Oral Answers to Questions

Lord Bellingham Excerpts

Tuesday 18th April 2017 Commons Chamber

[Mr Philip Hammond]

We are very keen on employees having an opportunity to take a stake in the businesses for which they work. We will look carefully at any proposals that would tend to enhance productivity by incentivising and encouraging employees.

[Sir Henry Bellingham (North West Norfolk) (Con)]

T5. Given the large proposed increase in probate fees, and bearing in mind that deceased people’s bank accounts are frozen, will the Chancellor or the Chief Secretary look at allowing the fees to be paid after probate has been granted and the estate has been wound up?

[Jane Ellison]

In most cases, the Ministry of Justice expects that banks will be able to release enough cash from the estate to pay the probate fee, and we know from HMRC that the average estate is 25% cash. The MOJ is working with the British Bankers Association and others to put arrangements in place.

Oral Answers to Questions

Lord Bellingham Excerpts

Tuesday 29th November 2016 Commons Chamber

[Mr Hammond]

First, if the hon. Gentleman that if he looks at real household disposable incomes, he will see that the picture is rather brighter, and they present a much more real picture of what people in the economy are experiencing. He is right to say that real wages are a reflection of productivity performance, and the only way sustainably to raise real wages is to raise the productivity performance of this economy. So rather than whinging about whether something was done this year, last year or six years ago, and perhaps with a careful eye on the performance of the previous Labour Government in this area, he might care to welcome the announcement made last week as an appropriate initiative to try to raise the UK’s productivity performance, and raise real wages and living standards over the long term.

[Sir Henry Bellingham (North West Norfolk) (Con)]

6. What steps he is taking to encourage business investment in (a) the UK and (b) East Anglia.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

The Government are taking significant steps to encourage business investment in East Anglia and in all regions of the UK by cutting corporation tax to the lowest rate in the G20, delivering a £6.7 billion business rates package and allocating the £23 billion of public investment through the national productivity investment fund to ensure increasing and improved productivity. The autumn statement also announced £27 million for the Oxford to Cambridge expressway road link, as well as funding for the east-west rail link, and local enterprise partnerships in the east of England will also receive up to £151 million of local growth funding.

[Sir Henry Bellingham]

I welcome the Chancellor’s reply and the announcement of investment in the Oxford to Cambridge corridor and the transformational effect that that could have. Will he also ensure that other schemes to the east of Cambridge, such as the vital Ely North rail junction and improvements to the A47, also go ahead on time? He will be aware that they are crucial to the future economy of west Norfolk and other parts of Norfolk.

[Mr Hammond]

I will certainly pass on my hon. Friend’s comments about that particular rail scheme to my right hon. Friend the Transport Secretary. My hon. Friend will know that we have a large programme of rail infrastructure in place and that the additional funding for the east-west rail link that was announced last week was outside that core rail programme. I hope that he will agree that the Oxford to Cambridge corridor represents a real growth opportunity for the south and the east of England to exploit Britain’s two best known universities and their world-class research reputations to enhance the productive capacity of our economy.

House of Lords Reform and Size of the House of Commons

Lord Bellingham Excerpts

Wednesday 19th October 2016 Commons Chamber

[Pete Wishart]

Again, that is probably average estimated figures.

There we have it. Those are the aristocratic Members of the House of Lords. Just to make it even more surreal —I think that somebody has mentioned this already—26 places are reserved for bishops in their cassocks. They are not just any ordinary bishops in their cassocks; they have to be Church of England bishops in their cassocks. Again, this is the only legislature in the world that has a place reserved for clerics other than the Islamic Republic of Iran.

The coup de grâce, the ultimate horror of the membership of the House of Lords, is not the aristocrats or the bishops. It is the fact that we still have 104 Liberal Democrat peers. Roundly rejected by the electorate, the Liberal Democrats are kept alive in that crypt on a political life support system. People of Britain, welcome to your legislators! We have aristocrats, bishops and unelected Liberal Democrats. Is that not a great contribution?

[Sir Henry Bellingham (North West Norfolk) (Con)]

If the hon. Gentleman is serious about reducing the size of the House of Lords, as my hon. Friend the Member for Broxbourne (Mr Walker) mentioned a moment ago, has he thought of a system whereby we have indirect elections based on the number of votes cast in the general election, with each party having an electoral college, with perhaps a ceiling of 500 peers, as an interim measure? That would suit the hon. Gentleman’s party and it would remove the outrage of 104 Lib Dem peers in the House of Lords.

[Pete Wishart]

The hon. Gentleman makes a reasonable suggestion, but I am not going to suggest how we conclusively deal with the issue. All I am saying to the House today is that we must deal with it. We cannot continue to increase the numbers in the House of Lords while decreasing the numbers in this place. I would respect any suggestion that came forward, as long as it deals seriously with that.

While describing the other place and all its undemocratic horrors, we still have the audacity to lecture the developing world about the quality of its democracies. We have the gall to tick developing countries off about corruption, patronage and cronyism when we have a Chamber down the corridor that is appointed by a Prime Minister. How dare we suggest that to the developing world when we have such an absurd, chaotic system?

Because the House of Lords is a stranger to democracy, because it is in the hands of a small elite and because it is an appointed, created Parliament, there will always be a temptation to delve into the outer edges of corruptibility. The only qualifying characteristic and feature that some of the appointees seem to have is the ability to give large amounts of money to one of the main UK parties. This was tested to the limit by my hon. Friend the Member for Na h-Eileanan an Iar (Mr MacNeil) when he raised the question of cash for honours, one of the biggest political scandals of the past decades, where we saw a sitting Prime Minister being questioned by the police and some of his key members of staff and fundraisers actually elected. That is what we have done. We have created a Chamber that is immensely corruptible, and we should take that on board.

--- Later in debate ---

[Michael Ellis]

We have a process whereby we accept that the size of the House of Lords needs to be looked at, but there are priorities, and that is not a priority in this Parliament. Attempts were made in the last Parliament. This Parliament has pressing business. Although the size of the House of Lords is recognised as large, reform needs to be dealt with in due course, and preferably by consensus.

[Sir Henry Bellingham (North West Norfolk) (Con)]

Before my hon. Friend moves on, will he give way on that point?

[Michael Ellis]

I need to make some progress, if I may. Time is moving on, as Mr Speaker said.

The coalition Government also introduced some small-scale reform under the Lords Spiritual (Women) Act 2015— the hon. Member for Cardiff South and Penarth (Stephen Doughty) referred to bishops—which fast-tracks female bishops into the House of Lords by prioritising them in filling vacancies for the next 10 years. The reality is that there have been reforms. The first female bishop was introduced about a year ago in October 2015.

I should point out that the House of Lords has cut its operating costs by 14% in real terms since 2010. Its membership has changed, too. More than 150 peers have left the Lords since 2010, with more than 50 retiring since that facility was introduced two years ago. Indeed, there are 400 fewer Members of the House of Lords now than in 1998. The House of Lords is not as large as it was but is substantially smaller than in 1998.

It is right that the House of Lords continues to look at how it can work more effectively. Where further possible steps can command consensus, Her Majesty’s Government would welcome working with peers to take reasonable measures forward in this Parliament. If that is possible in consensus with peers, we would welcome doing so.

At the same time, it is vital that we continue to reform parliamentary boundaries. The Conservative manifesto commitment was to

“address the unfairness of the current Parliamentary boundaries, reduce the number of MPs to 600 to cut the cost of politics and make votes of more equal value.”

It is crucial that votes are of more equal value. Without the implementation of the boundary reforms, MPs will continue to represent constituencies that were drawn up on data that will be up to 20 years old at the 2020 general election, disregarding significant changes in the population. The principle of equal-sized constituencies, endorsed by the Committee on Standards in Public Life, is one that I would have thought Members on both sides of the House accepted. It is crucial to have votes of equal value across the United Kingdom.

Oral Answers to Questions

Lord Bellingham Excerpts

Tuesday 19th July 2016 Commons Chamber

[Jane Ellison]

I understand that there may be some logistical barriers to acquiring the papers—[Interruption] —with the journalists, in fact. I will write to the hon. Lady with more detail, but I do not believe there is any fault on the part of Her Majesty’s Treasury.

[Sir Henry Bellingham (North West Norfolk) (Con)]

15. Does the Minister agree that one strand of activity in the campaign is to continue to reduce corporation tax? Does she agree that we should have an aspiration to have the lowest corporation tax of any country in Europe?

[Jane Ellison]

Obviously, the effective rate is what really matters. We have set out a sensible and good ambition for 2020, but internationally what matters is what people pay. I return to the point that the UK has led the world. More and more countries have signed up to looking at how we ensure that multinational corporations pay what they should.

Oral Answers to Questions

Lord Bellingham Excerpts

Tuesday 7th June 2016 Commons Chamber

[Harriett Baldwin]

My right hon. Friend the Chancellor mentioned earlier the important work that UKTI is doing in not only promoting the Exporting is GREAT brand around the world, but, now—across the whole Government—encouraging all our embassies around the world to focus their resources on increasing the potential opportunities for our world-class exporters.

[Sir Henry Bellingham (North West Norfolk) (Con)]

22. Is the Minister aware that more than 25% of small businesses in France and Germany export, whereas the figure in the United Kingdom is about 20%? Does she agree that not just UKTI, but chambers of trade and business organisations such as the Federation of Small Businesses, can play a role in encouraging more small firms, in particular, to export?

Budget Resolutions and Economic Situation

Lord Bellingham Excerpts

Monday 21st March 2016 Commons Chamber

[Sir Henry Bellingham (North West Norfolk) (Con)]

It is a pleasure to be called early in the debate and to follow the two Front-Bench speeches—particularly the quite superb opening speech by the Secretary of State. I pay tribute to him and his team of Ministers, who serve us really well.

This was a Budget for small businesses and enterprise as much as anything else. I welcome the doubling of small business rate relief and the increase in the maximum threshold for relief from £12,000 to £15,000. I really welcome the reduction in corporation tax, the capital gains tax changes, and particularly the 10% rate on long-term investments in unlisted companies, which will do a great deal for start-ups and business angels. I also welcome the stamp duty changes on commercial properties and the abolition of national insurance for the self-employed.

The other day, I worked out that this is the 40th Budget, including emergency Budgets, that I have been privileged to listen to, but this is without doubt one of the best Budgets, if not the best Budget, for small businesses, enterprise and wealth creation in our communities.

The Opposition have accused the Chancellor of favouring the rich, but let us hang on a moment. In the last financial year, the richest 1% paid 28% of all income tax. That is really quite staggering, and it completely undermines the Opposition’s argument.

[Toby Perkins]

Like other Conservative Members, the hon. Gentleman seems to be celebrating the fact that, under a Government that have seen the rich get much, much richer and the poor get much, much poorer, the rich are actually starting to pay more tax. Would it not be better not only if the top 20% paid more tax, but if the bottom 20% actually got wealthier rather than poorer?

[Sir Henry Bellingham]

I am grateful to the hon. Gentleman for that intervention; he and I get on very well together, and I respect his views. However, I would refer him to the comments by Paul Johnson, the head of the Institute for Fiscal Studies, who pointed out that, over the past few Budgets, higher earners have

“seen huge reductions in pensions tax relief”,

as well as a host of other measures, such as a “clampdown on buy-to-let”, and that they have been “squeezed in other ways”. He points out that this Budget’s impact on income distribution has been “incredibly modest”. That underscores the point that this is a fair Budget and, indeed, one for all our constituents and communities.

In the few minutes I have left, I want to touch on the devolution proposals. I support devolution. The flexibility that comes with making Government money available at the local level and responsive to local aspirations makes sense. I will certainly look carefully at the Secretary of State’s proposals for the combined authority in East Anglia. However, I would ask the Minister who winds up to confirm whether the £30 million a year is new money and whether the £170 million for housing will be spread over 30 years or treated on an annual basis. Could we have a look at that?

I certainly support the idea of devolution, but I am sceptical about the idea of elected mayors, for the following reasons. Back in 2000 and 2001, I was one of those politicians who were vehemently opposed to the now Lord Prescott’s proposals for regional assemblies, on the grounds of extreme cost and empire building. I also took the view that they would probably lead to the demise of the shire counties. I therefore regard the plan to bring in elected mayors with extreme suspicion. We are going to have to look at the cost very carefully. I remember when we discussed the plans for police and crime commissioners four years ago, and the view was that they would cost very little. It was said that the chairman of the authority—who is now called the police and crime commissioner—would sit in the police headquarters at no extra cost, but our PCC now costs £1.37 million and has a large number of staff in a separate building. He has built a mini-empire. The cost of the 41 PCCs across the country comes to £52 million.

[Barbara Keeley]

Does the hon. Gentleman agree with the Chancellor, who, as part of devolution, has forced an elected mayor on Greater Manchester? Does he think we should have devolution without forcing elected mayors on areas that do not want them and never voted for them?

[Sir Henry Bellingham]

This discussion is going to have to continue, because the most important thing is to have the support of the local authority.

I am worried about empire building. The new mayor is not going to operate out of a garden shed, although if one of us is elected in East Anglia perhaps we will do so. He or she is going to want to build a large empire and have a large number of staff, including directors of this and that division and department. Before too long, there will be a lot of pressure to have an elected assembly, and the heads of highways, infrastructure and housing will then become elected. Before we know where we are, we could well have an elected assembly.

I am glad that the Secretary of State has shown the courtesy to stay for my speech, because he has obviously been here a long time. People in Birmingham, Manchester, Newcastle and London feel an affinity with and an attachment to their city, so they are more likely to support the idea of having a mayor. I feel absolutely no affinity whatsoever with East Anglia, but I do feel an affinity with Norfolk. Does East Anglia include the three counties of Norfolk, Suffolk and Cambridgeshire that will be in the combined authority? Does it include Essex as well? No, it does not. What about Bedfordshire and Lincolnshire, just north of my county boundary?

I think that a mayoral election would face the problem of a pitiful turnout of perhaps 12% or 15%, so there would be no mandate. I am also worried that the institutions of Norfolk county could be undermined: this could be the death knell of Norfolk County Council, Suffolk County Council and Cambridgeshire County Council.

I also think this could lead to conflict with MPs. If I open a factory or campaign on a big issue and the elected mayor comes along and says, “Hang on, I also have a mandate of all of 12%,” and starts ordering us around, that is not good for the constitutional relationship between MPs and their voters. I am bruised by my experience of campaigning against the incinerator proposed by Norfolk County Council, when the local enterprise partnership suddenly waded in behind the county council.

I ask my right hon. Friend: can we have devolution, but can we also look very carefully at the idea of an elected mayor? Let us have devolution first, perhaps with a Minister for East Anglia. Perhaps that could be his colleague, the Minister for Housing and Planning, my hon. Friend the Member for Great Yarmouth (Brandon Lewis). Let us then move very cautiously before we turn to the election of a mayor. If I do not have an assurance from my right hon. Friend, it will wreck what is an absolutely outstanding Budget.