Dormant Assets Bill [Lords]

John Nicolson Excerpts

2nd reading
Monday 6th December 2021 Commons Chamber

[John Nicolson (Ochil and South Perthshire) (SNP)]

We in the Scottish National party welcome the Bill and the expansion of the dormant assets scheme. The extra £880 million now available as a result is very welcome, especially in what is an extremely difficult time for so many up and down the country. Already the scheme has delivered £745 million for social and environmental initiatives. By expanding the current list of assets that qualify for the scheme, up to £1.7 billion more could be made available.

The Minister will doubtless be aware of the remarks made in the other place about the Bill. Peers wanted clarity on its potential costs and more detailed impact assessments of the expanded scheme. Baroness Barker specifically warned that such details are important so that the scheme does not become a

“piggyback fund for government when times are tough.”—[Official Report, House of Lords, 26 May 2021; Vol. 812, c. 1039.]

Perhaps the Minister can assuage her concerns and give us the detail that she asked for.

It is good to see that the Bill makes some changes to distribution in England; the Secretary of State will have more freedom to spread assets through secondary legislation, thus allowing England to catch up with Scotland and the other devolved nations. As Lord Triesman pointed out in the other place, the example set by the devolved nations through their innovative thinking about how to spend the funds allotted to them provided the impetus for the expansion of the scheme in England through this Bill.

The pandemic has shown that the needs of the population can change dramatically and suddenly. Flexibility in secondary legislation is a useful tool to deal with such change, but we must also ensure adequate consultation and scrutiny. We welcome the requirement for the Secretary of State to launch a public consultation and to consult the National Lottery Community Fund before replacing or changing an order. However, it may also be desirable to expand such consultation beyond that fund and to include the devolved Ministers responsible for spending in their nations and representatives of the voluntary and social enterprise sectors.

It is reassuring that the expanded scheme will focus on reuniting owners with their assets. With the expanded range of qualifying products, it is estimated that £3.7 billion-worth of financial assets lie dormant. With the elderly and vulnerable—especially those without digital skills—among those most likely to lose access or connection to their accounts in an increasingly digitised world, such efforts are vital. That is why we on the SNP Benches welcome the enhanced tracing and verification measures that could lead to the reclamation of as much as £2 billion.

The Bill should be effective, but if we could get clarity from the Minister on some of the points raised here and in the other place, it would be much appreciated.

Dormant Assets Bill [Lords]

John Nicolson Excerpts

Report stage
Monday 31st January 2022 Commons Chamber

[Paul Howell (Sedgefield) (Con)]

I thank my hon. Friends the Members for Devizes (Danny Kruger), and for East Surrey (Claire Coutinho), the hon. Member for Strangford (Jim Shannon) and the right hon. Member for Kingston upon Hull North (Dame Diana Johnson) for the comments they have made already. I cannot state how much I welcome the Bill being brought to the House and how successful and efficient its passage has been. I thank the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), for tabling his amendment to clause 29. It represents an important step towards establishing a community wealth fund that would level up the social fabric of our most left-behind neighbourhoods across England.

I wish to say a few words on behalf of the all-party group. I know that the Government are committed to regenerating communities that suffer from both extreme levels of poverty and high levels of community need—communities such as Ferryhill, Trimdon and Thornley in my Sedgefield constituency, and communities across the country, from the north of England, through the midlands and down to the coastal communities on the south coast where residents often feel forgotten and cut off from support or funding.

I thank the Minister for meeting me and my right hon. Friend the Member for Kingston upon Hull North, my fellow co-chair of the all-party group for left-behind neighbourhoods, to hear our representations and to understand the importance of what we are trying to achieve and how we can address this through the community wealth fund. Together, with other members of our all-party group, I look forward to a continued dialogue with Government and with colleagues across the House and in the other place on how such a fund can quickly be rolled out on swift passage of the Bill and the planned national consultation.

Numerous evidence sessions and research conducted by the all-party group since it was established in June 2020 have shone a light on the high levels of need and deprivation that exist in these communities and neighbourhoods and the issues faced by the residents who live there. Most recently, a report found that the people in these communities live shorter lives and spend more years in ill-health than those in the rest of the country. These findings have rightly captured the interests of national media and are another sobering testament to the fact that action is urgently needed to level up social, economic and environmental outcomes in deprived communities across the country. I look forward to what the levelling-up White Paper has to say about that, and I know that our all-party group will be keenly following those developments.

It is clear that transforming left-behind neighbourhoods is a long-term job. To deliver on that agenda, we need to go beyond physical infrastructure investment—welcome though that is in bringing hope to an area, as I know from my campaign work to restore local rail links such as Ferryhill station. Good local transport provision is key to levelling up, because it boosts connectivity in disconnected areas.

To level up successfully, however, and truly make a long-lasting difference to people’s lives, we must address the rebuilding of social infrastructure. Social infrastructure —places to meet, exchange ideas and take part in civic life—glues communities together. It underpins the vibrant local life that everyone seeks to be part of in their communities; it cements our trust and pride in our local heritage and the places where we live; and it provides us with something to rely on in times of crisis.

As the amendment explains, a community wealth fund would give long-term financial support for the provision of local amenities and other social infrastructure in a way that is led from the bottom up. As was said earlier, we must allow it to be done by people, not to people. As the Government have acknowledged on several occasions during the Bill’s passage, local people are best placed to identify what is needed to make their communities a better place to live.

In our evidence sessions, we heard first-hand the amazing work being done by communities up and down the country, and how powerful an impact local people can have when they work together to improve local outcomes with the right resources and support. We heard truly inspiring stories of communities in neighbourhoods from Bristol to Hartlepool taking the lead in levelling up their local area through widening access to opportunities and employment outcomes for young people, tackling fuel poverty and community led climate action.

Climate action is, of course, an increasingly important focus of activity, given the transition to net zero, and one where left-behind neighbourhoods are particularly at risk of falling further behind as a result of the economic restructuring under way. We therefore need to equip them with the confidence, capacity and resources through patient and long-term support to take action on what matters most to them and to transform their communities for the better. The community wealth fund proposal serves exactly that purpose. It builds on research and learning from previous regeneration policies, which all support the notion that community involvement is essential in achieving lasting change.

As already said, the community wealth fund is supported by more than 470 private, public and civic society organisations that have joined forces to form the community wealth fund alliance to call for the creation of such a fund. To reiterate what I said when presenting my ten-minute rule Bill in December, I believe that it would supercharge the levels of community confidence and capacity in left-behind areas.

In the long run, the social capital that is developed will be reflected in residents’ ability to create and lead sustainable strategies on how they can make change happen locally and tap into the wider opportunities offered on a regional level. In short, the investment would pay significant dividends in the longer run through funding from dormant assets at no extra cost to the public. We are presented with the opportunity to create a permanent endowment for communities in need.

For much of the hard work on the community wealth fund, I thank Local Trust and its team, particularly its chief executive Matt Leach. I know that the work is not over—in many respects, the real work starts now—and that I and others will no doubt be working closely with Local Trust to ensure that the fund becomes a reality.

I finish by thanking the Minister again for tabling the amendment to clause 29. It is heartening to hear the Government emphasise the importance of hyperlocal decision making for levelling up. I look forward to working with the Minister, the Government and our APPG to develop social infrastructure and boost civic pride in communities across the country.

[John Nicolson (Ochil and South Perthshire) (SNP)]

I know that the Westminster press corps has been waiting for something exciting to happen in Parliament today, so I am glad to be able to help to provide it. It is good to see the Secretary of State in her place fresh from her “Channel 4 News” interview triumph.

The SNP welcomes the Bill and the expansion of the dormant assets scheme. The extra £880 million available as a result is welcome. The scheme has already delivered £745 million for social and environmental initiatives. By expanding the list of assets that qualify for the scheme, up to £1.7 billion more could be available for use.

I draw the Minister’s attention to the remarks made about the Bill in the other place, although I am sure that he is aware of them. Peers wanted clarity on its potential costs and more detailed impact assessments for the expanded scheme. Baroness Barker specifically warned that these details were important, so the scheme does not become a

“piggyback fund for government when times are tough.”—[Official Report, House of Lords, 26 May 2021; Vol. 1039, c. 812.]

SNP Members welcome the Labour party amendment proposing an annual assessment of the health and governance of authorised reclaimed funds; this will, I think, help to assuage Baroness Barker’s concerns. Also, as a principle, the more scrutiny is given to this legislation, the better it will function.

It is good, of course, to see that the Bill makes some changes to distribution in England. Now the Secretary of State will have more freedom to spread assets through secondary legislation. That allows England to catch up with Scotland, which already has such an ability. As Lord Triesman highlighted in the other place, it was the example set by the devolved nations, whose innovative thinking in how they spend the funds allotted to them, that provided the impetus for the expansion of the scheme that the Bill presents. What the pandemic has shown is that the needs of the population can change dramatically and suddenly. Flexibility in secondary legislation is a useful tool to deal with that, and we must continue to ensure that there is adequate scrutiny.

We welcome the requirement for the Secretary of State to launch a public consultation and to consult the national lottery. The Community Fund must always be consulted before replacing or changing an order. However, it may be desirable to expand this consultation beyond the national lottery Community Fund and to include devolved Ministers responsible for spending in their nations, and representatives of the voluntary and social enterprise sectors.

It is reassuring to see that the expanded scheme will focus on reuniting owners with their dormant assets. With the expanded range of qualifying products, it is estimated that £3.7 billion-worth of products are lying dormant. For all the good that the schemes do for various charities, it is of the utmost importance that people are reunited with their assets. With the elderly and the vulnerable, especially those without digital skills, among those most likely to lose access or connection to their accounts in an increasingly digitised world, reunification efforts are more important than ever. That is why the SNP welcomes the enhanced tracing and verification measures, which could lead to £2 billion being returned to members of the public.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Nigel Huddleston)]

I thank all right hon. and hon. Members for their contribution to the debate and for the constructive way in which everyone has engaged with the Bill throughout its passage. I thank in particular those who have spoken this evening. My hon. Friend the Member for Devizes (Danny Kruger) has made his points about community wealth funds frequently and passionately, as have the hon. Member for Sedgefield (Paul Howell) and the right hon. Member for Kingston upon Hull North (Dame Diana Johnson), whom I will acknowledge again later. I can confirm for the hon. Member for Strangford (Jim Shannon) that the expansion will cover Northern Ireland. My hon. Friend the Member for East Surrey (Claire Coutinho) again spoke passionately about the impact that dormant assets funding will have on local communities. We should never forget that.

The hon. Member for Ochil and South Perthshire (John Nicolson) mentioned the principle of additionality, as did my opposite numbers on the Labour Front Bench, the hon. Members for Pontypridd (Alex Davies-Jones) and for Manchester, Withington (Jeff Smith). That principle underlies the Bill absolutely and completely. Regarding expansion, the Secretary of State is to conduct periodic reviews—within three years and then again in five years. The hon. Member for Ochil and South Perthshire mentioned that Scotland currently operates on a different basis, and that is one of the reasons why we have sought to expand where dormant assets money can be used.

I particularly thank my opposite numbers on the Labour Front Bench for their constructive contributions. Throughout, we have agreed on the principles. It is nice and good to see a Bill through its various stages with such a degree of consensus. Although we sometimes disagree on elements of detail, on the Bill’s overwhelming purpose and underlying principles there is complete agreement, and I appreciate the constructive way they have engaged with me.

However, I am afraid we do not believe that new clause 1—a proposal we debated in Committee—is necessary, largely on the basis that there is considerable oversight already, as I have explained before. Although the new clause refers to “authorised reclaim funds”, in practice it refers specifically to Reclaim Fund Ltd, as it is currently the only authorised reclaim fund in the United Kingdom. RFL publishes its audited annual reports and accounts on its website annually. In 2019 the Office for National Statistics classified RFL to the central Government subsector, and in April 2021 it therefore became a Treasury-owned arm’s length body.