Cost of Living Increases

Jim Shannon Excerpts

Wednesday 16th March 2022 Commons Chamber

[Helen Whately]

If my right hon. Friend will give me a little time, I will come on to the importance of growth to our economy, which is the right answer for the longer term in ensuring that we improve people’s standard of living.

Pressures on household finances are not generally the consequence of one single price rise; they are typically affected by an amalgam of different factors. Remedying the pressure on households therefore requires taking action on a range of fronts, not just on energy bills. Again and again, that is what this Government have done and are doing. We are acting in dozens of ways to support working families. For instance, over the winter, the £500 million household support fund has helped vulnerable households with the cost of essentials such as food, clothing and utilities. Local authorities in England have allocated the lion’s share of that funding to ensuring that it reached those who needed it most, with 50% ring-fenced for households with children. Additional funding was allocated to the devolved Administrations, including the Scottish Government, in the usual way.

We have also reduced the universal credit taper rate and increased universal credit work allowances by £500 to ensure that work pays. This is essentially a £2 billion tax cut for the lowest paid in society. It is helping around 2 million households to keep an average of an extra £1,000 per annum in their pocket. Next month, the national living wage is increasing by 6.6% to £9.50 an hour, again benefiting more than 2 million workers and meaning an increase of over £1,000 in the annual earnings of a full-time worker on the national living wage. And we are committed to going further, so the national living wage will reach two thirds of median earnings for those over 21 by 2024, provided that economic conditions allow. We have supported working families in other ways too: doubling free childcare for eligible parents, which is worth around £5,000 per child every year, and introducing tax-free childcare, which will provide working parents with 20% support on childcare costs up to £10,000.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for what she is saying, and I welcome the £400 million that is going to Northern Ireland under the Barnett consequentials. The Republic of Ireland has suspended VAT on fuel in the short term to try to address the issue now. Can I ask the Minister whether any discussions have taken place with the Chancellor to see whether that could be done for us here in this great United Kingdom?

[Helen Whately]

I am not sure I heard exactly the specifics of the hon. Gentleman’s question, but in general there is already a lower VAT rate on fuel. Overall, however, if the question is whether we should have no VAT on fuel, the Chancellor has spoken about how that would in fact disproportionately benefit wealthier households, so it simply cannot be the right thing to do when it is the less wealthy households who face the greatest challenges in paying their energy bills.

The list of what we are doing in many different ways to help households goes on and on. Increasing fuel prices are indeed a global issue, not unique to the UK. The price of crude oil has increased sharply over the past year, increasing the price consumers pay at the pump. That is why we have taken action by freezing fuel duty; drivers are being protected by the 12th consecutive year of fuel duty freezes, with the average car driver paying around £15 less fuel duty per tank, saving them a cumulative £1,900 since 2011 compared with the pre-2010 fuel escalator.

On housing, the Government are maintaining the increase to local housing allowance rates for private renters on universal credit and housing benefit in cash terms. That increase was worth an extra £600 on average in 2020-21 for more than 1.5 million households. An additional £140 million has been provided this year for discretionary housing payments for those eligible for housing support who need extra help. All that is on top of existing support for families through the welfare system, which this year will add up to £240 billion of support, including £41 billion on universal credit and £105 billion through the state pension.

Turning specifically to Scotland, on top of our energy bill support scheme, which applies there, the council tax measure in England means the Scottish Government are receiving almost £300 million more than would otherwise be the case, which they can use towards cost of living interventions.

This Government will always do what we can to help those in need, and our actions speak for themselves, but we are also determined to help people to help themselves. The Government’s plan for jobs is helping people into work and giving them the skills they need to progress and earn more, which is the best approach to raising living standards. The Government are building on the success of the plan for jobs with a total of £6 billion on labour market support for the three years to 2024-25, providing targeted additional support to help at-risk groups find work, including younger and older age groups, the long-term unemployed and people with disabilities.

Why are we doing that? Because we know that work is the best way for people to get on, to improve their lives and support their families, and because households on universal credit are at least £6,000 a year better off in full-time work than out of work.

National Insurance Contributions Increase

Jim Shannon Excerpts

Tuesday 8th March 2022 Commons Chamber

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

rose—

[Jim Shannon (Strangford) (DUP)]

rose—

[Rachel Reeves]

I will give way to the hon. Lady, and then to the hon. Gentleman.

--- Later in debate ---

[Rachel Reeves]

Sorry, I said I would give way to the hon. Member for Strangford (Jim Shannon). I will do that and then I will make a little more progress.

[Jim Shannon]

I thank the hon. Lady for putting forward her point of view. My party and I supported her party on a previous Opposition day in relation to a tax on oil and gas. Today the hon. Lady is, on behalf of the Opposition, putting forward something that is equally important. In my constituency of Strangford, fuel prices are up 50% and grocery prices are up between 25% and 30%. Does she agree that while for some the national insurance contributions increase will be a weightless straw, it could well be the straw that breaks the camel’s back?

[Rachel Reeves]

The hon. Gentleman speaks powerfully on behalf of his constituents, who are struggling with the double whammy of prices increasing, particularly gas and electricity bills, at the same time as this Government are piling on pressure after pressure with higher taxes on the same people who are paying those higher bills. He is absolutely right that people can only take so much, and the national insurance contribution tax hike is, as he says, potentially the straw that breaks the camel’s back.

Politics is about priorities, and it is about choices. So who has the Chancellor chosen to protect—not to tax more? Those who earn huge incomes from a large portfolio of buy-to-let properties or those making large sums from selling stocks and shares will not pay a penny more tax on that income. The super-rich will not be paying more. Roman Abramovich and billionaire oligarchs are not being made to pay more tax. In fact, some of those trying to relinquish their assets now appear to be using offshore vehicles to avoid paying tax. Lubov Chernukhin, wife of Putin’s former finance Minister, and mega-donor to the Tory party, has reportedly lobbied Ministers against higher taxes for the wealthy. As luck would have it, she will not be paying any more tax, unlike people across Britain who work for a living and keep our economy going.

Yazidi Genocide

Jim Shannon Excerpts

Tuesday 8th February 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Argyll and Bute (Brendan O'Hara) for setting the scene so well. He illustrated the issues, which are painful to listen to; I find it incredibly difficult, but as I said to the hon. Member for Enfield North (Feryal Clark) before the debate, we want to ensure through this debate, our Government and our Minister that the issue of the Yazidis and Christians who were horribly mutilated, abused and kidnapped, and whose lives changed for ever because of the evil intent of Daesh/ISIS and radical Islamicists, is not ignored. Today, in this House, we have a chance to remind the world of what happened and ask our Minister and Government to take forward our pleas on their behalf.

In 2017 or 2018, I had occasion to visit Iraq with Aid to the Church in Need. It was before Mosul fell. I remember being on the plains of Nineveh, which the hon. Member for Argyll and Bute referred to. We became very conscious of where the saints had walked, according to the Bible, and, secondly, where Yazidis and Christians had at one time lived in peace and harmony with their neighbours. The people we spoke to told us the stories that were happening and the change in their lives. That reminded us clearly of the suffering and pain.

As chair of the all-party parliamentary group on international freedom of religion or belief, I am, very sadly, all too familiar with the issue of genocide and ethnic cleansing. There is not a day when we are not reminded of where that is taking place across the world. We have had debates in this Chamber about the Uyghurs, and our debate a few weeks ago reminded us of other atrocities across the world. We have a prayer time in the morning when we remember all the places across the world where many have evil intent and the innocence of families—women, girls, boys and men—is abused by evil people.

Today, we need to state that it is critical that Her Majesty’s Government recognise a genocide for what it is. We hope that that might help bring dignity to the victims and aid the prosecution of the perpetrators. I am a great believer—you probably are as well, Mr Hollobone—that when this world ends, the next world will come. There will be a judgment day for the people who carried out these most horrific and horrible of crimes. I would love to see them getting their judgment earlier—in this world, rather than in the next. I would expedite that if it was humanly possible, because those people who wander the world and commit awful crimes seem to think that they are above the law. No, they are not, and this debate aims to hold them accountable in law. Again, we are eternally grateful to the hon. Member for Argyll and Bute for securing the debate.

In April 2016, the House voted unanimously to recognise Daesh’s crimes against the Yazidis and other religious minorities as genocide; that followed similar motions in the House of Lords—a combination of the two Houses together. However, the Government’s long held position, that they should wait for a ruling from a court or tribunal before declaring a genocide, prevented recognition of the crimes at that time.

As the hon. Member for Argyll and Bute mentioned, on 30 November, in a court in Frankfurt, Taha al-Jumailly—hell will never be full until he is there, that is for sure—became the first member of ISIS to be convicted of genocide against the Yazidis. The landmark ruling fulfils Her Majesty’s Government’s requirement of a competent court ruling on genocide. Following that, a letter was sent to the Prime Minister, asking whether his Government would now recognise the crimes. So far, there has been no response to the letter. I ask the Minister—I say this respectfully, as he knows—to remind the Prime Minister that it is time to respond to the letter so that this House, through today’s debate, can see what is happening.

The UK would not be alone in recognising the genocide; in fact, it would join some of our country’s closest allies. The USA was the first country to recognise the Daesh genocide, under the Obama Administration. In 2016, both Canada and the Netherlands also recognised the genocide, after a report was published by the UN Investigative Team to Promote Accountability for Crimes Committed by Da’esh, entitled “‘They Came to Destroy’: ISIS Crimes Against the Yazidis”.

It is horrible to recount what has happened to a group of gentle people who have a religious belief. We in this House, including all those who have spoken in the debate and all those who are present, speak up for those with Christian beliefs, those with other beliefs and those with no belief. We believe in the freedom to exercise one’s religious belief and that human rights are so important and need to be retained. That is why we are here today to make this plea on behalf of the Yazidis.

There is a strong legal justification for the UK to recognise this horrendous act as genocide, and it is time that it did. The reasons for the urgency can be summarised as follows. First, it is important to acknowledge what has happened. The act of genocide is a deliberate attempt to destroy a targeted group of people, and Daesh/ISIS set out to do that with vengeance and cruelty. In acknowledging what has happened, we have a duty to protect the victims and ensure that there are safeguards to prevent future atrocities.

It is important to remember that this is not a historical event, but a situation in which action is still needed to help the survivors. Tens of thousands of Yazidis are still living in tent camps, unable to access Government funds to rebuild their towns and villages, which were destroyed by Daesh. I know that the issue is not the Minister’s direct responsibility—it is the responsibility of another Minister at the Foreign, Commonwealth and Development Office—but what can be done to help those families get back to their homes and build their houses, villages and towns so that they can try to restart their lives, ever mindful of the horrible atrocities carried out against them? Some 2,700 Yazidi women and children are still missing, having been kidnapped by Daesh. Many are believed to be held in al-Hawl and al-Roj detention camps, trapped with 60,000 former Daesh members and fighters. We need little imagination to recognise and imagine the horrors that women and girls suffer daily in those camps.

It is important to recognise this as a genocide because it is important to prosecute the perpetrators and put them in jail—if the death penalty were still available, we should give them that for what they have carried out. It is very clear in my mind what they have done, and I recognise their brutality and murderous intent. It is time for them to take responsibility for their actions. The prosecution of those who carry out such crimes provides justice for the victims and sends a strong message to the perpetrators of other genocides that the international community, including here in the United Kingdom of Great Britain and Northern Ireland, are watching and will hold actors accountable for their actions. Prosecutions will also allow for the seizing of assets—yes, hit them where it hurts, in their pockets—used for the conduct of genocide. The removal of assets prevents ongoing atrocities and aids reparations for surviving victims. Ultimately, victims need money and finance when they go back to rebuild their lives.

Unfortunately, prosecution has been slow. So far, only one member of Daesh has been prosecuted with charges relating to genocide, in a criminal trial in Germany. The UK has prosecuted nationals who have returned from Iraq and Syria after joining Daesh. I welcome that, by the way, as a clear statement and clear action, but all 40 of those individuals have been prosecuted under anti-terror legislation, with no reference to crimes related to genocide or the sexual exploitation of women and children. Will the Minister respond on that?

Recommendation 21.b of the Bishop of Truro’s review of Christian persecution recommends that those at the FCDO

“champion the prosecution of ISIS perpetrators of sex crimes against Yazidi and Christian women, not only as terrorists.”

I am ever mindful that some parts of the Bishop of Truro’s report have not yet been acted on, but I thank the Government and the Minister for the conference that will take place in July this year to highlight all the issues. The Government have been a driver in this, and I give credit to those who have tried hard to make things happen. On the issue of recommendation 21.b, I ask the Minister to give us some thoughts. Her Majesty’s Government have pledged to adopt all recommendations of the Truro review by the summer of 2022. That is coming soon, so in the next three or four months we want to see that happening. To meet that recommendation, the UK needs to expand prosecutions against former Daesh members to include those crimes.

Finally, it is important to recognise genocide, as part of our international obligation to prevent future genocides. The hon. Member for Wealden (Ms Ghani) was here earlier; for the record, I should say that I greatly admire her fortitude and courage in speaking out for the Uyghurs and doing the same again here today on behalf of others. That illustrates our frustration as elected representatives: we recognise evil and the evil intent of people, but we expect—I say this with respect—our Government and Minister to do something about it, after the pleas we make on behalf of those who have suffered.

The UK is a signatory to the 1948 convention on genocide, which governs the steps that states must take to prevent genocide from occurring and to punish perpetrators after the crime has been committed. Today, in the debate, we need assurances so that we are confident that our Government and our Minister are taking every step possible to ensure that the perpetrators of those evil crimes will go to court and be subject to whatever the judgment of the court will be.

Her Majesty’s Government’s approach of waiting until a court or tribunal has ruled on genocide prevents the UK from doing more to stop genocides from occurring before they happen. With real grief in my heart, I look to the Government and the Minister to recognise the words that we are saying, although words in no way encapsulate what we are trying to say—words barely describe the issues. I know that the Minister understands, because he is of the same mind as me and as others present who find what has happened grievous to listen to, and more so when considering what we need to do.

In recommendation 7 of the Bishop of Truro’s report, he asks the Government to

“Ensure that there are mechanisms in place to facilitate an immediate response to atrocity crimes, including genocide…and…be willing to make public statements condemning such atrocities.”

I have mentioned the report a couple of times—the earlier recommendation and this one. We look to the Government’s commitment that the adoption of all the recommendations will be finalised and concluded by the summer of this year. We need to have that assurance.

This is my last paragraph. The international obligations are important, as they help prevent future crimes. Sadly, the genocide against the Yazidis by Daesh is not unique. It is terrible to recall what happened, but we also recognise that genocide has been carried out in other parts of the world. Religious or ethnic minorities are at risk, including of genocide, in many situations.

In conclusion, I thank the hon. Member for Argyll and Bute and other speakers, and I look forward to the contribution from the hon. Member for Enfield, Southgate (Bambos Charalambous), who would contribute to a debate such as this even if he were not shadow Minister. I also look forward to hearing from the hon. Member for Linlithgow and East Falkirk (Martyn Day), my friend and colleague from the APPG, who understands these issues well.

We have a duty to speak up for the Yazidis and Christians and that is what we have done, in a compassionate way that matters to us. We look to the Minister and our Government to ensure that there is accountability for what has happened to the Yazidis and Christians in northern Iraq and elsewhere. There must be accountability, recognition of genocide and completion of the recommendations in the Bishop of Truro’s report.

--- Later in debate ---

[The Minister for Europe (Chris Heaton-Harris)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I am grateful to the hon. Member for Argyll and Bute (Brendan O'Hara) for securing this debate in the time apportioned by the Backbench Business Committee. I pay tribute to his work as a member of the all-party parliamentary group for international freedom of religion or belief. The Minister for the Middle East, North Africa and North America would have been delighted to take part in this debate as part of his responsibilities, but he is travelling on ministerial duties. It is therefore my pleasure to respond on behalf of the Government. While I am sure the hon. Gentleman will understand that I am not the Minister with responsibility for this area, I do recognise the decent and honest conviction and the passion that he brought to the debate.

I am also grateful for the contributions from all other hon. Members, and I will try to respond to many of the points they have raised. I would like to acknowledge the hon. Members for Rutherglen and Hamilton West (Margaret Ferrier), for Strangford (Jim Shannon) and for Enfield North (Feryal Clark), as well as the two Opposition spokesmen, the hon. Members for Linlithgow and East Falkirk (Martyn Day) and for Enfield, Southgate (Bambos Charalambous), for their contributions.

It is without doubt that the Yazidis have suffered immense pain and loss through the abhorrent crimes that Daesh has inflicted on them, some of which have been highlighted in the most harrowing terms today. The UK Government are steadfast in our support for the Yazidis and other religious minorities whose human rights have been so brutally violated by Daesh. We are committed to ensuring that the voices of those murdered, persecuted and silenced are heard, and that justice is secured for the survivors.

Nearly eight years ago, Daesh launched a brutal offensive against Sinjar—a region of northern Iraq. It killed up to 10,000 Yazidi people and forced thousands to flee their homes. It subjected them to torture, sexual violence and enslavement. Thousands of Yazidis, among Christians, Turkmens and other minorities, suffered unimaginable violence. The impact of these crimes resonates to this day.

Iraq’s religious and ethnic minority populations have dwindled as so many people have fled conflict and persecution. Amnesty International reports that 2,000 Yazidi children who were captured by Daesh have faced horrendous physical and mental trauma and now require urgent support from the Iraqi Government. Nearly 3,000 women and girls remain in captivity and 200,000 Yazidis remain displaced, living in camps without basic necessities. A wave of recent suicides among Yazidis grimly illustrates the mental health crisis they are facing. We condemn in the strongest terms the atrocities committed by Daesh against all civilians, including Yazidis, other minorities and the majority Muslim population in Syria and Iraq.

The hon. Member for Argyll and Bute described the Government’s policy. It is the long-standing policy of the British Government that the determination of genocide should be made by a competent court. Whether or not that determination is made, we are committed to robust action. In 2017, the UK was instrumental in the adoption of UN resolution 2379, which established the UN investigative team to promote accountability for crimes committed by Daesh. Since then, a huge amount of work has taken place to gather evidence to map the appalling crimes of Daesh. The UK Government have contributed nearly £2 million to the team, and we continue to champion its vital work. Above all, Yazidis and all other Iraqis deserve a safe and secure future, which is why we remain a leading member of the global coalition against Daesh, supporting the Government of Iraq to ensure that Daesh can never recover and repeat its appalling crimes.

Every hon. Member has asked about the UK Government’s position on the recent ruling of genocide in Germany. I will start by saying we condemn in the strongest terms the atrocities committed by Daesh against all civilians. We note the conviction in the German court on 30 November of a former Daesh fighter for war crimes, crimes against humanity and genocide against a Yazidi woman and her daughter. We are closely following the case and the review. Following the proceedings in the Frankfurt Higher Regional Court, the Federal Court of Justice is reviewing the case. As a Minister who is not within his portfolio, I am hesitant to comment further on ongoing legal proceedings.

To reduce the risk of a Daesh resurgence, it is essential to build a more stable and inclusive Iraq. The UK has designated Iraq as a human rights priority country. Work to promote and defend freedom of religion or belief in Iraq is at the centre of that strategy. We believe passionately that the freedom to choose and practise a religion or to have no religion at all is a universal human right that everyone should enjoy. We are standing up for those who face religious persecution and those denied the right to practise their faith or belief freely. We continue to press the Government of Iraq and the Kurdistan Regional Government to promote freedom of religion or belief and to improve the lives of religious minorities.

[Jim Shannon]

In my contribution, I asked what would be done to enable Yazidis and Christians to return to their villages, towns and homes and to rebuild their lives, jobs and communities. It is important that, if they wish to return, every encouragement is given for that to happen. I understand that it is not the Minister’s portfolio, but I would be grateful if he could answer that now or perhaps give us an answer later.

[Chris Heaton-Harris]

I hope to cover that in the rest of my contribution, but if that is not the case, and the hon. Gentleman taps me on the shoulder afterwards, I will ensure that I write to all present in the Chamber.

The Government of Iraq and the Kurdistan Regional Government must ensure that religious minorities are protected and included in decision making that affects their lives. As part of that, we meet frequently with religious minorities to show support and advocate against the insecurity, discrimination and inadequate public support they experience. His Holiness the Pope’s historic visit to Iraq last year sent a welcome message of peace and reconciliation to Iraqis of all faiths and reminded us all of the importance of dialogue and understanding between religions.

We are also supporting the most vulnerable people in Iraq, including the Yazidis, with humanitarian aid and stabilisation support. We have provided more than £270 million since 2014 in humanitarian support, including emergency food, shelter and medical care, in addition to money through the UN development programme to restore vital services, including hospitals, schools and water networks in areas that are home to Yazidi and minority communities, such as Sinjar and Sinuni.

It is also vital that we ensure that the Yazidis’ cultural identity, memories and practices are preserved, and we are supporting this through the work of the British Council’s cultural protection fund. That fund is helping the AMAR Foundation—a wonderful charity—to record and teach the unique music of the Yazidi people, helping to preserve it for future generations. That includes setting up a women’s choir in one of the camps for internally displaced persons. That cultural protection fund is also supporting the University of Liverpool’s work to preserve Yazidi culture and identity through filming their oral histories, festivals and rituals. We are funding Yazda, a non-governmental organisation, to provide much-needed mental health and psychosocial care to female survivors of sexual violence and conflict.

These projects offer a lifeline, but much more can be done by the Iraqi authorities and the international community. Last year, the Iraqi Parliament passed the Yazidi survivors law, a hugely positive step that officially recognised Daesh crimes against Yazidi and other minority groups as crimes against humanity and genocide. That law promises compensation and rehabilitation measures to support the survivors of Daesh atrocities. The UK will continue to press the authorities on those measures, and we are working with a range of organisations to support the law’s implementation. The Government of Iraq must fully deliver on their promises so that survivors can begin to rebuild their lives and return to the places that they call home. That includes funding for Iraq’s general directorate for Yazidi survivor affairs through our preventing sexual violence in conflict initiative.

I will conclude by again stressing our firm resolve to help Iraq build a future in which all groups can thrive and prosper. I commend the courage of the Yazidi people in continuing their fight for justice; their recovery and rehabilitation remains a priority. I commend every Member who has contributed today, including my hon. Friend the Member for Wealden (Ms Ghani), who was in the Chamber earlier. We will continue to work with the Government of Iraq to secure accountability and justice for Yazidi survivors and the other communities that suffered so dreadfully at the hands of Daesh.

Economic Update

Jim Shannon Excerpts

Thursday 3rd February 2022 Commons Chamber

[Rishi Sunak]

My hon. Friend makes an excellent point. I confirm that the £150 is not for those with second homes or empty homes. We will make that crystal clear in how the policy is executed.

[Jim Shannon (Strangford) (DUP)]

I thank the Chancellor for his contribution. I do not want to be churlish—a fair bit of money has been set aside and we appreciate that—but with the further rise in energy prices and the uplifted cost of living in general, working families will have to choose what to cut out of their lives to make ends meet. I put on record that I welcome the £150 million for Northern Ireland and the other Barnett consequentials, but will he consider and commit to reviewing the child benefit threshold for families whose wages are the same but are simply not worth the same in real money terms as when the threshold was introduced in 2013?

[Rishi Sunak]

I am glad that the hon. Gentleman recognises that there are two sets of Barnett consequentials for Northern Ireland stemming from each of the policies, which sum total £250 million. He will appreciate that I cannot comment on future tax and welfare policy but, as always, I will take what his says and reflect on it.

Downing Street Parties: Police Investigation

Jim Shannon Excerpts

Tuesday 25th January 2022 Commons Chamber

[Michael Ellis]

If a group of people take cake for 10 minutes while at work, everyone is permitted a reasonable break as part of their working day. That is one possible interpretation. Ten minutes of eating cake and wishing someone a happy birthday would not a party make, but it is a matter for police investigation, and that is what is now happening.

[Jim Shannon (Strangford) (DUP)]

I thank the Paymaster General for his responses to these questions. It seems like there are new reports of suspected lockdown breaches each day now. I am pleased, however, that the Metropolitan police’s investigation is under way. Will he confirm that any and all findings from these investigations will be disclosed to the media for public reassurance, that this will be the case for all reports of potential breaches that may yet come before Sue Gray’s investigation is concluded and that justice will be done?

[Michael Ellis]

I assure the hon. Gentleman that the findings of Sue Gray’s report will be put before this House.

Rebated Fuel Rules: Construction Industry

Jim Shannon Excerpts

Wednesday 19th January 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

Thank you very much for calling me to speak, Mr Bone.

I thank my hon. Friend the Member for Upper Bann (Carla Lockhart) for setting the scene so well, and I thank others for their contributions. The right hon. Member for Orkney and Shetland (Mr Carmichael) also hit the nail on the head, which is that small businesses will be affected. The right hon. Member for East Yorkshire (Sir Greg Knight) intervened on the issue that I want to talk about on behalf of constituents who have contacted me, who are not involved in construction as such but are involved in that sector.

I will give two examples of that. Just after Christmas, I wrote to the Chancellor about this very matter, which is of some importance. My constituents are clearly perplexed to find themselves in a position where the cost factor may push them to the stage where they have to make a decision about the survival of their businesses. When I make these pleas to the Minister, I do so because I hope to get a consideration or concession for one of the firms, and the other has told me clearly what its problems will be.

It is great to be here to support my hon. Friend the Member for Upper Bann. This issue is imperative for Northern Ireland businesses. The new legislation coming into force from April 2022 will have a significant impact on our economy—in particular on our construction industry and, as mentioned by the right hon. Member for East Yorkshire in his intervention, those involved in clearing up afterwards. There are huge concerns about this issue throughout Northern Ireland.

It is great to speak on behalf of the businesses in my constituency. There are many contributing factors making the move to white diesel unsustainable at this time. First, the cost is a primary factor for most of my constituents affected by this issue. I have given two examples, but it will actually affect a much greater number. It is like a stone hitting the water; the ripples go out well beyond that. We will feel the impact in many sectors.

Construction businesses across Northern Ireland have stated that, unfortunately, the added cost will be passed on to the customer—in some cases, that means the UK Government, who own and operate some forms of construction work. According to the Civil Engineering Contractors Association, losing the red diesel rebate would cost the UK construction industry between £280 million and £490 million a year. As my hon. Friend the Member for Upper Bann said, in Northern Ireland alone the additional cost will be between £20 million and £25 million.

I recently visited Conexpo, a family business based in my constituency in Northern Ireland. The right hon. Member for East Yorkshire mentioned quarries in his intervention—Conexpo has three, located in Ballygowan, Carryduff and Ballynahinch, all of which are in my constituency of Strangford. Conexpo produces highly polished stone value aggregates for export markets. Every one of the roads around London is built on stone from the quarries in my constituency; the same stone from Northern Ireland is used in Hong Kong. Conexpo is a lucrative business, because people very much want to have that stone. However, at the same time, there is a cost factor.

Conexpo has raised some important points explaining why the current policy on red diesel is not sustainable. My hon. Friend the Member for Upper Bann spoke about phasing in the policy in order to give businesses time to come up with new ideas and innovation. However, for Conexpo, there is no alternative. There are no hydrogen lorries sitting by to take over because they have not been perfected yet. Conexpo has worked extremely hard to reduce its carbon footprint, and it has succeeding in doing that. It is probably doing more for its carbon footprint than most people. Unfortunately, there are currently no alternatives to diesel engines to power the machines it requires. It is a big business—stone goes from its three quarries to Belfast harbour and then across the world.

Conexpo stated that it

“would welcome some clarity to the practical issues of how the red diesel rebate removal will happen. We believe it would be vitally important to retain the utilization of red diesel and a phased increase of the duty levied by HMRC would be charged by the fuel supplier.”

Another example is Cooke Brothers, which is run and owned by Ken Cooke in Newtownards. He has also voiced concerns on the red diesel rebate. He has stated that the Government must provide more clarity in regard to red diesel for generators. His engineering business does instrumental work for shipyards and sewerage works. The lack of information around generators is causing major anxiety for construction businesses.

Can the Minister say if there could be an exemption or some help for the people who depend on generators? Red diesel is important first for lorry movements and secondly for the generators used in engineering.

The legislation will cost the average business an extra £50,000 a year. It will also potentially mean that jobs are on the line. The Government have a proud record of creating jobs—the unemployment rate is down to 4.5% today, which gives us an indication of their polices—but if they want to be progressive and reduce that more, we cannot lose the jobs we have. The Government must recognise that, at this moment in time, there is no suitable alternative for most users, and that discretion must be given to construction businesses that simply cannot afford this change.

I will conclude within the timescale you set, Mr Bone. In my humble opinion, my constituents need help. I look to the Minister for that. Northern Irish businesses have suffered all too much in recent years, from the horrific impact of the protocol to the pandemic, and now our construction employers face extortionate costs relating to the red diesel change. I encourage the Minister to step in now and answer the questions of our constituents. Give us the help needed, give us the reassurance we seek, give us the phasing in. There is undoubtedly confusion surrounding the new legislation. Assurances, as presented by my hon. Friend the Member for Upper Bann and replicated, must be given to ensure the success of our construction businesses.

--- Later in debate ---

[Helen Whately]

I will make a little more progress, and then I will be very happy to. I am keen to make sure I address hon. Members’ points, which I have listened to and noted down during the debate.

Despite diesel being one of the most polluting fuels that vehicles and machinery can use, red diesel benefits from a significant duty discount—a duty rate of around 11p compared with almost 68p per litre on standard diesel. That really is significant. As a consequence, businesses using red diesel pay far less for the harmful emissions they produce than individual car owners. The tax changes that we are introducing in April mean most current users of red diesel in the UK will instead be required to use diesel taxed at the standard fuel duty rate like motorists, which more fairly reflects the harmful impact of the emissions that are produced.

Importantly, the Government have also heard from developers of alternative technologies—cleaner alternatives to red diesel—that the low cost of running a diesel engine on red diesel currently acts as a barrier to entry for greener alternatives. This widespread use of red diesel is actually counterproductive in terms of our ambitions to tackle climate change, reduce emissions and reduce pollution overall.

[Jim Shannon]

I kindly put two issues to the Minister. First, all Members, including my hon. Friend the Member for Upper Bann, have said that there needs to be a staging of this process. Only then will the new technology come through. That is not being negative; we all wish to achieve these goals, but there is a practicality issue. The second point, which I raised in my contribution, is that if exemptions are being given to farmers—which I agree with—would it be possible to have exemptions for those who depend on the generator system? Minister, we are not agin ye—to use an Ulsterism—but we really do think that at this stage there should be some honesty and flexibility in the process.

[Helen Whately]

I heard the hon. Member’s point there. A number of colleagues, including the hon. Member for Upper Bann, talked about there being a cliff edge, and others have asked for a delay. This was first announced back in 2020 and was confirmed in the spring Budget of 2021 to be introduced this coming April, so I would say that there has been a substantial lead time into the introduction of this policy—it is simply not coming as a surprise.

There has been substantial consultation with industry and consideration of the cases that specific sectors have made about the challenges that the shift to paying tax at the same rate as standard diesel might mean for them. The Government have listened to those concerns and made specific exemptions where we can see very material impacts—for instance on the cost of goods and services to households. There is an exemption around some use of red diesel for the purposes of generating energy for those who are off-grid—there is a specific exemption relating to that.

Although the construction sector, and mining and quarrying, which my right hon. Friend the Member for East Yorkshire (Sir Greg Knight) mentioned, argued throughout the consultation process that they should be exempt, their case was simply not compelling against our overall objective to incentivise greener alternatives and greater fuel efficiency and to shift to a position, which can only make sense, where the appropriate level of tax is paid on such a polluting and harmful fuel to reflect the harm that using it causes. However, as I say, we did listen and consult substantially on this proposal; we heard among others from the construction sector and from business representatives in Northern Ireland. We did listen, but we had to make the decision that this is part of an overall direction of travel where we are committed to tackling climate change and the harmful effects of pollution.

Coronavirus Grant Schemes: Fraud

Jim Shannon Excerpts

Tuesday 18th January 2022 Commons Chamber

[John Glen]

As a former arts Minister who visited many of those organisations in the hon. Lady’s constituency in years past, I recognise the enormous contribution that creative industries make there and across the country. Of course, the grants we gave through the Department for Digital, Culture, Media and Sport, the recovery fund, and the support through local authorities got to many of those organisations. I stand here today not with a sense that nothing could have been done better, but recognising that there was a balancing act between speed of delivery of support to businesses, and complexity, with the delays that would inevitably have ensued. I am contrite about our not getting everything right, but I am also clear about the real dilemma that we faced at the time.

[Jim Shannon (Strangford) (DUP)]

I think everyone in this House recognises that Government stepped in and helped; I know my constituents recognise that, and we want to put that on record. HMRC stated in November that its taskforce was expected to recover some £1 billion in fraudulent or incorrect claims over the past two years and referred to some 23,000 investigations that had been opened. Only 25% of the money will of course be returned, so can the Minister clarify how that came to be, and what lessons have been learned for any future financial claims?

[John Glen]

As ever, I thank the hon. Gentleman for his question. I set out in my previous answers the dilemmas with respect to speed of delivery. However, HMRC has done a fantastic job in designing the schemes and standing them up quickly under enormous pressure. We will continue to work closely with HMRC and take its advice as we make decisions on how to tackle enduring fraud risk. More broadly, lessons can be learned about the design of future schemes.

Household Energy Bills: VAT

Jim Shannon Excerpts

Tuesday 11th January 2022 Commons Chamber

[Rachel Reeves]

That is levelling up in action, filling in the potholes at the Lord’s manor.

On this side of the House we want to keep bills low, which is why Labour is bringing forward this vote to reduce VAT on home energy bills to 0% for a year. It is why we would spread out the price increase that is about to hit bill payers because of the collapsing energy firms, and it is why we would help the squeezed middle, those on lower incomes and pensioners by increasing and expanding the warm homes discount to 9 million people. Our plan would save households £200 from their bills, and up to £600 in total for those who need it most. We would pay for this with a windfall tax on North sea oil and gas profits. These companies have profited massively because of exploding prices, so much so that some in the industry have referred to soaring energy prices as a “cash machine” for producers and their shareholders.

[Jim Shannon (Strangford) (DUP)]

I welcome the hon. Lady’s proposals but, although I welcome and support the green energy push as the only way forward, does she agree that the Government should, in these extreme circumstances, consider removing the green tax during the current fuel crisis to bring down prices and thereby prevent the £750 bill increases that each household will receive this year?

[Rachel Reeves]

I welcome the hon. Gentleman’s concern for reducing gas and electricity bills for his constituents and all our constituents, and we are willing to consider anything that can be done to keep bills low this year. Our proposals would take £200 off everybody’s bill and £600 off the bills of those who need support the most. Labour thinks it is only right that cash from the companies that have done well from this price spike should go back to hard-pressed families, yet this Government seem to think differently. In fact, the Education Secretary said on Sunday that he thinks that oil and gas companies are “struggling”, even when they are expected to report “near record” incomes this year. Struggling—really? The people struggling in our country right now are those seeing their bills going up and up.

Downing Street Garden Event

Jim Shannon Excerpts

Tuesday 11th January 2022 Commons Chamber

[Michael Ellis]

I cannot prejudge the investigation, but of course it is a source of considerable personal regret that anyone should suffer that imposition, inconvenience and distress, of which many examples have been given in the House. Of course that is a matter of personal regret. It is not appropriate to prejudge the investigation that is in progress. However, if the hon. Lady is asking me to express my regret about the tragedy that has befallen all those families who have suffered loss, and what have been grotesque invasions of their family life, I do so, unreservedly.

[Jim Shannon (Strangford) (DUP)]

In Northern Ireland last week, we reached the milestone of 3,000 deaths due to covid, which means that 3,000 families who followed the rules are grieving today. Those 3,000 who died included my mother-in-law, who died alone.

Will—[Interruption.] Will the Paymaster General confirm that there will be a full and complete disclosure to enable the police service to ascertain that all was done decently and within the regulations on that date and at that time? I am sorry, Mr Speaker.

[Michael Ellis]

I am very sorry for the hon. Member’s loss. He has asked me if the results of the investigation will be made public, and they will be.

Charter for Budget Responsibility and Welfare Cap

Jim Shannon Excerpts

Monday 10th January 2022 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I say respectfully to the Minister that I want to speak on the welfare cap and endorse the comments that others have made, using cases from my own constituency of Strangford. I see the issues very clearly. To be fair to the Minister, I absolutely understand the rationale behind capping the amount that the state spends on welfare. We cannot hold on to what we do not have in our hand, and we cannot give what is not ours to give. We do have to be responsible, but we also need to ensure that the funding that we are allocating to NHS reform and to the latest stages of the covid battle is adequate, while keeping an eye on the amount borrowed, which is beyond belief in my opinion. The hon. Member for North East Bedfordshire (Richard Fuller) said that it is hard to understand just how much money has had to be borrowed.

However, at the same time, it must be said that people are struggling and that they need more help, and that is what I am going to say on behalf of my constituents of Strangford. For many people, the withdrawal of the covid lifeline of the £20 uplift to universal credit has left them in a precarious situation. I can see that. I know that. Let me provide the evidential base for what I am saying; others have done so and I want to do the same. I know because the number of referrals to the food bank in my constituency has doubled. I spoke to the guys there just last week. I asked whether I was right in saying that the number of people applying to the food bank this year was greater than ever before. The answer was yes. I can see that statistically from my office. I can also see the levels of hardship and poverty to which the hon. Member for Glasgow East (David Linden) referred. People are struggling. They are the working poor. They are the people on low wages who are finding it incredibly difficult to make ends meet. I see families whose income has stayed the same and yet, in Northern Ireland, they are facing increased costs due to the Northern Ireland protocol. Let me give Members an idea of the prices that are being asked and where they are going—where they were before and where they are now.

One local business in my town is renowned for bargains. It carries a range of £1 products. The business owner informed me that his range of 600 £1 products now cost between £1.15 to £1.29 each. That is for bleach, dishcloths, toilet rolls—the things that people need every day. These are not luxury items; they are the essentials. The owner informs me that he has not made 1p more on these products. His income is up because prices are up, but his profits are down because people cannot afford to be buying his goods. The impact is felt even in a pound shop where the products are sold for only £1 or thereabouts.

There has been a 15% rise on groceries alone. Add into this a 30% gas rise and a 20% electric rise, and the problem is clear. This is why it is right and proper for this Government to review the welfare spending cap and then lift it due to the dire circumstances that working families and those who are ill and vulnerable find themselves. The right hon. Member for Hayes and Harlington (John McDonnell) referred to those who are disabled. Things are hard enough for those who are able-bodied, but it is even worse for the disabled.

I wish to pose a question to the Minister—I do it respectfully and he knows that. This is a genuine question and not a political point. Will the rise be sufficient to make a meaningful difference to families on the poverty line? Is the increase proposed today enough to do the job and to do it right? The cap set at the spring Budget 2020 was restated following some methodological changes. In 2024-25, it was set at £126.8 billion, with a margin of 3%. The new aim is that the cap in 2024-25 will be £138.3 billion, with a margin of 2%. Will that be enough for those who need it?

I know that all families in Northern Ireland are bearing the brunt of the intransigence of Brussels in its refusal to do the right thing and allow us to trade with the rest of the UK. This is not the debate on the Northern Ireland protocol, but its effects are felt in my constituency. There can be no discussion about people on the brink of the poverty line without acknowledging the effect of the protocol on the finances of every person who buys anything in Northern Ireland. This is about every mother unable to purchase gifts on Amazon and paying astronomical amounts for Christmas presents for their children as they were outside delivery areas, and every business owner paying more for products to cover the cost of the procedures. All those people show that Northern Ireland is much poorer financially for the protocol, as well as culturally.

I support the uplift of the welfare cap. I am no smarter than everybody else, but I understand the issue because my constituents tell me. I understand the reservations of those who do not want to borrow more, but we must get our local businesses back to earning and paying tax, which covid has removed. Wages for the working poor mean disposable income that is spent in the local economy, and people having enough to heat their homes and clean them. There is work to be done on the economy of this nation to encourage business and enterprise to tap into the global market. In the meantime, we must have enough money to spend on our vulnerable and needy. I have never seen anything quite like this year, and if this measure is needed as a first step, we must take that step today.