Oral Answers to Questions

Nick Fletcher Excerpts

Tuesday 14th November 2023 Commons Chamber

[Gareth Davies]

We are incredibly sympathetic to the right hon. Gentleman’s constituents, who have suffered a very difficult time. That is why we introduced the energy price guarantee, which will remain in place until March 2024 as a safety net. We continue to engage with lots of stakeholders and we are very happy to include the ones he suggests.

[Nick Fletcher (Don Valley) (Con)]

16. What steps his Department is taking to support homeowners with their mortgages.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

21. What recent assessment he has made of the potential impact of changes in mortgage interest rates over the course of this Parliament on household incomes.

[The Economic Secretary to the Treasury (Bim Afolami)]

The path to lower mortgage rates, as everybody in this House knows, is through lower inflation, which is why the Prime Minister and the Chancellor made halving inflation one of our five priorities for this year. The latest Bank of England forecast shows that we are on track for that. In June, lenders representing more than 90% of the mortgage market agreed to our new mortgage charter, which includes new flexibilities to help customers manage their repayments, backed up by UK Finance’s advertising campaign encouraging anyone worried about their repayments to contact their lender.

[Nick Fletcher]

Does the Minister agree that the best way we can help the next generation of homeowners is to increase the supply of homes, bring back the help to buy ISA and stop the 35-year mortgage shared-ownership models, which only increase house prices?

[Bim Afolami]

I thank my hon. Friend for his question. On his first point, we are increasing the number of homes and we are optimistic that we will reach our target of delivering 1 million new homes over this Parliament. Secondly, the help to buy ISA was closed to new accounts in 2019, but existing holders can continue to save into their accounts. On his third point about stopping 35-year mortgages, it is important to have choice in the market and for people to make those choices for themselves. As a Government we are committed to supporting people doing just that.

Mortgage Market

Nick Fletcher Excerpts

Tuesday 13th June 2023 Commons Chamber

[Andrew Griffith]

I talked about the focus on the level of mortgage arrears, which are at an historic level. My Treasury colleagues and I are tracking them extremely closely. We have talked to all the lenders and the Chancellor has brought them all in to ensure that they have responsible policies in place so that repossessions are a last resort.

[Nick Fletcher (Don Valley) (Con)]

Does the Minister agree that although the Opposition like to blame the Government for this situation, the real problem lies with covid and the Bank of England? The Bank kept on putting money into the economy when the world had stopped producing everything, which meant that there was more money and fewer goods, and so inflation was obviously going to rise. Does he also agree that even though we are in this situation where the Bank is trying to do what it is doing and the Government are doing everything they can, continually putting up interest rates puts people in a really difficult position? Does he believe that we should see what the interest rate increases have done so far in the economy before the Bank of England keeps putting them up month on month?

[Andrew Griffith]

My hon. Friend speaks wisely and regularly on behalf of his constituents. I will not follow him quite so far as to comment on what the Bank of England should do next.

Just in response to the previous question, Mr Speaker, the level of arrears in residential mortgages, as reported by the FCA, was 0.8% compared with 3.3% back in 2009.

Oral Answers to Questions

Nick Fletcher Excerpts

Tuesday 20th December 2022 Commons Chamber

[John Glen]

I recognise the significant concerns about the delivery of that service. I am in ongoing conversations with the Secretary of State for Transport to look at what more can be done.

[Nick Fletcher (Don Valley) (Con)]

The people of Doncaster will be eternally grateful for the help that they received through the pandemic and for what they are receiving through the cost of living crisis, but Doncaster still needs a new hospital. Although money is tight, will the Chancellor meet me with the Secretary of State for Health and Social Care to see how we can achieve that goal in the new year?

[John Glen]

I am more than happy to meet my hon. Friend again to discuss the matter in detail. As I mentioned in my reply to my right hon. Friend the Member for Basingstoke (Dame Maria Miller), the situation with the capital programmes is under urgent review across the country. I hope that further announcements will be made in the new year, but I will certainly meet my hon. Friend anyway.

Autumn Statement Resolutions

Nick Fletcher Excerpts

Monday 21st November 2022 Commons Chamber

[Karin Smyth (Bristol South) (Lab)]

We have had a lost decade, and now we have another lost decade in sight. It is particularly hard for young people starting out in the world of work: they have experienced a decline in school and FE funding and now they face low wages, a recession, high rents and a Government bereft of ideas and hope to encourage them into the future.

The stats are staggering. I have not heard any Conservative Member this afternoon address the stat that I find most astonishing, which is that the average family will be about £10,000 a year worse off than comparable families across the OECD. That is the reason for the normalisation of food banks, children going hungry at school and cramped housing, with no prospect of the things that bring joy to individuals and families—things like meals out, day trips or holidays, which also drive our local economies. It is now predicted that there will be a further 7% fall in household incomes over the next two years, coupled with the cost of the Government’s £4,000 family tax burden.

The Government have not chosen to help make us resilient at any time in the last 12 years. I know that we have had the pandemic and the war in Ukraine, of course, but all of this was apparent before then. They could have chosen to make different choices last week, but they chose not to. They chose to protect non-doms; they chose to give the banks a tax cut; they chose, proudly, to keep the VAT exemption on private schools; and crucially, they offered no plan for growth and no plan to deliver a more productive workforce, to build for prosperity and to help wealth creation.

I am one of the few Members of Parliament to have attended a further education college, and I have spoken about that over the years. It is staggering how, over the last 12 years, the Tories have consistently shown their disdain for skills and opportunity by not using this resource at the heart of our communities. In its 2021 annual report, the Institute for Fiscal Studies said:

“Further education colleges and sixth forms have seen the largest falls in per-pupil funding of any sector of the education system since 2010-11. Funding per student aged 16-18 in further education and sixth-form colleges fell by 14% in real terms between 2010-11 and 2019-20”.

It might be thought that the Government would want to help people back into the productive workforce, but adult education has been particularly badly hit. Again, the Institute for Fiscal Studies found that total spending on adult education and apprenticeships will be 25% lower in 2024-25 compared with 2010-11. Looking at classroom-based learning on its own, the IFS found that spending has plummeted by 50% over 10 years—and they wonder why we have a low-skills, unproductive workforce.

I once co-chaired the APPG on apprenticeships with the right hon. Member for Chichester (Gillian Keegan), who is now Secretary of State for Education. Every year, I brought together employers, Bristol City Council, apprenticeship providers and young people at an annual apprenticeship fair, and I will continue to do so. It is the best way to support young people into a productive career, and I still strongly believe in the ladder of opportunity, but significant issues remain unresolved on the levy and the wider supply chain to get people into the apprenticeships that are needed. The Government need to sort it out.

[Nick Fletcher (Don Valley) (Con)]

This Government have done a huge amount for apprenticeships. I should know, having been a businessman for the past 30 years and having employed more than 60 apprentices—I refer the House to my entry in the Register of Members’ Financial Interests—and much of that has been with the help of a Conservative Government who are putting a further £2.3 billion into education this year and next. It is fairly disingenuous to say what the hon. Member is saying.

[Karin Smyth]

I quoted the IFS and, if I had longer, I would quote more on what has happened to apprenticeships. I met Airbus recently, and several small businesses from my constituency, and I did not hear any of them say that it is working particularly well. We are not getting the promised benefit for small employers from the levy on large employers. We have gone backwards, and the numbers show how far backwards we have gone.

My hon. Friend the Member for Bristol East (Kerry McCarthy) asked the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for North East Derbyshire (Lee Rowley), at oral questions whether he will visit Bristol to talk to our local council and better understand our budget shortfall and its impact. I am not sure whether the Minister accepted, but I back my hon. Friend’s invitation. Of course, Bristol City Council has considered efficiencies. Every council has, which is why Conservative council leaders are making the same plea as Labour council leaders.

Many of the issues faced by our communities are in the Government’s gift, including their decision to freeze local housing allowance rates. My constituent has a teenage son and daughter aged 12, so she is entitled to a three-bedroom property. She works but is on a low income, so she receives universal credit. She was paying £1,050 a month in rent, but her landlord increased it to £1,350 a month in January 2022. Local housing allowance means she can receive £950 a month for the housing element of universal credit. She was £100 a month short, but she is now £400 a month short. Even the cheapest alternative bedroomed property in Bristol South is around £1,300 a month. If landlords evict due to rent arrears, Bristol City Council has to house under the Housing Act 1996, but its budget for emergency housing is already £5 million overspent in this financial year. Emergency housing costs far more than ordinary properties, which are well beyond the LHA rates, so the additional cost is falling on the council. Last month, Bristol City Council spent over £1 million on interim housing. This is stressful and heartbreaking for families, and it is grossly inefficient. It is a really false economy.

Let me turn to care. The Government again ignored supporting young people and families. There was nothing on childcare, the cost of which in Bristol is now totally prohibitive. I am a former governor of one of Bristol’s nurseries. We have a long and proud history, and we still have 11 nurseries in the city, but they are under threat. Support is needed there to help people, and particularly women, back to work, and to help to educate young people in pre-school.

Finally, on social care, in 2015, 2017 and 2019, we saw Prime Ministers standing on the doorstep of No. 10 and making promises that they then broke. Councils have spent thousands of pounds preparing for the new changes from next October. Individuals and families were planning on the basis of changing to thresholds and the introduction of the cap. People are already at their wits’ end. The measures sneaked out last week really are a bitter blow. Why has it happened? It has happened for the same reason that this Government have let people in this country down over the last 12 years. There was no grip from the Department of Health and Social Care on this massive project and totally unrealistic financial resources to make it happen. The Department of Health does not just need to look at others for efficiency; it needs to look at itself. It has no idea how local government works or what the burden of the changes will be. We had funding for packages of care in the budget. Who on earth is going to deliver these packages of care? The workforce is short of 165,000 people. This is a short-term measure. It will not work and we will be back here next year, facing the same crisis in social care.

[Nick Fletcher (Don Valley) (Con)]

With the backdrop of covid and the war, this statement was never going to be an easy read. I will speak briefly about my concerns about the statement and then, selfishly, where I am hopeful for Don Valley.

First, I believe in paying people for their value and incentivising good old-fashioned graft. That can be done through tax relief for risk takers and incentives for employees. Unfortunately, I do not see much of that here. I do understand that many businesses would not be here without this Government—without furlough, the self-employment income support scheme, grants and loans, and so on—and I know that business people understand there needs to be some payback, but we must be careful not to stifle business. Business is about risk and reward. If there is no reward, then what is the point? If productivity is our biggest problem after inflation—which I believe it is—then we do not want business people thinking, “What’s the point?”

I understand the desire to raise the living wage, but has the calculation been done on what effect that will have on inflation? There needs to be a gap in wages between unskilled, skilled and professional careers; between the tiers of responsibility. So raising the lowest wages would no doubt have to be followed through. If it does not, again, people ask, “What’s the point?” What is the point in further education or the sleepless nights that additional responsibilities often bring? Raising the living wage therefore raises everyone’s wage, but although that might sound good, if productivity is not increased, does that not just raise inflation? Again I ask: has the calculation been done? I understand the balancing act and the decisions that the Chancellor has to make, but we must give business some hope that things will get better and give hope to the grafters out there that their efforts are worth while—or, as I say, what is the point?

Now to my constituency. What I am pleased with is the money for education, the guarantee of levelling-up funding and the increased moneys for research and development. If levelling up is ever going to happen, it will happen only with our children receiving a great education. With the right attitude and a great education, the stars really are in reach. I am running a role models programme in Doncaster, which talks about value and attitude. If our children can grasp this and get the education they deserve, levelling up can truly begin.

Levelling-up funding is desperately needed across the north, and no more so than in one of my small towns, a place called Edlington. Edlington made the mainstream media this year. It is home to some of the worst streets in the country. People should not have to live like that; they should not have to live in some of the streets of that town. If we are ever going to encourage our people to have healthy lifestyles and to take responsibility for their health, the leisure centre, which is central to our bid, is more than necessary, because the existing leisure centre is boarded up and full of asbestos. Edlington deserves better.

The most important and welcome part of the autumn statement for Doncaster is the increased budget for research and development. In my maiden speech I spoke about everything that I have mentioned so far—role models and levelling up—as well as the dream of having Boeing in Doncaster. There is an opportunity in my constituency for the advanced manufacturing research centre to open an innovation hub that could lead to having the likes of Boeing in Doncaster—Dame Rosie, can you imagine that?

Increasing the R&D budget gives me hope that the pain we feel now in our tax burden may all be worthwhile. An aviation hub in Doncaster, the advanced manufacturing research centre, Boeing and hybrid air vehicles are all innovative projects that, if the Government back them, will provide opportunities for the next generation to capitalise on. They would mean no young people leaving Doncaster for the bright lights of the south. Instead, there would be an educated generation with the right attitude and in good health who lived in a levelled-up borough and worked locally in a green aviation industry. That is more than levelling up; it is reaching for the stars, but starting from the moon.

It is easy to be critical of the Government as a Back-Bench or Opposition MP, but I understand the difficult choices that have to be made. I am often glad that I do not have to make them, but someone has to. If we are to be taxed, let us put it to good use. The Government are right to put the money into education, levelling up and investment in R&D projects. I hope that some of the money comes to Doncaster, to give our people the opportunities they deserve. Hopefully, when we are through this period, we can reduce taxes for all and start to enjoy the freedoms that a small-state, low-tax, sovereign democracy can bring.

The Growth Plan

Nick Fletcher Excerpts

Friday 23rd September 2022 Commons Chamber

[Kwasi Kwarteng]

The Governor of the Bank of England is entirely independent. We actually have very good relations. We speak regularly, which I think is a good thing. The hon. Gentleman might think it is man-marking; I think it is very cordial. We exchange ideas, and we intend to continue doing so.

[Nick Fletcher (Don Valley) (Con)]

I welcome my right hon. Friend to his position. I welcome this statement on behalf of the whole of Doncaster, which has had decades of neglect and low aspiration while under opposition control. If Peel Holdings does the right thing today, we will have saved our airport. With low taxes at airports, an investment zone, and a grant from the Department for Business, Energy and Industrial Strategy for the Advanced Manufacturing Research Centre, Aspiration Doncaster can be achieved, and levelling up will be delivered, delivered, delivered. Will my right hon. Friend please meet me to look at all the opportunities available to the people of Doncaster as a result of the statement?

[Kwasi Kwarteng]

I would be very happy to meet my hon. Friend to discuss the opportunities presented by investment zones and our other policies.

Better Jobs and a Fair Deal at Work

Nick Fletcher Excerpts

Wednesday 12th May 2021 Commons Chamber

[Nick Fletcher (Don Valley) (Con)]

As the Prime Minister made clear yesterday, we need jobs, jobs, jobs, and following the hardship that many people, especially the young, will have felt over this year, I know that we need them more than anything else.

We do not just need any jobs; we need quality jobs—jobs that will keep aspiration in Doncaster. After all, decades of Labour party dominance in my borough and across the north of England have left an entire population feeling left behind and deprived. “Left behind” and “deprived”—hardly words that entice new investment. Generations have therefore been left behind, not because of any lack of talent, but because of lack of opportunity and aspiration from local political leaders.

In Doncaster, we are expected to cheer when yet another a fast-food restaurant announces that it is opening, or when a new warehouse is built. It is no wonder that we in Doncaster have experienced a brain drain. That is why I want to state to all my wonderful constituents that I will do everything I can to make sure that, in the future, they will have more exciting job prospects, just like their fellow citizens in the south.

We live in a great country, yet the chances of someone like me, from the north, with my working-class background, have been limited at best. Put simply, a young person with my type of background has for too long found the odds stacked against them when trying to enter this place and other prestigious institutions. Luckily, with this re-energised one nation Conservative party that is committed to levelling up, we can reverse that trend.

If it is possible for me, why should it not be possible for anyone in Doncaster not only to work here but to get any job they dream of? That should not mean that they must attend a Russell Group university or get a job down south. Why can they not find success in the area where they were born? We want innovation, with research and development companies setting up in Doncaster, as well as new manufacturing companies, software design companies and gigafactories. With those in Doncaster, I see no reason for a continued brain drain from our town.

I therefore hope that, with my voice, and with the Government’s investment in research and development and commitment to establish ARIA, we can bring the new digital revolution to Doncaster. As this Government build back better, I will work hard in Don Valley and here to champion our borough.

If I may, I will speak directly to my constituents. We might be behind at present, but we will not be left behind any longer. I say to industry leaders: if you want a vibrant workforce, come to Doncaster; if you want a loyal workforce, come to Doncaster; and if you want an MP to champion your investment, come to Doncaster. Let us stop the brain drain and inspire the young. That way, everyone can feel valued, needed and part of a community that pays its way and contributes to all the services we have relied on so much these past 18 months.

Oral Answers to Questions

Nick Fletcher Excerpts

Tuesday 9th March 2021 Commons Chamber

[Kemi Badenoch]

Freeports will be national hubs for international trade, innovation and commerce and they will regenerate communities across the UK. The Ministry for Housing, Communities and Local Government led a fair, open and transparent selection process to determine successful freeport locations in England. Unfortunately, as with any competitive process, there will always be those that are unsuccessful, and I am afraid there are no plans to designate other freeports in England. Freeports are part of a wider package of UK Government support, which invests in skills, infrastructure and innovation at local, regional and national levels. As part of that package, Blyth was awarded £11 million through the future high streets fund in December and is also one of 101 towns eligible for up to £25 million funding from the towns fund.

[Nick Fletcher (Don Valley) (Con) [V]]

With Doncaster missing out on its freeport bid, what other incentives does my hon. Friend believe there are for businesses to locate in the town?

[John Glen]

The Government are committed to encouraging business investment in Doncaster and its surrounding area, and at the Budget we confirmed £23 million funding for Goldthorpe’s town deal—just due west of the town—and that will boost economic growth and encourage business investment in the area. MHCLG is currently assessing the remaining 49 towns fund bids, including those from Doncaster and Stainforth; we will make further announcements on those in due course.

Covid-19 Support Schemes: Ineligible People

Nick Fletcher Excerpts

Wednesday 9th December 2020 Westminster Hall

[Nick Fletcher (Don Valley) (Con)]

I thank the hon. Member for Twickenham (Munira Wilson), and declare my interest as a director of two limited companies. As I have said countless times before in the Chamber, and in Westminster Hall, the Government’s economic response to the pandemic has been unprecedented. As we promoted Small Business Saturday over the weekend, I was pleased to note that almost 1,500 businesses in my constituency have benefited from bounce back loans, and 3,500 people have kept their jobs because of the furlough scheme. As I made clear three weeks ago, it is time for the Government to provide support for directors of limited companies.

Being a limited company has some small benefits with regard to national insurance payments, although much of that is negated by the payment of corporation tax. The main reason for being a limited company is, as is indicated by the name, to limit one’s liability as an individual. To be penalised because one is a director and takes remuneration through a dividend seems harsh.

A week is a long time in politics; three weeks, it seems, is a lifetime. On 18 November I stood in the Chamber along with many of my colleagues and called for large supermarkets to return the rate relief they had received from the Government, as they had not been hit financially by covid. I am pleased to say that since then £1.8 billion has been issued back.

With this in mind, I call on the Minister to do three things: ensure that those businesses and sectors that were not in financial trouble return the moneys gained through rate relief; give businesses the option to tick an opt-out box to ensure they do not receive unneeded support in the first place; and, most importantly, listen to the concerns and recognise the plight of the self-employed directors. We are receiving funds back from supermarkets and other businesses; now is the time to use this money wisely to allow businesses to stay afloat as we begin to reach the light at the end of the tunnel.

[Christina Rees (in the Chair)]

I thank hon. Members for adhering to the time limit; it is much appreciated.

North of England: Economic Support

Nick Fletcher Excerpts

Wednesday 11th November 2020 Westminster Hall

[Nick Fletcher (Don Valley) (Con)]

I thank the hon. Member for Barnsley Central (Dan Jarvis) for securing the debate. I have enjoyed working with him since becoming the MP for Don Valley, and I know how deeply he cares about ensuring that the north gets a good deal.

We have heard, and will continue to hear, Members discussing the need for the Government to offer sufficient support for the north as it is hit by the covid-19 pandemic. I wholeheartedly agree with that feeling, especially as I know full well the pain that businesses and individuals are going through in my constituency. However, I want to discuss the dire need for the Treasury to continue with its policy to reform the Green Book, as the Chancellor set out in March this year. The hon. Member for Barnsley Central has spoken at some length on that issue in the past. I believe there is scope for a true cross-party consensus on such a reform. After all, it is nothing short of a scandal that successive Governments’ failure to reform the Green Book has led to a lack of infrastructure investment in the north for decades. That needs to change, especially as the north has been hit particularly hard by the pandemic. I therefore welcome the Chancellor’s commitment to have the Green Book reviewed in March, although the pandemic and the pushing back of the Budget this autumn have inevitably delayed much-needed action in this area. However, I say to the Government: do not delay.

We are witnessing seismic shifts in our economy and its functions will be changed forever as a result of the pandemic. As such, the Government should be investigating ways in which they can create a more functional economy as part of their recovery plan, which has less of a focus on London and instead sees the potential of all regions in the UK. Areas such as Doncaster have considerable potential; the skills and workforce are all there. We now need ambitious infrastructure projects in order to truly level up the region.

Members will be aware that in March 2018, the then Government revised the Green Book to take greater consideration of environmental and distributional impacts of infrastructure funding. Of course, it was a step forward that had the potential to boost economic wellbeing in the north. However, I believe the Government should be even more ambitious. Treasury Ministers should now look at how they can completely rewrite the Green Book, so that the formula no longer rewards places that already enjoy good economic growth and high productivity with big investment projects.

The over-concentration on quick economic returns has only exacerbated the north/south divide and needs to be totally reworked; otherwise, the Green Book will continue to give the same answer to any infrastructure proposal in the north—“The computer says no.” Equally, the current data on regional economic progress is not sufficient. Infrastructure spending could be made fairer by integrating into a new Green Book formula, data that better shows regional capital investment—an improvement that hon. Members have called for in the past.

Oral Answers to Questions

Nick Fletcher Excerpts

Tuesday 7th January 2020 Commons Chamber

[Mr Clarke]

The figure of 1,000% is somewhat misleading. Only motorhomes with the very highest emissions would fall into that category, and the extra VED applies only in the first year. But of course we keep all taxes under review. I am sensitive to the concerns of the industry; clearly, a significant number of jobs are supported by it. As always, we keep these things under a watching brief.

[Nick Fletcher (Don Valley) (Con)]

9. What fiscal steps he is taking to help reduce street crime.

[The Chief Secretary to the Treasury (Rishi Sunak)]

May I warmly welcome my hon. Friend to his place, as a fellow Yorkshire MP? I am pleased to tell him that the Government are determined to keep our families and communities safe by backing the police with the resources that they need. That is why we have committed to finding 20,000 new police officers by the end of 2023 to help to keep our streets safe. To that end, we have additionally announced £750 million of investment so that the first 6,000 can be in place by the end of next year.

[Nick Fletcher]

Will my right hon. Friend work closely with the Home Secretary to ensure that Don Valley gets its fair share of the 20,000 police officers so that my constituents not only feel safer but are safer on the streets?

[Rishi Sunak]

My hon. Friend is absolutely right. I am pleased to tell him that South Yorkshire will be allocated 151 of the initial wave of new police officers. That comes on top of the 55 that are being recruited this year, and, in addition, £1.6 million of funding has been allocated to his local force for a violence reduction unit that will further help. I hope that provides him and his constituents with the reassurance they need. We are committed to keeping them safe.