Business Banking: Undesignated Client Accounts

Debate between Jim Shannon and Kelly Tolhurst

Wednesday 18th October 2023 Westminster Hall

[Kelly Tolhurst (Rochester and Strood) (Con)]

It is a pleasure to speak under your chairmanship, Mrs Cummins, on an issue that is affecting many businesses across a number of sectors. It is an issue that is extremely important to the businesses that are affected, and one that could have a significant impact on many businesses and their customers in future. I want to raise the situation faced by a number of small businesses with ongoing struggles to get access to the bank accounts that they need to carry out day-to-day functions and protect their clients’ customer funds.

Over the past couple of years, I have heard horror stories from a number of reputable and long-established companies that have been driven to the brink of closure as a result of how anti-money laundering regulations, particularly the Joint Money Laundering Steering Group guidelines, are being understood and implemented by UK banks. Many small businesses that deal with large quantities of client money use pooled client accounts, also known as undesignated client accounts.

I have a background in the marine industry, so I have a good understanding of, knowledge of and relationship with the industry. That is why, when the Association of Brokers and Yacht Agents reached out to me to highlight its concerns, I understood that it was a real issue and that I needed to work with the association, along with the Treasury and other relevant parties such as UK Finance and the Financial Conduct Authority, to try to resolve it. Yacht brokers are a very resilient bunch and are a key part of the UK’s marine industry, so when I hear that they are facing challenges that threaten their businesses, it is something of great concern that we must take seriously.

Although I initially raised this issue on behalf of the yacht broking industry, I have since learned that it is an issue that affects a number of other industries and sectors, including letting agents, estate agents, jewellers, care homes and even solicitors. I suspect it affects many more. I have had recent engagement with Propertymark, the professional body for property agents, which represents over 12,500 member branches in the UK, some of whom are being affected in the same way.

I will briefly explain why the yacht broking industry has come to use those types of accounts, and where we are up to with getting this resolved. In the early 2000s, the yacht broking industry faced a severe crisis when yacht broker and new boat dealer BA Peters went into liquidation. This created shockwaves throughout the industry, as BA Peters did not have a pooled client account in place. As a result, clients’ money was not protected when the company collapsed. Numerous individuals lost their deposits and the proceeds of sales, with some receiving only 23p for every £1 they were owed. It also resulted in a massive bill for the Insolvency Service to conduct a thorough investigation to try to identify client funds and into which of the many accounts they had been paid. This devastating experience exposed the vulnerability of client funds and the need for urgent safeguards.

[Jim Shannon (Strangford) (DUP)]

I congratulate the right hon. Lady on bringing forward this debate. We spoke beforehand. Does she agree that some banks are being accused of using the legislation she referred to as a way of closing accounts that are not profitable? I have several examples from back home in Strangford—I could read out two pages of them—of businesses being given no other reason for closure than this legislation. Does the right hon. Lady agree that the loophole must be closed?

[Kelly Tolhurst]

I thank the hon. Gentleman for his questions. Something is going on, and it is worrying. Banks are there to help us with our personal finances, but they are also a key part of how all businesses operate within the UK. I would be very disappointed if they were taking a cynical approach to potentially reduce costs of applications. However, having heard that some organisations are now being requested to implement a number of individual accounts, maybe there is a business case for them to want to administer 1,000 bank charges rather than just one.

In the aftermath of this, the yacht broking industry came together to ensure that such a calamity could never occur again. It was unanimously agreed that all yacht brokers should establish pooled client accounts as a standard practice. The PCAs were designed to protect client funds and enhance transparency in financial transactions. That became industry standard practice and is a prerequisite for any business joining an association such as ABYA. It is now a requirement by many professional indemnity insurance providers to hold client funds in these accounts. To formalise those efforts, brokers that set up PCAs with banks obtained letters confirming that funds held in those accounts were exclusively client funds and not part of the broker’s trading capital. Thus, they could not be used to offset business loans or overdrafts with that bank. That strengthened the protection of clients’ interests and returned confidence to the marine sector.

In 2009, it was made compulsory for anyone acting as an introducer for marine finance or settling marine finance to be registered with the Office of Fair Trading. That was a significant step towards regulating the industry and ensuring that financial transactions adhered to established standards.

In 2015, the Financial Conduct Authority was formed. The FCA introduced the FCA Handbook, taking over regulatory oversight. In 2016, the FCA confirmed that yacht brokers did not fall within the scope of the FCA handbook for holding PCAs, but did need to be registered for acting as an introducer for finance and insurance.

In 2020, significant changes occurred to the anti-money laundering regulations. That was when I first heard of the struggles that the industry were coming up against. Anti-money laundering legislation was introduced in 2017, as were updated Joint Money Laundering Steering Group guidelines, but notably they did not mention yacht brokers being excluded from FCA registration, or that their PCAs could be assessed using a simplified due diligence approach. That led to confusion and concern within the industry. As a result, major UK banks such as Lloyds, HSBC, Barclays and NatWest started to refuse to open PCAs for yacht brokers and threatened a number of businesses with the closure of their accounts.

Over the following months, I heard numerous stories from businesses within the industry that were fearful that, should they have their accounts closed, they would be unable to trade. Reputable businesses that had been trading for decades were suddenly faced with that terrifying prospect. Many of those yacht brokers are small independent family-run businesses. Contrary to what often comes to mind when yachts are mentioned, they are not large businesses trading in multimillion-pound superyachts and they do not have thousands of pounds in capital behind them; they tend to be long-established reputable small businesses operating in our coastal communities, where the marine industry may be a key part of the local economy, selling smaller boats for UK leisure.

Some of those family-run businesses—registered UK companies—operate across borders to support UK clients to buy, sell or hire their boats. Many of their clients are repeat customers because of the great experience they have encountered and the reassurance and confidence that their funds are safe.

All ABYA-member brokers are required to abide by strict professional standards to minimise fraud and money laundering. Yacht brokers are required to complete “know your customer” checks to verify clients’ official documentation such as driving licences, passports and utility bills, to ensure that the documents are valid and that the person is not on the anti-money laundering or politically exposed persons lists.

Purchasers receive a legally signed sale and purchase agreement, and all transactions are done by bank transfer, so there is a full audit trail of the money. ABYA yacht brokers do not accept any form of cash payment. As I mentioned, brokers undertake their own checks and specific sale and purchase agreements for every transaction, and they rely on UK and EU banks to transmit funds to the PCA from their own bona fide and validated clients.

Despite the checks that brokers carry out and the detailed recording of transactions, the fact that UK banks now consider yacht broking to be a high-risk business might imply that UK banks are failing their customers’ AML and politically exposed person checks before opening their client accounts.

In January 2022, ABYA and I held a crucial meeting with the Chief Secretary to the Treasury, who was then the Economic Secretary to the Treasury, and UK Finance. Following that meeting, he agreed to issue guidance allowing banks to simplify due diligence for opening and maintaining PCAs. That decision was made to try to temporarily ease the conflict between banks and account holders, and to encourage banks to keep accounts open while a comprehensive review of the anti-money laundering regulations was undertaken. This review was expected in December 2022 but, to the disappointment of both me and the industry, it was pushed back a year until December 2023. I am grateful to the Chief Secretary for the action and the interim guidance he provided in his previous role, but unfortunately that did not go far enough to prevent many banks from closing some of those accounts, which had a devastating impact on some of our small businesses.

In May 2020, we witnessed Barclays close the first pooled client account of a yacht broker because it was not registered with the FCA and part of its business involved cross-border transactions. Members will be unsurprised to learn that cross-border transactions are a fairly normal part of yacht sales, given the nature of boats. The stress that caused the company, including its potential collapse, and the impact on clients resulted in the director of that small UK-registered company suffering a mental illness for which, 18 months on, he is still receiving medical treatment and support.

That move set a worrying precedent. In May 2023, Barclays blocked the accounts of another company without appropriate notice, preventing the company from accessing its funds for three weeks. Not only that, but the bank transferred the funds from a European pooled client account into pounds sterling and placed the funds into the company’s account, without the authority of the clients whose funds were in the pooled client account. I understand that ABYA has asked the FCA to investigate that case, as it believes that Barclays had breached the provisions of the FCA handbook. As an aside, I have been made aware of another case in which such action by a UK bank has affected personal bank accounts, so I am concerned about how widespread that type of action is among some UK banks.

The FCA has acknowledged ABYA’s concern but has refused to conduct a full investigation and take appropriate action against Barclays, which I believe sets a dangerous precedent by endorsing Barclays’s actions and destabilising the security of PCAs for all industries. The FCA has advised ABYA that its members should report the incident to the financial ombudsman, which they have done, but they have been advised that it could take up to 18 months for it to report back.

To enable their business to continue trading, the directors of the affected company had to personally fund their clients’ sales and purchases, while Barclays sat on its client funds. That has also had a significant impact on the mental health of the directors of those businesses. Only last week, HSBC approached yacht brokers to ask them to stop using their pooled client accounts. I have recently been made aware that marine insurance companies, which have thousands of clients, are also being asked to cease using pooled client accounts.

The consequences of those developments extend beyond the yacht broking industry. They are a concerning precedent, which indicates that funds held in PCAs for clients may not be as secure as was previously believed. The situation has implications not only for the yacht industry but for lawyers, estate agents and care homes, as I have mentioned. Only last week, Propertymark members reported that Lloyds had threatened one of their members with account closure if they continued to use PCAs. That forced the property agent to open and hold individual client accounts for the rents and deposits of every landlord they worked for, and this particular agent was working with over 100 landlords.

ABYA has been at the forefront of the efforts to address the issue. It has tried to push various individuals who have influence over the matter to work together and with the industry to find short and long-term solutions. The Treasury has met and been in communication with ABYA’s chairman, Peter Norris, and has agreed to meet him again. For that, I am grateful. I am also grateful for the continued engagement I have received from the Treasury and its Ministers over the last 18 months. ABYA has worked to strengthen its code of practice and engage with banks consistently over the past couple of years. ABYA has candidly and consistently said that it will put in place whatever measures and changes to its code of conduct are necessary to ensure that banks have confidence to offer these services to ABYA members.

Since the FCA’s confirmation that yacht brokers do not need to register to hold PCAs, one bank has asked its customers to register as a high-value dealer with His Majesty’s Revenue and Customs for anti-money laundering purposes. ABYA is currently in consultation with HMRC to see whether it is possible to register as a high-value dealer, as such registrations normally apply only to businesses that deal in cash transactions of over £10,000 or €10,000. I understand that HMRC is questioning whether that is a necessary registration.

It has been a particularly tiring and frustrating few years for the industry, and ABYA and other industry representatives can only do so much. They have shown their willingness to find solutions, but we need the same willingness and drive to find a solution. As I have mentioned, these are often long-established small businesses or sole traders. Like any businesses, these companies are lifelines for their owners, employees and local economies, and they rarely have significant capital reserves to keep them afloat while seeking a resolution with the banks. It has been heartbreaking to hear the panic and distress that some of the businesses have been put through. Some business owners have been driven to the point of illness or, in some cases, have wanted to take their own life because of the stress of the potential loss of their business. As someone who ran a business prior to becoming an MP, I can totally empathise and understand how those business owners may be feeling.

Can the Minister confirm that there will be no more delay in bringing forward the consultation on the review of the anti-money laundering regulations? Can the Minister also assure me and those listening that he and the Treasury are engaging with the banking sector to represent the views of these small businesses, which are struggling to survive as a result of the actions that have been taken? Will he commit to urgently finding a short-term solution for this very real issue, which is having a devastating impact on people’s businesses and livelihoods?

Kinship Carers

Debate between Jim Shannon and Kelly Tolhurst

Tuesday 18th October 2022 Westminster Hall

[The Minister of State, Department for Education (Kelly Tolhurst)]

It is a great honour to be here today responding on behalf of the Government in my new role. I want to start by thanking the hon. Member for Twickenham (Munira Wilson) for securing what is an important debate. I agree 100%. Also, I have never had the opportunity to say this directly to him, but let me say in my role here that what the hon. Member for Denton and Reddish (Andrew Gwynne) and his wife Allison have done for their grandchild is just fantastic and to be commended. He is a fine example of how kinship can work, so well done.

All hon. Members who have joined today’s debate will agree that kinship carers are an untapped and undervalued asset. Their value to the children’s social care system and the lives of children up and down the country cannot be overstated. A fortnight ago, we celebrated national Kinship Care Week, which recognised the important role that such carers play in children’s lives. As part of those celebrations, we invited a group of kinship carers into the Department to hear their stories and inform the work we are doing to produce a children’s social care implementation strategy by the end of the year. I also wish to thank the APPG for the work it has done in this area, as well as charities such as Kinship and other organisations in the sector, which have been doing so much for this cohort of carers.

Hon. Members may be aware that I have a deep personal connection to this issue. My own sister is a social worker, and I have been an independent visitor for a looked-after child for many years. I have seen many children thrive in the care system but then face significant challenges when they reach the age of 18 and are often left with few loving relationships to sustain them throughout adulthood. Kinship care can be the antidote to a lifetime of isolation and loneliness. It allows young people to remain safely rooted within family networks and local communities, which provide us with the mental, emotional and physical support we all need. The need for family and community was acutely demonstrated during the recent covid-19 pandemic.

I am passionate about improving the lives of children. That is why I was honoured to become the Minister for Schools and Childhood last month. Supporting kinship care is a route to ensuring that all children have the opportunity to grow up in a loving, safe and stable environment and to maximise their potential. I welcome the opportunity to set out what we are doing as a Government to make that vision a reality.

This year, we have seen the publication of three reviews that, in their own way, call for a reset of the children’s social care system. As we know, they were the independent review of children’s social care, the national child safeguarding practice review into the murders of Arthur Labinjo-Hughes and Star Hobson and a report by the Competition and Markets Authority into the children’s social care market. In Prime Minister’s questions on 7 September, in response to the hon. Member for Dulwich and West Norwood (Helen Hayes), the Prime Minister told the House that the Government would publish a response to those landmark reviews before the end of the year. We are still committed to that timeline, and that has been a major part of my work since being appointed to the Department. Hon. Members will understand that I cannot give full details of the response today, but I am glad to be able to update the House on the progress so far.

First, we have established a national implementation board, which will include people with lived experience of the care system and leaders who have experience of implementing transformational change. The board will oversee a programme to reform children’s social care. Secondly, we have made early progress on commitments that the Government made when the independent review of children’s social care was published earlier this year. On Thursday 6 October, we launched the data and digital solutions fund, to help local authorities to unlock progress for children and families through the better use of technology. That includes a project to better understand data on kinship care, and to scope options for improving its use.

Perhaps most importantly in the context of this debate, the independent review of children’s social care shone a spotlight on successive Governments’ lack of focus on kinship care and the children who live with kinship carers. The review made seven specific recommendations, which sought to prioritise and improve support for kinship carers and children, and we will respond to those in the upcoming children’s social care implementation strategy. Although I cannot announce the detail of the response today, I can commit that kinship care will be front and centre. It will get the focus and backing from Government that it deserves in the years to come. Our response will address many of the issues raised by hon. Members today, including the hon. Member for Twickenham—hopefully including financial support, entitlements for kinship carers and the creation of a new definition of kinship care, which was a specific recommendation made by the review.

Kinship carers play a vital role in looking after children who cannot be cared for by their birth parents. There are over 150,000 children in England living in kinship care, many of whom would be in local authority care if those families had not stepped in. It is clear that more needs to be done to build a system in which every child’s right to a family is safeguarded. We must give all children an opportunity to grow up in a loving kinship home when that is in their best interests and when they cannot be safely looked after by their parents.

Some local authorities already make greater use of kinship care placements than others. The proportion of children in care placed in kinship foster care ranges from 4% in some local authorities to 39% in others. It cannot be right that children’s opportunities to live with their families are based on their postcode, and I will use the response to the care review to begin to address that disparity.

Children growing up in kinship care achieve better outcomes than their peers who grow up in care. That includes achieving better GCSE results on average, and having a greater chance of being in employment than children who grow up in foster or residential care.

[Jim Shannon]

In my contribution, I referred to two figures. Some 28% of those in kinship care are educationally challenged—to use that terminology—as against a national average of 6%, which is a real anomaly. The figures to which the Minister referred are greatly encouraging, but can she confirm what extra assistance is available for kinship carers who are looking after young children who are educationally challenged?

[Kelly Tolhurst]

I thank the hon. Gentleman for his question. We need also to look at this through the lens of our work in the Green Paper on special educational needs and disabilities and alternative provision. In my experience, this issue affects not just children in kinship arrangements but looked-after children. My focus throughout this whole process is achieving better outcomes for children. That will always be front and centre of all decisions and all information that I receive.

Despite the good outcomes for children in kinship care, they still lag behind those children who have never had involvement with children’s services. There is much more to do, with greater Government focus and close collaborative working with local authorities, schools and colleges. I am convinced that we can reduce that gap.

As hon. Members will no doubt recognise, the theme underpinning many of my points today is that we have made progress but far more remains to do. Last year we announced £1 million of new funding to deliver high-quality peer support groups for kinship carers across the country. We know that becoming a kinship carer for the first time is often a frightening and bewildering experience, as the hon. Member for Denton and Reddish illustrated.

The support of peers can act as a beacon to help people through. Those support groups are already building powerful communities and enabling kinship carers to connect with those in similar situations. The Government recently confirmed that we will invest a further £1 million next year to ensure that more than 100 peer support groups are established across the country by January 2024.

Hon. Members have raised with me, including in this debate, the issue of educational entitlement for children in kinship care. That area is important to me, and I recognise how much has been done, but there is more to do. Since 2018, virtual school heads and designated teachers have had a responsibility to promote the educational achievement of pupils who leave state care to live with an adopter or special guardian. Children who live with special guardians and were previously looked after by the state are eligible for the pupil premium, as the hon. Member for Twickenham outlined.

Kinship children who were not previously looked after but had been entitled to free school meals, at any point over the past six years, attract the pupil premium funding. We constantly review that and assess the effectiveness of the pupil premium, to ensure that it supports pupils facing the most disadvantage. Last year we consulted on changes to school admission codes to improve in-year admissions. Children in formal kinship care were in scope of those changes, which mean that kinship carers can secure an in-year school place for their child when they are unable to do so via other means. Those new measures came into force on 1 September 2021.

Finally, children living with special guardians who have previously been in state care can access therapeutic support via the adoption support fund, which has already been outlined. This year, we have also made that support available to those children who live with relatives under child arrangements orders. We are looking to improve local authorities’ engagement with the adoption support fund, to increase the proportion of eligible kinship carers who apply.

As hon. Members have eloquently outlined, I recognise the strain that kinship families are under, and will continue to work collaboratively with local areas to ensure that children, young people and families have access to the support they need to respond to the cost of living pressures. I am committed to supporting kinship carers. The independent review of children’s social care recommended a financial allowance for carers looking after children under a child arrangements order and those looking after children under a special guardianship order. My Department is considering each recommendation, and will respond by the end of the year.

Environment Bill

Debate between Jim Shannon and Kelly Tolhurst

Consideration of Lords message
Monday 8th November 2021 Commons Chamber

[Kelly Tolhurst (Rochester and Strood) (Con)]

I would very much like to thank the Minister for her clarity today. I represent a constituency that has a great river running through it. It is a river that I have sailed on all my life and also swum in all my life, albeit sometimes unintentionally. This whole debate around the sewage amendment is very personal to me because I am the daughter of a boatbuilder who often used to work on boats on his creek right next to raw sewage and water scum. Nobody on the Government Benches could deny that that kind of environment is totally disgusting.

Also, this year we saw an unprecedented period in which our beautiful Kent beaches were shut because of an absolute disaster involving the dispersal of sewage from the overflows. There is no doubt that water companies pumping sewage into our waterways in 2021 is disgusting. Two weeks ago, I supported the Duke of Wellington’s amendment because I wanted the Government to go as far as they could practically go in stopping this practice. I am very thankful for the work of the Minister and of my right hon. Friend the Member for Ludlow (Philip Dunne) and for the discussions that have gone on in these two weeks to ensure that we have been able to bring forward this amendment today. I will support the Government tonight, because I totally believe that this new duty, combined with other measures in the Bill, will be a major step towards ending the use of storm overflows.

I was disappointed by some of the comments made by the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard), for whom I have great respect. We need to recognise that this Government and these Ministers are the first to tackle the issue of sewage and storm overflows. No Government have done that previously, and I am proud that the Minister, who is so passionate about this issue, has worked incredibly hard to accommodate our worries and fears. The Environment Bill is a major piece of work for the protection and improvement of our environment. Make no mistake, these measures will cost the water companies and the bill payers, but I believe that they will bring the water companies into line so that we can stop this disgusting practice. I will be very happy to support the Minister and her team tonight.

[Jim Shannon]

It is a pleasure to speak in the debate, but I will not take too long. I want to ask the Minister a quick question. I am pleased to see what is coming forward in relation to single-use items and the conservation covenants, and I am pleased that those measures have all been passed. However, I still have a concern about the Office for Environmental Protection’s enforcement policy. Lords amendment 31 states:

“The OEP has complete discretion in the carrying out of its functions, including in—

(a) preparing its enforcement policy,

(b) exercising its enforcement functions, and

(c) preparing and publishing its budget.”

That has merit in my eyes, and I would be interested to hear the Government’s rationale as to why they believe it is unnecessary, as I believe that similar amendments were made in relation to Northern Ireland.

I am also gratified to learn that there is now a Government amendment in place for a duty to be enshrined in law to ensure that water companies secure a progressive reduction in the adverse impacts of discharges from storm overflows. That has been lacking for many years, and I have seen the devastating effects of discharge from storm overflows on homes that merit at least this form of protection. For too many years, the water companies have been doing the bare minimum. I seek the Minister’s confirmation that more will be done to ensure that the rivers and waterways around this great United Kingdom are protected, that more will be done than just the bare minimum, and that this will be the beginning of progress. We must all take our obligation to future generations more seriously. I often say, as others do, that we leave our environment for the generations that come after us, and for the sake of my grandchildren—and my great-grandchildren, when that time comes—we must ensure that the water companies step up to their agenda.

Flybe

Debate between Jim Shannon and Kelly Tolhurst

Thursday 5th March 2020 Commons Chamber

[Kelly Tolhurst]

I understand the hon. Gentleman’s question and his concerns. At the moment we do not have any plans to change the APD policy. Our policy is as per the Exchequer Secretary’s response to the Welsh Affairs Committee report in September 2019:

“The UK Government has carefully considered the evidence gathered by the Welsh Affairs Committee and your final report, alongside reports commissioned by the Welsh Government and Bristol Airport.”

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for her response. It is always important to hear her words and direction. In Northern Ireland the significance of Belfast City airport is greater than that of other airports as my hon. Friend the Member for Belfast East (Gavin Robinson) has said. There has been some indication that other airlines may be prepared to fill those gaps. Is there any indication whether that will happen? The UK is the only major European nation to see a decline in direct connectivity in each of the past two years and, given the sad news today, surely the Government must take urgent action to reduce APD at all levels.

[Kelly Tolhurst]

We will work as closely as we can with the airports and airlines serving Northern Ireland so that we can maintain that connectivity, because connectivity between Northern Ireland and the rest of the UK is important. The Chancellor has made a commitment to review APD, and I have already outlined our manifesto commitment to deliver on short-haul APD in Northern Ireland.

Bill Presented

Immigration and Social Security Co-ordination (EU Withdrawal) Bill

Presentation and First Reading (Standing Order No. 57)

Secretary Priti Patel, supported by the Prime Minister, the Chancellor of the Exchequer, Secretary Thérèse Coffey, Secretary Brandon Lewis, Justin Tomlinson and Kevin Foster, presented a Bill to make provision to end rights to free movement of persons under retained EU law and to repeal other retained EU law relating to immigration; to confer power to modify retained direct EU legislation relating to social security co-ordination; and for connected purposes.

Bill read the First time; to be read a Second time on Monday 9 March, and to be printed (Bill 104) with explanatory notes (Bill 104-EN).

Airport Expansion

Debate between Jim Shannon and Kelly Tolhurst

Monday 2nd March 2020 Commons Chamber

[Kelly Tolhurst]

I thank my hon. Friend for his absolute defence and representation of the south-west. He always talks about connectivity and about people in the south-west being able to move around the country. I have said a number of times at the Dispatch Box today that this Government are committed to airport expansion and levelling up. It is a core part of the Government’s commitment to delivering on our global connectivity and investing in our infrastructure, and also—and this is key—making sure that it can be delivered within our environmental obligations.

[Jim Shannon (Strangford) (DUP)]

May I wish the Minister well in her new position? I support a third runway at Heathrow, which can benefit the whole of the United Kingdom, and particularly Northern Ireland. The Prime Minister promised connectivity for all parts of the United Kingdom of Great Britain and Northern Ireland. The tried and proven flight connections between Heathrow and Belfast City airport could do even better, boosting the economy and creating more jobs, and it is vital that they are built on. Can the Minister confirm that airports in Northern Ireland will not be disadvantaged because of this decision?

[Kelly Tolhurst]

I thank the hon. Gentleman, and he will know that my predecessor was able to make a number of visits to the airports in Northern Ireland. He will also know that, in my role in Government, I will always take into consideration Northern Ireland, and the concerns and wants of businesses and consumers in Northern Ireland, in how we develop the strategy.

Oral Answers to Questions

Debate between Jim Shannon and Kelly Tolhurst

Tuesday 11th June 2019 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

Will the Minister outline what steps her Department has taken to ensure that free ATM services are retained in rural areas?

[Kelly Tolhurst]

Absolutely. Access to free cashpoints is an important part of our high streets and I personally, as a constituency MP, have made representations on that to the banking sector. However, through the post office network, we already have a great deal for offering cashpoints in post offices with the Bank of Ireland. I hope to make sure that Post Office Ltd extends that service. We continue to campaign and talk to the Treasury to make sure that we still offer those cashpoint services.

National Minimum Wage Naming Scheme

Debate between Jim Shannon and Kelly Tolhurst

Tuesday 4th June 2019 Commons Chamber

[Kelly Tolhurst]

The hon. Gentleman is a keen campaigner in the area of unpaid work trials. As I have said on many occasions, in most cases, unpaid work trials, if they are not a small trial that is conducive to the work environment, are illegal. On the back of his campaign and work that had been done before, we issued new guidance in December 2018. As I have said, where a worker feels that they have had a detriment, they are to report it to HMRC or ACAS. HMRC will investigate every complaint. We cannot just judge this issue on prosecutions. We need to judge it on where the detriment to the worker is, and then ensure that they get what is owed to them and that the employer is penalised.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for the response that she has given. What discussion has taken place with the Chancellor with regard to help for small businesses who struggle to make the payroll, and have a presence on the high street, in order to provide tax relief or other help so that the local economy is helped and that small businesses can survive and pay a correct and fair wage?

[Kelly Tolhurst]

I thank the hon. Gentleman for raising the issue of small businesses. It is absolutely true that small businesses are the backbone of our economy—99.6% of all UK businesses are small businesses, and is absolutely right that we are able to help them. A key part of that is making sure that, as the small business Minister, I make representations to the Chancellor and across Government on what small businesses need. The work that is being done on the review of naming and shaming is to make sure that when small employers find themselves in breach of the national minimum wage legislation, we are able to give them the right guidance and advice to enable them to meet their obligations. Many small employers want to make sure that they pay the national minimum wage, and above the national minimum wage. It is our duty not only to penalise but to aid and enable small businesses to meet their obligations.

Oral Answers to Questions

Debate between Jim Shannon and Kelly Tolhurst

Tuesday 30th April 2019 Commons Chamber

[Kelly Tolhurst]

The hon. Gentleman raises an important point about our high streets. Obviously, the Government play an important part in that respect in making decisions that affect our regions. I would like to reassure him about what we are doing for high streets and the retail sector. With the Retail Sector Council, we are looking at business costs and elements around skills and employment on the high street. We remain committed to making sure that our high streets remain the heart of our communities. I will make sure that I do everything in my capacity as Minister to achieve that.

[Jim Shannon (Strangford) (DUP)]

Can the Minister outline any initiatives that are being considered to offset high street rates to encourage businesses to not only trade online but have a presence in local high streets? Some of my constituents have done that, and they have been quite successful.

[Kelly Tolhurst]

The hon. Gentleman makes an important point with regard to traditional retail and online sales. I have spoken with the likes of Amazon and eBay, and one thing I have been extremely surprised at is that they have worked with small businesses that have started online but then invested in bricks-and-mortar retail outlets. We need to work to make sure we have a mixed economy, and I have outlined the work we are doing with the Retail Sector Council, particularly looking at business rates and other issues.

Oral Answers to Questions

Debate between Jim Shannon and Kelly Tolhurst

Tuesday 20th November 2018 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

What a challenge, Mr Speaker. Small and medium-sized enterprises create lots of employment throughout the whole United Kingdom of Great Britain and Northern Ireland. What is the Minister doing to improve broadband so that SMEs can improve and employ even more people?

[Kelly Tolhurst]

The hon. Gentleman is quite right that we need to improve broadband, which is an integral part of delivering our productivity challenge. We are making sure that businesses have in place all the infrastructure they need to thrive and survive.