Tackling Fraud and Preventing Government Waste

Nick Smith Excerpts

Tuesday 1st February 2022 Commons Chamber

[Michael Ellis]

That is a very peculiar happenstance that my hon. Friend rightly mentions. Other local authorities around the country made good use of that generous provision, and I think Rotherham have questions to answer.

[Nick Smith (Blaenau Gwent) (Lab)]

On Lord Agnew of Oulton, who resigned over the fraudulent covid business loans, the good, decent Lord said that there was “zippo of detail” on how the Government plan to deal with the issue of business loans. Can the Minister say how the Government will claw back the £77 million loss on the eat out to help out scheme from the missing Chancellor?

[Michael Ellis]

If the hon. Gentleman will allow me to make some progress, he may hear about what the Government have been doing, and will continue to do.

The Government’s priority at the time was to get financial support to businesses. That was the alpha and omega of everything—it was to get that financial support to businesses, and their employees by extension, and as quickly as possible, to protect jobs and livelihoods. In total, we made available over £100 billion of loans and grants to over 1 million businesses, through bounce back loans, the coronavirus business interruption loan scheme, the coronavirus large business interruption loan scheme, and business grants. There were myriad schemes that we were using.

Cabinet Office

Nick Smith Excerpts

Thursday 20th January 2022 Ministerial Corrections

[Daniel Zeichner (Cambridge) (Lab)]

5. When the Government plan to bring forward legislative proposals to reform public procurement.

[Nick Smith (Blaenau Gwent) (Lab)]

7. When the Government plan to bring forward legislative proposals to reform public procurement.

[Nia Griffith (Llanelli) (Lab)]

16. When the Government plan to bring forward legislative proposals to reform public procurement.

Coronavirus Grant Schemes: Fraud

Nick Smith Excerpts

Tuesday 18th January 2022 Commons Chamber

[John Glen]

I can certainly confirm that the intention behind the range of interventions was to find the most appropriate delivery mechanism for the different support payments, and obviously we have worked with local authorities to give them that discretion. Every authority will need to be held to account for how it has decided to deliver the grants. My hon. Friend has made a clear case for where those priorities need to lie, and we are clear about the intention behind the grants, but it will be for local authorities throughout the country to make their decisions in the right way.

[Nick Smith (Blaenau Gwent) (Lab)]

Seventy-one million pounds of taxpayers’ money was fraudulently claimed through the eat out to help out scheme. How many arrests have been made, and are the criminals now enjoying prison food?

Downing Street Christmas Parties Investigation

Nick Smith Excerpts

Thursday 9th December 2021 Commons Chamber

[Michael Ellis]

The matter my hon. Friend raises is a matter for the inquiry to uncover, but I can assure him that the people who work in No. 10 Downing Street, including over the pandemic, are hard-working industrious people who are seeking to serve their country. They work very hard to do that. What he mentions is a matter of great concern to the people of this country, as it is to me. We all wish to know the terms of the investigation, and I have announced to this House what the terms and the scope of the investigation are. They will clearly be published and a copy of the terms will be laid in this House.

[Nick Smith (Blaenau Gwent) (Lab)]

Revelations of the 18 December gathering in No. 10 Downing Street have triggered much anguish across the country, so may I press the Minister on how exactly the Government Legal Department will support the investigation?

[Michael Ellis]

The Government Legal Department can provide support in a number of ways, and it will be up to the Cabinet Secretary to decide how he wishes to seek its support. One of the things he could do, for example, is ask for its advice as to the legal position on various matters. There are myriad ways that the Government Legal Department can help and give advice. It will be up to Simon Case as Cabinet Secretary, who heads the home civil service, to deal with the matter.

Oral Answers to Questions

Nick Smith Excerpts

Tuesday 2nd November 2021 Commons Chamber

[Rishi Sunak]

I thank my hon. Friend for the kind invitation, which he also sent me by phone. I look forward to accepting it soon and to celebrating Stoke’s success in not one, not two but three levelling-up fund bids.

[Nick Smith (Blaenau Gwent) (Lab)]

2. What recent fiscal steps he has taken to help resolve supply chain issues.

[The Exchequer Secretary to the Treasury (Helen Whately)]

Current stresses on supply chains are a consequence of global factors; as economies around the world recover, demand is outstripping supply. Where it makes sense, we are taking action to support UK supply chains, such as increasing the supply of lorry drivers to help the haulage sector meet demand for deliveries.

[Nick Smith]

Last week’s National Audit Office report on supply chain finance highlighted that huge contracts involving Greensill Capital, signed off by the Treasury, provided no benefits to the NHS. Does the Minister accept the NAO report, and will she ensure that in the future, contracts are properly awarded to avoid this kind of insidious lobbying?

[Helen Whately]

I am sure that the Government will be responding to the NAO report in due course, but I can assure the hon. Member that the Treasury works very hard with the Department of Health and Social Care to make sure that funding for the NHS, which we are increasing substantially, goes to good use and improves care for patients.

Oral Answers to Questions

Nick Smith Excerpts

Tuesday 27th April 2021 Commons Chamber

The Chancellor of the Exchequer was asked—

[Nick Smith (Blaenau Gwent) (Lab)]

How his Department determined the criteria for assessing bids to the levelling-up fund; and if he will make a statement.

[The Chief Secretary to the Treasury (Steve Barclay)]

The £4.8 billion levelling-up fund will invest in local infrastructure that has a visible impact on communities across the United Kingdom. It has been jointly designed by the Treasury, the Ministry of Housing, Communities and Local Government and the Department for Transport.

[Nick Smith]

Having waited so long, I really hope that the levelling-up fund will boost infrastructure in south Wales. I have already written to the Chancellor about the improvements that are needed for the Ebbw Vale to Cardiff line, to help young people especially to get to work, so can the Minister assure me that this investment will finally be seen through?

[Steve Barclay]

I share the hon. Gentleman’s desire to boost infrastructure in south Wales, and he is quite right to focus on young people getting to work, given how impacted they have been by the pandemic. He knows that his area in particular has received additional funding for capacity, and this will enable it to bid for the levelling-up fund to address the issues that he highlights.

Covid-19: Economy Update

Nick Smith Excerpts

Thursday 22nd October 2020 Commons Chamber

[Rishi Sunak]

I thank my hon. Friend for his comments. Where the guidance is not clear on businesses that are legally required not to open but not legally closed and therefore do not benefit from some support, we are actively looking at that and ensuring that we can fix it. Events and exhibitions are one of the VOA categories that will be included in the hospitality and leisure calculation that we use for the tier 2 grants I have announced today. More generally, the best thing we can do is try to open up more travel and, as time progresses and we can do more testing, to get life back into that sector by allowing it to get on with what it wants to do, which is to put on a fantastic events.

[Nick Smith (Blaenau Gwent) (Lab)]

In March, the Government increased the basic allowances for both universal credit and working tax credit by £20 a week, but that uplift is only temporary; it will expire next April. Does the Chancellor accept that, after what we all expect to be a tough winter ahead, that will mean taking nearly £1,000 a year away from those families who really need it?

[Rishi Sunak]

We did put in place the temporary uplift of universal credit  but, as the hon. Gentleman says, it still has five or six months to run; it will be in place to support vulnerable families throughout the difficult winter period and is there all the way until next spring.

The Economy

Nick Smith Excerpts

Wednesday 8th July 2020 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

This pandemic is hitting Blaenau Gwent hard. Its shockwaves are shaking our south Wales valleys now. An entire shopping centre is under threat. A logistics centre that supplies the drinks industry is facing redundancies. Our small-town high streets are under big pressures. Care workers are under the cosh. These heroes have put their lives on the line to look after our loved ones, but now some of them are seeing their hours cut, and others are losing their jobs completely. The whispers and rumours of redundancies are back, and while things are so uncertain, this will keep on happening.

The valleys have seen this before. People in my constituency remember the 1980s, when pit and steel closures hugely impacted our communities. We know how important early investment is during tough times. In 2018, the Government promised to launch the shared prosperity fund, but we are still waiting for it. That pot of money could help Blaenau Gwent to rebuild following this period of uncertainty. It could help to revive our economy, which is facing the threats of these dark times. It would build vital infrastructure, giving us the good-quality roads and the rail tracks that we need. We have waited too long for this fund. The Government need to step up and give us this detail as a matter of urgency.

We also need to invest in young people. Dubbed “generation covid”, they are facing the toughest job market in decades. The kick-start scheme is to be welcomed. At first sight, it resembles Labour’s successful future jobs fund, and I am glad that it is being revived. In Ebbw Vale in my constituency, Cyber College Cymru offers young people future-proof training in this growing sector. The project links up with major employers, helping young people to gain the work experience they need to get into the jobs market. It is a shining example that should be replicated across the whole country. Young people need these opportunities straightaway. Neither they nor our economy can afford to wait. Blaenau Gwent and its young people need a helping hand now—let’s get on with it.

--- Later in debate ---

[John Glen]

I will not, given the time.

It is a plan that puts young people front and centre, with a kick-start scheme that will pay employers to create quality jobs for 16 to 24-year-olds at risk of long-term unemployment, alongside new funding for apprenticeships, traineeships and sector-based work academies. We shall be issuing guidance very shortly on how those schemes will interact with the extra support that we are putting into jobcentres. It also means that we shall invest in infrastructure, decarbonisation, and maintenance projects that will serve the needs of communities across the country, while creating jobs and apprenticeships here and now.

Through our collective efforts, coronavirus has been brought under control in this country, but it has not disappeared completely. Even as our economy reopens, many businesses and families will continue to face significant challenges. The Chancellor made it clear today that the Government are not driven by ideology; we are guided by the simple desire to do what is right. For that reason, we will continue to take significant steps to support the economy in the weeks ahead. We will, for example, inject new certainty and confidence into the housing market by increasing the stamp duty threshold to £500,000 for first-time buyers. That recognises the additional expenditure in the economy derived from a house purchase, and, we anticipate, will have a significant effect.

Few sectors have been harder-hit, though, than retail, hospitality and entertainment, so, from next Wednesday, VAT on food, accommodation and attractions will be cut from 20% to 5%. I welcome the positive comments from across the House for that measure. Through the month of August, everyone in the country will be entitled to a Government-funded discount of 50% in restaurants, pubs and cafés, Monday to Wednesday. The “eat out to help out” discount is the first of its kind in this country, and proof that the Government will leave no stone unturned in our efforts to protect people’s jobs and livelihoods.

I shall now mention some of the themes of this afternoon’s debate. My hon. Friends the Members for Stoke-on-Trent South (Jack Brereton), for High Peak (Robert Largan) and for Keighley (Robbie Moore) emphasised the need for investment in local infrastructure and levelling up, and that means investing now to prevent long-term damage to the economy and support the private sector. That is why the Government have brought forward the shovel-ready projects.

On the theme of sustainable public finances and recapitalisation, my right hon. Friends the Members for Wokingham (John Redwood) and for Chipping Barnet (Theresa Villiers) and my hon. Friend the Member for North East Bedfordshire (Richard Fuller) recognised the challenges ahead with respect to the third phase that the Chancellor referred to today, and we shall be responding in the Budget later this year. My hon. Friend the Member for North East Bedfordshire raised a particularly important point about the need to encourage the private sector to generate the jobs ahead.

My neighbour, my right hon. Friend the Member for Romsey and Southampton North (Caroline Nokes), made a passionate speech, referring to the need to address urgently the challenges faced by the beauty industry. She also mentioned the disproportionate impact on women, people from the BAME community and the disabled, and we shall be responding to the excellent report that her Committee, the Women and Equalities Committee, produced in the spring.

There was a moment of synergy between my hon. Friends the Members for Buckingham (Greg Smith) and for St Albans (Daisy Cooper) as they backed the “eat out to help out” campaign, and my hon. Friend the Member for South Dorset (Richard Drax) emphasised his commitment to that in terms of support for pubs.

There were also references to the need for resilience with our local authorities, who have received £3.7 billion in new grant funding. We will work closely with local authorities as we move into the next stage.

[Nick Smith]

Will the right hon. Gentleman give way?

[John Glen]

I am afraid that I will not give way because of the amount of time I have left.

I wanted to respond to the point raised by the hon. Member for North East Fife (Wendy Chamberlain)—who is not in her place—on the Treasury’s responsiveness to her constituents’ correspondence. We have had a volume increase of eight times over this crisis, but we will be working very carefully to improve our responsiveness.

Over the past few months, our economy has endured unprecedented levels of disruption and uncertainty. People and businesses have experienced considerable hardship and worry, and many will continue to do so for some time yet. However, over the past few months we have seen the best of our economy. We have seen banks and building societies providing support with mortgage holidays. The hon. Member for Glasgow South West (Chris Stephens) mentioned the important role of credit unions; we will be working closely with them as we move to the next stage. Businesses large and small turned over their production lines to the manufacture of ventilators, PPE and antibacterial sanitiser, and supermarkets, chemists, couriers and utility companies have also assisted; but we now need to move forward. As the Chancellor has unveiled a plan to protect, create and support jobs, everyone in this country has the opportunity for a fresh start. The task is not yet done. It will take time, and there will be more to come from the Government in the Budget and spending review in the autumn.

Economic Update

Nick Smith Excerpts

Wednesday 8th July 2020 Commons Chamber

[Rishi Sunak]

My hon. Friend is absolutely right. Those on the lowest incomes will receive grants of up to £10,000 to cover the full costs, but that is a policy that does all three things: it will create local employment in communities, which right now is what we want; it will save households money on their bills, up to £200 or £300 for typical cavity wall insulation; and it will cut carbon, with the average house installing these measures saving the equivalent carbon of a flight from London to New York. This is a policy that does what we need right now—cuts carbon, creates jobs and saves cash.

[Nick Smith (Blaenau Gwent) (Lab)]

To boost employment in Blaenau Gwent, we need to help more people get on the Ebbw Vale train to Cardiff, but the line needs to be redoubled, with improved signalling and bridging works. A business plan is in the pipeline from the Welsh Government. Will the Chancellor commit to follow through and please look at providing the investment for jobs that we need—in short, to do what is right for the people of the south Wales valleys?

[Rishi Sunak]

I am very happy to look at the proposal from the hon. Gentleman, and I am sure that the Transport Secretary is fully abreast of it. I will pick it up with him as well.

Future Relationship with the EU

Nick Smith Excerpts

Tuesday 9th June 2020 Commons Chamber

[Penny Mordaunt]

I can give my hon. Friend those assurances. We are obviously working very hard to deliver for that sector. It is a sector that was not well served—the whole of services were not well served—by our previous relationship with the EU. The asks that we are making with regard to financial services are in other agreements that the EU has, notably that with Japan, so we think it perfectly reasonable that they be extended to us.

[Nick Smith (Blaenau Gwent) (Lab)]

Ebbw Vale in Blaenau Gwent has a European-based car parts manufacturer that provides well-paid jobs. What engagement have the Government had with this sector and its trade unions about their role in these negotiations?

[Penny Mordaunt]

I thank the hon. Gentleman for his question. One of the areas that I look after in the Cabinet Office is our communications. We have had a complete overhaul involving every Government Department, including those for local government and for transport, which will be key to the sector that he raises, to improve our communications. Clearly, a lot of policy announcements are yet to happen because they are contingent on decisions that have been taken, but that structure is now in place. I make the commitment that the communications between all sectors and Government will be considerably better than what happened last year.