Post Office: Compensation for Horizon Scandal

Debate between Margaret Ferrier and Paul Scully

Thursday 30th June 2022 Commons Chamber

[Paul Scully]

I am not sure if it is the House authorities, but it is certainly the case that Wyn Williams’s inquiry will see exactly where the failings were—including, if there are any, failings by Ministers or others who have stood here—without fear or favour. In terms of directors, we have already brought in a number of measures since I have been a Minister, including the disqualified directors legislation, which allows the Insolvency Service to bring companies back on the books and then to take action against their directors, but we will always look to make sure we have the most robust system to tackle rogue directors.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

I would like to thank the Minister for his determination to get this issue sorted for sub-postmasters where other Ministers have failed. With post offices getting harder and harder to come by in recent years, how do the Government intend to restore confidence so that potential sub-postmasters are not put off opening these businesses that are so essential to our communities?

[Paul Scully]

We want to ensure that, by drawing a line under this historic miscarriage of justice and scandal, we can work on the future of the Post Office. To do that, we need to make sure we are engaging everybody—rural, coastal and city-wide post offices—on how we get the right balance between the Post Office’s economic value and its social value. I will continue to work with the APPG and with Members on both sides of the House to get this right.

Sub-Postmasters: Compensation

Debate between Margaret Ferrier and Paul Scully

Tuesday 22nd March 2022 Commons Chamber

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

I welcome the Government’s move to ensure that the 555 sub-postmasters receive the compensation that they deserve. I thank the Minister for his work to fix this matter; he has really cared about it. Can he confirm what discussions he has had with his Cabinet colleagues about how we can ensure that future victims of such scandals do not face the same issues of accessing compensation that is swallowed up by legal fees?

[Paul Scully]

That is the last question, so I will say that although the last three quarters of an hour have been my moment in the sun, it is not about me: it is about the 555. I thank all hon. Members on both sides of the House who have been involved in ensuring that we have reached this point. There is plenty more to do. Clearly, we will all learn from this to inform us in other situations that may arise so that we can ensure that people get compensation as soon as possible.

Post Office: Horizon Compensation Arrangements

Debate between Margaret Ferrier and Paul Scully

Thursday 24th February 2022 Commons Chamber

[Paul Scully]

I can assure my hon. Friend of that. People have died because this has taken so long, and other people have died because they have committed suicide. It has been horrendous, and that is why we are determined to ensure that we can get this sorted out as soon as possible.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

Soon after I was elected, I was contacted by a constituent whose father had been wrongly caught up in this scandal. He lost everything: his livelihood, and, more important to him, his reputation. He sadly passed away before he had the opportunity to clear his name, and he will never see the benefits of this compensation. Have the Government any plans to offer personal, individual apologies to the family members of postmasters who are no longer with us?

[Paul Scully]

I cannot give a particular commitment, but what I can say is that the Prime Minister is personally exercised by this, which is why we met some postmasters last summer. I was talking to him about the matter just yesterday. He is personally involved, and he gives me the kick that I need in order to give other people a kick to ensure that we can get everyone the apology, the compensation and the justice that they need.

SMEs: Access to Finance

Debate between Margaret Ferrier and Paul Scully

Tuesday 9th November 2021 Westminster Hall

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

It is always a pleasure to serve under your chairmanship, Mr Pritchard. I congratulate my hon. Friend the Member for Darlington (Peter Gibson) on securing today’s debate and on how he framed it. I pay tribute to him for his work as chair of the APPG on personal banking and fairer financial services. It is important that we continue to shine a spotlight on that. He has been a staunch advocate for smaller businesses both in his constituency and around the country, and he brings his own experience to bear on that. We also heard from my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), who is a vice chair of the APPG and has brought so much fresh, new thinking to these areas, which is important for me, for the Economic Secretary to the Treasury and for the Government as a whole. We continue to respect and listen to the views of both my hon. Friends.

The business experience of my hon. Friend the Member for Thirsk and Malton has been instrumental in the framing of his words. Both my hon. Friends illustrated how deeply they care about small businesses and their contribution to the economy, which, as we have heard, provides millions of jobs. SMEs will be the backbone of the drive for growth, innovation and jobs, and we are absolutely determined to support them. That is why during the pandemic we protected small firms with our income support schemes, grants, and nearly £80 billion-worth of Government-backed finance to more than 1.6 million businesses. However, as we start our economic recovery, we need to shift our focus from emergency support to policies that will help businesses create jobs and invest. As the Chancellor has said, our plan is to make the UK the best place to start, grow and scale a business. The logic is simple. More start-ups and scale-ups will in turn help us in our mission to level up the country.

[Margaret Ferrier]

We need to ensure access to affordable finance UK-wide, so can the Minister tell us what steps the Government are taking to make sure that Scottish SMEs have the right level of accessibility?

[Paul Scully]

I thank the hon. Lady for that intervention. I mentioned levelling up the country, and she is absolutely right that we need affordable, diverse finances for SMEs right across the country, and that includes in Scotland. I want to make sure that we go further to make the UK the best place to start growth. It should not matter where we are in the country. It should still be the best place to start to grow and scale a business. That is as equally true of Scotland as it is of Wales, England or Northern Ireland. Brilliant businesses can be found everywhere in the UK. However, access to finance is undoubtedly skewed towards London and the south-east, and we need to rectify that.

At the Budget, we took some major steps towards redressing those regional imbalances. For example, the British Business Bank’s start-up loans have been helping entrepreneurs since 2012 with viable ideas that might otherwise struggle to obtain finance from more traditional sources. In fact, the bank has made 165 loans to businesses in Darlington, totalling more than £1.5 million. At the spending review, we built on that success, pledging another 33,000 loans over the next three years. That is not all for Darlington—it would be a significant number of start-ups there—but across the country. That is money that will get other great ideas off the ground.

Members have spoken of the need for strong local options for business; we absolutely agree. That is why the Budget committed a further £150 million to the bank’s successful Regional Angels programme, which helps entrepreneurs obtain early-stage finance across the UK. We also announced more than £1.6 billion for the British Business Bank’s regional funds, which provide debt and equity finance for SMEs to help them with their next stage of growth. Across those funds and start-up loans, CDFIs will continue to play an essential role to help get finance to underserved SMEs.

To answer the points hon. Members raised on CDFIs and mutual banks, community development financial institutions play a massive role in the landscape of alternative lenders, including those essential lenders providing credit to SMEs. They are such an important delivery partner for the start-up loans programme; 11 of the 21 start-up loans delivery partners are CDFIs. They account for approximately 30% of the loans issued through the scheme in 2021. More widely, the British Business Bank was working with 21 CDFI delivery partners, across a range of programmes, at July 2021. That includes the regional funds and the recovery loan schemes.

In addition, 14 CDFIs were accredited lenders for the covid loan schemes. In the wake of the spending review, we will continue to explore opportunities for collaboration between the BBB and CDFIs. The Government are also supportive of efforts to establish the regional mutual banks that we have heard so much about this afternoon across the UK. I understand that some prospective mutual banks have had success in raising capital from various sources, but they have also encountered some challenges. There are no plans directly to capitalise regional mutual banks, but I know the Government have been engaging with prospective mutual banks and are willing to explore solutions that are practical and proportionate.

My hon. Friend the Member for Darlington is not only not far from the Treasury in this place and constituency neighbour to the Chancellor, but the Treasury is moving a number of its operations to Darlington, his home town, which he represents. He will not have too far to go to knock on the door to further his case for regional mutual banks. I am sure he will be delighted to know that businesses will continue to obtain funding through all those schemes, along with those in the north-east and the wider south-west of England for the first time as we get regional funding for the British Business Bank increased.

The new regional funds the British Business Bank is setting up in Scotland and Wales, while building on its existing activity in Northern Ireland, will bring levelling-up opportunities for businesses across the UK. As the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) said in relation to Scotland, it is important that we support businesses wherever they are. The regional funds will support a wide range of businesses, including the innovative, high-growth firms that play such a big part in creating prosperity and opportunity. We are further turbocharging those firms through the £375 million Future Fund: Breakthrough, which sees the Government co-invest with private investors and businesses that are heavily focused on R&D.

Finally, as we have heard, the Chancellor announced the extension of the recovery loan scheme to 30 June 2022. From 1 January, the scheme will be open only to small and medium-sized enterprises and the maximum amount of finance will be £2 million per business. The guarantee coverage that the Government will provide to lenders will be reduced to 70%.

We also heard from Members about patient capital, and we are looking to improve access to longer-term sources of finance. We absolutely agree with my hon. Friend the Member for Darlington that we need to unleash the hundreds of billions of pounds in pension funds and other institutional investors for long-term investment. That is not just good for the wider economy, because it will support growth, but good for the customers who will benefit from the opportunities for returns offered by UK long-term assets. It is an area where we know we can and should make more progress. I am happy to say that this Government are taking significant steps in that direction.

We are implementing a plan to unlock more than £20 billion to finance growth in innovative SMEs. As part of this, British Patient Capital, a subsidiary of the British Business Bank, is supporting UK companies with high-growth potential to access the long-term financing they need to scale up.

We have also taken significant action to remove barriers to pension scheme investment in a wide variety of asset classes. Members may recall that in the Budget, the Chancellor announced the consultation on further changes to the auto-enrolment charge cap to remove barriers to higher-return investments, while ensuring vital member protections remain in place.

[Paul Scully]

That is certainly something the Economic Secretary to the Treasury will have heard and will consider as we look to diversify finance, especially in longer-term projects. We have established the productive finance working group, which is an industry-led body, which has now published recommendations setting out how we can unlock new investment in those long-term assets. I am pleased to say the Financial Conduct Authority has just published its rules for a new long-term asset fund structure, which will make accessing illiquid assets easier and encourage investors to look increasingly further ahead.

Finally, we are encouraging asset management and pension funds to play their part. I am delighted to say that the Chancellor and the Prime Minister are planning an institutionalised investment summit later this autumn, which will be a chance to celebrate the progress and commitment to further industry-led action.

Although we undoubtedly need to do more to widen access to finance for business, we should not overlook the great support that existing lenders provide to our SMEs. Last year, in fact, members of the Finance & Leasing Association provided SMEs with more than £16 billion to fund new equipment, plant and machinery, or software. According to the British Business Bank’s “Small Business Finance Markets Report”, banks provided £104 billion in SME lending, up 82% compared with in 2019.

I am delighted that some major lenders are helping our Help to Grow scheme, which aims to boost productivity by giving entrepreneurs management training through the Help to Grow Management scheme, and helping them to adopt digital technology through Help to Grow Digital. I encourage all hon. Members in the Chamber and further afield to promote those schemes to their SMEs because they are incredibly important opportunities to boost productivity wherever they are in the country.

[Margaret Ferrier]

Government Department procurement processes usually mean that the cheapest quote wins the contract, which might mean that SMEs struggle to compete or operate at greater cost to their business. What steps are the Government taking to level the playing field for these contracts and encourage SMEs to apply?

Greensill Capital

Debate between Margaret Ferrier and Paul Scully

Tuesday 13th April 2021 Commons Chamber

[Paul Scully]

My hon. Friend is absolutely right. What the Chancellor, the Secretary of State for Business, Energy and Industrial Strategy and other Ministers have done throughout is to make sure that, rather than just reacting to events, we can flex and respond as best we can by speaking to businesses large and small and by speaking to stakeholders to try to smooth out those cliff edges of support. As we get to that road map, as we start to reopen and recover our economy, it is as important as ever to make sure that we have that flexibility within our support.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind) [V]]

It is apparent in the text messages sent in April 2020 between the Chancellor and David Cameron, now published by the Treasury, that the Chancellor pushed the team to explore an alternative with the bank regarding cheap loans for Greensill. Will the Minister explain what those alternative arrangements were and why Greensill was deemed such an important recipient of public funds, even after the Bank of England refused to authorise Greensill’s entry into the covid corporate financing facility scheme?

[Paul Scully]

The Bank of England refused Greensill’s entry because there were no banks in the scheme. It was a way for the Government and the Bank of England to get money to businesses and of underwriting it rather than its being a separate loan scheme. That is why Greensill was accredited for CLBILS. The only other request to expand Greensill’s reach came from the shadow Front-Bench team, who asked for it to receive the higher level—up to £200 million.

Non-EU Citizens: Income Threshold

Debate between Margaret Ferrier and Paul Scully

Monday 7th March 2016 Westminster Hall

[Paul Scully]

The hon. Lady is second-guessing what I was going to say, because I contend that the shortage occupation list, which is the second part of the tier 2 visa rules, takes that into account. Although the petition goes on about nurses, they are on the shortage occupation list. It also mentions charity workers, who tend to be dealt with on tier 5 visas, for temporary workers; and students, who tend to have tier 4 international student visas. Therefore there are a few factual inaccuracies in the petition, but none the less there are some real concerns within various occupations, and it is right that the people in question should make representations so that we can consider them. We should bear it in mind that the Migration Advisory Committee regularly looks at the list, and it is important that it should continue to do so.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

The economy relies on a wide variety of skills, and not all are paid at similar rates. Does the hon. Gentleman agree that a banker in the City will earn much more than, say, a classical musician? The blanket application of one threshold for all industries is inherently unfair.

[Paul Scully]

If that were the case, then yes, it would be, but I think that is where the shortage occupation list comes in. For example, a classical ballet dancer has an exemption of £20,800 and so will not be affected by the £35,000 limit. The threshold is far lower. I cannot say what the market rate is for a classical ballet dancer, but there are such exemptions. That is why it is very important that the Migration Advisory Committee should keep the list under regular close inspection and review, covering such examples as the hon. Lady has mentioned.

Tier 2 is intended for skilled workers. The majority of reasonable people—if we can get past the people who say we should stop all immigration now—would consider immigration to play a positive economic and cultural role in the country. We bring in some fantastic migrant entrepreneurs and, as has been said, nurses, as well as pharmacists and people who work in the cultural industries such as music, dance and the arts. Those people contribute to the UK and the fabric of the country. In some cases they do jobs for which we cannot find the skills in this country, and they can help to train and upskill our own citizens.