Oral Answers to Questions

Debate between Joanna Cherry and Steve Barclay

Tuesday 20th October 2020 Commons Chamber

[Steve Barclay]

[Joanna Cherry (Edinburgh South West) (SNP)]

Public Health Restrictions: Government Economic Support

Debate between Joanna Cherry and Steve Barclay

Tuesday 13th October 2020 Commons Chamber

[Steve Barclay]

I know that my hon. Friend is a strong champion of the aviation sector, not least because he and I have discussed the issue. I know he has championed it within Government. It is not the case that the aviation sector has not had support. I pointed earlier to the £8.5 billion through the corporate financing facility. In terms of Government focus on the sector, he is absolutely right that it is an important sector for the UK to focus on. We have the largest aviation network in Europe, the third largest in the world. My hon. Friend draws attention to an important sector, and that is why my right hon. Friend the Secretary of State for Transport has launched a global travel taskforce, and is working with the travel industry as part of that.

[Joanna Cherry (Edinburgh South West) (SNP)]

Local lockdowns affect a far wider range of businesses than just those that are forced to close. Food and drink suppliers such as Edinburgh Beer Factory in my constituency will be severely affected. Small and medium enterprises such as that are the backbone of the Scottish economy, so why has the Chancellor’s furlough replacement scheme so drastically slashed support for innovative and thriving businesses such as the Edinburgh Beer Factory?

[Steve Barclay]

It has not. It has provided a universal offer to all firms that are able to be open, for exactly the reason at the heart of her question. She is quite right that the displacement impact goes far beyond areas in tier 3 or tier 2. Businesses supplying them are affected. We had a question earlier about support for the fishing industry. One of the key challenges with the fishing industry was exactly the point to which she refers—they were supplying other businesses that had been affected, and that is why we put £10 million of support into that sector.

We have taken a universal approach. It is at odds, though, with the questions we often get in the House, which are very much about whether we can support this sector or that sector. We have taken a universal approach because we recognise that one cannot necessarily draw a geographical line around the suppliers of businesses that are impacted.

Protection of Jobs and Businesses

Debate between Joanna Cherry and Steve Barclay

Wednesday 9th September 2020 Commons Chamber

[Steve Barclay]

I will make some progress.

In addition to our support for businesses, we have provided nearly £40 billion of support through the tax system, with tax cuts, tax deferrals and the time to pay scheme. We have provided direct cash grants of £10,000 and £25,000 for small businesses and an extensive range of loan programmes, including dedicated investments for innovative tech firms through our Future Fund, and 100% Government guaranteed loans for the smallest businesses through the bounce back loan scheme. The shadow Chancellor said that she wanted the Government to listen, and bounce back loans are a good illustration of how the Government listened to concerns and changed the coronavirus business interruption loan scheme to include that additional measure. That scheme has benefited 1.1 million businesses. The House does not need to take just my word for it, because the chief economist at the CBI described the Chancellor as

“standing shoulder to shoulder with small businesses to help them through this crisis.”

[Joanna Cherry (Edinburgh South West) (SNP)]

The right hon. Gentleman mentioned the CBIL scheme, but many medium-sized and larger businesses in my constituency have struggled to get the loans they require. Lloyds Banking Group in particular has been poor at making positive lending decisions. What are the right hon. Gentleman and his Government doing about that?

[Steve Barclay]

I can give a clear and direct answer to that because, together with UK Finance, my hon. Friend the Economic Secretary to the Treasury has discussed bounce back loans, CBILS and larger business interruption loans. Those were targeted at up to £200 million for that mid-tier category of businesses, and I know from discussions with colleagues that a lot of regional businesses in that mid-tier category have been particularly impacted. The point is that this is about the package of Government schemes. Where there are individual constituency cases, we are, of course, always happy to look at them and UK Finance does a very good job in terms of its response.

I have set out the first phase. The second phase of the extraordinary support given relates to our plan for jobs. As part of protecting jobs, we have temporarily applied a reduced rate to VAT for tourism and hospitality, supporting over 150,000 businesses and protecting 2.4 million jobs. I do not know whether you, Mr Speaker, had an opportunity to benefit, but you will be familiar with the popular eat out to help out scheme, which has been a real success. The latest figures—only the one course, clearly, Mr Speaker—show that 100 million covers have been claimed, helping to support 130,000 businesses and protect almost 2 million jobs in a sector which, very seriously, has been particularly acutely hit by the covid pandemic.

Our plans also create new jobs, injecting new certainty and confidence in the housing market by increasing the stamp duty threshold to £500,000 for first-time buyers. That will drive growth and support across housebuilding and property sectors. It also builds on other schemes, such as creating green jobs through a £2 billion green homes grant, saving households hundreds of pounds a year on their energy bills, and through our £1 billion programme to make public buildings, including schools and hospitals, decarbonised. Together, they are all a part of the £640 billion capital investment in economic recovery, job creation and revitalising our national infrastructure over the next five years.

European Union (Withdrawal Agreement) Bill

Debate between Joanna Cherry and Steve Barclay

Consideration of Lords amendments & Ping Pong: House of Commons & Ping Pong
Wednesday 22nd January 2020 Commons Chamber

[Steve Barclay]

I always listen intently to the constructive points put by my right hon. Friend, my predecessor but one. I draw his attention to the fact that we are committed to consulting the senior judiciary on our approach to this matter, which is my right hon. Friend’s underlying point.

[Joanna Cherry (Edinburgh South West) (SNP)]

The Secretary of State says that he is going to consult the devolved Administrations. However, the problem is that at present the Government speak to them without taking any cognisance of their answers. Will he give me an assurance that when he consults with the devolved Administrations on this matter, he will not only listen but actually take their advice on board?

[Steve Barclay]

There was a meeting between Ministers and devolved Government representatives yesterday about taking on board the input of the devolved Administrations during our discussions on the next phase of negotiations. There have been instances in which my counterpart in the Scottish Government has paid tribute to one of the Ministers in the Department, for example, in the early consultation on the withdrawal agreement Bill. I appreciate that the hon. and learned Lady’s position will always be to desire more consultation and for the UK Government to take further note, but we are consulting and will continue to do so.

[Joanna Cherry]

I am grateful to the Secretary of State for giving way again. It is not that I desire more consultation, but that I want the British Government to take on board what the Scottish Government say—

[Joanna Cherry]

Effective consultation, as the hon. Gentleman says.

As the Secretary of State will know well, the difficulty is that the Cabinet Secretary Michael Russell, the most senior Scottish Government official with whom the British Government deal, is clear: he is listened to if he is lucky, but they never take his advice on board.

[Steve Barclay]

To say “never” contradicts comments that Mr Russell has himself made, but the hon. and learned Lady has made her point about consultation.

European Union (Withdrawal Agreement) Bill

Debate between Joanna Cherry and Steve Barclay

Committee stage & Committee: 1st sitting: House of Commons & Committee: 1st sitting
Tuesday 7th January 2020 Commons Chamber

[Steve Barclay]

We will debate at length tomorrow the provisions relating specifically to Northern Ireland, but there is a further sovereignty within the Bill in respect of Northern Ireland. I do not want to stray too far into that debate now, but there is a consent mechanism that pertains specifically to the Northern Ireland protocol, so there is a further sovereignty lock in that regard. However, that is a matter for the groupings that we will address tomorrow.

Turning to clause 3, we are confident that the list of so-called glosses set out in clause 2 works in all the cases that we have examined, and I pay tribute to the officials who have trawled the statute book in that regard. However, it is right that we, as a responsible Government, reserve the ability to nuance the impact of those technical changes should unforeseen issues arise during the implementation period. The power set out in clause 3 provides for that. The Bill gives five different applications for that power. Three relate to the glosses. The power can add to the glosses; it can make exceptions; and it can be used to make different provisions from the list, if for any reason we need to change a gloss in a specific case or set of cases. The power has two further applications: it can be used to tidy up the European Union (Withdrawal) Act 2018 and to cover any specific technical inoperabilities that may occur that have not been foreseen. It is appropriate, prudent and sensible that the Government are prepared in this regard, which is why those five elements are in the Bill.

[Joanna Cherry (Edinburgh South West) (SNP)]

Analysis by the Scottish Parliament Information Centre, which is the equivalent of the House of Commons Library and is therefore independent, notes that clause 3 empowers UK Ministers acting alone to make provision in devolved policy areas. The Government’s delegated powers memorandum states that they will not normally do so without the agreement of the relevant devolved Administration, but as the Secretary of State will be aware, the Sewel convention does not apply to delegated legislation. Does he therefore agree that this power shows that the Bill is indeed the power grab that the Scottish National party has always said it is? If it is not, why is it there at all?

[Steve Barclay]

The hon. and learned Lady is incorrect in saying that. First, this is an international agreement, which is a reserved matter—a matter for the United Kingdom. Secondly, these are glosses—technical issues—in terms of the tidying up that I set out, and they are tightly defined. Thirdly, the devolved elements are addressed by giving the devolved Assemblies the power, through clause 4, to do further glosses themselves.

[Joanna Cherry]

I am sorry, but the Secretary of State is simply wrong about that. On any legal analysis, it is quite clear that clause 3 gives UK Ministers acting alone the power to make regulations in relation to areas of devolved competence. I reiterate my question: why is that power there at all if the Government are not intending to use it to take powers away from the Scottish Parliament and other devolved Administrations?

[Steve Barclay]

Again, with great respect to the hon. and learned Lady, she is over-reaching in the interpretation that she is applying to clause 3. It is a technical provision that allows for technical changes—glosses to terminology —such as the example that I gave the Committee a moment ago of how EU citizens may be defined. The clause is for technical changes in unforeseen areas, rather than fundamental changes of powers. Indeed, we have given an equivalent power through clause 4, in respect of the ability of the devolved authorities to do exactly the same thing or very similar.

Clause 3 must stand part of the Bill to ensure that the statute book is maintained and that any unforeseen technical issues that arise in future are addressed. That is why clause 3 is required. It is not as the hon. and learned Lady characterises it; it is a technical provision for glosses for any issues that were unforeseen at the time of the Bill’s passage.

[Joanna Cherry]

Could I probe that a bit further? In clause 4, proposed new paragraph 11B specifically provides that Scottish Government—and indeed Welsh Government —Ministers cannot make any provision outwith devolved competence. However, there is no equivalent provision in clause 3 saying that the British Government cannot not use the powers to make regulations about devolved matters. If this is just technical, as the Secretary of State says, why will he not agree to include a similar qualification in relation to the British Government’s powers? If he will do so, could that perhaps be addressed in the House of Lords?

[Steve Barclay]

That is not something that I would urge the other place to address, because this is a provision to address unforeseen areas in which technical changes may be required in the tightly constrained areas set out in clause 3. The hon. and learned Lady turns to clause 4, which confers on the devolved authorities a broadly equivalent power to that set out in clause 3. Where legislating for the implementation period falls within devolved competences, it is right that legislative changes can be made by the devolved authorities, with which I am sure she would agree. Therefore, the change in clause 4 provides the devolved authorities with corresponding powers to those set out under proposed new section 8A(1) of the European Union (Withdrawal) Act 2018, as outlined in clause 3, so far as they are exercised within the devolved authorities’ competences.