Food and Drink: UK Economy

John Stevenson Excerpts

Wednesday 1st December 2021 Westminster Hall

[Geraint Davies (in the Chair)]

Before we begin, I remind hon. Members that they are expected to wear face coverings when they are not speaking in the debate, in line with current Government guidance and that of the House of Commons Commission. I remind Members that they are asked by the House to have a covid lateral flow test twice a week if coming on to the parliamentary estate. That can be done either at the testing centre in Portcullis House or at home. Please also give each other and members of staff space when seated, and when entering and leaving the room.

[John Stevenson (Carlisle) (Con)]

I beg to move,

That this House has considered the contribution of food and drink to the UK economy.

It is a pleasure to serve under your chairmanship, Mr Davies. I am delighted that we have the opportunity to debate the importance of the food and drink sector for the UK economy. I also mention that I am the chair of the all-party parliamentary group for food and drink manufacturing.

During the pandemic, we rightly clapped and acknowledged the work and dedication of the medical staff, who did so much for the many people affected by covid. We rightly recognised the commitment of those who continued to work in supermarkets and the many drivers who ensured that the deliveries actually got through. However, there were many other unsung heroes in many different industries and sectors who also helped to ensure that our society continued to function and that life continued in a manageable way.

One such group was the food and drink manufacturing sector. Hon. Members may recall that, at the beginning of the crisis, there was some concern that our food shelves could become empty or the supply of food would be greatly reduced. The adage is that if there was no food available, it would not be long before there was a major crisis, panic buying and potentially something rather worse. That did not happen. Indeed, the factories, sometimes in very difficult circumstances, continued to produce the food and drink that we as a country needed. The deliveries continued to be made, the supermarkets were supplied, the shelves remained full and families continued to shop in the knowledge that there would be food to buy.

There was no panic buying, except—interestingly enough—of toilet roll and pasta, which to this day I do not understand. Nevertheless, that did seem to be something that exercised many people up and down the country, but even that was short-lived. We therefore have a lot to thank the food and drink sector for and, very importantly, all those who work in it. At the time, there was some recognition of their work, and clearly there was a greater awareness of the importance of the food and drink sector, of the vital need to ensure the supply of foods to shops, and of the overall significance of the sector to our society. In many respects, that awareness has sadly disappeared. I believe this is extremely unfortunate. We should be far more aware of the nature of the sector, how important it is, its many strengths, and also its weaknesses. This is about not just the basics in life, such as the supply of food, although that is extremely important, but the real and substantial contribution that the sector makes to our economy, both nationally and locally.

I have a few statistics and facts about the sector. The food and drink sector is the largest manufacturing sector in the United Kingdom. I am amazed at the number of people who are surprised by that. They often think that pharmaceutical, automobile or aerospace would be the largest manufacturing sector, but in reality the food and drink sector is our leading manufacturer.

It has a turnover of more than £104 billion, representing 20% of all UK manufacturing. It contributes over £29 billion to the economy, and directly employs over 440,000 people and thousands more indirectly. Think of the many brands, a large number of which are iconic and international—the very best of British products. Exports exceed £23 billion, going to more than 220 countries and territories, with a huge potential for much more.

We should also be aware of the contribution the sector makes to the local economy. It is often a substantial local employer, which has a significant impact on the performance and growth of local economies, and offers employment and training opportunities to local people.

My constituency of Carlisle is a prime example. Nestlé employs 400 people. It is the largest food and drink company in the world, a significant exporter and a purchaser of much of the milk that is produced by local farmers. The 2 Sisters Food Group employs nearly 1,400 people, and if I were to have a ready-made meal from Marks & Spencer, it would probably have been produced in the factory in Carlisle. McVitie’s, part of Pladis Global, employs nearly 800 people. Talking of brands, Carlisle produces the iconic Carr’s water biscuits and, of course, 6 million custard creams every single day.

These businesses make a huge contribution to the Carlisle economy and the wider regional economy. Think of the spending impact that 2,500 directly employed staff have on the local economy, and those are just the larger employers, as these figures do not include the many smaller businesses.

Indeed, the sector as a whole is incredibly diverse, with over 10,000 manufacturing businesses, most of which are small and medium-sized enterprises. In reality, there are very few large players, which can be both a strength and a weakness for the sector. It means it is a dynamic sector, with much innovation, but at times it also means that the voice of the sector is not heard as much as it should be.

[Sir Greg Knight (East Yorkshire) (Con)]

I congratulate my hon. Friend on securing this important debate. He is making some very interesting points, but does he agree that one of the problems the sector has had in recent times is labour shortages? They do not just affect the retail end of the sector, but the farm gate, with many pig farmers, for example, suffering from a lack of qualified abattoir workmen. Is this not something that needs to be addressed?

[John Stevenson]

My right hon. Friend is absolutely right. Indeed, I will come to that later in my speech, but he has picked up one of the key issues that relates to the sector at the moment, and that extends beyond the food and drink sector, which I fully acknowledge.

The sector can be dynamic, but sometimes the voice of the sector is not heard as much as it should be. This can be a drawback, and something of which the Government should be acutely aware. Just because it does not have the loudest voice, is not the most glamorous sector and does not have a few substantial players with easy access to Government, it is still vital that the industry’s concerns are heard at the very highest level of Government.

I have talked about the economic importance, but I am fully aware of the health issues surrounding this sector as well. I appreciate that we, as a society, have become concerned about obesity and health, and rightly so. To be fair, the industry gets this and is aware of the criticism that is often directed, rightly or wrongly, at them, partly because of their products. However, the issues do not wholly lie with the industry. Indeed, the industry has made huge strides in producing many new products that are healthier and reformulating existing products, and substantial reductions in salt and sugar have helped to improve many of the products.

New products that have been brought to the market often reflect consumers’ interest in these healthier products. I must, therefore, question just how useful schedule 17 to the recent Health and Care Bill will be. The industry is already working hard to improve its products, it co-operates fully with the Government and is receptive to change. However, as a society, we must be realistic and look for other solutions to obesity concerns. We cannot and should not overlook our personal and parental responsibilities. I suspect that the provisions of schedule 17 are unlikely to produce any real improvement, as some people anticipate.

The purpose of this debate is primarily to raise awareness of and the success of the food and drink manufacturing sector, its contribution to our country, what the Government can do to support it, and the challenges it faces in future.

[Sir John Hayes (South Holland and The Deepings) (Con)]

I congratulate my hon. Friend, as has already been said. I know he is a great champion of the British food industry. There is something very straightforward that Government could do: they could ensure that public sector purchasing—the procurement of food—prioritised and favoured domestic produce. We make some wonderful things in this country, yet we continue to import far too much food. That would add to traceability, food security and, frankly, simply back Britain. The Government should buy British, and I hope the Minister will confirm that that is exactly what they intend to do.

[John Stevenson]

I very much agree. The two key parts of Government policy in terms of security are energy security and food security. At present, we probably import more food than we should.

I want gently to challenge the Government on some of their attitudes and thinking towards this sector. First, what will the Government do to help promote the sector domestically and internationally?

[James Daly (Bury North) (Con)]

I am sorry to interrupt my hon. Friend, who is making an excellent speech. One of the sectors in the food economy that concerns me is fishing. As my right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes) said, in this country we do not buy our own produce. How can we encourage people in this country to buy the brilliant seafood we produce all round the coastline, so that it is not reliant on a foreign market?

[John Stevenson]

I am interested to hear what the Minister has to say on that point. How can the Government help our industry both domestically and by creating greater opportunities in the export market? We need to continue to see the success of the industry and exploit the opportunities in both our domestic market, as my hon. Friend the Member for Bury North (James Daly) just said, and in exports.

The development of new products, the competitiveness of the sector and the opportunity to export are vital to our country. However, there is sometimes a feeling that other countries promote this sector far better than we do. I am interested to hear what plans the Minister has to improve that.

The Minister knows that hers is a sponsoring Department for the food and drink sector. Therefore, will the Department with such responsibility challenge in a more constructive way some of the unreasonable pressures that sometimes emerge from the health lobby? As I said, the sector has made great strides on the health issue and does work with Government. Everybody accepts that more needs to be done, but a realistic approach is fundamental.

The supply chain is critical to all industries and the food and drink sector is no different. The appointment of Sir David Lewis as the new supply chain adviser is welcome. I know that the Food and Drink Federation will fully engage with the new supply chain advisory group. It is an outstanding advocate for the industry that works well with Ministers. I am sure the Minister will comment on that in her remarks.

None the less, there are concerns about the supply of food and the inflationary pressures in the supply chain. Those will undoubtedly have an impact on the consumer in due course. That leads on to issues surrounding our trading relationship with the EU. There are concerns about the border controls on exports, but also the very real issue of shortage of appropriate labour. As we know, there is a shortage of HGV drivers, farm workers and factory workers. I can easily give local examples of the firms I have already mentioned and the issues they have with securing employment. We also have pressures in the tourist industry, which compounds the problem in places such as Cumbria.

[Nigel Mills (Amber Valley) (Con)]

I agree with my hon. Friend on this point: the shortage of labour is a real problem for employers in my constituency at this time of year, as they are quite busy in the run-up to Christmas. Does he agree that the industry needs help to increase its productivity and invest in the new machinery that it needs, and that in the short term it probably needs some access to additional labour to help it produce the products that we all want to see in the shops?

[John Stevenson]

I very much agree with my hon. Friend; it is about striking a balance between the two. Clearly, at this moment in time there is a shortage of labour, and the industry needs to secure that labour if at all possible. However, I think the industry itself would accept that driving productivity is equally important, and that through productivity it can quite often end up needing fewer employees while being a much more productive sector. My hon. Friend will know from our visits to factories that the food and drink sector is an incredibly innovative and productive sector overall. It is therefore vital that industry and Government work together, so I would be interested to know what actions the Government are taking on the issues I have already mentioned.

As I have already said, the food and drink sector is a hugely important part of our economy. It employs a large number of people and contributes significantly to our economy, but there is the danger that the Government add more and more cost and regulation, which endangers its success. A small but significant example is the definition of “small and medium-sized enterprise” in the Health and Social Care Bill, which could have a huge impact on UK businesses and give a competitive advantage to foreign competition.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I congratulate my hon. Friend on securing the debate. One area in which I am sure much of the UK food and drink industry would welcome greater support from Government is that of honest food labelling. As it stands, food could be farmed in Argentina or elsewhere overseas, but packaged in the UK and still labelled as UK produce. Does he agree that the Government need to look at that area, so that we can back British farmers and British food producers more effectively and make sure we have informed consumers who can back our food producers in the shops?

[John Stevenson]

My hon. Friend makes a valid point. Interestingly, food labelling could potentially give us an advantage as a country when selling those products: the UK label, the Union Jack, has great resonance with many overseas consumers as well as our own domestic consumers.

On the cost and regulatory side, we also have the prospect of the extended producer responsibility. The sentiment behind it may be sensible, but the additional cost to the industry will potentially have serious consequences. Have the Government fully thought through the very real cost implications? I appreciate that the relevant primary legislation, the Environment Act 2021, has already passed, but it is the secondary legislation that will determine the detail. As the Minister will know, the industry is concerned about the scope, timescale and implementation of those regulations. It believes that the costs have already risen and could reach £2.7 billion for the industry, which will inevitably be passed on to the consumer. Indeed, it is estimated that each household will face a £75 increase in its annual food bill. Is that something that the Government are happy with? If not, will they work with the industry—particularly, as I have already mentioned, the FDF—to ensure that the regulation and costs are proportionate, and that the industry can absorb them without losing its competitiveness? If it cannot, there is a real danger that the regulations could backfire and be detrimental to an important sector of our economy.

In conclusion, I look forward to hearing from the Minister on the specific points I have raised. I look forward to her comments on how she intends to properly and fully support what is one of the unsung successful sectors of our country, but also one of the most important, as has been conclusively demonstrated during the pandemic through the industry’s performance in making sure that we continue to be fed at a very difficult time. I also hope that the Minister and her Department will fully recognise the importance of this sector, celebrate its successes, and truly be a champion of the industry.

[Several hon. Members rose—]

--- Later in debate ---

[John Stevenson]

I thank hon. Members for participating in this debate. I have often said that this industry affects us nationally, but equally importantly it affects us at the local level. As individual constituency MPs, we all know that the food and drink sector has an impact in virtually every constituency up and down the country, which was demonstrated by the contributions that people have made today.

I am grateful to the Minister for her speech at the end of the debate and for the comments that she made. I look forward to challenging her on some of the issues that we touched on and to maybe having further conversations with her. But as I say, I thank her for her contribution to the debate and I will pass on her good wishes to Ian Wright, who I will hopefully see very shortly as he departs from the FDF. I think he has been a great advocate for the food and drink sector, and I am sure that his successor will continue the good work that he has done.

Question put and agreed to.

Resolved,

That this House has considered the contribution of food and drink to the UK economy.

Oral Answers to Questions

John Stevenson Excerpts

Thursday 17th June 2021 Commons Chamber

[Rebecca Pow]

I welcome the hon. Lady to her place. This is the first time that we have had questions in the Chamber together.

This is a tremendous commitment by the Government to halt the decline of nature by 2030. No other country has done anything like this, so we are totally committed to the target. All the framework that we are putting in place will build towards this nature recovery: our local nature recovery strategies; our national nature recovery strategies; our 30% of land and sea protected; our 10 new large-scale landscape recovery schemes; and the entire environmental land management system. I could go on and on. I do not think that I could reiterate more the Government’s commitment to that. We will be consulting on the exact detail of the target in 2022, along with all the other targets in the Environment Bill.

[John Stevenson (Carlisle) (Con) [V]]

What steps he is taking to help ensure the competitiveness of the food and drink manufacturing sector.

As the Minister knows, the food and drinks manufacturing sector is the largest in this country, employing more than 400,000 people directly. It is a major innovator and exporter. My concern is that the sector may get too much red tape and regulation. If we look at the obesity strategy, for example, there could be a lot of regulation with very little gain. Can she reassure me that there will be proper scrutiny of any legislation, and that the minimum burdens will be put on this sector, which is vital to our economy?

[Mr Speaker]

Can you pick up the substantive question, Minister? That was my fault.

Flooding

John Stevenson Excerpts

Wednesday 4th March 2020 Commons Chamber

[Andrew Percy (Brigg and Goole) (Con)]

The constituency in which I live and am proud to serve is the most flood-prone constituency in the country, as it is constituted on land drained by the Dutch some 400 years ago, many of whose descendants continue to live in our area. We are at the bottom of the catchment, so I agree 100% with what the hon. Member for Angus (Dave Doogan) says about the need for better management upstream.

We have seen numerous events in recent years, whether the tidal surge of 2013, the flooding of 2010 and 2011 in Goole or the flooding in December, which happened on a smaller scale. Whether in Crowle, South Ferriby or Burringham, or whether in Snaith, Cowick or Gowdall at the moment, we are repeatedly hit by incidents of flooding.

I begin by paying tribute to my constituents and how they are currently responding to the incredible deluge in Snaith and Cowick. I have been involved in flooding for many years as an MP, parish councillor and councillor, and I have never seen the inundation of water that we now see in the washlands of the River Aire.

My constituents are responding in an incredible way. The Snaith church ladies and our wonderful vicar, Eleanor Robertshaw—I sometimes call her the “commie vicar” but we are good friends—have been providing 24/7 support to those who have been evacuated and to emergency service responders, with free food being provided by many businesses, including the Supreme coffee house in Goole. The response of the community has been incredible.

I thank Vicky Whiteley and Snaith and Cowick Town Council, the Snaith sports hall voluntary team and Andy McLachlan of the Cowick and Snaith internal drainage board for their work in supporting my constituents. Andy and I have worked together on many flooding events over the years, and the response from the drainage board has, as ever, been first class. I also wish to thank the fire and rescue service, including those who have come in from elsewhere, from places such as Cheshire and West Yorkshire, and our ambulance service, which has been on hand with permanent resources. I should also thank the very many residents involved, the council staff and the Environment Agency staff. The response has been incredible. We are dealing with 4 million cubic metres of water, or 800 million gallons, still there, in an area below sea level. We are defended by hundreds of miles of defence banks in our area, and getting that away will be a big challenge.

[John Stevenson (Carlisle) (Con)]

Although we must not be complacent, does my hon. Friend recognise that in some parts of the country there have been successes? In the Carlisle area, through the work of the EA, the councils and the voluntary sector, and the success of the defences, we managed to avoided being flooded this year.

[Andrew Percy]

Indeed. We have not wanted for money for defence funding in recent years, including in Snaith, the community that is currently flooded. Only in 2015, millions of pounds of defence improvements were made, through the piling of the Snaith primary defence bank, but that has been overtopped this time, as have our secondary defences, on which we rely to keep us dry. It is true to say that in some places these schemes have worked, and we have a scheme under way in South Ferriby, but the water coming down the catchment in this latest incident has been on a scale we have never seen before, just as the 2013 surge then was.

I agree with some of what was said by the shadow Secretary of State, the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard). He is a nice guy, one of my favourite shadow Secretaries of State. Some of the others are a bit bonkers, and I know that he agrees with me on that. I agree with much of what he said about the need to review certain things, but he then went on to try to make some cheap political points about what is going on at the moment. There are things we need to do differently, but I am not convinced that diverting millions of pounds, which could otherwise go to flood defences, to a massive inquiry is necessarily the best way forward. I will say something on that in a moment.

What we need now in my constituency is immediate funding, into the future, to look at what we can do for the defences that have been so overrun on this occasion. After the 2013 tidal surge, additional funding was made available to the communities in my area that had been devastated by that surge to allow them to take immediate defence action in the year or two afterwards. That was outside the normal funding rules, and we benefited from that in Reedness, which was overwhelmed in the tidal surge, with immediate action to shore up and improve the defence there. So may we please look at that issue?

May we also look at the funding for the section 19 inquiries that are already under way. My local East Riding of Yorkshire Council, because it has faced so many incidents in recent months, is now engaged in about four or five different inquiries, and funding that is a huge challenge for the local authority. A section 19 inquiry into the flooding in the Snaith and Cowick washlands is under way, but we need funding for that. The recovery of costs is also an issue. Heating Snaith priory church has already cost the church about £700 to £800, and possibly more. We are all doing what we can to get donations in for that, and the Bellwin scheme might cover it, but there are direct costs here to the town council and to the church and sports hall—voluntary organisations—for the costs they have borne in being open 24 hours a day and providing support to those who have been evacuated.

Business support is also an issue. I served on the Committee for the Flood Re Bill. Indeed, in 2013 I had to leave the Committee because of the flood warnings in place in my constituency, including warnings for my own house, when that tidal surge hit. We need extra support in terms of business insurance. I do not have time to say everything I wanted to stay, but I beg that the national funding formula is looked at. We are at the bottom of the catchment and we get everybody’s water; that water is coming to us, whether we like it or not. Although the current formula provides us with the best defences and highest standards, it is not taking account of the number of properties we have versus the risk we face. We need a change to that. We also need to look at the EA’s role in flooding and whether we need a separate body. We need to examine the Flood Re scheme. We need to fund the national flood resilience centre, in my area, the bid for which is with the Government—I have talked about that before. Finally, we need to look at planning and at maintenance.

Plastic Food and Drink Packaging

John Stevenson Excerpts

Thursday 24th October 2019 Westminster Hall

[Neil Parish]

The hon. Gentleman is exactly right. We must ensure that we explain what we are doing and what it will achieve, and that the public buy into it. I had one of my local schools come in the other day from Axminster, and they said, “What can we do for the environment?” I said, “Why don’t we work to get a water fountain in the middle of Axminster, so that you can refill your bottles rather than buying new plastic ones?”

Schools and others are buying into all this, and students go home and say to their parents, “Why haven’t you recycled this? What have you done?” There is nothing like children being critical of their parents. This is all good stuff, and I think it will work, but we need to work together to make things similar across the country—I keep repeating that, because otherwise people do not actually know what to do.

Our plastic food and drink packaging inquiry also looked at the alternative materials being used instead of plastics. Some were conventional materials, such as paper, and others were more novel, such as compostable plastics. It is easy to think that the solution is to ban plastics, particularly single-use plastics, but, as always, the truth is more complicated. We need to think about what replaces those plastics, and whether they are actually better for the environment.

The society we live in now is in danger of just doing things that make us all feel better—it is right that we do those things, but they must actually be better for the environment and not worse. We need to look at that very carefully. For example, replacing plastic with heavier paper or glass could increase the carbon emissions associated with transporting those products. Compostable plastics are becoming more common, and hon. Members will have noted that here on the estate we have switched towards compostable packaging in our catering facilities. They have probably seen it.

The downside of compostables is that they require a separate waste stream so that they can be industrially composted. They need to reach 60° before they actually compost, and if we are not careful they can end up contaminating recycling, if there are non-compostable plastics as well. They work well at a pop festival or an event where they can all be collected, but when they are mixed, it can be a problem. We found throughout the inquiry that there is a real lack of consumer understanding of waste infrastructure. On this point, we have recommended supporting compostables for “closed loop” environments such as here in Parliament, where we can better control how they are disposed of. That is essential.

The Government and industry have focused on recycling and replacing plastic packaging, but less emphasis has been placed on reducing plastics in the first place. Yet, as we know from health issues, prevention is often better than cure. We therefore looked at how to reduce the amount of single-use plastics that we use. I ask the question, “Do we always need to wrap our carrots and potatoes?” We do not. Other vegetables such as cucumbers perhaps need to be wrapped in plastic so that they last longer. We need to be thoughtful about all these things.

Consumers are increasingly interested in reusable and refillable packaging. We have already seen the shift from disposable bottles and coffee cups towards refillable drinks containers, and that is very good news. Some retailers are experimenting with refillable packaging for food too, which would mean taking our own containers when we go shopping, just as most of us now take reusable carrier bags. We must also ensure that they are clean and that retailers are able to put food in them with confidence. Some vegetables, as I said, will keep longer if wrapped in plastic, but others can be sold loose.

However, refillable packaging is a bit trickier, because it will require a huge shift in the way we shop and consume. People want to use less plastic, but they also like to maintain their lifestyle, so it is a question of getting this exactly right. We like the freedom of a disposable, on-the-go culture, and we do not all have time to remember to wash and bring our containers when we go to a supermarket. On top of that, there are questions about how many times a container would need to be reused before it becomes environmentally better than single-use packaging. We have therefore called for the Government and the Waste and Resources Action Programme to take a closer look at refillable packaging systems and find out what actually works.

[John Stevenson (Carlisle) (Con)]

As my hon. Friend will know, the food and drinks manufacturing sector is the largest manufacturing sector in our country. It is very innovative, it is a big employer and exporter, and it clearly has a major role to play in the reduction of the use of plastics. Does he agree that it is important that the Government work with the industry to look for solutions, rather than trying to impose solutions on it, as those might not actually work?

[Neil Parish]

I thank my hon. Friend for that intervention. He does a great deal of work with the food and drink sector, and he is right. It is a question not only of working with the food and drink sector in this country, but of imports. As we change things—as we start to put taxes on plastic, and so on—we must ensure that our businesses here are not affected more than businesses that make the goods that we import. That is very important, and I am certain that the Minister has taken a great deal of notice of what my hon. Friend has said.

We need to take the industry with us, because they are the ones who will create the packaging in the first place and will then need to have a method of disposal through the retail system; they will need to work with retailers and consumers to ensure that we get it right.

To conclude, we in Parliament need to lead by example, by removing all single-use packaging from our catering facilities. Will the Minister work with House authorities to help us achieve a plastic-free Parliament?

Oral Answers to Questions

John Stevenson Excerpts

Thursday 26th October 2017 Commons Chamber

[George Eustice]

We regularly meet the SAWS transition group, as I said, and we work closely with Home Office officials on this. The Home Office has established a review by the Migration Advisory Committee. Indeed, its call for evidence closes this week—on 27 October. Over the past month, we have been encouraging all interested parties to contribute to that review.

[John Stevenson (Carlisle) (Con)]

There is a lot of discussion about the farming and agricultural sector but, as the Minister will know, the Department is also responsible for food and drink manufacturing, which is the largest manufacturing sector and also a very large employer. Will he assure me that that sector will not be overlooked?

[George Eustice]

I assure my hon. Friend that I regularly meet food processing companies and food manufacturers. He is right that some sectors, notably fish processing and meat processing, have become very reliant on east European labour, particularly over the past 10 years. We are ensuring that all the information provided by those sectors is fed back into the review that is being undertaken by the Home Office.

Flood Re Insurance Scheme

John Stevenson Excerpts

Tuesday 6th December 2016 Westminster Hall

[John Stevenson (Carlisle) (Con)]

I beg to move,

That this House has considered the Flood Re insurance scheme.

It is a pleasure to serve under your chairmanship today, Mr Hollobone. I am delighted to have the opportunity to move the motion.

Back in 2005, Carlisle was badly affected by floods, following which substantial investment was made in flood defences. By December 2015, the view was that Carlisle was probably safe from further floods and would not be affected. Exactly one year ago today, however, Storm Desmond struck the United Kingdom and in particular Cumbria. It was an extraordinary weather event, and the floods had a profound effect on our city.

For the record, the emergency services were absolutely brilliant. We must also recognise the contribution of individuals—friends, families, strangers—and communities. They all did a terrific job. I acknowledge, too, the contribution of Government. Central Government and local government rose equally to the challenge of the times, giving great support, manpower and assistance to the community.

To give one small example, the week after the floods I asked the then Chancellor at Prime Minister’s questions if he would support the Cumbria Community Foundation. He indicated that he would match any funding raised. The foundation subsequently raised £5 million, which meant that, with the matched funding from central Government, £10 million was available, helping people enormously throughout Cumbria to recover from the floods. Work by the Environment Agency and the Cumbria Community Foundation is still going on, and people are gradually getting back into their homes. For the future, the Government have also committed a further £25 million to flood defences, which I am sure the EA will invest in and around Carlisle over the next few years.

What of the impact of Storm Desmond? From a Carlisle perspective—not even Cumbria, just Carlisle—more than 2,000 individual homes were directly affected. The knock-on impact on families, friends and the wider city was considerable. Furthermore, hundreds of businesses were affected, ranging from small, one or two-employee businesses to large factories such as McVitie’s, which has more than 800 staff—I am delighted that it is back up in production now.

Nor should we forget the side effects of the floods on sporting facilities. Carlisle lost its tennis, rugby, squash, football, cricket, bowls and athletics facilities. The impact of that on the wider community is quite extraordinary. Furthermore, many people do not appreciate that three secondary schools were also affected. One of them has closed at its original site and is looking to move to a different location. The impact on Carlisle, its community, individuals, families, businesses, schools and social clubs, can therefore be appreciated. The effect was dramatic and is still ongoing.

It is important to set the scene for the Minister and explain what happened in Carlisle as a result of the floods then and subsequently. However, the purpose of today’s debate is to address one particular aspect of flooding, namely Flood Re, which I will talk about from my perspective. A number of my colleagues are present today, and they will have their own views and issues to do with their own local communities, including the impact that Flood Re may or may not have had on individual households and the wider community.

For the record, Flood Re was an excellent bit of thinking by the Government and the insurance industry. Overall, it has been a great success. It took a number of years to get there; nevertheless, it was an inspired bit of thinking by the industry and Government, which reached a sensible compromise that has been hugely beneficial to many people up and down the country. The statistics are starting to tell the story about the number of people who managed to get insurance under the Flood Re regime.

An important thing from the Carlisle perspective was that the 2015 floods came, in many respects, unexpectedly—given what had happened in 2005 and the subsequent work on flood defences. At the time the community was badly affected and morale was low, but the one thing that gave people a little confidence was that through the Flood Re scheme they knew they could get insurance. That was vital for individuals and householders. I congratulate the Government and the insurance industry on Flood Re, because it is a job well done.

Therefore I am not here to be negative; I am here to be constructive. As with any new idea or piece of legislation passed by the House, however, sometimes issues can be overlooked, particular circumstances not taken into consideration, or judgment calls by the Government or the industry might need some adjustment or further thought. Perhaps the Government need to review the Flood Re regime and make some adjustment to it for the future.

I will concentrate on the specific issue of long leaseholders, although I accept that there are other issues with regards to leaseholds and so on. For example, there is what I call the accidental landlord—someone who for whatever reason, perhaps a job, might have to move to a different part of the country. Such people might not be able to sell their house, or they do not want to because they intend to move back to the area, so they lease the property out while purchasing or living elsewhere. That is clearly an issue, because they would not be able to get Flood Re insurance for the house they have vacated. That is a side issue for me, today in particular, but it is worth the Government looking at it.

I will concentrate on the long leaseholder. The purpose of Flood Re, as I understand it, is to help owner-occupiers—those who own their own principal private residence—not commercial owners. I fully understand the thinking about commercial owners, and in many respects I accept that.

[Seema Kennedy (South Ribble) (Con)]

I thank my hon. Friend for securing the debate. He is always a great champion of Carlisle and the north-west. May I make a point about non-commercial, community assets? On Boxing Day in my constituency, the village of Croston was badly flooded by Storm Eva, but Croston community centre is not eligible for assistance under the Flood Re scheme and it has been quoted excess of £35,000. The future of the centre, which of course was a hub of activity in the floods, is now unviable. I know my hon. Friend is concentrating on long leaseholders, but does he have anything to say about that?

[John Stevenson]

I have some sympathy with what my hon. Friend says. In Carlisle, the sporting facilities were badly affected and they have ongoing issues with their insurance. She has raised a similar issue, which the Minister might wish to address when she sums up.

[Craig Whittaker (Calder Valley) (Con)]

My constituency, including several thousand homes and several thousand businesses, was also badly hit. Last weekend I met some residents of a block of 10 leasehold flats, next door to seven bungalows. The bungalows are eligible for Flood Re, but the 10 leasehold flats are not—one resident had bought a flat because they could not afford a bungalow. Does my hon. Friend agree that the £50,000 excess that each flat individually is being charged for flood insurance is excessive? Does he agree that Flood Re should be relooked at for that area of private residents?

[John Stevenson]

My hon. Friend is in many respects raising the very issue that I am about to deal with, so I obviously have a great deal of sympathy. Again, it will be interesting to hear what the Minister says about that point.

The real issue concerns long leaseholders who live in a property that is in effect their principal private residence—it is where they live, have their family and community, and so on. To all intents and purposes they are homeowners, but for a variety of legal and technical reasons they do not own the freehold—they are long leaseholders, but they do not own the freehold.

A group of long leaseholders will have a lessor, which is usually a management company. The management company owns the freehold and individuals take a lease on the property. Often the management company is in fact owned by the leaseholders. Leases may be for 999 years, and the freeholder is the management company, which would control it from there. They would be responsible for the communal areas, which could include grass cutting and roads, and may be responsible for parts of the fabric of the property, depending on the nature of the leasehold interests—whether it is a tenement flat going upwards or a group of properties next to each other. There will be variations, depending on the structure of the agreement at the outset. Interestingly enough, the landlord will be invariably responsible for ensuring that covenants between leaseholders are enforced to ensure that they comply with certain requirements under the terms of the leases.

It is interesting that the Flood Re legislation already allows for that set-up to a certain extent. It is allowed for properties of three flats, and three only. We could therefore have a situation where a landlord occupied one of the three properties—admittedly, they would have to live in one of them—and had another two on leasehold that are covered by Flood Re.

I will read from a letter from someone in the circumstances that I have raised. The freehold area is known as Willowbank, and he says:

“Willowbank is owned by a company, but that company is owned by the 29 leaseholders. The company has no income and no reserves. It makes no profit and pays no dividend. The two directors are paid neither a salary nor expenses.”

In many respects, Flood Re was there to help people like that. They are principal private occupiers who own their properties that are effectively freehold, but for whatever technical reason they are called leasehold and not covered by the legislation.

The legislation is meant to cover the whole of the United Kingdom, which includes Scotland, and in Scotland they have tenement blocks. As I understand it, the set-up under Scottish legislation is similar, but the tenement blocks, which are similar to the scenario I have set out, are covered by Flood Re legislation. I genuinely believe that it was not the intention of the legislation or of Parliament to exclude those I have described from Flood Re. I think the goal was to help secure the insurance requirements for people in those circumstances.

[Mrs Helen Grant (Maidstone and The Weald) (Con)]

I want to come in on the positive aspects of Flood Re. Having grown up in Carlisle, I would also like to say that it was horrific and heartbreaking to see so much of the city knee deep or worse in water. I hope that most people have fully recovered.

More positively, Flood Re has made a real difference to many in my constituency, who have seen reduced premiums, reduced excesses and insurance made available when it was not before. Notwithstanding my hon. Friend’s reservations, will he commend the Government on taking such positive action and remind them that many businesses are still worried and in need of help?

[John Stevenson]

I agree wholeheartedly with my hon. Friend. Flood Re has been a success. I have seen that in my constituency, where people now have confidence that their house will be insured. What I am trying to get at is a small group of people. In the setting I mentioned earlier, 29 houses were involved and in another scheme in Carlisle there are, I think, 68, but there will not be many other than those. I suspect that there will not be too many in such circumstances in the flood areas up and down the country, so most people will be able to get the appropriate cover, which, as she rightly says, is a positive.

[Mr Andrew Smith (Oxford East) (Lab)]

The hon. Gentleman is being generous in giving way. I, too, congratulate him on this important debate, which will be welcomed by his constituents and by everybody who has been seriously affected by flooding. Has he examined the proposal recently launched by the British Insurance Brokers Association that is intended for commercial properties and which I understand will also cover long lets? Is there not a danger, though, that because premiums are calculated on specifically targeted risk, they might end up as unaffordable for people in long-lease properties?

[John Stevenson]

The right hon. Gentleman raises an interesting point. I am aware of the proposal with regards to commercial properties, which may be a way forward for them. I have concentrated on a narrow point with regards to the circumstances surrounding Flood Re.

To conclude, will the Minister bring forward a constructive review of Flood Re? Will she consult Flood Re and the insurance industry? Will she listen to the concerns of homeowners in my constituency who genuinely feel that they are being let down by the legislation and are unable to get that security and insurance for flood? It is an ongoing concern for them that if we get another Storm Desmond, they will not necessarily have the money to refurbish their properties. I do not think that is the intention of the legislation. I hope the Minister will take on board the arguments that I have set out about the legislation and will acknowledge that there was an oversight, or that something was missed when it was considered, and that it would be appropriate to bring forward primary or secondary legislation to expand Flood Re to cover that small group. That would assist a small group of people in my constituency, but it would be hugely beneficial and give them confidence for the future.

Oral Answers to Questions

John Stevenson Excerpts

Thursday 7th July 2016 Commons Chamber

[John Stevenson (Carlisle) (Con)]

T2. Following the floods in Carlisle, I am concerned that a group of leaseholders will not be able to get insurance under Flood Re. They consist of 68 long leaseholders with a management company as the freeholder with responsibility for insurance. That management company has not been able to obtain insurance so far. Will the Minister look into the issue and consider amending the legislation if necessary?

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Rory Stewart)]

In addition to welcoming the shadow Secretary of State to her position, may I also welcome my friend the hon. Member for Newport West (Paul Flynn) to his position?

As for the flooding in Carlisle, my hon. Friend the Member for Carlisle (John Stevenson) is a great champion of his constituency. If there is an individual leasehold property, it would be covered with affordable insurance under Flood Re. Unfortunately, when there is a larger number of properties, such as the more than 60 properties that the landlord has in this case, it would be classified as commercial insurance and would require a bespoke, tailored commercial insurance product from the insurance industry. I am happy to look at the individual case, and the British Insurance Brokers Association is also coming up with tailored products exactly to address such commercial risks.

Flooding

John Stevenson Excerpts

Wednesday 6th January 2016 Commons Chamber

[John Stevenson (Carlisle) (Con)]

First, may I reiterate my thanks to not only the emergency services, but the families, friends, neighbours and communities who did so much during the floods to help the people of my constituency who were directly and, indeed, indirectly affected? I was also very pleased that the Prime Minister came to Carlisle immediately after the initial floods to see the issues for himself. That certainly set the tone within Government, and I fully recognise that Ministers have been up to Cumbria on a regular basis and have been very supportive, helpful and proactive in their response. I want to give particular mention to the floods Minister, my parliamentary neighbour the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Penrith and The Border (Rory Stewart), who has been extremely busy both as a Minister and in his own constituency.

I can only speak from my own experience of what the Government have done. I wrote to the Prime Minister immediately after the event, asking for support for the Cumbria Community Foundation. The Chancellor announced that the Government would give matched funding of £1 million, which has subsequently been increased to £2 million. I am very pleased that the foundation has also managed to raise £2 million itself, so we will have at least £4 million to help many families and individuals who have experienced great difficulties.

The Government have also introduced the Bellwin scheme, which is at 100%, not 85%, and announced £50 million to improve properties for future flood resilience and prevention; £5 million to support affected businesses; £40 million for transport infrastructure; and, of course, rate relief for both residential and business properties.

My office is already actively dealing with a number of queries from constituents as a result of the floods, which have had three principal effects on Carlisle. First, more than 2,000 residential properties have been affected—many, sadly, for the second time—but people have proved remarkably resilient and determined, and they are committed to getting back into their homes as quickly as possible. Secondly, it is vital that businesses recover as quickly as they can and get back up and trading, and that economic confidence returns to our city as soon as possible. Thirdly, education is often the forgotten sector, but three secondary schools and 3,000 pupils were affected, with one of those schools facing long-term issues. I am therefore very pleased that the Secretary of State for Education will visit, and I am grateful for her Department’s proactive support in responding to my calls for assistance.

A more long-term approach needs to be taken to the issue of flooding. The impact of flooding policy will affect many future Parliaments and Governments of different political colours. We should therefore consider long-term solutions, policies and initiatives to help our communities. The Government have already started that work with a six-year budget, and I welcome the announcement of a new Cumbrian floods partnership, which will consider all possible improvements to flood defences and flood prevention in Cumbria. Clearly, we need to look at all aspects—flood defences, prevention and resilience—and accept that there is no one solution for the whole country. Each area needs to be considered on an individual basis.

As for today’s motion, I have to say that I am disappointed with the Opposition’s approach. It would have been far better had they been more constructive and recognised that no policy or flood scheme is perfect and that there is a limit to the amount of resource that can be spent. Cumbria is a prime example of that. Under the last Labour Government, £50 million was spent on flood defences. Some of the defences worked and some did not. Was that the fault of the Labour Government? Let us have a constructive debate about the future of floods policy and do the right thing for our constituents.

Flooding

John Stevenson Excerpts

Tuesday 5th January 2016 Commons Chamber

[Elizabeth Truss]

We are investing £80 million in defences for the Humber. I know there are further ongoing discussions with local MPs. We have to ensure that through our £2.3 billion budget we are fair to people across the country. There is a formula for making determinations, and one thing we shall look at in the national resilience review is how that formula works and how funding is allocated. Until then, we have to make sure that we are fair using the existing formula.

[John Stevenson (Carlisle) (Con)]

I express my thanks to the Government and Ministers for their collective response to the floods. It was prompt, and I firmly believe it has been constructive and helpful to the people of Carlisle and Cumbria. However, will the Secretary of State give my constituents an assurance that not next week, not next month, but in six or 12 months’ time, she will ensure that the Government are still offering support and help that flooded communities and businesses might still need?

Climate Change and Flooding

John Stevenson Excerpts

Tuesday 15th December 2015 Commons Chamber

[Kerry McCarthy]

I want to make some progress now so that Back Benchers who want to speak about what happened in their constituencies will be able to do so.

Last week, the Environment Secretary agreed with me about the extreme weather patterns and the link with climate change. The Government have conceded that the risks might have been underestimated, yet it has now emerged that they are not even using the most up-to-date information. I hope that the Environment Secretary will be able to tell us why the Environment Agency’s flood risk guidance, published in 2013, is based on forecasts from 2006—despite new research in 2011 indicating that river flows could be much greater due to climate change. Flood defence plans are modelled on the medium climate scenarios rather than the high climate change pathway.

Perhaps the Government want to ignore the high emission scenarios because that would mean spending £300 million more, but the costs associated with ignoring the evidence are potentially so much greater. The national security risk assessment cites flood risk to the UK as a tier 1 priority risk, alongside terrorism and cyberattacks. By focusing on the more optimistic projections, the Government are wilfully neglecting their responsibilities on climate change mitigation and adaptation.

As the rest of the work acknowledged this weekend, simply ignoring climate change will not make it go away, yet for two years the UK was hampered by having a climate change denier as Environment Secretary. It is even rumoured that he sought to replace the words “climate change” with the word “weather” in every single DEFRA document, and that he had to have it explained to him that they were not quite the same thing. What is certainly true is that under his stewardship spending on climate change adaptation halved, even after DEFRA’s climate change staffing had dropped from 38 to six people.

Thankfully, the current Environment Secretary is less hostile on this issue, although perhaps not very interested until now, and she will have our full support if her adaptation policies are guided by the scientific evidence and by expert advice. As such, we look forward to hearing more details on the national flood resilience review. I welcome the confirmation that the Cumbrian floods partnership will be looking at upstream options, and I hope these will be included in the resilience review.

A focus on the role of the natural environment in reducing flood risk is, unfortunately, long overdue. I see in his place the Under-Secretary of State for Environment, Food and Rural Affairs, the hon. Member for Penrith and The Border (Rory Stewart). His constituency was badly affected, and he did a huge amount of work on the ground in Cumbria over the past few weeks, so I am sure he has very much taken that point on board.

[John Stevenson (Carlisle) (Con)]

Talking of national resilience, does the hon. Lady think it was a failure of the last Labour Government not to have done exactly the same in 2005? In Carlisle, for example, we have a sub-station in a floodplain area that was flooded in 2005. Fortunately, due to the hard work of the emergency services, it was not flooded in 2015, but should it not have been looked at after 2005 with a view to possibly moving it?

[Kerry McCarthy]

We commissioned the Pitt review. The hon. Gentleman mentions the work of the emergency services, and I would like to take the opportunity to say that when I was in Cumbria I met the Fire Brigades Union and Mountain Rescue, which have done fantastic work. There are calls for the fire brigade’s response to flood risk to be put on a statutory footing, rather than just an add-on to its other duties. Mountain rescue teams do wonderful work based on the voluntary contributions and the work of volunteers. I hope that that will be looked at as part of the review.

--- Later in debate ---

[John Stevenson]

Does the hon. Gentleman agree that one of the priorities in the long run, beyond the work on the A591 and Pooley bridge, must be to invest in and renew our road infrastructure in Cumbria?

[Tim Farron]

The hon. Gentleman makes a very good point. He is doing an excellent job for his constituents in Carlisle. He is right that the investment now will help the county in the long run. I ask the Government to invest in making sure that the A591 is rebuilt and reopened in a matter of weeks, not months, because the current situation is devastating for the local economy.

There is also a plan on the table from Cumbria Tourism that the Government need to provide funding for right now. There is a short-term, immediate strategy—as in, today—to boost the economy up to Christmas through a marketing campaign and a medium-term campaign to make sure we get back on our feet.

Other parts of the Lake district have been hugely hit. The village of Staveley has been cut in two by the closure of its bridge. Again, we need support for that in weeks, not months. Likewise, the bridge that connects the two communities at Backbarrow, which was lost six years ago in 2009, is closed again and needs investment straight away to make sure it is reopened.

It is important that people get the message, and that the Government get out the message that Cumbria is open for business. I was in Grasmere yesterday. I cannot think of a more Christmassy place to be at this moment, but equally I cannot think of a quieter place. People are not going there because they think the place is closed. It is not. Please go there. Please will the Government get the message out that that is what people need to do?

I have a quick note about farmers. I am very concerned that the Government are planning to close the Lyth valley pumps in June. I was there yesterday and we cannot allow that to happen. Will the Government commit to funding the pumps beyond the end of June? Will they also commit to help farmers who have lost stock in tragic circumstances up and down the county? They must recognise that much of the money that goes into keeping the Lyth valley dry is about protecting infrastructure, which the hon. Member for Carlisle (John Stevenson) mentioned. The A590 is often flooded as a consequence of that farmland not being drained, so the pumps are important for infrastructure too.

I want to make a final point about the long-termism that is needed. We often hear the phrase “long-term economic plan”. The problem is that we had an autumn statement recently in which the Chancellor pulled out of his hat lots of white rabbits, but none of those white rabbits were for the Department of Energy and Climate Change, the Department for Environment, Food and Rural Affairs or the Department for Communities and Local Government. The three Departments that we desperately need to be on the frontline to protect people in Cumbria are massively denuded. We have local authorities—South Lakeland District Council, Cumbria County Council and others—working very hard and doing a very good job, but with about 20% less people and resources than they had six years ago. It is therefore vital that the Government commit to providing the £500 million that PricewaterhouseCoopers has identified so that we can rebuild our communities, support our damaged people and communities, get people back in their homes, and do so quickly.