Draft Horserace Betting Levy Regulations 2017

Kevin Foster Excerpts

Monday 27th March 2017 General Committees

[Kevin Foster (Torbay) (Con)]

It is a pleasure to serve under your chairmanship, Sir Alan. I do not intend to delay the Committee for too long. I have a fiancée—soon to be Mrs Foster—who was once an amateur licensed jockey. We still have Breezy, her last race-horse, which gives me an interest. Hazel assures me she will not be going on a horse in a race any time soon, and the only race Breezy is likely to compete in is one for his next feed bucket.

I welcome the regulations, and particularly the fact that they will bring a fairer and more level playing field. They are relevant to my constituency in Torbay because the people who go to Newton Abbot racecourse regularly look to stay in Torbay and bring valuable business. I welcome what the Minister has outlined. The regulations are about supporting the industry and creating a level playing field so that betting operators here do not end up paying a levy that others can avoid by using a different model of operation. The amounts that will be generated will make a real difference and the measure is needed. I am not going to ask any questions, such as what tips the Minister has for the racing coming up. I simply want to put on the record my support for the measure and how I think it will benefit my constituency.

Parking Places (Variation of Charges) Bill

Kevin Foster Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Friday 3rd February 2017 Commons Chamber

[Kevin Foster]

I beg to move, That the clause be now read a Second time.

I welcome the broad thrust of the Bill, not least in the context of my time in local government. When we wanted to do something to support retailers at Christmas or some other event, we found that altering parking charges in a local authority car park or other location required a formal consultation, although the likelihood of someone writing to us to say “I would like to pay more to park my car” was virtually nil. When I was both the cabinet member for economic regeneration and the deputy leader of a council, we were spending thousands of pounds to achieve next to nothing. In some cases, we would find that we were not able to do what we wanted to do.

My new clause is intended to probe the views of the Bill’s promoter, my hon. Friend the Member for Bosworth (David Tredinnick), and those of my hon. Friend the Minister, with whom, when we occupied our respective posts in adjoining local authorities, I had exchanges for many years on everything from regeneration plans to council tax. It is a pleasure to see him in the Chamber today, and I look forward to hearing his comments later.

The current consultation procedures are intended to protect motorists and town centres from higher charges, but I wanted to make it clear beyond doubt that the Bill’s aim was to make it easier to reduce parking charges rather than making it easier to increase them. The Bill will certainly be helpful to Torbay. Each year, we have winter charges and standard charges. Standard charges apply throughout the summer and are slightly higher than the discounted winter rates, because in winter large car parks near a beach are unlikely to be particularly full. We do have some hardy swimmers, though, and there is usually a large event every Boxing day in both Torquay and Paignton. I see the Minister nodding: he is welcome to join us for a nice refreshing dip on a Boxing day morning. The requirement is to get one’s hair wet, to show that one has really gone into the water.

[Wendy Morton (Aldridge-Brownhills) (Con)]

As always, my hon. Friend has brought to the House a wealth of experience of the council in his constituency. May I ask him how the new clause would work in practice?

[Kevin Foster]

In practice, it would work in the same way as the Bill, but it makes it absolutely clear that the Bill deals only with circumstances in which car parking charges are being lowered temporarily, and that there is no prospect of orders, for instance, to increase them. Local newspapers have strongly defended the requirement for formal notifications and consultations, and rightly so, but the new clause is intended to make clear that that will apply only when parking charges are not being increased.

[Wendy Morton]

Is my hon. Friend saying that he does not think councils should be able to raise parking charges if they need to do so?

[Kevin Foster]

No. I think it is clear that if a local authority decided that raising charges was appropriate, it would be able to do so under the existing procedures, although consultation would be necessary, and, obviously, the authority would be answerable to its electors. Any authority considering increasing car parking charges must carefully consider the overall impact, not just whether it will get a couple of thousand pounds extra from a car park. The Local Government Finance Bill Committee this week heard evidence—the Minister was present—from the Federation of Small Businesses about the impact that increasing car park charges can have on town centres and on businesses. Local authorities will in future have 100% retention of business rates, and if a town centre is not regenerating and does not have people shopping in it, that will hit the bottom line as much as not getting an extra 10p from each car that parks in the car park.

[Jo Churchill (Bury St Edmunds) (Con)]

My hon. Friend is talking about giving councils the flexibility to lower prices in order to stimulate high streets, yet areas that are highly stimulated by an event—a celebration of Shakespeare’s 400th birthday, perhaps, this year—might wish to direct drivers to a park-and-ride, for instance, to avoid an absolute blockage in the town centre. Many of us have great events in our towns. May we have a temporary uplift, deterring people from parking in the town centre while an event is going on, and reduce it afterwards? This amendment sounds a little heavy-handed, if my hon. Friend does not mind my saying so.

[Kevin Foster]

I do not think my hon. Friend’s intervention is heavy-handed at all; it is right that we discuss probing amendments to Bills robustly on the Floor of the House. There is already some provision in this regard. My own authority, Torbay, held the Torbay airshow last year. It was clear that one of its car parks would be very congested, so to avoid undue congestion it closed the car park for the day of the airshow but arranged for to be booked via a separate means. The solution met the need on the day, but if it was put in place more widely and challenged there would be a question about whether it was the right way to proceed. It was just a fix for the day.

If a council is going to look to take money out of large events in the manner suggested—for a market day-style event—it should go through a proper consultation process. One way of ensuring that large crowds do not come to events is for people to attend, park in a car park and feel they have been ripped off for parking; traffic congestion reduces the following year, because no one comes back. There is clearly a balance to be struck. It is great to have events that draw people into town centres. I am the Member for Torquay and Paignton, and most days of the week my town centre has problems with lots people wanting to park and shop, causing congestion; that is quite a pleasant problem to deal with, compared with the issues of the decline of the town centre that we have seen over the last 30 to 40 years.

I believe in local democracy. Councils do need to have the ability to decide to increase parking charges, and ultimately be accountable to voters for that. We can all think of instances of a council controlled by our party deciding to make a quick buck out of car parking, but paying the price for it at the ballot box shortly afterwards.

[Wendy Morton]

On raising car parking charges and car parking charges in general, must not revenue from car parking charges—the Minister might confirm this later—go into improving parking facilities and not go to other parts of council funding?

[Kevin Foster]

No, councils can make a reasonable surplus from their car parking and contribute it to their bottom line. It is a shame that my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi) is not present, as I think he would confirm that the town council in Stratford-on-Avon owns the car parks, rather than the district council, and, given the popularity of Stratford as a visitor destination, almost funds its operations—legitimately—through its car park ownership.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Increasing parking charges may be legitimate, but it might have a very damaging effect on local businesses. Is not the Bill’s purpose under clause 2(2) to give local authorities opportunities to put in place different conditions? If they want to raise charges, they might have to go through a consultation, but if they want to lower them, it makes it easier for them to do so, whereas my hon. Friend’s amendment allows them to do virtually anything without consultation?

[Kevin Foster]

I completely agree with my hon. Friend in terms of the overall theory. On putting up car parking charges—I am thinking particularly about local authorities and those sitting on the Local Authority Bill Committee with me on this point—business rates growth will benefit councils. Councils could decide to use discounts on car parking to incentivise investment, which then delivers more in business rates. In the past—certainly when I was in local government in a leading position—if I had done that, I would have taken the hit from the drop in parking revenue, but the national Exchequer would have taken the benefit of increased business rates and people coming off jobseeker’s allowance and getting into work. If we were lucky, we might have had a small share of some of that income a bit later, once we had applied for it. My hon. Friend makes a strong point.

I should point out, however, that my amendment makes it clear that the Bill’s provisions should

“not apply where a local authority make, or propose to make, an order to increase parking charges in off- street parking places and designated parking places.”

My amendment would still allow the thrust of this Bill where there is a proposal to drop parking charges, but I want it to be clearer that no order is being created under this Bill to increase parking charges.

I agree that it is absolutely right to have a system to lower parking charges, rather than to increase them. As I said in my opening remarks, I cannot remember receiving a letter from someone demanding the right to pay an extra pound or two when they park their car. If I had done, I would have made it clear that they were welcome to overpay if they wanted—it is quite an easy thing to do.

I might withdraw this amendment later, depending on what I hear, particularly about the Minister’s intentions in respect of the powers created under the Bill, but I wanted to explore the Bill’s provisions on lowering parking charges, to ensure that it is not about getting around the statutory consultation process for increasing them.

[Craig Whittaker (Calder Valley) (Con)]

Some councils, however, do not lower parking charges but use them as cash cows—my own local authority, Calderdale, being one of them. Would my hon. Friend like to comment on that aspect of the issue?

[Kevin Foster]

Yes, I will be very happy to comment on that. I have no problem with a local authority looking to make a reasonable return from its car parking asset to ensure that it can maintain it and support its wider corporate objectives. However, my hon. Friend is absolutely right that some seem to view parking as a cash cow or, even worse, have some deluded anti-motorist position and think that if they whack their car parking charges up massively everyone will get the bus instead. The reality is that people look at one town centre and then look at another town centre or an out-of-town shopping centre and say, “If that place is just going to try to rip me off and view me as a cash cow, I am going to go somewhere else.” We particularly notice that in certain Labour-run local authorities—Calderdale might be one. They take a view that is more anti-business and anti-growth and decide to try to milk motorists by imposing charges that in reality will just put people off, or, even worse, are deliberately used to target those who work in the town centre and, because of where they live, cannot use public transport. In some market towns and cities people living in surrounding rural areas have little choice about how they travel to work. If their annual charges go up—or season tickets or daily prices—that will hit their income, effectively taxing it via the back door. I completely agree with my hon. Friend on that. Some councils seem to view parking as a cash cow, and we need to make it clear that while there is no problem with making a reasonable return, we do not want councils to engage in the rip-off behaviour that we see from some private sector operators. At the end of the day, a council has a wider duty to its whole area, not just to what it thinks it can get away with when making money from parking.

Overall, the Bill is welcome. As I touched on in response to an earlier intervention, having two systems makes sense: one for lowering charges and a completely different one for putting them up. Over the past few years, the Government have looked to strengthen the fairness of the enforcement of parking charges.

[Helen Whately (Faversham and Mid Kent) (Con)]

Will my hon. Friend give way.

[Kevin Foster]

I will give way in a moment.

I can think of an example from my constituency. Crossways car park in Paignton is a privately run car park in the town centre. It looks cheap on the outside, but people discover a rather nasty surprise when they go in: the ridiculously strict enforcement of the private sector operator. I will perhaps say more about that in another debate, but people receiving £100 fines for minor infractions is starting to have quite an impact. The House has rightly moved to ensure that local authorities cannot use extreme enforcement and to get rid of cowboy clampers, but I want the law to be structured to protect motorists, which is why my new clause is about making it clear that the new system should be used only to decrease the price of parking. My hon. Friend has been waiting patiently, so I will now give way.

[Helen Whately]

My hon. Friend is clearly extremely well versed in such matters, so I want him to help me fully understand his new clause. The Bill proposes to make it easier for councils to decrease parking charges, and my hon. Friend wants to ensure that it is not so easy for councils to increase parking charges, but my understanding is that that is also the thrust of the Bill, as councils would have to consult before increasing charges. Will he explain why he feels that the Bill does not achieve what he is trying to achieve with his new clause?

[Kevin Foster]

I thank my hon. Friend for her intervention. To be clear, I absolutely welcome the thrust of the Bill, as I have said on a couple of occasions, and making it easier to reduce car parking charges by having two separate systems. The Bill removes the need for formal adverts in local newspapers and reduces the length of consultation periods when prices are being reduced, but I tabled the new clause to probe whether that is the Bill’s definitive intention. I do not note any specific wording stating that the Bill is purely about decreasing parking charges. I accept that that is absolutely the intention of my hon. Friend the Member for Bosworth, and I look forward to the Minister confirming that that is the Government’s intention, but I felt that it was appropriate to explore the matter further. I had hoped to see specific mention made of reducing charges, and I will consider withdrawing my new clause based on the commentary I hear today, but it is right to explore whether the Bill is purely about decreasing car parking charges.

A decrease in charges could perhaps be used to encourage people to attend special events. Classic examples of when many councils may decide to use such measures are Armistice Day or Remembrance Day. Many councils have a policy of not enforcing standard parking charges on certain days of the year, but that is legally a bit messy. People should pay in theory but may see a sign saying, “We are not enforcing the rules today.” The Bill would allow that sort of thing and allow discounts on particular days or for particular events. The other classic examples are Christmas day and Boxing day. Both are easily included in orders about off-street parking, but that is more difficult with moveable feasts. I fully accept that councils should not draw up exhaustive lists of every single event or every day on which they may want to take 50p off car parking or make it free for an hour or two. As I have said, I welcome the thrust of the Bill, but I want it to be clear that it is only about creating a system to make it easier to reduce, not increase, car parking charges.

The Bill is worthwhile and I am delighted to see it making progress. It is about reducing burdens, reducing bureaucracy and ensuring that money is not spent on pointless consultations—something that I will mention in the not too distant future when discussing my Bill—but I want its intention to be clear. That is why I tabled the new clause, which I hope will provide the basis for some debate, and I look forward to hearing the Minister’s comments. Again, I stress that I absolutely welcome the Bill, making it easier to reduce car parking charges for particular events, but that is not explicit in the Bill.

Our legislation and debates should be clear. Someone sat in the Gallery or watching at home should be able to understand our exact intention from reading the Bill and when we make provisions. If I go down the Dog and Duck tonight and say, “Someone is thinking of making provisions about something under legislation,” the response would be, “What on earth are you talking about?” not, “Oh yes. They’re talking about offering a discount deal in the car park the next time there is an event.” That is why it is appropriate to explore the Bill in more depth on the Floor of the House and to suggest this new clause. I look forward to hearing the Minister’s reply and to deciding whether to press the new clause to a vote.

[Wendy Morton]

I want to say a few words about my hon. Friend’s new clause. I can see the sentiment behind it, because he is drawing attention to the Bill’s title: Car Parking (Variation of Charges). I appreciate that that is the jargon and legalese of this place, but to a member of the public, a taxpayer or a constituent, “Variation of Charges” does not make it 100% clear whether the Bill is about prices going up or down, so I now start to see why my hon. Friend tabled his new clause. That said, I read it for a while and tried to understand where it would fit in the Bill, which is why I asked at the start of the debate how it would work in practice. Quite frankly, I could not see its point—[Interruption.] I suppose I must apologise to my hon. Friend. He made a good argument, but I am not going to agree with him on this occasion.

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[Kevin Foster]

I totally accept the intention of this noble and worthwhile Bill, but it is not made absolutely explicit to someone who picks up the Bill or reads it on the Parliament website that it is about variation down, not variation up. That was the point of tabling the new clause.

[Wendy Morton]

That was the point that I was endeavouring to get across. It is about the wording. My hon. Friend referred to speaking to constituents at the Dog and Duck. I do not think we have a Dog and Duck in Aldridge-Brownhills—if I am wrong, I am sure that somebody will soon tell me—but we do have many other good watering holes. When we get an opportunity as Members of Parliament to ensure that our constituents fully understand the legislation that we are taking through this place, that can only be a good thing. I hope that my hon. Friend will not press the new clause to a vote, because I know how I will be voting. I will be speaking on Third Reading because my hon. Friend the Member for Bosworth (David Tredinnick) has promoted a good, straightforward Bill that will help constituencies, constituents and local authorities right across the country. I am looking forward to listening and contributing further over the course of this morning’s debate.

[Jo Churchill (Bury St Edmunds) (Con)]

Like my hon. Friend the Member for Aldridge-Brownhills (Wendy Morton), I have a slight problem with the intention behind this new clause because it strikes me as a bit of a blunt tool, as I will explain. In my constituency there is The Dog at Norton. I am not sure whether I have a Dog and Duck, but Bury St Edmunds is the home of Greene King and I have the Dog and Partridge. I have quite a lot of pubs, and I am racking my brain.

In Bury St Edmunds I have a vibrant town that bucks the trend, and in that I see a problem with the bluntness of this amendment. The amendment would be perfect in Stowmarket, Needham Market and my other market towns, where we must do everything we can to increase the vibrancy of the high street—we need that flexibility—but I assume that the whole point of the Bill is to give us flexibility. It strikes me that the amendment is trying to do what we do so well in this House, which is to pin our arm behind our back and write legislation that does not do what we first intended and is less flexible than we want.

[Kevin Foster]

I respect my hon. Friend’s comments about the strength of Bury St Edmunds, but in other parts of the country, and certainly in England, we have councils that view their town centre as a bit of a cash cow, which is really hurting the economy. That is why we need to be clear and make sure that a council’s arm is behind its back. This is about reducing parking charges, not varying them upwards.

[Jo Churchill]

Surely my hon. Friend takes my point that local councils are, in the main, the people who should be deciding this. We have a very confused landscape. In Stratford-on-Avon, as he mentioned, the town council owns the car park. In two-tier authorities, the county council often owns car parks in towns that do not have the ability to flex the charges and use the money for their locality, as happens in ours. In such a situation, variation might happen, but because somebody else is setting the rules, it is not driven by the people in the locality who want the outcomes that he seeks.

I would welcome the creation of local accountability that gives people within borough councils or district councils in two-tier authorities the ability to set the rates and collect the revenue. At the moment, it is a longwinded process, in that it takes two years to apply for various changes in legislation, and so on. In Bury St Edmunds, a town of 40,000 people, there were 550 long- stay car park uses and 1.387 million short-stay car park uses last year.

We have problems in the medieval grid, and I was pleased to see the masterplan come out this week. It says that we will have a policy of using varying procedures to stop the off-street parking that blights so many people’s lives, particularly in the medieval quarter of the town. We must provide solutions and give local councils the ability to set the right solutions, and the masterplan encourages a blend of “pedestrian first” measures to restore and keep the medieval grid for pedestrians, tourists, shoppers and residents. The small grid, which is not only beautiful but historic, needs attention to make sure that it is not blighted by parking. I agree with my hon. Friend that we have a vibrant economic environment and that people need to park for work. Luckily, we have a wonderful tourist attraction that draws people to the town, but other market towns very much need the flexibility to vary parking charges.

What concerns me is that, with this amendment, we might be using a sledgehammer to crack a nut. As my hon. Friend the Member for Faversham and Mid Kent (Helen Whately) said, the amendment seeks to do what is already in the Bill.

[Kevin Foster]

There are already provisions for local authorities to increase parking charges if they wish to do so, and my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) said that councils have done that. All I am seeking to do with the amendment is to limit the new powers in the Bill to reducing parking charges. The existing powers to increase car park prices via the normal consultation processes will still be there.

[Jo Churchill]

Fine, but that takes me back to my earlier point, which is that that is already in the Bill. Are we not just adding a bit of jam to the cake?

[David Tredinnick (Bosworth) (Con)]

This has already been a passionate debate, and I congratulate my hon. Friend the Member for Torbay (Kevin Foster) on moving this probing amendment. I hope I can convince him and my other hon. Friends, many of whom are here today, that he does not need to press it.

No amendments were moved in Committee on Wednesday, so the Bill was reported to the House unamended. This new clause is a somewhat late entry in the race.

[Kevin Foster]

I was not a member of the Committee, so I could not move an amendment at that stage. I am therefore raising the issue on Report. I am just clarifying the situation for those who are not familiar with the procedure of the House.

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[David Tredinnick]

I am flattered, Mr Speaker, that you should call me back to this point and ask me to explain myself. I also crave your indulgence, because in Committee I did, in error, produce the Christmas decoration and was rightly called to order, as we cannot call devices in aid when we make speeches. Wary of your determination to maintain procedures, I did not venture to do that today. The point I am trying to make is that this Bill, which was talked about as the Santa Claus Bill, is actually something that brings about a lot of goodwill and can be used, particularly in the run-up to Christmas, to help people do their shopping. Previously, the councils were unable to act quickly in response to situations. I will not labour that point any more.

My own local council in the main town of my constituency, Hinckley, just across the border from my hon. Friend the Under-Secretary of State, has many car parks, and, if this Bill achieves Third Reading today, it will certainly have an impact on the way that Hinckley and Bosworth Borough Council implements parking in the future.

Hinckley has been very successful as a town centre. Recently, it was a finalist in the Great British High Street competition. Cost-effective parking is clearly important for a town that can achieve that success.

[Kevin Foster]

My hon. Friend is right to talk about the success of towns. Does he agree that that is why it is so important that we are absolutely clear that this Bill is about varying the charges down, and not up, which would inhibit the success of those towns?

[David Tredinnick]

I am glad that my hon. Friend has intervened. He represents Torbay, which is a very beautiful seaside town. In fact, years ago I knew his Conservative predecessor who was also passionately concerned about the town. He was known as Spy 13 because of his other job, which was writing spy novels. I wish him well if he is tuning into this debate.

May I say to my hon. Friend that he is doing absolutely the right thing for his constituency of Torbay where parking is clearly critical? I can assure him that if he looks at clause 1 he will see that this Bill is about enabling councils to reduce charges. It means that, in the future, they will not have to go to the expense of publishing notices in local newspapers to reduce charges, and it will give them a degree of flexibility, which is really important.

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[David Tredinnick]

I am very grateful to my hon. Friend, who has been a great champion not only on the matter of parking charges, but on the cause of cancer. I am very pleased to serve with her as an officer on the all-party cancer group.

For clarity, I will make it absolutely clear what these two clauses do. Clause 1 provides government with a power to make regulations that simplify the procedure for lowering parking charges. At present, councils must give 21 days’ notification in the press, and place signage in the car parks—something to which I have not yet referred—if they want to lower their charges. The private sector, however, can take a business decision to lower them without going through that process. This clause would simplify the requirement and give councils the flexibility to reduce their charges, thereby putting local authorities on an even footing with the private sector. My hon. Friend the Member for Torbay has not picked up on that point, but he might like to do so now. I am sure that he would have mentioned it had he thought of it.

[Kevin Foster]

To be fair, I do accept the very valid points that my hon. Friend makes. Private sector operators can literally change the signs overnight if they wish to change the prices in a car park, whereas a council has to go through very lengthy procedures. Does he agree with me, though, that, at the end of the day councils are meant to be bodies that are charged with delivering the public good in an area? A company or a corporation is, to put it bluntly, looking to make as much money as it can from the asset it owns.

[David Tredinnick]

My hon. Friend helpfully leads me into an area that I wish to discuss in a moment, which is the impact of pricing on car parking charges generally. Let me just make this further point to him and to the House: it is equally important that councils should consider the effect of increased parking charges on the high street. To that end, the clause makes provision for a consultation requirement so that councils take on board the views of local businesses and residents when they are looking to increase parking charges on an existing traffic order. They must already consult when a traffic order is set up, but it is proportionate to expect them to consult if they are raising charges during the life of the traffic order. I say to my hon. Friend the Member for Torbay that he should not fear that this Bill—the de minimis Bill, to quote my hon. Friend the Member for Christchurch—will increase parking charges; it cannot do that.

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[David Tredinnick]

I do agree. I shall discuss the impact the Bill will have throughout the country later in my speech, along with some other figures. First, I shall indulge my hon. Friend by referring to the Portas review, which showed clearly that car parking charges were the biggest barrier to the regeneration of our town centres. That is perhaps no surprise when we consider the fact that the average hourly parking rate in London is £8.44, which is 18% more than the minimum wage. That is a staggering figure.

The “Re-Think! Parking on the High Street” report clearly states that footfall does affect town centre performance, with those towns that have higher footfall generating a higher level of spend. If nothing is done, the high street will remain under threat from out-of-town and online retail facilities, where lack of, or expensive, parking is not an issue.

[Kevin Foster]

My hon. Friend just referred to London having extremely expensive parking charges, but it obviously still has thriving business centres around places such as Oxford Street. Does he agree that London’s economy operates very differently from the rest of the country? Anything like those charges in any other town would have devastated the shopping centres and high street businesses.

[David Tredinnick]

I accept that London is a special case and, of course, my hon. Friends and I do not represent London, but I thought it was instructive to make the point that the charges here are so high.

To follow up on the remarks by my hon. Friend the Member for Calder Valley (Craig Whittaker), it is important to look at how the provisions will operate in practice. For greater accuracy, I asked the Commons Library to provide some figures on the scale of natural settlements—known as built-up areas to most of us—in the country. According to the 2011 census, we have in our country 56 cities, 696 towns with a population of 5,000 or more, and 1,590 villages with a population of between 1,000 and 5,000. Each one of those settlements could be affected by the Bill’s provisions. Pride is a dangerous word in parliamentary life—we can sometimes get too proud—but I am absolutely delighted to have been able to introduce a Bill that does not just affect a particular constituency matter but has a national impact. This Bill is going to have huge ramifications for business.

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The other event that I want to refer to involved completely the opposite situation for traffic: the solar eclipse that took place on 11 August 1999.

[Kevin Foster]

Does my hon. Friend agree that if special events are about communities coming together and bringing in a surge of trade and that if local authorities view them as an opportunity, bluntly, to turn their car parks into a bit of a cash cow and rip people off, we could see an effect similar to what happened with the solar eclipse in 1999 in Cornwall: where places increased prices, people just did not come?

[David Tredinnick]

I have a good recollection of those events, and the Bill is not about raising charges; it is about lowering charges and raising consultation levels. That is the soundbite; that is what the Bill is all about. That is why I ask my hon. Friend to withdraw his new clause.

My hon. Friend talks about private car park owners who wanted to ratchet up charges in Cornwall. My hon. Friend the Member for South East Cornwall (Mrs Murray), who is not here today, has had her own issues with car parking. My hon. Friend the Member for Stevenage (Stephen McPartland), who also is not here, has had such issues and held a successful debate on them in Westminster Hall the other day. There was so much in the newspapers and so much media hype about what would happen and the pandemonium that would be caused by the huge number of people who would go to Cornwall to watch the eclipse, which totally blocked out the light of the sun for about a minute, that nobody actually turned up. As my hon. Friend the Member for Torbay will recall, the numbers were way down and quite the reverse of what was expected happened. Councils might therefore make provision to reduce charges, but then suddenly realise that there is no need to do so at all, rather than waiting for 21 days and losing revenue. In that situation, the opposite applied.

I shall conclude my remarks fairly soon, but I want first to refer to what the Federation of Small Businesses told me yesterday. Apart from generously congratulating me on negotiating the narrows of the rivers to get to this point with a private Member’s Bill, it says that it is wholly supportive of the measures in the Bill, that it will be an additional tool for the Government to support local small businesses and ensure that they and their customers can park, and that is why it is very welcome. The FSB’s research shows that seven in 10 small firms think that parking is a priority for the future of independent shops. It says that independent retailers in town centres are the engines that help to make the UK’s local communities what they are. In its report, “Going the extra mile”, it found that small businesses are overwhelmingly reliant on roads, with nine in 10 firms—about 89%—placing a high value on the network. With so many small businesses relying on the road network, it argues for greater investment. Well, that is predictable. Its final point is that consultation with businesses is required before local authorities increase the cost of parking. That is exactly what clause 2 will provide.

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[Mr Marcus Jones]

I welcome the opportunity to comment on the new clause and the important points made by my hon. Friend the Member for Torbay (Kevin Foster). My hon. Friend the Member for Bosworth (David Tredinnick), who is my constituency neighbour, has already set out in significant detail his views on the new clause. Although the intentions expressed by my hon. Friend the Member for Torbay are good, as they generally are, and in the best interests of constituents, my hon. Friend the Member for Bosworth was right to speak against the new clause. I shall set out the Government’s view on why we do not think that agreeing to it is a good idea.

The Bill will create the power to make regulations to simplify the procedures local authorities must follow if they want to lower their parking charges. It will introduce a consultation requirement if local authorities want to increase parking charges. Parking provision plays an important role in allowing people to access high streets and town centres. Town centres continue to play an essential role in the lives of communities, and parking charges can be an important factor when people choose which ones to visit. As some out-of-town shopping malls provide free parking, councils need to think carefully about the level and range of parking available. Parking charges will no doubt play an important role in people’s choices. The Government are committed to promoting town centres and high streets as thriving places at the heart of communities.

I strongly believe that it is right and proper for local authorities to consult their local communities and town centre businesses when proposing to increase charges. I stress that this is not about the Government trying to dictate to local authorities how to conduct their parking policies. We are asking councils, in a localist way, to take into account the views of local communities before increasing charges. I have a good example from my constituency. The local district council has not listened to the views of local people and has increased car parking charges. As a result, its car parking income has dropped by £350,000. That shows why it is important to consult local people and listen carefully to what they say because the views of local people and business owners are quite often the views of the very people who use and depend on those car parks for their livelihoods.

[Kevin Foster]

It is disappointing to hear that Nuneaton and Bedworth Borough Council does not have the sort of pro-business and pro-growth leadership that it had between 2008 and 2010. Will the Minister reassure me that if this Bill becomes law, the Government will not make it easier to increase parking charges without consultation, and that the measures are purely about making it easier to vary charges downwards so that authorities do not have consultations asking people, “Do you want to pay less?”?

[Mr Jones]

I thank my hon. Friend for his kind words. I reassure him that, following the implementation of the Bill, a council—whether in Torbay, Nuneaton or elsewhere—would certainly have to consult local people before taking the decision to increase charges.

I also reassure my hon. Friend that the provisions will not be implemented on the day the Bill receives Royal Assent. We want to ensure that there is some balance, and that the powers created are practical and proportionate. To ensure that the measures work in practice, we will consult local authorities, the Local Government Association, the British Parking Association and other interested organisations to ensure that their important views are taken into account before the regulations are made and laid. Furthermore, parliamentary colleagues will have an opportunity to consider any regulations in the normal procedures for secondary legislation. My Department will undertake a new burdens assessment to establish the administrative effect on local authorities of the duty to consult. The Bill will strengthen local democracy by giving people and businesses a voice in decisions on car parking charges that have an impact on the vitality of a town centre.

--- Later in debate ---

[Mr Jones]

It is always good to be part of the legislative process when the hon. Gentleman is on the Opposition Front Bench.

Helmsley is an interesting example. It was the winner of the 2015 Great British High Street competition—a competition I thought at the time would put paid to my ministerial career. Helmsley was in the final with Chipping Norton, which was in the constituency of the former Prime Minister, David Cameron. When Helmsley beat Chipping Norton in the final, I thought my life would not be worth living, but I am glad to say the former Prime Minister did not hold it against me.

Helmsley is an important example because it has a significant number of visitors, and provision has to be put in place for coaches and buses to park. Buses parked in a bus station is possibly a different situation, and I will probably have to come back to my hon. Friend about it. However, many events happen in places such as Helmsley, and local traders might be very heartened if the local authority used the Bill’s provisions to reduce its car parking charges.

In conclusion, good communication between local authorities and the public is absolutely vital for a healthy democracy. That extends to local authorities being clear about their decision-making process. That means the public knowing why decisions are taken. Such decisions affect individuals and their communities and—this is not overstating the matter—can have a profound effect on the lives and jobs of many, many people.

[Kevin Foster]

I thank the Minister, and particularly the Member in charge of the Bill, my hon. Friend the Member for Bosworth (David Tredinnick), for their comments in response to the new clause. As I said, I moved it to be clear about the purpose of the Bill and what procedures will be created under it in relation to local authorities and what they can do.

I fully accept that it is right that there is flexibility, and the full drive of the Bill is to make it easier to vary parking charges downwards. Therefore, having heard the extensive reassurances provided by the Member in charge, which were particularly persuasive—he succeeded in his goal—and the reassurances from the Minister, I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.



Third Reading

--- Later in debate ---

[Craig Whittaker]

A massive point about the floods was the great outpouring of support for our communities from the whole of the UK—we had not tens, dozens or hundreds of volunteers, but thousands and thousands of people coming to the Calder Valley, as no doubt other areas did as well. People came from Cornwall and even from overseas to help. There were firemen and other people bringing food, mops, buckets and cleaning materials. People were out helping, and my hon. Friend is absolutely right that giving something back to them—for example, free car parking—would have been a gesture, though an incredibly small one compared with the huge support they gave us as communities at that awful time.

As I was saying, ideas such as parking on certain days or a limited reduction in charges could have been considered and implemented with minimal fuss under the powers awarded to local authorities through the Bill. Such measures would have provided traders in the towns with a real boost at the very time they were struggling to attract football—excuse me, footfall; we do not particularly want football, because we do not have a football pitch—back to the high street and to get back on their feet.

It is now over 12 months since flooding hit the Calder Valley, and the effects are still being felt by many businesses. Elland bridge, which is one of the main gateways to the town centre of Elland, was destroyed by the floods and remains closed to traffic, in effect cutting Elland in half, which is similar to what we have seen in such places as Tadcaster. Traders and small businesses in Elland have struggled with significantly lower levels of footfall over the past year, not least as a consequence of the closure of the bridge. Under the Bill the local authority could have sought to introduce an imaginative strategy to bring people to the town. This would have provided a huge lift to the traders and the community, and it would have been a clear signal that the town was open for business.

It is absolutely vital that councils have the flexibility to reduce or suspend charges at short notice to stimulate the high street. That may be done in relation to exceptional circumstances such as those that I alluded to, or it might be done to support a community event or festival—for example, charges could be reduced in the run-up to Christmas. Furthermore, the provisions would allow councils to experiment and innovate. In many towns there is a significant difference between the levels of occupation in different car parks and on-street parking bays in the same locality. The Bill would allow councils to develop temporary incentives to increase the awareness of under-utilised assets and to see which parking strategies best suit particular areas in a town.

Requiring 21 days’ notice and the announcement to be published in a local newspaper and posted in the appropriate area is both overly bureaucratic and totally unnecessary in this day and age. When the council is competing with the private sector, as it is in many areas, this puts them at a significant competitive disadvantage, as private firms can currently vary charges as they see fit.

[Kevin Foster]

Does my hon. Friend agree that it could be right to have some restrictions to make things slightly more difficult for councils? That might help to deal with the sort of rapacious behaviour he described from his council when the Labour party is in charge of it.

[Craig Whittaker]

My hon. Friend is absolutely correct. I referred earlier to having spent 30 years in retail, and I know that when there is a proper parking strategy in place, it benefits everybody. I remember that when I was a general manager for Wilkinson home and garden stores in its development store in Bury in Lancashire—I hope that will not be held against me, as I represent Yorkshire—the council put a proper strategy in place at the car park next to Wilkinson’s, and our business increased by 15%, which was a significant uplift. My hon. Friend is right that by getting the strategy right and ensuring that we have a proper open and honest debate about what can benefit all parts of a town, whether the high street or the area around a hospital, we can make a huge and vital difference not just to businesses but to residents and people coming into the town.

[Craig Whittaker]

I think I said earlier that it is welcome when councils do things well, but sadly there are far too many that do not. My experience is of a Labour-controlled council in Calderdale, which has openly admitted that it uses parking as a cash cow, as did Barnet Council, which was taken to court. I was not being particularly partisan; I was merely pointing out that Calderdale is a Labour-controlled council that has been open and honest enough to say that it has used parking as a cash cow.

[Kevin Foster]

My hon. Friend will recall that I intervened on the Bill’s promoter, my hon. Friend the Member for Bosworth (David Tredinnick), on Report earlier today, saying that trying to compare central London with the rest of the country is patently ridiculous. The reason why Westminster council makes a lot of money out of parking is that it is in the very centre of London.

[Craig Whittaker]

As always, my hon. Friend makes a valid point. The strategies that councils have in place in the centre of London, Manchester, Birmingham or Leeds will be entirely different from those in some of my smaller local villages, such as West Vale, Ripponden, Hebden Bridge, Todmorden and Brighouse.

--- Later in debate ---

[Helen Whately]

I shall do my best to focus on the content of the Bill. I must congratulate my hon. Friend the Member for Bosworth (David Tredinnick) on bringing in this brief but important Bill, which, as other Members have said, could be of such benefit to our constituents. It is a pleasure to follow my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) who has talked about the many benefits of the Bill. Although I will try to stick to the topic, I will follow his example in ensuring that I do not duck the issues that need to be raised.

I am very lucky to represent a constituency that is peppered with historic towns and villages. In particular, there is the historic market town of Faversham and the villages of Lenham and Headcorn. I mention those not because the other villages are not worthwhile and worth visiting, but because those three all have car parks. The car parks are very important, as they allow residents to access the shops and services in each of those centres. Despite the pressures and the appeal of out-of-town shopping, supermarkets and the internet, those centres are doing pretty well.

Just last year, Faversham was a rising star award winner in the Great British High Street awards. I take great pleasure in regularly shopping in the town. There are lots of small shops that provide goods and services that can be quite hard to find. If someone goes to the supermarket or an out-of-town store, they are unlikely, for instance, to be able to get their pictures framed. In town, they can get a fabulous selection of flowers in the florist—an appropriate bunch can be made up for them to take to an event. A yarn shop has recently opened, serving the boom in knitting, sewing and crafts. There are new shops opening in the town as well as many historic sites to visit.

These towns and villages are managing despite the pressures that they are under, but it is not easy. Sadly, Faversham had to say goodbye to its sweetshop just a couple of weeks ago. It was a lovely feature of the town, as all its sweets looked so attractive. That has now fallen foul of the pressures we have been discussing, as well as our attempts to live healthier lives. Perhaps the children of Faversham are not eating so many sweets now. I know that my son will miss going to that shop when we cycle into town; it has been a destination for us.

I value our towns and village centres enormously, as I know many of my constituents do. It is not just about the shops that we can visit, but the way in which these centres serve as a community meeting place. People in the market square, or in the marketplace in Faversham, will often bump into somebody they have not seen for a while. For me, it is a great way to catch up with constituents and councillors. I almost always meet not one but several people as I go through Faversham. My husband knows not to expect me back at the time I have said, as I will inevitably meet several people and have long conversations as I go through.

[Kevin Foster]

Does my hon. Friend agree that one way of keeping town centres vibrant and strong and, as she says, centres of the community is to ensure that car parking prices vary depending on the events that are going on and to encourage people to go into the town? Prices should also be competitive.

[Helen Whately]

That is exactly why I am discussing the value of town and village centres and their importance to the community. Car parking charges can help towns and villages to play exactly that role.

As I was saying, chance meetings in the town or villages centre are a valuable part of keeping communities strong. We need our communities to get stronger again, so chance meetings are really important. I would not deny that large out-of-town shopping centres have an important role to play. Some of my constituents will go to the Bluewater centre when they want to get clothes or do a big shop. It is not in my constituency, so I am not a regular visitor there, but I know it has a role to play. Nevertheless, it is not the place where people are going to bump into somebody they have not seen for a while, or at least they are not so likely to.

It is difficult for our towns and villages to compete with destination shopping sites and with the internet, and parking charges are a factor in that. Other Members have referred to the Federation of Small Businesses, the Portas review and several other sources that say that car parking charges are a significant factor in people deciding where they are going to shop. In a rural area, as much as we want to encourage people to use other modes of transport, the reality is that the car is how most people need to travel, so parking charges are a factor in most people’s shopping decisions.

For the sake of our towns and villages, many of us would like to see car parking charges that are as low as possible. Nevertheless, having discussed this with some of my local councillors, I do understand that it is not as simple as just putting charges down to the lowest possible level, or getting rid of them altogether. The revenue needed to maintain car parks is an element. Also, if there is a station near the town centre, we do not want the town centre car park to be used for all-day station parking. There is a risk that were car parking charges to be completely got rid of, such a car park would just be used for station parking and there would be no footfall from people coming and going because they would not be able to use the car park to get to the shops. It is therefore important for there to be flexibility in the level of parking charges.

It is also important for a council to be able to experiment and find out what works. Critically, as the Bill would allow, we must enable councils to reduce car parking charges at certain times and for special events. If there is a station in the town, it may be impossible to have very low parking charges all the time, but the charges could be reduced for specific events. Faversham is a fantastic town for special events. My hon. Friend the Member for Thirsk and Malton mentioned the food festival in Malton in his constituency; well, Faversham has a food festival and a separate beer festival—we do not have to have them on the same day! Actually, it is known as the Faversham Hop festival; I shall be called out if people think I have been calling it the beer festival. Incidentally, a lot of people come to that particular festival by train; hon. Members may understand why.

We have a food festival, and also a hat festival. We have a nautical festival, because Faversham is nautical town as well as a beer town, a transport festival, and markets on the first and third Saturdays of the month. There are many events to come to in Faversham, and those could be days for the council to drop car parking charges. Or, the council might experiment with dropping the charges on days when the town is quieter as a way to bring people into the town when no event is taking place. The point is that the Bill is about giving councils more flexibility so that they can make changes and test what works to bring more footfall into the town. That is why I am delighted to support the Bill.

It is worth emphasising, however, that increasing car parking charges is another matter. Such increases should be consulted on with some rigour, because they are a concern for residents and businesses. Given how parking charges affect people’s decisions, increasing them could clearly be a concern for businesses and some might worry that they would be put out of business, so it is absolutely right that there should be consultation if car parking charges are to increase.

I checked with my local councils what their thoughts were about the Bill. I was in touch with Councillor David Burton, the chair of the transportation committee of Maidstone Borough Council, which is one of the two councils that my constituency overlaps with, and he said that he was happy with the Bill and that it will place no extra burdens on local councils. I thought that that was a good thing to hear. He flags up how he thinks that the excellent modern transport Bill will be valuable. He emphasises that councils will have to move quickly to keep up with the pace of change.

I certainly welcome the fact that my local councils have been good at introducing payments by smart phone for car parking charges—a method that is helpful, when thinking of flexibility, in enabling people to pay as they leave or to top up easily while they are parked. It is important that councils use such things to help to support local towns and villages and the shops in them.

To conclude, I very much support town and village centres and want to see them thriving. I am therefore delighted to support the Bill.

--- Later in debate ---

[Jo Churchill]

No, I do not. The beauty of this Bill is its simplicity, and that is why I would like it to go through today. However, as with most things in this place, we live in a fast-moving environment, where things constantly change around us.

My point to the Minister is that, where we have a complexity of local government, with different authorities having responsibility for car parking, we should perhaps look to address that as we go forward.

[Kevin Foster]

Does my hon. Friend recall, like me, that the Bill had its Report stage earlier today? That would have been an opportunity for anyone who had objections to the wording of the Bill to make some changes, and I suggested a new clause myself.

[Jo Churchill]

Indeed. I could not agree more with my hon. Friend. A plethora of people have spoken to the Bill today, but there has been somewhat of a dearth of Opposition Members not only saying what benefits a simple Bill such as this could bring but challenging it, as it would be appropriate to.

--- Later in debate ---

[Kevin Foster]

I am conscious of the time and how much has been said already, so I will keep my remarks rather brief.

As I said when I withdrew my new clause, I think it is absolutely right that this Bill goes forward in its current form. It will give local councils a valuable opportunity to vary charges downwards without going through the consultation process that currently exists. It is right, if charges are going up, to get a feel for the whole community’s perspective, but somewhat bizarre that under the current rules and legislation the council has to spend money to do something that would cost it money, but for a wider benefit. The Bill will be very beneficial in dealing with some of the issues that I used to encounter when I was in local government. I will not go through a whole list of the festivals and events that happen in Torbay—I covered some of that on Report—but I do think this will be a valuable opportunity in that regard.

The key thing that I would like to hear from the Minister is how, assuming this Bill is successful in the other place, the Department for Communities and Local Government will work with councils to make sure that its provisions are used. The point that I sometimes make in debates on Fridays and at other times is that legislation is not just something we do for the fun of it—it will actually have an impact. What interest and assessment has he already had from authorities that will look to use this power? What will he do to promote it once these provisions are brought into effect? I will be interested to hear his comments about how this work will be taken forward. This Bill is in the right form and perfectly acceptable, and it should receive its Third Reading today.

Oral Answers to Questions

Kevin Foster Excerpts

Tuesday 29th November 2016 Commons Chamber

[Jane Ellison]

I thank my hon. Friend for those words. Having looked carefully at the profile of complaints from Members over the period of the contract, it is clear that there was sharp increase in their number right at the end of the contract, when it became apparent that a number of Members were contacting us on behalf of their constituents. As I have said, it was the sharp decline in service that led to the actions that we took. It is also worth noting that all the 181,000 cases that were taken back have now been resolved and that, where appropriate, compensation has been paid. Most importantly, when claims have needed to be renewed and reinstated, this has been done.

[Kevin Foster (Torbay) (Con)]

Given the issues in my constituency that I have raised, I am pleased that the Concentrix contract has now been brought to an end. Does the Minister agree that an inquiry by the National Audit Office, which works for and answers to this House, will be far more effective in getting lessons learned than a long-winded public inquiry that could become a lawyer-fest?

[Jane Ellison]

My hon. Friend is exactly right to say that the National Audit Office inquiry is the way to go. This is an area in which it is deeply experienced and the work is already under way. The report will be produced in the new year. In order to draw conclusions and to find these reports helpful, that speed of inquiry is important. We will have the report early in the new year, and the House will have further chances to scrutinise it at that time.

Autumn Statement

Kevin Foster Excerpts

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

We have put £800 million of additional resource into HMRC. If the hon. Gentleman looks at the statement today, he will see that we have put some more money in today. But much of the way in which HMRC operates is about having specialist units, which often have to be concentrated; it is not about the old local office structure that has traditionally been in place. If we want effective action against the most complex forms of tax avoidance and evasion, we have to be prepared to go with the recommendations of the experts.

[Kevin Foster (Torbay) (Con)]

I listened carefully to the Chancellor’s autumn statement, and I then carefully read the Green Book to find the reference to the resilience of the Dawlish coastal railway on page 29. I know he is not doing individual schemes, but am I right in assuming that the inclusion of this £10 million preparation project and work is an indication that the massive infrastructure investment that has been talked about is likely to include the nearly £300 million project to secure that line, which this work is the preparation for?

[Mr Hammond]

My hon. Friend can take this as a clear indication that this is a high priority in terms of rail resilience. We are all acutely aware of the vulnerability of the rail system in the south-west as a result of flood risk, and this is the first step to resolving that.

Concentrix

Kevin Foster Excerpts

Wednesday 26th October 2016 Commons Chamber

[Rebecca Long Bailey]

We can all learn lessons by reviewing the handling of payment-by-results contracts. I hope that the Minister will consider those experiences when she conducts a review of the delivery of such contracts.

[Kevin Foster (Torbay) (Con)]

Will the hon. Lady give way?

[Sammy Wilson (East Antrim) (DUP)]

Will the hon. Lady give way?

--- Later in debate ---

[Kevin Foster (Torbay) (Con)]

It is a pleasure to follow the hon. Member for Paisley and Renfrewshire South (Mhairi Black). I welcome the debate, and the opportunity that it gives us to talk about the issues involved in the Concentrix contract, although it is worth noting that it is a month since our exchanges in the House about the Government’s intention to cancel it.

I believe that our goal should be to ensure that the people who pay for the benefits system through their taxes can be confident that fraud and error are kept to a minimum. However, that went badly wrong in this instance, and examples in my constituency reveal some of the places where it went wrong. The hon. Member for Paisley and Renfrewshire South gave us the interesting example of a “philandering shop” in Scotland. In my constituency, someone had supposedly moved in with a bloke living down the road. They rang Concentrix to try to deal with the matter and get some answers, but found that it was quicker to walk to my office with the phone—while still on hold—and sit there for about 20 minutes while we made them a cup of tea and enjoyed the “hold” music that they were listening to. To prove that this had happened, I took a photo of the phone as it went through the hour on hold in my office.

To be fair to Concentrix, it did only take four minutes to tell my constituent “Actually, you should ring HMRC”, but that was the only part of the customer service that was particularly speedy. The only other remarkable thing is that, given the level of concern and the number of issues that have been raised by Members and others, Concentrix was itself surprised to be told that the contract would not be renewed.

[Neil Gray]

Does the hon. Gentleman agree that our constituents deserve an apology for the way in which this matter has been handled not just by Concentrix, but by his party’s Government and HMRC?

--- Later in debate ---

[Kevin Foster]

The focus should be on what went wrong, waiting to see what the National Audit Office comes up with—I shall say more about that shortly—observing the reaction to that and dealing with the issues, rather than getting into a debate about whether the gesture of an apology should be made. That said, I am pleased that the Government are not seeking to nit-pick the Opposition motion, that we are not going to divide the House, and that, effectively, we will support the motion. That, I think, speaks for itself.

In the light of the problems that had been raised with me, I welcomed the Government’s action in making it very clear that the contract would not be renewed. It is over a month since the last new case was sent to Concentrix. I am also pleased that HMRC is moving in to resolve many of the issues.

[Patricia Gibson]

Will the hon. Gentleman give way?

[Kevin Foster]

Will the hon. Lady give it a moment? I shall make some more progress, for now.

I said that HMRC was moving in. It should be noted that that organisation has had its own customer service issues in the past. In fact, in the next half hour my fellow members of the Public Accounts Committee will be discussing and examining its customer service. There have been some welcome improvements recently, but many Members who are present today will have had their own experiences of sitting and waiting to get through to the “hotline”.

[Sammy Wilson]

It is not surprising that when HMRC was challenged to specify the number of cases it had dealt with that had involved errors and how long it had taken it to respond to those errors, it could not give the figures. We cannot even make a comparison between HMRC’s performance and that of Concentrix.

[Kevin Foster]

This afternoon we received a fairly detailed report produced by the National Audit Office on HMRC’s annual report, which is being discussed by the Public Accounts Committee and which goes into some depth about HMRC’s performance and customer service standards. It can be read in comparison with what we have heard about Concentrix. The PAC is also discussing the tax gap, and the need to ensure that HMRC is performing as we would expect it to in ensuring that the taxes for which we legislate in the House are paid by those who are required to pay them. I genuinely welcome the fact that the National Audit Office will be investigating this matter, and, in that context, I think that some of the comments that have been made today may have been slightly premature.

I was going to intervene on the shadow Minister when she was commenting on our having an independent and fearless inquiry commissioned by the Government. I was struggling to think how more independent and fearless an inquiry could be than a report by the NAO, which is an arm of this Parliament, not of Government. It produces its reports independently. Yes, it will liaise with Treasury officials to ensure that facts are agreed when coming to its conclusions, but ultimately the Comptroller and Auditor General and his team answer to this House via the PAC. It has never held back from making comments, no matter how difficult and challenging for Government Departments, where required. The shadow Minister might wish to intervene and tell us how she felt that another inquiry would be different from that, but I think the right way forward is to get the NAO to look at this and bring a report that can be scrutinised fully and in depth in this House from a team of subject experts who understand how HMRC, the DWP and the benefits system work, and who owe a duty to Parliament, not to the Government. I am sure the depth of information they bring forward will inform future debates on this subject.

[Chris Law]

Is it not clear, then, that the approach over past years of reducing HMRC staff numbers must stop, and stop today? The current Government programme to reduce staff numbers from 55,000 to 35,000 is short-sighted, and from the evidence we have heard today it is clearly time to reverse that.

[Kevin Foster]

I encourage the hon. Gentleman to read the HMRC report being discussed this afternoon by the PAC; it might be worth his attending the session if he gets the chance. It is worth noting that with new leadership, which has been needed for some time, HMRC is starting to turn around its customer service, by moving more staff into dealing with post, for example. There is some evidence that the customer service is improving, therefore, which is welcome, although I know that some of these assertions will be robustly tested by a number of Members, including the hon. Gentleman’s party colleague and PAC member the hon. Member for Coatbridge, Chryston and Bellshill (Philip Boswell).

It is vital that the investigation is full and that we look at what comes out of it. I welcome the Minister’s saying that there is an ongoing negotiation about concluding the contract early. We cannot go into the details of that today for obvious reasons, but I hope the work being done to bring this whole sorry tale to an end will be shared with the NAO as part of its inquiry.

One of the conclusions to be drawn is that it is clear that people have been caused pain and suffering that they should not have been caused. People have been subjected to allegations that were flagrantly untrue: the “philandering shop”; the person living down the road; someone who has been dead for some years. We should think about the way the contractor went about things—sending letters with the contractor’s logo that looked very similar to official Government or HMRC letters. We might have debates about whether in future the symbol of the Crown and HMRC should be used on a letter sent by a contractor.

[Dr Philippa Whitford]

Many of the constituents who came to me did not appear to have received a letter at all. A letter with some strange logo on it might not register as being what it is about and therefore might get overlooked.

[Kevin Foster]

I understand that point, but the evidence from my constituency case load is that it cut both ways. Some people saw a logo that looked like it was from HMRC and wondered what the letter was about. This matter might require further inquiry, and we should consider the information that the NAO will bring forward. The NAO does not just look at the sums. It is not just going to work out how many people got paid for what. It will also go into the detail around the customer service, and certainly in previous reports it has been extremely thorough when doing so.

I welcome the overall tone of the Minister’s response to this motion, and I welcome the fact that the Government took clear and decisive action to bring this contract to an end and are continuing to do that and to prevent more people from having to experience the issues many Members have highlighted today. I hope the monitoring will go on because, as we have seen with past issues to do with HMRC, an in-house solution is not necessarily a magic bullet to achieving amazing customer service. We have only to look at past debates on HMRC’s performance to see that. I welcome some of the tone of today’s debate, but it is now absolutely clear that we need to resolve the outstanding cases, let the NAO do its work and then form our conclusions based on the evidence it brings to us.

--- Later in debate ---

[Louise Haigh]

That is a major concern, not least because HMRC has now had to allocate hundreds more staff to deal with the backlog that Concentrix caused, because this was failure on a monumental scale from start to finish. It seems that Ministers did not pay the blindest bit of notice until the scandal reached the media, because we now know that HMRC was about to renew the contract before the scandal hit.

The Government have traded on welfare as a dirty word, and now they are seeing the despicable consequences of their political attacks: single parents and families who have done nothing wrong being ruthlessly pursued by an unaccountable US firm for profit. Could this contract have been drawn up had the Government not fuelled a contemptible narrative about those on low pay and those who rely on tax credits to get by?

We welcome the fact that the National Audit Office will be investigating the drawing-up of this contract. Can we be assured that that will include the management of the contract and the profiling assumptions underpinning it? Will the NAO release any impact assessment that must have accompanied the contract? Will the Minister assure us that any compensation awarded will not be counted towards tax credit awards?

[Kevin Foster]

Does the hon. Lady agree that the National Audit Office is independent and works for this Parliament, not for the Government? Therefore, the NAO would structure how it conducted its inquiry, not necessarily a Minister. That is the core of what we want: somebody independent who will get to the nub of this and present evidence to this Parliament, not necessarily the Government.

[Louise Haigh]

I completely agree, and it is vital that this is an independent review, because, as we have heard on both sides of the debate, these problems originate from the Government themselves. However, we need to know that this information will be published, and if the NAO does not do that, we would call on the Minister to publish it alongside this inquiry.

Above all else, if the Government’s rhetoric is worth a penny, they will surely pledge to call time on contracts such as this, which target innocent single parents and families, and encourage the private sector to profit from them. That has no place in our welfare system.

--- Later in debate ---

[Peter Dowd (Bootle) (Lab)]

I am glad to follow the hon. Member for Inverclyde (Ronnie Cowan).

We have heard many interventions and speeches. The hon. Member for Paisley and Renfrewshire South (Mhairi Black) talked about a fishing expedition on the part of Concentrix. She enlightened us about the real Casanova of Scotland, R. S. McColl—I thank her for that—but more importantly, the cataclysmic effect of this flawed process. The hon. Member for Torbay (Kevin Foster), in a thoughtful contribution, gave us the experiences of his constituents and welcomed the Government’s actions in relation to the renewal of the contract.

My hon. Friend the Member for Stretford and Urmston (Kate Green) focused on the policy design that has led to single women, in particular, being affected or targeted, talking about the effects on their children and setting out a series of questions that went to the heart of the matter. The hon. Member for Gloucester (Richard Graham) discussed the relative value and efficiency of the contractor’s services, the role of HMRC, and the role of incentives in contracts of this nature. The hon. Member for Ayr, Carrick and Cumnock (Corri Wilson) talked about a conflict of interest and the bad practice of Concentrix. My hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) spoke of a series of constituents, usually single mothers, who have been distressed by the process, citing a catalogue of errors, and the need to fast-track these people’s benefits. My hon. Friend the Member for Merthyr Tydfil and Rhymney (Gerald Jones) talked about the hardship caused to his constituents and the common factors in the contractor’s lack of understanding and of compromise.

The hon. Member for Foyle (Mark Durkan) welcomed the personal intervention of the Financial Secretary, but questioned HMRC’s role in the process and spoke of the need for a change in its culture. The hon. Member for Dundee West (Chris Law) gave a number of examples of how people are being pushed into poverty. My hon. Friend the Member for Garston and Halewood (Maria Eagle) mentioned the influx of cases in August and asked what had caused that spike. She also talked about phantom tenants, the unreachable, and the harsh and inaccessible bureaucracy.

My hon. Friend the Member for Sheffield, Heeley (Louise Haigh) said that we want a system that supports people, not conglomerates, and a Government who will ensure that people, not corporates, are at the top of the agenda. My hon. Friend the Member for Ogmore (Chris Elmore) talked about the effect on single mothers, but also asked the key question of how many others have been affected, have not been able to reach out to their MPs and have suffered in silence.

The hon. Member for Ochil and South Perthshire (Ms Ahmed-Sheikh) suggested providing support for free communication with HMRC, and the hon. Member for Inverclyde said that the responsibility lies with the Government and that the citizen’s relationship should be with the state, not individual contractors.

I welcome the Minister’s mea culpa, but it does not go far enough. In last week’s Westminster Hall debate, I said that I, like other hon. Members, had been contacted by distressed constituents who had had their child tax credits stopped, with scant attention paid to due process. In effect, the plenipotentiary powers given by the Government to Concentrix to act as it saw fit to punish and penalise tax credit claimants were used with an alacrity bordering on the enthusiastic and manic. It has come to something when it is difficult to put a cigarette paper between the question of who, out of the Government and Concentrix, has been the bigger of the two culprits, but, following the principle of, “Whoever pays the piper calls the tune,” I opt for the Government.

As I said in last week’s debate, it does not take a genius to work out that, if a company is paid on the basis of bonus or commission to find tax credit error and fraud, it will start with the easy targets. In pursuit of a business model approved by the Government, Concentrix pursued people, mainly working women, to provide information. It was nothing short of overbearing state intrusion into private lives, but it was done under the guise of reclaiming taxpayers’ money from fraudsters and cheats, which is how many people felt that they were treated.

The plain fact, however, is that there was no evidence. In many cases, the victims of that intrusion were left penniless and had little capacity to fight back, as many Members have said. Meanwhile, the Savings (Government Contributions) Bill, which is currently in Committee, encourages people to save money. One agent of the Government administers the giving away of taxpayers’ money while another takes money away, by diktat, from working women. What a topsy-turvy state of affairs.

The whole process was deeply flawed and, as has been said, operated on the presumption that people were guilty until proven innocent. Apparently, a claimant would be sent a letter by Concentrix indicating that they were not meeting the standards for a child tax credit claim, and requiring them to provide evidence of their occupancy arrangement. Some attempted to call Concentrix, only to find that the number was engaged, but if the company did not hear from the claimant, their tax credits were stopped summarily.

I do not know whether Ministers were consulted on, or asked to sign off, that process. I asked that question last week, but did not receive an answer, so I ask them to enlighten us. Even Atos did not have the power to withdraw benefits. Concentrix was given carte blanche to do so, in a licensed way, by the Government, who were in the throes of renewing the contract for a job well done, which is remarkable. Did Ministers ask why Concentrix had so many savings on its books, and did they listen to the complaints of many of our constituents at an earlier stage?

Last week, the Economic Secretary claimed, very creatively, that it was the Government who stepped in to get things back on track when they realised that the service being provided by Concentrix was not good enough. That rewriting of history would be risible if the matter was not so serious for thousands of mothers all over the country. In reality, it was the Opposition who originally asked the National Audit Office to investigate, and we pushed for oversight and demanded action for the thousands of families who have still not received payments from Concentrix. The Government took action only under duress and pressure from the Opposition and the national media.

[Kevin Foster]

Does the shadow Minister agree that, given earlier comments, it is important that the National Audit Office leads the investigation into what happened, because it is independent and answers, ultimately, to this House, not to the Government?

[Peter Dowd]

That is a statement of the situation as it is. The key thing is that we need an independent investigation to get to the bottom of this.

The Government have said that the contract will not be renewed beyond the end of May 2017, but that still leaves us seven months. I am pleased that staff have been brought into HMRC, and I would like to know what measures the Government are putting in place to ensure that there is total oversight of Concentrix throughout the period and to make sure that nothing else goes wrong. When all is said and done, this is a question of the performance management of a government contractor, and a clear lack of oversight by the Government.

I deduced from the Economic Secretary’s inadequate response to the Westminster Hall debate last week that HMRC handed over third-party data to Concentrix and left the company to it. There was no oversight and, in the Minister’s own words:

“Concentrix…then chose who to pursue from those data.”—[Official Report, 18 October 2016; Vol. 615, c. 261WH.]

The Government have given Concentrix a free hand to intimidate and falsely accuse hard-working mothers of fraud. The Opposition want to know who signed off that decision and why there was no accountability. The Government have announced a £100 hardship payment for those affected, but no amount of money can make up for the struggles that those women faced after their tax credits were wrongly stopped, and we need an apology. As many other Members have done, I ask the Government to give that apology.

Concentrix will have the contract for a few more months, but it does not seem to have suffered any sort of penalty for its actions. We would like to know what is happening in that regard. Can we have a precise figure for how many decisions Concentrix got wrong? In how many instances was payment reduced because Concentrix failed to meet its performance standards? Perhaps the Government’s refusal to answer such questions and release the relevant information is because even with deductions for poor performance, Concentrix has still made huge profits on the backs of desperate and vulnerable people. We need answers to these questions. Perhaps an independent investigation—maybe by the NAO—will give us those answers, but whoever gives them to us, we need them as soon as possible.

--- Later in debate ---

[Simon Kirby]

I will cover that matter later, but there are clearly lessons for all of us to learn.

[Kevin Foster]

Given the number of people affected, what work will the Government—the Treasury, working with HMRC—carry out to help local advice centres that, like Members of Parliament, may be approached by people for advice about what to do if they receive such letters?

[Simon Kirby]

I will certainly ask HMRC to look into that. The important point is that this is about helping people. It is easy to stand in the Chamber citing figures and trying to pretend that something is not what it is. This is about making sure that the most vulnerable people get the money that they deserve, and about clearing the backlog as quickly as possible.

This issue is about customer service. Everyone has a right to expect a good level of customer service. There is no doubt that the customer service provided in recent times was simply not good enough and not up to the standard clearly specified in the contract. As a result of that poor performance, a great deal of worry and distress has been caused to the often vulnerable people who claim this benefit. We heard lots of very good examples of that today. I do not think that any MP is in any doubt that vulnerable people have suffered worry and distress. I advise anyone who has been adversely affected to get in touch with HMRC, which will take all complaints seriously and provide compensation where appropriate.

I move on to specific issues that hon. Members raised. The hon. Member for Paisley and Renfrewshire South (Mhairi Black) suggested that Concentrix targeted people at random and engaged in fishing expeditions, which the hon. Member for Bootle (Peter Dowd) also mentioned. That was not the case—Concentrix was not allowed to engage in fishing expeditions. It is important to note that when information was incomplete or suggested that something was wrong, customers were asked to provide further information to enable an informed decision to be reached.

Sale of Annuities

Kevin Foster Excerpts

Wednesday 19th October 2016 Commons Chamber

[Simon Kirby]

It is fair to say that there are often circumstances where information or announcements are market sensitive, and sometimes that drives how things are announced.

[Kevin Foster (Torbay) (Con)]

Given that these retirement annuities can form the bedrock of many people’s financial security, it is right that a decision is taken to secure the interests of those people rather than to press ahead purely because of a manifesto commitment. Will the Minister reassure me, though, about what work the Treasury is doing to ensure that people get a better deal on their annuities in the first place? For many people, looking to cash in their annuity in was about trying to deal with the bad deal they got on that annuity, not necessarily about wanting a lump sum.

Small Charitable Donations and Childcare Payments Bill

Kevin Foster Excerpts

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons
Tuesday 11th October 2016 Commons Chamber

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

It is a great pleasure to follow my hon. Friend the Member for North East Hampshire (Mr Jayawardena), who made some excellent points with his customary eloquence. I agree with what he said.

Today’s debate gives me an opportunity to showcase one or two examples of charitable works in Dorset that go particularly well. I will start by mentioning Wimborne rotary club and its yearly Great Santa fun run. Picture, Madam Deputy Speaker, 100 men, women and children running around the local point-to-point course dressed up as Father Christmas the week before Christmas. It sounds fun and of course it is. Gone are the heady days when we aimed to win the competition—merely completing the course is a prize in itself these days. Each year, the run raises several thousand pounds for charities and good causes.

Back in 2013, when the Small Charitable Donations Act came into force, my wife was the parish church treasurer and gift aid administrator, so I know how welcome were the changes that simplified and reduced bureaucracy, as people no longer had to fill out complicated forms to secure gift aid on gifts of £20 or less.

[Kevin Foster (Torbay) (Con)]

My hon. Friend is giving an excellent speech. Does he agree that the key point to remember is that churches are not just places of worship on a Sunday but living, breathing parts of the community? For example, the Living Room initiative at St Mary Magdalene church in my constituency provides tea, coffee and bacon sandwiches for many people who have nowhere else to go.

[Michael Tomlinson]

I could not agree more with my hon. Friend, who makes an excellent point. The Bill will help all groups—not just church groups, but many others—in reclaiming gift aid and slimming down bureaucracy. I warmly welcome the Bill’s aim of further reducing bureaucracy by, for example, getting rid of the two-year rule. That will help new charities enormously and will encourage those thinking of setting up charities to do so.

--- Later in debate ---

[Chris Green]

Absolutely; I agree entirely. I was just thinking about the fantastic work done, often in hazardous conditions, by the Bolton Mountain Rescue Team. It is not just the team itself that raises money. Rotary clubs and other organisations raise a lot money for them, too. Civic society is so important. We ought not always rely on central or local government to do everything for us. We ought to look to civic society for many important things in our daily lives. By celebrating, recognising and communicating that as widely as possible, we provide the opportunity for more people to hear about such work and get involved in these organisations. Recently, I worked a shift in the local Bolton Hospice Macmillan Cancer Support shop. Little did I realise how much time and effort goes into running the small charity shops on our high streets. A fantastic amount of effort and organisation goes into them. The relationship between the volunteers and professionals is also fantastic. Professionals in charities are able to provide continuity and a political edge.

[Kevin Foster]

My hon. Friend talks about how charities are supported by volunteers and professionals working together. The Torbay Community Development Trust supports a number of small charities by providing an administration hub. The Bill will reduce administration, but there will still be a need for this kind of support so that volunteers can get on with the job that they want to do.

[Chris Green]

I agree entirely. That support network is often vital and it really sustains people. People who run charities can think they are in a uniquely difficult place, so it makes it so much easier if they can share ideas and overcome problems. Colleagues have talked about the importance of communication and awareness. Local media have a key role in communicating these changes. I am looking forward to a “Wearing it Pink” event for breast cancer awareness, which will take place on a week on Friday. I have been assured that there will be a pink buffet with pink marshmallows and pink drinks. I just haven’t decided what to wear. If hon. Members have any ideas, please let me know. I am sure the whole House would like to wish them well.

The Bill will allow charities to claim gift aid from contactless payments of £20 or less. This respects the modern way in which people now pay and donate to charities. The scheme is not a replacement for gift aid itself. It is important that gifts are made in person to retain the local link, as required by the scheme. It is important, too, to recognise that £20 is a reasonable amount of money. It is not excessive. I think that for most people £20 will be seen as a reasonable small donation. Keeping in mind the sense of a country that works for everyone, I am more than happy to support the Bill.

[Peter Dowd (Bootle) (Lab)]

May I begin by thanking all hon. Members who have made such valuable contributions to today’s debate? There were 11, alongside interventions, starting with the right hon. Member for Meriden (Dame Caroline Spelman), who talked about her involvement in the setting up of charities and the challenge she had in worshipping at the same time as filling out an envelope. She also talked about the demographic discrimination in relation to cheques and the need for them to be included in these proposals.

The hon. Member for Aberdeen North (Kirsty Blackman) welcomed the measures, but again raised the plurality of methods of giving and the challenges faced by smaller charities, which these proposals do not assist with. The hon. Member for Rochford and Southend East (James Duddridge) managed to get his wife, his mother-in-law and a shovel into his speech, which was an achievement, but importantly he also raised the issues of cheques, SMS messages and people’s ability to get their money into the charitable system through a plurality of methods of giving.

My hon. Friend the Member for Clwyd South (Susan Elan Jones) talked about the importance of supporting charities and the improvements that the Bill may bring and, again, raised the question of cheques as a way forward. The hon. Member for Taunton Deane (Rebecca Pow), who is not in the Chamber, referred to the bucket shaking that she does regularly and applauded those who go out collecting for various charities. She also welcomed the simplification introduced by these proposals.

The hon. Member for Foyle (Mark Durkan) also talked about the flexibility of methods of giving that are not in the Bill. He, too, pushed that issue. The hon. Member for Congleton (Fiona Bruce) also talked about the need for cheques and the ability of older people to participate by giving cheques. The hon. Member for Somerton and Frome (David Warburton), worshiping in his church, welcomed the simplification and the spontaneity in giving, as did the hon. Member for North East Hampshire (Mr Jayawardena), who again had a challenge: could the church get a contactless machine up the aisle at the same time as worshiping? That seems to have been a theme today. The hon. Member for Mid Dorset and North Poole (Michael Tomlinson) talked about the Great Santa fun run raising thousands of pounds and, touching everyone’s heart, the Waggy Tails Rescue dog re-homing charity.

We on the Labour Benches want to thank the charitable sector for all the remarkable work it does for all the communities we represent. Without its valuable role, many services in our communities would simply not exist, so the Opposition are broadly supportive of the content of the Bill. As such, I will keep my closing comments fairly brief. My hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) has already made reference to our concern that loosening the eligibility criteria could increase the risk of fraud. That is important. The fact that a charity would not need to be registered for two years raises the question of whether just about anyone could set up a charity and relatively easily receive £2,000 of taxpayers’ money. That is an important point, so does the Minister have any figures on the amount of fraud that has taken place in the gift aid small donations scheme thus far?

The question of the risk of fraud is extremely important, given the inadequacy of the regulation of charity taxation. We hear about Government funds being mismanaged in elements of the charity sector or about charities being set up merely for the purpose of tax avoidance.

[Kevin Foster]

Does the shadow Minister agree that the call should be to ensure that the appropriate due diligence must be undertaken in new charity registrations, in particular by the Charity Commission, before a charity registration number is issued? I take on board his point about potential fraud via this scheme, but of course any charity being registered can start collecting and we need the public to have that confidence.

[Peter Dowd]

I completely understand that. At the end of the day, the process has to be sufficiently robust to ensure that fraud does not exist.

In that regard, the Charity Commission has identified the estimated levels of abuse, mismanagement, fraud and money laundering in charities today, in a succession of reports entitled “Tackling abuse and mismanagement”. It has identified an increase in the incidence of fraud in relation to charities, and a range of cases in which the commission gave evidence in criminal prosecutions, including against trustees who stole £350,000 from a charity for the relief of the people of Afghanistan, which is shocking. The number of compliance cases brought by the commission almost quadrupled between 2012 and 2013, demonstrating both that the commission needs our support and that we ought not be complacent. In that light, when proposed legislative changes come before the House, it is incumbent on us all to be vigilant. I do not want to rain on the party, but we need to be vigilant.

The problem is not just straightforward crime. There is something worrying in our corporate and tax-avoidance cultures that see charities as a means of making money. In recent years, a prime example is the Cup Trust, about which the Public Accounts Committee produced a damning report in 2013, while there was a judgment in the High Court earlier this year about the same issue. The report summarised:

“Despite its declared charitable aims, it is clear that the Trust was set up as a tax avoidance scheme by people known to be in the business of tax avoidance.”

In the meantime, the Cup Trust has claimed gift aid of £46 million. Regrettably, such tax-avoidance schemes are not isolated. As Professor Alastair Hudson, an expert on these matters, put it:

“There is something about the ‘goodness’ associated with charities, which made people reluctant to investigate or to criticise them.”

It is worth noting that when Northern Rock collapsed in 2007, it came to light for the first time that the bank had created a corporate structure known as “Granite”. This included what has been explained by academic commentators as a discretionary trust involving a small charity in South Shields among its beneficiaries. It appears that the charity was named without its knowledge. Moreover, it appears that the only purpose of this structure was to be “tax-efficient”. The presence of the charity in the structure appears to have been unconnected to working “for the public benefit”. We cannot be complacent about the law on charities, while that sort of activity is considered to be an ordinary part of corporate life. While tax avoidance is legal, it is, as Lord Denning said, “not yet a virtue.”

Of the 164,000 charities in the UK, a large number still do not lodge accounts with the regulators. It is difficult to know whether they are moribund, carrying on work “for the public benefit”, or being used for other less charitable purposes, so to speak. That does charities no good at all—and we need to protect them. Even the highest-profile charities such as Kids Company can be sources of mismanagement and bad financial practice.

Notwithstanding the best intentions of these proposals —namely, the loosening of eligibility criteria—it is vital that sufficient safeguards are in place to prevent fraud when Government funding or tax breaks are provided, as in this case, to the charity sector. I think that sentiment would get cross-party support.

That said, and as I indicated earlier, we are broadly supportive of the measures contained in the Small Charitable Donations and Childcare Payments Bill and we will not oppose it on Second Reading. We will, however, seek to improve the Bill in Committee next week, and I hope that the Government will support us in that.

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Rob Wilson)]

I think you will agree, Mr Speaker, that this has been an entertaining and enlightening debate. Speaking as the Minister with responsibility for civil society, it is always encouraging to hear right hon. and hon. Members share examples of the excellent work they see being done by charities throughout the country.

I would like to thank those who spoke in the debate: my hon. Friends the Members for Bolton West (Chris Green), for North East Hampshire (Mr Jayawardena), for Somerton and Frome (David Warburton) and for Mid Dorset and North Poole (Michael Tomlinson); the hon. Member for Clwyd South (Susan Elan Jones); my hon. Friends the Members for Rochford and Southend East (James Duddridge) and for Congleton (Fiona Bruce); the hon. Member for Foyle (Mark Durkan); my right hon. Friend the Member for Meriden (Dame Caroline Spelman) and my hon. Friend the Member for Taunton Deane (Rebecca Pow). I am also grateful for the Front-Bench contributions. We can be extraordinarily proud of our strong and diverse charity sector. That is why building an environment in which a modern and resilient charity sector can thrive remains a priority for this Government.

The Government already provide significant support to our charity sector. They do so through generous tax reliefs and grants to support good causes, but also through contracts and payments for services. Indeed, the National Council for Voluntary Organisations reports that in 2013-14 the charity sector received £15 billion from Government bodies, with 81% coming from contracts and fees.

The Government have developed the world’s leading social investment market to support charities and social enterprises. We have established Big Society Capital, and are in the process of providing it with £600 million of start-up capital in partnership with the UK’s banks. We have set up the Access Foundation with more than £50 million to allow access to the social investment market, and we have introduced social investment tax relief, which is set to unlock nearly half a billion pounds’ worth of investment over the next five years.

As my hon. Friend the Financial Secretary said in her opening speech, the Government support charities and donors through a substantial package of tax reliefs, worth more than £5 billion last year. Almost £1.8 billion of that comes in the form of business rate relief on charities’ premises. A further £300 million is provided in VAT relief, and £280 million is received from relief on stamp duty land tax. In addition, donors are encouraged to give more to good causes through tax relief on gifts and bequests, and that is worth nearly £1.5 billion every year.

[Kevin Foster]

The Minister mentions the benefit to charities of what are effectively business rate exemptions. Has he had a chance to look into the possible impact on the figure he mentions of the revaluation that has just been announced, which will take effect on 1 April next year?

Tax Credits: Concentrix

Kevin Foster Excerpts

Wednesday 14th September 2016 Commons Chamber

[Jane Ellison]

To reiterate what I said earlier, I will ask HMRC to advise me on the nature of the contractual arrangements. Again, it might be better if I wrote to the hon. Gentleman on that.

[Kevin Foster (Torbay) (Con)]

As a constituency MP who has dealt with a number of cases, I am pleased to note the action the Government have taken. That said, as a member of the Public Accounts Committee I have also sat through numerous reports on the quality of service HMRC provides, which is at times hardly of gold standard. What reassurance does the Minister have that, with HMRC picking up some of this work, we will not see a drop-off in the standard of services elsewhere and in future arrangements?

[Jane Ellison]

I do not believe that that will be the case. HMRC has been dealing with cases at the same time as Concentrix throughout the period of the contract. I have been assured that the 150 additional staff deployed with immediate effect will be focused on this. I have no reason to believe that any other services will suffer. My hon. Friend’s point is well made and will be re-emphasised to HMRC.

Surplus Target and Corporation Tax

Kevin Foster Excerpts

Monday 4th July 2016 Commons Chamber

[Mr Osborne]

What I was setting out with Alistair Darling, my immediate predecessor, was the realism that will be required when we understand that the economy, impacted by the vote, will have an impact on the public finances, and then it will be up to the House of Commons to decide how we proceed. It was important that that information was in the public domain before people voted.

[Kevin Foster (Torbay) (Con)]

First, may I put on record my thanks to the Chancellor for the work he has done over the last week in stabilising the economy following the Brexit vote? Gooch & Housego in my constituency is a company that depends on exports. What message does the Chancellor have for such exporting businesses about Britain’s future role in the world, particularly in terms of trade?

[Mr Osborne]

We need to do two things. First, we need to determine our new trading relationship with our European partners; about half of our exports go to the European continent and, in my view, we should be pushing for the best possible terms of trade in goods and business services, including financial services. Secondly, we should be maximising our links with the rest of the world. We have a real opportunity with China. As my hon. Friend will know, I have been very involved in trying to strengthen the relationship with that big emerging economy in our world, but we should also look to our links with Japan, India, the United States and the Commonwealth, and this is a call to action that we need to redouble our efforts.

Oral Answers to Questions

Kevin Foster Excerpts

Thursday 9th June 2016 Commons Chamber

[Mr Speaker]

I am sure that the people of Devon and Dorset will soon realise how lucky they are.

[Kevin Foster (Torbay) (Con)]

5. What plans his Department has to promote the community benefits of rugby union.

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr David Evennett)]

Sports such as rugby union bring tremendous benefits to the individuals and communities who engage in them. Between 2013 and 2017, Sport England is investing £20 million to get more people playing rugby.

[Kevin Foster]

We certainly know how lucky we are in Devon.

There are 47 rugby union clubs across Devon, and they provide people of all ages and backgrounds access to the game and a chance to get more involved in their community. What further support can the Government give those clubs and Devon Rugby Football Union to enhance further their role of getting more people involved in the game and their community?

[Mr Evennett]

I take this opportunity to congratulate Devon RFU on the work that it has been doing to provide so many opportunities for people to get involved in the great game of rugby. Across Devon, Sport England has invested £319,632 to upgrade, improve and repair nine grassroots rugby clubs since 2010. As I have said—[Interruption.] The hon. Member for Garston and Halewood (Maria Eagle) should listen. We listened to her yesterday when she was waffling on about the BBC, so she should listen today to get some facts. We are focused on getting more people from all backgrounds involved in sport and physical activity.