Oral Answers to Questions

Kelly Tolhurst Excerpts

Tuesday 17th January 2023 Commons Chamber

[Kevin Hollinrake]

As I say, we have no plans to change the universal service requirements of the postal service. This Government are proud of their credentials on foreign direct investment, and we encourage foreign investment into this country. I notice from the global chief executive officer survey today that the UK is third in the world in terms of the places where people want to invest, and we want to make sure that that continues. We looked at this matter from a national security perspective and we did not feel there was an issue, so we welcome that investment.

[Kelly Tolhurst (Rochester and Strood) (Con)]

Sadly, a long-established post office will be closing in my constituency in November, owing to an expansion of the pharmacy there, which is a success story. Many businesses locally, including the council, are desperate to take on a post office franchise. Will the Minister meet me to make sure we can secure Rochester’s having a post office after November?

[Kevin Hollinrake]

Of course I will meet my hon. Friend; I have suffered closures of post offices in my constituency, so I know how difficult this is. We are committed to maintaining a network of 11,500 post office outlets and making sure that 99% of the population are within 3 miles of a post office. I am keen to meet her to see what we can do in this instance.

National Minimum Wage Enforcement

Kelly Tolhurst Excerpts

Tuesday 11th February 2020 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

I am writing to inform the House of changes to national minimum wage enforcement. We want to make it as easy as possible for businesses particularly small and medium sized enterprises to comply with the law, whilst ensuring that workers get the wages that they are entitled to, and if they don’t, we will continue to crack down on companies that underpay their workers.

Last year, we consulted on specific aspects of the national minimum wage regulations (salaried hours and salary sacrifice). Following this consultation, we are making technical changes to the national minimum wage regulations. These changes will address areas of the regulations that are tripping up employers, without reducing worker protections. Businesses are supportive of these technical changes.

Salaried workers must be paid an annual salary for working a particular number of hours over the course of a year and paid in equal instalments. Changes to the regulations will widen the range of pay arrangements that are compatible with workers being treated as salaried hours workers to increase flexibility for the worker and employers, including:

increasing the range of compatible payment cycles to salaried hours workers, such as every two weeks or four weeks—currently only monthly or weekly payment cycles are compatible;

making premium payments to salaried hours workers compatible—such as for working on bank holidays—including where a salaried hours worker’s contract specifies a premium pay arrangement; and

enabling employers to specify the “calculation year” for their salaried workers, the reference point to identify when in a year a worker’s basic annual hours, for which they receive their salary, are exceeded.

The Government will also continue to name employers who fail to pay the national minimum wage, following a review of the scheme. We are making the public naming scheme more effective. We are increasing the frequency of naming those companies who underpay, and from now on, the threshold for naming employers who do not pay national minimum wage will rise to £500, meaning that any firm which owes arrears of more than £500 in national minimum wage payments to its workforce will be named. Whilst still tough on business, this will ensure that those that underpay by a minimal amount can set things right and correct their mistakes.

We recognise that there is a need to educate employers and support them to comply before enforcement action becomes necessary. To achieve this, future naming rounds will be supported by a quarterly educational bulletin to highlight details of common compliance issues, including anonymised case studies demonstrating how employers can become compliant. To better contextualise the relative severity of breaches we will publish additional information wherever possible.

Finally, as part of our drive to support businesses to comply with the legislation we are:

providing support via a helpline for employers who operate deduction or salary sacrifice schemes. Employers will be able to access support and information directly from HMRC;

requesting HMRC to do more to proactively support new, small businesses. HMRC will visit selected new, small businesses to educate them on the national minimum wage and support those businesses in getting their practices right from the start; and

producing enhanced, business facing national minimum wage guidance, which will be published shortly.

We will continue to look at these issues; for salary sacrifice and deductions we are waiving financial penalties for employers for certain breaches of rules—subject to eligibility criteria—recognising that, in some limited instances, employers may be penalised for offering these benefit schemes to workers and misunderstanding the rules. For example, those that offer a benefit to their workers, such as nurseries offering discounted childcare for staff, may find that they have inadvertently breached pay rules, as they make deductions which takes the take-home pay below minimum wage. Subject to strict criteria, including that the worker opted into the scheme, we will waive financial penalties for such breaches.

We are determined to increase compliance, whilst ensuring workers receive the pay they are entitled to, continuing to be tough on enforcement with companies that break the rules.

[HCWS107]

Consumer Rights Act 2015 and Consumer Ombudsman Scheme

Kelly Tolhurst Excerpts

Tuesday 11th February 2020 Westminster Hall

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

It is a pleasure to serve under your chairmanship, Sir Roger. I congratulate the hon. Member for Linlithgow and East Falkirk (Martyn Day) on securing today’s important debate, and I thank the other hon. Members who have made interventions.

In this country we have a strong consumer rights framework, which gives most consumers the confidence to settle any disputes directly with businesses. And they do—around six out of 10 such disputes are resolved directly with the business concerned. However, this debate has rightly highlighted the real problems that some consumers have in enforcing their rights, and addressing that issue is my top priority as the Minister with responsibility for consumers.

No consumer, and in fact no business, would want to go to court to resolve a dispute; the experience of the hon. Member’s constituent, Mrs Johnston, illustrates what a daunting experience that can be. Indeed, many consumers lack the confidence or the capability to use the courts, so they may be forced to abandon legitimate complaints. That is not an acceptable outcome.

We know that many consumers would prefer to have different ways to settle their differences with businesses. Alternative dispute resolution schemes, such as the Financial Ombudsman Service, give consumers and businesses a quicker and cheaper way to resolve disputes than going to court.

Alternative dispute resolution takes different forms; it is a flexible tool, which makes it very suitable for such civil disputes. For example, it can involve mediation to help consumers and businesses to reach a solution that satisfies both sides.

[Kate Osamor (Edmonton) (Lab/Co-op)]

I am sure that the Minister will agree that we are all consumers, whether we are a member of the public or a Member of Parliament, and so I will quickly raise a case with her about my constituency office. We have a lease with Apogee and our rental agreement is for a photocopier, but that photocopier has not worked for two years. We have gone back and forth, but the photocopier is not fit for purpose. I have been trying to get out of the contract, but Apogee has said that I have to pay £28,000—of taxpayers’ money—to do so. Is the Minister available to meet me to discuss the matter further? It is part of the wider issue that we are discussing today.

[Kelly Tolhurst]

I am happy to meet the hon. Lady. Without knowing the specifics or the details, it is difficult to comment, but she mentioned contracts.

If parties cannot reach an agreement, alternative dispute resolution can also involve a final arbitration of the case that the business accepts as binding. Alternative dispute resolution has benefits for both parties, but I am concerned that tens of thousands of consumers still go to court to resolve disputes with business. I am also unhappy that many do so because the business refuses to participate in a cheaper, quicker and less adversarial alternative dispute resolution process. I want to make it easier and quicker for consumers to obtain redress across all sectors of the economy when things go wrong.

The Government consulted on the issue in the Green Paper “Modernising consumer markets” and launched a review of the consumer redress system. The review addresses in particular how Government can improve business take-up of the alternative dispute resolution, increase consumer awareness and raise quality standards. Consumers have a right to take a dispute to ADR in the finance, energy, telecoms, estate agent and legal services sectors. In other sectors, there is no mandatory requirement to use ADR, although it is available for any dispute should the business decide it wants to use it.

[Yvonne Fovargue]

The Minister has mentioned a number of areas where there are ombudsmen, but the system is extremely confusing. Is it not time that the Minister committed to a complete overhaul of the ombudsman system to bring them all into line, to give them proper teeth and to make them mandatory, so that they can enforce their judgments?

[Kelly Tolhurst]

I thank the hon. Lady for her intervention and note her particular interest in the area as chair of the all-party parliamentary group. As I will come on to say, we are committed to making the process easier for consumers to get redress. I hope that the response to the Green Paper, and the Command Paper that we expect to publish later in the spring, will give her some confidence in that area.

ADR is not mandatory for the furniture and home furnishings sector, where the furniture ombudsman provides dispute resolution services. The furniture ombudsman is a highly regarded service, but it can only offer its services when businesses join the scheme. I understand that in the case highlighted by the hon. Member for Linlithgow and East Falkirk, the furniture retailer in question had not joined the furniture ombudsman. That is why it was unable to help his constituent, Ms Johnston, leaving the courts as her only route to redress at the cost of much distress to her.

[Patricia Gibson]

The Minister has conceded that the problem is that not all ombudsmen are equal, so what we need to do is level up. She will be aware of calls to refer the entire ombudsman landscape to the Law Commission to sort it out. How does she respond to that?

[Kelly Tolhurst]

As I have suggested, much work has gone on since the Green Paper was launched. We have looked at these things, and our intention is to publish a Command Paper in the spring. In my role as Minister, I have been particularly focused on addressing consumer detriment wherever it exists and ensuring that consumers can get redress.

A key question that Government asked in the consumer Green Paper was whether there should be an automatic right for consumers to access ADR. In some sectors where participation is not mandatory, the volume and value of disputes have been high, but business take-up has been low. The Government are particularly keen to see a higher rate of business participation in sectors where there are significant levels of consumer complaints. Since the consumer Green Paper was published, my officials have been working closely with consumers, businesses and dispute resolution groups to develop practical and pragmatic solutions to increase the use of ADR.

I have taken a close interest in the work of the all-party parliamentary group on consumer protection and its helpful reports on ombudsmen, which looked at the effectiveness of ombudsmen from the consumer perspective. Those reports have provided valuable insights and proposals that have helped to inform our work.

My Department has announced its intention to publish a Command Paper in the spring of this year. In that Command Paper, we will bring forward a package of reform to make it easier and quicker for consumers to use ADR services. It will also cover ways in which we can strengthen our public enforcement system to tackle consumer rip-offs.

In the context of this debate, Members may be interested to know that the Government will carry out a five-year post-implementation review of the Consumer Rights Act 2015 later this year. The Act introduced some important new rights, such as rights to protect consumers buying digital content, including music and online games. The review will consider, among other things, whether the legislation has met its objectives.

When competitive markets are working well, consumers should be able to resolve most problems for themselves. Companies should be incentivised by a desire to win and maintain custom and promote their reputation. An important part of that is ensuring that consumers are satisfied and that disputes are resolved appropriately. I believe that alternative dispute resolution plays a significant role in supporting consumers to resolve complaints against traders. It is worth reflecting that more than 2.5 million disputes have been resolved through ADR in the past six years. BEIS research has found that 80% of consumers who used ADR thought that their problem would not have been resolved without it.

I recognise that the system is not working as well as it might. I assure Members that I am committed to making the system more effective, with better access. Through the forthcoming consumer and competition Command Paper, we will be closely examining the areas of the dispute resolution landscape that are not working for consumers and laying out our proposals for reform. Respondents will be able to comment on them and present evidence regarding the effectiveness of consumer redress mechanisms, including the role of ombudsmen and alternative dispute resolution provision, before the Government take any final decisions on the scope and nature of reform.

Again, I offer my sincere thanks to the hon. Member for Linlithgow and East Falkirk for securing this debate and highlighting the case of his constituent. I am sure it will resonate with many who are watching this debate. We know how stressful it can be for our constituents throughout the United Kingdom to try to get simple redress. I thank Members for taking part, and I look forward to updating them in the spring when we launch the paper.

Question put and agreed to.

Oral Answers to Questions

Kelly Tolhurst Excerpts

Tuesday 21st January 2020 Commons Chamber

[Katherine Fletcher (South Ribble) (Con)]

21. What recent steps her Department has taken to support small businesses.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

Small businesses are the backbone of our economy, and the British Business Bank is supporting over £7 billion of finance to over 91,000 small and medium-size enterprises. Through our business productivity review, published in November, we set out the steps we are taking to boost small business productivity, including: funding a small business leadership programme, strengthening local networks and expanding the knowledge transfer partnership programme.

[Dr Huq]

I thank the Minister for her response. I was at a local business breakfast last week. Alongside the predictable issues of late payment, Brexit-readiness and parking, which I would have expected, I was surprised to hear naturally Conservative people lambasting the Government for refocusing priorities northward post-election, which they see as quite shameless and political. How can the Minister ensure that the good idea of regional rebalancing does not end up clobbering small firms and sole traders in Ealing, Acton and Chiswick? The streets are not paved with gold there and they already feel under the cosh.

[Kelly Tolhurst]

I can reassure the hon. Lady that the Government completely back business, whether in the north or the south. We want businesses to grow wherever they are in the UK. That is highlighted by the fact that in her constituency alone there have been 193 start-up loans, representing £1.6 million. It is clear that the Government are willing to support entrepreneurs and all business owners who want to grow, wherever they are.

[Tom Randall]

On Saturday, I was out on Mapperley Top in my constituency speaking to small business owners and shopkeepers. One of the issues they raised was access to finance. What support is being given to help small businesses like those in Mapperley get access to finance?

[Kelly Tolhurst]

I thank my hon. Friend for his question and welcome him to his place. I am really pleased that, so quickly into being an MP, he is out talking to as many businesses as he can. Clearly, access to finance is a key priority for many businesses. I have already outlined the applications to start-up loans. One interesting element is that applicants for start-up loans are able to have a mentor. He will also know that we have taken action by offering small retailers a third off business rates for two years, starting in April. We are committed to increasing that to 50%.

[Katherine Fletcher]

Leyland has an above-average five-year success rate for small businesses, and a diverse and growing business base. What is the Minister doing to help and support smaller businesses to start to trade with the world and to identify export opportunities?

[Kelly Tolhurst]

I thank my hon. Friend for her question and welcome her to her place. I know she has a particular interest in this area, with her experience before coming to the House. The Government are committed to helping small businesses become exporters. Over 580,000 trade internationally already. The Department for International Trade supports that via a range of projects. We want all SMEs who are able to, to take that plunge. My Department will continue to work across Government and with SMEs to identify barriers to ensure we can address them and make it easier for all SMEs to trade internationally.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Small businesses are the backbone of the Cumbria tourism economy. They are appalled, as am I, by the Government’s plan to make sure that there is a £30,000 salary floor for any overseas worker coming to work in the tourism economies of the Lake district or the Yorkshire dales. Does the Minister understand how much damage that will do to an economy in which 20,000 non-UK staff are working now? Will she meet me and people from the hospitality industry to make sure that we have a salary floor that does not cripple Cumbria’s tourism economy?

[Kelly Tolhurst]

The hon. Gentleman knows that the tourism economy is particularly important for the UK. While I am happy to meet him, we hear representations from the sector regularly. Despite the earlier comment to the Secretary of State about a reduction in our engagement with businesses, we are actually stepping that up. He will know that we will bring forward plans on immigration and the floor that he mentioned, but I am more than happy to hear his particular point.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

One thing that all businesses—large and small—depend on is having a skilled workforce. What is the Department doing to improve skills overall, and particularly engineering skills, on which more and more companies are now dependent?

[Kelly Tolhurst]

I welcome my hon. Friend back to the Chamber and thank him for his interest in this area. He knows that, as we leave the European Union, we want to ensure that we have a good distribution of engineering skills—not just in the south-east, but across the country—and help people to increase their skills. I am a great lover of apprenticeships, of what some small businesses are doing with apprenticeships, and especially of our degree-led apprenticeships involving organisations such as BAE Systems—which, I should say, operates in my constituency.

[Carol Monaghan (Glasgow North West) (SNP)]

5. What steps she is taking to support the development of photonics SMEs.

--- Later in debate ---

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

10. What recent assessment she has made of the level of compliance of businesses with payment of the national living wage.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

The vast majority of jobs that are eligible to receive the national living wage are in compliance with the law, with only 1.5% of eligible jobs paid below in April 2019. Anyone entitled to be paid the national minimum wage should receive it. Last year, we ordered employers to pay a record £24.4 million in arrears and issued £17 million in penalties to non-compliant employers.

[Emma Hardy]

I thank the Minister for her answer but, as she is aware, the enforcement system is not working effectively at the moment, and hundreds of well-known companies are still getting away with not paying their workers the national living wage. I welcome the steps that the Government have already taken, but I hope that the Minister will respond by setting out additional actions that the Government will take to ensure that nobody gets away with paying their workers less than they are owed.

[Kelly Tolhurst]

I want to make it clear to the hon. Lady that this Government will enforce the national minimum wage and make sure that employers that are meant to be paying it do so. I think that is shown by the penalties and arrears that were recovered last year. We have doubled the enforcement budget. I remain committed to making sure that employers are able to easily comply with the law, but where there is any sign of breach, we are enforcing and making sure that people get the pay they are entitled to.

[Andrew Bridgen (North West Leicestershire) (Con)]

Will the Minister agree to meet me to discuss the situation in Leicester, where I believe that approximately 10,000 people in the clothing industry are being paid £3 to £4 an hour in conditions of modern slavery?

[Kelly Tolhurst]

I thank my hon. Friend for raising the subject; yes, I would be very happy to meet him. The sector has been the subject of focus. Her Majesty’s Revenue and Customs, which is responsible for enforcing the national living wage, and cross-border agencies have been doing extensive work, but any details that my hon. Friend may supply would be helpful.

[Rachel Reeves (Leeds West) (Lab)]

18. We hear warm words from the Minister, but the truth is that in the last 10 years, just nine firms have been prosecuted and fined for non-payment of the minimum wage. When those fines are levied, they are at only half the level that they could be. Why is that the case if this is such an important area for the Government?

[Kelly Tolhurst]

I note the hon. Lady’s interest in this area, but I would just correct her: there have actually been 14 prosecutions for non-payment of the national minimum wage. I would also make it clear to the House that there are ways other than just bringing prosecutions to ensure that employers pay. Ultimately, we should focus on ensuring that businesses understand their obligations to their employees, that they pay the minimum wage, and that when they do not, we enforce correctly. I am determined to make sure that that continues to happen.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Pembrokeshire is one of those parts of the country where the substantial increases to the minimum wage have had a transformative impact on people with low incomes. Will the Minister join me in saluting the great many small businesses and microbusinesses across the county of Pembrokeshire that choose to do the right thing, because they support the aim of the policy, by implementing and enforcing the minimum wage?

[Kelly Tolhurst]

Absolutely. I thank my right hon. Friend for his comments and I very much recognise the role of the SME market in ensuring that some of the lowest paid workers get the minimum wage, and in happily sometimes paying higher than that. As the small business Minister, my priority is to ensure not only that we enforce the national minimum wage, but that we create the right environment in which SMEs can thrive so that they continue to meet pay requirements.

[Rachael Maskell (York Central) (Lab/Co-op)]

It is simply not good enough: a decade—a decade, Mr Speaker—of workers being exploited under this Government’s watch. So why has the Minister let the 87% of firms that break the law and fail to pay the minimum wage get away with it? What is she going to do about it and by when? One thing is clear: we, the Labour party, are the only party that will ever stand up for working people.

[Kelly Tolhurst]

I would thank the hon. Lady for her comments, but I wonder whether she is living in a land of fiction. It is the Conservative party that is standing up for workers. It is this party that has given the largest increase in the national minimum wage, rising to £8.72—an increase of 6.2%. As I have already outlined, our enforcement has doubled. We remain committed to enforcement, and it is a complete misrepresentation to say that in the past 10 years this Government have not enforced the national minimum wage. We remain committed to doing so, and for all the time that I am responsible, we will continue to do so.

--- Later in debate ---

[Mrs Maria Miller (Basingstoke) (Con)]

T4. Employers like the Sovereign Housing Association and our community furniture project are giving young people with learning disabilities in Basingstoke the opportunity to get work experience through the Government-supported internship programme run by the Basingstoke College of Technology in my constituency. Will my right hon. Friend join me in encouraging even more employers to come forward, not only in Basingstoke but across the country, to help more disabled people with learning disabilities to reach their potential at work?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

I thank my hon. Friend for raising this. The Government encourage businesses to be a force for good in our society. I warmly welcome the commitment from firms in her constituency to offer placements that connect these young people with the world of work, helping to identify their future roles.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

T3. Does the Secretary of State agree that local enterprise partnerships should be led by the business community in the area they serve?

--- Later in debate ---

[Scott Mann (North Cornwall) (Con)]

T6. As many of the big banks withdraw their support for rural areas, the post office network is becoming increasingly relevant to communities such as mine. I know the Minister cares passionately about the rural post office network, so will she do all she can to ensure that it is supported in constituencies?

[Kelly Tolhurst]

I thank my hon. Friend for his question. The Government recognise the importance of postal offices in rural communities, both throughout the UK and in his constituency. There are more than 11,600 post offices nationwide. Access to branches exceeds the national standard that the Government set, with 99% of rural populations living within 3 miles of a post office. The Post Office is currently delivering further investment in rural branches, through the community branch development scheme, to underpin the long-term viability of our post offices, and I am keen to work with it to continue to support that.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

T9. As chair of the all-party group on disability, I have become increasingly concerned that entrepreneurs with disabilities are facing additional challenges in starting businesses, such as on access to business loans. Will the Minister meet our group and ensure that we have a truly inclusive economy? [R]

[Kelly Tolhurst]

I thank the hon. Lady for her question. I note her interest, her role and the work she has done on this issue, and I will be more than happy to meet her. It is important that everyone in the United Kingdom, no matter who they are, is able to access support from government. We want all entrepreneurs to thrive and I will be happy to work with her to be able to achieve that.

[Richard Fuller (North East Bedfordshire) (Con)]

T8. Will the Government consider introducing a small business equivalent of the personal allowance, exempting small businesses from all taxes other than VAT and assisting small businesses such as Maynard’s ice cream in my constituency in meeting the challenge of increases in the living wage?

[Kelly Tolhurst]

I thank my hon .Friend for his question and very much welcome him back to this place, as an extremely valued member of the Select Committee on Business, Energy and Industrial Strategy, on which he served with me—I am pleased to have him back. He raises an interesting idea. The UK has a highly competitive tax environment, and we need to do more to support our small businesses with the cost of doing business. That is why the Government have committed to launching a fundamental review of business rates, and Treasury colleagues will be giving more details on that in due course.

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

Sub-postmasters across the country offer valuable services to many of our communities. The case they brought against the Post Office has now concluded and the courts have found that the Post Office was at fault for its aggressive prosecutions of sub-postmasters for errors in the Horizon IT system. These prosecutions saw some sub-postmasters unlawfully jailed, and many losing their homes, livelihoods and reputations. What support are the Government giving to those affected? What has been done to ensure that a scandal such as this is never allowed to happen again? Will the Government launch a full inquiry into the circumstances that led to this tragedy, and a full review of the governance and management of the Post Office—the judge was highly critical of that—and of the impact this will have on the post office network?

[Kelly Tolhurst]

The hon. Lady is correct; on 11 December, Post Office Ltd reached a settlement in the group litigation claim brought by 555 postmasters or former postmasters. This has culminated in a successful mediation, and a settlement of £57.7 million was reached, funded by the Post Office. The Government welcome the agreement by the parties to settle this long-running litigation. It is true to say that many have suffered through litigation, and Post Office Ltd has apologised for that. One key point is that this mediation occurred under the new chief executive officer, who is making sure that the recommendations made by the judge, and culture change and changes within the Post Office, happen.

[Jack Brereton (Stoke-on-Trent South) (Con)]

Ceramic Valley enterprise zone has transformed a number of brownfield sites and created thousands of jobs in Stoke-on-Trent. Will my right hon. Friend the Secretary of State support our proposals to extend the zone, and its continuation in Stoke-on-Trent?

[Kevin Brennan (Cardiff West) (Lab)]

One interesting statistic in the figures released today by the Office for National Statistics figures is that for the first time more than 5 million people in the UK are self-employed. Will the Minister responsible for small business undertake urgently to push forward the work she has been doing on shared parental leave for freelancers and the self-employed? That will be particularly helpful to women in the workforce.

[Kelly Tolhurst]

I thank the hon. Gentleman for highlighting the self-employment market. We committed in our manifesto not only to look at self-employment but to make sure that the UK is the best place to work, and we will make sure that that includes flexibility. He will know that we are bringing forward an employment Bill. We are determined to make the UK the best place to work, and that includes shared parental leave and working with families to make it easier for women to get back into work.

[Aaron Bell (Newcastle-under-Lyme) (Con)]

As the new Member of Parliament for Newcastle-under-Lyme, I am supporting the town centre by opening a shop there. I welcome what the Minister said about business rates, but will she also look into the taper on small business rates relief? If someone has a property worth £12,000, they pay no business rates, but if it is valued at £15,000 they pay £7,500 a year, which has made it difficult for the council to let units at the top end of that scale. Will the Department look into the issue?

[Kelly Tolhurst]

There will be a fundamental review of business rates, which many retailers will welcome. It will be a wide review and I am sure the issue my hon. Friend highlights will be looked into. I should highlight that we have managed to take a number of small retailers—I believe it is more than 685,000—out of paying any rates at all.

[Sammy Wilson (East Antrim) (DUP)]

This week, thousands of climate hypocrites will zoom into Davos in hundreds of private jets to lecture the world about stopping the consumption of fossil fuels, oblivious to their own hypocritical behaviour. Will the Secretary of State assure us that she will not heed any of the calls for policies that would cost jobs in our energy-intensive industries, add costs to the fuel prices of the millions in fuel poverty, or add green burdens to consumers, farmers and motorists?

[Robert Halfon (Harlow) (Con)]

Hard-working Harlow binmen and women have been harassed and bullied in a pretty shocking way by Veolia management over many months. Will my hon. Friend launch an inquiry into what has been going on and ensure that guidance is given to local councils throughout the country to stop any new contracts with Veolia until it stops bullying and harassing its workforce?

[Kelly Tolhurst]

I thank my right hon. Friend for his question. I am happy to meet him to hear more details on that matter.

ENABLE Funding Scheme

Kelly Tolhurst Excerpts

Tuesday 14th January 2020 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

‘ENABLE Funding’ is a scheme administered by the British Business Bank which provides senior funding (effectively at commercial terms) to delivery partners and is designed to increase funding diversification for leasing and asset finance providers and peer-to-peer lenders, with the overall purpose of increasing the supply of debt to underlying small and medium-sized enterprises.

Since the scheme began in 2014, senior secured funding has been provided to various delivery partners and their receivable portfolios have been ‘warehoused’ in a special purpose entity. The aggregate sum of certain receivable portfolios reached a desired critical mass whereby a capital markets refinancing (or securitisation) can proceed, repaying the funding. The transaction is expected to complete before the end of the financial year 2019-20.

As part of the transaction, a credit enhancement in the form of a capped second loss guarantee will be agreed. The guarantee issued by the Department is capped at up to £30 million and the ‘second loss’ element means that the participating delivery partners will fund and suffer an agreed amount up to the first loss threshold should defaults in the portfolio occur.

The guarantee is not expected to last for more than seven years and in practice will likely be much shorter. The beneficiary is the securitisation vehicle (a newly incorporated entity) which will purchase the facilities as part of the transaction. The Department will receive a commercial fee in return for the guarantee.

As a matter of record, I will be laying a Departmental Minute today explaining the procedure followed and containing a description of the liability undertaken.

[HCWS35]

National Living Wage and National Minimum Wage

Kelly Tolhurst Excerpts

Tuesday 7th January 2020 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

I am writing to inform the House that the Government are pleased to accept all of the Low Pay Commission’s recommendations for the new national living wage and national minimum wage rates, which will come into force in April 2020.

The Low Pay Commission is an internationally renowned independent and expert body which conducts extensive analysis and stakeholder research to make its recommendations.

The Low Pay Commission has recommended that:

The national living wage (for workers aged 25 and over) should increase from £8.21 to £8.72;

The rate for 21 to 24-year-olds should increase from £7.70 to £8.20;

The rate for 18 to 20-year-olds should increase from £6.15 to £6.45;

The rate for 16 to 17-year-olds should increase from £4.35 to £4.55; and

The apprentice rate (for apprentices aged under 19 or in the first year of their apprenticeship) should increase from £3.90 to £4.15.

The Low Pay Commission has also recommended that the accommodation offset increases from the current rate of £7.55 to £8.20 from 1 April 2020.

We welcome the Low Pay Commission’s recommendation of an increase to the national living wage rate such that it meets the Government’s objective of reaching 60% of median earnings by 2020.

The new national living wage rate of £8.72 will be the highest ever UK minimum wage and benefit over two million workers. From April 2020, a full-time worker on the national living wage will see their earnings increase by nearly £4,000 over the course of the year, compared to when the national living wage was introduced. This increase in the national living wage is the first step in meeting our commitment to raise the NLW to two-thirds of median earnings, provided economic conditions allow, within the next five years.

The Low Pay Commission’s recommendations for increasing the national minimum wage youth rates, by between 4.6% and 6.5%, are well ahead of forecast inflation.

These increases are due to come into effect from 1 April 2020, subject to parliamentary approval. The Government intend to lay implementing regulations before Parliament in due course.

A copy of the response will be available from the BEIS website at: www.beis.gov.uk.

[HCWS20]

Business Productivity Review

Kelly Tolhurst Excerpts

Tuesday 5th November 2019 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

The UK has some of the world’s most productive businesses and has a strong business environment upon which we can build. Despite this, the UK has a long-standing productivity gap with international competitors. That is why we launched the joint Department for Business, Energy and Industrial Strategy and HM Treasury, business productivity review to understand the decisions and actions taken by businesses that affect their own productivity.

The potential prize is significant. The Bank of England estimates that if UK firms could move along the productivity distribution into the next quartile, then this could see a boost to UK GDP by around £270 billion in today’s prices.

To inform the review we launched a call for evidence in May 2018 and received more than 140 written responses. Meetings were held with 3,000 business leaders and we also engaged with sector trade bodies and membership organisations that jointly represent over 500,000 businesses across the UK, including Scotland, Wales and Northern Ireland.

The business productivity review we are publishing today identifies best practice used by our leading businesses and sets out ten key actions that will support businesses to become more productive these include:

£20 million to strengthen local England peer to peer networks in England focused on business improvement so that thousands of business leaders can share expertise on leadership, business development and technology adoption.

£11 million to create a small business leadership programme in England to provide small business leaders with leadership training, building on existing world-class training programmes: such as Be The Business’ productivity through people, Lancaster University’s LEAD and Goldman Sachs 10,000 small businesses programme.

£25 million through the knowledge transfer partnerships to allow over 200 more UK based businesses per year to access the skills and talent to improve their business performance and productivity by improving how well they are managed. Today we are announcing that there will be a dedicated management KTP round which will be open on 12 December 2019 and closes on 19 February 2020.

Work with trade bodies, sector councils and Be The Business to ensure small businesses have access to business mentors from the UK’s leading and inspiring businesses.

Development of the evidence base on productivity, including through the recently announced productivity institute and the BEIS business support evaluation framework.

Work with the behavioural insights team to improve messaging to businesses, and work with trusted intermediaries—e.g. banks, accountants, trade bodies—to support small businesses to take action.

Improve the customer experience for businesses accessing online Government information and services for growth domestically and internationally.

Work with the private sector, such as Be The Business, to ensure businesses have access to clear advice and the tools they need to help them both understand and improve their productivity.

[HCWS92]

People with Significant Control: Post-Implementation Review

Kelly Tolhurst Excerpts

Wednesday 30th October 2019 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

The Government will today publish the report on the statutory post-implementation review of the People with Significant Control (PSC) regulations. We are required to complete a PIR by virtue of various regulations:

Small Business, Enterprise and Employment Act 2015;

The Register of People with Significant Control Regulations 2016;

The Limited Liability Partnerships (Register of People with Significant Control) Regulations 2016;

The European Public Limited-Liability Company (Register of People with Significant Control) Regulations 2016;

The Scottish Partnerships (Register of People with Significant Control) Regulations 2017. The People with Significant Control (PSC) register was established in 2016 to enhance the transparency of ultimate (beneficial) ownership of UK companies. The goals of the register are to promote good corporate behaviour and to deter illicit activity. UK companies and partnerships in scope of the regulations are required to keep a register of their beneficial owners and to report this information to Companies House.

This is the first review of the PSC regulations since the register was established. My Department assessed the operation of the register, the stakeholder engagement with it and the burdens the requirements place on business.

The review report concludes that the PSC register is meeting its objectives and that the costs to business have been proportionate and in line with the original estimates. The register is widely used, has a positive economic effect and contributes to the fight against criminal use of companies.

The report notes the importance of ensuring the reliability of the PSC register information. This is being considered and will be addressed as part of the wider review of the corporate transparency and register reform.

The PSC regulations will, therefore, remain in their current form and we will continue to monitor the operation of the register. The next statutory post-implementation review of the PSC regulations will be carried out within the next five years.

A copy of the post-implementation review report will be laid before Parliament.

[HCWS50]

Insolvency Service Performance Targets 2019-20

Kelly Tolhurst Excerpts

Thursday 24th October 2019 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

I have set performance targets for the Insolvency Service for the financial year 2019-20. The Insolvency Service is the Government agency that provides public services to those affected by financial distress or failure.

The Insolvency Service provides the frameworks that deal with insolvency and the financial misconduct that sometimes accompanies or leads to it. Its aim is to deliver economic confidence through a corporate and personal insolvency regime which is regarded as fair and that gives investors and lenders confidence to take the commercial risks necessary to support economic growth.

In 2019-20, an important priority for the Insolvency Service will be to maintain its current high level of customer service whilst delivering a major change programme. I have set measures and targets at a level which reflect the challenges that the agency continues to face.

Oral Answers to Questions

Kelly Tolhurst Excerpts

Tuesday 22nd October 2019 Commons Chamber

[David Hanson (Delyn) (Lab)]

2. What recent assessment she has made of trends in the level of executive pay.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

Average FTSE 100 CEO pay more than quadrupled from £1 million in 1998 to £4.5 million in 2012. Since then, the median average has fallen by £1.04 million. We have recently implemented a number of reforms to make further improvements to executive pay transparency and accountability through vehicles such as the UK corporate governance code.

[David Hanson]

The Government’s Green Paper on corporate responsibility was published more than two years ago, and since that time we have seen corporate pay issues in Carillion and only last month in Thomas Cook. Last week, the Business, Energy and Industrial Strategy Committee questioned the chief executive of Thomas Cook about corporate responsibility issues on pay. What precisely have the Government done to act on corporate pay since that Green Paper two years ago?

[Kelly Tolhurst]

I thank the right hon. Gentleman for his question. As I mentioned, CEO pay has fallen. There were reforms at the beginning of the year, to ensure that shareholders’ voices are heard more in the boardroom. There is a binding vote every three years on remuneration policy, and there is now an advisory vote every year. If it is not successful, pay has to be put before the next AGM. As he will know, the Investment Association now keeps a record, at the Government’s request, to ensure that we are tracking pay where there is shareholder dissent.

[Mr Steve Baker (Wycombe) (Con)]

Does my hon. Friend agree that the right way to control executive pay is to increase democratic control of capital, not by increasing the powers of the state but by dramatically improving the rights of shareholders?

[Kelly Tolhurst]

My hon. Friend is right, and that is what the Government’s reforms have done. As I outlined, shareholders have a vote every three years and an advisory vote every year. Through the reforms, we have also enabled employee directors, non-exec directors or employee councils to have representation on the board. Companies now have to explain their wider pay policy and how it affects the whole company.

[Rachel Reeves (Leeds West) (Lab)]

The chief executive of Thomas Cook was paid more than £8 million during his time as chief executive of a company that has now collapsed, costing 9,000 jobs in this country, with 150,000 customers having to be brought home at a cost to the taxpayer. When he gave evidence to our Select Committee last week, he said he would reflect on whether he will pay back any of his bonus. What will the Government do to ensure that bonuses can be and have to be clawed back after catastrophic failures of businesses like that?

[Kelly Tolhurst]

I thank the hon. Lady for the work she is doing on the Select Committee. Thomas Cook did have clawback and malus arrangements in place for the recovery of directors’ bonus payments in specific circumstances, as required by the UK corporate governance code. My right hon. Friend the Secretary of State has asked the Insolvency Service to fast-track an investigation, and it will report back. As the hon. Lady outlined, the CEO did advise the Committee on 15 October that he would consider voluntarily surrendering some of his 2017 cash bonus, but it must be pointed out that no bonus was paid to the ex-CEO in 2018.

[Mr David Davis (Haltemprice and Howden) (Con)]

The hon. Member for Leeds West (Rachel Reeves) highlighted the point that the biggest concern is not simply how much is paid to executives, but their being paid for failure, not for success. The current arrangements in British company law allow chief executives and other executives to be paid on the basis of share price and allow them to buy back shares, propping up the share price. This is a formula for payment for failure. Is the Department looking at that?

[Kelly Tolhurst]

I thank my right hon. Friend for raising this. Part of the reforms in January was to make organisations report back on the effect of share price growth on executive pay outcomes. We published some evidence before the summer from a review undertaken on share buy-backs, and there was no clear evidence to suggest that they did have a perverse outcome.

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[Faisal Rashid (Warrington South) (Lab)]

7. What recent assessment she has made of the adequacy of workplace access rights for trades unions.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

All workers in the UK have the right to join a union and to participate in union activities. That right is protected under trade union law, and 23% of UK employees are union members. That is higher than some European countries, including France and Germany, and it demonstrates that union rights to recruit and organise through individual members and officials are sufficient.

[Faisal Rashid]

This week shocking reports have emerged about dire workplace conditions at Amazon. Those exploited workers desperately need a union, but workers at Amazon have had their shift patterns interrupted just to prevent them from talking to union officials on the way to work. When will the Government put an end to those draconian anti-union practices, and will the Secretary of State launch an investigation into reports of workers’ rights being violated at Amazon?

[Kelly Tolhurst]

I thank the hon. Gentleman for his question. It is the right of unions and employers to come to an agreement about representation in the workplace. The Central Arbitration Committee is available if that is refused. With regard to workers’ rights, the good work plan represents the biggest reform of workers’ rights in 20 years. We are determined to continue on that path, because workers’ rights are important to this Government.

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

25. I believe that my constituents’ workplace rights should keep step with those of citizens across the EU, but on reading the WAB, or European Union (Withdrawal Agreement) Bill, last night I see that my constituents will have to wait on Tory Ministers deciding to replicate progressive EU change. I believe that back in 2010 the Secretary of State said her vision was for small firms to give“no minimum wage, no maternity or paternity rights, no unfair dismissal rights, no pension rights”.—[Official Report, 10 May 2012; Vol. 545, c. 209.]Is it therefore not the case that so-called progressive MPs who support the withdrawal agreement Bill will never be forgiven for putting the rights of workers into the hands of Thatcherites?

[Kelly Tolhurst]

It will come as no surprise that I completely disagree with the hon. and learned Lady. The Prime Minister has been clear: not only will we maintain workers’ rights, but we will enhance them. Even in my role as a Minister over the past 12 years, everything has been focused on ensuring we are ahead of the European Union. We are committed. We have never, ever, not once ever put forward a position where we have shown we will row back on workers’ rights.

[Laura Pidcock (North West Durham) (Lab)]

Wow! What an answer. This is the situation for workers at Amazon: their bones are being broken; they are being knocked unconscious; and they are being taken away in ambulances. Where is the urgency to step in and stop what is happening to these workers? Are the Government going to demand an urgent inquiry, or do they wash their hands of these workers? At the heart of the issue at Amazon is a hostile environment for trade unions, which are often the only force that can resist exploitative practices. A Labour Government would legislate to enforce access rights for trade unions and a robust enforcement regime. Why are the Government sitting on their hands while the richest man in the world treats his workers so disgustingly on their watch?

[Kelly Tolhurst]

The hon. Lady makes allegations about a particular organisation. She is welcome to write to me further about those allegations, but I remind her that sufficient workplace laws are in place. We have the Health and Safety Executive, for example. If she has evidence of certain employers breaking the law, I would expect it to be passed on to the relevant agencies. As I outlined, our Prime Minister is committed to ensuring that we keep step with the European Union and go further. I believe the actions the Government have taken over recent months prove that.

[Gareth Johnson (Dartford) (Con)]

8. What recent steps she has taken to support businesses in Dartford constituency.

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[Eddie Hughes (Walsall North) (Con)]

13. What steps she has taken to ensure that new mothers can participate in the workplace.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

The Government are wholly committed to women’s participation in the workforce, including by supporting new mothers to return to, and thrive in, work. That is why we recently consulted on a broad range of proposals to help families to balance their work and home commitments. We have also announced our intention to extend redundancy protection to new mothers returning to work.

[Eddie Hughes]

I thank the Minister for that answer. What support are the Government giving to new mothers who, sadly, have experienced stillbirth?

[Kelly Tolhurst]

First, I pay tribute to my hon. Friend and Members across the House who participated in Baby Loss Awareness Week and the emotional debate in the House. The Government have committed to introducing parental bereavement leave and pay, which will apply to parents who lose a child under the age of 18, including parents with stillbirth. We plan to lay the regulations to implement the policy in January, ready to come into force on 6 April. That will support new mothers facing these tragic and difficult circumstances.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

Discrimination against new mothers and pregnant women is still widespread in our country. When are the Government going to take it seriously?

[Kelly Tolhurst]

I point out that discrimination in the workplace is illegal; it is unlawful. I have just outlined that we have announced our intention to extend redundancy protection for those mothers who return to work.

[Mark Pawsey (Rugby) (Con)]

14. What support her Department is providing for the development of electric vehicle technology.

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[Vicky Ford (Chelmsford) (Con)]

T9. Workers’ rights matter. Given that eight out of 10 mums consider work-family balance before thinking about any new job opportunity, can the Government confirm they remain committed to considering the proposal that employers should make all jobs flexible unless there is a good reason not to do so?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

Good-quality flexible working is important to all employees and is central to good work. Workers’ rights matter. Over 97% of employers offer some form of flexible working, and our recent consultation looked at how further to increase the prevalence of flexible working by advertising jobs as flexible and by requiring large employers to publish their policy.

[Kerry McCarthy (Bristol East) (Lab)]

T2. British companies have been shown to be complicit in the fires and deforestation in the Amazon through their investments and supply chains. Will the Minister look at introducing mandatory due diligence to address this?

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[Liz Twist (Blaydon) (Lab)]

T3.   The town of Blaydon has been without a post office in its shopping centre for about five years, as no local retailer has been prepared to take this on. Leaving the availability of local post offices to the willingness of local retailers is just not working in Blaydon, so what steps will the Minister take to ensure that post office provision is retained where no local retailer can be found, as in Blaydon?

[Kelly Tolhurst]

I thank the hon. Lady for her question and I am more than happy to meet her to discuss her constituency in further detail if she would require. There is no programme of closures and the Post Office is working extremely hard, where post offices do shut for any, sometimes unpredictable, reason, to find replacements. We do have outreach services that are available when there is a lack of service, but I am happy to speak with her further about that.

[Greg Clark (Tunbridge Wells) (Ind)]

I welcome the Secretary of State to the Dispatch Box and hope that she will have distinguished tenure at this important time. She will know that the recommendations of the independent review of the Financial Reporting Council, conducted by Sir John Kingman, were widely endorsed and are urgently required. I was concerned that the statutory implementation of those recommendations was not included in the Queen’s Speech. Can she assure me that she is not going to miss a golden opportunity to make these reforms and give a big boost to our standing in the world?

[Karen Lee (Lincoln) (Lab)]

T4. Next month will mark five years since the Government first announced they would undertake an independent review of the UK’s product recall system, and a failure to implement recalls has led to fire services responding to preventable fires due to product failures. Will the Minister today update the House on the review’s progress and whether the single recall register will be up and running this year?

[Kelly Tolhurst]

I am not sure whether the hon. Lady is aware that we undertook one of the biggest recalls that has happened this year: the recall of Whirlpool tumble dryers. She will know that I have updated the House on the progress we have made on that. Since 12 June, when I announced the recall, we have had more than 90,000 contacts, with people getting in touch about recall. So we are continuing to improve and work on recall.

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[Paul Masterton (East Renfrewshire) (Con)]

More than half a dozen post offices in East Renfrewshire have closed over the past couple of years and not one has been able to be replaced, because it was not a viable business proposition for retailers. Does the Minister think that increased fees under the banking framework agreement will be enough to build the sustainability of the post office network?

[Kelly Tolhurst]

I thank my hon. Friend for that question. I am happy to discuss particular issues in his constituency. I believe that the new banking framework and the increase in remuneration that postmasters will be receiving as part of that framework will make a significant impact for postmasters. But he is right to say that we must not stop there. I am working hard, with the Post Office and the National Federation of SubPostmasters, to make sure that we have a post office network that is fit, relevant and viable.

[Tommy Sheppard (Edinburgh East) (SNP)]

T6. Scotland has 35% of the total European carbon capture and storage capacity; it has much of the infrastructure already in place; and it has in my constituency the world-leading research group Scottish Carbon Capture & Storage. Will the Secretary of State press the Chancellor to seriously increase the amount of investment in the next Budget that goes into the industry, so that it can upscale and go into commercial production?

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[Emma Dent Coad (Kensington) (Lab)]

T8. As 90,000 postal delivery workers threaten to go on strike at Christmas over job security and employment rights that were promised but remain undelivered, I note that the chief executive of privatised Royal Mail earns nearly 35 times what our beloved posties earn. Given the creeping privatisation of our post offices that is devastating community assets, will the Minister consider renationalising all our postal services, as demanded by the good citizens of South Kensington, who have lost their post office, so that they will deliver to the nation, not to the pockets of the few?

[Kelly Tolhurst]

I thank the hon. Lady for her question, but I have to disappoint her because my answer to it is no.

[Kirstene Hair (Angus) (Con)]

I was delighted to hear that Seagreen wind farm off the coast of Angus was successful in its bid in the UK Government contract for difference auction. It will be the most powerful wind farm throughout the United Kingdom and will have the ability to power up to 40% of Scottish homes. Would the Minister like to come to Angus and see the impact it is already having on our local economy? The local port has already secured the contract for the operations and maintenance base.