Covid-19: Future UK-EU Relationship

Jim Shannon Excerpts

Wednesday 15th July 2020 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

Covid-19 has absolutely affected every walk of life. It is my belief that no person in this nation has been untouched by it, and the first words in the debate title are“covid-19”. There are those who grieve the loss of good people—upstanding members of our communities and families—and people we have been unable to grieve appropriately. As we move into a closer approximation of normal, that loss of life is felt more keenly.

I want to speak about covid-19, and then comment on where we—or rather I—stand. We have lost businesses and jobs. I have a big hospitality business in my area that is in the resort game. It has invested £150,000 of its money, and it is at a loss at the moment to find a way forward. I am very aware of its circumstances, which may be only the tip of the job loss iceberg. The action of the Government has prevented a crash for a great many business—that is true—but we will undoubtedly be fighting economically for many years to come; indeed, our grandchildren may feel the pinch in their working life if we do not get this right.

Just in my small office of six members of staff and myself, one member of staff lost her sister at the end of March to coronavirus. She was unable to bid her a final goodbye and is deeply hurting. Another member of staff was due to be married in Italy at the end of June, but she has seen her plans decimated and brought to nothing. Another staff member is originally from Australia but now lives in Northern Ireland. She heard sad news of her sister in Australia who is in an intensive care unit, but again she could not visit her family or speak to them. I have another staff member whose mother-in-law was diagnosed with terminal cancer, but again, they were not able to do anything about that. My parliamentary aide has two wee daughters, one of whom has uncontrolled asthma. She has been shielding for 16 weeks, and will be until the end of August.

I say those things because, as with my staff members and many others across this great nation, people’s quality of life and mental health has been massively affected by coronavirus. I say that to put a human aspect into this debate, and to underline what the cost has been to normal, everyday people. The negotiations that we are now doing must be carried out with less grandstanding, and by sorting these problems out.

I cannot create jobs out of nothing for those who have lost businesses. I do not have that ability, but this Government can, the Northern Ireland Assembly can, the Scottish Parliament can, and the Welsh Assembly can. I can, however, be part of the solution in this House when making decisions to promote employment, and ensure that the Government do their best for Northern Ireland. I cannot undo the mental trauma that has affected my nation, but I can be a positive force for a bright future, and that is what I wish to highlight today.

I am very fond of my Gaelic cousins on the SNP Benches, and I genuinely mean that in all honesty. However, I am so divorced from their point of view given what they have said—that is respectful to them all, and they know that—that this is one cousin who will not be voting for their proposal tonight. I do not want this to be a sniping opportunity to rehash the old “deal or no deal” arguments that we can all repeat in our sleep; I believe our role as MPs is to think sensibly and create hope, and having the same old arguments about the pros and cons of the European Union does not give hope for our future. Instead, constructive dialogue about a sensible way to carry out the wishes of the people is the way to do that.

In the 2016 referendum, my constituency of Strangford voted by 56% to 44% to leave—that is unlike the constituency of the hon. Gentleman the Member for North Down (Stephen Farry), where it was very marginal at 50.1%. That is all it was.

[Stephen Farry]

52%.

[Jim Shannon]

Can we take a moment to consider what we hope to achieve in today’s debate? My desire is simple: it is to say on behalf of Strangford, let us stop the tearing down and start the building up. Let us work for our agrifood sector—I look to the Government to ensure that happens—and for our fishing villages in Portavogie, Ardglass and Kilkeel. Let us put pride and confidence back into the fishing community, grow that economy, and create jobs. We can do that after Brexit. We can do that when we leave—I very much believe that in my heart, and boy do I look forward to that day.

Let us work together in this place to present a united front to Europe to say—possibly for the first time—that although we want the best for our country, that does not mean that the European Union has to be the loser. If we think and work sensibly together, and build up trading partnerships that are beneficial, we all can win—that is everybody; all regions together—and help our economies and constituents who have been ravaged by this unseen enemy. As my mother would say, today we should say, “Enough of the messing and more of the achieving!” Where there is a will there is a way. We should respect the will of our people, who made it very clear in June 2016. We must get the best possible future in place, with sensible dialogue and the end of senseless rhetoric. We all voted together in that referendum, and we voted to leave.

The Economy

Jim Shannon Excerpts

Wednesday 8th July 2020 Commons Chamber

[Steve Barclay]

When it comes to speaking up for his constituents, I do not think the hon. Gentleman has ever held back, whether or not he is being cheeky in doing so. He raises a very important point about the investment in flood prevention. That is why the Chancellor set out a number of measures as part of the infrastructure package, and I will come on to say more—[Interruption]—if he allows me to get into my speech, about how we are accelerating a number of projects with that in mind. Given the history of coal and some of the tragedies that have happened in the past in Wales, we are very cognisant of the need to take action on such schemes. Again, that is being looked at by the Secretary of State for Wales, and I have been in discussions with him on that.

Let me now make some early progress. The Government were clear that we would stand by those whose livelihoods were in jeopardy through no fault of the own. We said we would do whatever it takes to protect and preserve the businesses and jobs on which our national prosperity and resilience ultimately depend, and we meant it. The House will be familiar with the scale and scope of our economic response, which has included business rates reliefs and grants for the worst-hit sectors, uplifts in welfare support for families struggling to make ends meet and more than £70 billion of business loans and guarantees approved to date. Meanwhile, the coronavirus job retention scheme and the self-employment income support scheme have preserved many millions of jobs and livelihoods across England, Scotland, Wales and Northern Ireland, demonstrating once again the shared strength and resilience we derive from our Union.

[Jim Shannon (Strangford) (DUP)]

Will the Minister give way?

[Steve Barclay]

I know the hon. Gentleman is a passionate defender of the Union, and I give way on that point.

[Jim Shannon]

We are very much better together. The Minister and I know that, and everyone else in the House knows that as well, even my friends to my left.

One of the things that concerns me is the aerospace sector, and the manufacturing base in particular. We have the possibility of losing 600 jobs at Bombardier in Northern Ireland and some 45 jobs at Magellan, which is a smaller contractor in my constituency. Within this process—and I thank the Government for all the moneys they have made available—will there be extra help for the aerospace sector, particularly for small firms and for the apprentices in those small firms?

[Steve Barclay]

As the hon. Gentleman knows, the Chancellor addressed that issue in his statement earlier. Indeed, he wrote to the industry in March setting out the terms on which Government support would be offered, including the requirement for firms first to look at what support they could receive from their own commercial backers and shareholders. On individual firms, what discussions take place is a matter of commercial confidentiality, but the Chancellor indicated both his engagement in that issue and that of the Secretary of State for Transport.

All in all, the United Kingdom’s economic response to covid is one of the most comprehensive and generous of any Government’s in the world. The past few months have been hard for everyone, particularly the many families whose loved ones have lost their lives. But thanks to our collective grit and determination, the tide was turned and the infection rates fell, and we are now in a position to reopen our economy in a way that is safe to do.

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[Wes Streeting]

The Economic Secretary to the Treasury said that it is cheap. I am not sure that a seat at a Conservative party fundraiser is particularly cheap, and it is certainly a price too high for lobbying the Government, but there we are.

Let me turn now to the comments made by Torsten Bell, the chief executive of the Resolution Foundation. He said that the £2 billion kick-start scheme is “a very welcome return” to the approach of the future jobs fund, but he notes that creating those opportunities will be a huge delivery challenge. He says that it will need loads of these jobs to be created by local authorities, and he is right. The success or failure of the kick-start programme will depend on the strength of local government to help deliver it, so it is time for the Government to put their money where their mouth is and fund local government properly.

[Jim Shannon]

The shadow Minister is right about the role for local government and the important role that it plays. My local council of Ards and North Down has a very clear economic plan. With low rates and with the highly skilled employment that we have, the opportunities are very clearly there. All we need is that investment. I know that the Government have given so much on the Barnett consequentials and that is really important, but it is also important that we have strategy that works for both the Northern Ireland Assembly and for here as well.

[Wes Streeting]

The hon. Gentleman makes a really important point. Of course, the devolved Administrations can provide their own policy responses, but we know that decisions taken here on public spending have a direct impact on their ability to respond accordingly, too.

We have said throughout this crisis that we would not criticise for criticism sake, and beyond the kick-start future jobs fund announced today, we welcome the attempt to make sure that the furlough scheme gets people back to work, instead of making them redundant through the jobs retention bonus. We are glad that the Chancellor included provision to get people into training and apprenticeships in his statement, and we welcome the additional resources provided to the Department for Work and Pensions to help get people back into work. In so far as they can, we hope that the cut in VAT and the limited “eat out to help out” scheme will be of some assistance to our tourism and hospitality industries, but this falls far short of what we called for and what was promised. We were promised a new deal, but the Chancellor’s big announcement was a meal deal. The Chancellor said that we cannot have endless extensions to the job retention scheme, which was echoed by the Chief Secretary, and that we cannot allow furloughing to go on forever. We agree. We have never argued otherwise. This straw man argument does a real disservice to the concerns coming from those employers and industries that face the biggest and longest hit as a result of covid-19.

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[Alison Thewliss]

I agree with the hon. Member. Not all industries are in exactly the same position. Some cannot open now. Some will not be able to open for some months. As hon. Members said earlier, some might not open fully until next year. The International Monetary Fund has said that the UK’s GDP could drop by 10.2%, and the scale of the response must meet the scale of the challenge we face, or we could be looking at years of unemployment and hardship across the UK.

Simon Jack, the BBC’s business editor, made a very interesting point about the scale of the challenge facing business and the gamble that business are now taking. As he said, the calculation facing business owners is: are they prepared to pay 5% of the wages of furloughed workers in August, 15% in September and 24% in October, plus £1,560 from November, to get a £1,000 bonus in January? It will depend on demand that the Chancellor is trying to stimulate with food discounts and VAT cuts. It is a gamble for many businesses, and we can see from all the job cuts in the past week, that gamble means people losing their jobs now.

[Jim Shannon]

It is about not just businesses but charities. The Government have said that £750 million is for charities, but unfortunately they are not helping those charities involved in research and clinical testing. Without the clinical testing, we do not have the medicines that can save lives, which will help this community in the future.

[Alison Thewliss]

The hon. Gentleman is absolutely correct to make that point.

We are all aware that the crisis will inevitably see an increase in public debt, and my ears pricked up at the Chancellor’s mention of the medium-term public finances being put back on a sustainable footing. That better had not mean more austerity, because after the 2008 crisis we saw that the contractionary policy does not work. It spread misery and hardship, and does more long-term damage to the country’s fiscal position. As we move out of the reactionary emergency policy and into more deliberate methods of restarting and rebuilding the economy, a more radical approach from the UK is needed. Growing the economy and tackling the inequalities we have seen during this crisis must be the priority over deficit reduction.

The past few months have seen measures that would not have seemed possible only a few months ago. Although some of the Chancellor’s announcements today are welcome, we need that bigger, bolder and fresher thinking. We cannot rely merely on the private sector to stimulate the economy; the Government must take the lead. The Chancellor’s statement made mention of the green recovery, vouchers and other types of ideas. Let me expand on what I said to the Chancellor about what Germany has done through the KfW Development Bank, which has changed the whole conversation about energy-efficiency in its buildings. The Chancellor could start to do some of that, not by way of vouchers, but by a cut on VAT on building repairs, as that would encourage people to invest in their properties, in energy-efficiency measures and other types of such activity; it could make a real, lasting difference, rather than just being a voucher.

We support policies such as an employment guarantee for young people, and we welcome a temporary cut to VAT to boost consumption, with low rates for the hospitality and tourism sectors. We hope that that will be sustained beyond the six months, if required. Policies such as a 2p cut to employers’ national insurance contributions would also protect jobs and reduce the cost of hiring staff. We also want to see a national debt plan to deal with the debt that businesses and individuals are suffering, in a way that promotes fairness as well as economic recovery. That would mean working with lenders to ensure that loans, mortgages and rent holidays could be extended to those experiencing financial hardship as a result of the crisis and that alternative payment plans are put in place to help prevent people from losing their homes.

I would be keen to see the pilot on no-interest loans for people on particularly low incomes, which has previously been considered by the Treasury, because it would provide alternatives to high-cost credit, which is exploitative and predatory and ruins lives in my constituency and elsewhere. The reason people are often forced to turn to that high-cost credit is the shameful five-week wait for universal credit, which has been named as one of the biggest drivers of food bank usage and rent arrears in recent years. We could be forgiven for thinking that it is just part of the system, so inflexible have the UK Government been on this issue, but it is a choice and they could change it if they wanted to do so. I very much urge them to do that and to look at the fact that there has been no increase in legacy benefits, because many of the people affected have not seen an uplift and are struggling. The Government need to make the choice to spend the money, cut the wait and lift families out of poverty. The single most effective policy in reducing child poverty would be to increase UC payments, and Scottish National party Members are calling for an increase of £20 a week in UC and child tax credits as part of any stimulus package. Such an increase is supported by the Joseph Rowntree Foundation, Save the Children and many others, and we need to make sure that these families are not left behind as a result of this crisis. The Government should also look at the position for those people who are not entitled to that—people with no recourse to public funds—many of whom have been left with nothing.

The policies put forward today are attractive to those who have disposable income, but we have not seen many policies for those who have very little income. For families in Scotland it is too often the case that the Scottish Government have been the grown-ups in the room, presenting a clear and focused strategy for delivering economic growth, while tackling inequalities. It is unfortunate that we have had to look at a Government down here lurching from scandal to scandal to self-inflicted crisis. It is little wonder, therefore, that over the past week we have seen in the polls a majority for independence, at up to 54%. It is no wonder that the Government seem so rattled by that, because it is clearly a direction of travel, so perhaps they would like to reflect on those polls when considering the support given by the UK Government to the people of Scotland.

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[Jim Shannon (Strangford) (DUP)]

Three points made very quickly.

First, I want to plug the charity Kidney Research UK. I understand the Government have set aside some £750 million for charities, but the likes of Kidney Research UK and Cancer Research UK do clinical research. They have not been able to fundraise and so have not been able to get any money to continue that clinical research. Without that clinical research, we will not have new medications, or new ways of saving lives and making lives better, so I am very mindful of that.

Secondly, on aerospace, there will be a meeting tomorrow with some of my people, where Magellan Aerospace will be answering questions about job losses.

Thirdly, in the last 25 seconds or so I want to make a point about Northern Ireland. Northern Ireland has lower rates and a highly skilled labour force. It is a perfect place for investment. I say to everyone in this House that if they have a company that wants to invest, come to Northern Ireland. Invest Northern Ireland and the Northern Ireland Assembly are there to help. We need the Government to do their wee bit as well. In the last five seconds, I will just say this to the Government: “Do your best for Northern Ireland.”

Coronavirus: Job-Support Schemes

Jim Shannon Excerpts

Tuesday 7th July 2020 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I begin by thanking the Government for the steps that they took at the outset of this pandemic. There are many shops on my high streets and many businesses in my constituency that would have not been open today were it not for the grants and for the staff receiving the furlough. I believe in giving credit, so I give credit to the Minister and to the Government for all the help that they have given. I want the Minister to remember that that is my starting point, because I am not criticising but I want to highlight a number of issues.

With reference to the self-employed income support scheme, my constituent Alan Petticrew ran into difficulties due to the fact that trading profits must be no more than £50,000 and at least equal to non-trading income for 2018-19. Alan’s trading profits were less than that so he received no assistance at all, despite the fact that he had overheads and creditors. The Government can and should make provision for limited company directors. It is not right that anyone who has suffered financially as a result of the public health measures should be left out of support. It is not right for the economic recovery either. The UK relies on an army of limited company directors and freelancers for economic growth. They already face more uncertainty, risks and lower levels of protection than other workers, and the recovery will be slower if they are not about.

[Carla Lockhart (Upper Bann) (DUP)]

The Treasury has done a magnificent job, but ultimately Martin Lewis has summed it up: a number of people have not benefited, including people who have changed jobs, started a business in the past 18 months, been freelance, directors or agency workers, or had an employer who did not really care.

[Jim Shannon]

I thank my hon. Friend for her intervention. She is absolutely right. That will be reflected in all our constituencies across the whole of the United Kingdom of Great Britain and Northern Ireland.

My next example is that of our fishing sector. A self-employed fisherman whose average earnings were just above the threshold for the self-employed scheme was not entitled to any financial support from the scheme. The guidelines should have been amended, as the scheme pay-out was capped at £2,500 and seemed discriminatory in that it only offered assistance to the self-employed earning under £50,000. This was also not in line with the PAYE scheme. The Government stated that this affected only a small percentage of people—it is just unfortunate that many of those people happen to be in my constituency and are my constituents. Not everyone who was employed during the tax year 2018-19 but has since become self-employed qualified, so they had no recourse to wages. That was despite being employed and switching to being self-employed. Again, the issues are very clear. Some people’s income through employment was more than their income through self-employment because they decided to become self-employed part of the way through the year 2018-19, and they did not qualify. Again, I believe that is very unfortunate and unfair.

The Chancellor set the date for the furlough scheme at 19 March rather than 31 March, but that excluded thousands of people, like my constituent Carl. Most companies end their financial year on 31 March, and many like Carl take their annual salary then. The date that the Chancellor set excluded my constituent and many others from the scheme. It is more than a case of semantics.

The discretionary aspect of the furlough scheme also led to difficulty with small business employers who were able to keep their shops open. With a third of staff asking to be furloughed, those who owned the shops had to work six days on 18-hour shifts in an attempt to keep their businesses afloat and their staff happy. On the other hand, there were employers—we all know about them—who refused to furlough when companies on mainland UK did. Again, the guidance could have been a wee bit better.

The fact is that we are facing the worst recession in living memory, and brighter and better minds than mine have come up with steps that could be taken. I put forward the suggestion, which has been mooted in the press and elsewhere, of spending vouchers for certain British businesses on my high streets in Newtownards, Comber, Ballynahinch and Saintfield. That would help many businesses and suppliers in the local economy.

I thank the Minister and the Government for what they have done. Please continue sowing, and we will reap the bounce back from the recession much more quickly. If the things that I and others have talked about are done, our businesses will be in a better place.

Finance Bill

Jim Shannon Excerpts

Report stage & Report stage: House of Commons & Report: 1st sitting & Report: 1st sitting: House of Commons
Wednesday 1st July 2020 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to be called to speak in this debate and make a few short comments. None of us can accept the argument that tax is boring, because it is not boring. Tax is a necessity: it is necessary for building a recovery and it is necessary for helping others. On the earlier earlier about the help we can give to other countries through DFID—and through the new Department and the new Minister who will have this responsibility—I am very much in support of helping out countries in other parts of the world where we need to be.

I want to speak to new clauses 5 and 33 and amendments 18 and 19 in relation to the digital services tax. I work with my local high street to attempt to see businesses reopen and not shut their doors, and a large part of my efforts over this last period of time as an elected representative, along with others, has been to help point them towards the dual concept of online sales as well as a high street presence. I suppose many of those shops have a small online presence but some do not, and I am very keen to work with the Government—here at Westminster, but also the Northern Ireland Assembly, including my own colleague and friend, the Economy Minister—to ensure that the opportunity of having an online business or increasing online business is there to help.

For many, the ability to make ends meet strictly on the high street has been curtailed owing to lack of footfall and to more people learning to shop online during the crisis, when that was all they could do. Others have referred to us—indeed, I think it was Margaret Thatcher who referred to us—as a nation of shopkeepers. I have to make a confession that my mum and dad were shopkeepers. From a very early age, I can recall that we owned a shop—the post office—in Clady outside Strabane.

[Bob Stewart]

I thought it was Napoleon who said we were a nation of shopkeepers—or perhaps it was Hitler. It was one of those people. I am not sure it was the hon. Gentleman’s mum or dad, or uncle.

[Jim Shannon]

I think I said it was Margaret Thatcher—as far as I am aware, it was neither of the other two. It was said by our former Prime Minister, who led this country for a long period, and I am pleased to put that on the record.

When my family moved to the east of the Province, to Ballywalter, my mum and dad continued as shopkeepers. We were the first people to have one of the grocery stores in our village of Ballywalter, and this was at the start of the chain stores, the supermarket chains and so on. So, again, I am pleased to be associated with those comments.

As things stand, it is clear that although our online businesses will be paying the appropriate tax, it is not the case that there is regulation of all digital services globally. It is unfair that international firms benefit so vastly from reliefs that our own people are unable to access. As right hon. and hon. Members have said, it is time we made such firms accountable for their tax regimes and ensured that the money they earn in this country stays here, so that we can build our own economy and pay some of the debts that have been accumulated in these past few months.

For too long, we have been trying to reach an international reasoning on this, but that has not been accomplished. The Government have said that they would disapply the digital services tax if an appropriate global solution was successfully agreed and implemented. That remains their position, and it is a logical one. It is right that if we cannot get our internationally accepted, one-size-fits-all approach, we should cut our cloth to suit. The sheer scale of the possible income underlines the importance of putting measures in place. We must make sure we have accountability in the tax process, including for those who shift their money overseas, for whatever reasons and using whatever methods.

The House of Commons Library briefing outlined the Government’s belief that if they implemented the UK’s digital services tax, it could raise more than £400 million a year by 2021-22, which is not too far away. If that could be done, it would help balance the books and it would help our Government, who have allocated moneys during the covid-19 crisis, to ensure that we could pay back some of that debt. This is absolutely worthy of work and consideration in this place. Understandably, it is difficult to be accurate about the worth of this tax, but even half of that estimate, £200 million, could change policing in our communities, building relationships and confidence. Those moneys could be used for the purposes for which tax is used; they could make expensive, life-changing drugs, such as Orkambi, readily available at all trusts. Given my role as my party’s health spokesperson, and as someone who has been involved in the rare diseases groups here at Westminster and, in a former life, at the Northern Ireland Assembly, I know how just how important it is to have those drugs available for rare diseases, and revenue is the way that that happens. We can and should make the difference. This money can and will make a difference, and, in lieu of international agreement, it is right and proper that we go ahead with this legislation.

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[Tim Farron (Westmorland and Lonsdale) (LD)]

There has been much talk of Roosevelt and the new deal but, as the hon. Member for Cardiff North (Anna McMorrin) said, the Roosevelt new deal comprised 40% of US GDP and the Prime Minister’s announcement 0.2% of UK GDP. The new deal rhetoric is right—let us congratulate the Government on that—but the reality is utterly limp.

We stand on the precipice of a recession, probably the worst of our lifetimes, and so it is good to hear Conservatives, for the first time in generations, looking to the great liberal economist John Maynard Keynes for inspiration. This is a time to boost demand and economic activity, to create jobs by direct Government intervention. We will do that by borrowing to invest, and we should do so on a colossal and ambitious scale. Yesterday’s announcement of £5 billion investment would transform Cumbria, if all of it was spent there. No serious person thinks it will even make a dent in the UK-wide economic situation.

Nor does that investment, of course, comprise a green infrastructure revolution. Yet, if we really are to build an economy that is better, that is the revolution we would choose. An active, ambitious Government would invest not £5 billion, but the £150 billion that the Liberal Democrats propose, over the next three years. That way, we would stand a chance of ending the recession before it starts, protecting and creating jobs and preventing hardship. We would also stand a chance of leaving a legacy that future generations will thank us for.

In working together, in a collective national endeavour to build the sustainable infrastructure we need, we can generate the national unity and common purpose that has been absent ever since the debate about our relationship with the rest of Europe turned into a self-destructive culture war. We can unite the country, avert the recession and save the planet all in one go, but it will take an awful lot more than 0.2% of GDP.

So what should we do? We expect to see as few as 3,500 social rented homes built across the entire country this year, the lowest number in history. In my constituency alone, we have 3,000 people languishing on the housing list. We need new homes, genuinely affordable homes and zero-carbon homes. The Government must fast-track the affordable homes programme and spend it on building new, zero-carbon social rented homes.

The Government must also launch a nationwide programme of energy insulation, starting with the homes of those with the lowest incomes, and they must also use this time of fast-tracked legislation—since they are in the mood to do it—to reform the Land Compensation Act 1961 to prevent land values from being inflated, so that we can make zero-carbon homes more affordable to build and more likely to be built.

Transport is key to rural communities such as mine, and to the environment and the recovery. In the north-west, transport spend per head of the population is still barely half of what it is in London, despite the promises made when the northern powerhouse was established. Bus services in London receive a £722 million annual subsidy; in Cumbria, we receive nothing at all. What little money exists rarely makes it north of the M60—not much of a powerhouse, and not very northern.

Our communities in South Lakeland have done a spectacular job putting together community bus services, such as the Western Dales Bus service connecting Sedbergh and Dent with Kendal and the surrounding communities, to plug some of the gaps caused by the steady loss of services, but we should not have to do that. The lack of subsidy means that fares are extortionate, which is a huge challenge, especially for low-paid workers. The 5-mile journey from Ambleside to Grasmere costs £4.90; a journey of equivalent length in London costs £1.50.

Bus services are essential to life in rural communities such as ours—essential to boosting our economy, moving to zero carbon and tackling isolation. They are also key to Cumbria’s vital tourism industry. Between 16 million and 20 million people visit us each year, and 83% of those visitors travel to us by car. With the right interventions and conditions, our visitors will travel sustainably.

We ask for a comprehensive, affordable rural bus service connecting all our villages to our main towns regularly and reliably. We ask for a network of electric hire bike stations. There should be such stations at all railway stations, in village centres, and at major bus stops, and action to make cycling easier and safer throughout Cumbria. We ask for the Lakes line, which connects the English Lake district to the main line, to be electrified. It is shameful that the Government cancelled electrification plans in 2017 for utterly bogus reasons. Now is the time to keep that promise and electrify this iconic line, which serves Britain’s second-biggest visitor destination after London. We ask that there be a passing loop on the Lakes line at Burneside to enable a huge increase in capacity, and we ask for Staveley station to be made accessible, so that it is no longer out of reach of those with mobility difficulties, who cannot make it up the 41 steps.

We ask that the Government show their commitment to industrial renewal and to tackling the climate emergency by investing in wave, hydro and tidal power in the most beautiful but—let us be honest—wettest part of Britain. Why is it that the UK, with the highest tidal range on the planet after Canada, spends so little on the reliable power that water offers? We are proud to have Gilkes in Kendal, beacon to the hydro energy industry. Let us back it, and others like it, so that we can get Britain working, sustainably.

For Cumbria and Britain, building back better and greener is possible—essential—but it means doing more than just using Roosevelt’s name; it will mean deploying Roosevelt’s courage.

[Jim Shannon]

I am thankful for the opportunity to speak on this important topic. I declare an interest as a landowner. Many years ago, I used the initiative to provide saplings to landowners free of charge, and I planted 3,500 trees on my farm—my father’s farm, as it was then. Over the years I have watched them grow, and have seen wildlife flourish. I am very proud of my biodiversity foray. However, I would never have thought to use some five acres of my farm to plant trees had not the relevant Department publicised and encouraged the scheme, and made it easier for me.

I understand that the Prime Minister has this week indicated that 1.5 billion trees will be planted between now and 2050. That will raise forest cover across the United Kingdom of Great Britain from 15% to 17%. I would have liked more than that, of course, but I welcome it; we should welcome that very positive announcement. It is clear to me that Government initiatives on the environment make a difference. I am not talking about ceasing production of diesel cars or other preventive measures; I am talking about initiatives from which the constituent feels the benefit. Constituents knew that they could get money for scrapping their old carbon-emitting guzzler car, and could put that towards a more environmentally friendly car that cost them less in road tax, and they did it. They knew that they could get a grant to help install solar panels on their roof and for insulation, so that they did not have to use as much oil, and they did it. Battery storage is one of the projects in my constituency. We hope to see it going forward as one of our very positive green energy projects. I understand that my hon. Friend the Member for North Antrim (Ian Paisley) is in discussions with the Government about hydrogen vehicles. He also asked a question of the Prime Minister today about buses.

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[Mr McFadden]

I am not sure about the part of the right hon. Gentleman’s intervention that referred to foreign companies, but the turbulence of the labour market right now does pose a danger to contractors. The Government have already recognised that to some degree in the delay announced for this measure.

Withdrawing support schemes at the same pace for all sectors does not recognise that some sectors are in far more difficulty than others, and that is particularly true for any sector based on the idea of people gathering closely together. Many sectors such as transport, aviation, sport, theatre, music, and others, are global British strengths, but right now they are on their knees. Dropping the social distancing rule from two metres to one metre is not enough when, in some cases, any kind of social distancing is impossible. Let us take live music, for example, which is based on the very opposite of social distancing. The break-even point for many venues and events is often being 80% to 90% full, and the change to one metre will not make that much difference to them. We need an approach that takes into account the different impact on different sectors.

If there was already a sectoral problem in withdrawing employment support, there is also now a geographical one, because Leicester is entering its second period of lockdown. Our thoughts go out to the people and businesses there who, like the rest of the country, have made great sacrifices over the past few months. We cannot yet know how long that second period of lockdown in Leicester will last. It could be a few weeks, but equally, it might be longer. Neither can we know whether Leicester will be the only place to go into another lockdown. Other cities may follow, and there has already been speculation about where those might be. How can it be right to withdraw employment support on a national basis when we are no longer in a single national position on the easing of lockdown?

We are asking people and businesses in Leicester today, and possibly other cities in the days and weeks to come, to shut down for a second time, and they should not be penalised for doing so. Will the Minister consider as a matter of urgency flexibility in the unwinding of the furlough and other support schemes, to take account of the new development of at least one, but possibly more, local lockdowns? Let me now turn to the future, and the jobs that might be created. The Government announced their back-to-work plan yesterday.

[Jim Shannon]

Something that concerns me—and I know that it also concerns the right hon. Gentleman and many other Members—is the fact that manufacturing as a proportion of the UK’s GDP has fallen from 30% in 1970 down to 10% today, which is perhaps why our economy has not grown as it should have. I understand that if we do not get that figure up from 10% to 15%, we will not have a manufacturing base for the future. Does he share my concern that if we do not retain, restore and increase our manufacturing base—including in the aerospace sector, for companies such as Bombardier in my constituency—it will not have a future?

[Mr McFadden]

There is no MP from the west midlands who does not care about our manufacturing base. It is a vital part of our economy. It may be true that we make less than we used to, but it is also true that we make more than we think, and we should never be dismissive of the activity and the creativity of making things in this country.

The Government announced their back-to-work plan yesterday, praying in aid President Roosevelt and the new deal. First, the Prime Minister wanted to compare himself to Churchill. Now it is Roosevelt. We have to wonder why he seems so uncomfortable with just being himself. Let us look at the comparison. F. D. R.’s new deal did indeed rescue the United States from the great depression. Millions of workers were hired, 255,000 miles of roads were built, as were 40,000 schools and almost 1,000 airports—major infrastructure projects that modernised the United States and stood the test of time, all at a cost of around 40% of pre-depression United States GDP. By contrast, what the Prime Minister announced yesterday was around 1% of the cost of the new deal—one cent on the dollar, if you will. He has taken the old political maxim, “Under-promise and over-deliver”, and turned it on its head.

I know that the Minister likes a good book. One of the shorter, but nevertheless hugely illuminating, studies of Roosevelt’s approach comes in Doris Kearns Goodwin’s book on leadership. In it, she sets out Roosevelt’s watchwords behind the new deal. I will leave the House to make its own judgment on the comparison between this and the Prime Minister. First, “Strike the right balance of realism and optimism”—not everything has to be claimed to be the biggest or the best in the world. After the events of recent months, systems that just worked would be an improvement. We then have, “Infuse a sense of shared purpose and direction”, “Lead by example”, “Forge a team aligned with action and change”, “Bring all stakeholders aboard”, “Set a deadline and drive full-bore to meet it”, “Address systemic problems. Launch lasting reforms”, “Be open to experiment”, “Adapt and be ready to change course where necessary”, and “Tell the story directly to the people”. That was Roosevelt’s approach, and I will leave it to others to judge whether the Prime Minister’s approach falls short not only in scale but also in spirit.

Economic Outlook and Furlough Scheme Changes

Jim Shannon Excerpts

Tuesday 16th June 2020 Commons Chamber

[Jesse Norman]

As my hon. Friend points out, we are working very hard to protect people in employment. That is what the latest numbers recognise, with the employment number as opposed to the unemployment number. But we must be realistic about this. We are in the middle of a pandemic crisis and there will be further losses; we have to understand that. The key thing is to make sure that we are as robust, energetic and inclusive as we possibly can be in supporting people in employment and supporting them back into employment when they come out of the jobs market.

[Jim Shannon (Strangford) (DUP)]

First, I thank the Financial Secretary very much for his help on many issues that we have brought to his attention. Will he further outline what steps have been taken to mitigate the scale of redundancies in manufacturing, with special reference to Bombardier and the aerospace industry? Will he agree to meet the working group to discuss this viable industry made up of many local businesses and suppliers, such as Bombardier in my own constituency of Strangford, to save thousands of jobs in the UK in the long term?

Exiting the European Union: Financial Services and Markets

Jim Shannon Excerpts

Tuesday 16th June 2020 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

Before we start, may I say that, on the fourth anniversary of the death of Jo Cox, I associate my party with what has been said and convey to all her family and friends our sincerest thoughts at this present time. She certainly was a wonderful and marvellous voice in this House. Everyone can honestly say from the bottom of their heart that they miss her contributions. Even four years later, that soreness and that sense of missing are still there.

May I say that it is good to see the Minister in his place? There would not be a banking debate where he and I were not involved in some way. I am pleased to see the new shadow Minister, the right hon. Member for Wolverhampton South East (Mr McFadden), in his place, and I wish him all the best in the future as well.

I thank the Minister for bringing this issue forward. Although this measure merely ensures that the protection established under current legislation continues, it gives me the opportunity to highlight the work that must be done for consumers in the financial industry—the Minister will know of that. We are pleased with some of the progress that has been made, but we look for more. He will have listened to me numerous times on the failings of banks, and sometimes on the need for the auditing sector and the financial sector as a whole to do the right thing for the little man. From Lloyds to HBOS, with many in between, it has long been my aim in this House to see the introduction of effective mechanisms to protect those who are not on the level playing field.

The issue of over-the-counter derivates is another area that needs special consideration, and I hope the Minister will respond on it, as we need enhanced protection. An OTC derivative is a financial contract arranged between two counterparties with minimal intermediation or indeed regulation. OTC derivatives do not have standardised terms and they are not listed on asset exchange, so an inherent aspect of them is the lack of formal regulation. Although the regulation offers lip service to that, as with so many other banking aspects it is my belief that more is needed, and many right hon. and hon. Members agree with that view. Hon, Members already know that some derivative products in the past were the basis of a number of problems during the financial crisis in 2008-09, and we now find ourselves in another crisis, perhaps something equal to that time. As the Minister knows, I have recently written to him about the 200 to 300 legacy cases for the Business Banking Resolution Service. I would like him to respond on that or to indicate when I can expect a response on the way forward. If that is possible, I would appreciate it.

This debate is about our position post-Brexit, and therefore Westminster will have control. It is our responsibility, as elected representatives, and the responsibility of the Government and legislators, to ensure that the FCA and other regulatory bodies have the appropriate regulatory powers in the future for consumer protection. I look forward to the Minister’s reply on the BBRS. The legislation is great to continue, but I believe we need more. It is not enough, but it is a giant step in the right direction.

Future Relationship with the EU

Jim Shannon Excerpts

Tuesday 9th June 2020 Commons Chamber

[Penny Mordaunt]

My right hon. Friend makes a very good point, which I agree with wholeheartedly. He is also right to put the focus on rest-of-world trade. Clearly, many decisions that will be taken in the negotiations and the workstreams going into implementing the withdrawal agreement are linked to our ambitions with rest-of-world trade. We must always remember that while the EU side of things is clearly a priority for many in this House, we ought also to be talking about the opportunities that exist with other nations around the world.

[Jim Shannon (Strangford) (DUP)]

I congratulate the Minister on her stance and her determination to deliver Brexit. Will she outline whether there have been further discussions regarding our agrifood and fishing sectors in the United Kingdom, and in Northern Ireland in particular, with special reference to the protection needed to secure our dairy, beef, pork, poultry and fish markets? What have the latest discussions brought about to ensure that that happens?

[Penny Mordaunt]

The last round of negotiations touched on all the workstreams. There was in-depth discussion across all areas, and it was very constructive on both parts, but as I outlined in my opening statement, there are some very tough areas. One of them is fishing and we are asking for our rights, as enshrined in international law, to be upheld. We are not wavering from that point, and the EU needs to recognise that.

Social Security

Jim Shannon Excerpts

Tuesday 5th May 2020 Commons Chamber

[Jim Shannon (Strangford) (DUP) [V]]

I very much welcome the Minister’s announcement today and the Government’s commitment to it. I thank you, Madam Deputy Speaker, for giving me the opportunity to speak.

Initially, the employment allowance was set at £2,000 but was increased to £3,000 from April 2016. From April 2020, the allowance may only be claimed by employers with employers’ national insurance contributions of below £100,000 in the previous tax year, a change announced in 2018. HMRC estimates that the annual cost of the allowance is around £2.2 billion.

I absolutely understand the reason for the inclusion of this measure in the Conservative party manifesto and the Minister’s announcement today, but I am a wee bit concerned that we need to be doing more to help the small and medium-sized businesses that continue to employ large numbers of people across my constituency and the whole United Kingdom of Great Britain and Northern Ireland. In my constituency and across Northern Ireland, we probably have a higher per capita percentage of small and medium-sized businesses than the rest of the United Kingdom. I welcome this measure, but we need to ensure that these small and medium-sized businesses are able to return to the position they were in, so that they can give the opportunity of employment and wages and give the economy a bit of a kick-start.

I want to say an incredibly large thank you to Frances and her staff at my local social security office, who have helped many people and given advice during this crisis. It is important that their hands are not tied by a system that understands the rules but has no discretion to understand individual circumstances.

I welcome the help that will be coming for the many charities that we and many others contribute to. I think of the National Society for the Prevention of Cruelty to Children, Cancer Care, Marie Curie, St John Ambulance and the Cancer Fund for Children here in Northern Ireland. All those charities have no or little fund raising at the moment. The moneys coming into them are direct donations. There may be other moneys coming in, but there is no fund raising taking place. The help that the Government have offered charities is very welcome, but it will never bridge the gap for the incredibly large amounts of money that they are losing.

I was very happy with the Chancellor’s decision to allow workers to be furloughed, although there will be no payment until June for the self-employed. I think also of self-employed directors—I asked the Secretary of State for Work and Pensions a question about this yesterday, and I raise it again now—who put their profits back into the business, so do not have much in the way of savings. Unfortunately, they do not get the real benefits here that they could.

I put on record my thanks to the Government and to Ministers for all that they have done. They have reached out to many people. As elected representatives, we are made aware with each passing day of others who perhaps do not tick the box—who do not fit into a certain category—and I am thinking of them. We therefore bring those people to the attention of Ministers whenever the opportunity arises.

Many of us will be in receipt of a paper from Ian Geary of the Salvation Army referring to the report that has already been mentioned, entitled “Understanding Benefits and Mental Health”. We cannot let this go by without reflecting—in a small way for this debate but in a big way for the individuals themselves—on the barriers that vulnerable groups experience, and on some of the multiple mental health challenges that they are facing. That paper emphasised that the aforementioned findings were collated before the current crisis, but it has highlighted the lack of resilience experienced by many people who need help at this moment.

Again, I welcome the provisions that we have today, which benefit the many who fall within the criteria, but there are others who perhaps fall just outside the criteria or outside the box-ticking exercise that Departments sometimes do. We need to identify and support vulnerable claimants. We need to help those with mental health issues. We need to support businesses and those self-employed people who cannot create the opportunity—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I thank the hon. Gentleman for his speech but we now have to move on to the Minister.

The Economy

Jim Shannon Excerpts

Monday 27th April 2020 Commons Chamber

[Mr Speaker]

Who would have thought? I call a virtual Jim Shannon.

[Jim Shannon (Strangford) (DUP) [V]]

Thank you very much, Mr Speaker. I am here virtually, but at a distance.

I thank the Chancellor for all he has done, is doing and will do in the future. Some in the hospitality sector, in particular private bus companies, do not have premises and fall just outside the present small business support scheme. Will the Chancellor agree to extend the scheme? Similarly, the coronavirus bank loan scheme has had 36,000 applications, but only 16,000 have been approved. Will the Chancellor ramp up underwriting cover from 80% to 100%, as other countries have been doing?

[Rishi Sunak]

What I would say to the hon. Member is that the new bounce-back loan scheme announced today does come with a 100% guarantee for loans of 25% of turnover up to £50,000. Given the structure of the Northern Irish economy that he knows so well, which is full of microbusinesses, I believe that that in particular will be a very significant intervention that will help the Northern Ireland economy.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 24th March 2020 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I thank the Minister and the Department for all they are doing for businesses at this time; it is much appreciated. Will the Minister further outline whether he has managed to close the loophole that enables massive companies such as Amazon to operate out of the UK yet pay little tax here? If not, what has been done to ensure that no one is exempt from paying appropriate tax in the UK if they trade in the UK?

[Jesse Norman]

I thank the hon. Gentleman for that question. He will be aware that, in the Budget, we left in place our digital services tax, which is specifically designed to look at online marketplaces and other areas online that have user-generated content that needs to be appropriately taxed. We continue to pursue that tax.

--- Later in debate ---

[Rishi Sunak]

I am happy to look at specific suggestions. I pay tribute not only to my hon. Friend’s council but to all councils for the sterling work they are doing in delivering our grant schemes to many of their small local businesses. We are in dialogue already with the Ministry of Housing, Communities and Local Government, to ensure that councils’ cash-flow needs are adequately met. There are things we are doing actively in terms of the timing of the various grant payments we make, to ease some of the near-term cash-flow pressures.

[Jim Shannon (Strangford) (DUP)]

Can the Chancellor clarify whether the emergency cash grant scheme is intended to help per shop for businesses with more than one premise in different towns, or is it just for the business as a whole?

[Rishi Sunak]

The detailed eligibility criteria are online and will be provided by local authorities. The grants of £10,000 are done on a per premise basis for businesses that are in receipt of small business rate relief and rural rate relief. There are larger grants for those in the retail, leisure and hospitality sector of up to £25,000. The Business Secretary has written already to local authorities, which are, as we speak, writing to businesses that are eligible for those grants to seek their bank details and start making cash payments as soon as is practically possible.