British Bioethanol Industry

John Howell Excerpts

Wednesday 16th January 2019 Westminster Hall

[Nic Dakin]

I am drawing on the expertise in that “File on 4” programme. Obviously, any serious issues need to be looked at properly. Nobody wants the introduction of a new fuel to have disadvantages for people. It is very important that E5 remains available, as the right hon. Gentleman indicated.

The British bioethanol industry is perhaps not as widely known as it should be, but it is something of a British success story. Over £1 billion has been invested in the past decade, allowing British workers using British-grown produce to produce British bioethanol to help fuel British vehicles and feed British livestock, while reducing the UK’s carbon footprint and putting fewer pollutants into the atmosphere.

Until very recently, the UK had two of Europe’s biggest bioethanol plants: Ensus created a state-of-the-art facility on Teesside with an initial £250 investment in 2010, and Vivergo Fuels created a £400 million plant in Hull in 2013. Both distilled locally grown wheat to produce bioethanol, with protein-rich animal feed created as a by-product. The Ensus plant could produce 400 million litres of ethanol a year, and Vivergo Fuels 420 million litres. Each employed over 100 people directly as well as supporting a further 6,000 supply-chain jobs, including farmers and hauliers. The UK also has a further plant in Norfolk owned by British Sugar, which can produce 70 million litres a year.

As the Minister is well aware, Vivergo announced in September that it was closing its plant in Hull, and Ensus announced that it was pausing production at its plant on Teesside in November. It is not an overstatement to say the industry has collapsed in only a matter of months, and its future is dependent on the Government taking urgent action on the introduction of E10.

[John Howell (Henley) (Con)]

I want to know—the hon. Gentleman might be coming on to this—whether he has done a calculation of the effect on the savings on air pollution that these fuels will have. Maybe he could tell us what that is.

[Nic Dakin]

I will come on to that in due course. If the hon. Gentleman can be patient, I will come to it when I come it.

[John Howell]

I am desperately eager to know.

[Nic Dakin]

I know.

Long-term Capital for Business

John Howell Excerpts

Tuesday 15th January 2019 Westminster Hall

[Stephen Kerr (Stirling) (Con)]

I beg to move,

That this House has considered provision of long-term capital for business.

It is a pleasure to serve under your chairmanship, Mr Walker, and it is truly a privilege once again to lead a debate in Westminster Hall. Long-term capital for business is critical to the future of our economic wellbeing. Business knows business best, and in many ways the industry panel patient capital review was the genesis of the debate. That review, published in October 2017, was written by experienced and successful business leaders, and I commend it to hon. Members.

I recognise that the debate is somewhat overshadowed by what is happening in the main Chamber and what will transpire later this evening. That said, I cannot think of a better time to hold a debate on this subject. These are critical days for the future of our country, and we will be making critical decisions. It is incumbent on us to put the long-term interests of our country at the heart of the decisions we make. Our country, its people and those who come after us will not thank us if we make decisions based solely on narrow, short-term or selfish interests.

What is true for our country in our current predicament is also true when it pertains to the fortunes of business. Although there are undoubtedly risks in making strategic decisions for the long term, there are greater perils in considering the tactical only here and now, in looking for immediate returns and being unprepared to consider the bigger picture in a way that a long-term view necessitates. I am afraid that one life lesson that we must sadly keep learning is connected to what is often described as the law of the harvest: we can reap only what we are prepared to sow in the first place. The harvest comes in due season, but we must be prepared to be patient. I want us to reflect on the pitfalls of short-termism, and the missed opportunities and failures of a lack of a long-term vision.

As every colleague who ever worked with me in my previous business career would attest to, I am no accountant. However, it is insightful that, in accountancy terminology, a long-term investment is defined as an investment that is to be held for more than a single year, which hardly seems long term to me.

We have quite rightly heard a great deal about the UK productivity gap. Productivity is defined by the Office for National Statistics as the output per worker, output per job and output per hour, and it is ordinarily calculated by dividing the annualised GDP per capita by the average annual hours worked per employee. Countries with a track record of rising productivity tend to benefit from higher rates of growth and low inflation. It is the golden fleece of national economics, if I may describe it as such.

Productivity in the UK over the past few years has not been our best feature, and we rank poorly compared with other developed economies. We are currently at No. 17 in the world rankings, with our average hourly productivity across the economy being £17.37, compared with the Germans, who produce £23.30 per hour, the Americans, who produce £25.74 per hour, and the Danes, who produce £28.87 per hour.

Imagine for a moment that we were as productive as the most productive of the developed economies. It would transform our fortunes. We could pay ourselves more, and as a result of paying more in taxation we could invest many billions more in our NHS and other public services. The increased profitability in the private sector would also yield increased dividends, which in turn would be good news for our pension funds.

[John Howell (Henley) (Con)]

Has my hon. Friend looked at how many countries have a means of producing long-term capital, and at what sort of competitive advantage our having one would give us as a result?

[Stephen Kerr]

I am grateful to my hon. Friend for that timely intervention. That is the very point I will come on to. Let us examine the critical reason for our lack of national productivity, again comparing investment in our economy with that of the world’s leading economies. A good indicator is the level of gross fixed capital formation as percentage of GDP, which is the value of the acquisitions of new or existing fixed assets in the economy less the disposal of fixed assets. It is just a single measure.

In 2017—the most up-to-date World Bank figures are for 2017—we invested 16.8p for every £1 of GDP. The Chinese invested 41.8p for every £1 of their wealth. We also lag significantly behind developed western economies. For every £1 of GDP, Italy invests 17.5p, Poland 18p, Germany 20.3p, Denmark 20.4p, Spain 20.5p, France 22.5p, Finland 22.6p, Canada 23p, and Belgium 23.3p. That is but one measurement of investment, but it says something about future business activity and also about our confidence in the future. It is my firm belief that much of our productivity gap in this country is due to that indicative investment gap. We are simply not investing enough, and I contend that that is because there is an insufficiency of quality patient capital in our economy.

It is a much-worn anecdote that, while we come up with great ideas, breakthrough technologies and transformative product concepts, all of that good stuff ends up being commercialised somewhere else by someone else. As a young Scot, my pride in being a Scot was spurred by the great stories of our inventors, scientists and engineers. I believe it is a valid contention—one I am prepared to stand by—that the modern world was largely designed by the Scots. The litany of great Scottish contributors include James Watt, Alexander Graham Bell, John Logie Baird, James Chalmers and John Dunlop. I am delighted to give way at this point to the hon. Member for Strangford (Jim Shannon).

[Stephen Kerr]

A timely intervention, as ever, from the hon. Gentleman. These British Isles are a crucible for invention. The genius of the people of these islands, their creative free thinking and their imagining of the unimaginable has created whole new branches of sciences and technology and whole new categories of product. That native, creative, entrepreneurial spirit is alive and kicking.

Entrepreneurs are among us in abundance. The number of start-ups in this country is at an all-time high. Entrepreneurs are launching themselves and their ideas on to the high seas of enterprise in greater numbers than at any time in our past. Our universities and other research institutes are brimming with exceptional people having very bright ideas. Some of those ideas, if carefully nurtured through the commercialisation process, will not only continue to change the modern world for the better but will be the source of the wealth of this nation for generations to come. However, they must be nurtured, and that nurturing relies, in substantial part, on the availability of long-term patient capital.

All too often at present these small to medium-sized businesses fall prey to predators, who invest in them for the short term and then sell on without having made the necessary long-term commitment to bring the businesses to their full potential. I am not arguing against the importance of short-term investment or venture capitalism, but I argue that it is wrong to surrender our whole economy to that model of capital. Some 650,000 new companies were formed in Britain last year, but the number that scale up is relatively small. Some of those are lifestyle businesses that suit the people running them, but many business owners are driven by a sense of purpose—to build a growing, successful business—and they very often come up against the obstacle of the limited availability of patient capital.

[John Howell]

My hon. Friend is being very generous with his time. He may be about to come on to the digital industry. It is a major industry and such a fundamental part of our economy, and it needs investment, as I know from my own costs when I ran a company involved in that area.

[Stephen Kerr]

Anyone would think that my hon. Friend and I were working in some form of symbiosis, because the very next thing I wanted to say was that the need for investment is never more pertinent than in the technology sector, in which large American corporations invest speculatively and then buy companies when they reach a sufficient level of development. One reason that so many British businesses go that way is that they reach a stage where their access to affordable long-term capital dries up. This is not just about start-ups but about how a business accesses capital to be able to invest in new assets or capabilities.

Pubs: Business Rates

John Howell Excerpts

Tuesday 15th January 2019 Westminster Hall

[Mrs Anne Main (St Albans) (Con)]

I beg to move,

That this House has considered the effect of business rates on pubs.

It is a pleasure to serve under your chairmanship, Mr Bailey, and I am happy to have secured this important debate. Pubs, particularly our historic, independent pubs, add vibrancy and attractiveness to our high streets. They support tourism, help to encourage footfall and add hugely to our local economy. They are the lifeblood of my constituency and, I am sure, of many others. Pubs in St Albans generate over £40 million a year for our local economy; the industry employs 1,600 local people and pays around £20 million a year in wages. In St Albans and Herefordshire, we are net contributors to the Chancellor’s coffers. My constituents, particularly businesses in my constituency, are the Chancellor’s golden goose, and he therefore needs to listen carefully to ensure that that golden goose thrives.

I have been contacted by many local pub owners since this debate was announced, who have all shared with me their frustrations and concerns about the impact that business rates have had on their businesses. They are under huge pressure. The Government were absolutely right to target business rates as a way of helping small businesses, pubs and the high street as a whole, and the cut of 33% in rates for businesses with a rateable value of under £51,000 is a major step in the right direction. However, in some areas such as St Albans, that rate reform is not having the positive impact that the Chancellor was aiming for. Many landlords expressed the view that the new business rate formula, designed to help pubs, has had a perverse result, with a hike in business rates for their pubs. That hike could mean that they have to cut staff numbers, or even worse, close their businesses altogether.

[John Howell (Henley) (Con)]

I fully understand the point that my hon. Friend is making about business rates. I wonder whether she has calculated how much of the problem that pubs have is due to a change in drinking habits and why we go to pubs, and how much of it is actually due to business rates.

[Mrs Main]

I have not calculated that, but if my hon. Friend waits for the rest of my speech, he will hear how the huge hikes in business rates mean that pubs would have to sell so many extra drinks that they cannot possibly make up for those hikes. The fact that some people are declining to go to our pubs is one issue, but I am talking about successful, thriving pubs.

--- Later in debate ---

[John Howell]

Does my hon. Friend agree that there should be some business rate relief when a pub has been bought under the asset of community value scheme?

[Mrs Main]

Actually, we have tried to save pubs under the asset of community value scheme, and we have not been successful in St Albans, because the developer wins every time. I can see the point that my hon. Friend is making, but I am not going to take a diversion down too many tracks about the price of beer and community assets. Pubs and businesses in my constituency want a fair system that does not, as the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) has said, discriminate against a business because it is located in a high-value area.

Cat Welfare

John Howell Excerpts

Tuesday 11th December 2018 Westminster Hall

[Rehman Chishti]

I completely agree. The Secretary of State for Environment, Food and Rural Affairs has done some brilliant work, but we have an immense amount more to do. I also agree on the first point. The hon. Gentleman has an amazing wife, who made him become a cat lover and animal lover. I am not married yet, but if I get married, I will need somebody who likes cats, so that we can get a cat. Coming in and out of London, I do not have time to have a cat; we are talking about animal welfare, and cats must be given time. That is key. His point about supporting and doing the right thing as parliamentarians—not simply talking about something but pushing for the right framework to be put in place—is absolutely right.

[John Howell (Henley) (Con)]

Does my hon. Friend acknowledge the role that cats play in the social fabric of our society, particularly for the elderly or vulnerable? They play a vital role in providing the comfort and companionship that those people are looking for.

[Rehman Chishti]

My hon. Friend is absolutely right. He will have seen the PDSA’s PAW report, which talked about cats’ five welfare needs, one of which is companionship. We talk about loneliness and the Government doing the right thing and people having the required environment to be happy, and what cats and animals do is absolutely amazing, so he makes a valid point.

My first point is about the compulsory microchipping of cats. I spoke to my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs on 25 October. He said that the proposals in my presentation Bill on the compulsory microchipping of cats and ensuring that car accidents involving cats are reported, as they are when dogs are involved, were very reasonable, and that he would ask his civil servants to look into the matter. I take the Secretary of State at his word, and if he says that the proposals are very reasonable, it therefore means that to do the opposite would be very unreasonable.

In the light of the Secretary of State’s commitment and his saying that the proposals are very reasonable, I ask the Minister: are cats less important than dogs? A statutory instrument requiring dogs to be compulsorily microchipped was introduced in 2015, so there does not need to be primary legislation; such a change could be done through a statutory instrument. At the time it was said that such a change would be done with dogs first to see how the process worked, and that extending it further would then be looked at. That was in 2015. I know that the Government and Parliament work slowly, but three years to see how a system works is long enough.

I know the Minister. He and I have been here for the same amount of time—eight years. He is a wonderful man who cares passionately about animal welfare and doing the right thing, and he listens to what people have to say. A petition on change.org, “Help me to change the law for Cats involved in RTA’s”, received 377,000 signatures. A parliamentary petition about microchipping had 33,413 signatures. A petition to introduce compulsory microchip scanning for vets, rescues and authorities had 70,800 signatures. That demonstrates that people out there want Parliament to do the right thing, as the hon. Member for Strangford (Jim Shannon) says is our duty. Ministers can see the public interest in this area through the petitions put forward and the contributions of Members today and in previous debates.

Finance (No. 3) Bill

John Howell Excerpts

Committee: 1st sitting: House of Commons
Monday 19th November 2018 Commons Chamber

[Alex Burghart]

My hon. Friend quotes Cicero far better than I ever could, and I regret only that she did not do so in the original Latin—we can hope for such things next time.

[John Howell (Henley) (Con)]

I am not going to quote Cicero, although I am perfectly able to do so, but I think the debate needs to progress as it should do. Is the cut in stamp duty, particularly for shared ownership schemes, going to have a major impact? Has my hon. Friend done any assessment of how much that is going to affect the people who are trying so desperately hard to get on to the housing ladder in his constituency and in mine? Does he have anything to support this argument?

[Alex Burghart]

I have no doubt that a cut in stamp duty will help homebuyers across the country, in my hon. Friend’s constituency and in mine. I am lucky to represent a constituency in Essex, near London. Our area has much to recommend it, but the price of housing is high. We are going through a programme of home building, reflecting the Government’s broader ambitions. I know from knocking on doors and speaking to young people and their parents that it is difficult to get on that housing ladder. Every incremental improvement that this Government can make on things such as stamp duty helps to make the dream of home ownership a reality for those young people and their families.

--- Later in debate ---

[Rachel Maclean]

I am sorry, but as much as I enjoy debating with the hon. Gentleman, I will not take any more interventions because I do not have much time and I have taken one already.

We have heard a lot of philosophy tonight. I will not quote Cicero again, but I will draw the House’s attention to the Jewish philosopher Maimonides who said more than 2,000 years ago that the greatest form of social justice and charity is to start a business and to create jobs. Therefore, I reject the Opposition’s amendment on the entrepreneurs’ relief. However, we should definitely keep it under review, and I am absolutely sure that the Treasury will do so because we on the Government Benches want to ensure value for taxpayers’ money in all the things that we do. We recognise that we are spending not the Government’s money, but our constituents’ money, and we need to do that carefully.

I now wish to address the movement on the tax thresholds, because this relates to a fundamental Conservative value.

[John Howell]

Will my hon. Friend give way?

[Rachel Maclean]

I am sorry but I will not give way. I only have a couple of minutes left. Please forgive me.

The movement on the tax thresholds is a fundamental point at the heart of our Conservative philosophy, which is freedom of the individual to spend their own hard-earned money how they wish. What this Budget and this Finance Bill are doing is taking people out of tax. A basic rate taxpayer will pay £1,205 a year less than in 2010, when Labour left office, and that is, effectively, a pay rise for those people, leaving them with more money in their pockets.

Let me say this to the Opposition: they often talk about how they want people to pay more tax. Well, people are free to pay more tax voluntarily, but, surprisingly enough, that is not often what people do. What we do see as a result of our tax policy of lowering tax rates is a greater tax take coming into the Exchequer. We see that fundamental principle illustrated time and again because of the policies advocated and enacted by the Government. It is right to lower the tax thresholds for low and middle-income earners. In fact, the shadow Chancellor and the shadow Chief Secretary do not even oppose that; they agree that we should keep those tax thresholds low. We need look no further than corporation tax, as those receipts are up 50% to £53.6 billion because of the lowering of the rate that has happened under this Government. That is £53.6 billion more for this Government to spend on strong public services up and down the country.

--- Later in debate ---

[Mel Stride]

May I say what a pleasure it is to serve under your chairmanship, Dame Eleanor?

Let me first pick up on some of the comments made by the hon. Member for Aberdeen North (Kirsty Blackman), speaking from the Scottish National party Front Bench. She raised the issue of the higher rate threshold in clause 5 and asked whether the Bill might be organised in a slightly different manner. The most important thing is that we have put forward the information in a simple and straightforward way. As I am sure she is aware, the rise to the basic rate limit is dealt with in clause 5(1), with the amendment to £37,500 in the Income Tax Act 2007. That of course gets added to the personal allowance. The higher rate threshold is UK-wide for both dividends and savings income, which is what the amendment to the Income Tax Act deals with and focuses on.

Clause 5(2), Dame Eleanor—as I know you and other Members of the House will be aware, having read this Bill in significant detail—deals with the rise in the personal allowance to £12,500, which once again is a UK-wide scope. Therefore, it is appropriate that it is in a clause that is not subject to the provisions of English votes for English laws.

Clause 5(4)—I notice the hon. Member for Aberdeen North looking at this quite closely—also breaks the link between the personal allowance and the national minimum wage, which is once again a UK-wide measure. On the hon. Lady’s very specific point, it is appropriate that all these measures are contained within one clause.

The hon. Lady also mentioned the national minimum wage and the level at which it is set for those aged 16 to 24. She will know that a review is currently being conducted by the Low Pay Commission, which will report in spring 2019, although the commission has said in the past that increases up towards the level of the national living wage—which is what I think the hon. Lady is seeking—may have a detrimental impact on the level of employment. Of course, this Government have overseen a halving of the level of youth unemployment since 2010, something of which we are justly proud.

The hon. Lady brought up the issue of raising the personal allowance to £12,750, in line with her party’s new clause 19. The important point is that we have been able to raise the personal allowance from around £6,500 in 2010 right the way up to £12,500, taking about 4 million of the lowest paid out of tax altogether. That comes at huge cost, and the estimated cost of going still further, to the level that hon. Lady suggests, would be of the order of £1.5 billion. For that reason, we believe that the very significant rise that we have put in place is proportionate and should be welcomed by many of the lowest income earners, whom the hon. Lady quite rightly seeks to protect.

The hon. Lady raised the issue of poverty, as did a number of other hon. and right hon. Members. I remind the Committee that there are 1 million fewer people living in absolute poverty than in 2010, including 300,000 children. It is also the case that there are two thirds of a million fewer children living in workless households. We have heard a great deal about the importance of employment and our record on employment, with virtually the highest level of employment in our history and the lowest level of unemployment since the mid-1970s. Work is a very important route out of poverty and we have a strong record in that respect.

A number of Members mentioned entrepreneurs’ relief. The hon. Member for Aberdeen North suggested that the shift from the one-year to the two-year qualifying condition might actually impose a hurdle to entrepreneurship—I think that was the expression she used—but we see it as important that we at least have entrepreneurs who are not in and out within a period of 12 months, but who are actually there for the longer term. Of course, the Labour party seems to be entirely hostile to the whole notion of an entrepreneurs’ relief, which is not surprising given the general approach it seems to take towards business.

[John Howell]

Will my right hon. Friend comment on the fact that entrepreneurs’ relief is aimed at securing longer-term investment? This country has been very used to short-term investment, but it has done nothing for us. We need people to invest in the longer term.

[Mel Stride]

My hon. Friend is exactly right. This is why we also have the enterprise investment scheme and the seed enterprise investment scheme, and why we have made this change to entrepreneurs’ relief. An interesting fact is that of those who benefit from the entrepreneurs’ relief, around a third go on to reinvest in further businesses, so those tax savings are being reinvested in further economic activity.

I turn to the comments of the hon. Member for Bootle (Peter Dowd), who made a number of important points—or, should I say, he made a number of points about important matters? That might be slightly more to the point. However, I agree entirely with my hon. Friend the Member for Brentwood and Ongar (Alex Burghart), who is no longer in his place; I have a great affection for the shadow Minister, particularly the Plutarch and Cicero quotes of which he is most fond. In fact, I will share one with him that does not apply to him in any way, of course:

“Any man can make mistakes, but only a fool persists in his error.”

I think that is probably more appropriate to the leader of his party than to the hon. Gentleman himself.

The hon. Gentleman raised the issues of the amount of tax burden shouldered by the wealthiest in the country. I remind him that under this Government the wealthiest 1% pay a full 28% of all income tax; it was about 24% when the Labour party was in power. As my hon. Friend the Member for Gloucester (Richard Graham) pointed out, the lowest 20% of earners have benefited the most since 2010, from the combination of changes to tax, the national living wage and other factors.

The hon. Gentleman mentioned the UN rapporteur and my appearance on Channel 4. I have to point out that the rapporteur produced, I think, a 24-page report based on around two weeks’ fact-finding in this country. The Government’s view is that the conclusions drawn were disproportionate to say the least. The hon. Gentleman suggested that I did not answer the questions put to me on that particular occasion, which I dispute. However, it is indisputable that he failed to answer the question of my hon. Friend the Member for Cheltenham (Alex Chalk) as to exactly what the Opposition would do with the personal allowance, given the exception that they are taking to our tax measures in the Budget.

Local Sporting Heroes

John Howell Excerpts

Tuesday 13th November 2018 Westminster Hall

[Nick Smith]

I am very pleased to say what a brilliant athlete, rugby player, journalist and schoolteacher Ken Jones was; he was renowned across the valleys for his rugby pedigree. Today, however, I will talk about Steve Jones, from Blaenau Gwent.

The unusual thing about Steve is that he is a world-class, record-breaking athlete who hardly anyone knows about. He is one of the most successful long-distance runners ever produced in our country. Despite his multiple achievements, however, many people know little about this British athletics hero. So I will start telling them today.

Steve is a Blaenau Gwent-made and self-trained sporting hero. The son of a steelworker, he grew up in Ebbw Vale. Steve had been a cross-country runner, but it was while he was a technician with the Royal Air Force that he really began running competitively. He pulled himself up by his bootstraps and he reminds me of what Michael Parkinson has just said about George Best—namely, that while Best was the greatest player he has ever seen:

“He did not arrive as the complete player; he made himself one.”

Steve made himself the complete runner.

Training in what spare time he had, Steve began working his way up and competing, all the while serving his country full-time. After a ligament injury put his leg in a cast, Steve soldiered on, saying later:

“If anybody says I can’t do it, I end up doing it...I don’t like to be told that.”

That was an understatement. The tragic death of Steve’s dad in 1978 had a major impact on his career. His dad had been extremely proud of his achievements and, after his dad’s death, Steve wanted to push himself even further, and to be the best.

Steve burst into the top tier of world athletics in 1984 by completing the Chicago marathon in just over two hours, beating a reigning Olympic champion in the process. He set a British marathon record that stood for 33 years, until it was broken just this April by Sir Mo Farah.

In the years following Chicago and after receiving generous sponsorship from Reebok, Steve racked up further first-place marathon finishes in London in 1985, in New York in 1988 and in Toronto in 1992. Taken together, his achievements add up to a remarkable contribution to British athletics.

Now 63, Steve works as a running coach in Colorado, supporting athletes from across the world. In Blaenau Gwent, his legacy is seen every weekend in our local parkrun and other initiatives that Tredegar’s Parc Bryn Bach Running Club uses to encourage new runners; I am a newish member of the club. It has also been leading the charge for proper recognition for Steve. A local dynamo, Lee Aherne, has launched a campaign to build a statue of Steve, which has already raised more than £2,000.

The key issue is this: we have this great man, who accomplished incredible things and inspires people to follow in his footsteps, but he is simply nowhere near as widely recognised as he should be. Steve’s achievements are a great source of pride for many in Blaenau Gwent, but he is barely known outside our borough.

[John Howell (Henley) (Con)]

On that point, as I come from Henley it will be no surprise if I mention our rowers, many of whom are—like the hero the hon. Gentleman is talking about—not widely recognised outside the town, even though they participated in an international sport. Will he join me in celebrating the achievement of all these local heroes, particularly in attracting young people to their sport and giving them something to live for?

[Nick Smith]

I am very pleased to support the commendation that has just been made.

There have been other positive steps in Blaenau Gwent, such as installing plaques for some of our other sporting heroes, notably Spurs football legend Ron Burgess. Over the next few months, I will write to the Welsh Government, the Cabinet Office and Welsh Athletics to seek proper recognition of Steve’s substantial contribution to sport.

However, I also want to look at one of the best ways to do justice to the record of local sporting heroes—harnessing their achievements to improve public health. Groups such as the Blaenau Gwent Sole Sisters and the Parc Bryn Bach Running Club already do a great job with the Couch to 5k programme and parkrun, which are coming on in leaps and bounds. However, I think that Steve getting the recognition he deserves would inspire even more people to participate.

What do I think the Government could do more of? First, it is important to assess the criteria for the official UK Government honours system, to make sure that people such as Steve are not overlooked. Understandably, many honours are awarded to people who have recently won a major competition, and some are awarded to athletes who are still competing, which is great. However, it is also important to recognise those who have made a sizeable contribution during their career—local heroes, whose good will keeps on giving.

Secondly, successes in local sport need to be given due credit. There is space for awards for services to sport at the devolved or local level, with a project similar to Australia’s Local Sports Stars scheme, which seems to be a tremendous initiative.

Thirdly, we need to encourage links between our local sporting heroes and key public health initiatives. Local sporting heroes know the areas they come from and their communities, so they are ideally placed to continue encouraging others.

Some Welsh athletics stars came to our parkrun recently to celebrate the 70th anniversary of the NHS and they went down a storm—the response was absolutely fantastic—so I ask the Government to consider engaging local sporting heroes as part of the childhood obesity plan’s local partnerships, which are in train. I will suggest a similar approach in my discussions with the Welsh Government and my own local authority.

Great sporting achievements of any era show us what is possible, whether they are Steve’s marathon records, Mark Colbourne’s Paralympic cycling achievements or Mike Ruddock’s delivery of a grand slam as Wales rugby coach—we can all be inspired by the examples that such sports people have set—but when we see others reaching the pinnacle in any field, if they are from our home town, the thought “that could be me” strikes home a bit harder.

I hope everyone here has learnt a little more about Steve, his achievements and how he continues to make a great contribution to Blaenau Gwent, and I bet that other people here today have their own sporting heroes to celebrate. Finally, I would like to hear other suggestions on how we could build on the good work that these local sportsmen and women have done.

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[John Howell (Henley) (Con)]

It is a pleasure to serve under your chairmanship, Mr Pritchard. I was not going to participate in this debate, but I will do for a short moment. Each year in Henley we have something called the Regatta for the Disabled, which has been going on for the past 10 or 11 years. I have gone along and supported it every year. I will come on to the sporting hero associated with the regatta in a moment.

The regatta has a great impact on disabled people, showing them that the river is theirs; that it belongs to everyone. There is a good deal of fun about the day. I do a bit of the commentating on the dragon boat races, which is something to behold, but what I want to mention is that one of the really important people in the whole regatta is Helene Raynsford.

Helene is a world-class rowing champion and also a Paralympic champion. Her involvement in the regatta means a great deal to all of us who are involved, and it sets an absolutely brilliant example to everyone of what can be achieved despite a disability. It has always been a great pleasure to welcome Helene and to participate with her during the day. I offer her up as a local sporting champion and pay tribute to the enormous role she plays.

--- Later in debate ---

[Dr Rosena Allin-Khan (Tooting) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Pritchard. I thank my hon. Friend the Member for Blaenau Gwent (Nick Smith) for securing this important opportunity to discuss the role played by sporting heroes in our local communities.

It will surprise no one to hear that as shadow Minister for Sport, I spend a lot of time thinking about the role that sportspeople play in our daily lives and society. In the past, it might have been considered self-explanatory that “Sportspeople play sports, people come and watch said sports, and society benefits by having sports entertainment—and that is that.” Occasionally sports stars would break the mould—people such as Muhammad Ali or Billie Jean King, who challenged authority and told truth to power—but they were few and far between. If we asked someone today about the role sportspeople can play in society, I think the answer would be very different. We live in a period where sports stars are doing more than ever before to break the mould, to inspire a sense of possibility in our young people, and to educate. In America, LeBron James, an athlete at the top of his game, sets up public schools for underprivileged children.

Sports heroes are vital for society in general, but especially for the next generation, and it is important that we recognise that. They truly can make a path for others to follow. Representation matters. For many young people, seeing people who look like them, sound them like and grew up in their communities succeed in such high-profile arenas is inspiring. Nicola Adams, a normal young woman from Leeds, grew up to be our first woman boxing champion in Olympic history. We should think about how important it is for people to see themselves represented in these incredibly public settings—to see women of colour achieve so much. Women, particularly women of colour, are often told to stay in our lane, but to borrow the phrase of Elizabeth Uviebinené and Yomi Adegoke, Nicola showed that we should not stay in our lane; we should slay in our lane.

I firmly believe that the only limits that truly exist are the ones we put on ourselves. Sporting stars today do so much to personify that theme, especially for the local communities they represent. It is one thing for someone to see someone like them make it, but it is another thing entirely if they grew up in the same place. My constituency of Tooting has its fair share of sporting talent. Frank Bruno was born in Wandsworth and boxed in Earlsfield. Darren Bent was born in St George’s Hospital, where I still work as a doctor. Commonwealth heavyweight title-holder Joe Joyce boxes at Earlsfield boxing club. We are definitely very lucky with our plethora of local sports stars.

Today I would like to draw attention to one particular type of local sporting hero—the kind who almost never makes it into the headlines and never gets the medals or accolades, but is just as important to our local communities. I am talking about the parents who drive their kids to matches, meets and practices every weekend. I am talking about brothers and sisters who take their little brothers and sisters to the park for a kickabout. I am talking about people who volunteer for sports clubs, not only coaching, but offering a safe space that people can come to, where young people can be themselves and share their problems. I am talking about people like Sid and Clare Khan, who run Earlsfield boxing club—clearly Tooting has a thing for over-achieving Khans—and Winston and Natasha, who run Balham boxing club.

As my hon. Friend the Member for Islwyn (Chris Evans) rightly said, boxing clubs in the heart of our communities can change lives. Sid, Clare, Winston and Natasha perform vital roles as mentors and friends to young people who might otherwise not have reliable adult role models in their life. I still box at Balham boxing club. I sit ringside as the boxing doctor during shows. I know the difference the clubs can make. We can talk about it in these rooms and go home to our wonderful, comfortable lives, but for many young people, the boxing club is the only place they can find someone to trust. They can be the only place where they can go to find solace, speak their truth and admit that they might have a mental health problem, or that they are about to join a gang. That is the case for any sporting facility, not just boxing clubs. We have to recognise the role such facilities can play.

The people in the clubs are mentors. They spot mental health issues and problems at home. They provide guidance, and they often offer a confidential conversation where there is no other. I have seen with my own eyes how young people who probably would not talk to their parents or teachers instead come to someone like Winston at Balham boxing club. These people are local sporting heroes. There are people like Phil and the team at Tooting and Mitcham football club. When their nearby rivals Dulwich Hamlet had their ground seized by greedy property developers and their entire club seemed to be hanging by a thread, Phil offered Tooting and Mitcham’s ground. Within a week, Dulwich Hamlet had agreed terms and were able to continue playing until the dispute with their property developers was resolved.

[John Howell]

I want to pick up on the hon. Lady’s reference to boxing clubs. I have a very poor village in my constituency that has a boxing club. It plays a fantastic role in providing some organisation for the young people who live there. The only thing one has to bear in mind is that last time I went there, I sat next to the ring, and I had to put my hand over my wine glass to stop blood from spurting into it after one boxer punched another completely on the nose.

[Dr Allin-Khan]

I thank the hon. Gentleman for pointing out the dangers of mixing sweat and blood, and of sitting ringside. He sounds like a true sporting hero himself for being there and supporting his local club, which I am sure was very grateful.

As we know from the contributions from my hon. Friend the Member for Scunthorpe (Nic Dakin) and the hon. Member for Paisley and Renfrewshire North (Gavin Newlands), this country has a rich history of sporting heroes; nowhere was that better demonstrated than at the 2012 Olympics, where Team GB had its best Olympics since 1908. That is something to be proud of. So many stars were made in that summer that it is hard to keep track of them.

We can speak all day long about the sporting heroes we hold dear, but we must also speak about the legacy that we leave behind as representatives of our communities. The proportion of over-16s playing sport for at least 30 minutes each week remains virtually unchanged since 2005. Teenagers are being taught almost 35,000 fewer hours of physical education in school. Hundreds of sports facilities close each year, and local authority spending in sport has been rapidly cut under this Government. Sporting heroes are important; sports facilities are vital.

I welcome the Minister to her post, and look forward to working with her in future. I hope that she will use today’s debate as an opportunity to show in concrete terms that the Government will prioritise sport. We owe it to our sporting heroes, and to the people we represent.

Five Year Forward View for Mental Health

John Howell Excerpts

Tuesday 30th October 2018 Westminster Hall

[Jeff Smith]

The hon. Gentleman has great experience and knowledge of those issues and makes an important point. He has anticipated some of the comments I will make and I strongly agree with him.

[John Howell (Henley) (Con)]

We, as MPs, are among the first to come across the sort of patients the hon. Gentleman is talking about. Does he agree that training ought to be provided for MPs, so that we know how to deal with those people when they appear at our surgeries?

[Jeff Smith]

That is an excellent point; some training packages are available for MPs’ staff. I encourage all colleagues to take advantage of that.

The vast majority of people severely affected by mental illness will receive support within a community mental health team, which is the type of core service that provides help to around 700,000 people in England, often with quite complex needs. Although some specialist services have benefited from additional funding and targets, core services for adults severely affected by mental illness have stood still. Core community services did not receive any funding under the five year forward view, and we found that only £50 million was allocated to other core services nationally.

Eating Disorders

John Howell Excerpts

Tuesday 16th October 2018 Westminster Hall

[Wera Hobhouse]

Across the board, and particularly when it comes to public health, prevention is so much better than picking up the pieces afterwards. We can save so much money if we do something early rather than only intervening when somebody is already in crisis. That is particularly true for mental health, and the challenge here is that eating disorders are still not very well understood.

[John Howell (Henley) (Con)]

I have a personal interest in this subject. A close member of my family suffered from bulimia. What we found most important was the support provided by the family network. That, above anything else that could be provided, was what carried the family member through to a positive conclusion.

[Wera Hobhouse]

Anybody who has had a close family member in such a situation will understand the hon. Gentleman’s point, but families are often pretty helpless too, if they do not really understand what can be done and how they can help their family member to get out of the problem. It is a form of addiction, and like with any other addiction, family members are co-sufferers. They want to help but do not really understand the deep-seated problems. Family members are important, but we need the professionals and their understanding to help families get through together. The hon. Gentleman is absolutely right that families are incredibly important.

Eating disorders define large periods of people’s lives. How can we shorten that time? We need people to be okay with saying, “I’m not okay.” We need to tackle the stigma around eating disorders, and the message needs to get through to a lot of people. More than 1 million people in the UK have an eating disorder; three quarters are women and one quarter are men. That is a very large number, plus there are the friends and family who suffer with them. So many people with conditions such as anorexia and bulimia blame themselves. It is not their fault and we need to make sure that they know that.

When I announced on Twitter that I was holding this debate, I received a wave of emotional responses and personal stories. Yesterday, a local doctor dropped into my office a book that she had written, which described her fight with eating disorders since the age of 13. That shows how early it can start.

I also got an email from a young woman called Lorna, who experienced serious anorexia while studying in my constituency in Bath. This is what she told me:

“I ended up with an initial diagnosis of anxiety and depression, and was started on antidepressants. I suspended my studies and worked as a carer in my local village, living at home with my mum and brother. People I’d known all my life began commenting on the weight I’d lost, and telling me how good I looked. This is when my anorexia began to take full hold.

I stopped eating completely, lying to my mum and saying I’d eaten at work, began over-exercising compulsively, and remember pacing the corridors at work to burn extra calories. I became obsessed. I weighed myself up to 12 times a day.

My mum was terrified, and didn’t know what to do. Eventually she came with me to my GP and I told him everything. I told him I was petrified of putting on weight, exercising excessively and skipping nearly every meal. His response was ‘Oh, that’ll be your antidepressants.’ He took me off a high dose, there and then. Cold turkey.

Each time...I told him how out of control I felt with my eating. He’d force me onto the scales, shaking and crying, and then tell me my BMI was ‘healthy’ and I didn’t meet the diagnostic criteria. I was devastated. I had opened up and was denied help. I never got diagnosed with anorexia, despite going from a size 16 to a size 8 in less than a year.

I went through the monthly humiliation of being dragged onto scales and told I wasn’t thin enough to be helped yet. And not having that formal diagnosis is hard. When I tell people I was anorexic, they never quite believe me, as even doctors didn’t. I think they always assume I was being dramatic, or ‘it wasn’t that bad then’. Today, I am weight-restored, although struggle with now being overweight.

It took me 3 years to recover. 3 years of misery and obsession. I was dangerously unwell, but not sick enough to get an ounce of support.”

When I read that story, I am amazed by how brave Lorna is. She was brave to ask for treatment and even braver to put her trust into the medical system a second time, even after she did not receive the treatment that she really needed. She was very brave to tell her story. Lorna has gone on to campaign for proper treatment for eating disorders. She is here in the Chamber, and I want to thank her personally for letting me share her story—Lorna, thank you. I am so sorry that you had to go through such an awful experience. I know your words will help others, and I desperately hope that together we can improve the treatment and care of those with eating disorders and end the stigma for good.

We cannot ignore the medical failings in Lorna’s story. We need to use them and the figures that prove that Lorna’s experience is not an isolated case. First, we need to break the stereotype that all people with eating disorders are underweight. Hope Virgo’s campaign to “Dump the Scales” was also a response to being told that she was not thin enough to receive support. She is calling on the Government properly to implement the eating disorder guidance delivered by clinicians, a call that I strongly echo along with over 60,000 signatories to her petition. To judge an eating disorder simply by BMI is not good enough; rather, we need to look at the trend and rapidity of weight loss and the story that sufferers tell.

We know that the Department of Health and Social Care knows this is an issue. We know that if we fail to take action, people not only suffer but, in some cases, lose their lives. When questioned on waiting times, the Minister often says that the Government do have targets, but he ignores the fact—or he does not tell us—that there is none for adult services. On average, adults wait twice as long as people under the age of 19. The Government must do everything to remove barriers to treatment. In particular, young adults are incredibly vulnerable. At our autumn conference, the Lib Dems called for the Government to ensure that all young people can access young people’s mental health services up to the age of 25, because from the age of 18 many young adults move out of home, go into further education or start their first job, all of which can be stressful when they no longer have support from home. We must also introduce waiting times for adults to ensure that they receive help as quickly as possible.

The Minister is likely to mention that in 2015 the Government allocated £30 million of extra resources per year for five years to improve the NHS treatment of eating disorders for teenagers. However, in some cases that is not reaching the frontline, because the funding is not ring-fenced and can be diverted to other priorities.

--- Later in debate ---

[Matt Warman (Boston and Skegness) (Con)]

I thank you, Sir Roger, and congratulate the hon. Member for Bath (Wera Hobhouse) on securing this important debate. She began, rightly, by saying that eating disorders are about so much more than stigma. It is right that we focus on treatment, because eating disorders—as all of us in the room know—are conditions that are often dismissed initially as girls trying to look like celebrities. They often end with a third of sufferers recovering, but a third of sufferers live with them for the rest of their lives and a third do not make it at all. Those figures are truly shocking and would be shocking for any condition, whether mental or physical.

The stigma arising from eating disorders is not solely about looking slim. It is about the pervasive effect of that eating disorder. It is a condition that quickly stops people being able to function in the way that they would wish to function. It a condition that stops people leaving the house. People end up being stigmatised because they are not behaving as they would like to, not able to fulfil a function within society and, often, not even able to work or go out. The stigma arises because of the condition, and it is the condition on which, clearly, we should focus.

I commend the work that charities such as Beat have done to raise awareness of eating disorders and to ensure that people are not stigmatised; that GPs in particular do not greet people who show up suggesting that they are worried about their attitude to food by saying that it is not a problem and that they might just allow themselves to go away and get better. We need to focus on NHS training but also to acknowledge, as my hon. Friend the Member for Angus (Kirstene Hair) did, that there has been some progress in England, if not sufficient in Scotland yet. However, this is not a party political matter.

We have seen not only some positive work by the NHS and charities, but some of the damaging effects of social media, as the hon. Member for Strangford (Jim Shannon) said. Social media presents a huge opportunity to promote the positive body image that we would all like to see of what being healthy in the 21st century looks like. In reality, at this stage on this front social media does far more harm than good. It is far too easy to scratch the surface of the internet to find images that reinforce deeply negative perceptions of body image, reinforcing behaviours that are profoundly harmful. If social media companies can do a huge amount to take down child abuse images and other images that we as a society decide are profoundly harmful, it is reasonable to ask what more could be done automatically or more rapidly to take down images that all too often end up with people losing or taking their own life.

[John Howell]

My hon. Friend is making a powerful point about social media, but perhaps he needs to go one stage further, to look at the role of the advertising industry and the images that it puts forward, which encourage young people to achieve a fantasy position for themselves and their body image.

[Matt Warman]

I absolutely agree with my hon. Friend and, in fact, that was the point that I was coming on to make next. Clearly, not only do some sites encourage profoundly self-harming behaviour, but the advertising industry puts forward exactly that pervasive image to which he referred. We should look to regulators and Government for action to tackle that in a sensible way that promotes a genuinely healthy lifestyle without promoting unhealthy or unreasonable expectations, but we should not pretend that it is anything other than very difficult. Tackling such issues should not bleed over into not being positive about people who struggle with their weight, who would often like to see a more positive image of people who are larger. None of us wants to see an advertising regulator that ends up prescribing an ideal weight, although we need to prescribe a greater sense of health.

I agree absolutely with what the hon. Member for Bath said about no sensible and properly trained doctor in the modern NHS using BMI alone to assess whether a person has an eating disorder. However, too often it does become the single defining characteristic. Too many doctors have not been provided with all the tools and do not have the services to which they might refer their patients. Too often BMI becomes the measurement of last resort, and it is right for the NHS to seek to tackle that and for this House to do all we can to encourage the Minister and the NHS itself.

The hon. Lady mentioned family therapy. My understanding is that family therapy, in particular for young people and adolescents, is the only clinically proven therapy. It has been shown to make a real difference. It is incredibly intensive in resources and in the pressure on the family and patient, but it works. We should do more to reduce the stigma—to come back to the point of the debate—so that families accept that they might have someone in their midst who needs help not just from the NHS but from them—their family and friends.

As the hon. Lady said, however, it remains the case that eating disorders do not stop when someone is 17 or 18. In all too many cases, triggered by stress, they can emerge or return when a patient gets older. With that in mind, we should commend the work of places such as the Maudsley, which have tried to push family therapy beyond the point where everyone is expected to live at home and to say, for example, that the university setting could be a kind of family that encourages people to get better. What happens when people are older? As I said at the start of my speech, there are of course a number of functioning older adults who need all the help with which we can provide them, and that is about more than antidepressants.

If the Government could do two things, the first would be to encourage social media companies to look more closely at what can be done to tackle those images that go beyond the kind of advertising that my hon. Friend the Member for Henley (John Howell) said we need to look at and go way into a territory that is not healthy for anyone. My second ask, when it comes to funding research and spending some of that £1.4 billion that we are allocating to eating disorders over the coming years, is for the extension of family therapy—the one method that we know works. With the help of science and innovation, we should be looking at whether we can go further with that therapy. The stigma around the condition is a hugely important issue, but we must focus on tackling the illness itself.

Racehorse Protection

John Howell Excerpts

Monday 15th October 2018 Westminster Hall

[Mike Hill (Hartlepool) (Lab)]

I beg to move,

That this House has considered e-petition 211950 relating to setting up a new independent body for the protection of racehorses.

It is a pleasure to speak under your chairmanship, Mr Wilson. I should start by saying that I speak as a member of the Petitions Committee and am therefore impartial. This is not my motion; I speak on behalf of the petitioners.

Animal Aid is one of the largest animal rights organisations in the UK. I met its representatives in September to discuss the issue, as it has campaigned on issues of animal welfare for almost two decades. I also met the British Horseracing Authority to get its perspective.

All sports carry an element of risk for participants. A human athlete makes a conscious decision to participate in their chosen sport and should understand the potential risks of injury. In horse-racing, jockeys have the choice whether to participate. The horses that they ride do not have that option; they are bred and conscripted into a billion-pound commercial industry. With that fact comes, or should come, a responsibility towards the animals involved, whether they are among the breeding population, the horses in racing and training or the thousands removed from the industry every year.

According to the petitioner, the BHA bears that responsibility by its own choice. In its diverse and demanding role of governance and regulation, it has to make often conflicting decisions to promote horse-racing and maintain its integrity as part of its remit to foster a healthy horse population that, by any moral, let alone legal, standard, should be kept safe from harm.

Transparency and accountability should be key features of any authority—all the more so where animals are involved, because of the public interest in the sport and the public’s ever-growing concern for animal welfare and rights. We are all stakeholders, from punters, racehorse owners, trainers, bookies, farriers and racecourse admin assistants to MPs, campaigners for animals and the thoroughbred racehorses themselves. People should be assured that the best possible welfare practice is at the forefront of racing policy. Without it, the integrity, veracity and legitimacy of racing fall at the first hurdle. Sadly, racing has fallen at that hurdle and is stricken by its own ineptness at getting up to the task in hand and protecting horses from harm.

[John Howell (Henley) (Con)]

The hon. Gentleman mentioned that a number of organisations in the racing industry cover these areas. He also mentioned the BHA and the imperfections that it has had. I am not opposed to an independent body, but could not the BHA be changed and improved to take on the responsibilities of one?

Office for Budget Responsibility

John Howell Excerpts

Tuesday 24th July 2018 Westminster Hall

[Luke Graham]

I agree, and I will go into more detail later on exactly how I propose the powers should be extended and how to move forward.

The OBR provides sustainability and balance sheet analysis, which assesses the long-term sustainability of the public finances. The OBR’s “Fiscal sustainability report” sets out long-term projections for different categories of spending, revenue and financial transactions, and assesses whether they imply a sustainable path for public sector debt. That has arguably been a particularly important metric as we have sought to make the public finances more manageable and sustainable after the financial crash in 2008. There was a kick there aimed at the last Labour Government, but I will resist that for now.

The “Fiscal sustainability report” also analyses the public sector’s balance sheet, using both conventional national accounts measures and the whole of Government accounts, prepared using commercial accounting principles. Since 2016, the “Fiscal sustainability report” has been published once every two years, reflecting the frequency with which the Office for National Statistics updates its population projections.

The OBR evaluates fiscal risks every two years by publishing a comprehensive review of the risks from the economy and financial system in its “Fiscal risks report”. The first was published in July 2017, and the OBR analysed tax revenues, public spending and the balance sheet and included a fiscal stress test. Furthermore, the OBR produces central forecasts and projections for the public finances, while the “Economic and fiscal outlook” and the “Fiscal sustainability report” include discussion of the risks—both upside and downside—to those forecasts and projections.

The whole of Government accounts provide further information on specific fiscal risks, notably contingent liabilities such as Government guarantees, and that is in the “Fiscal sustainability report”. As a member of the Public Accounts Committee, I have the joy of taking part in, and leading on, the inquiry into the whole of Government accounts. The Committee recognised the fine work of the Departments and the civil servants that pull together those accounts, which really are of a very high standard and are certainly world leading.

[John Howell (Henley) (Con)]

One recent OBR report is about probably the biggest challenge that we as a country face—our ageing population and the associated social and healthcare risks. I found that report very useful. Does my hon. Friend think that such activity is a good use of the OBR?

[Luke Graham]

I do. That kind of objective analysis from the OBR could help to inform and shape some of our public debate. It could certainly make sure that policy debates in the House are informed by substantive, objective figures that would hopefully have cross-party support.

Finally, the OBR is responsible for scrutinising the Government’s tax and welfare policy costings, which it does at each Budget. The Government provide draft costings in the run-up to each statement, which are subjected to detailed scrutiny and challenge. The OBR also states in each “Economic and fiscal outlook” report and in the “Policy costings” document whether it endorses the Government’s published costings as reasonable central estimates and whether it would use them in its forecast. It also gives each costing an uncertainty rating, based on the data underpinning it, the complexity of the modelling involved and the possible behavioural impact of the policy.

Those five major roles all focus on the UK-wide public finances. However, the Government have also asked the OBR to forecast the receipts from taxes that they have devolved—or intend to devolve—to the devolved Administrations. It is therefore clear that the OBR already has an extensive remit, with a great deal of responsibilities, not only to deliver information to the Government, but to ensure accuracy so that that information is reliable enough that the Government can make acceptable fiscal decisions.

On the earlier point about the OBR’s performance, it has forecast, on average, within 0.3% accuracy of actual economic growth over the past seven years. While the exact accuracy in any given year has of course varied, the OBR has, to its credit, sustained an accurate reporting standard over a significant period of time. If anything, it has slightly underestimated economic growth in its predictions, showing a propensity for conservative estimates, which does it much credit. Indeed, the one outlier in its predictions is from 2013. For that year, it predicted a slowing of growth, but, in fact, thanks to the Conservative-led coalition Government’s policies, we experienced a 2.1% growth rate. It is worth noting that, without that outlier, the OBR has achieved accuracy to 0.1% in its predictions. That is a sound endorsement of its expertise.

Why do I believe that we should extend the OBR’s powers? First, it is worth remembering that independent budgetary offices are well established and well respected in other countries. In the Netherlands, the Bureau for Economy Policy Analysis, the CPB, has been in place since 1945. It is fully independent; it has its own legal mandate and an independent executive and advisory committee. Research is carried out on the CPB’s own initiative or at the request of the Government, Parliament, individual Members of Parliament, national trade unions or employers’ federations. It analyses the effects of current and future Government policies, and it is responsible for producing quarterly economic forecasts, as well as a spring forecast and a macroeconomic outlook, which is published alongside that country’s Budget in September. Taken as a whole, those forecasts provide a basis for extended socioeconomic decision making in the Netherlands.

The CPB analyses policy proposals, but also evaluates the effects of policy measures that have already been implemented. Since the early 1950s, the bureau has been analysing the costs and benefits of large infrastructure projects. It also conducts research in a wide range of areas, including, but not exclusively, the economic effects of ageing, globalisation, healthcare, education, the financial crisis and the regulation of markets.

Since 1986, the CPB has offered political parties an analysis of the economic effects of the policy proposals in their election manifestos. The plans of the participating parties are analysed identically, which offers voters a comprehensive tool for comparison of the parties and contributes to the transparency of the election process.

However, it was during a visit by the Public Accounts Committee to our American counterparts earlier this year that the idea of expanding the OBR’s remit came to me. During the visit, we learned about the Congressional Budget Office—a similar independent fiscal advisory organisation—based in Congress, in Washington DC. The CBO was created by the Congressional Budget and Impoundment Control Act 1974 as a non-partisan agency that produces independent analysis of budgetary and economic issues to support the congressional budget process. Interestingly, the CBO was based on the Californian Legislative Analyst’s Office, which manages the state budget in a non-partisan manner. To this day, the CBO provides analysis for state and local government where congressional committees report on legislation that applies to those levels of government.

The CBO’s mission is to help Congress to make effective budget and economic policy. The CBO discharges a number of key responsibilities, and I want to examine a few of them in greater depth. First, in broad practical terms, each year the agency’s economists and budget analysts produce reports and hundreds of cost estimates for proposed legislation. The CBO does not make policy recommendations; its reports and other instruments, which summarise the methodology underlying the analysis, help to inform policy decisions and the debates that subsequently take place in Congress.

If we look a little deeper into that, we see that among the CBO’s statutory requirements is the production of certain reports, the best known of which is the annual “Budget and Economic Outlook”. That report includes the CBO’s baseline budgetary and economic projections. The CBO is also required by law to produce a formal cost estimate for nearly every Bill approved by a full committee of either the House of Representatives or the Senate. Those cost estimates are only advisory. They can, but do not have to, be used to enforce budgetary rules or targets. Moreover, the CBO does not enforce such budgetary rules, although its work informs them; the budget committees enforce the rules. The power still lies with the politicians, but they are making much more informed choices.

It is important to remember that it is Congress that sets the CBO’s priorities; it is not the President, either of the major political parties or the CBO itself. However, I understand from conversations with counterparts in the United States that the CBO has become more open to the majority and minority leadership—both sides—in the House of Representatives and the Senate putting forward proposals to or making requests of the CBO. The CBO follows processes specified in statute or developed by the agency in concert with the budget committees and the congressional leadership. The CBO’s chief responsibility under what is known as the Budget Act is to help the budget committees with the matters under their jurisdiction.

For the CBO to be able to provide analysis to the breadth of recipients described, its analysis must be objective, impartial and non-partisan. The CBO achieves that by refusing to make any policy recommendations and by hiring people on the basis of their expertise and without regard to political affiliation. Analysts are required to conduct objective analysis, regardless of their own personal views. Strict rules to prevent employees from having financial conflicts of interest and to limit their political activities are enforced. That is in line with the requirements for our own civil service.

Importantly, the reports by the CBO are designed to reflect the full range of experts’ views, as it is required to present the likely consequences of proposals being considered by Congress. By their nature, the estimates are uncertain, but the estimates provided are in the middle of the distribution of potential outcomes. The CBO also undertakes a range of dynamic modelling. It will look not just at the impact of one policy and assume ceteris paribus that the rest of the world is held constant; it will also look at the impact that that one variable will have on other policies, to provide a more complete scenario forecast and recommendations to the various committees.

--- Later in debate ---

[Luke Graham]

I do agree. As I have mentioned, a hallmark of the CBO is the high standard of staff it employs. That is based on their expertise and ensuring that the right people are hired for the right role and that training is maintained in the office as well, so that expertise is not lost with standard staff turnover.

The CBO maintains its objectivity through a rigorous system of checks and balances. All the CBO’s cost estimates and reports are reviewed internally for objectivity, analytical soundness, and clarity. That process involves many people at various levels in the agency. Analysts’ consultations with outside experts help them to hear all perspectives on an issue.

Furthermore, the CBO evolves as the needs of Congress evolve. It has remained true to its original mission, but, as legislation has grown more complex, it has found itself spending more time providing preliminary analysis and technical assistance during the drafting stage of laws. The CBO is being asked more often to prepare cost estimates for Bills that are heading for votes without being marked up by committees first.

I emphasise that the CBO is strictly non-partisan. It conducts objective, impartial analysis, and importantly that analysis is accepted among economists and, consequently, by both parties in Washington. The CBO has historically issued credible forecasts of the effects of both Democratic and Republican legislative proposals.

That brings me to the last thing that I want to propose for the OBR. It is crucial that the independence of the Congressional Budget Office is accepted and beyond reproach, because it monitors and marks the policies and proposals of not only the Government, but the opposition. The independence of the Office for Budget Responsibility is, I believe, beyond reproach, but it only monitors Government policies. The Budget Responsibility and National Audit Act 2011, which founded the OBR, states that where any UK Government policies are relevant to the performance of the OBR’s duty of examining and reporting on the sustainability of the public finances, the OBR

“may not consider what the effect of any alternative policies would be.”

That rules out analysing Opposition spending plans.

My proposal, therefore, is to extend the powers of the Office for Budget Responsibility to create a body that replicates the function of the CBO in the United States, providing independent analysis to hold spending commitments to account. The aim of my proposal is to extend the powers of the OBR, providing it with additional responsibility to assess, analyse and score every piece of legislation that goes through the Houses of Parliament for financial or fiscal impact. It will maintain its strict independence, making it acceptable on both sides of House, regardless of which party is in government.

The purpose of my proposal is to enable the OBR to provide independent information and analysis, in order to combat “fake news” and misinformation being circulated on Government and Opposition spending plans. Wild spending commitments have been made, particularly by Opposition parties in the past, for example over the abolition of tuition fees, with no responsibility to deliver while out of office and, therefore, no accountability.

Let us look at the Brexit debate. How much better could the debate have been had there been an independent body, such as the OBR, providing accurate analysis of the impact of the costs and opportunities of Brexit? It would have taken the pressure off the Government and given us analysis that would be accepted by all parties. We could then have debated how to make the best of Brexit—or not—rather than the endless debates we have had over bus-side promises, scaremongering over power grabs or whether the Brexit deal was sufficiently hard, soft or anywhere in between.

[John Howell]

How does my hon. Friend think the OBR would have reported, if it had been given that role?

[Luke Graham]

I do not know whether I am sufficiently qualified to project on to the OBR the conclusion it might come to. I am sure it would have provided additional food for thought, to contribute to the debate.

As I have already mentioned, other countries have long-established and well respected independent fiscal bodies, which provide analysis that is respected and accepted across the political spectrum. That allows the politicians to debate the substantive matter, not subjective opinion. Establishing an independent system of accountability will hold manifesto commitments to account before an election, making fiscal sustainability a manifesto premium, and negating the opposition’s ability to garner support through unsustainable spending commitments. In turn, this will allow us, as politicians, to focus our debates on the content and direction of our proposals without having to waste time debating the credibility of the figures.

This is not the first time that this proposal has been suggested. In March 2014, Robert Chote, the chairman of the OBR, recommended to the Treasury Committee in a hearing that opposition party policies should be costed by the OBR, in order to improve the quality of public debate. Mr Chote was confident that it was within the OBR’s capabilities, although not in its current remit, to review party manifestos for a general election, so long as the parties could agree the terms of reference. During that Treasury Committee hearing, Mr Chote said that he supported

“the OBR having a role in the costing of political parties’ manifestos in the run-up to an election”.

He said:

“if Parliament wishes us to go down this route then it does offer the prospect of improving the quality of policy development for individual parties and it potentially improves the quality of public debate”.

The then shadow Chancellor, Ed Balls, wrote to Mr Chote, asking the OBR to assess the Opposition’s manifesto pledges, while Danny Alexander of the Lib Dems—then Chief Secretary to the Treasury—also supported the proposal.

The New Statesman, hardly known as a Conservative party mouthpiece, wrote in 2015:

“Successful fiscal councils overseas demonstrate the need to balance responsibility with credibility. The Dutch CPB is an established part of the political landscape and plays an instrumental role in setting budgets and evaluating manifesto pledges. In the US, the Congressional Budget Office assesses alternative policy options for the government. The credibility of these institutions has been built over decades…evaluating manifestos should be the beginning of the OBR’s expanding set of responsibilities, not the end.”

Each piece of legislation put before the House, would, therefore, be scored, costed, and subjected to objective analysis and scenario planning, so that politicians can have a more informed debate. That would give us greater focus on smaller initiatives, many of which are announced in the House and passed within one news cycle. It would give us a better understanding of not only central Government funding, but devolved Government spending, so that we would always be clear about Barnett formula consequences and what direct funding is given to the different levels of devolved Administration throughout the United Kingdom. Finally, it would give us a more comprehensive view of our economic and fiscal outlook, so that politicians could have a more informed debate, hopefully leading to better decision-making.

There is something of a credibility crisis in politics just now. The public feel they cannot and do not trust politicians and the promises we make. That is why we should provide an independent, verified and reliable source for the figures we use in debates, one which all sides can agree on. The OBR already exists and has respect and esteem as an independent assessor of the Government, so why not extend that remit to cover all parties regardless of whether they are in Government or Opposition? There is clearly cross-party support for the proposal, as seen in my submission to the Backbench Business Committee. It would be a small but important step on the path back towards believability and reliability in our politics.