Oral Answers to Questions
Debate between Kemi Badenoch and Rachael Maskell(2 years ago)
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Rachael Maskell (York Central) (Lab/Co-op)
Kemi Badenoch
The hon. Lady raises a very important point about the use of trade sanctions. I agree that there are certain countries on which we need an effective trade sanctions policy. Discussions take place across Government, including with Foreign Office Ministers and at official level, and those will continue. I cannot give her the detail of those discussions, but I assure her that we are looking at the issue very closely.
Oral Answers to Questions
Debate between Kemi Badenoch and Rachael Maskell(3 years, 11 months ago)
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Kemi Badenoch
I assure my right hon. Friend that I agree with her. The Government remain committed to improving health outcomes during the first 1,001 days and early childhood. At the spending review, we confirmed an additional £25.8 million to increase the value of healthy start vouchers to £4.25, in line with the recommendation of the national food strategy, to help combat child food poverty and to give children the best start in life. I am very supportive of her review into early years health and I look forward to reading her final recommendation.
Rachael Maskell (York Central) (Lab/Co-op)
North of England: Economic Support
Debate between Kemi Badenoch and Rachael Maskell(4 years ago)
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The Exchequer Secretary to the Treasury (Kemi Badenoch)
It is a pleasure to serve under your chairmanship, Mr Efford, and I congratulate the hon. Member for Erith and Thamesmead (Abena Oppong-Asare) on her first appearance as shadow Exchequer Secretary. That is a very interesting role and I wish her all the best in it. I also congratulate the hon. Member for Barnsley Central (Dan Jarvis) on securing the debate and thank Members for their insightful contributions, many of which were delivered with great passion.
As was said by my right hon. Friend the Member for Rossendale and Darwen (Jake Berry), the north has been a hotbed of energy, ideas, innovation and creativity for centuries, and the region continues to power our economy. Global companies are taking advantage of the rich commercial opportunities in the north-west and the north-east is gaining a formidable reputation in areas such as advanced manufacturing, energy and the life sciences, while businesses in South Yorkshire, such as materials construction firm SIG and internet firm Plusnet, are generating jobs and growth. However, the Government are acutely aware that the past months have been incredibly difficult for people across the region, as they have been for the whole UK. As my hon. Friend the Member for Southport (Damien Moore) said, the pandemic is more than a health crisis; it is an economic crisis.
We are committed to protecting the livelihoods of people throughout the country. To that end, we have provided an unprecedented package of funding worth over £200 billion. I will briefly remind everyone of its main elements before addressing other points that Members have raised. The coronavirus job retention scheme has protected the livelihoods of 9.6 million people, many of them in the north. We have boosted welfare payments for the lowest earners and paid more than £1 billion to hundreds of thousands of people in the north through the self-employment income support scheme. That includes 63,000 grants issued in the north-east, 213,000 in the north-west and 163,000 in Yorkshire and the Humber—all to the self-employed. While thousands of northern firms have so far received £10.5 billion from the bounce back and coronavirus interruption loan schemes, we have provided in addition billions of pounds to local authorities throughout the country, including the north, to protect vital services during the pandemic.
These vast sums show that that the Government are determined to help the whole country, including the north, through this difficult period. We will be using the forthcoming spending review to make sure we put the right financial support in place to continue the fight against covid. We will also be using the spending review to drive forward the vital infrastructure projects that will aid our economic recovery from the crisis and level up the whole UK.
I am grateful to my hon. Friend the Member for Leigh (James Grundy) for giving me the opportunity to mention the towns fund. We are investing £3.6 billion in the towns fund to level up our regions and I am pleased that towns such as Tyldesley in his constituency are receiving this much-needed money.
The hon. Member for Batley and Spen (Tracy Brabin) asked about the local growth fund. She will be aware that this is a matter for the impending spending review, and it would not be appropriate for me to pre-empt the outcome of that process.
My hon. Friend the Member for Barrow and Furness (Simon Fell) spoke about investment, and I would like to give a brief recap of our infrastructure investment so far. Over the next five years, we are going to plough more than £600 billion into capital spending. That means new roads, new railways, hospitals and schools. We have brought forward £8.6 billion of this to support activity in the near term—plans that the International Monetary Fund said will address productivity, climate goals and regional inequality, which my hon. Friend is rightly concerned about.
My hon. Friend the Member for Penistone and Stocksbridge (Miriam Cates) referred to northern transport and asked what, specifically, the Government are doing about that. In the last Budget, we announced more than £27 billion—a record investment—for strategic roads over the next five years. That includes £18 million to upgrade the A61 Westwood roundabout at Tankersley in her constituency, dualling the A66 across the Pennines and the A1 from Morpeth to Ellingham in the north-east, and upgrading the M60 Simister Island in Greater Manchester. In the last Budget, we also provided a £4.2 billion investment to eight city regions across the north, including Sheffield city region, for local transport in the five-year funding settlement starting in 2022-23.
The Government remain committed to investing in improving rail connections across the north. The hon. Member for Halifax (Holly Lynch) will be pleased to know that we are developing an integrated rail plan so we can deliver High Speed 2 phase 2b and northern powerhouse rail more effectively alongside other transport schemes.
As well as such landmark projects, we need to improve infrastructure at a more local level, as the hon. Lady pointed out. To that end, this summer the Chancellor launched the £900 million Getting Building fund. The fund aims to boost jobs, upgrade infrastructure and support the recovery, and targets areas that are facing the biggest economic challenges because of the pandemic. I am pleased that combined authorities and local enterprise partnerships across the north of England have received more than £319 million.
As the hon. Member for Barnsley Central will know, Sheffield city region has already been awarded £33.6 million. That funding will create more than 1,000 jobs and unlock new housing, commercial and learning space. Projects include improvement work for schools and colleges, enterprise space for businesses and start-ups, new pedestrian and cycle bridges and junction improvement schemes, and new charge points for electric vehicles. That is far from an exhaustive list.
Our levelling-up agenda is not just about what or where we invest; it is about fundamentally shifting the way Government policy is formulated. The hon. Gentleman raised relocating civil servants to the north. As announced at Budget 2020, we are working with colleagues in the Department for Business, Energy and Industrial Strategy, the Department for International Trade and the Ministry of Housing, Communities and Local Government to establish a new economic decision-making campus in the north of England to be operational by the end of this Parliament, with at least 750 roles at the new site.
We continue to build on our successful English devolution agenda. We intend to bring forward the devolution and local recovery White Paper, laying out our plans for partnering with places across the UK to build a sustainable economic recovery.
Rachael Maskell
I mentioned the BioYorkshire project in my speech; it will be transformative for my constituency. It will create 4,000 jobs and upskill 25,000 people. Will the Minister look at bringing that money forward? We need investment now because of the economic crisis we face, rather than waiting two and a half years for devolution.
Kemi Badenoch
That is something we can certainly review. I will write to the hon. Lady to explain our position exactly.
Many core city regions in the north now have a metro Mayor and a devolution deal. We have recently agreed one such deal with West Yorkshire. It includes £1 billion of new investment and a directly elected metro Mayor, in place from May 2021. We fully implemented the Sheffield city region deal, which includes £900 million of new funding, along with substantial new devolved powers.
Many Members have expressed a desire for a northern recovery plan. This Government accelerated £8.6 billion for capital priorities to drive recovery across the country, and the upcoming spending review will continue to support the economic recovery of the north and the whole country. My hon. Friend the Member for Don Valley (Nick Fletcher) raised the Green Book. We are planning to conclude the review and publish the updated Green Book at the spending review.
Several Opposition Members have insinuated that the south was given preferential treatment over the north. That is simply not true, as anyone can see, given the unprecedented support provided. They also completely ignore other measures, such as new testing technology being piloted in Liverpool city region, which could be a game changer in tackling both the health and economic impacts of the pandemic in that area.
We realise that these are profoundly challenging times for many people and many communities in the north. The Chancellor himself is a northern MP, who is very much aware and impacted by the issues raised today. I say to hon. Members and their constituents that he is very much on their side. As I have outlined, this Government are unwaveringly focused on ensuring that people and businesses in the region and throughout the country are not only able to weather the storm of covid-19, but also benefit from an even brighter future.
Support for Self-employed and Freelance Workers
Debate between Kemi Badenoch and Rachael Maskell(4 years, 2 months ago)
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The Exchequer Secretary to the Treasury (Kemi Badenoch)
I congratulate the hon. Member for Brighton, Pavilion (Caroline Lucas) on securing the debate and acknowledge the many and varied contributions of right hon. and hon. Members across the House. The Government understand the crucial role that the self-employed, including members of partnerships and freelancers, play in this country’s economy. They are part of the lifeblood of British enterprise and they, too, have suffered during the months of the pandemic. We have not forgotten them, but we recognise that we have not been able to help everyone in the country exactly as they would have liked. However, what the Government have done has been unprecedented.
Since the launch of the self-employment income support scheme earlier this year, designed and implemented at speed, claims totalling £7.6 billion have been paid out to support more than 2.5 million people. That represented a first grant and we did not stop there. As of 17 August, individuals have been able to claim for a second and final self-employment scheme grant. This further grant is open to anyone who meets the eligibility criteria and whose business was adversely affected by covid-19 on or after 14 July 2020. Importantly, applicants do not need to have claimed the first grant and they can receive the support while continuing to work.
The eligibility criteria have been raised by many Members. The criteria for the scheme are fair and rightly aimed at delivering support to those who need it most. Self-employed individuals, including members of partnerships, are eligible if they submitted their tax return for the tax year 2018-19, continue to trade and have been adversely affected by covid-19. To qualify, their self-employed trading profits must be no more than £50,000 and at least equal to their non-trading income. Many Members have said that this is not enough, so I would like to pick up on those points.
My hon. Friend the Member for North East Bedfordshire (Richard Fuller) said that there is a discrepancy between the 3 million who are not served and the 95% that the Treasury is talking about. We are talking about people for whom at least half their income comes from being self-employed. Ninety-five per cent. of those people are covered—that is about 3.4 million people who were mainly self-employed in 2018-19 who should be eligible for this scheme. The statistics show that the scheme has helped individuals across the UK in all sorts of different sectors. The extension of the scheme also means that eligible individuals whose businesses are adversely affected, from or after 14 July, can claim a second and final grant until 19 October. That is a taxable grant worth 70% of their average monthly trading profits paid out in a single instalment. Like the first grant, the second grant will be based on three months’ worth of trading profits and capped at a maximum of £6,570. We are listening. Many different requests are coming through and we are trying to get a package that works, but that is balanced towards businesses, the consumers and the taxpayer.
Very many Members, including the hon. Member for Hammersmith (Andy Slaughter), my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart), the hon. Member for Belfast South (Claire Hanna) and others, have raised the case for those working in the arts. We do recognise that. The Government know the challenge facing creative organisations and practitioners as a result of the pandemic and the disruptive impact of the necessary measures on cultural and creative activity. We have announced a £1.57 billion cultural recovery fund to protect the cultural sectors through the covid-19 pandemic, and that money will also go to help those self-employed individuals who may not have been able to access schemes. None the less, as the economy opens, we believe that the situation will improve.
The self-employed, including freelancers, benefit not only from Government support specifically designed for their needs, but from schemes that we have created that will cover them, but that are not specifically targeted at them. They benefit, like so many others, from schemes such as bounce back loans, tax deferrals, rental support, increased levels of universal credit, mortgage holidays and other business support grants. The Government have spent £160 billion in support on interventions—as much as we have spent on the NHS and schools. That is alongside many other Government measures that will help support people and kickstart the economic recovery. The plan for jobs, for instance, will make up to £30 billion available to assist in creating, supporting and protecting jobs. I am pleased that hon. Members from across the House have acknowledged that the UK has one of the most generous self-employed support schemes in the world. However, today’s debate is about the concerns and not about the successes.
Several Members, including the hon. Member for Brighton, Pavilion (Caroline Lucas), are particularly interested in the eligibility of individuals who receive income from dividends issued by their own limited company. Although the Government understand that some business owners choose to pay themselves in the form of dividends, it has not been possible to include them in this scheme. The Government have worked closely with stakeholders and carefully considered the case for providing a new system for those who pay themselves through dividends, but it would be so much more complex than other existing income support schemes. My hon. Friend the Member for South Cambridgeshire (Anthony Browne) was very perceptive in raising the operational difficulties that it would entail. That is because, under current reporting mechanisms, it is just not possible for HMRC to distinguish between dividends derived from an individual’s own company and dividends derived from other sources. Unlike existing support schemes that use information that HMRC already holds, such a scheme would require individuals to make a claim and submit information that HMRC may not efficiently or consistently verify. Such verification would be essential to ensure that payments were made to eligible companies for eligible activity.
Many Members have talked about comparing notes with Companies House. I do not think that people really understand just how difficult that would be. It is not simply a matter of looking at Companies House. It would require so many manual compliance checks: those people who need money would have to send information to HMRC, which would then need to be cross-checked. That would be extremely arduous and due regard would have to be given to the opportunity cost for that resource—where compliance activity would have to be reduced elsewhere. In other words, the many checks that Members are asking for would make it even harder for us to help those people who are most at need. It is important that the House—
Kemi Badenoch
I am afraid that I do not have enough time. I am sorry I am not taking interventions.
It is important that the House understands that we have not taken a deliberate stance against support for company owner managers who pay themselves through dividends. This is about understanding and identifying what is operationally feasible, managing technical complexities and fraud risks and ensuring that other forms of Government support are delivered in a timely way.
Owing to the Government’s reasonable concern to protect against fraud and error, it has also not been possible to include in the scheme those who are newly self-employed, which I know many Members have raised. That is because the most reliable and up-to-date record of self-employed income is from the 2018-19 tax records. Individuals can submit tax returns for 2019-20, but again there would be significant risks to the public if the Government relied on those returns for the scheme. That would create an opportunity for fraudulent activity through the returns—where no trading activity has taken place, where trading profits have been inflated to increase the size of the grant, and where trading profits have been reduced to below the £50,000 threshold in order to become eligible. The Government cannot expose the taxpayer to those risks, and the extension of the scheme would not mean that those concerns have been reduced.
The hon. Member for Edinburgh East (Tommy Sheppard), among others, raised the issue of parental leave. The treatment of self-employed parents is part of the scheme. As the Minister for Equalities, it is a subject close to my heart, made even closer by the fact that I recently returned from maternity leave. That is why I want to address the issue directly. Claiming maternity allowance or taking parental leave does not mean that trading has ceased and will not therefore affect a person’s eligibility for the self-employment scheme, as long as the individual intends to return to trading after parental leave.
In addition, we have listened to feedback from stakeholders and made changes to the scheme to benefit self-employed parents. Those parents who were previously ineligible for the scheme because they had not submitted a tax return for 2018-19, or because their trading profits in 2018-19 were less than other trading income because they were taking time off work to care for their newborn or adopted child, can now claim through the self-employment income support scheme. Those parents who have become eligible can now make a claim for the first grant, the second grant or both depending on when their business may have been adversely affected by covid-19. Again, we have made those changes. Many Members of Parliament have written to us with requests about that.
We are aware of concerns raised on how the grant is calculated, particularly for those who have taken parental leave. As the Chancellor indicated, delivering a scheme for the self-employed is a very difficult operational challenge, particularly in the time available. We are trying to get the money to people as quickly as possible. There is no way for HMRC to know from income tax self-assessment returns why an individual’s profits may have dropped in earlier years. However, to help those with volatile income in 2018-19, eligibility can be determined by profits in 2018-19 or by an average between 2016-17 and 2018-19. This scheme has been designed to deliver support as quickly as possible to millions of self-employed individuals by using information that HMRC already has. It is an enormous delivery challenge and we need to ensure that the changes do not risk delivery of the scheme.
The hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) and others expressed concerns about the impact a second wave might have on the future income of their constituents and talked about extensions. The scheme will remain open for applications for the second and final grant until 19 October 2020. Unfortunately, it is the case that some businesses will be affected by covid-19 far longer than others, and the Government will seek to support those businesses appropriately. As I mentioned earlier, many other schemes can provide support to specific businesses.
Let me end by saying that we are living in unprecedented times. The Government needed to deliver support at incredible speed, prioritising those schemes that could help as many as possible, as quickly as possible. Once the scheme launched, we have remained flexible. We have worked with stakeholders to consider carefully the case for making changes. We listened and, where possible, acted to bring individuals into eligibility.
The Chancellor has acknowledged that the Government have not been able to support everyone in the exact way that they would want, and we have been clear from the beginning that delivering the scheme for the self-employed is very difficult in the time available. They are a very diverse and wide mix of people, with a diverse mix of turnover and profits and monthly and annual variations even in normal times. In many cases, they have substantial alternative forms of income, too. Despite the challenges, the scheme has delivered what it set out to do successfully, providing at speed much-needed income support.
I will endeavour to make sure that ExcludedUK and ForgottenPAYE, which so many Members praised, receive a ministerial response to their letters, and I am happy to write to those Members who have other areas that they feel have not been addressed today. I thank so many Members for contributing to this debate, and I hope colleagues will support the Government as we now turn our thoughts, energies and resources to looking forward and planning for the recovery.
Public Health England Review: Covid-19 Disparities
Debate between Kemi Badenoch and Rachael Maskell(4 years, 5 months ago)
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Kemi Badenoch
I thank my hon. Friend for that question, which makes an important point. We do want to see diversity in leadership across institutions in this country, which is one reason why we asked Professor Kevin Fenton, who is a black surgeon, to lead on this review. This issue is close to my heart, and, as a black woman who is Equalities Minister, I will be looking into it as well. I can definitely take this forward and examine what is happening across our institutions.
Rachael Maskell (York Central) (Lab/Co-op)
In 2010, Professor Marmot published his report on how structural inequalities predispose the poorest to the worst health outcomes. We know how race inequality is entwined with that. A decade on, the inequalities have grown. The PHE report has now highlighted the fatal consequences of that. Even today, low-paid workers are exposed to the greatest infection risks, and lockdown easement is reinforcing that. Will the Minister pause the easement plan until a full mitigation plan is in place to address these inequalities?
Kemi Badenoch
It is important to reiterate that any easement plan is being made in conjunction with scientists. The Government have reviewed and explained guidance extensively across all sorts of occupational areas. It is important that employers make risk assessments for their staff so that they are not unduly exposed to the virus.