Spring Statement

John Lamont Excerpts

Wednesday 13th March 2019 Commons Chamber

[Mr Hammond]

I have already made the point about the unsustainable rise in welfare payments under the previous Labour Government. A 65% real-terms increase in the welfare budget was not sustainable. [Interruption.] The hon. Member for West Ham (Lyn Brown) can chunter from the Opposition Front Bench as much as she likes, but it will not make it sustainable. I will tell the hon. Lady what will help her constituents: the £6,500 tax cuts per family for people earning low wages and buying fuel, which Opposition Front Benchers voted against, and the £2,500 increase in the national living wage since 2016 for people working full time on low wages.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I was delighted to hear that the Chancellor is ploughing £260 million into the borderlands growth deal, which shows this Government’s commitment to cross-border infrastructure investment. It will allow the borders railway extension—from Tweedbank to Hawick, Newcastleton and on to Carlisle—to move forward. I was also pleased to hear his response to the invitation from my hon. Friend the Member for Carlisle (John Stevenson) to visit his constituency, so when he visits will he also come across the border and visit my constituency in the Scottish borders, which will see significant benefits from this investment?

[Mr Hammond]

The whole point of the borderlands growth deal is to celebrate the economic geography of the borders region on both sides of that non-line between Scotland and England, so my hon. Friend makes a very good point. If I am coming to Carlisle, I shall certainly cross the border and visit his constituency.

Sport in the UK

John Lamont Excerpts

Monday 4th February 2019 Commons Chamber

[Mims Davies]

The hon. Lady makes a great point. We need to work with Sport England to reach everyone who can take part in sport in whatever way possible. I was lucky enough recently to speak at an event marking the 30th anniversary of the Paralympics, and it made me think of my young children, who do not see any barriers to participation because of London 2012, which changed so much. It is absolutely right that where there is an opportunity for people to take part in sport we give them that opportunity. That is the focus of my speech this evening.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

The Minister is making a strong case for participation in sport, but there is also a clear case in terms of preventive health, given that evidence suggests that being involved in sport reduces by 30% people’s incidence of stroke, cancer and other illnesses. Today being World Cancer Day, does she agree that there is a long-term public purse benefit to getting people fit and healthy through participation in sport?

[Mims Davies]

Absolutely. I will build on that thought in my speech. It is vital that we work with health bodies and communities and through social prescribing. It can help to keep our communities fitter, healthier and more connected.

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[Andrew Griffiths (Burton) (Con)]

It is a great pleasure to follow the hon. Member for Tooting (Dr Allin-Khan), who spoke on behalf of the Opposition. She made a powerful speech, but I have to say that it was quite negative. She talked about all the things she does not like—including betting, big football clubs and sitting down at the football—but we should be talking about the positive things that sport can achieve and what it brings to all our communities. Let us not be dour; let us be positive about the power of sport.

The Minister gave a brilliant speech. We were lucky to have the Tour de France visit Yorkshire not so long ago, and she gave us a tour de force today about all the benefits of sport.

As well as being the home of brewing, my constituency of Burton and Uttoxeter is also the home of the English football team. We are delighted to have in Burton—I share it with my hon. Friend the Member for Lichfield (Michael Fabricant)—St George’s Park, the home not just of the English football team but of all 28 England national football teams, including the disability teams, the women’s team and the blind team. It is a truly inspirational facility. I took some credit from the Bring it to Burton campaign, which I ran when I was a candidate. That was obviously instrumental in the £105 million being spent in my constituency to develop that state-of-the-art facility. The 13 pitches have attracted teams such as Barcelona and Monaco, and the Irish rugby union team have trained there. We are a magnet for sporting excellence and it is a great pleasure to have the facility in my constituency.

We also have Uttoxeter racecourse for the sport of kings. I am delighted that we play host every year to the west midlands grand national, which attracts some 16,000 people to my constituency on the day and puts £1 million into local businesses over that weekend. We talk about the power and benefit of sport, but its financial benefit to my constituents and those businesses is really important.

[John Lamont]

My hon. Friend is making a powerful point about horse-racing, which in terms of attendance and revenue created is the second biggest sport in the United Kingdom; it is a great shame that it has not been mentioned so far in the debate. My constituency has Kelso racecourse, which contributes greatly to the local economy. Does my hon. Friend agree that horse-racing is very much an underrated sport and that it does so much to promote sport and physical activity?

--- Later in debate ---

[Gavin Newlands]

There is a danger that we might get a bit ahead of ourselves but, yes, I agree that, in the time to come, there should be a statue to Andy Murray in Dunblane, perhaps to sit alongside his gold post box. I wonder whether the hon. Gentleman will commission the statue himself.

That brings me on to the Murray legacy. The staggering success of the entire Murray family is and will continue to be a positive thing for Scottish tennis, as well as tennis across the UK, yet their rise to become the best tennis players in the world has exposed funding and governance imbalance issues that need to be taken seriously, lest we risk squandering the opportunities that their success could provide us with: opportunities not only to nurture future champions, but, just as importantly, to give more people the opportunity to play tennis. To achieve that, we need to be frank about where we are going wrong.

At the age of 15, Andy was advised by one Rafael Nadal that he would have to move away from the UK if he wanted to become a professional. That was 16 years ago, and not much has changed. Scotland is one of the world’s leading nations for tennis, thanks to the success of not only the Murrays, but Gordon Reid, the former world No. 1 in men’s wheelchair tennis, and others. However, it is an indisputable fact that Tennis Scotland has been drastically underfunded by the Lawn Tennis Association. Despite Scotland’s enviable success, the LTA gave Tennis Scotland just £650,000 in 2017, from a budget of £60 million UK-wide. That means that Scotland, with some 8.5% of the UK’s population—and the UK’s best players, Davis cup coach and so on—received just 1% of the revenue funding available from the LTA. In 2018, that allocation was slashed to just £582,000.

[John Lamont]

The hon. Gentleman is making an important point about the funding for sports development. Does he therefore agree that it is unfortunate that shortly before receiving the extra revenue from the sugar tax from the UK Government the Scottish Government slashed funding for sportscotland by a fifth?

[Gavin Newlands]

Far be it for me to disagree with the hon. Gentleman, but last year the Scottish sports budget grew by £2 million—more than 7%—and Derek Mackay offered to underwrite any loss from the lottery sports funding of up to £3.5 million. So I will not hear any Scottish Conservative nonsense about the Scottish Government on this issue. This debate at least should be a consensual one.

The perfect example of this problem can be seen in the availability of the indoor courts that make the game possible, particularly in Scotland, given our weather conditions. At the last count, there were 102 facilities in Scotland, compared with 1,484 in England. Of course, this is not just the fault of the LTA; government at all levels, as well as non-governmental bodies, have also to address issues of access. But what a shame it is that, particularly in Scotland, the biggest issue that young people who wish to get into the game may face is finding somewhere to play. Speaking to the Scottish context, Murray said:

“I know in Scotland that there have not been many indoor courts built in the last 10 years. That seems madness. I don’t understand why that is. You need to get kids playing; you need to have the facilities that allow them to do that.”

The all-party group on Scottish sport has looked at these missed opportunities, taking evidence from the then chief executive of the LTA, Michael Downey, Judy Murray and Blane Dodds, the chief executive officer of Tennis Scotland. Following this investigation, the LTA loosened its purse strings somewhat and, along with sportscotland, delivered a capital investment fund specifically for tennis facilities in Scotland.

Andy Murray has criticised the LTA for not doing enough to build on his and his family’s success, recently saying:

“Maybe it’s something I should have given more thought to while I was playing but I never felt that was my job to do that.”

He is right. It is not his job—it certainly should not be—to be getting involved in the governance of his sport; our athletes, in whichever sport, should be able to put 100% of their concentration into their game. But the Murrays have felt the need to intervene as, staggeringly, tennis participation numbers continue to drop, despite the success of top-level tennis players across the UK. Two things must change: we need a sharp increase in the number of facilities available across Scotland, and the UK as a whole; and we need parity and fair funding between the game’s governing bodies. That means that the LTA needs to provide Tennis Scotland with the funding it needs to do its job properly.

Over the past few years—I say this from speaking to other Scottish sporting bodies—it has become increasingly clear that the issues we see arising within tennis are very common in the governance of other sports. Many of these non-governmental bodies feel strongly that there is a lack of “equal status” and “equal standing” between the Scottish bodies—this applies to other devolved bodies, as this is not simply a Scottish issue—and their English counterparts, with many UK-wide NGBs functioning as extended versions of their respective English bodies.

One chief executive I spoke to said that their respective English body acted like they were the “GB” organisation, rather than one of four separate bodies. That too often leads to the organisations responsible for Scotland, Wales, and Northern Ireland being cut out of processes, with no say in crucial decision making. That leads to the kind of situations we have seen in UK Athletics, where a shambolic leadership team are trying to ride roughshod over the devolved athletics bodies. [Interruption.] The hon. Member for Rhondda (Chris Bryant) seems to have a cough, but I will come back to him shortly.

A recurring concern of all Scottish NGBs is that there is a lack of systematic process, with the English bodies often unilaterally taking action over the others on UK-wide decisions. That is not to say there is not some excellent practice that we can learn from; the governance of swimming has been cited to me as an example of a better system working between the UK’s countries. I look forward to raising this issue with Dame Katherine Grainger, who, in addition to being one of the UK’s most decorated Olympians, is also the chair of UK Sport, as she will be attending a meeting of the all-party group on Scottish sport on Monday 25 February.

On devolved sports, another area that needs to improve is broadcasting, and the all-party group has been looking at this subject. The level of media coverage awarded to Scottish sport is regularly a contentious point among sports fans, with claims regularly being made that individual sports in Scotland do not receive the coverage they feel their sport is entitled to. For example, early last year, Scottish football fans took to Twitter to complain that ITV/STV aired the England v. Malta game but did not air Scotland’s crunch game against Lithuania. STV responded to those complaints stating that it did not have the rights to the match, as they were sold on a UK-wide basis. At the time, STV responded on Twitter by saying:

“Scotland, we hear you.

We’d love to bring you the match, but as football rights are sold UK wide it's sadly out of our reach!”

The current list of events was drawn up in 1998, more than two decades ago. I fully appreciate that, because of England’s size, the rights for England internationals are commercially viable for commercial public service broadcasters, and that is not the case for Scotland. If Scotland games were added to listed events, the Scottish game, which is not exactly flush with money, might be forced to accept a smaller rights fee package. I hope to address several other issues to do with broadcasting in an upcoming roundtable with partners and broadcasters in Scotland.

Finally, next Tuesday Glasgow Life will present on the impact and legacy of the Glasgow 2014 games. With Birmingham 2022 on the horizon, Members from the midlands may find that interesting. I hope the Minister will confirm that the Scottish Government will receive the full Barnett consequentials that should flow from the Birmingham 2022 spending commitments.

In conclusion, the great American football coach Vince Lombardi once said:

“It’s not whether you got knocked down; it’s whether you get up.”

And with that, I’ll get down.

Finance (No. 3) Bill

John Lamont Excerpts

Committee: 2nd sitting: House of Commons
Tuesday 20th November 2018 Commons Chamber

[Patricia Gibson]

Again, my hon. Friend points to the lack of accountability and the hotchpotch—the rushed contracts put together by PFI, which benefited somebody, but did not benefit our local authorities or our children, and they do not benefit the patients in hospitals.

There is no better example of the need for new clauses 14 and 15 than North Ayrshire Council in my constituency. This Labour-run council had a PFI process that was severely flawed and was uncovered by local journalist Campbell Martin. Some have even insisted that criminal activity was involved, since while the council appeared to have two bids for construction projects—therefore seeming to provide the genuine competition required by EU procurement rules—in fact, the evidence suggested that one of those bids was from a subsidiary of the other company submitting a bid, so there was actually no competition at all. The Labour council was made aware of this before the contracts were awarded, but awarded them regardless. In the opinion of one ex-detective, the evidence showed

“criminality from start to finish.”

Another former officer stated that a common law crime of forgery and uttering should have been pursued. Right there we see the need for more transparency. I for one would like to see more transparency on the tax arrangements of such companies, as this is very much in the interests of the UK’s public finances.

All this information relates to a public-private contract now costing taxpayers over £1 million every month in North Ayrshire. Add to that the schools that are crumbling across cities such as Edinburgh, and we have real questions about these PFI firms. For projects of a capital value of £4 billion in Scotland, we will repay £22 billion, with our schools spending 8% of their budgets on paying off these Labour PFI debts. Can we really allow any lack of transparency around the tax affairs of such companies?

It is absolutely essential that there is more transparency around how UK public finances finance public sector projects. The tax affairs of these companies and their wider financial affairs need to be open to scrutiny because they build or have built our public assets. I urge the Committee to support new clauses 14 and 15.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I want to discuss the clauses in the Bill that seek to tackle tax avoidance and evasion. Combined, these measures will seek to raise billions of pounds for our public services by further clamping down on this serious matter. My hon. Friend the Member for Walsall North (Eddie Hughes) identified clearly that these measures will raise much needed extra money for our public services.

Rather than raising taxes for businesses, this Government are focusing on making sure that tax liabilities are paid. They have a strong track record of clamping down on those seeking to avoid paying their fair share. This Budget builds on that track record, with no fewer than 21 measures to protect revenue and bring in more tax by tackling fraud, avoidance and unfair outcomes.

On a related point, I very much support the introduction of a new digital services tax, which is not technically a measure designed to tackle tax avoidance, but which will nevertheless make our tax system more fair and fit for purpose in the digital age. The Chancellor is right to try to find a global solution, but in the meantime this measure is a step in the right direction that will make the tax system fairer for small businesses in high streets in my constituency in the Scottish borders that are struggling to compete with the likes of online giants such as Amazon. Of course, in Scotland, these businesses are also struggling with the high tax regime imposed on them by the SNP Scottish Government in Holyrood.

Other clauses in the Bill, such as those to ensure that HMRC is a preferred creditor in business insolvencies, that more tax is paid to the public purse and that we crack down on insurance companies routing services through offshore territories, are certainly welcome.

[Jim McMahon]

Does the hon. Gentleman accept, though, that the trade-off with the digital sales tax and the relief being offered to some premises in town centres just is not enough? Take, for instance, the former Textiles Direct unit in my local shopping centre, which has been empty for some time, but has a rateable value of £500 per square metre. Compare that to the Amazon warehouse near Manchester airport that pays just £44 per square metre. How can it be right that the gap is so large?

[John Lamont]

Clearly, I cannot speak about the circumstances in the hon. Gentleman’s constituency, but these measures are clearly a step in the right direction. I know the number of businesses in my constituency that contact me. They are competing with online businesses and other digital platforms to provide the same or similar types of services. It is just not fair when businesses are able to run very profitably, making a big turnover from a garage or attic, when at the same time the same service or shop on the high street is paying significantly higher business rates. Of course, in Scotland, we have the additional challenge of the additional taxes that businesses are having to pay through the Scottish Government’s high-tax agenda.

Treasury Spending: Grants to Devolved Institutions

John Lamont Excerpts

Tuesday 3rd July 2018 Commons Chamber

[Kirsty Blackman]

I do not give a stuff how much Donald Trump has invested in Scotland, because he is separating families, and that far outweighs any good that he has done with the investment that he has made.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

The hon. Lady has criticised the financial transactions as the means by which the UK Government are delivering extra funding to Scotland, but does she not agree or accept that the Scottish Government have used financial transactions to invest in housing, in vital infrastructure projects and in other business support? It seems to me that she is happy to criticise the UK Government for using this model but is not prepared to accept that the Scottish Government use exactly the same model for their investments.

[Kirsty Blackman]

I am pleased that the Scottish Government are receiving the financial transactions money. However, the UK Government cannot say that this is money that can be spent on day-to-day spending, because it cannot. The Resolution Foundation has specifically said that it cannot be spent in that way.

Scottish Economy

John Lamont Excerpts

Wednesday 27th June 2018 Westminster Hall

[Ged Killen]

I thank the hon. Gentleman for his point. We have a serious issue with how we expect to finance public spending in Scotland, and I will come on to that later.

Unfortunately, the story is the same when we turn to productivity. While the productivity puzzle on these islands has been a problem for both Scotland and the rest of the UK, the most recent figures show that in Scotland the puzzle is even more complex, and while UK productivity has risen by 0.7%, trend productivity in Scotland is zero. On key indicators for growing our economy and making our workers more productive, the SNP Government have an even poorer track record than the UK Government. That means that the country is not reaching its full potential, and the average person’s wages are being squeezed more and more. In the real world, in terms of how far towards the end of the month people’s pay reaches, when it comes to buying food, paying bills and socialising, the average Scot is worse off now than they were 10 years ago and is doing worse than the UK average.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

The hon. Gentleman makes a point about take-home pay and how much workers have in their pay packets, but when the SNP and Scottish Parliament announced their “Nat Tax”, his Labour colleagues in the Scottish Parliament argued that it did not go high enough. They wanted to take greater taxes off the hard-working Scots. How can he complain about how much people are taking home in their pay packets, when he wants to increase tax and take more money out of those pay packets?

[Ged Killen]

I thank the hon. Gentleman for his comments; I know we have very different views on tax and spend, and I do not think we will resolve them here.

To add to all that, Scotland is more unequal than ever. The wealth disparity means that the average household would need to save every penny of their income for 43 years to enter the top 10% of wealthiest Scots. A failure to increase wages, build more houses or spread wealth means that the most significant factor in determining whether a person will own their own home or secure a top-tier job is not their skills and talents, but who their parents are and where they live. A Scotland where circumstances of birth will take people further than their skills and talents is not the kind of country we should aspire to be, but that is the situation we find ourselves in.

Despite those facts, the vision put forward by our governing parties is not for the radical transformation that is clearly needed. On one side, one of Scotland’s Governments supports a damaging Brexit policy that will cut the ties of Scotland and the rest of the UK to the EU’s internal markets and the customs union. The Fraser of Allander Institute has modelled that with each degree of separation from those two tenets of the EU, Scotland will be more and more damaged. Scotland faces being between 2% and 5% worse off in GDP terms as a result of this Tory Brexit, while in the worst of cases, under a no-deal Brexit, in which we default to World Trade Organisation rules, wage growth will go into reverse, the economy will shrink and, most worryingly, Scotland’s successful food and drinks exporting industry could suffer as much as a 26% reduction in trade.

--- Later in debate ---

[Danielle Rowley]

I thank the hon. Lady for her intervention. I absolutely agree that education is a fundamental part of growing industry in Scotland.

The collapse of Crummock in my constituency is just the latest example of the deep problems surrounding the financial health and stability of the Scottish construction industry.

[John Lamont]

The hon. Lady is speaking very well about the economic challenges that Scotland faces. Does she agree that those challenges would be turned into complete misery for the people of Scotland if the SNP had its way and ripped Scotland out of the United Kingdom?

[Danielle Rowley]

I thank the hon. Gentleman for his intervention. He will know that I would agree with that.

To focus on the construction industry, the collapse of Crummock is just one of many that we have seen recently, with many job losses, in Scotland. The closure of large employers such as Crummock will have a significant impact on local economies. A number of suppliers and service providers have spoken to me about their worries. A small electrical company and those providing cleaning services have expressed to me concerns about the future of their businesses following Crummock’s closure. Such closures reflect the failure of an economic strategy that is over-reliant on free-market forces, as well as an absence of joined-up Government policy and action, especially in public procurement.

--- Later in debate ---

[Drew Hendry]

I disagree, and so do many businesses that I interact with in the highlands on a daily basis.

Production efficiency in the oil sector has risen for the fifth consecutive year, reaching 74% in 2017, demonstrating sustained efficiency improvements and maximising the economic recovery. Oil & Gas UK’s “Business Outlook for 2018” shows growth in investment and a further 5% increase in the forecast production for that year. Recent industry announcements about BP’s successful working discoveries in the Capercaillie and Achmelvich wells and Shell’s redevelopment of the Penguins field demonstrate the investment potential that the UK fields still hold. Over the next decade our oil and gas sector can capitalise on the decommissioning market, which is forecast to reach £17 billion; but that is only if the right decisions on investment are made.

[John Lamont]

The hon. Gentleman points out the challenges for the oil and gas sector, but on Monday when the Scottish Affairs Committee was taking evidence on the sector in Aberdeen, we heard people saying they wanted fracking to be expanded in Scotland. Does he support the industry in making that call?

[Drew Hendry]

I certainly do not support fracking. I do not believe that a country as rich in natural resources and renewable energy as we are—and indeed one with the oil and gas industry that we have at the moment—needs to go for fracking. I absolutely support the ban on fracking in Scotland. [Hon. Members: “There is no ban!”] There is a ban in Scotland. As to an effective ban, a court ruled in the past week that that is the case: fracking cannot go ahead in Scotland under the current situation.

Social Mobility and the Economy

John Lamont Excerpts

Wednesday 28th March 2018 Westminster Hall

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

My right hon. Friend makes a powerful case for social mobility. It is important to record that we still have big issues with the attainment gap in Scotland, where children from the most deprived households are much less likely to go to university compared with those in England. Social mobility needs to be spread across the whole United Kingdom. The benefits of people being mobile need to spread to every part of the kingdom, not just those living in London and the south-east.

[Justine Greening]

I could not agree with my hon. Friend more. We face a simple but powerful problem: talent is spread evenly across the country, but opportunity is not. We need to ensure that we nurture that talent. I share his concern that educational attainment in Scotland looks like it is slipping backwards relative to the rest of the UK.

Finance (No. 2) Bill

John Lamont Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 21st February 2018 Commons Chamber

[Kirsty Blackman]

I have expressed particular concerns about those people in England who earn under £26,000 a year and will pay more tax than they will in Scotland and about whether the Government feel it is fair—[Interruption.] I am sorry, Mr Speaker, but I am being shouted at from across the Chamber. Those people at the bottom of the pile who earn under £26,000 a year will pay more tax in England than they would in Scotland. That is not fair, because those people—

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

Will the hon. Lady give way?

[Kirsty Blackman]

No thanks.

It is not fair because those are the people who most need Government support, especially given the changes to tax credits and the negative impacts we have seen, with disabled people losing £30 a week. This is a major issue for the most vulnerable people. The Conservatives shout about the fact that tax rates for those who earn a reasonable income will be slightly higher in Scotland than in England, but it is clear that they support a different system that does not involve as much fairness as the system that we are trying to support in Scotland.

On the process of Budget scrutiny and the general process of scrutiny of Finance Bills, I have previously expressed vociferously my concerns about the fact that Finance Bill Committees do not take evidence. It would be much better if they did, and if they did, I would like to see them take evidence from organisations such as the Women’s Budget Group that can talk about the gender disparity in some of the tax decisions that are made. But I honestly do not think that that is enough. It is not enough to have scrutiny after the fact. Despite the Government moving to one fiscal event in the year, which is a change that I welcome, there is not the level of consultation that there could be before tax measures are suggested and put in place—before the Chancellor stands up and reveals his Budget.

[Kirsty Blackman]

I agree with the hon. Gentleman’s point. I made the point earlier about regional differences and the impact of Brexit. It is important not only in relation to the GDP reduction that areas might see because they will not be able to trade as easily with EU countries, but in respect of the money that came from the EU and was used for things like infrastructure projects. It is important that the Government counter those reductions.

When the Chancellor stands up to give his spring statement, which we hope will be light on tax changes—that is what tax experts and the business community are asking for—and when he delivers his Budget, it is incredibly important that he has done as much consultation as possible beforehand. He should not only speak to business organisations and Conservative MPs, as I know he does, but open the net wider and consult in advance on any tax measures that he wishes to put in place. He should also take on board new clause 9, which would ensure that an impact analysis is carried out afterwards.

[John Lamont]

Can the hon. Lady explain the consultation that the Scottish Government undertook before they introduced higher taxes for Scottish taxpayers? Many of my constituents do not feel that it was fair and many businesses have expressed concerns. Despite the calls for consultation, the Scottish Government’s consultation before the introduction of their own plans for higher tax was not reflected in any changes.

[Kirsty Blackman]

Before the vote on the Scottish Government’s budget, they produced a paper on the rationale behind their proposed changes. They consulted each of the parties in the Scottish Parliament and asked them all to put forward their tax plans, so that they could be analysed. The consultation was first put forward in October or November—I am not entirely sure—and the vote is taking place today. That left a significant length of time between the production of the consultation documents and the first discussions and the actual vote in Parliament.

Here in Westminster, we have the Budget debate and then the votes on the Ways and Means resolutions. We have votes on proposals that are being put in place from that day. That is very different from the situation in the Scottish Parliament, where a length of time is allowed for consultation because the draft budget is produced. All the parties in the Scottish Parliament are welcome to produce an Opposition budget and they are welcome to take that to the Parliament to be voted on. Some of them have chosen to do that and some have not. I suggest that those that have not chosen to do that might be struggling to balance the books, or they might have just decided that ours is clearly the best option.

I do not wish to take up any more time. The call for equality assessments and for more transparency and information would be helpful not only for the Opposition, who scrutinise the Budget, but for the Ministers who take decisions. They would take better decisions if they could see all the impacts, particularly on people with protected characteristics.

Community Bank Closures

John Lamont Excerpts

Thursday 8th February 2018 Commons Chamber

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I pay tribute to the hon. Member for Stoke-on-Trent North (Ruth Smeeth) and my hon. Friend the Member for Hazel Grove (Mr Wragg) for bringing this highly topical issue before Parliament.

The announcement in December from Royal Bank of Scotland-NatWest that 62 branches would be shut across Scotland affected my constituency more than most, and I wish to concentrate my remarks on that. Six branches are set to close in Berwickshire, Roxburgh and Selkirk in the latest in a string of closures in the Scottish borders.

We all acknowledge that banking habits are changing and that branches are less well used than they used to be. However, what banks are failing to appreciate is that for those who do use them, they remain more vital than ever. I share Members’ concern that these closures will affect vulnerable customers as well as cash-handling businesses and community groups that need a local branch at which to deposit money.

The impact of bank closures is particularly acute in rural areas, for a number of reasons. First, alternative services are already stretched. The post office in Hawick, for example, is very busy and will struggle to take on extra banking services. Secondly, connectivity in rural areas remains a big challenge. East Berwickshire has some of the worst internet speeds in the whole of the United Kingdom, with more than a third of people unable to receive a decent connection. How can those people be expected to rely on internet banking as an alternative?

High streets in the Scottish borders are struggling, and Jedburgh and Selkirk in my constituency will be particularly badly hit. Selkirk is currently going through a significant amount of town centre regeneration, only for the bank to now announce that it is going to leave. Another issue with one of the branch closures in the borders is disabled access. Duns is set to lose its RBS branch, and although the Bank of Scotland branch remains, it is only open three days a week, and both the branch and its ATM are not wheelchair-accessible.

Many people in the borders think that these closures have been decided by people with little experience of living outside the metropolitan areas of the United Kingdom. Someone has looked at a map without any knowledge of the local area and drawn red crosses all over it. There has been a complete lack of consultation. RBS simply announced these closures and told its customers to like it or lump it. There is a feeling in my area of the Scottish borders that enough is enough.

Opposition to the latest round of closures is unprecedented, and I have been contacted by a huge number of constituents. Tomorrow I will hold three public meetings on branch closures, spread across my constituency, such is the level of concern surrounding this news.

[Danielle Rowley (Midlothian) (Lab)]

Does the hon. Gentleman agree that the announcement by RBS this week that it will keep some branches in Scotland open temporarily—I think one in his constituency, but none in my constituency—does not go nearly far enough and still leaves rural and more deprived communities at risk of losing their services?

[John Lamont]

The hon. Lady makes an important point. I will come on to the bank’s announcement this week shortly, but I share her concern that it goes nowhere near far enough to address the concerns that many people have raised.

I accept the Government’s position that this is a commercial decision for the bank. The public shares are not managed by the Treasury; they are controlled by an arm’s length company, UK Financial Investments, whose role is to manage the public investment, not to manage the bank. It would set a dangerous precedent if there were direct Government interference in a decision such as this.

Having said that, I do not believe that the arrangement with UKFI would have prevented the Government from telling the bank that it had got this decision wrong. The announcement this week from RBS, with its minimal concessions, is simply not good enough. A handful of branches will remain open for just a few more months, and in the Scottish borders, only Melrose will be given a stay of execution. No one really expects these branches to avoid closure ultimately.

I was therefore very surprised to read the comments of the right hon. Member for Ross, Skye and Lochaber (Ian Blackford), praising the bank for this announcement. I was equally surprised to read his comments at the weekend, when he seemed to be taking credit for what he anticipated would be good news from the Royal Bank of Scotland.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Does the hon. Gentleman agree that while the deal done this week, with 10 banks being temporarily reprieved, is not good enough, the UK Government should be exerting their influence—their much greater influence—as the major shareholder on behalf of the taxpayer?

[John Lamont]

I am grateful to the hon. Lady for her point, but if she had listened to what I said a few moments ago, she would have heard me say that while the Government own the shares, we do not have direct control over the day-to-day running of the company. Equally, I believe—I have argued this strongly to the Minister—that the Government should apply moral pressure on the bank to think again on these decisions.

The announcement by the bank does not go far enough, and although the bank has made some changes—minimal changes—it has not fully addressed the concerns that my constituents have raised. I was surprised by the comments of the leader of the Scottish National party at Westminster, who seemed to be trying to take the credit for what he anticipated would be good news from the bank. I was surprised because the bank made it clear that the changes to the plans it had previously announced were in response to concerns raised by politicians from all political parties, and because in the end the news was far from good. A cynic might think this had more to do with the right hon. Gentleman positioning himself ahead of the SNP deputy leadership election than trying to do what was best for his constituents or, indeed, the branch network across Scotland.

The truth is that the campaign against the RBS branch closures has been a truly cross-party effort—led, I must say, by the Scottish Affairs Committee at Westminster. I am pleased to see two other members of the Committee on the Opposition Benches today, and I know that they feel just as passionately as I do about the issue of branch closures. All Members who are losing branches in their constituencies share a desire to make the banks think again.

For the SNP, the loss of 52 branches across Scotland is a price worth paying to give 10 branches a very short temporary stay of execution. This is bad for communities in the borders, bad for rural communities across Scotland and bad for the elderly and the vulnerable. It is a bad deal to avoid further public scrutiny, made without consulting local communities.

--- Later in debate ---

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I am delighted to participate in this debate, although I wish it were not necessary. I thank the hon. Member for Stoke-on-Trent North (Ruth Smeeth) for securing the debate and for her comprehensive opening speech.

The speeches we have heard today show there are common concerns across the United Kingdom about the stampede of the banks out of our communities. We are all very concerned. We have had the announcement of yet more bank closures by RBS, with a further 62 branches closing in Scotland. Ten have been reprieved for the moment, following negotiations with the Scottish National party leadership. I agree that that does not go far enough. It certainly does not—

[John Lamont]

Will the hon. Lady give way?

[Patricia Gibson]

In a moment.

It certainly does not do anything for my constituency, but I am not mean-spirited enough not to recognise when progress is made. I know the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) would rather cut his own head off than give the SNP any credit for anything, but I really think he should be more gracious in this case. He said that this was as a result of concerns expressed by all parties, but the fact is that around the negotiation table there was the SNP and RBS—nobody else. So I really do think that he might perhaps put that in his pipe and smoke it.

--- Later in debate ---

[John Lamont]

Will the hon. Lady give way?

[Patricia Gibson]

I will not give way. You’ve put the boot in and the boot’s been put back, so we will leave it at that.

I would be disturbed by the fact that the UK Government, despite being the major shareholder in RBS, has not lifted a finger—[Interruption.] The hon. Gentleman chunters from a sedentary position, driven by his hatred of the SNP and his lack of concern for communities who have been offered a reprieve. It really is quite sad, Madam Deputy Speaker. It is concerning that the UK Government, despite the taxpayer being the major shareholder in RBS, have not lifted a single finger to encourage or force RBS to pause its closure programme and carry out impact assessments or consultations with the communities affected.

[John Lamont]

rose—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I think the hon. Lady has said she is not giving way. She has a short amount of time in which to speak.

[Patricia Gibson]

Thank you, Madam Deputy Speaker. It is disappointing that the UK Government have not lifted a single finger on behalf of the taxpayer to do anything to protect the communities affected by the bank closures. I am disturbed that the UK Government, as the major shareholder, were not consulted about the closures either. That is deeply unfortunate and raises a lot of questions.

I am pleased—other Members may not be—for the communities whose banks have been reprieved, but it does nothing for my constituents in North Ayrshire and Arran, who still face the prospect of losing three banks in Saltcoats, Kilbirnie and Kilwinning. Vowing not to close the last bank in town is something that RBS has now sought to disassociate itself from. That sounded good at the time to the PR companies, but it has not bothered to continue—

[John Lamont]

Will the hon. Lady give way?

[Patricia Gibson]

No, I will not. The hon. Gentleman is being extremely rude. As I said, he is driven not by concern about banking communities but by his hatred of the SNP. It really is rather pathetic.

It sounded good to RBS when it said that it would not close the last bank in town, but that has long been abandoned. As a result, Kilwinning—a town of around 16,000 people—now faces the prospect of losing its last bank. We have seen this week that RBS is not deaf to the uproar that the closures have given rise to. Its public image lies in tatters, but it has opened the door an inch to reprieve some branches. I and SNP activists, who have been out every weekend, on Saturdays and Sundays, since after Christmas collecting parliamentary petition signatures to save our banks—having already collected thousands of signatures—now propose to run at the door that has been slightly opened and kick it open wide to save our branches. We will not give up in our quest to save our banks. We bailed out the banks and it is time that they lived up to their moral obligations to our communities.

If the closures go ahead in my constituency, it will bring the number of towns with no bank to six. The towns of Dalry, Stevenston, West Kilbride, Ardrossan and Beith no longer have a bank and, shortly it seems, RBS intends to add Kilwinning to the list. I honestly do not think that any other constituency in the United Kingdom has been so adversely and cruelly hit. Indeed, the banks are stampeding out of Ayrshire at an alarming and staggering rate.

People have talked today about post offices picking up the slack, but the range of services that banks provide are not always available in post offices. Having a corner at the back of a Spar supermarket is no compensation for customers, who will get no privacy and not get the same level of services. Of course, it was only 10 short years ago that our post offices were under attack and stampeding out of our towns.

I cannot overstate the sense of anger and betrayal felt by these and similarly affected communities across the United Kingdom. From a bank that was bailed out by the taxpayer to secure its very survival, due to its own incompetence—a bank that is still 73% owned by the taxpayer—this is a bitter pill to swallow. That pill is made all the more bitter by the fact that, last year, that very bank paid out £16 million in bonuses. The culture of excessive bonuses lives on, while the customer and taxpayer continue to suffer.

The UK Government retain all legislative and regulatory powers in respect of financial services, so they do indeed have the authority to call a halt—a pause—to the devastating round of closures while banks, stakeholders and the UK and Scottish Governments consider how best to take account of the obligation to banking customers and our communities. Whatever the banks may say, they do have an obligation to our communities—a service obligation, a financial obligation and, I would argue, a moral obligation.

Let us be clear: the bank closures mean that the affected communities no longer have access to day-to-day essential banking services. They mean that my constituents in Kilbirnie must undertake a round trip of 18.8 miles to access their new so-called “local” bank, with most relying on public transport to do so. They mean that RBS customers in Saltcoats are being directed to the next RBS, which is a round trip of 12.8 miles, and Kilwinning customers are being asked to undertake a round trip of 6.8 miles to visit their new “local” branch.

All of that is before we even get to the impact on local businesses, which are increasingly finding themselves without access to night safes. If local businesses cannot bank their takings at the end of the business day, they must incur an extra insurance charge for keeping the cash overnight, with all the security implications of that. These small businesses are the backbone of our communities and our local economy. Make no mistake: to leave a town with no bank is financial and social exclusion.

I have been told by RBS that the branches closed in Kilwinning, Saltcoats and Kilbirnie in my constituency will be replaced by mobile banks. That is not what constituents want. The mobile banks are not reliable, are not disability-compliant and are a poor substitute for the presence of a bank in our towns.

We will continue to fight these closures. We will continue to collect our parliamentary petition signatures because RBS must understand that the people of North Ayrshire and Arran, the people of Kilwinning, Saltcoats and Kilbirnie, will not sit quietly and take the poor treatment that has been meted out to them. I urge the Minister to use all the means at his disposal, as the majority shareholder, on behalf of us, the taxpayer, to sort this matter out and order the banks to pause, consult communities and do the right thing. This matter will not go away.

RBS Closures (Argyll and Bute)

John Lamont Excerpts

Wednesday 24th January 2018 Westminster Hall

[Brendan O'Hara]

My hon. Friend makes a very powerful case. Like the Royal Bank of Scotland at the beginning, the UK Government have underestimated the sense of anger within our rural communities. We must keep up the pressure on the UK Government to act, and act swiftly.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

The hon. Gentleman is making a very powerful case, much of which I agree with. In my constituency, I am losing six bank branches. I suspect the anger in my communities is equal to what he is experiencing in Argyll and Bute. Does he share my concerns that the bank is putting too much additional pressure on the post office network, which I do not think has the capacity to deal with that extra custom? Post Office Ltd is saying one thing about what the network can deliver, and post office operators are saying something very different.

[Brendan O'Hara]

The hon. Gentleman is absolutely right. The idea that the post office network in our rural communities can somehow pick up the slack on this is nonsensical. It is an absolute fantasy and it will not work.

Without any consultation whatever, RBS has decided that people in Campbeltown who wish to continue banking with it must now endure a 175-mile round trip to Oban. Alternatively, they could drive an hour to Claonaig, take a 30-minute ferry to Lochranza on Arran and drive over the hills for 40 minutes to bank at the branch in Brodick. RBS customers on the Isle of Bute, in order to remain RBS customers, will be expected to take a ferry to the mainland, get off at Wemyss Bay and drive or get a bus to Largs. No matter which way one looks at it, a visit to the nearest branch of RBS for customers in Campbeltown and Bute will be a day out of their lives.

Worse still is the position of the people of Inveraray. The closure of the RBS branch in Inveraray, despite previous assurances that RBS would not close the last bank in a town, means that there will be absolutely no banking facilities in that town at all. It borders on the unbelievable that a town such as Inveraray, with a booming tourist industry and three good-size hotels, and boasting numerous cafés, bars, restaurants and high-quality clothing outlets—a town that has an estate and a castle that is a magnet for tourists—will be left without a single bank. The Inveraray-based author and journalist, Marian Pallister, who launched her own online petition against the closures, was spot on when she said:

“The Inveraray branch is used by businesses, individuals and charities throughout Mid Argyll. Online banking is not a valid alternative in many rural areas and now businesses and charities will have to make a 75-mile round trip to the nearest RBS branch. Inveraray is a tourist hub and while this closure disadvantages local people, it is a death sentence for the local tourist industry”.

RBS Global Restructuring Group and SMEs

John Lamont Excerpts

Thursday 18th January 2018 Commons Chamber

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I am grateful for the opportunity to speak on an issue that has deeply affected so many small and medium-sized businesses throughout the United Kingdom. The Royal Bank of Scotland should be one of the jewels in the UK’s crown: a principled yet profitable business carrying the great name of Scotland and doing business in every corner of the globe. Perhaps it was something that we could be proud of before 2007, but actions of the bank that have been uncovered since then have lost it almost all its credibility.

The Global Restructuring Group is responsible for much of its now bruised brand image. It was responsible for stripping businesses which were deemed to be perfectly viable. Those are not my words, but the words of the Tomlinson report, which stated:

“GRG artificially distresses otherwise viable businesses. Through such actions, GRG placed businesses on a journey towards administration, receivership and liquidation.”

One of GRG’s tactics was to appoint its own valuers to appraise assets put forward by companies against loans, deliberately undervaluing the assets and then putting them into GRG even if those companies were not behind with their payments. My hon. Friend the Member for Dumfries and Galloway (Mr Jack) described very well the challenges that businesses and individuals have faced in that regard. Anyone can see that that should be absent from business practices in the United Kingdom.

Of course, RBS denies that it made any money from such practices, but we must remember that the senior management of the bank created the circumstances in which it became so desperate to liquidise many of its investments. It must also be pointed out that the Financial Conduct Authority found that GRG’s actions failed to comply with the bank’s own standards. It is only right for the FCA to hold the bank to account and to fight on behalf of customers—business or otherwise.

Unfortunately, such practices are not confined to customers of Royal Bank of Scotland. As many Members may be aware, UK Acorn Finance Ltd is held responsible by many in the agricultural industry for forcing farmers into bankruptcy or eviction. One example is that of Kevin and Angela Holt who farmed in the constituency of my hon. Friend the Member for Moray (Douglas Ross). They are, in their words, victims of a fraudulent loan scheme that led to the loss of their farm. I am sure that there are countless small businesses that see their circumstances reflected in today’s debate.

It is also important to remember the problems that financial difficulties can lead to. It not only leaves a hole in the bank balance, but leads to mental health problems and can cause irreparable damage to families, especially in small businesses. The businesses affected are not faceless corporations, but, in many instances, small family companies supporting local employment and the local economy. I am very grateful to the Government for what they have done in continuing to fight hard to strengthen the financial sector, but more needs to be done.

As I have said, RBS is no stranger to bad news. Bankers’ bonuses, branch closures and bail-outs highlight but a few cases. One needs only to ask some of my constituents for their thoughts on the recent announcements to understand the consequences of its actions on local people and the injustice that they feel. However, the acts of the Global Restructuring Group are perhaps its most intemperate over the past decade, since the beginning of the great recession. It is our duty in this House to stand up for those who have been crushed by the immoral acts of this corporation, which, as we all know, is now owned by the taxpayers of this country.