Oral Answers to Questions
Debate between Marcus Jones and Melanie Onn(7 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Jones
My hon. Friend raises an important question. When a council’s income is impacted by a successful business rates appeal or other losses in business rates income, there is a safety net, as I am sure he will be aware. However, he will be reassured by the fact that, during the design of the new 100% business rates retention scheme, we are looking at how risks around business rates income will be managed in the future.
Melanie Onn (Great Grimsby) (Lab)
Local Government Pension Scheme
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Melanie Onn (Great Grimsby) (Lab)
Will the Minister explain what happens if an LGPS fund cannot pay its pensions?
Mr Jones
As the hon. Gentleman knows, that is covered in the guidance, and I will write to him at further length on that point.
The hon. Gentleman asked for clarification on whether local government procurement guidance applies to the LGPS. Our guidance on pension scheme investments is entirely of the same framework as the guidance issued by the Cabinet Office on public procurement. Both operate within the wider framework of national and international law.
The hon. Gentleman also mentioned tobacco. It is our position, as is clear from our response to the consultation on investment, that decisions on matters such as whether to invest in tobacco are for individual pension funds provided that they comply with the broad principles in our guidance.
The hon. Member for Birmingham, Erdington (Jack Dromey) mentioned localism. Our reforms are entirely consistent with localism. We have removed the petty, arbitrary caps on different types of investments put in place by the Opposition some years ago and given local authorities real freedom to decide how they invest their pension funds.
In summary, I reassure the House that investment decisions will remain for administering authorities. The Government are challenging local authorities to be independent and ambitious, subject to local democratic control and appropriate safeguards. We have no intention whatever of gambling with money that has been set aside to pay pensions.
Melanie Onn
I am a former trustee of a pensions scheme, and it was made clear to me on repeated occasions that the legal duties and responsibilities fell to those people around the table who were privy to all the investment information as well as the contributors to the scheme. My overriding question about the regulations and the Government’s involvement in the LGPS scheme, as opposed to private schemes over which they have no direct responsibility or involvement and do not interfere, is whether LGPS trustees’ rights and responsibilities are being eroded or undermined in any way. Does that set a precedent? That would concern me.
Mr Jones
I would like to reassure the hon. Lady that the changes are in no way intended to diminish the role of individual pension funds or the people who represent members. [Interruption.] She is commenting from a sedentary position, but we will have to agree to disagree on that point, bearing in mind what I have said previously.
Oral Answers to Questions
Debate between Marcus Jones and Melanie Onn(8 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Melanie Onn (Great Grimsby) (Lab)
T4. According to the Government’s figures, the homelessness prevention grant has helped councils keep 1 million people from becoming homeless since 2010. Last month, I wrote to the Minister to ask that his Department protect that grant from the forthcoming spending review. In his reply, he failed to give any assurance, so my question now is if the grant is removed, what effect will it have on homelessness in coming years?
The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)
As the hon. Lady has identified, the £400 million that the Government have put into the homelessness prevention grant over the last five years has been part of a significant package to keep 935,000 families from becoming homeless. As she knows, a spending review is coming up, and that is one of the areas that we are considering very carefully: she will learn more about it and other policies on homelessness after the 25th of this month.