Financial Statement

Lilian Greenwood Excerpts
Wednesday 23rd March 2022

(3 years, 10 months ago)

Commons Chamber
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Rishi Sunak Portrait Rishi Sunak
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That is exactly what we are doing. The increase in the personal tax threshold in July was brought in far quicker than these things normally are, but we wanted to do it as quickly as possible. This will put £330 in the pockets of 30 million people up and down the country.

Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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This year, the Chancellor is delivering the largest fall in living standards since Office for National Statistics records began in 1956-57. Will he tell us how many more people will fall into poverty as a result of his failure to ensure that increases in social security match inflation?

Rishi Sunak Portrait Rishi Sunak
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The hon. Lady is describing the impact of inflation on people’s incomes. Of course that will have an impact; we have been very clear and honest about that. That is not just happening here; it is happening everywhere across the world as we grapple with higher inflation, but the measures we are taking today will make a significant difference to support working families in weathering some of the challenges ahead. Again, for those who are most vulnerable, we started this journey in autumn with a tax cut to universal credit, and we are doubling the household support fund today to £1 billion.

Covid-19: Government Support for Business

Lilian Greenwood Excerpts
Thursday 16th December 2021

(4 years, 1 month ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

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John Glen Portrait John Glen
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I recognise that, which is why I have set out today the engagement that we are having to try to determine exactly what we need to do.

Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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For more than a week, hospitality businesses and workers in Nottingham have been contacting me desperately worried about falling custom at what should be their busiest time of year. I have also heard from hair and beauty salons in my constituency that are facing cancellations and wondering how on earth they will get by on a reduced income when they are already struggling to pay back the loans that they took out to survive lockdown. Why do the Government not seem to understand the urgency of the situation and what will the Minister now do to help?

John Glen Portrait John Glen
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What I will do is ensure that the hon. Lady’s point is passed to the Chancellor. I will also ensure that the engagement is as broad as possible across Treasury Ministers, so that the full impact of the evolving circumstances is reflected in our response.

Downing Street Christmas Parties Investigation

Lilian Greenwood Excerpts
Thursday 9th December 2021

(4 years, 1 month ago)

Commons Chamber
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Michael Ellis Portrait Michael Ellis
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My condolences to the hon. Gentleman’s constituent. The Prime Minister has said, as I have said from this Dispatch Box, that disciplinary action will be taken if appropriate. I hope that the hon. Gentleman’s constituent can be reassured by that. As to the course of action the police choose to take, if any, that is a matter entirely independent of Her Majesty’s Government; it will be up to the police as they are operationally independent. We have said that the Cabinet Secretary will involve the police if, during the course of his investigation, he uncovers any criminality.

Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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The Prime Minister has repeatedly told this House that all covid rules were followed in Downing Street. Will the Minister publish the covid risk assessments undertaken prior to any parties, social events or gatherings that took place on Government premises in November and December last year?

Michael Ellis Portrait Michael Ellis
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I have noted what the hon. Lady says. That will be a matter for the Cabinet Secretary, and he will be free to seek any documents he needs during the course of his investigation.

Working People’s Finances: Government Policy

Lilian Greenwood Excerpts
Tuesday 21st September 2021

(4 years, 4 months ago)

Commons Chamber
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Matt Western Portrait Matt Western
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I absolutely agree—it is such a key point. There are so many schemes that could be introduced, and there is some excellent practice across Europe; I think it is currently beyond the wit of the Government, but as chair of the all-party parliamentary group for council housing I am certainly keen that we should push for it.

On energy costs, I go back to the point about heavy manufacturing. I am passionate about our manufacturing sector—not just the automotive sector, which I have talked about often, but chemicals, aerospace and steel. We have heard the comments that my hon. Friend the Member for Aberavon (Stephen Kinnock) made about the impact on steel, but the impact will be felt throughout our manufacturing: steel goes into the food and drink sector as much as into automotive and elsewhere.

The reality is that the price varies for energy. For gas in the UK, I think that I am right in saying that there is a 40% premium against the average in Europe, which is making us uncompetitive in comparison and will have an impact on future investment and, ultimately, on jobs.

Food prices are another big driver of inflation. The price of food and drink in shops and supermarkets has risen by more than 1% in August, the highest growth since 2008. Food commodity prices have increased by 17% since the start of the year. The Food and Drink Federation says that the cost per household of food and drink shopping will increase by more than £160 per year because of Government policies—that is the federation speaking, not me.

Various hon. Members have mentioned the supply chain disruption, which will lead to higher prices. We have heard about the shortages of heavy goods vehicle drivers, but there are also shortages of refrigerants and carbon dioxide, and of course there is the additional complexity of delays at borders and ports.

I turn to travel. I asked the Minister about the price of petrol, but in July petrol prices hit their highest level in almost eight years. It now costs £74.26 to fill a 55-litre family car with petrol, a 17% increase—17% seems to be a repeating figure—since the start of the year, by the Government’s own data. Diesel, by comparison, has risen by just 14%.

Rail fares are not faring any better. The Government are planning fare rises of 4.8% next year, way ahead of inflation. The average commuter faces paying £3,300 for an annual season ticket, 50% more than in 2010. An annual season ticket from Leamington to London, incidentally, now costs £8,700, a significant amount of money.

As for housing, rents have risen at their fastest rate since 2008, at a time when we are seeing declining home ownership, and the vulnerability that confronts so many people as more and more are living in the private rental sector. Rents in the west midlands are now £1,192 higher than they were in 2011, and incomes have certainly not kept pace with that.

Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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My hon. Friend is making a powerful speech. I think those who are listening will appreciate that for some families the combination of rising prices, rising rents and rising costs of travel to work will lead to absolute desperation—and, of course, this does not just have an impact on individuals and families; it has a wider societal impact. If people are unable to pay their rent, if they are made homeless and if that affects their mental health, an enormous strain will be placed on our public services and on society more broadly. Measures such as the cut in universal credit are complete madness, because the longer-term costs for the Government will be even higher than the costs of maintaining the uplift.

Matt Western Portrait Matt Western
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My hon. Friend is spot on. Short-term thinking often costs much more in the long term, and impacts of that kind will have very long-term consequences on people. We all know about the impact on mental health and how that can then affect people’s home lives, social lives and family lives, but it can also affect their working lives, which can have an economic consequence too, as well as increasing costs in the national health service and elsewhere.

We need to build more social housing for rent. Just 21 social rent council homes have been built in the Warwick district since 2010.

Let me now turn to the unimaginable and, I think, inadmissible cut in universal credit. It just underlines how out of touch this Government are that they are cutting the £20 uplift. Reversing that decision would prevent families from experiencing an even sharper hit during this cost of living crisis. I think it shameful that the very workers who got us through the crisis are now in the firing line for a £1,000 cut in their income every year. I think about the carers, the shop workers and the delivery drivers—all the people who kept the wheels of the economy turning through such difficult times. Data from the Joseph Rowntree Foundation shows that in Warwick and Leamington, which I think many people would assume to be a prosperous area, 13% of working-age families—6,300—and 29% of working-age families with children will be affected by the cut. This really is a poverty policy.

We have heard a great many claims about levelling up, but the one area in which the Government seem to be succeeding is levelling up on taxes which are more regressive than ever. We may think back to the increase in VAT from 17.5% to 20%; now we are seeing a rise in national insurance and rises in council tax across our local authorities. The average band D council tax set by authorities in England in 2021-22 is just under £1,900, a 4.4% increase on the 2020-21 figure. These are real costs to people. As we have heard, the national insurance increase is the biggest tax rise for families—the most significant change—in 50 years. Graduates now face a marginal tax rate of nearly 50%: that, surely, is a tax on aspiration.

Oral Answers to Questions

Lilian Greenwood Excerpts
Tuesday 26th January 2021

(5 years ago)

Commons Chamber
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Kemi Badenoch Portrait The Exchequer Secretary to the Treasury (Kemi Badenoch)
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I thank my hon. Friend for his question. He is a doughty champion for his region and he should know that we remain focused on the commitment we made at Budget 2020 to have 750 roles across the economic campus by the end of the Parliament. The Treasury is still considering a range of location options for the new campus. We want to ensure that the chosen location supports our wider levelling up agenda, but we will certainly take his comments and representations into account.

Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab) [V]
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The Government claim that their central economic mission is to level up. Can the Chancellor assure me that his Government will deliver HS2 in full, including the whole of the eastern leg, because this will be the litmus test of their real commitment to levelling up?

Steve Barclay Portrait The Chief Secretary to the Treasury (Steve Barclay)
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The hon. Lady is right to draw attention to the commitment the Government have made to infrastructure, including in the forthcoming integration infrastructure plan, but the levelling up is not just about rail, as the Chancellor said; it is also about the £4 billion levelling up fund and, most importantly, about the review of the Green Book. As Lord O’Neill and others have commented, that ensures that a whole range of projects better address the levelling up alongside the significant investment in rail and other transport infrastructure.

Financial Reward for Government Workers and Key Workers

Lilian Greenwood Excerpts
Monday 14th December 2020

(5 years, 1 month ago)

Westminster Hall
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Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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It is a pleasure to serve under your chairmanship, Mr Stringer. I congratulate my hon. Friend the Member for Gower (Tonia Antoniazzi) on her powerful and eloquent opening speech. I am not sure that I will add anything unique to the debate, but some points bear repetition.

We owe a huge debt of gratitude to the people who have been delivering our public services during the coronavirus pandemic. Some of them are in public-facing roles that simply cannot be done from home, including social care workers, refuse collectors, firefighters and border control staff. They have been working hard, day in, day out. They have exposed themselves and their families to additional risks to help to keep us safe, secure and well.

Others who have been working just as hard are often invisible. They are among the unsung heroes of the crisis. I am thinking of the staff working at Her Majesty’s Revenue and Customs to administer the job retention scheme, or those in the Department for Work and Pensions coping with a huge influx of new universal credit claims. Their work has been just as essential in helping to protect jobs and livelihoods. They were often unprepared and under-resourced to deal with that new sudden demand, but they stepped up. Of course, there are many others. Their reward for that work is to be handed a real-terms pay cut. The Chancellor might try to use softer language, with talk of a pay pause rather than a freeze, but soft language does not pay the bills. Prices are set to rise by 1.4% next year, and many people will be even more shocked when they realise that their council tax bill will go up by 5%. Thousands of public sector workers will be worse off, including every single police officer, every single teacher and 90% of armed forces personnel based in England. As many hon. Members have said, for many of those workers, that is just the latest kick in the teeth, because public sector staff have already endured a decade of cuts in the value of their wages, with many seeing their buying power cut by almost a fifth between 2010 and 2020.

Government Ministers want to pit public sector workers against private sector workers, but it is all smoke and mirrors. Private sector wage growth has fallen behind this year primarily as a result of furlough, having previously run ahead. According to the Institute for Fiscal Studies, once we adjust for the different profile of public sector workers in terms of experience, education and other factors, there is no difference in hourly pay rates compared with the private sector. The truth is that such divisive language helps no one. We all lose as a result of the proposals. It is noticeable that not a single Back-Bench Conservative MP has dared to turn up and defend them.

In Nottingham, 23% of all employees work in the public sector, which is significantly higher than the average for the east midlands or Britain, although of course there are parts of the country where it is far higher still. When the pay of those workers is cut, they have less to spend in local shops and with local businesses. Freezing their pay harms the local economy and risks the jobs of the private sector workers employed in those shops and businesses. At a time when our local high streets are suffering real damage and small businesses do not know whether they will survive the pandemic, this pay policy delivers a further blow to confidence and risks further weakening a weak recovery.

The Minister should think again. We need action to save jobs, rebuild businesses and get the economy back on its feet. Instead of cutting real wages, the Government should be boosting them, particularly for the lowest paid. That is the right thing to do ethically and economically.

Graham Stringer Portrait Graham Stringer (in the Chair)
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Unusually, there have been no interventions and some Members have not turned up, so I will increase the time limit for Back-Bench speakers to five minutes.

Spending Review 2020 and OBR Forecast

Lilian Greenwood Excerpts
Wednesday 25th November 2020

(5 years, 2 months ago)

Commons Chamber
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Rishi Sunak Portrait Rishi Sunak
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My hon. Friend is, as ever, a passionate champion for the hospitality sector, and he is right to be so. It employs 2 million people, often lower paid, and it has been hit harder than almost anybody by this crisis, which is why, as he acknowledged, we have put in place unprecedented support, from VAT cuts, initiatives over the summer such as eat out to help out, business rates holidays and now cash grants when those businesses are either closed or in tier 2 areas facing restrictions to help get them through the winter. Those grants in general will equate to the rental payment of most of those businesses—we have that information and that is the single biggest fixed cost of hospitality businesses; and, of course, they can furlough their staff. I know that it is difficult, but, hopefully, those interventions will make a difference, because he is right that we want them to be able to bounce back strongly.

Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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The midlands engine has identified priorities for investment as transport, digital connectivity and energy. That is what we need to enable the midlands and the UK to recover from this pandemic and to build back bigger, better and greener, but, according to the Institute for Fiscal Studies, the east midlands has suffered the lowest level of transport spending per person since 2014-15. We have also been at the back of the queue for all capital spending for at least five years. If the Chancellor is serious about levelling up, can he guarantee that the east midlands will receive the highest allocation of any region when he hands out his new levelling-up fund?

Rishi Sunak Portrait Rishi Sunak
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The hon. Lady talked about a few different things, transport and digital connectivity being among the most important to her region. This spending review delivers on both those priorities, with record amounts of spending on road, rail, intra-city transportation, buses and cycling, and, on digital connectivity, with our plans to bring 85% of the country to gigabit-capable broadband by 2025, we are also delivering on the green plan that I outlined. I very much look forward to hearing from her and her local areas once we launch the levelling-up fund, because I am sure there will be projects we can make a difference to.

Covid-19: Disparate Impact

Lilian Greenwood Excerpts
Thursday 22nd October 2020

(5 years, 3 months ago)

Commons Chamber
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Kemi Badenoch Portrait Kemi Badenoch
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My hon. Friend is right. Household composition was definitely one of the things that we looked at; it was identified as a factor, and we are looking further into its significance. In the interim, the Government have provided a range of guidance to support those who are living in multigenerational housing, alongside detailed advice to employers and key workers on how they can protect themselves. We will continue to ensure that our guidance is clear, enables people to protect themselves adequately and includes guidance for those who are shielding. To support this, we have given councils an additional £1.6 billion of the covid budget fund to help them to protect and support people during this national emergency. As I always say, the Government will do everything that we can, but we cannot do everything, which why we need people to know how they can protect themselves.

Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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Since the start of the covid pandemic, the all-party parliamentary group on deafness has repeatedly called on Ministers to ensure that all communications are accessible and inclusive, but on Monday we saw reports that deaf children are being deprived of their access to education. I note that the Minister has promised future updates, but is the Race Disparity Unit working across Government to ensure that all communications are accessible to deaf and blind people? What is she doing to ensure that black, Asian and minority ethnic disabled people are not doubly disadvantaged by the measures needed to control the virus?

Kemi Badenoch Portrait Kemi Badenoch
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The hon. Lady is absolutely right. This is an issue that we have looked at; for instance, the Government have looked at sourcing personal protective equipment for people who need to lip read, so that they can continue to communicate. She is also right to point out that some people are affected in multiple ways, but looking at each issue separately does not mean that one aspect will be forgotten. They will be helped by all the separate work that is being done across the board to look at vulnerability.

The Economy

Lilian Greenwood Excerpts
Wednesday 8th July 2020

(5 years, 6 months ago)

Commons Chamber
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Steve Barclay Portrait Steve Barclay
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The hon. Lady highlights an extremely important sector, not least in terms of its profile. Many women work in that sector, and often those incomes are extremely important to their households as well. At Treasury oral questions yesterday the Chancellor expressed our desire to get those sectors up and running as quickly as possible. The hon. Lady will know that we have already taken significant steps to support them, not least through the £10,000 and £25,000 grants that were offered, which included many within the sectors that she highlights.

Today the Government made it clear that we are ready to take further action as necessary, just as we have done throughout this crisis. That is why the self-employed income support scheme will open for a second and final round of grants between 17 August and 19 October. Likewise, the job-retention scheme has been extended until the end of October, with new, more flexible terms to support people back to work. But with the best will in the world, no Government can reasonably save every single job in these circumstances; nor can the furlough scheme, successful as it has been, last indefinitely.

Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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Of course the Minister is right that the furlough scheme cannot continue forever. However—I listened to his response to the hon. Member for Bath (Wera Hobhouse) about the beauty sector—surely we need different approaches to the sectors that have been able to reopen and those that are currently still closed. Surely the sectors that are still unable to open, and potentially may not be able to open for quite some time, such as theatres, music venues and beauty therapists—a range of sectors—need something more flexible. Why has he not considered something more flexible with regard to the job-retention scheme?

Steve Barclay Portrait Steve Barclay
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We have been flexible. The hon. Lady mentioned theatres: we announced a package of £1.57 billion-worth of support as part of the flexibility of which she speaks. People also seem to ignore the fact that we are only halfway through the furlough scheme. It runs until October—we are four months in. The intention, as part of this second phase, is to reopen the economy, including these businesses. As the Chancellor set out, we do not think it is good for people to be away from the labour market for an extended period because skills atrophy, and that is not in their interests.

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Wes Streeting Portrait Wes Streeting
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I strongly agree, and it will not surprise the hon. Gentleman that I will come on to make exactly that point.

For some people in secure jobs and on decent pay, the lockdown restrictions have been an opportunity to clear the credit card or build up savings, but for so many others—particularly the young and the low-paid—the labour market shock has been severe, and so has the impact on their pockets. Behind every one of these statistics are people—families and communities who have played their part in getting our country through this crisis, keeping our supermarkets stocked and essential services running; caring for us when we need it, from the brilliant staff who work in our NHS to the dedicated, often disgracefully low-paid and, this week, it seems, maligned staff who work in our care homes; and, with some notable high-profile exceptions, doing everything that was asked of them, staying home to save lives, looking out for their neighbours and volunteering in their communities. It is a truly national response, and it is not over yet. Coronavirus is the biggest crisis of most of our lifetimes. A resurgence of the virus remains the biggest threat to lives and livelihoods at the present time. And the health of our economy cannot be separated from the health of our country. That is why the Government’s failure to put in place an effective track and trace system is so concerning. The Chancellor did not mention it this afternoon, but he knows as well as we do that, without it, the risk to public health and to our economy are that much greater.

Lilian Greenwood Portrait Lilian Greenwood
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Does my hon. Friend share my concern that while the measures to protect and promote the hospitality sector were very welcome, some people might choose not to go out to restaurants and cafés for reasons that are less about being able to bear the cost of buying meals out and more about their concern as to whether they will be putting themselves and their families at risk by doing so?

Wes Streeting Portrait Wes Streeting
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My hon. Friend is absolutely right, because, as events in Leicester have shown, the virus has not gone away. Local lockdowns, or, God forbid, another national lockdown in the event of a second peak, would deliver a knockout blow to so many businesses struggling to get back on their feet, and as my hon. Friend has just alluded to, those businesses will continue to struggle unless the public are given the confidence they need to go out and start spending money again.

Since the start of this crisis, the Government have been too slow: too slow to take the threat of covid-19 seriously; too slow to lockdown; and too slow to ramp up testing. Our criticism of the Government’s approach to track and trace is not unreasonable; this is not mission impossible. Today, the German embassy in the UK is tweeting to invite British citizens to download its Corona-Warn-App before visiting Germany, and British people are replying to the German embassy here in London asking if they can use it here in the UK. We are not even demanding the world-beating track and trace system the Government promised; we just want a system that works.

In a spirit of national unity and common purpose, we sought to work with the Government wherever possible. We have helped expedite emergency legislation through the House, and we have supported many of the measures taken to respond to the health emergency and to the economic crisis. Where Government have fallen short, we have suggested alternative approaches, and to be fair to the Government they have been prepared to listen. They listened when they introduced the job retention scheme, which we had called for and the TUC helped design, and later when the Chancellor came back with support for the self-employed that has been a lifeline to so many.

In the same spirit, we called on the Chancellor to take immediate action to tackle youth unemployment, and we pointed to the future jobs fund introduced by the last Labour Government as a model. Today’s kick-start announcement is exactly that, and we welcome it. In fact, the greatest compliment I can pay to the Chancellor from this Dispatch Box is that in announcing the kick-start scheme earlier he sounded like Gordon Brown and Alistair Darling. Maligned by the Conservatives at the time, history has been kinder to them than the Conservative Opposition of the day were; their leadership is rightly recognised by the Chancellor today, and that is to his credit.

But I do want to impress on the Chief Secretary the following point before he returns to the Treasury. The success of Labour’s future jobs fund was in no small part thanks to the hard work of the third sector and local authorities in delivering it, all of which are now in a far worse position than they were when the financial crisis hit. They have already stepped up in response to this crisis. Charities have been on the frontline of responding to covid-19, at the same time as the virus has plunged so many of them into financial crises of their own. They are at the heart of community resilience, public service delivery and tackling some of the biggest challenges of our time; we need them to come through this crisis and out the other side, so that they can help our country to do the same.

Councils were asked to do whatever it takes, whatever the cost, and they did. They have delivered food parcels to those shielding and made contact with those isolated and at risk. Their workers have kept essential services running at personal risk to themselves, and they have delivered Government grants to the businesses that need them with remarkable speed and efficiency. We have also seen endless examples of their creativity and ingenuity throughout their crisis response. The Mayor of London has worked closely with London boroughs to get rough sleepers off the streets and into safe harbour, and they are working together now to end rough sleeping for good. My own local council procured step-down accommodation for covid patients leaving hospital in order to delay the immediate discharge of those patients into care home settings to help control the spread of the virus. The Mayor of Greater Manchester, Andy Burnham, provided a loan to a local business to help it scale-up PPE production during the national shortage. While the Government dithered and delayed over supports for arts and culture, the Mayor of Liverpool City Region, Steve Rotheram, was already delivering it through his music fund and film and TV development fund. Councils such as Staffordshire County Council and Brighton and Hove City council have provided additional support to community groups and third-sector organisations, recognising the important role that they are playing in the crisis response.

Today, those local authorities are in far worse shape after a decade of cuts from Conservative Government and the double whammy of rising costs and lost revenues as a result of this crisis. The Secretary of State for Housing, Communities and Local Government promised to reimburse them, but so far he has failed to deliver and, after a decade of Tory cuts, they cannot afford to pay for the opportunity to sit next to him at the next Conservative fundraiser in the hope of a favourable decision coming out of the Government.

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Wes Streeting Portrait Wes Streeting
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It seems to me that people who have been excluded require exactly the same sort of assistance as people who have been included, which is direct support to protect their incomes. We would be very happy to sit down with the Treasury to discuss how to bring that about.

Turning to climate change, the Chancellor promised a green recovery with concern for the environment at its heart. What we actually got today was a scaled-back ambition that fell well short of what the Committee on Climate Change and climate change justice campaigners were looking for. The Conservative manifesto promised £9 billion for energy efficiency. Today the Chancellor announced just £2 billion, which is about a fifth of what they promised people before the election. If the crisis has taught us anything, it is that there is such a thing as too late. It is this decade to 2030 where action will really count if we are to prevent catastrophic climate breakdown —not the next 30 years to 2050, but the next 10 years to 2030—so where was the green new deal? A green industrial strategy will get our country back on track to meet its climate obligations in the longer term, but it can also be the shot in the arm our country needs in the shorter term, creating new jobs and delivering improvements to our quality of life.

Lilian Greenwood Portrait Lilian Greenwood
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I thank my hon. Friend for giving way. He has been very generous. We should have a three-point test for the Government’s infrastructure investment: does it involve local firms and deliver better local jobs? Does it provide opportunities to upskill local people? Will it reduce carbon emissions and ensure that this is a green recovery that gets us back on track to zero emissions?

Wes Streeting Portrait Wes Streeting
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I know you are watching the clock, Madam Deputy Speaker, but the good thing about that intervention is that I no longer have to repeat those points in my speech. I agree entirely.

Finance Bill

Lilian Greenwood Excerpts
2nd reading & 2nd reading: House of Commons & Programme motion & Programme motion: House of Commons & Ways and Means resolution
Monday 27th April 2020

(5 years, 9 months ago)

Commons Chamber
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Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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Next week is the 10th anniversary of my election to this House. There have been some memorable moments in that time, but none as discombobulating as making a speech sitting in my own kitchen.

However, if the surroundings are very unusual, some of the concerns we are debating today are not. For too long, the UK economy has not been working for many of my constituents, particularly the lowest paid. While they are working hard but struggling to make ends meet, there are others who simply have not played by the rules, whether they are multinational tech giants avoiding billions of pounds of tax or wealthy individuals and companies failing to pay their fair share.

In recent weeks, we have seen more clearly than ever how much we rely on our key workers, whether the staff in our NHS, careworkers, teachers, bus drivers, shopworkers and so many more. They deserve our thanks, of course, but they also deserve a new social contract: a recognition that the economy has to change so that they are fairly rewarded for the work that they do and that our public services receive the investment they need. For too long, real wages have been depressed and services decimated in the name of austerity, while there have been tax cuts for people and organisations that could afford to pay more.

Some of the measures in the Bill represent a step in the right direction, but they do not go far or fast enough to match the scale of the challenge. No one could have anticipated the immense shock to our economy from the measures needed to fight the coronavirus, and it places a great responsibility on the Government. As my hon. Friend the shadow Chancellor has said, it is absolutely critical that the Government now do all they can to minimise the depth and length of the economic impact.

The measures that the Government have introduced to protect businesses and individuals are welcome, but, as all Members must know, the schemes announced leave gaps—as things stand, there is a real risk that some workers and businesses will miss out on the support they need. This will lead to unnecessary damage to the economy and hardship to individuals. I hope the Minister can give us some reassurance this evening that he is listening and that he will act swiftly to close those gaps—to keep people in work, to keep businesses afloat and to keep families out of poverty.

I do not have time to speak about all the issues of concern, but it is clear that the business interruption loan scheme is not getting help to those who need it. The East Midlands chamber of commerce has told local MPs that businesses describe accessing the scheme as

“a complex and lengthy process with no consistent approach between lenders”.

Certainly, the number of loans agreed does not reflect the level of need. The chamber has called on the Government and lenders to work together to address these issues and improve the way the scheme works; I can only echo its call. I have heard from very many self-employed constituents who cannot access the Government’s support scheme, perhaps because they have a new start-up or because they run a limited company and take their income through dividends. Will the Minister address their concerns this evening?

Our social security system needs urgent change. My hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) has made five very straightforward proposals to the Government, and I hope they will adopt those to prevent more individuals and families from falling into poverty.

I would particularly like to highlight one gap that the Government must address in their support for small businesses. I know that local councils around the country have worked incredibly hard to distribute the small business grants as quickly as possible. I pay tribute to the staff at Nottingham City Council, who have ensured that over £33 million of grant funding was paid out by last Friday, processing every application they had received.

However, there is a problem. Many small businesses rent space in a multi-occupancy building—an office, a shopping centre or a small business incubator—and they pay their landlord a fee that includes rent and rates. The landlord does not qualify for small business rate relief, which means that neither the landlord nor the small business tenants can access the £10,000 small business grant. Both I and the council have written to the Chancellor on this point, and I hope the Minister can tell me that he intends to address this anomaly, which is preventing dozens, if not hundreds, of Nottingham small businesses from receiving much-needed support.

These are unprecedented times, and it is more essential than ever that we have an economic system in which those with the broadest shoulders bear the heaviest burden. I hope the Government recognise that we need a new approach to tax and spending decisions that learns from this crisis and produces a better and fairer system for the future.