Finance (No. 2) Bill

Matt Rodda Excerpts

Committee stage & Committee of the Whole House (Day 1)
Monday 19th April 2021 Commons Chamber

[Sarah Olney (Richmond Park) (LD) [V]]

I wish to speak to clause 5 relating to the changes in personal income tax allowances and to clause 28 relating to the freezing of the lifetime allowance on pension pots.

There is no doubt that the last year has made unprecedented demands on the public purse, and it is right that the Government should be prepared to take difficult decisions on taxation as we move forward, as we all very much hope, out of the pandemic and into the changed world beyond. However, the Government made clear commitments in their 2019 manifesto that they would not raise income tax on working families and they have broken that commitment in this Bill. The freezing of the personal allowance and the higher tax bands means that more working people will pay tax and at higher rates than they would otherwise have expected.

Clearly the Government are banking on a consumer-led recovery and this tax burden on working families will reduce the amount of discretionary spend available to households, limiting their ability to spend on consumer goods. As housing costs increase to their highest ever levels, household budgets will continue to be squeezed, and piling additional tax charges on top will create an enormous burden for those who are already struggling to make ends meet. It is a particular insult to those in our NHS, who have sacrificed so much to keep us all safe this year and have been told to expect only a 1% pay increase for their trouble. Our nurses will have to give back more of that 1% in tax than previously despite all that they have already given. This is particularly galling when compared with the Government’s decision to delay a corporation tax increase. The Government have chosen to tax hard-pressed frontline workers first and large, profitable corporations later. Only those companies that have remained profitable throughout the pandemic would be paying corporation tax next year, which is why an immediate increase in corporation tax could have captured the windfalls or excess profits of those who found their revenues increased as a result of the unusual trading conditions of the last year. This would have been a far more equitable route to raising income than putting the burden on hard-working families.

On clause 28, I urge the Chancellor to carefully consider the impact on NHS pensions of freezing the lifetime pension allowance. I have heard a few stories from constituents about how this measure interacts with their final salary scheme. While a figure of a little over £1 million would rightly strike most as more than sufficient as a tax-free pension pot, senior doctors in the NHS are finding it extremely difficult to assess whether or not their overtime will result in their yearly calculation of their lifetime allowance being tipped over the threshold and result in a current tax bill. The British Medical Association estimates that the number of GPs taking early retirement has tripled over the past decade and puts this down partly to the uncertainty about their tax bills.

It is worth noting that when the lifetime allowance was first introduced in 2006, it was set at £1.5 million, rising to £1.8 million in the financial year 2010-11. Since the Conservatives came to power, it has reduced every year to the current level of only just above £1 million. Like the freezing of the personal allowance, this has the impact of catching more ordinary people in the taxation net, and again we see that the Chancellor wants to raise money off the back of hard-working NHS frontline workers while protecting profitable corporations.

This issue has been a problem for doctors for the last few years, so the Government have no excuse for not knowing that the freezing of the pension lifetime allowance would make the situation worse. Have the Government carried out an impact assessment of the measure on NHS retention of senior staff? I am extremely concerned, at this time when our senior NHS staff are exhausted and facing a huge backlog of elective surgery, that skilled staff should not feel compelled to take early retirement because of an unintended and avoidable tax consequence.

The Finance Bill seeks to tax hard-working families and penalise those who have been working so hard to keep us all safe this year, and the Liberal Democrats cannot support these measures.

[Matt Rodda (Reading East) (Lab)]

I want to offer my support to the shadow Minister, my hon. Friend the Member for Ealing North (James Murray), who put his case very fairly. I want to illustrate what that means in my constituency of Reading East and perhaps develop some of the points he made.

I particularly want to raise the growth in the use of food banks, which has been very significant across the country, and our area is typical in so many ways, as indeed it is in many instances. The growth in the use of food banks illustrates why the Budget was such a complete failure, because the Government failed to offer real help to many families. In particular they offered very little to those in the greatest need, as we heard from the shadow Minister, and very little to those who are self-employed and have recently set up a small business. Indeed, the3million campaign group rightly pointed out that, although a small number will benefit from some measures offering further support for recently set-up small businesses, most will not, and that has been widely recognised in my constituency.

Before going into the detail of local food banks, I want to thank all the volunteers at our local council in Reading and many others, both businesses and individuals, who have helped support food banks by generously giving their time and putting the community and others first at what is a very difficult time for so many people. I have tried to keep in touch with the pressures by going to help myself and to receive regular briefings from food banks and other charities, and I want to describe to colleagues what this is like.

Finance Bill

Matt Rodda Excerpts

Report stage & Report: 2nd sitting & Report: 2nd sitting: House of Commons
Thursday 2nd July 2020 Commons Chamber

I turn to new clause 22, much loved by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), who is not in his place. It modifies the current enterprise investment scheme and seed enterprise investment scheme so that individuals who made EIS and SEIS investments before a future fund investment in the same company will not lose relief on those previous investments when the future fund loan converts into shares or is repaid. As the House will know, those schemes were intended to encourage investment in smaller, higher-risk trading companies by offering tax reliefs to individual investors who subscribe for new shares in qualifying companies. The Government announced the future fund as part of its business package in response to covid-19. Current EIS and SEIS legislation means that some future fund investors who have used those schemes for previous investments in the same company might lose their reliefs, depending on how and when the loan converts. The new clause intends to ensure that those investors do not lose that relief as a result of investing in the future fund to support innovative UK companies that may have difficulty raising finance during this period.

[Matt Rodda (Reading East) (Lab)]

May I press the Minister on innovative companies getting a lack of support from HMRC? I have come across a case in my constituency where a very innovative British company appears to have had a lack of support from the agency. Would he look into that for me?

--- Later in debate ---

[Wes Streeting (Ilford North) (Lab)]

I thank the Financial Secretary for making the case for the Government’s new clauses this afternoon. Throughout the coronavirus pandemic, the Labour party has made clear as the official Opposition that we seek to work constructively with the Government in response to this unprecedented public health crisis which, as we have seen, has brought about an economic crisis to follow it. In that spirit, and to ensure the smooth passage of legislation, we have helped to expedite the progressive measures taken by the Government, and this afternoon will be no exception.

I wish to speak to new clause 29, which has been tabled in the name of my hon. Friend the Member for Oxford East (Anneliese Dodds), the shadow Chancellor, and other hon. and right hon. colleagues. Yesterday afternoon, I addressed the Government’s poverty of ambition on climate change. This afternoon, I want to address their poverty of ambition on tackling poverty itself.

The Conservative party has now been in government either alone or in coalition for a decade. Over the past 10 years, their record on poverty in this country and on tackling poverty in this country has been absolutely lamentable. According to the Government’s own Social Mobility Commission, 600,000 more children are now living in relative poverty than in 2012, and that is projected to increase further due to benefit changes and the obvious economic impact of covid-19. As of 20 February this year, some 14 million people were in poverty, according to the Joseph Rowntree Foundation, including 2 million pensioners and 4 million children. We know that the impacts of poverty are felt disproportion- ately among different communities. Children from black and minority ethnic groups, for example, are more likely to be in poverty, with 45% of BAME children living in poverty, as compared with 26% of children in white British families.

We believe that the Government are failing on something that should be the most basic of priorities for any Government. That is not just our view as the Opposition party; the Government’s own Social Mobility Commission has said:

“The government should be more proactive in addressing poverty overall.”

It is worth bearing in mind that behind every statistic is a child, and 30 years ago I was one of those children in the child poverty statistics, growing up on a council estate in London’s east end, sandwiched between the bright lights of the City of London and the glistening lights of what was then the blossoming London Docklands Development Corporation land, which has become Canary Wharf. Today, they are two global financial centres at the centre of our global city. In between is a vista of poverty that was bad then and remains bad now.

One of the things I find most frustrating about the experience I had growing up in a council flat in the east end in the 1980s is that I look back, and I think about the conditions of the council flat I lived in and the embarrassment of not wanting to bring friends home from school because the conditions were not ones that we were proud of. It was a source of shame and embarrassment. I think about the experience of relying on free school meals, and the stigma that arises from having to collect a dinner ticket while other children go and pay for their food quickly—and get the best food, I hasten to add, while handing over their cash. I think about the difficulties my mum had as a single mum, balancing the challenge of bringing up a child while relying on the benefits system, and having to make compromises in choosing how she spent the family budget: the choice between putting food in the fridge or some extra money in the electricity meter.

One of the things that makes me most angry is that, when I think about my experience, which I thought was bad in the 1980s, and compare it with that of children growing up in the same circumstances today, as seen in my own constituency casework, things have got worse for children in the decades following my childhood, when things ought to be getting better. Whereas I had the stability of a council flat—albeit not a nice one—and a roof over my head, children in my constituency today, and no doubt in those of so many others across the Chamber, are growing up in temporary bed-and-breakfast accommodation, being moved from pillar to post and living in substandard accommodation, with disruptive consequences for their education and their schooling, and the inability for them to form lasting friendships and for their families to build supportive networks and family relationships.

When I think about the enormous strides that were made, particularly by the last Labour Government, in tackling educational disadvantage, I think it is outrageous that, in this country in the 21st century, children still today arrive at school at the age of five with their life chances already limited and in many cases predetermined, because we failed to get early years right. Sure Start centres have closed, and the support for families is no longer there. As a result, children arrive at school, at five, less prepared than their peers from more affluent backgrounds. It makes me angry that, for all the difference made to my education through programmes under the last Labour Government and the impact they have had on children since—the London Challenge and Excellence in Cities—today children are leaving school at 16 at a time when the attainment gap between children from the most advantaged backgrounds and the least advantaged backgrounds is actually widening, and where the further education system in which many working-class young people go on to study has been described by the Government’s own Social Mobility Commission as “undervalued and underfunded”. This is at a time when the changing nature of our economy and the changing nature of the world of work make post-16 adult education delivered in further education settings more important, not less. We should be making progress, but we are in reverse gear.

[Matt Rodda]

My hon. Friend is making an extremely powerful speech, which focuses us, as we should be, on this vital issue. Does he agree with me that a central part of the problem many families face is that the costs of food and of rent have risen so dramatically, with the impossibility of being able to afford a home? In my constituency in Reading, it is very difficult for many people to get on to the housing ladder. Many young professionals and young families are crammed into flats, which are hugely expensive. They are also suffering huge problems with the high cost of food. Does he agree with me that this is a very significant part of the problem?

[Wes Streeting]

I strongly agree with my hon. Friend, and that brings me neatly on to the next point I was about to make about employment conditions in our country. For my mum, as a single mum, it was difficult to hold down a steady, stable job and often she was reliant on temporary, casual, low-paid work to help make ends meet. Looking at the picture in the labour market—and this was pre-pandemic—even in households where one or both parents are working, children are still growing up in poverty. As my hon. Friend said, over the last decade we have seen the bills going up, but the wages failing to follow.

We have also seen labour market conditions that mean that, even when people are doing the right thing, as the vast majority of people want to do—going out to work, often with two, three or even four jobs in a week, and working all the hours God sends to try to make ends meet—they are still unable to make ends meet. It should never be the case, especially in a country with the wealth and opportunity available here, that when someone goes to work and puts in a full week’s work, at the end of the day they still do not have enough to make ends meet. Things are likely to become even more challenging in the wake of the economic fallout from coronavirus. Unemployment statistics from recent months have been not only jaw dropping but unprecedented, and the pace at which our economy has collapsed as a result of the necessary shutdown has been astonishing. I welcome and recognise the steps that the Chancellor has taken to try to protect people’s incomes, but unless he goes further than he has already announced, many people will face greater poverty and hardship later this year.

Finance Bill

Matt Rodda Excerpts

Report stage & Report stage: House of Commons & Report: 1st sitting & Report: 1st sitting: House of Commons
Wednesday 1st July 2020 Commons Chamber

People point out that they declared what they were doing on their self-assessment form. Even the tax code was okayed by Her Majesty’s Revenue and Customs. They were told that this was a less burdensome way of doing things than starting their own plc. As soon as the first sniff of a discrepancy appeared, they paid the shortfall. The retrospective aspect is worrying; people are now being told that all these other things will be reopened. In the case of my constituent, HMRC mixed this up with a student loan from years ago, which had been was paid off. There are aggressive letters, maladministration, and, for this constituent, health issues. That is just one example from a three-figure number of examples that I could give.

[Matt Rodda (Reading East) (Lab)]

Does my hon. Friend agree that the common characteristic of the people who have contacted many of us is that they are very hardworking? They have tried to play by the rules. They have possibly been sold a scheme that they did not fully understand, and may have been manipulated by unscrupulous advisers, and now they face threatening behaviour from HMRC. It is truly difficult for these people, many of whom work in IT in the Thames valley, and in creative industries. Does she agree that the Government need to show these people some understanding?

[Dr Huq]

My hon. Friend is completely right. HMRC needs to show some humanity in these cases. The scheme was obviously badly implemented, with inadequate impact assessment. The word “scandal” is frequently used and often misapplied, but in this case, all the elements needed are there. People have been pushed into bankruptcy; families have been fractured; people are facing financial ruin and losing their homes. As we have heard, there have been seven suicides. The all-party parliamentary loan charge group, which is very active—I am sure it is in everyone’s inbox all the time—has sent round a letter from the daughter of one of the people who sadly took their own life about the impact that has had on everyone involved.

The Morse review is a start, although the APPG feels that it could do better and go much further. All of us have seen these cases; my hon. Friend the Member for Liverpool, Wavertree (Paula Barker) described the situation movingly.

--- Later in debate ---

[Taiwo Owatemi]

I have been contacted by many residents who are extremely worried about the changes to the furlough scheme and their potential impact on unemployment. One of my constituents, James, recently got in touch with me to say that the company that his partner works for has already announced that it will be letting almost 40 employees go. The reason the company gave, I am told, was that the Government have asked employers to share the load of the furlough scheme from August. As can be imagined, staff at the company have been left heartbroken and have said that they feel this is completely wrong and runs contrary to the much repeated idea that a furlough scheme was a job retention scheme. James has said to me that while he understands that companies must ensure that they can continue to operate on a sustainable financial footing, it seems very unethical of the company to make the decision to reduce its numbers two months before that would start to become a significant financial burden on it.

The Prime Minister has repeatedly said that companies should not use the scheme just to keep employees on their books, only to get rid of them later, but should use it as a scheme to retain jobs. This compounds my view that the furlough scheme masks the true extent of the crisis in our jobs market. Since the start of the crisis, the Government have been too slow to take these threats seriously. We have seen very little from the Government around preventing unemployment since their economic package was created. If we do not take action now, we could see even more people lose their jobs.

This crisis requires a regional response, so that places such as the west midlands are not left behind. The Government’s one-size-fits-all approach fails to understand how our economy works. My own city has seen a devastating impact, with mass redundancies coming at Coventry College. Last week, I spoke about the impact on the aviation industry, with job losses at Rolls-Royce Ansty and in the arts and small businesses such as Exhibit 3Sixty. We need to protect our industries in the west midlands. That is why we need decisive rapid action to boost the economy, to provide small and medium-sized firms with the support they need, and to give businesses the strongest incentive to start creating jobs again.

My office has already started this work. Working alongside Coventry City Council, we are getting ahead of the response. I will not sit idly by while people in my community lose their jobs and vital skills. I have been holding a series of meetings with employment and skills agencies, as well as with Coventry and Warwickshire chamber of commerce and other business groups, to discuss supporting businesses during this time and upskilling people so that they can secure jobs for the future and find new work now. As part of its employment and skills priority for Coventry, the city council has been working with partners to host a series of virtual jobs fairs, with thousands of views and impressions to give people a head start. But this effort cannot be left up to us. The Government must do everything in their power to create support systems for those who become unemployed as well as new opportunities. We need to see the Government working with employers, unions and local government, with a joint approach across government to maximise job creation and comprehensive support to tackle unemployment.

[Matt Rodda]

Does my hon. Friend agree that there is a role for private sector landlords in this, working with the Government and local authorities? I have been quite taken aback by the approach of a number of commercial landlords who put extreme pressure on tenants at this time, which I believe is quite wrong.

[Taiwo Owatemi]

I agree with my hon. Friend; that is completely wrong.

No business or individual should be left behind. Every livelihood deserves the chance to survive this crisis. Otherwise, who knows what impact it will cause? Where there are job losses, will the Government commit to retraining those workers, whether old or young, through a future jobs fund so that they can harness the jobs that will come out of the crisis? Those jobs should be part of a new, prosperous economy, and they should be green, well-paid and sustainable. We do not need a race to the bottom, the slashing of safety regulations or the austere measures that we have seen in the past 10 years. The Chancellor said that he would do “whatever it takes” and frankly that is the least that my constituents in Coventry North West deserve. We have seen 18 years of growth and millions of jobs lost in two short months. To restore dignity, to save jobs and create new ones and to stimulate this much-needed recovery, bold progressive action is required. Nothing less will do.

Loan Charge 2019: Sir Amyas Morse Review

Matt Rodda Excerpts

Thursday 19th March 2020 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to speak in this important debate. I will be brief and focus my remarks on two or three key areas that have been partially mentioned by some colleagues earlier. I thank the right hon. Member for Haltemprice and Howden (Mr Davis) for securing this debate and commend the work of the all-party parliamentary group and the cross-party nature of the debate today, which is helpful.

First and foremost, I put on record my fundamental support for a fair tax system. We obviously need to raise taxes to pay for vital public services, but that system clearly has to be fair. I think that the points made by a number of colleagues across the House on the matter are absolutely right, and I am grateful for the emerging consensus on the issue.

Secondly, I highlight the importance of the issue of the loan charge. The fact that this debate is taking place today in a period of sustained national crisis—indeed, it is a crisis for the whole world—is interesting, and it does underline the importance of this issue. I was approached about it a number of times during the general election, like many Members here today, and I have had constituents contact me about it. There is deep unease in the community, certainly in the constituency I represent, which is made up of Reading itself and the neighbouring town of Woodley, about the problem, which affects many people. I noted the figure of 50,000 people across the country. It certainly seems to be higher than that, given the proportion of people in my community who seem to be affected.

I draw Members’ attention to the effects on a typical town of its type, as Reading is, and specific industries where I believe there may be a particular likelihood of the problem arising. In the area I represent, a very large number of people are self-employed and have microbusinesses or work as consultants in one form or another. That is spread across a huge range of sectors, from traditional small businesses through to people with trades or IT skills and public servants. It is a vast range of people.

I want to add to the point made by my hon. Friend the Member for Ealing Central and Acton (Dr Huq) about locums in public services affected by the issue. I know of cases where a number of people in public services have to set up as a company and work on that basis, perhaps as a supply teacher or in some other interim role in public services. I should declare an interest, as I have certainly operated in that way in the past as an interim public servant. In the more distant past, I was a full-time civil servant. Locums are a well-known type of employment and a subset of those people—not all of them—are affected by the loan charge.

As well as my area, many other nearby parts of the country have similarly high levels of employment in IT. There is a particular prevalence of self-employment among IT professionals. If we think of the great IT businesses in this country—companies such as Microsoft, Oracle or Vodafone—many of them are headquartered in the Thames valley or west London. Many of those large businesses rely heavily on subcontractors who have often no choice but to set up a limited company that then serves the much larger organisation.

In my area, many people who are affected by the loan charge are in the IT industry. There are whole WhatsApp groups of people in parts of the IT industry that are buzzing with concern about the matter. As has been said, the issue ranges back over many years and there is deep uncertainty and pressure on these workers and their small businesses and, indeed, their families, because of this whole problem. As I said earlier, we are debating this issue at a time of national crisis. Imagine how that concern overlays itself on top of the existing pressures that we talked about earlier today and yesterday. Quite rightly, we in this House have discussed and raised with the Government the importance of supporting small businesses at this time of national crisis.

Imagine how it would feel to be a small business person or an IT subcontractor who was the breadwinner in their family. Their source of income could dry up because of this crisis, which is not of their making and that they have not anticipated. At the same time, they face the long-standing problem of the loan charge looming over them, with the very grave measures that other colleagues have mentioned today. Some of the examples that have been mentioned are truly dreadful. Imagine that pressure. That is what we need to do today—to think about what it feels like for somebody who is a small business person or self-employed. I know the Minister is dutiful and well-read and, as was said earlier, he has written a biography of Adam Smith. I hope that he will look again at the evidence clearly and thoroughly and in the context of the current situation affecting small businesses.

Tax Avoidance and Evasion

Matt Rodda Excerpts

Tuesday 25th February 2020 Commons Chamber

[Matt Western]

My right hon. Friend makes a very good point. With just those four businesses, they absolutely dominate the sector. I do fear that there is a cartel operating, and the sector should be broken up. I think that would be in everyone’s interests. Those firms—or certainly their UK arms—account, according to an HMRC report, for half of all known avoidance schemes. That is the scale of the problem.

This is coming at a massive cost—a loss to UK plc —that is estimated at between £35 billion and £90 billion. There is understandable public anger out there, because that money could be buying significant investments in our communities, whatever people may want to invest it in. That could be 40 new hospitals, two new aircraft carriers or 40 Typhoon jets—all for £35 billion, with some cash to spare. If the £90 billion takes their fancy, we could electrify the Chiltern line serving Warwick and Leamington, and then put money into free school meals for all. Instead, we have an attitude where we increasingly see flat regressive taxes, such as the rise in VAT in 2010 from 17.5% to 20% and the growing expansion of council tax, again hurting hard-pressed households.

[Matt Rodda (Reading East) (Lab)]

My hon. Friend is making some excellent points about the inequities in the system. I feel that is particularly relevant given that only recently did average incomes catch up with those before the great crash of 2008. Does he agree that there has been a total and utter lack of leadership from the Government on this matter?

[Matt Western]

Yes, there has. As I have said, the former Chancellor showed the wrong sort of leadership when he basically said about taxes, “It is almost entirely down to you whether you choose to pay it or not.” Tax really is the responsibility of us all: it is a corporate responsibility and it is a personal responsibility.

Decades ago, when I was working in the corporate world, I remember the introduction of a thing called corporate social responsibility. It was a real buzz term, and we started making donations to charities, volunteering and so on. Of course, that is important and it is wonderful that big business does that, but we are seeing this almost replace tax responsibility. Rather than paying their way and supporting education, infrastructure and healthcare for society, we are seeing organisations perhaps decorate a community centre or go out on litter picks and the like.

Turning to personal tax avoidance, I have mentioned the former Chancellor, and there are schemes such as the film production scheme. Businesses have increasingly paid out dividends, substituting them for actual salary, because of course there is lower tax to be paid on dividends and it is advantageous to employees or directors to get a much larger proportion of their income through dividends. All we need to do is go to some of the ports around Europe, and see that the yachts in the berths there are all flying flags of convenience—and they are all UK flags or those of UK overseas territories and Crown dependencies. There are no German flags, dare I say it, or Dutch flags or French flags. Either we are renowned for our sailing, or a lot of Germans or those of other nationalities like flying the British flag because— I do not know—they sail better or something like that. The same could be said about personal jets and where they are domiciled.

Let me just say that tax is good: it is a contribution to a better society, and we must think about what that society looks like. We should look at the words of Elizabeth Warren. Let me just paraphrase her; I will not do her justice. She basically said, “Why is it that people should simply want to avoid paying tax and then be able to afford to buy a Ferrari? There is no point in owning a Ferrari, if they have not got a good road to drive it on.” People should pay their tax and get a Jaguar Land Rover or Aston Martin—obviously, because they are much better products anyway—and drive on a beautiful smooth road that has been paid for out of their taxes. That is the sort of society we should be looking for, not people avoiding tax, living behind gated communities, owning Lamborghinis, Ferraris or it whatever may be, and having roads full of potholes.

The Government need to turn up on this issue: they need to go Davos and places like that, and make the case for why international intervention and regulation need to be introduced. I agree with what the hon. Member for Amber Valley (Nigel Mills) said earlier about full disclosure. We need to see that across the entire business sector, whether for small businesses or large businesses. When we talk about consumers being given an informed choice, I think the consumer should know whether Caffè Nero is not paying any tax at all, or whether Costa or one of the others is paying tax, and they can then make an informed decision. They can choose, saying, “Well, maybe I want to buy my coffee from that place”, or whatever the product or service may be.

I want to close on the issue of the tech titans. I say this to them: Amazon, you have your warehouses, and your warehouses need security. They need protection from fire; who is going to show up? Warwickshire fire and rescue service has had significant cuts, and it needs the money out of taxation to pay and provide for the fire and rescue services.

Economy and Jobs

Matt Rodda Excerpts

Monday 20th January 2020 Commons Chamber

[Ruth Jones (Newport West) (Lab)]

I commend the hon. Member for Dover (Mrs Elphicke) on her maiden speech and thank her for the measured and thought-provoking way she delivered it. I also thank her for explaining to us the familial links between Members for her constituency—that was very helpful.

I am delighted to be able to speak in this important debate on jobs and the economy. It is my privilege to represent Newport West, my home and birthplace. I am grateful for the opportunity to serve all the people who live there, and I will work hard in the many days, months and years ahead to ensure that their voices are heard in the House.

Over my life to date, the nature of employment has changed fundamentally, as has the type, scope and size of industry in my constituency. The closure of the coal mines and steel works saw a massive and destructive loss of jobs in south Wales, but Newport West is now home to groundbreaking companies such as Airbus, the Rutherford Cancer Centre and the Catapult compound semiconductor cluster, which is the only one of its kind in the UK. As such, I welcome the Government’s commitment to making the UK a global science superpower and investing in research and development. I encourage any relevant Minister to come to Newport West: I will take them to visit those businesses so that Members can see the industry-leading work taking place in my constituency. Importantly, it will give Ministers the chance to learn about these success stories and inspire them to replicate Newport West’s success throughout the UK.

Furthermore, I welcome the Government’s move to ensure that investment in industries such as computing are prioritised. Additionally, if investment in hubs in world-leading universities is promised, I recommend that the Minister visit the University of South Wales campus in my constituency to see the fantastic work being done in the field of cyber-security. It is a hub where businesses and university students learn from each other, providing cyber-security services to companies worldwide.

The Government propose in the Queen’s Speech to bring forward an employment Bill, and claim that they will protect and enhance workers’ rights.

[Matt Rodda (Reading East) (Lab)]

My hon. Friend is making an outstanding speech about the importance of so many things. Over the weekend, the Chancellor made some controversial comments about the possible lack of alignment between Britain and the rest of the EU after Brexit. Does my hon. Friend—like me, the Confederation of British Industry and many major British trade unions—have deep concerns about the Chancellor’s rather rash statement?

[Ruth Jones]

Absolutely. I thank my hon. Friend for intervening because he made an excellent point. We well know that workers’ rights are not a priority for the Government. In fact, from what has been outlined so far, it seems they will attempt to proceed with no input at all from the trade union movement. I regret that and urge the Government to think again. I hope Ministers will remember that those people whose job is in a workplace that is represented by a trade union work in a safer, better-paid workplace. I encourage the Government to keep the trade unions involved in any plans they may make to change the current settlement on workers’ rights. It would be beneficial not only to the Government but to people in Scotland, Wales, Northern Ireland and England if the Tories worked with the trade union movement rather than against it.

The Government cannot be trusted to improve the settlement for workers on their own. They celebrate high employment rates at every opportunity, but in reality the figures mask high levels of people in insecure work, under- employed and on low pay. In other words, there are thousands of people on zero-hours contracts working a few hours a week, unable to make ends meet and often having to get a second or even a third job. As in-work poverty soars, the reliance on food banks continues to increase. At the same time, many people are losing their homes. In-work poverty is the moral disgrace of our age. Around one in five people in working households now live in poverty. That is the legacy of 10 years of Tory austerity.

We now live in an increasingly unequal society. In my constituency of Newport West, the average household wage in Marshfield is double the average household wage in Pill—and those areas are only six miles apart. We must make every effort to level up wages and create a more equal society. The Government can improve the working lives of millions of people in the UK if they take sustainable and effective action on the living wage, and they must take enforcement action against those businesses that refuse to pay it.

Just days ago, a number of my constituents lost their jobs at Liberty Steel in Newport. Many others in Stocksbridge, Rotherham and Brinsworth had the same devastating news. Only a few weeks before that, the Orb steelworks in Newport was mothballed. It was the only plant producing electrical steel in the whole UK. This is madness. I know that the thoughts and sympathies of the whole House will be with the people who find themselves out of work and facing an uncertain future. There is never a good time for someone to lose their job, but the situation is particularly hard coming so soon after Christmas. With those job losses in mind, I urge the Government finally to take real action to protect and defend the UK steel industry. Steel remains vital to the ongoing security and independence of the UK manufacturing sector, while providing good jobs for thousands throughout the country. I welcome the Government’s commitment to the jobs of the future, but I encourage those on the Treasury Bench to remember the jobs of today.

This is the second Queen’s Speech debate in my time in the House—and I have been here for only nine months. As I approach the first anniversary of my time in the House, I pledge to hold the Government to account for the promises they made to my constituents and people right across the country. I accept that the Government have won a majority, but they must now deliver on their pre-election promises. I will be here day in, day out to ensure that they do.

The Economy

Matt Rodda Excerpts

Thursday 24th October 2019 Commons Chamber

[Geraint Davies]

rose—

[Matt Rodda (Reading East) (Lab)]

rose—

[Sajid Javid]

I will give way when I have made some progress.

We have turned the economy and the public finances around, and I am not prepared at all to throw away that hard work. The Queen’s Speech puts fiscal responsibility at the heart of our plans, with a clear commitment to ensuring that we keep control of borrowing and debt. I will set out our detailed plans in the Budget.

--- Later in debate ---

[Sajid Javid]

I will make some progress and then I will give way.

I want to contrast our approach with that of Labour Front Benchers, who have demanded higher borrowing and higher taxes at every Budget and Queen’s Speech for the past 40-odd years. Their tax rises would hit hard-working families, and they will not be clear on that. Their tax avoidance plans contain a £2.5 billion mistake, and that is according to the Institute for Fiscal Studies. Their spending promises would cost far more than they say. Their manifesto contained £1 trillion of spending commitments. For the shadow Chancellor’s benefit, let me say that that is £1,000 billion of spending commitments. They have not costed expensive promises such as renationalisation, and they have made dozens of unfunded promises since the last election. And you know what is even worse than that? The shadow Chancellor has admitted that the huge borrowing plans that he has are just “the first step”—he means the first step back to the road of ruin.

[Matt Rodda]

I wonder whether the Chancellor remembers the following statement, which is from his own website; it is still there today:

“The only thing leaving the EU guarantees is a lost decade for British business”.

Perhaps he would like to comment on that.

[Sajid Javid]

I will comment on that because, probably like the hon. Gentleman, I campaigned for remain, and I lost the argument; but I am a democrat, unlike the hon. Gentleman.

HMRC Impact Analysis: Customs

Matt Rodda Excerpts

Tuesday 8th October 2019 Commons Chamber

[Jesse Norman]

The hon. Lady is absolutely right that any job losses are deeply regrettable, and I am sure she will be delighted that, in aggregate, this country has proven to be astonishingly adept at creating good new jobs over the past 10 years. With this impact assessment, I think I am right in saying that the detail is not available that allows for a constituency-by-constituency or even regional assessment, which is why it has been done in aggregate, based on the number of declarations that are expected and the cost per declaration. Of course, it may be possible for other entities to take the number of businesses that were expected to fill out declarations and produce impact assessments for the specific areas that they are concerned about.

[Matt Rodda (Reading East) (Lab)]

It is quite clear from the Minister’s answers that the Government are willing to place enormous additional burdens on business. Given everything that he has written and said in the past, how can he possibly justify that approach?

[Jesse Norman]

I gently remind the hon. Gentleman that the burdens that he claims will be placed by this can not only be mitigated by voting for a deal but will be as nothing compared with the burdens that will be imposed on the UK economy by a Labour Government dedicated to nationalising, without full compensation, a swathe of industries and expropriating a large number of people by transferring property into the hands of employees. I think those things will impose much greater costs on the economy than anything that has been contemplated today.

High Speed Rail (West Midlands - Crewe) Bill (Second sitting)

Matt Rodda Excerpts

Committee stage & Committee Debate: 2nd sitting: House of Commons
Tuesday 25th June 2019 Public Bill Committees

[The Chair]

Welcome back to the Committee. I remind colleagues to turn electronic devices to silent.

New Clause 1

Report on trees and woodland habitats

‘(1) The Secretary of State must prepare a report on—

(a) the likely effects of the scheduled works on trees and woodland habitats;

(b) steps to be taken to minimise or mitigate those effects.

(2) The report must include specific consideration of—

(a) ancient trees, including those on construction sites which will not be designated for long term railway use;

(b) tree felling, with particular reference to birdlife nesting and breeding seasons;

(c) wildlife habitat corridors; and

(d) woodland, including ancient woodland.

(3) The report must be laid before Parliament within one year of this Act being passed.’—(Matt Rodda.)

Brought up, and read the First time.

[Matt Rodda (Reading East) (Lab)]

I beg to move, That the clause be read a Second time.

It is a pleasure to serve under your chairmanship, Mr Davies. The new clauses proposes that the Secretary of State must prepare a report on the likely effects of the scheduled works on trees and woodland habitats and steps to be taken to minimise or mitigate those effects. The report must include specific consideration of ancient trees, including those on construction sites—

[The Chair]

Order. It might be helpful to the hon. Gentleman to know that although he is very welcome to read out the new clause, he does not need to do so as it is on the amendment paper. If he wishes to do so to make his point, he is more than welcome to.

[Matt Rodda]

Thank you for your advice, Mr Davies. If I may, I will finish reading the new clause, but I will not read out the subsequent new clauses to the Committee, for the sake of brevity.

The report must include specific consideration of tree felling, with particular reference to bird nesting and breeding seasons; of wildlife habitat corridors; and of woodland, including ancient woodland. The report must be laid before Parliament within one year of the Act being passed.

--- Later in debate ---

[The Chair]

I appreciate that the hon. Member for Reading East is stepping in for his colleague, and valiantly so. The idea is to make your speech when moving the new clause, but all is not lost—if he wants to speak to the new clause now, he is very welcome to do so.

[Matt Rodda]

That is very generous and gracious of you, Mr Davies. I am sorry if I misunderstood the process while I am standing in for my colleague.

I appreciate that the Minister has taken some time to come back with the Government’s response, but it is worth highlighting some of those points in a little more detail because of the importance of wildlife. As we discussed this morning, it would be somewhat ironic if a positive and pro-environmental measure such as high-speed rail was inadvertently to damage habitats and the Government were unable to respond fully to those concerns.

From the previous stages of HS2, a number of issues have caused serious concern to residents, communities and the public more widely. Although the Bill itself clearly shows a response to some of those elements, it is not as comprehensive as it needs to be. That is why I am seeking a reassessment by the Government through the new clauses.

New clause 1 would require the Government to produce a report on how any actions by HS2 will impact on the natural environment—wildlife, birds and trees. The report could be laid before the Select Committee considering petitions on the potential threats to the natural environment. We have scrutinised the Bill to see whether there is a lack of clarity, and we have tabled the new clause to address that.

By bringing forth a report to be laid before Parliament, the Government would ensure greater focus and scrutiny of the HS2 project. The new clause calls for the report to be laid within a year of the passage of the Bill, which also means there is time for the Government to develop a greater scrutiny role over HS2 Ltd, which is obviously a separate company, and to ensure that it changes its practices and is prepared to give an answer to the House if hon. Members decide that it should do so.

Labour Members have serious concern about the impact of HS2 on the natural environment, as we have discussed a number of times, including this morning, whether on birds nesting, animals burrowing, or indeed the trees themselves. I know from previous debates and questions, which have been asked by Members from all parties, that this issue has been reported on a number of times. However, the approach, behaviour and actions of HS2 Ltd to date have demonstrated why it was crucial to table the new clause.

There have also been reports that HS2 Ltd is using the practice of netting bushes—it has been widely covered in the media in recent months—which clearly can cause real distress to animals, and especially birds, which breach the netting but can then become trapped. We call for the practice to cease. The company should instead seek to remove bushes and hedgerows at a time of year when birds are not nesting—this obviously relates to existing legislation and good practice. There is plenty of time in advance of these major works to reschedule them, to be far more sensitive to the rhythms of nature and, as a result, to do more on this front.

Likewise, it has been drawn to our attention that trees have been felled in the nesting season during the course of the programme. That is completely inappropriate, as it risks eggs, and indeed whole nests, falling to the ground. It is therefore vital that there are further restrictions on HS2, such that it schedules this work outside the nesting season. Although the Bill highlights that HS2 Ltd should follow the best examples of working with nature, including management of trees, in the first phase of the project the company has failed to live up to that. There are examples of felling taking place in the nesting season, and this practice should be halted immediately for phase 1 of the route. However, we also believe that the practice should change for phases 2a and 2b.

We believe that the Government have a responsibility to ensure that they take a more environmentally friendly approach to the project, especially in areas where the project is failing. The Government state that they will simply mitigate habitat loss with the plantation of additional new habitat in future, but that does not go far enough. On a number of occasions the Government have pledged to leave the environment better than they found it, as we all know. However, with destructive and unnecessary actions, such as netting and felling, especially at the wrong time of year, the Government’s pledge is obviously just empty rhetoric.

Labour Members know that conservation is very important to the public. It has an impact on farming and on ensuring that the richness of nature can be enjoyed by all, and we are strongly committed to improving the environment. In that regard, we believe that the Government have to be far more accountable for the actions of HS2 Ltd, especially as the company is at the early stages of a very large programme that will affect significant parts of the country.

By ensuring that the Government must produce a report, the new clause also seeks to provide the Government with a responsibility to set out how they will mitigate the actions that are being taken. I will provide a few examples. Although not common practice, can trees be excavated and moved, especially with a focus on the 27 veteran trees that line the phase 2a route? What wildlife corridors will be built during the construction of HS2 to allow small mammals, other animals and birds to move away from the construction zone? The Bill is silent on that, yet we know that wildlife, whether birds or animals, needs clear corridors that support the wider existence of species. To disrupt those corridors without taking steps to provide alternatives is negligent, yet the Bill is silent on that.

By calling for the Government to be accountable to Parliament on these issues, we will build confidence among MPs and residents that the Government are undertaking due diligence on these important factors, which, I am afraid to say, they have failed to demonstrate to date. It is worth adding that if our new clause is agreed, HS2 Ltd would be more accountable to the House, which I am sure we would all wish to see.

Section (2)(a) focuses on ancient woodlands, especially the points that will not form the actual HS2 route but will be used during construction, as we discussed this morning. The new clause calls for additional consideration to be made to ensure that trees are protected in these areas, since there is more latitude to avoid felling so many trees and removing so much of the natural environment. We believe that the Government, with HS2 Ltd, should ensure that any construction route and the site itself minimises the destruction of natural habitats and, where alternatives can be found, they must be found, including reducing the size of the construction sites to an absolute minimum.

I am sure that the Minister will understand Labour’s concerns, which have also been stressed during the petitions stage of the Bill. Although I know that different tunnelling arrangements were scrutinised at the petitions stage—Labour would seriously consider this, especially around Whitmore—we understand that the majority on the Select Committee determined that the costs would be prohibitive and therefore there is already a far greater cost to our natural environment to be paid. This was agreed at petitions stage.

Labour would approach this project differently. However, I am sure that the Minister will understand why I have brought forward the new clause and why we believe, sadly, that she is not doing enough to mitigate the harm that the Government’s approach to HS2 will cause to the natural environment.

[Ms Ghani]

I accept the hon. Gentleman’s comments about ensuring that we have complete confidence in the project along its entire route. I agree that wildlife is important, as are trees and ancient trees. However, all his points are covered by the environmental statement, which, at 11,000 pages, is incredibly extensive. That is why I do not believe that we need another layer of reporting on a statement that is already out there. The environmental statement has been scrutinised independently and by the Select Committee, which has made its own decisions.

We have committed in our response to the Select Committee’s third special report that, in order to protect birds, we will provide bird diverters on new power lines near Parkgate, working with the West Midlands Bird Club. We continue to work with the environmental roundtable on these important issues. The Bill has taken into account the effect on wildlife, especially rare and protected species. A balance has to be struck between taking individual landowner’s property and providing land for mitigation.

I remind the hon. Gentleman that all the issues he has raised are already in the 11,000-page document. For that reason, I believe that he should withdraw the new clause.

[Matt Rodda]

I am grateful to the Minister for giving such a detailed reply and for the work on the bird diverters, which is a step forward. I appreciate that some work has been done on this already. However, on the points that we have made and on the new clause, I would like to press this to a vote.

Question put, That the clause be read a Second time.

--- Later in debate ---

Brought up, and read the First time.

[Matt Rodda]

I beg to move, That the clause be read a Second time.

Opposition Members believe that there has been a serious modal shift in how we use freight in developments. We continually hear the Government talk about modal shift in transport, but there is no mention in the Bill of how to ensure that. For Committee members who are not familiar with this transport terminology, modal shift means a shift from one mode of transport to another, such as from road to rail. Labour does not stand in the way of development but seeks to mitigate its impact, which is why we tabled the new clause.

Rail can be the main driver of change. In the light of all construction sites’ heavy dependency on heavy goods vehicles, and from discussions that my colleagues and I have had with Network Rail and others, we know that rail freight can be better utilised, and it is important to demonstrate that on such an important infrastructure project as HS2. Rail lines will be laid, and it is important, wherever possible throughout the Bill, to utilise rail for the movement of aggregates and materials. We are talking about a major rail infrastructure project, so the logic that rail should supply aggregates and minerals should certainly be considered. There will clearly be no lines at the commencement of the project, but over time the opportunity will arise.

Likewise, it is more sustainable for HS2 to source and move aggregates and material as far as possible by rail, and to use HGVs only for the final part of a journey. Equally, sourcing materials and aggregates as close as possible to the development site would also reduce the expected carbon emissions. Such an approach would also reduce congestion and lessen the impact on air pollution in the local vicinity. That demonstrates good practice in what can be achieved on such a major infrastructure project and can form the basis for a change of approach by the Government when undertaking such major works across the country.

Likewise, materials should remain on the site, or as close as possible to the site, to minimise transport movements. Laying a report before Parliament within a year of the Bill’s passage would provide ample opportunity for HS2 Ltd to work with the Government to establish better construction practices.

[Ms Ghani]

We recognise the impact that numerous road traffic movements have on local communities. As such, the promoter has proposed numerous highway works and temporary construction haul routes to alleviate that number. The Secretary of State has also given commitments relating to the implementation of these alleviating works and to restricting the use of certain roads for HGV movements. Equally, the strategies for reusing materials to reduce the volume of aggregate necessary to be moved are under continual review. The promoter published its borrow pit review, which outlines the severe reduction in necessary vehicle movements that backfilling and reusing of spoil takes off the road network.

The new clause is not needed. The environmental statement assumes and allows for the delivery of materials, plant and other equipment to construction compounds on the traditional rail network. It contains the working assumption that:

“Wherever reasonably practicable, the rail network will be used in preference to public roads.”

All traffic modelling has included that assumption. In this way, the environmental statement reports to Parliament our preference for transporting the goods, as outlined in the new clause, by rail rather than road. We have already assessed that there is a benefit in transporting all this material by rail, rather than road, and will seek to do that as far as possible. As with the previous new clause, virtually nothing will have changed between the publication of the environmental information and one year post Royal Assent. That is precisely what we have done on the borrow pits of phase 2a, to reduce the distance that aggregates have to travel. We have also put forward a proposed line of route to further reduce lorry movements. The new clause is therefore not needed and should be withdrawn.

[Matt Rodda]

I am grateful to the Minister for highlighting that commitment on the sourcing of aggregates. That is a helpful step forward, given the significant volumes of aggregates that are needed. The Government have once again talked a good game, but we would prefer to have further scrutiny of this important issue. I therefore wish to press the new clause to a vote.

Question put, That the clause be read a Second time.

--- Later in debate ---

Brought up, and read the First time.

[Matt Rodda]

I beg to move, That the clause be read a Second time.

I thank my hon. Friends the Members for Ipswich (Sandy Martin) and for East Lothian (Martin Whitfield), who attended the petitions hearings of the Select Committee on the High Speed Rail (West Midlands - Crewe) Bill as members of that Committee, and who shared with our shadow Transport team their concerns about how this route will affect active travel. As shadow Minister with responsibility for active travel—walking and cycling—I share those concerns, which is why we tabled the new clause.

It is inevitable that major construction projects will cause an element of disruption to journeys, and inconvenience to cyclists and, to an even greater extent, walkers, but diversions can have a real impact. If a car has to divert for a few miles to cross the HS2 construction site or the final HS2 line, that will add to its journey and its carbon footprint. If a cyclist does the same, it could add considerable time to their journey. It is worse for pedestrians; it could result in hours of extra time.

We tabled the new clause because we need to encourage active travel much more in this country; as was said, the Government are not meeting their targets for it. They have far more to do in this area. The new clause asks the Government to consider the factors further, and to report to Parliament within a year of the Bill’s passing into law. Subsection (2) highlights the need to have regard to not only routes that traverse the rail line, but those that run adjacent to it, which could also be affected. The Government missed a significant opportunity in failing to create a cycle path along the HS2 route. In many continental countries, major roads and rail lines have cycle paths parallel to them; once there is access to the land, it is an obvious choice to make.

Cycle routes are increasingly popular; they are the most direct route, away from car and lorry use. A segregated north-south cycle route adjacent to the line, but obviously some distance away from the line’s boundary, would have been an important legacy of the HS2 project. There would have been very little extra cost, in the light of the scale of this enormous construction project. Again, we ask the Government to show more concern for walkers and cyclists by considering the issue and reporting back to Parliament within a year of the enactment of the Bill.

[Ms Ghani]

Contrary to what the new clause suggests, I do not agree that we have not looked into or provided for non-motorised use. Let me give the hon. Gentleman some examples. On the particular part of HS2 that we are here to scrutinise, we have offered assurances to Cycling UK that some footpaths will be made more suitable for people who cycle or ride horses, so that local users of those public rights of way can seek, through the appropriate local planning process, to have those upgraded routes redesigned.

Yesterday, in response to the Transport Committee’s third special report on the Bill, we committed to working with Colwich parish council as it seeks funding from the recently announced £21 million Sustrans fund, and from funds that I announced last year. Phase 2a’s own £5 million community engagement fund and business and local economy fund are also available to improve towpaths, which will improve local walking and cycling facilities. I also announced the £6.5 million road safety fund, which provides even more money to support local initiatives for cycling and walking and for other non-motorised users.

Once again, I refer back to the environmental statement, because it covers most of the points raised. The report focuses on the impact of construction operations on cycling and walking. We have looked into the potential disruption in great detail in every area where it will occur along the phase 2a route. We have reported the likely effects and the proposed steps to mitigate those effects in the environmental statement. I refer the hon. Gentleman in particular to the community area report in that statement, which goes into detail on each part of the route. In that assessment, we included the likely effects on other non-motorised users of public rights of ways, such as horse riders, as is appropriate for works in a rural area, and steps for their mitigation.

There is a report, mitigations are taking place and there is engagement with local communities. The new clause is not needed and should be withdrawn.

[Matt Rodda]

I appreciate the Minister coming back on this issue. However, yet again the scale of ambition is very limited, and there is arguably far too little mitigation. A cycle path along the length of the HS2 route would have been a huge enhancement for the country at a time when we are failing to meet our cycling and walking targets; not having that shows a lack of ambition. I will press the new clause to a vote.

Question put, That the clause be read a Second time.

--- Later in debate ---

Brought up, and read the First time.

[Matt Rodda]

I beg to move, That the clause be read a Second time.

Having listened to the concerns of the public, Labour proposes new clause 4. It was evident at the petitions stage of the Bill that along sections of the route HS2 would cause great disruption for residents, but there has been deep dissatisfaction with the way that HS2 Ltd has handled compensation. There have rightly been changes in practice to ensure that landowners and freeholders receive compensation for the loss of their homes, but the issue has not been completely resolved. The Government have provided compensation for individuals, but the new clause addresses where they have fallen short. Its purpose is to ensure that compensation is paid to tenants such as tenant farmers, who often live in close proximity to their place of work, and who will now have responsibility for finding new accommodation, and are more than likely to face longer journey times to work, and residents in urban settings who will lose their home as a result of HS2.

We cannot ignore the fact that across the UK, there are many private rental properties, which many people make their home for a significant time; like social housing tenants, they often plan for it to remain their home for their whole life. There are tenants in other forms of accommodation, too, such as houseboats, which cannot necessarily move, permanent caravans and mobile home parks. Some of those who rent comprise the poorest in our society. Uprooting them and causing them to move—possibly to a property demanding higher rent—could result in greater inconvenience and expenditure. It could mean moving costs and longer travel times. Clearly, HS2 must pay an appropriate amount of compensation for the disruption that it causes these residents.

Labour is concerned that this issue has been overlooked by the Government. We therefore believe that it is necessary for the Government to produce a report on the impact that the HS2 programme has on those who rent different forms of accommodation, and to come up with a compensation scheme that provides reasonable mitigation for the costs and disruption that the programme has caused.

[Ms Ghani]

The hon. Gentleman raises a very important point, and it is vital that HS2 engages fully with residents and deals with them swiftly, clearly and with humility. As this is such a sensitive issue, and no doubt many people will focus on it, I will take a moment or two to respond.

Most types of tenants affected by the scheme are already provided for under current compensation law. Where they are not, the Government can use flexible, non-statutory arrangements to provide support. Where the law is silent, the Government have committed to taking forward appropriate measures in discussion with stakeholders and residents, should it be necessary to do so. Matters of tenant compensation are complex, because they depend on an individual’s tenancy arrangements. However, I will endeavour to summarise briefly the support that is available. I will outline the legal position, the comprehensive non-statutory schemes that the Government have developed to assist property owners who are affected by HS2, and the work that the Government are taking forward following parliamentary scrutiny of high-speed rail hybrid Bills.

The elements of compensation payable are set by the Ministry of Housing, Communities and Local Government, and apply to all Government-led infrastructure projects, including HS2. The HS2 scheme applies these arrangements, which have been debated, agreed and set by Parliament, together with the vast body of case law on the subject. Compensation is based on the principle of financial equivalence: the person affected should be financially compensated with no less and no more than what they have lost. Compensation due to tenants is therefore commensurate with their interests and the land they occupy; for example, if a private tenant property is subject to compulsory purchase, the tenant should be eligible for various heads of claim that comprise the market value of the leasehold interest in the land. They might also be eligible for a home loss payment for the loss of their home, and for reasonable moving costs.

The key part of the non-statutory arrangements is a consideration of atypical properties and special circumstances. These are established, funded arrangements that apply to tenants as well as property owners. I am pleased to say that in response to concerns raised by the phase 2a Commons Committee, the Government have committed to improving guidance on those atypical arrangements and raising awareness and accessibility, so that we can continue to provide the right support at the right time to people who need to use them. The Government have also been charged with developing a non-statutory prolonged disruption scheme in response to the phase 1 Lords Committee’s concerns on this subject. The Government intend shortly to release details of the scheme, which will assist residents who have different types of tenure, and who are affected by significant construction noise across the HS2 route.

Finally, in response to concerns raised by the phase 2a Commons Committee, the Government have committed to taking forward three strands of work on compensation for owners of houseboats and other types of moveable home. The first is to explore whether there is a case for bringing houseboats into line with caravans on statutory home loss payment entitlement. The second is to establish whether there is a case for introducing regulations to compensate houseboat residents who are affected by significant noise disturbance from rail works. The third is to explore the potential use of non-statutory compensation measures in advance of legislation being introduced, should the case for change be established. The Government are committed to taking forward appropriate measures in discussion with stakeholders and affected residents.

In conclusion, I believe the Government’s established non-statutory arrangements, which are as broad and inclusive as possible, are an appropriate and flexible tool to support all types of residents affected by the HS2 scheme. That is why I believe the proposed new clause is unnecessary, and I would urge the hon. Gentleman to withdraw it.

[Matt Rodda]

I thank the Minister for her response, and for mentioning the legal principles of the compensation scheme. As she said, however, the Government’s response is still a work in progress. For that reason, and because of the serious public concern about rented properties, I will press the new clause to a vote.

Question put, That the clause be read a Second time.

--- Later in debate ---

Brought up, and read the First time.

[Matt Rodda]

I beg to move, That the clause be read a Second time.

The new clause follows an inquiry at the petitions stage of the Bill that there was no remit to consider at that stage. Hon. Members will have heard that the kind of tracking used can have a significant impact on cost, including long-term maintenance costs, and the noise of the railway. It also has an impact on the speed at which trains travel. As the route has been singled out as providing high-speed rail travel, it is right that the Government work with engineers on the issue.

Although using slabs on the rail line is believed to be more expensive initially, it could prove much more efficient in the long term than using sleepers because it is low-maintenance. Across Europe and beyond, modern railway infrastructure projects are changing, and it is common for slab track to be preferred to sleepers. This short new clause asks the Government to assess the cost, efficiency and impact of that approach.

[Ms Ghani]

I do not see the need for the new clause. Again, the environmental statement assesses a reasonable worst case for the impacts of construction and operation of the railway. That includes so-called slab track, and track laid on ballast, or sleeper track. To comply with the environmental minimum requirements, the type of track used must be within the reasonable worst-case impact assessed in the environmental statement.

HS2 is one of the most scrutinised pieces of legislation to pass through the House—it even has its own Select Committee—and there are several other opportunities throughout the year for an inquiry to take place. There is constant reporting to Parliament and justifications for why decisions are taken. Reporting to Parliament obviously matters, and it takes place, but constant discussions about cost add another layer of financial burden and bureaucracy when the reports are already in place. The new clause is not needed and should be withdrawn.

[Matt Rodda]

I appreciate the Minister’s response. We will not press the new clause to a vote, so I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 6

Quarterly reports on environmental impact, costs and progress

‘(1) The Secretary of State must publish quarterly reports on the scheduled works throughout the period in which those works take place.

(2) Each such report must contain an assessment of—

(a) environmental impact;

(b) costs; and

(c) progress compared to the scheduled timetable.

(3) The first such report must be laid before Parliament within the period ending three months after the day the scheduled works commence.

(4) Each subsequent report must be laid before Parliament within three months of the publication of the last report under this section.’—(Matt Rodda.)

Brought up, and read the First time.

[Matt Rodda]

I beg to move, That the clause be read a Second time.

There is clear concern about the cost of the HS2 programme, as has been discussed in Committee and elsewhere. Clause 61 shows that there is little accountability for the spiralling costs of the project, and as a result, they are continually rising. It is important that the Government be accountable for that. Likewise, it is important that they be accountable for HS2’s impact on the environment. As discussed in the debate on new clause 1, we want to ensure that all infrastructure projects minimise carbon use and protect our natural habitats.

There must also be accountability for ensuring that the project is delivered on time. To achieve that, we believe that there must be regular reporting to Parliament by the Government, to enable Parliament to scrutinise the Executive on these important matters. We believe that quarterly reports provide the right frequency of reporting, and that they would enable all parts of Parliament to fulfil their role, including the Public Accounts Committee, the Transport Committee and the House. Reporting would also provide vital data for external bodies, such as the National Audit Office, and would allow all to follow the impact the project is having, and to ensure that the project is brought under control. I shall take each of those in turn.

Labour has already stated that it would take a different approach to the development of infrastructure across the rail network, and to projects such as HS2, which will be embedded in the wider enhancement programme to ensure proper planning in line with all enhancement projects, and to deliver a more connected and reliable railway. For example, we would have commenced HS2 in the north, and then ensured connectivity to the north and south, reaching further afield to deliver modal shift from cars, heavy goods vehicles and internal flights.

Labour would also have ensured that HS2 was fully embedded in the ambitions for HS3, or Crossrail for the north, or Northern Powerhouse Rail—whichever title is now being used. East-west connectivity in the north of England, connecting major cities such as Manchester, Sheffield and Leeds to other major towns and cities, is vital to building a strong northern economy. Labour has identified how integration of HS2 and HS3 could result in greater efficiencies, not only on cost but on journey times. That would impact largely in phase 2b, but in the light of the widespread concern about cost, and at a time when the austerity programme has had a significant impact on communities in the midlands and the north, it is vital that the Government be more accountable.

Clause 61 is loosely worded, and more or less invites a blank-cheque approach to the project. That is quite staggering. So much investment, especially in rail, is needed across the transport system, so taking that approach without providing for further scrutiny by Parliament is wrong for a project that has attracted so much public interest. After all, as the Conservative party likes to remind us, we are talking about taxpayers’ hard-earned money being spent on a major project. Labour has argued that ensuring that we all have good rail connectivity to the north, which will provide a vital opportunity to rebalance the economy and ensure that northern economies prosper, is the way forward. That is why we are supporting this initiative. We want it to enhance rail capacity, journey times and connectivity. However, as we have seen, this whole project must be brought under greater control and greater accountability. The Government should set out the expenditure clearly in quarterly reports and justify the costs.

We understand that when a project is in development for longer, inflationary factors can come into play, not least at this time of instability for our economy. However, it is right that the Government should have to justify the figures publicly. As it is possible that a future Prime Minister might question going ahead with HS2, it is important to demonstrate better governance of the finances of this project. We therefore call on the Government to present a transparent, quarterly report to Parliament that can be subject to scrutiny, so that the public can understand the financing of the project and the Government can be fully held to account.

I turn to the environmental impact, which is of great concern. As a result of Labour’s motion, Parliament has declared a climate emergency. These are not just words; this is a call to action to ensure immediately that no part of Government adds to the loss of biodiversity, adds to the amount of carbon in the atmosphere, or makes sustained changes to the environment. Labour is pleased with the mitigation proposals under HS2, but when our planet is under such intense threat, and when transport emissions account for 29% of all UK emissions, there is an obligation on the Government—not least the Department for Transport—to respond proactively by reducing the impact on the environment.

The Minister will know the growing concerns that HS2 is prompting about our climate and environment. Parliament should use quarterly reports to spur the Minister on to draw on global best practice, and to identify the true cost of the environmental impact. We recognise that in the long term, with modal shift and planting, HS2 can be mitigated. However, the crisis is now, so there needs to be greater scrutiny now.

--- Later in debate ---

[Ms Ghani]

There will be a reduced journey time on high-speed rail, which will open up capacity on existing railway lines. It will also shift people from roads or flights to rail, which is incredibly important. We will continue to invest north of London. This is just one way of ensuring that the journey becomes far more integrated, but I know that the hon. Gentleman would like it to become even faster. Considering that it has taken us so long to get high-speed rail up and running, who knows what will come in the next iteration? However, I do take his point.

Let me return to the important point about skills that the hon. Member for Reading East raised. At present, there are 9,000 people working on high-speed rail, with more than 2,000 businesses already involved in the chain. The hon. Gentleman raised an important point about how we will reach the 30,000 people who will be required to build the railway; that is why we have two colleges set up to improve the technical and academic skills of people working on the railway line, from design to construction.

Having made all those arguments, I really do not understand the need for new clause 6. The issue of quarterly reporting has been raised, but HS2 Ltd already provides annual reports to Parliament, as required by the DFT-HS2 Ltd framework document. I believe that that level of reporting is proportionate and sufficient. The project is bound not to exceed the likely significant environmental effects assessed for the scheme, as reported to Parliament. As part of HS2 Ltd’s sustainability policy, an environmental management system will be developed that will set out the procedure to plan and monitor compliance with environmental legislation; the record-keeping arrangements, including reports to my Department; and the procedures that will be put in place to monitor compliance with the Bill’s environmental provisions.

There is so much scrutiny and accountability that separate quarterly reporting would be excessive and burdensome to the Department. There are already reports out there; if the 11,000-page report were read fully, I believe it would answer a number of the questions that have been raised so far. I do not believe that there is any need for the new clause. It should be withdrawn.

[Matt Rodda]

It is interesting to listen to a Minister trying to justify providing a lack of information to Parliament. For a programme of this scale—it is utterly huge and encompasses not only the Department for Transport, but many other parts of the public sector and a large supply chain—internal reports will obviously be produced much more regularly than the annual report that the Minister described. Given the scale of the programme, the significant investment of public money and the need for the Executive to be held to account by Parliament so that the public can see that their money is being spent well, surely it is only common sense to make the reporting public on a quarterly basis.

Separate evidence will be available internally. I am sure that people at HS2 will produce thousands of Gantt charts and other forms of reporting for internal and departmental use; having worked as a civil servant on much smaller programmes, I am sure that that information is there. Surely it is incumbent on the Government to provide Parliament with a much more regular update so that it can properly scrutinise spending such large amounts of public money.

On the point about the environment, I am grateful for the Minister’s lovely commercial for rail travel, which I fully support. We absolutely value investment in high-speed rail, which the Labour party sees as a huge step forward for the country, but the Minister only partially addressed the specific point about the amount of carbon produced during the construction stages. Will she write to the shadow Rail Minister, my hon. Friend the Member for York Central (Rachael Maskell), to provide more detailed points about the specifics of the carbon produced during the construction period? The use of heavy goods vehicles—particularly if road freight is used, as we discussed earlier—and of aggregates and other materials can be carbon intensive. It would be wise to consider ways of reducing that carbon impact as the programme is rolled forward.

On the final point about skills, we fully support the investment in the two colleges. That is an important part of developing a skilled workforce in the areas the line crosses. However, we ask the Government to carry out more forward planning and to consider this as an even greater opportunity to develop a highly skilled workforce for the future, given the scale of the programme and the geographical spread of the line, particularly as it runs through many relatively disadvantaged communities, whether they be isolated rural communities with limited local employment or urban city centres. On that basis, we call for a Division on this new clause.

Question put, That the clause be read a Second time.

--- Later in debate ---

Brought up, and read the First time.

[Matt Rodda]

I beg to move, That the clause be read a Second time.

Already it is clear that residents and businesses along the route of HS2, and those affected by the wider construction of the line, need to be involved in this programme, not just with the passing of the Bill but beyond that, not least because the project is being funded by public money and is causing disruption to many communities.

We call on the Government to put in place regulations to ensure, through a statutory route, that HS2 and the Government continue to engage with the public and, through that engagement, respond to concerns raised. Nobody holds a monopoly on wisdom. Through strong community engagement, the project can develop in the interests of all concerned. The tweaks made by petitioners to the hybrid Bill Committee show the power of such consultation.

As the programme moves from the planning to the delivery phase, unseen consequences may, and probably will, occur. Good public engagement is vital to ensure that there is a response to those issues, whether they are environmental issues—for example, noise, dust and pollutants—or relate to congestion. Communities must have a right to engage in public meetings and to engage with proposed changes. Even with the best planned projects, we know that engagement is vital.

It is important to have a direct complaints process, to which HS2 must respond, for the duration of the building of phase 2a and all subsequent phases. Above all, the public need to have confidence in the development of HS2, but there is concern that that has been lacking to date. This must change, and the new clause would enable the Government to ensure that that happens through the establishment of secondary legislation.

[Ms Ghani]

The hon. Gentleman raised some important points. I agree with him that we need strong community engagement and good public engagement, and that the response has to be flexible and responsive.

Let me remind the hon. Gentleman what HS2 is actually doing. This was one of the trickiest parts of my brief when I took over as Minister for HS2, because I wanted to ensure that HS2’s community engagement was on point, especially as further and deeper construction work takes place. The commitment to public engagement is evidenced by the community engagement strategy and the biannual community engagement progress report. For example, in 2018 more than 36,000 people attended over 2,200 engagement activities, including meetings, drop-ins and events across the whole of the HS2 route. The 24/7 help desk dealt with 26,697 inquiries, and nine out of 10 complaints were dealt with within 20 working days or fewer. I constantly put pressure on HS2 Ltd to ensure that it is working as effectively and with as much humility as possible.

Further, as a Minister I have secured meetings in Parliament between Members and HS2, sometimes with constituents. The hon. Gentleman may not be aware of this, so I put on the record that there is an independent construction commissioner and residents’ commissioner. The residents’ commissioner also gave evidence to the Select Committee. A substantial amount of public engagement is already taking place. That must continue and be of good quality. There must be speedy responses to the public’s concerns, in a way that they can understand and digest, given the level of engagement already taking place and the fact that the Secretary of State has made a number of commitments to continue to engage with all stakeholders. All of that information can be found on the HS2 website. It is published online, as is the register of undertakings and assurances.

Of course, we should never take anything for granted and HS2 Ltd should continue to work as closely as possible with the communities that require further assurance or changes in lifestyle. It needs to work with them as efficiently as it can. Considering all the work that is already taking place and will take place, I believe that the new clause is unnecessary and should be withdrawn.

[Matt Rodda]

I am grateful to the Minister for running through the existing engagement strategy and, indeed, the volume of correspondence and engagement that has taken place. However, it is somewhat disappointing that the Government are still not pursuing this through regulations and are not putting it on a statutory footing. We will therefore press the new clause to a vote.

Question put, That the clause be read a Second time.

High Speed Rail (West Midlands - Crewe) Bill (First sitting)

Matt Rodda Excerpts

Committee stage & Committee Debate: 1st sitting: House of Commons
Tuesday 25th June 2019 Public Bill Committees

[Ms Ghani]

The clause authorises the nominated undertaker to construct and maintain the works specified in schedule 1 for the construction of phase 2a of High Speed 2 and other incidental works. It is a standard clause found in all works Bills. Phase 2a sits between two larger phases of the HS2 project, so the clause makes provision to accommodate emerging design works for phase 1 at Handsacre junction and phase 2b at Crewe.

Schedule 1 sets out the construction requirements for the scheduled works and provides permitted limits of deviation from the siting of works as shown on the relevant plans. It also provides a description of the scheduled works. The permitted deviation limits have precedence in other railway Acts, most recently the High Speed Rail (London - West Midlands) Act 2017. The limits of the deviation reflect the fact that the design of phase 2a is, by necessity, at an outline stage—detailed design will come later—so some flexibility is essential. Any variation within the limits of deviation is controlled by the environmental minimum requirements.

[Matt Rodda (Reading East) (Lab)]

Labour supports High Speed 2, as it will address the severe capacity constraints on our rail network and improve connections between cities in the midlands and the north. Any responsible Government must contend with the fact that commuter and freight services are being squeezed off the network due to lack of capacity. HS2 is vital for unblocking the railway and creating additional capacity.

The UK is off track to meet its emission reduction targets under the Climate Change Act 2008. Transport is the most emitting sector of the economy and the worst performing sector with regard to emissions—indeed, emissions have risen since 2010. HS2 will provide an alternative to domestic flying and will tackle that important issue. It will also allow for more reliable rail services.

It is vital that we get HS2 right. It is a tremendous opportunity to improve connectivity and we support it as part of a package of delivering transformative investment in our rail system.

[Ms Ghani]

I welcome the hon. Gentleman’s comments. We are debating a particular section of the line, and I welcome his support.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Schedule 1 agreed to.

Clause 2

Further provision about works

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

[Ms Ghani]

Clause 3 introduces schedules 4 and 5, which allow the nominated undertaker to carry out works to and otherwise affect highways. That includes creating new or improving existing highways and highway accesses, and stopping up roads. It also requires the nominated undertaker to obtain the consent of Highways England before carrying out works to roads for which that body is responsible, for example motorways and trunk roads.

[Matt Rodda]

Developers can be overly dependent on road transport, which is ironic in a major rail project. I hope that the Minister will agree that as much freight as possible should be delivered by rail so as to minimise road use and the inevitable disruption to local communities. What steps have the Government taken to address that important issue?

[Ms Ghani]

The hon. Gentleman makes a valid point. We want the project to be as clean and green as possible, and freight capacity is a major issue that we are investigating to ensure that as much freight can be moved by rail as possible. I hope that provides him with the confidence he needs.

Question put and agreed to.

Clause 3 accordingly ordered to stand part of the Bill.

Schedules 4 and 5 agreed to.

Clause 4

Power to acquire land compulsorily

Question proposed, That the clause stand part of the Bill.

[Ms Ghani]

Clause 4 provides the Secretary of State with the power to compulsorily acquire land within the limits shown in the Bill, where such land is required for phase 2a. Subsection (2) introduces schedule 6, which describes some of the land to be acquired and the particular purposes for which it may be acquired. It is not land required for the scheduled works; it is land required for ancillary works, including environmental mitigation, utility diversions and borrow pits. The clause further provides that the normal legislative regime relating to compulsory acquisition is to apply, subject to the modification set out in schedule 7. The purpose of the modifications is to streamline the land acquisition process, as Parliament will already have given approval to the Bill.

[Matt Rodda]

Compulsory purchases and compensation have been an issue of contention during this process. For phase 1 it was initially decided that residents of urban areas would receive less compensation that those in rural areas—a decision that was eventually overturned. It is important that such issues are dealt with fairly, but it appears that tenants who are adversely affected by the scheduled works are not being treated fairly as there is no scheme to compensate them. Those who rent are already disadvantaged compared with those who own their own properties, and I believe that much more can and should be done. I will return to that issue when we discuss the new clauses.

[Ms Ghani]

The hon. Gentleman raises an important point. The purchase of land is essential to the completion of the proposed scheme. People directly and especially affected by the Bill have had the opportunity to petition the House and will have another opportunity to do so in the other place.

The project endeavours to use land as effectively and efficiently as possible. There are a number of places where compensation claims can be heard and settled by agreement, whereas disputes can be dealt with by the upper tribunal or by other factors that HS2 has put in place to deal with local communities and local people. Even though the project provides some disruption along the line, we want to ensure that we are doing the right thing by the communities we are working with.

Question put and agreed to.

Clause 4 accordingly ordered to stand part of the Bill.

Schedules 6 and 7 agreed to.

Clause 5

Acquisition of rights and imposition of restrictive covenants

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

[Ms Ghani]

Clause 8 allows the nominated undertaker to use any subsoil beneath the highway within the Bill limits which is required for the purpose of construction and maintenance of works authorised by the Bill, without the need formally to acquire the subsoil or any interest in it. This does not apply to cellars, vaults, archways or other structures that form part of a building fronting on to a highway.

Subsections (3) and (4) introduce schedule 12, which lists the highway allowed within the Bill limits where the powers to take subsoil or compulsorily acquire interest in the land cannot be exercised except in the case of street works, as per subsection (6). Subsection (5) provides that, in the case of highways in the land specified in the table in paragraph 1 of schedule 11, only subsoil that is more than nine metres beneath the level of the surface may be taken.

[Matt Rodda]

Obviously, layers of subsoil are important. There is a link to the depletion of high-quality soils. We need to preserve good soil for farming. Some farmers in this important agricultural area might have spent time improving the quality of soil on their land. We would like this issue to be addressed so that any movement of soil is managed with great care and caution.

[Ms Ghani]

The hon. Gentleman raises an important point. I already attend meetings with the National Farmers Union and the Country Land and Business Association. We will of course continue to work with them, and he will know that we try to reduce any environmental impact when building this railway line.

Question put and agreed to.

Clause 8 accordingly ordered to stand part of the Bill.

Schedule 12 agreed to.

Clause 9

Termination of power to acquire land

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

[Ms Ghani]

Clause 14 allows the nominated undertaker to use any road specified in the table in schedule 8, which is land for which only rights may be compulsorily acquired or over which restrictive covenants may be imposed, so as to obtain a right of passage for the purpose of phase 2a. This power ends five years after phase 2a is brought into general use.

[Matt Rodda]

The clause will require ongoing construction work and will cause significant disruption to road networks in certain areas. It is important that disturbance is kept to a minimum. The use of roads is likely to result in unplanned road congestion, which can lead to delays for motorists, disrupt public transport and interfere with walking and cycling routes. It also has the potential to disrupt many people’s travel patterns, with the increase in roadside emissions as well. It is not possible to effectively predict the impact of the disruption to road networks, travel patterns and air quality in advance, which is why Labour thinks it is important that there should be ongoing public engagement to ensure that impacts are mitigated.

[Ms Ghani]

The hon. Gentleman raises another important point—the issue of ongoing engagement with Highways England, local authorities, those who drive, cycle and walk, and also Members of Parliament. That is the case at the moment. HS2 Ltd has provisions in place to ensure that it works with local communities and local council management on local travel plans. It will have to continue to do so through the construction phase.

Question put and agreed to.

Clause 14 accordingly ordered to stand part of the Bill.

Clause 15

Enforcement of restrictions on land use

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

[Ms Ghani]

The clause provides deemed planning permission under part III of the Town and Country Planning Act 1990 for carrying out the works authorised by the Bill. Deemed planning permission is granted only for ancillary works in the Bill where the impact of such work is assessed in the environment statement, or where the development is exempt within the meaning of the environmental impact assessment regulations. Any work outside those parameters would require separate planning permission. Subsection (3) introduces schedule 17, which sets out the conditions of deemed planning permission. That includes the requirement for approval from the relevant local authorities on specific aspects of design and construction to ensure that local impacts are appropriately mitigated in the area—for example, the movement of lorries to and from construction sites.

[Matt Rodda]

This is an extremely important issue as it deals with important environmental matters. The schedule addresses salutary points and deals with the conditions of deemed planning permission, as the Minister mentioned. We are concerned about the environmental matters covered, including the impact of dust, soil and road traffic. We are also concerned about how material is taken away from the site, vehicle movements and the impact on historic sites, which we will deal with later. I will return to these matters later today.

[Ms Ghani]

The hon. Gentleman once again raises valid points about how we remove material and mitigate any impact on the neighbouring communities, which is what HS2 is doing with its local engagement, as well as by working with local authorities. Planning permission provided by clause 17 is necessary to the construction of the proposed scheme and it provides more clarity to those directly and specially affected by the Bill.

Question put and agreed to.

Clause 17 accordingly ordered to stand part of the Bill.

Schedule 17 agreed to.

Clause 18

Time limit on deemed planning permission

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

It is always a cause of dismay when our built heritage is affected by new development. The provisions in the clause are very wide ranging. The Minister could consider better safeguards to further ensure that our country’s built heritage is protected during the construction of this vital national infrastructure project. In particular, perhaps a presumption against demolition could be considered where practical. Indeed, the dismantling and relocation of items of built heritage, where practical, might be presumed a better solution. If that were not possible for the entire building, certainly key features of interest could be dismantled, preserved, salvaged or relocated where appropriate.

On the inspection and observation of works, schedule 18 merely indicates that there will be an opportunity for English Heritage to inspect the works, but there is no obligation on it to do so. That could be tightened by the inclusion of an obligation to ensure that all heritage assets affected are inspected and recorded, including by laser scanning to provide a highly accurate 3D model of any assets that are destroyed as a result of the project. That would be a far better way to safeguard the built heritage of our country as a result of the project.

[Matt Rodda]

I concur with my hon. Friend the Member for Glasgow North East. I know he has a deep personal commitment to this issue, as he represents a constituency in which a wonderful historic building suffered serious damage.

We take this issue seriously, and I urge the Government to take great care and look at some specific pieces of heritage that might be affected by the developments, such as the historic mileposts, the 1867 rail building at the important historic rail town of Crewe, and the grade II listed farm houses in the line of the route. It would be ironic if wonderful railway architecture from previous generations was damaged or completely destroyed by the building of HS2. It would be so much better if whatever possible could be preserved for the benefit of future generations. We hope the Government will look further into that and consider possible mitigation.

[Ms Ghani]

Once again, important points have been raised that were also made about HS2 and, no doubt, made to the Select Committee. One hon. Member has a particular issue within their constituency, which no doubt we will hear about again today.

Similar provisions were included in the Crossrail Act 2008 and the HS2 phase 1 Act of 2017. All works must be done in accordance with the environmental minimum requirements, and the normal requirements and appropriate consents are always obtained when dealing with listed buildings.

The Secretary of State will have to work with local authorities and Historic England. The Select Committee considered the scheme’s effect on specific historical sites, and the scheme is designed to seek to avoid impacts on culture or heritage. We recognise the importance of such assets to communities locally and nationally. Even though we are trying to build an up-to-date, modern railway line, since I became HS2 Minister, I have been concerned to ensure that we honour historical sites close by and try to mitigate any impacts on them. I am sure that HS2 Ltd will continue to do that.

Question put and agreed to.

Clause 21 accordingly ordered to stand part of the Bill.

Schedules 18 and 19 agreed to.

Clause 22

Burial grounds

Question proposed, That the clause stand part of the Bill.

[Ms Ghani]

The clause provides for the disapplication of laws concerning burial grounds and human remains. It also introduces schedule 20, which outlines the process that the nominated undertaker must follow in relation to the removal and reburial or cremation of human remains, and the removal and replacement of monuments to the deceased.

The clause disapplies ecclesiastical law for the purpose of constructing phase 2a. It also disapplies the law relating to burial grounds if the remains and any monument to the deceased have been dealt with in accordance with schedule 20. Similar provisions were included in the 2008 and 2017 Acts.

[Matt Rodda]

This is obviously a very sensitive aspect of the Bill. We urge the Government to take great care in this matter and, in particular, to allow for more time and effort to be taken to contact the families of deceased people. In this modern age, with well-established genealogy and records of church burials and other burials, we hope more effort could be made to contact the families whose loved ones’ remains are being moved, because this is a sensitive issue for families.

[Ms Ghani]

The hon. Gentleman makes an important point. If he has had time to visit Euston, he will have seen the huge amount of work being undertaken to deal with remains, which are all being removed by hand. It is a long process, as it should be. We have not yet identified any known burial grounds that could be affected, but in the course of construction, we could discover previously unknown sites. If that occurs, the clause and its related schedule provide for the appropriate processes to manage the removal and reburial or cremation of human remains, and the removal and replacement of monuments to the deceased.

Where remains are less than 100 years old, schedule 20 requires a notice to be published in the local newspaper and displayed at the burial ground. Relatives have the right to remove and re-inter or cremate the remains at the expense of the nominated undertaker, who must pay reasonable costs. I hope that provides some assurance to the hon. Gentleman that we are taking the issue seriously.

Question put and agreed to.

Clause 22 accordingly ordered to stand part of the Bill.

Schedule 20 agreed to.

--- Later in debate ---

[Ms Ghani]

Clause 43 introduces schedule 32, which protects the interests of statutory undertakers and other bodies who may be affected by other provisions of the Bill. The provisions are similar to those in the Crossrail Act 2008, the Channel Tunnel Rail Link Act 1996 and the High Speed Rail (London - West Midlands) Act 2017. The protective provisions of the schedule cover highways and traffic; electricity, gas, water and sewerage undertakers; electronic communications code networks; land drainage, flood defence, water resources and fisheries; and the Canal & River Trust.

[Matt Rodda]

We believe that far more work needs to be carried out by the Government over a range of infrastructure projects to minimise the impact of development of sites, and not least to re-explore the issue of rail enhancement programmes and how rail should be used, wherever possible, to shift goods. That is explored in one of our new clauses.

We know that congestion causes pollution, and we know about its effect on communities and the environment. The Government are willing to carry out some monitoring work, but we would like them to do much more. Are they planning to monitor pollution in detail, and to publish new journey times? Projects such as HS2 have an impact not only on those working on the site, but on the wider population in the area. There should, as has been said, be further work. The Government need to respond to the dilemma, not address it superficially.

Paragraph 13 of schedule 32 deals with issues that I want to highlight concerning pedestrians, cyclists and other modes of transport, and how they cross the line. The schedule is not comprehensive enough, and we have drafted a new clause on the subject. We believe that pedestrians and cyclists should be at the top of the Government’s considerations in infrastructure projects, as the Government have targets for increasing walking and cycling. It would be somewhat ironic if an infrastructure project designed to improve transport withheld other aspects of it. The disruption to this group of highway users should be minimal. Bridges and tunnels can provide crucial access to those who need it, and can bring only greater connectivity to those who will be cut off by the HS2 line. The Government need to take a much closer look at this issue, and to address concerns that we will cover in a new clause.

Paragraph 14 of the schedule deals with the salient issue of highways repairs. We are becoming a pothole nation, as we have mentioned on other occasions in the House. Whether on major highways or smaller lanes, it is vital that proper repairs are made as damage occurs. Obviously, there will be damage in a major infrastructure project during which heavy goods vehicles will thunder down local roads. We want the Government to address that issue, which is of great importance to communities.

[Ms Ghani]

The hon. Gentleman raises important points, but most of them are detailed extensively in the environmental statement. My Department and HS2 Ltd have engaged, and will continue to engage, with all those who are worried about their local communities, the environment, congestion and traffic movement. They will all have the opportunity to petition this House and the other place. The clause is necessary to minimise disruption and allow the delivery of the proposed scheme, protects the bodies involved, and enables them to continue to carry out their duties.

Freight has been raised a number of times; I look forward to responding to the new clause on that issue. In anticipation, let me I point out that we are doing what we can to ensure that freight will support the movement of construction materials, whether aggregates or rail cement, during the construction of the railway.

Question put and agreed to.

Clause 43 accordingly ordered to stand part of the Bill.

Schedule 32 agreed to.

--- Later in debate ---

[Ms Ghani]

Clause 48 enables the Secretary of State to ensure that, following the construction of the scheme, he may impose conditions on land released where such land contains environmental mitigation for HS2. This is to ensure the maintenance of mitigation measures; upgrades to the mitigation, if required; and prohibition on uses of the land where such uses would detrimentally affect the measures in place. The clause binds successors in title into any covenant agreed with previous landowners. The Secretary of State or an authorised person may enforce the agreement.

[Matt Rodda]

This is an important clause, particularly the mitigating provision in subsection (2), which proposes planting trees and shrubs to replace habitat where work has been carried out. I cannot stress enough how important it is to get this right. We need to ensure that biodiversity needs are addressed with the right solutions. The proposal to replace trees with native species is positive, but we need to ensure that those species fit with the local environment, that there is proper biodiversity and that habitats are protected in line with local ecology.

As well as planting trees and shrubs, we need to ensure that they are in the right places so that, for example, they mitigate flooding and enhance the natural environment. New plantations should be open to the public where possible and we should seek to create environments that encourage biodiversity, so features such as natural watercourses should be used to their advantage.

The end of the route passes through the salt marshes south of Crewe. That is an unusual habitat and a special site in the country, so that should be taken into account in the preservation of the natural environment.

[Ms Ghani]

The hon. Gentleman raises an important point to consider when undertaking such a large construction project. We are working with all stakeholders he would hope we would work with, including the Woodland Trust, to ensure that we not only replace trees but plant them in the most appropriate places, and to mitigate as much as possible the impact on the environment. The substantial environmental statement covered most of those issues.

Question put and agreed to.

Clause 48 accordingly ordered to stand part of the Bill.

Clause 49

Power to apply Act to further high speed rail works

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

[Ms Ghani]

This is the standard clause that appears in Bills and provides for the expenditure of public money. It simply provides that any expenditure incurred by the Secretary of State under the Bill shall be paid out of money provided by Parliament.

[Matt Rodda]

The Minister has addressed some of these issues, but it is vital to get this right. HS2 will allow for more reliable rail services. The current Secretary of State has plunged punctuality on the railways to a new depth—a 13-year low—and we must get on top of that issue. This is a tremendous opportunity to improve connectivity, and it is vital to get urban-to-urban connectivity within the country. We are committed to delivering a transformative package of investment across the rail network in the north of England, backed by a commitment of at least £10 billion to transform connections between major northern cities. The Government have touted similar plans, sometimes described as Northern Powerhouse Rail or HS3, but there is no commitment to the funding—it is interesting that the Minister used that point to address the financial side of the programme.

Any incoming Labour Government would rescope the project to seriously reduce costs and provide far better integration. Furthermore, there is concern over the accountability and the ability of our colleagues in this House to scrutinise HS2, ensure that costs are kept under control, and address the issue of public trust. We believe there is the potential to reduce the cost of HS2 by using a number of other technical measures—I will not address those in detail now—and the operation of HS2 is also contentious. Billions of pounds of taxpayers’ money is being invested in HS2, and it is right that revenues go back to the Exchequer and not into the hands of private train operating companies. HS2 should be run in the public sector as a public service. I will return to some of those points later in relation to the new clauses.

The Government have been somewhat inept in handling another specific aspect. HS2 has been rightly criticised for sometimes failing to provide value for public money. For example, the Public Accounts Committee described an unauthorised redundancy bill of £1.76 million as

“a shocking waste of taxpayers’ money”,

blaming it on

“weak internal processes at HS2”,

and there have been other concerns about the project.

[Mr Dhesi]

Does my hon. Friend agree that the issue of spiralling costs concerns many of us up and down the country? If we do not get this right, it will have a huge impact on how services are delivered in our local communities in terms of housing, education, hospitals and so forth. Does he agree that the Government need to get a grip on the costs of HS2?

[Matt Rodda]

I thank my hon. Friend for his intervention; it is nice to have a colleague from Berkshire Labour intervening on me. The Government need to be responsible with these very large sums of public money, and it is deeply disappointing that they have fallen well short at times.

The words of the Public Accounts Committee are worth considering:

“a shocking waste of taxpayers’ money”

is a severe condemnation of the Government. There have been many other allegations about HS2’s potentially not being well planned or managed. Ensuring that HS2 secures value for money is essential if we are to retain public support for the project. There should be no blank cheque.

[Mr Sweeney]

My hon. Friend makes an important point about the general principles of HS2 and the need to ensure that the project delivers maximum economic benefit to the nation, including industrial skills and job opportunities. When we look at how the Treasury assesses such projects, we see that very little consideration is given to how much value is created in the wider economy, particularly through industrial development. In my own constituency, the Caledonian railway works in Springburn faces closure. Would it not have been possible to utilise the supply chain opportunities of HS2 to ensure that highly skilled jobs in the railway industry are supported and maximised through the project’s supply chain?

[Matt Rodda]

I thank my hon. Friend for his intervention and particularly for pointing out the importance of the supply chain. I will add that the value of apprenticeships, degree qualifications and other opportunities for young people linked to the programme should be first and foremost in the Government’s mind when they come to look at the supply chain.

Returning briefly to clause 61, essentially it says that there is potential for uncapped Government expenditure, leaving open the possibility of no upper limit on the costs of HS2. Will the Minister update the Committee on the latest cost estimate, and does she believe that the project will be delivered at cost?

[Ms Ghani]

I remind the hon. Gentleman that we are here to scrutinise the Bill line by line, but I welcome the opportunity to remind everybody of the importance of HS2. Of course, it is a crucial project, linking eight of our 10 greatest cities. Supportive comments have been made recently by everybody involved, including the Mayors of Manchester and Liverpool and the leader of Leeds City Council, who have been watching very closely. They are northern, locally elected leaders who are waiting for HS2 to roll through their communities, because they fully understand not only that, at its peak, it will provide work for 30,000 people—most of those jobs being outside London—but its value for money and how it will smash the north-south divide, encourage our communities to come even closer together and force investment in rail infrastructure in the north of England for more than 100 years. This is a key infrastructure, social and economic project for our country.