Financial Assistance to Ukraine Bill

Jim Shannon Excerpts

2nd reading
Wednesday 20th November 2024 Commons Chamber

[Jacob Collier (Burton and Uttoxeter) (Lab)]

May I start by congratulating my hon. Friend the Member for Amber Valley (Linsey Farnsworth) on her excellent maiden speech? I have heard that former Crown prosecutors can go far in this place, and I am sure that she will.

I rise to speak in strong support of the Bill, and I am grateful to colleagues for showing their support for it, because it is essential to the UK’s continued steadfast support for Ukraine as it defends itself against Russia’s illegal and brutal invasion. Through the Bill, the Labour Government will ensure that funds derived from sanctioned Russian sovereign assets—assets that were once used to fuel Putin’s war machine—will help Ukraine in its fight for freedom. That is not only morally right but in Britian’s national interest, as so many hon. Members have said. Supporting Ukraine means supporting the frontline of our democracy and our shared values of liberty and self-determination.

Most Members of the House recognise that it is critical to stand with Ukraine, but I am deeply disappointed that some question our unwavering support. Some have suggested that concessions should be made on both sides in this war, as if there is some kind of equivalence between Ukraine’s fight for its freedom and Russia’s criminal and illegal invasion. Let us be absolutely clear that calls for concessions send the wrong message to Ukraine, the world and future generations. These calls undermine Ukraine’s sovereignty, reward Putin’s recklessness and disregard the horrific suffering that has been inflicted on the Ukrainian people.

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman is right to mention what the future holds. We all want peace, Ukrainians above all, but that peace must be based on justice, and we in this House must commit to that. The message from this House today should not be about the Ukrainians under pressure from Russian troops, but about our commitment in this House to them. We can influence the United States President to ensure that things look more positive for Ukraine. Does the hon. Member agree that that has to be the message that we send from this House?

[Jacob Collier]

I now have a parliamentary medal: I have taken an intervention from the hon. Member for Strangford (Jim Shannon). I am grateful, and I agree with what he said.

Some of the views that we hear are a dangerous form of appeasement that only emboldens the aggressor and undermines the cause of peace, freedom and democracy. That weakens Ukraine, our position and the values that we in this House should defend. We must reject such defeatism and appeasement, and we must stand firm in the face of tyranny, for Ukraine and for the values that we hold dear in this democracy. To do anything less is to surrender our ideals, and that is not an option.

The Bill demonstrates that this Government are committed to doing the opposite. It builds on our already substantial support, including £3 billion in annual military aid and £2.3 billion in additional funding, drawn from immobilised Russian assets. It also enables the UK’s £2.26 billion contribution to the G7’s extraordinary loan scheme. This funding will directly support Ukraine’s defence by providing vital air defence systems, artillery and armoured vehicles. That support is vital, not only for Ukraine but for the security of the UK and the wider world. As the Chief Secretary to the Treasury rightly highlighted, a safe and secure Ukraine means a safe and secure United Kingdom.

It is testament to our country’s leadership on the global stage, and a point of pride, that the issue has had cross-party support in this Parliament. The Prime Minister’s commitment to continued military aid, and the UK’s role in driving the largest sanctions package ever imposed on a major economy, reflect our iron-clad determination to hold Russia to account. Putin is now 1,000 days into a war that he thought would last just a few. His miscalculation has drained Russia’s economy; 40% of its annual budget is now consumed by the war effort. His forces have suffered their highest rate of casualties since the conflict began. This is no time for us to falter.

I pay tribute to the bravery of the Ukrainian armed forces, and the crucial work of the UK armed forces in training their Ukrainian counterparts. Let me say how proud I am of our troops’ vital contributions to Ukraine’s defence efforts—a pride that was reinforced by my visit to the 29th Regiment Royal Logistic Corps and the Commando Training Centre Royal Marines. Seeing their dedication at first hand was a reminder of the professionalism and commitment of our armed forces, who are making a tangible difference in Ukraine’s fight for freedom. The unity of this House, our Government and our allies is essential to ensure that Ukraine has the resources that it needs to prevail. Let us send a clear message today: Britain will stand with Ukraine for as long as it takes.

Financial Services: Mansion House Speech

Jim Shannon Excerpts

Monday 18th November 2024 Commons Chamber

[Tulip Siddiq]

My hon. Friend will know that I can never resist an ice cream, so I probably will visit after all. Places such as JP Morgan, which employs 4,000 people in the financial services industry, are vital to us. One of the things that the Chancellor’s speech built on was the significant steps that the Government are already taking to enhance the competitiveness of our financial services sector. We want to look at the biggest changes to the UK’s listings regime in more than three decades and—my hon. Friend will be familiar with this—deliver the final stages of the post-crisis capital reforms to banks. With our financial services growth and competitiveness strategy, which I hope my hon. Friend will write to us on, we want to give the industry certainty and the confidence to invest. That is the main thing that the financial services sector wants right now, and people in Bournemouth will probably agree with that. I look forward to that ice cream.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for her statement. We must welcome the news that London edges closer to New York as a financial hub. However, the Minister is aware that growth happens only if we attract investment. I believe that the decision to pool pension funds into larger investment vehicles is a bold one, yet the Chancellor must ensure that guarantees are in place, so that the mega-pool of pensions does not go down the drain, and that guardrails are in place to safeguard the nation’s pension pots.

[Tulip Siddiq]

I reassure the hon. Gentleman that boosting return for savers is at the very heart of this agenda, which is why we are pursuing this pensions review. We want these reforms to increase security and boost people’s pension pots, and we want to unlock about £80 billion of productive investment. The Government’s reforms are already in the pension schemes Bill, and they could boost a typical defined contribution saver’s lifetime pension pot by £11,000. I do not want the hon. Gentleman to worry, because we have our eye on how to protect pensioners and savers.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 29th October 2024 Commons Chamber

[Rachel Reeves]

All of the above. That is why my hon. Friend is in his place and Conservative Members are on the Opposition Benches.

[Jim Shannon (Strangford) (DUP)]

If the Chancellor wants to increase investor confidence, the thing to do is help small and medium-sized enterprises. Tomorrow she will have the opportunity to do that. What will be done to help them? In Northern Ireland, 85% of businesses employ 10 or fewer employees. If she helps the SMEs in Northern Ireland, that will increase employment.

[Rachel Reeves]

I know that the hon. Gentleman is a proud supporter of businesses big and small in his constituency and across Northern Ireland. I will set out more detail in tomorrow’s Budget, including on business rates, but I recognise how important it is for us to support small businesses, so that they can grow and create jobs right across the United Kingdom.

Fiscal Rules

Jim Shannon Excerpts

Monday 28th October 2024 Commons Chamber

[Darren Jones]

I thank my hon. Friend, and I thank his constituent for putting her trust in this Labour Government. As the Prime Minister said today, this Government will “run towards” the problems, as opposed to running away from them, as the Conservative party did. That will mean difficult decisions at the Budget on Wednesday to deal with the mess that we inherited, to reset public finances and to be able to start to deliver our manifesto. But this Government will take those decisions and we will announce the detail on Wednesday.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his statement. I want to ask what the legacy of this will be. Will he further outline how the change to the fiscal rules to allow for more efficient borrowing will not simply pass more debt on to, for example, my six lovely grandchildren and everybody else’s grandchildren, who already face a scaled-back welfare system and increased costs of living before they even earn their first pay cheque? How will the Minister’s so-called guardrails not simply be barriers to future generations owning their own homes and making ends meet? I am thinking of the ones who come after.

[Darren Jones]

I thank the hon. Member for his question. He and his constituents will know, as much as mine do, that the problem for this country before the election was that the last Government had to borrow each month to pay for bills that they did not have the money to pay for, and that they made a whole list of promises across the country that they knew they could not pay for. That is why we have the £22 billion black hole, and why our first fiscal rule is that day-to-day spending will be paid for from tax receipts by the Exchequer. We will put the public budget back into surplus so that we are not in a doom loop of borrowing and borrowing just to keep ahead of ourselves each month. Where the Government do borrow, we will do so for productive investment to modernise our public services and to get growth back into our economy.

Business Property Relief and Agricultural Property Relief

Jim Shannon Excerpts

Thursday 17th October 2024 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure, as always, Dr Huq, to serve under your chairship. It has probably been more than once this week but, none the less, it is lovely to see you in your place. I thank the hon. Member for Gordon and Buchan (Harriet Cross) for setting the scene so well and giving us all an opportunity to make a contribution on an important issue. It is an honour to speak on a subject that is not just a matter of fiscal policy, but is of vital importance to the very backbone of the United Kingdom. I declare an interest as a farmer, landowner and member of the Ulster Farmers Union for some 40 years. I joined the Ulster Farmers Union not because it was in Northern Ireland, but because the insurance premiums were very cheap. They are maybe not quite as cheap now, but then no insurance is as cheap now as it is used to be, and that is a fact.

I can attest to the importance of agricultural property relief in ensuring the sustainability and longevity of farming enterprises across our great nation. In my constituency of Strangford, farming is not just an industry, but much more—it is a way of life. It is about generations of families working the land, providing food, maintaining the landscape and contributing to the rural economy. More than that, it is about stewardship, which the hon. Member for Gordon and Buchan referred to in her introduction. It is really important that we focus on that. Farmers are custodians of the countryside, caring for the environment while ensuring food production to feed the nation. That means everyone; not just the farmers, but everyone who lives in this great nation. Agricultural property relief plays a critical role in maintaining that balance, allowing farming families to pass on their land and business without crippling tax burdens.

Agricultural property relief is one of the key supports for farming families across the United Kingdom, and in Strangford it is essential. In Northern Ireland, agriculture is responsible for some £501 million in income, as of 2021—a substantial 8.3% increase from 2020. It is no exaggeration to say that agriculture is at the heart of our economy, and everyone has said it. Agriculture is critical to everyone. Not a person who has spoken so far has not said that about our rural community.

My constituency of Strangford is home to a vibrant agrifood sector that employs thousands of people through major employers such as Willowbrook Foods, Lakeland Dairies and Mash Direct. Those companies are household names. They are family businesses that started as farms and then diversified—something that the right hon. Member for Orkney and Shetland (Mr Carmichael) referred to. They have ensured the sustainability of our rural community. Without APR, those family-run enterprises could be forced to sell land and assets just to meet inheritance tax liabilities, potentially dismantling businesses that have been built up over generations. This issue is critical to the future of my constituency’s farming community, and to those businesses.

Agriculture is not just a business; it is the fabric of rural life. We often talk about food security, environmental stewardship and rural economies, and yet without the right fiscal support, those pillars of our country are put at risk. That is why this debate is so important. APR helps farmers to plan for the future, ensuring that the next generation can take over the family farm without being forced into financial hardship. It allows them to focus on what they do best: producing high-quality food, maintaining biodiversity and contributing significantly to local economies.

We have a rich agricultural tradition. Our dairy farmers, sheep farmers, pig farmers and vegetable growers are among the best in the world and take immense pride in their work. Lakeland Dairies, which employs more than 250 people in my constituency, and Mash Direct, which employs more than 230, have been the cornerstones of our agrifood economy.

Let us not forget the Comber early, a potato with protected geographical indication status, which means it is recognised across Europe for its unique quality. It is grown right there in the fields of Strangford. Those enterprises are not just businesses; they are a way of life. It is about not just tradition, but innovation. Innovation is part of what farmers do. They are not just the boys who plough the fields and scatter the seed—that is almost like the hymn “We plough the fields and scatter”.

Let us take Mash Direct, for example. A family-run business that began in a kitchen 20 years ago now supplies some of the largest retailers in the United Kingdom, including Asda and Spar. The business is forward-thinking. It has installed solar panels and invested in sustainable practices, all while providing hearty, healthy food at affordable prices. Lakeland Dairies, meanwhile, exports its milk products across the world and contributes to the economy. These are family businesses that started off in a very small way and have grown and created jobs. They are success stories, and we must ensure that the tax system supports their continued growth and does not hamper them.

This is why I am calling on the Government to ensure that agricultural property relief remains intact and that it is not reduced or removed as part of any future tax policy. We must give farmers the confidence to invest in their businesses, to innovate and to continue producing high quality food for our nation. The very last thing we need is for farms to be sold off piecemeal because families cannot afford the tax burden. Let us be clear. APR is not a loophole for the wealthy; it is a lifeline for farming families who are working hard day in and day out to maintain their land and their livelihoods.

In Strangford, where agriculture is not just a part of our economy but a part of our identity—it is who we are—support is vital. As we look to the future of UK farming post Brexit, with new trade deals, changing subsidy regimes and heightened environmental targets, we must ensure that the fiscal framework surrounding agriculture is robust and supportive. APR is a crucial part of that framework, allowing farmers to pass on their businesses, invest in new technologies and ensure that rural communities remain vibrant and sustainable.

Farmers in Strangford and across the United Kingdom are already taking steps to reduce emissions, embrace low-emission technology and promote biodiversity. However, those efforts cannot come at the cost of financial viability. Many of the improvements needed to reduce emissions, such as upgrading farm infrastructure, require significant investment, as the hon. Member for Gordon and Buchan said. She set the scene very clearly. The money that is made must go back into the farms so that they can move forward.

APR helps to ensure that farmers have the financial security to make those investments. Without it, we risk failing not only our farming communities but our environmental goals. I say this to the Minister kindly—he knows that I do not criticise or give people a hard time, but I do make a point. The Secretary of State for the Environment has made it clear that Labour is committed to achieving environmental goals. The farmers whom I and others here represent are also committed to achieving those goals, but that can only happen if the money comes through for that purpose.

I want to mention the need for better protection of farmland from schemes such as solar farms and pylons, which can remove valuable agricultural land from production. While we must embrace renewable energy, we must also ensure that food production remains central to our land-use framework. There has to be a balance, as Members of both the previous and the current Government will understand. We need to strike the right balance between energy production and food security. Farmers should not be forced to choose between their livelihoods and environmental progress. Both things can, and must, go hand in hand.

I have spoken fairly quickly, and I think I have got more words in than anyone has ever done. Farming is at the heart of our nation, and agricultural property relief is at the heart of farming. Without APR, many of our farming families—those in Strangford and across this great nation—would face insurmountable challenges. The loss of that vital relief would be a blow not just to rural communities, but to our food security, economy and environment. Each of those is critical, so let us continue to back our farmers, protect our rural communities and safeguard our food security by maintaining agricultural property relief. I urge the Government to make that commitment and recognise that the future of farming in the United Kingdom of Great Britian and Northern Ireland depends on it.

VAT: Independent Schools

Jim Shannon Excerpts

Tuesday 8th October 2024 Commons Chamber

[Damian Hinds (East Hampshire) (Con)]

I beg to move,

That this House regrets that the Government has decided to impose VAT on independent school fees; believes that educational provision should not be taxed; regrets that the Government is rushing to implement this change part-way through an academic year; calls on the Government to exempt from the VAT charge fees paid in respect of children of military and diplomatic families, all children who have an Education, Health and Care Plan, or who are in the process of applying for one, all children on SEN support, Centres for Advanced Training and schools in the Music and Dance Scheme, all children at schools whose fees are lower than the average per capita funding for a state school place, and children at religious schools of denominations for whom there is no faith school provision in the state sector; further calls on the Government to postpone imposition of the VAT charge for schools in areas where state schools in the relevant key stage are already on average over 95% full; also calls on the Government to postpone imposition of the VAT charge for fees paid in respect of children who have started a public examination course, to September 2025 for pupils currently in Year 11 or Year 13, and to September 2026 for pupils currently in Year 10 or Year 12; and calls on the Government to publish a full impact assessment of the effects of this policy on independent schools and the state sector ahead of the Budget.

There are 85 days to go until the introduction of Labour’s education tax, and we are still in the dark. Many questions remain for parents, for children and for schools—when I say “schools”, that is both independent schools and state schools—and also for the local authorities that are responsible for special educational needs provision and generally for ensuring that everyone can get a place at school.

This is a huge change, which is being made in a headlong rush. There are big worries about children with special educational needs or a disability, about military families, about the talented musicians and dancers of tomorrow, about small religious faiths and about the widest impact of all—that on state schools, because this means disruption, bigger classes, budget overstretch, and ultimately, parents being less likely to get their preferred choice of school. Even those who do not necessarily object to this in principle are saying it cannot be pushed through this fast, from the Chartered Institute of Taxation to the NASUWT.

It is a long-standing principle that you do not put tax on learning—a principle all but universally observed around the world. On the Conservative Benches we believe in that principle and we believe in the sanctity of parental choice. The vast majority of children, of course, go to state-funded schools, and we defend the right of parents to choose those schools and defend the diversity of those schools. A small number of parents choose home schooling; we defend that right too. And yes, some choose the independent sector.

Parents are the first educators of their children. The state sets an expectation of a suitable education for all children, and beyond that, parents should make the choice of what is best for their child. Parents might decide to opt out of state education for any one, or many, of several reasons—quite often simply because they have found the school that they believe is right for their child, and where their child is most happy.

[Jim Shannon (Strangford) (DUP)]

rose—

[Graham Stuart (Beverley and Holderness) (Con)]

rose—

--- Later in debate ---

[Damian Hinds]

My right hon. Friend is right to identify that many parents make great personal financial sacrifices to do what they believe is best for their children. Some parents whose children go to independent school are rich, and some are definitely not. I include in that latter bracket most of the parents sending their children, for example, to small religious schools in Hackney, Salford or Birmingham. Very many more are in the middle, including many professionals working in our public services.

[Jim Shannon]

The shadow Minister has rightly underlined the issue for those who send their children to faith schools or independent schools. Many constituents in Strangford have told me that they have saved and persevered, have not been on holidays, have not bought a second car, or have even continued to use their old car longer than they should, so that those moneys can go into their children’s education. Does he, like me, find it impossible to understand how it can be that it is the Labour party—the party of conscience, I would say—that has let us down on this issue and is going to penalise people who are hard-pressed to find education for their children?

[Damian Hinds]

The hon. Gentleman is right about the financial sacrifices some make. Let us be clear: it is possible to tax wealthier people or people with a higher income more, but the Government should be honest about it. The way to do so is through the income tax system, not through a choice that people make to have their child in an independent school. The hon. Gentleman did not mention this, but I might add that because the situation in Northern Ireland is different from that in England—by the way, the situation in Scotland is different, too—the Government need to think carefully about how the policy is applied throughout the whole United Kingdom, because VAT is a reserved matter, and about what it means for the hon. Gentleman’s constituents and others across these islands.

Independent Schools: VAT and Business Rates Exemptions

Jim Shannon Excerpts

Tuesday 8th October 2024 Westminster Hall

[Richard Fuller (North Bedfordshire) (Con)]

My hon. Friend is speaking eloquently about the impact on children’s education, on children with special educational needs and on children being ripped out of their schools, perhaps in the year of their GCSEs or A-levels. This is obviously a debate about education. There are Members of Parliament in the Chamber from the Conservative party and the Liberal Democrats, as well as independent MPs and Members from Reform—

[Jim Shannon (Strangford) (DUP)]

And the DUP.

[Richard Fuller]

And the DUP.

[Jim Shannon]

I am always here, by the way.

[Richard Fuller]

It is not always about the hon. Member for Strangford (Jim Shannon). The Labour party has marshalled all but two of their MPs, one of whom hates the policy—I do not know what the other thinks.

Does my hon. Friend the Member for Bromsgrove (Bradley Thomas) think that it is shocking that not a single member of the Education ministerial team of the Labour Government has bothered to show up today, yet they continue to use the airwaves to spew out spiteful and divisive messages about this Labour policy? The Minister present, the hon. Member for Ealing North (James Murray), does not care about education; he cares about money—he is a Treasury Minister. He knows that the policy will not raise any money, but it is going to cost taxpayers.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

To provide an example of the two minutes, I will speak at a very speedy rate. I thank you, Dame Caroline, for allowing me to speak, and I congratulate the hon. Member for Bromsgrove (Bradley Thomas) on bringing forward the debate.

I will make two points. I have a large number of independent schools in my constituency, but I want to speak about our local grammar school, Regent House. It is one of the top schools in Northern Ireland and has a preparatory school attached. I have been contacted by parents of children in the school, who have succinctly outlined their view: this is clearly yet another blow to the working family who are trying their best for their children and making sacrifices, which become more difficult with every passing Budget. Our schooling system in Northern Ireland is different, and I agree with my party colleague, the Education Minister Paul Givan, who has outlined reasons why the change cannot go ahead. Some 2,500 pupils in Northern Ireland attend grammar school preps, Christian schools and other independent schools, and their parents top up to allow them to have this privilege.

Let us be clear about what is happening: these are not people with lots of money. These are people who use their money to send their child to a good school to provide them with an education. Taxation is decided at Westminster, as the hon. Member for Edinburgh West (Christine Jardine) said, and that is important. The headmaster of one independent Christian school said,

“We have some pupils in our Christian schools who are entitled to free school meals, so by no means are many of our parents rich.”

The options facing those parents are to send their children to the mainstream school against their religiously held views or to homeschool them, and there is very little regulation of homeschooling in Northern Ireland. A private school in Northern Ireland is not a status symbol, as many believe, but a human right based on people’s right to their faith. The Government will massively overstep if they use a massive, sweeping brush to address something that requires a fine brush.

A school in my constituency on the border in Holywood has a different approach to learning, under which children are excelling. Other international schools need to be able to provide schooling for children who move around with their parents’ work and who need access to a different format of education—one where there is some continuity. None of those are status symbols, and they need to be considered separately. I fully agree with the arguments that have been made today, and I ask the Minister to consider them.

Winter Fuel Payment

Jim Shannon Excerpts

Tuesday 10th September 2024 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I rise to publicly oppose this proposed change. I understand the need to balance the books—we all do, and we know how it works—but to be perfectly frank, and it gives me no joy to say this, I never imagined ever in my life that a Labour Government would seek to balance the books on the backs of pensioners throughout the United Kingdom. I put that on record at the beginning. I say it respectfully, but with great grief.

I fully comprehend that the system could do with an upgrade. Perhaps we should look at a household cap, as we have with the child benefit payment. Perhaps we could look at allocating per household, rather than per person. Perhaps we could look at ensuring that everyone who is still earning more than their pension through employment can have deferred payments until full retirement. Perhaps we could look at an opt-out scheme for pensioners such as me. I do not need the money; I asked not to take the money. I give the money to charity. I am not better than anybody else—never am I better than anybody else—but I realised that I did not need that money, so I gave it away. Others might want to do the same thing.

It should be direct face-to-face applications for pension credit. There should not be a nine-week wait for the application to be processed. My goodness, people need the money now. The threshold should be raised. The Government and the Minister have said about the £440 that is coming next spring, but pensioners need the money this winter and as soon as possible.

In Northern Ireland, 68% of homes rely on oil-fired boilers for heating. There are high levels of fuel poverty, with 22% of the population currently spending more than 10% of their household income on heating their homes. I think about the women who have a tiny workplace pension from the hours they worked while their children were in school. The women of the Women Against State Pension Inequality Campaign have already been disadvantaged and will pay a further price for not being allowed to save for their needs. I am begging this Government on behalf of my constituents in Strangford not to remove the benefit from everyone in one fell swoop.

[Carla Lockhart (Upper Bann) (DUP)]

National Energy Action estimates that close to 45 people die every winter’s day in the UK due to cold homes. This Government, in their wisdom and through this decision, have decided to imperil many more. Does my hon. Friend agree that it is wrong, it will have an impact and it will cause deaths right across the United Kingdom?

[Jim Shannon]

My hon. Friend is absolutely right. We all recognise that this winter will be one where pensioners will feel the gravity of this and the pain of the cold. I stand for all those who are making do with less than £1,000 a month and those pensioners who will be impacted by the winter fuel allowance being taken away from them. For them, this is a lot of money. It is the difference between being warm this winter or simply surviving. It is not an exaggeration; it is life for my constituents and, respectfully, for the constituents of those on the Government Benches.

I will conclude. The clock for speeches has stopped. I will be respectful of the time, as you would expect, Madam Deputy Speaker.

Those who have worked all their lives deserve to be paid for what they paid in. There is a basic standard, along with women and children go first in the lifeboat: protect those who cannot survive the icy cold. So let us slow down the ship—I look to Labour to make that happen—and veer away from the iceberg, which some Members only see the tip of at the moment, which could be the destruction of the Government before their first journey even begins. Let us correct course and get this right. Let us support the Opposition motion, which reflects the mood and opinion on the Opposition Benches. I hope that the Labour party will realise that it is going the wrong way. We are trying to direct them the right way.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 3rd September 2024 Commons Chamber

[Rachel Reeves]

The rural economy plays an incredibly important role in our economic prosperity as a country, and boosting food security and biodiversity is obviously incredibly important to a whole range of this Government’s objectives. I will ensure that the Secretary of State for Environment, Food and Rural Affairs hears loud and clear the message from the hon. Member, and I am sure he will include it as part of his submission to the spending review on 30 October.

[Jim Shannon (Strangford) (DUP)]

I thank the Chancellor for that and I welcome her to her place. It is important to encourage inward investment. It is also important to address the issue of youth unemployment. As of the first quarter of 2024, the youth unemployment rate in Northern Ireland was 5%, compared with 3.8% the month before. What discussions has the Chancellor had with the Northern Ireland Assembly Minister in charge to ensure that youth unemployment in Northern Ireland will be reduced to an acceptable figure, which should be zero?

[Rachel Reeves]

A huge amount of inward investment goes to Northern Ireland, as the hon. Gentleman knows, and it is important that young people are able to take advantage of those huge opportunities in our economy, whether in financial services, advanced manufacturing, shipbuilding or the many other sectors that are important to Northern Ireland. It is a travesty that something like one in five young people today are not in employment, education or training. The Secretary of State for Work and Pensions will be bringing forward a White Paper to ensure that everyone who can work does work and is given the support to succeed, both in Northern Ireland and across the United Kingdom.

Banking Services: Rural Northumberland

Jim Shannon Excerpts

Monday 2nd September 2024 Commons Chamber

[Joe Morris (Hexham) (Lab)]

I thank Mr Speaker for granting this debate.

The Minister will know as well as I do, and as well as Members on both sides of the House do, that there are banking deserts across the country, with many people shut off from accessing very basic face-to-face services. The figures merely hint at the crisis in my constituency. Northumberland has lost more than half of its bank branches since 2015, and figures from Which? show that Hexham has lost over 70% of its branches, with only five branches remaining in the constituency.

Five bank branches would sound almost luxurious to many colleagues, but Hexham is the largest constituency in England, reaching from Throckley on Newcastle’s western edge to Gilsland in Cumbria, and from Blanchland on our border with County Durham to Byrness, which is a stone’s throw from Scotland. These bank branch closures do not just mean an inconvenience to my constituents; they present a toxic cocktail that both damages quality of life and holds back the growth of our rural economy.

The services that bank branches provide to our constituents are wide-ranging and impactful, and many rely on these services during life’s big moments. Obvious examples include help with large payments and support with mortgages, but there is also help during life events such as bereavements or securing power of attorney. The compassion, expert support and guidance that bank branches provide to our constituents cannot be allowed to disappear as an inevitable consequence of having better digital services. Closures let down our young people who want to start businesses but find it hard to do so due to their inability to have face-to-face discussions, as well as our older people who find access to cash hard to come by; in some cases, they have to trek across rural Northumberland on public transport to reach their closest branch.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for securing this debate. He is absolutely right that everyone in the House tonight will have experienced bank closures. I have lost 11 branches in my constituency. Does he agree that before a bank decides to close a branch, it should have an alternative in place, such as a banking hub, an ATM or alternative services through a post office?

[Joe Morris]

I very much agree that before a bank branch closes, we need to mitigate the consequences. We need to make sure that the rural economy has space to grow, so that people like my constituents do not face such long journeys, which are particularly hard to navigate on public transport.

--- Later in debate ---

[Tulip Siddiq]

I absolutely hear what my hon. Friend says about protecting vulnerable people in our constituencies. That is why a lot of us stood for the Labour party: because we want to protect the most vulnerable. I will come on to LINK, which provides the banking hubs, but if he does not mind writing to me and laying out exactly what the issue is, I can write to him about the topic and about the criteria, because it sounds as if there is a very small matter that needs looking at and I am happy to do so. I will talk later about LINK, but I ask him to make representations as well.

[Jim Shannon]

I congratulate the Minister on attaining her office and wish her well in it. I think she referred to 350 banking hubs, which I presume means across the whole of the United Kingdom of Great Britain and Northern Ireland—I hope so. If not, I ask her to confirm that the same progression and the enthusiasm that she is showing will also happen in Northern Ireland. I ask her one other thing, about which I spoke to the hon. Member for Hexham (Joe Morris) beforehand. Setting up banking hubs seems to take forever. We all want them in place. Is that something that the Minister can help us with?

[Tulip Siddiq]

No Adjournment debate would be complete without an intervention from the hon. Member, so I am glad he intervened; I was waiting for him to do so. I share his frustration about the slowness of the roll-out—I pushed for it when I was in opposition and asked why it was taking so long. I will address this point in my speech, but I can reassure him that with as much influence as I have in our office, we have been asking for the banking hubs to be set up and ready. We are hoping to achieve 100 banking hubs by the end of this year, but I am conscious that they take a long time to set up. It is to do with the planning process, but that is not an excuse. I would like to speed up the roll-out, because I feel it has been dragging on for a long time. I absolutely share his frustration.

As the hon. Member might know, 60 banking hubs have already opened. As I said, we anticipate that 100 will be open at the end of this year, but I agree that it is frustrating to have to wait and watch. We want them to be up and running so that our constituents can make good use of them. We want to ensure that the hubs mean that people and businesses can withdraw and deposit cash, because we know that people still use it. They will deposit cheques, pay bills and make balance inquiries. They will also contain dedicated community bankers from the largest banks in the area on a rotating basis, to help people and businesses carry out wider banking services.

The decisions on the locations of future banking hubs will be made by LINK, which is the banking industry’s cash co-ordinating body. It will consider criteria such as population size, the number of retailers in the community and the availability of alternative bank branches. Communities can ask LINK to carry out an assessment of the local area; I urge my hon. Friends the Members for Blyth and Ashington (Ian Lavery) and for Hexham to make to LINK the case that has so convincingly been made to me. At the end of the day, we have asked it to make the decisions, but I can help in the process as well.

Looking forward, I expect the banks to consider carefully whether the needs of a local community are being adequately served when thought is given to where the banking hubs should be rolled out. However, I also want the industry to ensure that the range and quality of banking services provided in hubs are delivering for customers up and down the country. There is no point in having a banking hub if it does not meet the specific requirements of the town.