members across the House take that very seriously, and we do our best to represent the breadth of opinion, although that is sometimes overlooked.

I would like to say a special thank you to three people who have inspired me this year. I am very proud to have got to know them very well. Tracey Hemming runs the Freedom Day Centre and the Freedom Disco in my home village of Badsey. What an inspiration she is. She had an idea about 18 months ago to set up an event for disabled children and those with mental health challenges, and she has done the most fantastic job. I have managed to visit her several times. She is an amazing lady and deserves credit. Diane Bennett runs Caring Hands in the Vale, in Evesham, and runs the local food bank. She is an inspirational lady who I have got to know very well. Up in Droitwich, in the northern part of my constituency, a fantastic gentleman called Patrick Davis is doing a great job of reinvigorating salt production in Droitwich. I am very honoured to live in an area where volunteering and community engagement and involvement is at the heart of people’s day-to-day activities. They are very busy with their jobs and families, but the volunteering is incredible. I have never known anywhere—I have lived and worked abroad for many years—with that degree of dedication. It is an honour to be associated with so many of them.

The issue I would like to raise is something we are not seeing in the Chamber today: intolerance. I am increasingly concerned about the intolerance, abuse and intimidation happening at the extreme ends of both the far right and the far left of British politics. It is not representative or reflective of the day-to-day activity in this place, where we generally get along. We have a lot of banter. We disagree, sometimes vehemently, but I think we all know that having strongly held opinions does not necessarily mean that we are right. We have the self-awareness to realise that we can sometimes be persuaded and that the opposition can be right. We know it is perfectly valid and fair to look at the same data points and have different views and opinions on policies that may come out of them. We have those debates in this place all the time.

Unfortunately, the public do not always see that. At the moment, particularly online, we are seeing an era of really disheartening abuse, vitriol and hatred that does not exist in this place. It is, however, the responsibility of us in this place to say loudly and clearly that that is not acceptable in British politics. If it is associated with any of us in any way shape or form, if somebody uses our name, hashtag or Twitter account to make really vile comments, we must stand up and say, “No, not in my name. I distance myself from those comments. I do not want to be associated with them.” We must be active. Yes the social media companies have a lot to answer for and, yes, we do as Members of Parliament as well, as do those making the vile comments in the first place, but we must stand up and be counted.

[Jamie Stone]

The hon. Gentleman should not lose hope. He is right and I absolutely endorse what he says. What we have seen in recent days and weeks has been extremely unpleasant, but three years ago north of the border—I think we can agree on this—it was very bad on both sides of the Scottish independence referendum debate. Since then, however, things have improved and we have worked at it. Progress can be made.

[Nigel Huddleston]

I do indeed have hope, but we have a responsibility to try to lead. It is very unfortunate, but I think we all get people making insinuations about our motivations when we disagree on policy. Very occasionally in this place, it is very disheartening, as well as downright rude, to hear people insinuate that because I am a Tory I must therefore wake up in the morning wanting to hurt poor and disabled people. That is so far from the reality that it is downright offensive and wrong. If anybody believes that, I feel really sorry for them. What kind of mentality must one have to believe the absolute worst of the people one deals with on a day-to-day basis in one’s workplace? That needs to be called out, too. My main concern is not what happens in this place, but what happens online. We really need to work closely to focus on that and I know there is a cross-party consensus.

I said I would end positively. I am very pleased and proud that I am a Member of Parliament for the Conservative party. We do not get everything right, but we listen and we make changes where necessary. I am proud that, for example, we recognised that mistakes had been made with universal credit. We looked at the data, we listened to people—to our constituents, and to other Members of Parliament—and we amended policy. I think that that was right, and I am glad that we did it.

However, we have also got many things right in the first place. I am glad that, as we go into the Christmas period, we are seeing the highest spending ever on the NHS, and more operations than ever are being carried out in the NHS. We are also seeing the highest spending ever on pensions and pensioners, more children in good or outstanding schools than ever before in the nation’s history, and more people than ever before going home with a pay cheque every week and with the decency and honour that comes with earning money. Moreover, unemployment is at a record 45-year low. This has been a difficult and challenging year, but it is not all bad. Let us look at some of the positive developments.

I will play my part in continued cross-party co-operation on all the issues that we care about and our constituents care about, and I look forward to doing that over the next year. In the meantime, I wish a happy Christmas and a happy new year to everyone.

Finance (No. 2) Bill

Jamie Stone Excerpts

2nd reading: House of Commons
Monday 11th December 2017 Commons Chamber

[Mel Stride]

My hon. Friend is entirely right. A number of measures have driven the improved tax take from banks. Along with the 8% surcharge, there is the fact that we have restricted banks’ ability to carry forward losses to offset against profitability. We also exempted banks’ ability to offset charges in respect of mis-selling and payment protection insurance activities, which has also helped to improve the tax take.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

The mention of banks gets me going because all the Financial Secretary’s good words sit ill with the fact that the Royal Bank of Scotland is going through a huge series of closures, particularly in my constituency. We bailed the bank out, so there is great unhappiness—indeed, anger—that it is acting in such a way all over Scotland.

[Mel Stride]

The hon. Gentleman raises an important issue, but these will be matters for the Royal Bank of Scotland. The most important aspect when one considers the Royal Bank of Scotland is clearly that it is brought back to being a fighting-fit organisation, employing as many people as possible as a business, contributing to the Exchequer, and creating value going forward.

Budget Resolutions

Jamie Stone Excerpts

Wednesday 22nd November 2017 Commons Chamber

[John Redwood]

I think that the hon. Lady is wrong; I think he did mention them. That is certainly part of the Government’s plan. It is clearly a comprehensive housing plan that involves homes for rent and homes for purchase.

I would like to see new settlements where a suitable location can be found, and I am pleased to hear that there is already some agreement on the university arc from Cambridge through to Oxford via Milton Keynes, where there are all sorts of exciting opportunities. One of the really good things about the UK economy now is the momentum that is clearly gathering pace in technology investment and technology business set-ups. It is obviously easier to create those opportunities close to the great centres of learning where there is an extremely good workforce to recruit and there may well be entrepreneurs as well. It is excellent that we reinforce success, and I see that part of the country as a major area for development.

I agree with my hon. Friends who have said, in relation to the housing issue, that it is important to promote home ownership. There is clearly a great yearning for more home ownership, and it is one of the big social problems of our day that many people under the age of 35 are unable to afford their first home. I welcome anything that can make the gap a little more bridgeable, and it is excellent that we will be getting rid of stamp duty for most first-time buyers.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

First-time buyers in my vast and remote constituency will absolutely welcome the abolition of stamp duty. Does the right hon. Gentleman agree with his colleague, the hon. Member for Stirling (Stephen Kerr), who has now left the Chamber, that it is high time that the Scottish Government followed suit and abolished stamp duty north of the border? We do not want any inequality that will disadvantage Scots.

[John Redwood]

That is fine by me. I have no problem with that, but nor do I have any constituency interest in the matter. It is interesting that Scottish National party Members have not stayed to follow that debate through— [Hon. Members: “There’s one!”] We look forward to the hon. Member for Glasgow Central (Alison Thewliss) pledging that her party will cut stamp duty, if she wishes to do so and is capable of making that offer.

The proposal is sensible and welcome. Some are saying that allowing some remission of stamp duty right up to £500,000 is unrealistic, but the earnings multiples now being applied are rather greater than the earnings multiple that Labour Members have suggested. Some relief for people struggling to buy is as necessary in London as it is elsewhere in the country; we need to take into account the much higher prices in London. I speak as someone who does not represent a London seat, but I understand the difficulties involved.

In summary, I welcome the new forecast, which is considerably better than the forecast of just over a year ago. The UK is a great place to invest in, and growth should be fairly steady from here. The productivity plans need rolling out and developing, and much more is going to have to be done, because this is about influencing conduct, behaviour and opportunity in thousands of companies around the country, and about working with educational and training establishments to achieve what we need to bring about. This is, above all, about the Government being open to and conscious of the need to adapt themselves quickly to the huge changes that technology is producing.

I would welcome experiments within the public sector to determine how we can greatly improve public sector productivity in a positive way, by ensuring that people can keep their jobs while enriching those jobs and making them better. Those jobs could then be better rewarded because they were better graded. It would be really good to have some pioneering examples in parts of the public sector, and if the public sector was good at that, it could be a demonstrator for the private sector. I wish the Government every success with that. It should be something that unites the House, which has been in a fairly fractious mood today. We live in hope that, in due course, we will see that this country is on an exciting journey, and joint work to crack the productivity puzzle would be very welcome.

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[Stephen Hammond (Wimbledon) (Con)]

It is a pleasure to follow the hon. Member for Harrow West (Gareth Thomas). I certainly agree with his remarks about the role of co-operatives in financial services and other parts of our economy. In fact, he and I have spoken about that previously.

The Chancellor said that this was a Budget “fit for the future”. In many ways, all Budgets are fit for the future because it is the future that we face. Some, of course—including many delivered by the previous Chancellor—had to cure the ills and mistakes of the past. Today, some of the pressure and pain that the economy has had to take is being put right and we are seeing some benefits in a number of ways.

My right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) was right that much is spoken about intergenerational issues, and the worst intergenerational burden we can leave is to load the next generation with the debt of our generation because of our reckless spending. The Leader of the Opposition was so right when he said that it could have been so different; we could have seen a deficit denied, more money spent, more tax raised and little benefit. In reality, our constituents would have borne the brunt of all that. The Chancellor was right to point out that the OBR is independent and gives a view with the best economic forecasting available. But it is also right that all forecasting bears risks. I have only had a quick chance to look at the OBR analysis, but it brings up some interesting points.

The hon. Member for Islwyn (Chris Evans) mentioned productivity several times, and he is right that it is the central challenge for this economy. In fact, I think that the hon. Member for East Dunbartonshire (Jo Swinson) made the same point. As an economic historian of relatively modern times, I think it is fascinating to note and worth remembering that the previous Administration had to redefine productivity because it was falling so fast under their watch. The OBR makes the point—and this is a disappointment—that although productivity is picking up, it is not reaching pre-crisis levels. That is why people should particularly welcome the schemes for retraining older people contained in the detail of the Red Book, as well as the science, technology, engineering and maths skills training. I particularly welcome the retraining partnership schemes because the participation rate is one of the biggest problems highlighted by the OBR, as we have an increasingly elderly population without the skills to tackle some of the new industries that will so obviously exist. The Chancellor was right to say that much needed to be done on maths and computing if we are to meet the challenges of the future.

There is clearly an awful lot of detail in this Red Book. Chancellors often hope, when they present their Budgets, that people will pick a rabbit out of the hat that will make the headlines so that they do not look at the details. In fact, much of the good stuff is in the detail today. It is worth mentioning, for example, that today’s announcements on universal credit show that the Chancellor has been listening. He is right to say that we have to have a modern welfare system, so that work is always encouraged. One of the real experts, David Orr, the chief executive of the National Housing Federation, which represents most of the housing associations, has already stated:

“We particularly welcome the changes to Universal Credit, including the advance payments…These changes will make a direct and positive impact to the lives of housing association tenants.”

[Jamie Stone]

Whatever the rights and wrongs of universal credit, and the motives behind it, the lack of internet access in my vast and wide-reaching constituency is an immovable obstacle that cuts against the best intentions of the Government. Do the hon. Gentleman and those on the Government Front Bench recognise this massive problem?

[Stephen Hammond]

The hon. Gentleman is absolutely right. That is an infrastructure problem, however, and I hope he will have noted a number of announcements on infrastructure today, including the fact that the roll-out of broadband is being accelerated. I absolutely agree that there is a massive problem, and I am very pleased that those on the Government Front Bench are doing something about it. At constituency level, I should also like to welcome the announcement of the Naylor review and the fact that some money will be going to St George’s Mental Health Trust. That will be welcomed in Wimbledon, as will the announcement that Crossrail 2 is proceeding, although we hope that it will do so at a faster pace than the trains.

For a lot of people, the key Budget announcements relate to infrastructure. I was particularly interested in the amount of money the Government are putting into transforming cities, not only by providing local transport but by giving cities and mayors the flexibility to embrace new urban design and incorporate the new industries of the future, and by giving local councils the ability to offer discounted lending. The Government often encourage them to make this lending available to high-value infrastructure projects that will provide extra facilities for local people. It is key that that money should not be ring-fenced for particular projects and that it can be used to allow new urban design ideas to be utilised.

I have recently been a keen contributor to the Housing and Finance Institute’s papers on bringing forward sites in a way that provides not only the necessary housing but all the services that are needed to go with it. Major applications—and sometimes smaller ones—are often frustrated by a lack of provision not only of roads and rail but of electricity and water, for example. A report to which I was pleased to contribute recently landed on the Chancellor’s desk, and it has clearly made an impact. I was pleased to see today that he is establishing Homes England. That detail might have been missed by many, but I suspect that allowing the Government’s major house building and infrastructure directive to have a much wider remit will enable a number of projects to be brought forward more quickly, particularly when combined with some of the other measures in the Red Book. For example, the strategic sites fund will be very welcome, particularly when combined with the announcement on Homes England. There seems to be some grown-up connected thinking going on inside the Treasury, which I welcome. The Economic Secretary to the Treasury, my hon. Friend the Member for North East Cambridgeshire (Stephen Barclay) smiles. He is always guilty of this kind of thinking, but it is not always evident to everyone else.

Certain factors are really noticeable to anyone who has done any analysis of the housing market. It is clearly about supply, which everyone talks about, and about the big projects. However, if we look across our constituencies, there will be any number of small sites that are not being brought forward, which is why we have seen the decline of the small builder. The extension of the house building fund, the small sites fund and, probably most importantly, the loan guarantee to small builders are likely to bring forward more sites. That may well be incremental, but every site of 10, 20 or 25 homes adds up, and that is to be welcomed. On a regional level, I also welcome the fact that we have for the first time seen an acceptance that house prices are not the same everywhere in the country, and today’s stamp duty announcement will be particularly welcomed inside London.

My final point relates to the patient capital review. Some of the structures put in place in the past often did not recognise the need for an emphasis on high risk and high growth. If funds are to get advantages, they should be high growth and high risk, and today’s announcement will be a benefit, particularly if it works alongside the private sector to bring forward £7.5 billion into the industries of the future. There is much to welcome in the Budget and, unlike many Budgets, there is much in the detail, so I commend it.

--- Later in debate ---

[Joan Ryan]

I completely agree. I, too, was brought up in a council house, and we were proud of it and considered it the next best thing to owning our own home—we hardly drew a distinction. That is not the case today. Indeed, it is becoming impossible to offer anybody a council house.

[Jamie Stone]

rose—

[Joan Ryan]

I will not give way again, because I need to make some progress.

I want to say a few words about public services. Hard-pressed and hard-working families rely on our public services, but seven years of austerity has stretched them to breaking point. Labour-led Enfield Council has tried its level best to protect families from the immense pressures it is under, but given that its Government grant has been reduced by £93 million, it is now able to do so much less. The extent of the cuts that local authorities are having to make is unsustainable.

I notice that when we talk about social care, the environment, pollution and policing, the answer we get from the Government every time is “local authorities”, but they are slashing local authorities’ budgets on the one hand and then pushing responsibilities on to them on the other. The Government know that that circle cannot be squared—it is an impossible task. They are undermining our public services and undermining our local councils.

Primary and secondary schools in Enfield are due to lose a further £15 million by 2020. Heads will have to cut even more teaching posts, which will affect every child’s ability to achieve their best.

My constituents deserve good-quality health services. Instead, we have seen the Tory Government shutting Chase Farm Hospital’s A&E and maternity units and slashing the number of in-patient beds by more than 400. The other hospital we now use and rely on, North Middlesex, is being put under increasing pressure, with the result that it constantly faces a crisis. The Royal College of General Practitioners has said that Enfield needs 84 more GPs by 2020, but I have little confidence that the Government will provide any.

On policing, in the past seven years we have seen a 70% increase in violent crime in Enfield as well as huge cuts in the number of uniformed officers on our streets. There is a relationship between these two things, but there was no mention of that today whatsoever. Sadiq Khan, the Mayor of London, has done everything he possibly can to protect frontline policing, but the Chancellor failed to commit to or even to mention additional funding for London’s police force. This Government are making London less safe for Londoners and tourists—for everybody who lives here—and this in a year in which we have seen five major terrorist attacks. London is less safe under the Tories, and this Budget helps nobody.

--- Later in debate ---

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Like any hon. Member ahead of a major Government event, I have been inundated with correspondence from people about what they did or did not want to see in the Budget—from concerns about beer duty, business rates, fuel duty, green-belt protection and Equitable Life to proposals to make the private rented sector more secure and affordable. Ahead of the Budget I diligently raised every issue I have been contacted about; the Chancellor and his team may have been concerned at having gained a new pen pal in the process.

I think that most people would confess that they did not have high hopes for this Budget, and the Chancellor has not fallen short in that regard. This Budget’s head is buried in the sand when it comes to the enormity of the challenges facing our economy. The downgrading of our growth, productivity and investment protections has implications for ordinary households up and down the country as they continue to face the misery of this cost of living squeeze—not to mention Brexit uncertainty and its looming implications.

I want to focus on a number of issues of particular interest to the north-east. In the Budget today, we finally received confirmation that the Government are minded to devolve funding and power to the north of Tyne areas, ending months of uncertainty. I look forward to seeing the details in the days and weeks ahead.

I also welcome the long awaited announcement of the funding to replace the Tyne and Wear Metro rolling stock, more than a year after the Government received a full business case from the region for that investment. About 40 million passengers use the Metro every year, but the poor reliability of the system has been causing constituents problems on a daily basis. We must have the investment in the new trains by 2021 if the Metro is not to grind to a halt. I would be grateful if the Minister confirmed that Nexus will be able to go to market this year to meet the timescale necessary, given that, according to the Red Book, the first tranche of funding will not be made available until 2019-20.

To continue my transport-related theme, despite clear commitments from the former Prime Minister and former Chancellor that further devolution to Scotland would not be allowed to disadvantage parts of the UK economically, we are still to receive from the current Chancellor a commitment on how he intends to mitigate the impact on English regional airports of devolving air passenger duty to the Scottish Government. Newcastle International airport is in my constituency and supports 19,000 jobs across the north-east. According to the Government’s own assessment, it will be the airport most affected by the Scottish Government’s plans to cut air passenger duty.

I first raised the issue in Parliament back in February 2016, and I have still not had an answer. “Wait and see” is not good enough on this key, vital infrastructure issue. We know that the Government are struggling to make a decision on anything at the moment, trapped as they are in this post-election Brexit quagmire of their own making.

[Jamie Stone]

Does the hon. Lady agree that the ideal solution for this cross-border tension—I speak as an MP who represents a Scottish constituency—is to get rid of air passenger duty altogether across the UK?

[Catherine McKinnell]

Obviously, it is incumbent on the Government to come up with a solution, but I am sure they will take on board the hon. Gentleman’s suggestion.

Combined with the continued uncertainty about the Prime Minister’s ability to deliver a deal that will not have a devastating impact on the UK’s economy, on investment and on our jobs, I fear that this zombie Government threaten to set our economy back decades if they do not rapidly get a grip, particularly for exporting regions such as the north-east. How can we possibly compete for business on a post-Brexit global stage if we struggle to make infrastructure decisions that have been dragging on for years, as on Heathrow and the Tyne and Wear Metro?

How can the Government be serious about rebalancing the economy and creating a northern powerhouse, when countless businesses are still none the wiser as to what that actually means? Indeed, just last week, the north-east chair of the Federation of Small Businesses said:

“Three years on from the first mention of the Northern Powerhouse… it’s still hard to find concrete manifestations of it. With a week to go until the Budget, we’d like to see the Chancellor take some meaningful steps towards getting the show on the road.”

He also said:

“We need cast iron guarantees about EU funding post-Brexit. Firms across the North East are benefitting from EU support to the tune of millions every year. One thing’s for sure, we won’t have a Northern Powerhouse unless that money’s replaced.”

Yet again, though, the Budget does not give the answers businesses need.

The north-east has so much to contribute to UK plc—indeed, it already does contribute—but if we are to achieve our full potential, we need a Chancellor who is on our side, who is prepared to rebalance investment genuinely to support sustainable economic growth and who is able to give businesses the confidence to invest. In highlighting its pre-Budget demands, the North East England chamber of commerce said:

“If the Government is serious about securing the much-heralded prize of closing the gap between London and other regions, there is major work needed to change the distribution of public and private investment, and economic activity in the UK. This is a trend that has built up over several decades. Listening to the calls of businesses in our region is essential to achieve this.”

However, it has become increasingly clear that, in meeting the challenge of reducing unemployment in regions such as the north-east, we must also solve the productivity crisis and tackle the epidemic of low-paid, insecure and low-skilled work that is afflicting our communities. Research published just this year by the TUC highlighted the fact that the north-east has become the UK capital of insecure work: the equivalent of two thirds of the new jobs created in our region in the past five years are without guaranteed pay or normal employment rights. People’s wages are now lower in real terms than they were in 2010. It is little wonder, therefore, that we are seeing household debt rising and more and more children living in poverty.

There is a whole raft of issues I could have covered today, many of which I have raised countless times before and to which we have still not seen any meaningful solution in the Budget this afternoon. There are the hundreds of families across Newcastle who have suffered absolute misery after the universal credit roll-out—I know that we have seen some announcements, but they do not go far enough. There are the thousands of women in the Women Against State Pension Inequality Campaign who are now in real financial difficulty as a result of the discrimination against them, and there are the local schools that are still struggling to balance their books because of the Government’s real-terms budget cuts.

We also have an NHS and social care system on its knees, with mental health services continuing to deteriorate because their funding is not ring-fenced. Public sector workers are all overstretched and undervalued, and they have seen a significant fall in their living standards as a result of the long-standing 1% pay cap. They need to know that any pay rises will be fully funded.

The issues I could have covered also include constituents who are now feeling the brunt of the £221 million of cuts that Newcastle City Council has had to make since 2010 and the £124 million of cuts imposed on Northumbria police over the same period.

All of that could have been addressed by the Chancellor today if the Government were serious about tackling tax avoidance and dealing with the cost of living crisis. All of that is falling further down the Government’s agenda as the Chancellor sets aside £3 billion to cover the anticipated costs of the Prime Minister’s potential failure to secure a Brexit deal. And all of that is further away from being addressed than ever before, with growth, business investment and productivity forecasts all dramatically downgraded.

Once again, constituents in Newcastle and the wider north-east have been failed by the Budget. The only thing it has succeeded in is living up to the expectation that it would simply not be up to the job.

Oral Answers to Questions

Jamie Stone Excerpts

Tuesday 24th October 2017 Commons Chamber

[The Chief Secretary to the Treasury (Elizabeth Truss)]

My hon. Friend is absolutely right. We should not be giving away our negotiating position when we are entering one of the most important negotiations that the country has ever been involved in, and that is why we need to be prepared for all eventualities. I am delighted to be meeting my hon. Friend tomorrow to discuss the issue in more detail.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

We are having difficulties with mobile banking in my constituency. I know of instances in which two different mobile banks have arrived in the same community while other communities have seen no mobile banks at all. We have problems with people queueing in rough weather and getting wet, and problems with paper banking. Will the Chancellor, or some other Minister, propose ways of reorganising mobile banking and making it more user-friendly, and of getting the banks to co-operate with each other to deliver a service that is vital in the highlands?

[The Economic Secretary to the Treasury (Stephen Barclay)]

Mobile branches are vital to many communities, and I am sure that many banks will have heard the hon. Gentleman express his concerns, but these are commercial decisions. It should be recognised that since 2011 the number of branch visits has fallen by roughly a third, that more than 600,000 people aged over 80 are now registered for internet banking, and that a fifth less cash is used for payments. Those changes in the market reflect the way in which branches, including mobile branches, are being used.

Devolved Powers in Scotland

Jamie Stone Excerpts

Tuesday 17th October 2017 Westminster Hall

[The Deputy Leader of the House of Commons (Michael Ellis)]

It is a pleasure to speak under your chairmanship, Mr Hollobone.

I congratulate my hon. Friend the Member for Stirling (Stephen Kerr) on securing this debate, his first in this Chamber. Hearty congratulations are very much in order. The debate has provided an important opportunity for us to reflect on devolution within the United Kingdom and within Scotland, and to look ahead to a stronger Holyrood in the next few years as we exit the European Union.

As my hon. Friend highlighted in his speech, it has been just over 20 years since people in Scotland voted to support the creation of a Scottish Parliament with tax-varying powers on 11 September 1997. In just over a year from now we will celebrate a further anniversary, that of Royal Assent of the Scotland Bill in November 1998. The Scotland Act 1998 established the new Scottish Parliament and set out its powers as a legislature within the United Kingdom. Since the Scottish Parliament first sat in May 1999, it has truly come into its own. Devolution is clearly the right approach for Scotland. It is what the people in Scotland voted for and it ensures that decisions are taken at the right level.

The Scottish Government may choose their own path on key policy decisions. Of course, I cannot say that I agree with everything that the Scottish Governments do or have done since 1999. I do not agree, for example, with the SNP Government’s decision to make Scotland the highest taxed part of the United Kingdom, and I do not agree with how they chose to handle common agricultural policy payments in the past couple of years, but I do agree that it is their right to decide those things for themselves. It is up to the people of Scotland to make their own judgment of their Government in devolved matters.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Will the Minister give way?

[Michael Ellis]

I am sorry, I do not have the time.

The SNP are failures—Ruth Davidson has the right ideas. Because of devolution, key decisions about Scotland can be taken in Scotland, while Scotland benefits from the pooling of risk and resources that comes from being part of a successful and historic Union. A powerful Scottish Parliament within a strong United Kingdom offers people in Scotland maximum security and opportunity, representing their interests in the world and allowing resources and risks to be shared effectively.

Devolution has also been shown to be flexible and responsive to changing needs and circumstances. Most recently, the Scotland Act 2016 ensured that the Scottish Parliament has a significantly greater say on matters including further taxation powers and welfare support in Scotland. The Scotland Act is now in the process of being implemented, with a number of its new powers already in force and the Scottish Parliament able to legislate and make choices on a range of new policy areas. The Scottish Parliament also has new powers, for example, to top up reserved welfare benefits or to create new benefits in devolved areas, should it decide to do so. Taken together with the existing powers of the Scottish Parliament, the Act creates an even more powerful and accountable Scottish Parliament within a strong United Kingdom.

That is what the people of Scotland voted for. The Scotland Act balances more decisions being taken in Scotland, closer to those they affect, with retaining the strength and security that comes from membership of the larger United Kingdom. The 2016 Act provides the Scottish Parliament with much greater tax-raising powers, which means that, from responsibility for raising around 10% of what it spends today, Holyrood will in future be responsible for raising more than 50% of what it spends. With new powers on welfare, the Scottish Government need to publish details of how they plan to support disabled people in Scotland, for example.

Enough of the grievance culture and the obsession with process; the SNP and the Scottish Government must use their powers to serve the people. The Scottish Parliament has unprecedented flexibilities on income tax—to set income tax rates and thresholds for earned income, including the ability to introduce new tax bands—so it is most unfortunate, and I suspect that many in the Chamber who represent seats in Scotland will be dismayed, that that power is being used to hike income tax on Scots in their constituencies and throughout Scotland. It is vital that the new powers are used to the greatest benefit in Scotland. I have heard much concern this afternoon about that not being the case from those on the Conservative Benches, who are rightly concerned that it is not the case.