Motor Vehicles (Compulsory Insurance) Bill

Jane Hunt Excerpts

3rd reading
Friday 28th January 2022 Commons Chamber

[Jane Hunt (Loughborough) (Con)]

I am delighted to follow my hon. Friend the Member for East Surrey (Claire Coutinho). I nearly said right hon. Friend—it is only a matter of time. I congratulate my hon. Friend the Member for Wellingborough (Mr Bone) on an excellent piece of legislation.

Brexit was an historic moment for our country, which brought with it the opportunity to free our businesses from overbearing bureaucracy and reduce costs for consumers in order to boost innovation and growth across the economy.

[Anna McMorrin]

I just could not let that go, sorry. Notwithstanding this Bill, which does look to streamline certain issues, there are many Brexit-related issues up and down the country, in our businesses and at our borders. I do not think the hon. Member can justify the comments she just made.

[Mr Deputy Speaker (Mr Nigel Evans)]

The good news is, this is not a debate about Brexit. I do not mind passing references to it, but let us not turn the debate into something that it is not.

[Jane Hunt]

Thank you, Mr Deputy Speaker.

This Bill is another step in the right direction as, by ending the effect of the Vnuk decision, we will remove needless and excessive liabilities that place an unnecessary administrative and financial burden on the Motor Insurer’s Bureau, businesses and policy holders. Indeed, I note that the Government Actuary’s Department has estimated that Vnuk would lead to an estimated £50 annual increase in insurance premiums for motorists and £2 billion in extra overall costs for the insurance industry. This would be a terrible outcome, given the current issues over the cost of living. I also agree with my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) that, given that £50 is only the average, younger drivers will bear the brunt of the increase as they constitute a higher risk.

We also know that Vnuk would impact significantly on businesses, in particular those in the motor sport industry. Ahead of the debate, I was contacted by one of my constituents, Mr John Kirkpatrick, who is a director of the Motorsport Industry Association. He has informed me that the association has been lobbying the European Commission against the adoption of the Vnuk proposal because, as the UK Government have acknowledged, it could lead to an additional annual cost of £458 million for the UK’s motorsports industry. I am told that the industry has a turnover of £10 billion annually and is of huge importance to the midlands, being the centre of motorsport valley and employing 40,000 people. It is also recognised globally as the centre of excellence and the go-to community of knowledge and innovation. So this Bill would go a long way to supporting the midlands economy and helping to level up the country.

Of course, since the ruling the EU has also taken steps to address its impact. This leaves the UK in the perverse situation that it is stuck with a snapshot of EU law at the end of the transition period, all while the EU itself is enacting reforms to address what it has described as absurd over-regulation. Well, amen to that, Mr Deputy Speaker.

Taking all this into account, I will be supporting the Bill today, and I hope that the Government continue to work to remove all unnecessary red tape inherited from our membership of the EU so that we put the success of our businesses and the finances of consumers first.

--- Later in debate ---

[Jane Hunt]

Does my hon. Friend agree that, in addition to those tax savings, a number of very large businesses—farms, for example—have numerous vehicles that never go on the public highway, and this would have a greater impact on them?

[Dr Davies]

Indeed. It is true that those with multiple vehicles stand to be punished even more if the Bill does not pass—my hon. Friend is quite right.

My constituent Andrew Wilde wrote to me earlier this week. His whole family are motorsport enthusiasts—in fact, he is a member of the North Wales Autograss Club —and he believes that the Bill will support the whole industry. He worries that without this Bill, the UK motorsport sector will see insurance costs increase by over £450 million.

Andrew goes on to say:

“I believe motorsport brings a lot to this country - more than simply Lewis Hamilton winning the FI Title. That can be seen when you drive down the M40 & see the high quality companies based in our country. It provides good quality jobs & just as important, hundreds of thousands of the population with enjoyment, either participating or watching.”

I very much share my constituent’s positivity, and I am pleased to support the Bill.