Mortgage and Rental Costs

Jim Shannon Excerpts

Tuesday 27th June 2023 Commons Chamber

[Rachel Reeves]

I very much thank my hon. Friend for that intervention. She is absolutely right: the people being hit are those who are having to re-mortgage; those who are on floating rates and are just seeing their payments automatically go up; first-time buyers who want to be on the housing ladder but, because of this bombshell, are not able to get on it; and renters, who are paying the higher mortgage payments of their landlords. She is right to say that we need Labour’s renters charter, in order to do a number of things, including ending no-fault evictions.

Families facing the increasing squeeze from their rising mortgages are now having to confront that stress and anxiety day in, day out. For many, this will mean that their family holidays are cancelled this year; they will watch hard-earned savings drain away; and they will decide that they can no longer afford to spend money on days out with friends and family. For others, it could be much worse, with them not moving up the housing ladder, but slipping down it, through no fault of their own. The scale of the impact of all of this is devastating.

[Jim Shannon (Strangford) (DUP)]

I commend the right hon. Lady and the Labour party for bringing this debate forward. Every one of us, including my constituents, is dealing with the same problems. Some people contacted me last week to say that their mortgage rates are going up from £400 to £800, while others have said that theirs are going up from £600 to £1,200. It is just impossible to find that amount of money. Does she think that perhaps the Government—I look to them when I say this—should be looking at mortgage tax relief? That is one direct method of helping people to retain their houses and their dream of home ownership, and to survive this crisis.

[Rachel Reeves]

The hon. Gentleman speaks powerfully and I recognise those stories of people seeing their mortgages double because of what is happening. I will come on to the solutions proposed by the Labour party, but it is important that money is not injected into the economy at this time. If that happened, interest rates would go up even more, crippling the hopes and opportunities of exactly those we want to help. I will come on to the solutions that we propose shortly.

Over the next few years, 7.5 million families will be hit by the Tory mortgage bombshell, month after month after month. That is why it is essential that greater mortgage flexibility and support from lenders must be mandatory, not voluntary as the Government have put forward.

Consumer champion Martin Lewis warned the Government about mortgage market issues last year, and he now says “the timebomb has exploded”, yet under the Government’s scheme, 1 million households are missing out. What is the Government’s response to them? Tough? It is up to the discretion and the goodwill of their lender? That is not good enough.

Although it is welcome, as I said, that many lenders are stepping up and doing the right thing, the scheme cannot be voluntary. That is why, when Labour set out our mortgage package last week, we made sure that that would be compulsory, across the board, and required of lenders. That is right: required of lenders. Without that clarity and confidence, families are rightly anxious about what comes next and how it will affect them.

Mortgage Charter

Jim Shannon Excerpts

Monday 26th June 2023 Commons Chamber

[Jeremy Hunt]

The hon. Gentleman is right to draw attention to that issue, and I simply say that the biggest measure in the spring Budget was the childcare measure that will mean families with young children can get up to £6,500 of help with their childcare costs to help them go back to work. That will help those families and help to tackle inflation.

[Jim Shannon (Strangford) (DUP)]

I thank the Chancellor for his statement and for the clear help he is trying to provide. I very much welcome the move to ensure that, in the extreme situation of a repossession, there will be a minimum of 12 months from the first missed payment. Can he confirm whether it will be 12 months from any first missed payment or 12 months from a specific time? Some people may have missed a payment, say, five months ago and missed none since. If they lose their job or become ill, will this extension and compassion be shown if more than one payment is missed within a year? How will the Chancellor ensure that his goal of giving people time in exceptional circumstances is not circumvented by the banks and others?

[Jeremy Hunt]

The hon. Gentleman is right to raise this issue. I reassure him that banks are required by the FCA to offer a tailored solution to people who get into arrears, specific to their circumstances, to make sure that precisely the kind of thing he worries about does not happen.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 20th June 2023 Commons Chamber

The Chancellor of the Exchequer was asked—

[Jim Shannon (Strangford) (DUP)]

1. Whether he has held discussions with banks on the costs of implementation of Financial Ombudsman Service decisions.

[The Economic Secretary to the Treasury (Andrew Griffith)]

The Financial Ombudsman Service offers a proportionate and informal resolution of disputes that is cost-free for consumers. Where it upholds a complaint against a firm, it can award redress for that concern to that consumer. I work very closely with my officials and with the Financial Ombudsman Service to make sure consumers have the justice they require.

[Jim Shannon]

I thank the Minister for that that response. This has been an ongoing issue in the House for some time, and I spoke to some of the Minister’s colleagues beforehand. The Chancellor and the Minister will know that the parliamentary ombudsman found that 1 million Equitable Life savers lost money as a direct result of Government decisions. Why, then, are the Government holding themselves to a different standard and ignoring the wishes of the parliamentary ombudsman, having paid victims of the Equitable Life scandal only 22% of the money they lost from their pension funds? I say that with great respect, but I do think we need an answer.

[Andrew Griffith]

I respect the hon. Member for raising this issue. It has however, been raised many times before in this House, and answered from this Dispatch Box as well.

--- Later in debate ---

[Mr Speaker]

I call Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

I do not have a question.

[Mr Speaker]

Right, let us move on.

Bank Closures: Stoke-on-Trent North

Jim Shannon Excerpts

Wednesday 14th June 2023 Westminster Hall

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

I beg to move,

That this House has considered bank closures in Stoke-on-Trent North constituency.

It is a pleasure to serve under your chairmanship, Ms Nokes. I am grateful to Mr Speaker for permitting the debate, and I thank right hon. and hon. Friends, including the Minister, for attending. There is one Member who would like to be here—my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell), whose constituency is also suffering a closure—and he is hoping to join us later, and I place on the record my thanks for my hon. Friend’s support.

Banks are at the very heart of local communities, and they provide the most vulnerable people in society with vital services and support with their money. Banks have been at the centre of high streets up and down this great country for generations, drawing people to the local area, which has the added benefit of increasing footfall for local businesses. In Stoke-on-Trent North, Kidsgrove and Talke, we have a Lloyds in Tunstall and a Barclays in Kidsgrove, but constituents tell me that they feel there is already a significant lack of access to in-person banking services, which impacts the most vulnerable in our communities—the elderly and the disabled—disproportionately.

According to Which?, 86% of banks have closed in Stoke-on-Trent North, Kidsgrove and Talke since 2015, which in my opinion justifies my constituents’ concerns. At the national level too, there has been a significant number of closures: between June 2015 and January 2023, 5,391 bank branches closed in the United Kingdom, which is a shocking 54 per month. This year, regrettably, the pace of closure has not relented, with 114 HSBC, 95 Barclays, 52 NatWest and 23 Lloyds branches closing their doors, leaving gaping holes in local high streets and local communities.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing this matter forward. My constituency has had 11 banks close, which is similar to the experience in Stoke. When it comes to closing banks and the effect that has, does he agree that there never seems to be any consideration given to elderly people who depend on the old system of using cash and cheque books, face-to-face interviews and talking with bank staff?

[Jonathan Gullis]

The hon. Gentleman is absolutely right not only about the elderly, but about people who do not have online access, or have no desire to have it, or who do not understand the modern technology about which we have the benefit of learning in this day and age. Such people have a natural mistrust of online banking because they are fearful of scammers and the online hoaxes that have sadly become all too apparent in our criminal justice system. If the Barclays closure goes ahead, Stoke-on-Trent North, Kidsgrove and Talke will be left with just one high street bank, which is simply not good enough.

I am pleased to have secured the debate given the terrible news that Barclays has announced its intention to close the Kidsgrove branch on 11 August. That decision will leave that great town without a single bank and leave the community isolated from vital in-person banking services, which provide local people with reassurance and confidence with respect to their money, particularly during a cost of living crisis.

It is right to point out that digitalisation has transformed the way that families and businesses deposit, withdraw and save their money, and in Stoke-on-Trent we have been rolling out brand-new 5G broadband, which is increasing our connectivity, and which will undoubtedly make online banking more effective. The digital revolution means that banks are innovating, and Barclays points out in its argument for closing the branch that

“the way people bank today is unrecognisable from 50 years ago”.

However, it is of paramount importance that we do not let digitalisation exclude people in our community from banking services.

The services that bank branches provide are most important for vulnerable members of society, and closures impact them the most. One of my constituents, Dawn from Kidsgrove, told me that her father, who is an elderly customer, would find it “impossible” to travel to Crewe or to Hanley to visit a Barclays branch, that his deafness means he cannot use telephone banking, and that he is not confident enough to use internet banking.

As the Chief Secretary to the Treasury pointed out in the 2020 access to cash call for evidence:

“exclusion from banking services can have a detrimental impact on people’s lives. Whilst card payments and other payments services are becoming increasingly popular, the evidence shows that a significant proportion of the UK population continues to rely on cash in their day to day lives.”

The Financial Conduct Authority states that banks are expected to carefully consider the impact of planned branch closures on the everyday banking and cash access needs of their customers, and to take particular care for their most vulnerable customers.

I have launched a petition to save Barclays branch from closure, and it has nearly 450 signatures already. That shows the strength of local feeling that Barclays is not upholding its responsibility to look after its most vulnerable customers.

Cryptocurrency Regulation

Jim Shannon Excerpts

Tuesday 13th June 2023 Westminster Hall

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

I beg to move,

That this House has considered the regulation of cryptocurrency.

It is a pleasure to serve under your chairmanship for the first time, Mrs Harris, and to see you in your rightful place.

As chair of the crypto and digital assets all-party parliamentary group, I am delighted to be able to talk about the potential of the UK cryptocurrency and digital asset sector, and the need for clear regulation to protect consumers, which should be at the core of everything we do, and to support investment.

Just over a year ago, in April 2022, the UK Government set out their landmark vision to make the United Kingdom the global hub for cryptocurrency investment, committing to creating the right conditions for cryptocurrency and digital asset businesses to set up and scale up in the UK. Shortly afterwards, in August 2022, the APPG launched an inquiry to better understand the opportunities that a regulated industry could bring to the UK, as well as the challenges and potential barriers for Government in making their vision for the UK a reality.

Just last week, we published our report “Realising Government’s vision for the UK to become a global hub for cryptocurrency & fintech innovation”. Our inquiry looked at a number of key areas, including the potential for the UK to be a global hub for investment; the UK’s approach to regulation and the role of UK regulators in consumer protection; the potential offered by central bank digital currencies; and the risks of economic crime. We heard views from operators, regulators, industry experts and the general public—the Advertising Standards Authority, Innovate Finance, the City of London Corporation, the Payment Systems Regulator, the Royal United Services Institute, the Law Commission and many others—on the need for regulation of this ever-growing sector. I put on the record my thanks for their input and help in formulating our recommendations.

The APPG’s report is the first on cryptocurrency and the digital assets industry compiled jointly by MPs and Members of the House of Lords, and I thank colleagues in both Houses for their invaluable contributions. We set out more than 50 recommendations, which we hope will establish a foundation for further discussion. The Minister will be pleased to hear that I will not go through them all today, but I will focus on some of the report’s key findings.

It is clear from our work so far that the growth of cryptocurrency and digital assets presents a number of potential opportunities and that the UK is well placed to realise them, but that will require cross-Government strategic planning.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for securing the debate—we have become good friends in the House—and I thank her for all she does on this topic. Reports in 2019 indicated that Colu, a tech firm based in Israel, had developed a potential new cryptocurrency for Belfast City Council. There has been much discussion in this place of how cryptocurrency will be regulated across the UK. Does she agree that for the United Kingdom to become a leading force in crypto, regulation must be UK-wide, led centrally from Westminster, and that UK-wide discussion is the only way to achieve safe regulation?

[Dr Cameron]

I thank the hon. Member for his contribution. Yes, much of this will be led by the Treasury, and I imagine that regulation will be streamlined right across the United Kingdom. I am pleased to hear about developments in Northern Ireland; there have been many in Scotland, too. I spoke to Scotcoin not that long ago. This area has enthused and motivated people right across the United Kingdom, and it is important that we collaborate in order to realise its potential.

Mortgage Market

Jim Shannon Excerpts

Tuesday 13th June 2023 Commons Chamber

[Madam Deputy Speaker]

No, you are not. That question is finished. There is a danger that the House might not be able to hear the question from the hon. Member for Strangford (Jim Shannon).

[Jim Shannon (Strangford) (DUP)]

There is no danger of that when you are in the Chair, Madam Deputy Speaker.

I thank the Minister for his answers to some very difficult questions. It has been said that 1.5 million households, including some of my Strangford constituents, are set to come off fixed mortgage deals this year and face a sharp rise in their monthly repayments—up to 1.56 percentage points from Tuesday. Has the Minister made an assessment of the impact on those who are considering buying their first house in the next year or so, and will he assure the House that discussions are taking place with local banks on what we can do to support people through the process of buying their first homes amid shocking price increases?

[Andrew Griffith]

Let me be clear: the Government understand—I understand—the anxiety of those who have a mortgage, those who have invested in their home and those who wish to do so. That is why we will do everything we can—be it providing financial support to the tune of £94 billion, or making good decisions about our stewardship of the economy and not coming up with unfunded spending commitments—to ensure that we get back, as quickly as possible, to a world of falling interest rates and falling inflation, and support those who wish to buy a home above their head.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 9th May 2023 Commons Chamber

[John Glen]

My hon. Friend is tireless in his advocacy for his constituents. The areas of England that are eligible to host an investment zone were identified through a rigorous analytical assessment that reviewed every place in England and shortlisted based on their strengths in innovation, productivity, potential and levelling up need, as well as the strength of local leadership, knowledge assets and sectoral strengths.

The borderlands area is already benefiting from the £452 million borderlands growth deal, which was signed just two years ago and aims to create 5,500 jobs. My hon. Friend is also familiar with the recent £134 million investment signed off through the housing infrastructure fund, leading to 10,325 homes in St Cuthbert’s garden village.

[Jim Shannon (Strangford) (DUP)]

The Minister mentioned the four investment zones, including one for Northern Ireland, in his opening answer. Of course I make a plea for my constituency, as everyone will. What discussions has he had with the Department of Finance back home about a potential investment zone in Strangford, to ensure that people in my constituency can have the same opportunities as people across the United Kingdom?

[John Glen]

I think the whole House will agree that the hon. Gentleman must be the most effective advocate for his constituents. We will see what happens. There will be a rigorous process, including wide consultation, and we expect to have an outcome that benefits his constituents and people across Northern Ireland.

Finance (No. 2) Bill

Jim Shannon Excerpts

Committee of the whole House
Tuesday 18th April 2023 Commons Chamber

[Victoria Atkins]

I acknowledge my right hon. Friend’s experience, not only at the Dispatch Box but, importantly, in the world of accountancy and business. I reassure him that the Treasury keeps all taxes under review. He is right to draw attention to clause 6, which maintains the small profits rate because, precisely as he says, we want to encourage small businesses that are in the first flourishes of profit and help them to build.

There are two measures that I hope will reassure my right hon. Friend. First, the small profits rate means that 70% of businesses will see no increase at all in their corporation tax charges. Because of the threshold that he describes, a further 20% will fall into that spectrum, so only 10% of businesses will face the full 25% rate. If they invest in their businesses and in plant and productivity, as we very much want and encourage them to, they will—depending on their returns—be eligible either for the full expensing capital allowance that the Chancellor announced alongside this measure at the spring Budget or for the annual investment allowance. This Budget was very much about encouraging growth and encouraging the small businesses on which my right hon. Friend the Member for North West Hampshire (Kit Malthouse) so rightly focuses, but we are doing so as part of a responsible fiscal approach and making sure that those with the broadest shoulders bear the greatest burden of tax.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for outlining the provisions on corporation tax. Obviously corporation tax will be the same everywhere, but in the light of the peculiar circumstances in Northern Ireland—the region is much more under pressure when it comes to jobs—can she reassure me and my constituents back home that small businesses in Northern Ireland will feel the benefits of what she is putting forward?

Fuel Costs: Rural Households and Communities

Jim Shannon Excerpts

Wednesday 29th March 2023 Westminster Hall

[Angela Crawley]

The hon. Lady is absolutely right. Although I welcome the fact that the Government recognised that there is a need, the response has been too slow. In reality, people, especially pensioners, had no more money on which to draw to pay up front. That has had a knock-on effect on many households, in particular many of mine in rural Clydesdale.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for bringing this subject forward. I agree with her, but it is not just about fuel; it is also about rural isolation. Does she agree that rural social isolation in the farming community is compounded by the rise in fuel costs? Going to young farmers’ club events, or something similar, does not boil down to finding time; it is about whether people have the resources to go. We need not only look at rural households and their fuel costs, but offer greater support to the farming community than it currently receives.

[Angela Crawley]

I thank the hon. Member, as always, for his intervention. He makes an important point. I am truly blessed to be the representative for Lanark and Hamilton East, which is home to a very wide and diverse community, including Clydesdale, the Clyde valley, which has a large population of farms. That community has been adversely affected by these costs.

With all due respect to the Government, there is little that can be done in retrospect to ease the impact this issue has had on livelihoods. Issuing alternative fuel payments months after households have already put fuel orders on credit cards or taken money out of savings to cover the costs does not make sense. It is all well and good for households that have wriggle room or back-up savings, but many do not, as we all know. Rural households are often occupied by pensioners reliant on their pension as their only source of income. They may not have the means to stretch their budget any further.

There are still households that are eligible for the alternative fuel payment but have not yet received it. The picture is even bleaker for those who are not connected to the gas grid and rely on electricity to heat their homes. They are not eligible for the alternative fuel payments, despite the latest fuel poverty statistics indicating that households using electricity as a main source of fuel for heating have the highest likelihood of experiencing fuel poverty.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 21st March 2023 Commons Chamber

[Jeremy Hunt]

I thank my hon. Friend for saying that. We think the average driver has saved about £200 in total since the 5p cut was introduced, but we are also introducing draught relief for beer drinkers in pubs and 30 hours of free childcare for young parents who are struggling with childcare costs. There are a lot of cost of living measures in the Budget.

[Jim Shannon (Strangford) (DUP)]

I thank the Chancellor for all he does, and for his hard work. It is more than just beer drinkers, of course. Carers who also work part time are precluded from receiving carer’s allowance if they earn just over the threshold. Will he consider uplifting the carer’s allowance earnings threshold in line with inflation?

[Jeremy Hunt]

I thank the hon. Gentleman for mentioning carers, who do an amazing job. It is fair to say that our NHS and care systems would fall over without the incredible job carers do. We will always keep under review what we can do to help these very important people.