Maggie Throup debates involving HM Treasury during the 2019 Parliament

Budget Resolutions

Maggie Throup Excerpts
Tuesday 12th March 2024

(2 weeks, 2 days ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Maggie Throup Portrait Maggie Throup (Erewash) (Con)
- Hansard - -

We have heard it said many times in this Chamber that the first duty of any Government is to protect and safeguard the lives of their citizens. That premise is almost exclusively quoted during debates relating to the defence of the realm, yet it can just as easily be applied to our discussions about investment in targeted public health measures. If a person is only as productive as their health permits, it must follow that the productivity of UK plc is determined by the state of the nation’s health. In a country where nearly 26% of the entire adult population is classed as obese, with around 6.4 million people still smoking, and more than 100 million work days in the private sector alone lost to sickness absences each year, we can no longer afford to ignore the threat that preventable diseases such as cancer and diabetes pose to the UK economy and the impact that they undoubtedly have on national productivity.

I welcome the headline measures in the Budget aimed at boosting productivity, including the changes that my right hon. Friend the Chancellor made to child benefit that will see more than 170,000 families gain around £1,260 in child support. With the further 2% reduction in national insurance, the average person in work will now be better off by more than £900. I am immensely proud to be a member of a party that is serious in its ambition for the UK to become smokefree within a generation. That is clearly demonstrated by measures to increase tax on tobacco products, with the result that on average the price of a packet of cigarettes has now topped £16.

The Chancellor is also set to introduce a new duty on vaping products to discourage more adults from becoming hooked on harmful nicotine products. Together with other measures announced by the Government, that will end the scenes that we currently see outside school gates up and down our country, in which children, some as young as nine years old, are being drawn to vaping by the rainbow range of colours and flavours targeted specifically at them. Vaping products should only ever be used as an aid to stop smoking, not as a fashion accessory or as confectionery.

We could, however, have gone further in tackling preventable diseases—something that I and many other survivors of skin cancer across the House, including the hon. Member for East Dunbartonshire (Amy Callaghan), have been lobbying for. Cancer Research UK estimates that almost 90% of skin cancers are preventable by using sunscreen with a factor of 30 and above. Research commissioned by Tesco showed that 57% of UK adults think that high-factor sunscreen is too expensive and they cannot afford to buy it. VAT revenue on sunscreen is in the region of £335 million, yet skin cancers are anticipated to cost the NHS alone £465 million every year. When we factor in the additional cost to business associated with days off and lost productivity, the Exchequer could realise a huge net benefit.

Businesses in my constituency have highlighted Erewash’s roads, which come under ever increasing pressure from the sheer volume of traffic trying to access the M1, as a major barrier to raising productivity. I am leading the campaign to secure and integrate an additional motorway junction between junctions 25 and 26. That would not only help to ease congestion on critical routes through Ilkeston, Stanton by Dale, Sandiacre, Risley and Long Eaton, but would greatly improve access for HGVs transporting freight to and from the New Stanton Park development. That type of major infrastructure project can be realised only with financial backing from the Treasury, so I urge the Chancellor seriously to consider that proposal when he returns to the House later in the year for his autumn statement.

I thank the Chancellor for including Erewash in the latest round of investment to level up the midlands and the north. Erewash is already incredibly lucky to play host to a number of cultural events each year, including the Ilkeston heritage and classic vehicle show, Long Eaton carnival, and the charter fair. In addition, cultural hubs such as the Duchess theatre and Erewash museum, and local landmarks such as the iconic Bennerley viaduct, are responsible for bringing thousands of visitors to Erewash, and providing a welcome boost to the local economy. Having secured that new £5 million investment, we must now use this exciting opportunity to build on and expand existing cultural facilities, invest in new projects to bring our communities together, and preserve more of our cultural heritage for future generations. Guidance issued by the Government to local authorities in relation to that investment states that they must consult their Member of Parliament about how the money can be best used. I believe that it is time for our role in the consultation process, and for those types of schemes to be put on a more permanent, statutory footing.

Finally, although a lady should never reveal her age, I must nevertheless declare an interest as someone of pensionable age. Many will remember Labour’s pension raid, which is estimated to have cost investors around £230 billion while at the same time increasing the state pension by a mere 75p. As former Chancellor George Osborne said:

“It will be up to us to rebuild a pension system that has been comprehensively, single-handedly destroyed by Gordon Brown”.

And so we have. The Chancellor’s commitment to maintain the triple lock means that the state pension will be uprated by 8.5% from April, building on the 10.1% uprating for the current year. Indeed the state pension has risen by 31% since 2019.

To conclude, this sensible, balanced Budget is sticking to the plan that targets productivity, supports those who have worked their entire lives and provides further investment in communities such as Erewash. I look forward to supporting the Budget in the Lobby.

Finance Bill

Maggie Throup Excerpts
James Murray Portrait James Murray
- Hansard - - - Excerpts

My hon. Friend is absolutely right. So many businesses in the UK that are keen to invest, grow, and make people across Britain better off are being held back by the lack of stability and certainty from this Government. I cannot help but notice that the Government recognise the symptoms of the problem—that a lack of stability and certainty is indeed a problem for economic growth—but they are simply unable to provide a response to that problem, and provide the long-term plan that Britain so desperately needs.

We know that so much chopping and changing without any clear long-term plan has had a cost for our economy, by undermining prospects for investment, innovation and growth. Indeed, the Institute of Chartered Accountants in England and Wales has shared with us the view of its members that there is a lack of confidence when claiming R&D tax relief within the UK, and their belief that

“this has arisen due to the various changes made to the rules in quick succession over the past few years.”

We also know, of course, that having so many changes one after the other has a direct impact on taxpayers as well as businesses, as the public finances bear the costs for all the impacts on His Majesty’s Revenue and Customs in terms of IT systems and staffing. Our analysis of HMRC policy papers suggests that the changes made and proposed within the current Parliament have had a cumulative impact on operational costs for HMRC of more than £60 million. That sum is likely to include a substantial waste of taxpayer money as a result of so many piecemeal changes rather than coherent and lasting reform.

In order to be clear and transparent on the costs of all the Government changes to R&D tax credits, we have tabled new clause 1. The new clause would require the Chancellor to publish a review setting out the total implementation costs of all changes to research and development reliefs in the current Parliament. I hope Ministers will accept that straightforward new clause, but if not, I look forward to Government Members who would be interested in such transparency joining us in supporting it. Furthermore, if Ministers are not prepared to vote for the new clause or accept it, I would be grateful if they could at least commit to writing to me with the figures that our new clause requests.

Turning to the substantive impacts of clause 2, we should be clear about what the clause does. In the autumn statement, the Chancellor said that the Government were

“creating a new, simplified R&D tax relief that combines the existing R&D expenditure credit and small and medium-sized enterprise schemes.”—[Official Report, 22 November 2023; Vol. 741, c. 325.]

We have heard similar words from the Minister in this debate. In reality, though, the Government’s plans still effectively maintain two separate schemes: although they seek to merge the two existing schemes, they continue to provide additional support for R&D-intensive SMEs through the existing SME scheme, rather than its forming part of the new merged scheme. Although we recognise that R&D-intensive SMEs may need extra support, the Chartered Institute of Taxation has pointed out that the Government’s plans are

“less a merger than the shifting of most SMEs into a revised scheme based on an ‘RDEC’ approach, with the SME scheme remaining for a smaller group of R&D intensive SMEs.”

The Association of Taxation Technicians has pointed out the impact this may have, saying that

“the introduction of new rules to define R&D intensive SMEs and the possibility of companies moving in and out of the two regimes as their expenditure profile changes will arguably result in an overall increase in the complexity of the R&D relief regime, rather than simplification.”

As I said, we recognise that R&D-intensive SMEs may need additional support, but I would be grateful if the Minister could explain why the Government have chosen to continue operating a separate scheme to provide that support, rather than delivering it as part of the new merged scheme.

Alongside understanding the Government’s intention regarding the design of the new regime, I would also like to question the Minister about the timescales for implementing the measures in clause 2. In the policy documents associated with the autumn statement, it was clear that the new regime would apply from April 2024 onward. In the Bill, however, schedule 1, which clause 2 introduces, makes clear that the changes will apply from an “appointed day”—a day to be appointed by the Treasury in regulations. I would be grateful if the Minister could confirm in his reply what that appointed day will be. Is it 1 April 2024, or will it be a later date?

As April is less than three months away, if the appointed day does indeed fall within that month, is the Minister confident that that leaves enough time for proper consultation, and for any new systems and processes to be put in place by businesses, agents, software providers and HMRC? If, instead, the appointed day is later than April 2024, those affected need to know what is happening. I hope the Minister will be able to provide clarity on that question today; otherwise, sadly, this seems to be yet another example of continued uncertainty for businesses from this Government.

Finally, we know that the Government are concerned about the level of non-compliance with the R&D tax credit schemes. In their policy paper published in November about the merging of the current schemes, they wrote:

“Further action may be needed to reduce the unacceptably high levels of non-compliance in the R&D reliefs, and HMRC will be publishing a compliance action plan in due course.”

Tackling non-compliance is of course very important, so I would be grateful if the Minister could confirm in his reply when HMRC will be publishing the promised compliance action plan.

I am also very aware from meetings I have had with smaller businesses that they often face a great deal of confusion over the guidelines associated with R&D tax credits. Whereas larger businesses will typically have the resources and institutional capacity to navigate those rules, I am concerned that smaller businesses often do not, and may find themselves having to pay for expensive consultants to help them understand them.

HMRC could have a role to play in supporting small firms with clarity about the guidelines on R&D tax credits, as well as, of course, in its role in tackling genuine fraud. Indeed, the Startup Coalition—an organisation that advocates for policies to support innovative firms in the UK—has highlighted the need for HMRC to improve, and has called for improved

“transparency around adjudicating whether activity is R&D to provide certainty for firms.”

The ICAEW has made similar points, stressing the need for guidance and education and making clear that

“the new rules will significantly affect all sizes of companies including those smaller entities with limited professional tax resource.”

I therefore urge the Minister to make sure that any plan for improving compliance with the rules also focuses on making the rules easier to comply with wherever possible, and on working with small, innovative firms to help give them the certainty they need to thrive.

To conclude, Labour will not be opposing either of the clauses, but I urge Treasury Ministers to accept our new clause 1 and, when they reply, to respond to the specific points that I have raised. More widely, it is clear from their approach to capital allowances and R&D tax reliefs that the Conservatives are incapable of providing stability and a long-term approach. Their failure is letting down businesses across our country who stand ready to play their part in growing the economy and making people across Britain better off.

Maggie Throup Portrait Maggie Throup (Erewash) (Con)
- Hansard - -

I am delighted to be able to speak in Committee on the Finance Bill, which I believe emphasises the Conservative principles of encouraging entrepreneurs, free enterprise and innovation. Many in this Chamber will know that I do not have a traditional finance background, but I did run my own business for 19 years, which I think qualifies me to identify when fiscal measures are really going to help business. That is what I see in the Bill, especially clauses 1 and 2, which I will speak to today.

First, I will take the opportunity to speak in favour of clause 1, which will support UK business by making full expensing permanent. In the spring Budget 2023, the Chancellor introduced major reforms to the system of capital allowance by replacing the super-deduction system with three years of full expensing. The new measure, which was initially put in place until 1 April 2026, allows companies to claim the full cost of their expenditure on plant or machinery against tax when the business investment is made. That measure was well received by businesses across the UK, as my hon. Friend the Minister has already stated; he quoted a number of large plcs, but the measure has also allowed a number of Erewash-based businesses to benefit and prosper.

Dales Fabrications Ltd previously claimed a super-deduction, the predecessor of full expensing, on a very significant piece of machinery. It sounds quite complicated to me, but it is a 4-metre press break with lots of bespoke options. The benefits of the super-deduction were of such significance that the business purchased additional and highly beneficial tooling concurrently with the machine. The now chairman of the business said to me:

“In reality, we would have inevitably deferred that additional tooling purchase without the super deduction, thus meaning we wouldn’t have had 100 per cent of the benefits of our new machinery from day one and would have been effectively denied access to some types of work that went beyond typical industry-standard sizes.”

The owner of another business, Millitec, said:

“Super deductions are really good and a real incentive for us to invest.”

The successor of the super-deduction, which means being able to expense fully the cost of plant and machinery on a permanent basis, as proposed in clause 1, will undoubtedly continue to be a huge incentive for businesses across the UK to invest in their futures and in UK plc. I know from speaking to my local businesses that they really welcome this, and see it as one way to be able to expand and grow their business. However, I have a question for my hon. Friend the Minister. The terminology of plant and machinery is very broad, so when he responds could he provide some clarity for my Erewash businesses about what is defined as plant and machinery, to help them understand what is in scope? For example, does it extend to IT equipment? I think that having a better understanding of the terminology will really help businesses of all sizes to take full advantage of what is on offer.

The contents of clause 1 shows that the Government are on the side of business. Ahead of the autumn statement last year, 200 businesses—including AstraZeneca, which was so instrumental in the covid vaccine roll- out, and Toyota, a major employer of many of my constituents—wrote a joint letter to my right hon. Friend the Chancellor asking for the 1 April 2026 expiry date to be removed, so making full expensing permanent. Today, by supporting clause 1 and making full expensing permanent, we are backing businesses and helping them to succeed. It also shows that the Government are listening to businesses and making sure they are putting in place measures that will really help them grow their business.

Clause 1 will provide businesses with the biggest tax cut in modern history, worth over £10 billion a year, making the UK capital allowances regime one of the most generous in the world. Since the introduction of temporary full expensing in April 2023, the UK has become an appealing place to invest. The UK has had the second highest investment growth in the G7 and three times that of the US. Making full expensing permanent can only perpetuate that growth. Will my hon. Friend say when he winds up whether plans are in place to extend full expensing to plant and machinery that is either leased or hired? Those two options are often the only affordable ones for businesses with big ambition, but limited capital.

Let me turn to clause 2 and schedule 1. The Bill will simplify research and development rules by merging the small and medium-sized enterprises and the R&D expenditure credit schemes. Whether it is trialling and distributing the successful covid vaccines, which helped us defeat covid-19, or testing and developing new innovations that will enable us to meet our net zero targets, R&D businesses play a vital role in growing our economy. At the spring Budget 2023, my right hon. Friend the Chancellor announced enhanced support for R&D-intensive SMEs worth around £500 million per year, a consultation on the potential merged R&D tax relief scheme and support for those loss-making R&D businesses. As a result, the measures in this Bill show the Government’s unwavering support for R&D businesses.

Specifically, clause 2 and schedule 1 will help reduce bureaucracy and ensure that taxpayers’ money is spent as effectively as possible by simplifying the R&D tax system. That will stop many businesses having to navigate the complex transition between the two existing schemes. It is anticipated that the reduction of the intensity threshold in the R&D-intensive businesses scheme from 40% to 30% from April this year will allow around 5,000 extra SMEs to qualify for an enhanced rate of relief. A one-year grace period will also be introduced, providing certainty for companies dipping under the 30% threshold that they will continue to receive relief for one year. This is a vital measure for so many R&D-focused businesses, which inherently have peaks and troughs of activity. Taken together, these changes will provide £280 million-worth of additional relief per year by 2028-29 to help drive innovation in the UK.

Autumn Statement Resolutions

Maggie Throup Excerpts
Wednesday 22nd November 2023

(4 months, 1 week ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Maggie Throup Portrait Maggie Throup (Erewash) (Con)
- Hansard - -

Thank you, Madam Deputy Speaker. I am sure that I will be able to remain within the time you have allocated, as my voice today is a limiting factor.

I am delighted to contribute to today’s debate, and I congratulate my right hon. Friend the Chancellor on his autumn statement. After what has been a testing year steadying the ship, this afternoon he laid the foundations for long-term growth, and demonstrated that Britain is again on the right track to prosperity. By taking the tough decisions when he did—decisions that in just over year have seen inflation halved, recession avoided, borrowing down and unemployment remaining low—my constituents can look ahead to 2024 with renewed confidence.

My right hon. Friend’s plan for the economy balances sensible and proportionate tax cuts against the continuous threat posed by inflation. The engine of the economy—its workforce—must always be our main focus, so I particularly welcome the Government’s new back to work plan, which will help those who are long-term sick, disabled or unemployed to look for, and crucially to stay in, work. We know that not everybody is able to work, and that is obviously taken into consideration, but the new plan will provide opportunities and boost self-esteem at the same time.

Translated, the Latin motto of Ilkeston—one of the towns that I am so proud to represent—means “work conquers all”. By applying Ilkeston’s principle, this Conservative Government are building on the reforms introduced by my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) a number of years ago when he served as the Work and Pensions Secretary, and unlocking the potential of up to 1.1 million people, supporting them to improve their lives away from the benefits system and achieve whatever they want to achieve in paid employment.

In a similar vein, it is estimated that the private sector alone loses over 100 million work days each year to sickness absences, greatly impacting productivity and hindering wealth creation. With targeted public health measures aimed at prevention, there is a clear opportunity to make a significant reduction in the number of days lost to the UK economy through sickness absences, as well as a financial saving for businesses and the taxpayer in terms of associated costs such as long-term sick payments and benefits. I am pleased to see the Under-Secretary of State for Health and Social Care, my hon. Friend the Member for Lewes (Maria Caulfield), on the Front Bench. I am sure that she will take those messages back to her Department, and work with the Treasury to ensure that we get the right funding and use the right fiscal measures to move public health forward in a combined way.

Using the right fiscal measures is important. Ahead of today’s statement, I raised with the Chancellor removing VAT from high-factor sunscreen as one such public health measure that could make a significant and immediate difference. This is an issue close to my heart, as I had a melanoma removed in 2019. As a former Public Health Minister, I believe that tackling preventable diseases must be a priority if we are to relieve the ever-increasing pressures on our NHS. With 90% of skin cancers estimated to be preventable by the use of high-factor sunscreens, this really is a fiscal measure that would work.

Skin cancers are estimated to cost the NHS £465 million every year. That does not take into account other associated costs, such as long-term benefits and the loss to the economy, which far outweigh the revenue from VAT on high-factor sunscreen. Removing VAT on high-factor sunscreen would also put out the message to the public that the Government are doing everything possible to help to prevent cancer, and make it easier for individuals to protect themselves from this serious killer. I therefore urge my right hon. Friend the Chancellor to look seriously again at the cross-party proposals and to work towards removing VAT on high-factor sunscreen in the Budget next spring.

In the autumn statement my right hon. Friend has already used fiscal measures to help protect the public, and I welcome the increase in duty on hand-rolling tobacco. This should act as a disincentive to smoking and help the UK realise its ambition to become smokefree by 2030, as well as, more importantly, saving lives.

Turning to the levelling-up agenda, the Government can never claim to have truly succeeded in their mission to level up the midlands and the north if they fail to invest in places such as Erewash. It is therefore deeply disappointing that once again my constituency was overlooked in Monday’s announcement relating to round three of the levelling-up fund and I want to use this opportunity to make an early bid to my right hon. Friend the Chancellor for the inclusion of new funding to support major infrastructure projects in next year’s Budget, to help develop schemes such as my campaign to secure an additional motorway junction to support the multimillion-pound development at New Stanton Park and relieve the already congested local roads around my constituency.

On the wider measures announced for the east midlands, it would be remiss of me not to put in another early bid for a fair share of the benefits that will come from the east midlands investment zone. Erewash has a proud tradition of manufacturing and adapting to changes in markets and technology over time. I am sure we can accommodate advanced manufacturing and green industries, which will help regenerate our brownfield sites and contribute to the levelling-up agenda.

Whether of a Government’s own making such as the economic crash which exposed the “no money left” mantra of new Labour or caused by unprecedented global events such as the covid pandemic followed by war in Europe, during times of great economic uncertainty sound Conservative economics have always triumphed over the reckless tax-and-spend policies of the Labour party. It is in that spirit that today’s statement has been delivered, and the British people will prosper because of it.

Sunscreen Products: VAT

Maggie Throup Excerpts
Thursday 9th February 2023

(1 year, 1 month ago)

Westminster Hall
Read Full debate Read Hansard Text Read Debate Ministerial Extracts

Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Maggie Throup Portrait Maggie Throup (Erewash) (Con)
- Hansard - -

“It won’t happen to me”—that is what we all think. But then it does. It happened to me. Back in 2019, I noticed a blemish on my left arm. Knowing that both my parents had benign skin cancer, I decided to get it checked out. After a biopsy, my blemish was diagnosed as melanoma and I underwent surgery to remove the cancer. I was one of the lucky ones. The melanoma had not spread. I was not ill. I was discharged from the cancer specialist in 2020, free from melanoma. While I am left with an impressive scar on my left arm, the outcome could have been so different had I not been aware of the signs to look for and caught the cancer early.

One in 36 men and one in 47 women in the UK will be diagnosed with melanoma in their lifetime. Tragically, 2,300 people die from the disease each year. That number has included a business acquaintance of mine, who very sadly passed away in his early 40s, and BBC Radio Derby presenter Colin Bloomfield, who passed away at the age of just 33 in April 2015 after his melanoma metastasised to his lungs.

These deaths do not need to happen—86% of melanomas are preventable by adopting simple sun protection. That is why I back the call for sun protection of SPF 30 and above to be available VAT-free. I congratulate the hon. Member for East Dunbartonshire (Amy Callaghan) on securing today’s debate and on all the work she has done on this issue.

The Government can do a lot, but they cannot stop people going out in the sun; they can do a lot, but they cannot change the weather. But they can remove VAT from sunscreen. We need to remove every possible barrier that could stand in the way of people buying a life-saving product. At the same time, such a measure sends out the message that the Government are serious about tackling all types of cancer. From an economic perspective, a healthy workforce is a productive workforce. The cost to the NHS of not taking action against a preventable cancer must be huge. We need to break down the silos in the NHS, between the NHS and the Treasury, and between all Government Departments, and look at the cost of not removing VAT on such a product.

As is often the case, each and every one of us needs to take some personal responsibility. They say that only mad dogs and Englishmen go out in the midday sun. We should be taking the same preventive measures during the hot summer months here that we would if we were on holiday abroad. That includes seeking shade, wearing a hat and loose clothing, and keeping out of the sun when it is most prevalent. Through a combination of these actions, we will see a noticeable decline in cases of melanoma, which at the moment takes far too many lives, far too early, but the Government have a part to play as well.

--- Later in debate ---
Victoria Atkins Portrait Victoria Atkins
- Hansard - - - Excerpts

It is very difficult to calculate. Because of the way multinational companies such as Tesco conduct their VAT returns, it is difficult to break it down. Our concern is, as I say, a practical one about the impact. Each and every time I get asked to exempt a product from VAT—this is a regular occurrence, I promise, and I completely understand why Members of Parliament would wish for such matters to be exempted—I have to conduct this trade-off. It is incredibly difficult. I very much understand the intentions behind the campaign, but this is the thinking behind why we have thus far had to say no. Of course, we keep it under review.

Maggie Throup Portrait Maggie Throup
- Hansard - -

I completely understand the point the Minister is making about trade-off and balance, but will she commit to looking at the cost to the NHS of melanoma as a condition? That, surely, should be balanced out against the loss of VAT. Obviously, she will have to go to the Department of Health and Social Care for that, but let us look at that trade-off and that balance in more detail.

Victoria Atkins Portrait Victoria Atkins
- Hansard - - - Excerpts

That is a very fair challenge. I keep talking about difficulties, but that is the reality of the decisions we have to make; while a lot of melanoma is caused by of exposure to the sun, even in this day and age, some melanoma will be due to sunbed use, which I know colleagues across the House will have great concerns about. Some melanoma will be from damage caused decades ago, when we were less aware of the risks of the sun, and some will have no link at all to sun damage. It will never be a straight swap.

Stoke-Leek Line: Reopening

Maggie Throup Excerpts
Tuesday 20th July 2021

(2 years, 8 months ago)

Westminster Hall
Read Full debate Read Hansard Text Read Debate Ministerial Extracts

Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Maggie Throup Portrait The Lord Commissioner of Her Majesty’s Treasury (Maggie Throup)
- Hansard - -

To begin, I would like to pass on the apologies of the Minister of State, Department for Transport, my hon. Friend the Member for Daventry (Chris Heaton-Harris), who had planned to attend this debate. He is self-isolating after being pinged by the NHS Test and Trace app and asked me to stand in. I am delighted to have been asked to respond, and it is a pleasure to serve under your chairmanship, Mr Paisley.

I congratulate my right hon. Friend the Member for Staffordshire Moorlands (Karen Bradley) on securing this debate on the proposals for reopening the Stoke-Leek line—or, as she said, the Leek-Stoke line. I thank all Members who contributed. My right hon. Friend is a committed advocate of this scheme, alongside my hon. Friends the Members for Stoke-on-Trent South (Jack Brereton), for Stoke-on-Trent North (Jonathan Gullis) and for Stoke-on-Trent Central (Jo Gideon), who have spoken passionately with one voice in today’s debate. Their collective campaigning to reinstate the Stoke-Leek line is second to none. I am sure the description that my right hon. Friend the Member for Staffordshire Moorlands gave of her constituency will definitely have put it at the top of the tourist map for those who are listening to the debate. I also pay tribute to all right hon. and hon. Members who have sponsored applications to restore rail lines and stations in their own constituencies. I know just how much these schemes mean for local communities. Those Members are great advocates for the restoration of their railways.

This Government are committed to levelling up the country, and a strong, effective railway is central to that ambition. As part of that levelling-up agenda, in January 2020 the Government pledged £500 million for the Restoring Your Railways programme to deliver on our manifesto commitment to start reopening lines and stations. This investment will reconnect smaller communities, regenerate local economies and improve access to jobs, homes and education. The Beeching report led to the closure of one third of our railway network—2,363 stations and 5,000 miles of track were identified for closure. Many places that lost their railway connection have simply never recovered. For the towns and villages left isolated and forgotten by the Beeching cuts, restoring a railway line or station has the potential to revitalise the community. It breathes new life into our high streets, drives investment in businesses and housing and opens new opportunities for work and education. Ilkeston station, in my constituency, which reopened in 2017 after more than 50 years of closure, is a proven example of this positive impact.

Karen Bradley Portrait Karen Bradley
- Hansard - - - Excerpts

I am very much enjoying what the Minister has to say. I add my congratulations on the reopening of Ilkeston station, which I remember her predecessor, the great Jessica Lee, campaigned so hard for.

Maggie Throup Portrait Maggie Throup
- Hansard - -

It was a long-fought battle, like that which my right hon. and hon. Friends in the room are fighting.

More broadly, investing in transport links is essential to levelling up access to opportunities across the whole country, ensuring that our regions are better connected, local economies flourish and more than half a century of isolation is undone. By building back with a real focus on better connections and supporting left-behind communities, we are delivering our promise to level up this country, as set out last week by my right hon. Friend the Prime Minister.

The Restoring Your Railways Fund has three parts, with part of the £500 million fund allocated to the ideas fund. Aimed at early-stage proposals, the ideas fund is helping communities to develop ideas to restore railway lines and stations across England and Wales. These proposals are led by the affected communities, supported by their local Member or Members of this House, giving them an opportunity to make the case for how the railway can transform their area. The Department is funding 75% of the study costs of successful proposals, up to a maximum of £50,000. Over the first two rounds of the ideas fund, 25 promising schemes across England and Wales have been awarded up to £50,000 in development funding to help them get to the strategic outline business case stage.

My right hon. Friend the Member for Staffordshire Moorlands has taken advantage of this opportunity and submitted a proposal to restore rail services between Stoke and Leek—or between Leek and Stoke—to the first round of the ideas fund in spring 2020. While the bid had the potential to deliver benefits, it was not successful at that time, and the rail Minister wrote to the right hon. and hon. Members who sponsored the bid to inform them of the outcome. Feedback on the bid was provided at the same time, setting out why it had not quite made it in that round of funding and what could be done to further strengthen the proposals. I know that the rail Minister was therefore pleased that earlier this year—I think it was on 5 March, the deadline for applications for the third and final round of the fund—one of the more than 85 bids that the Department for Transport received was a revised proposal for the Stoke-Leek line.

As my right hon. Friend explained, the proposal details the many benefits that restoring the Stoke-Leek line would bring to the area—she was so graphic earlier about all the benefits—including providing residents of Leek with direct access to education and employment opportunities in Stoke-on-Trent and the opening up of Staffordshire Moorlands to the tourist trade. The assessment process for those bids is currently under way. The Department expects to announce outcomes over the summer. Decisions on bids are made by an expert panel, which the rail Minister chairs. It is informed by analysis from the Department for Transport, technical advisers and Network Rail. The standard of the applications is, as ever, very high.

In nearby Meir, in the constituency of my hon. Friend the Member for Stoke-on-Trent South, a proposal to reopen the railway station has already been successful in the ideas fund. This scheme used the funding awarded to create a strategic outline business case, which the Department will be considering soon. If delivered, the scheme would reconnect the people of Meir to the rail network for the first time since 1966, giving them access to new educational and economic opportunities, making new housing developments in certain areas viable and levelling up a region that suffers from poor productivity relative to the rest of the UK.

Advance proposals for the second part of the £500 million Restoring Your Railways Fund are being used to accelerate the development of closed lines and stations that are already being considered for restoration and have existing business cases. As a result, certain reopened railways will be connecting commuters again very soon, with regular passenger services set to be restored for the first time in almost 50 years by the end of 2021. The third strand of the Restoring Your Railways funding has been used to provide £32 million for a third round of the new stations fund, which is funding six new stations and providing development funding for a further two stations.

This country has a rich railway history, which puts it on the world stage, with its Victorian pioneers, its commitment to innovation and its engineering achievements. Thanks to record levels of funding, which will help us to build back better as we recover from the pandemic, we will also deliver the biggest modernisation programme to the railways for more than a century.

Of course, new rail lines are not the only way to reconnect our communities. Last week, the Prime Minister announced a £4.2 billion city region sustainable transport fund, which local leaders can spend on projects, such as new tram lines or bike lanes. The west midlands will receive a share of this fund, providing further opportunity for the constituents of my right hon. and hon. Friends to benefit from improved transport infrastructure.

Jonathan Gullis Portrait Jonathan Gullis
- Hansard - - - Excerpts

In Staffordshire, we are just on the edge of the West Midlands Combined Authority. Mayor Street does a fantastic job of delivering public transport, but I want to make sure that any money does not come at the detriment of areas, such as Stoke-on-Trent and Staffordshire Moorlands, that are not part of combined authority areas.

Maggie Throup Portrait Maggie Throup
- Hansard - -

I thank my hon. Friend for his intervention. He has put that on record, and I am sure it will be listened to and noted.

Additionally, Stoke-on-Trent has been awarded £34.5 million from the Transforming Cities Fund towards improvements at Stoke-on-Trent and Longton rail stations, new cycling and walking schemes, installation of electric charge points and upgrades to the city centre bus station. The local growth deal is also investing £121 million of transport infrastructure in Stoke-on-Trent and Staffordshire, including constructing new highway infrastructure to improve access to business and employment sites around Stoke-on-Trent, new access to the Etruria Valley enterprise area and the new Stafford western access route, which will provide an alternative route to the town centre this year. All this investment will improve transport connections for Stoke-on-Trent and Staffordshire, helping residents access new opportunities.

I conclude by thanking my right hon. Friend the Member for Staffordshire Moorlands for securing this debate and thanking my right hon. and hon. Friends who represent the area for all their thoughtful contributions. I can reassure the House that there is a tremendous amount of work being done in this area to reconnect smaller communities, regenerate local economies and improve access to jobs, homes and education. I will make it my personal commitment to ensure that the rail Minister is fully updated on the compelling case for the Stoke-Leek Leek-Stoke line, which I have heard loud and clear this afternoon.