Oral Answers to Questions

Patrick Grady Excerpts

Tuesday 24th October 2017 Commons Chamber

[Mr Philip Hammond]

Yes. As I said earlier, the UK economy is fundamentally strong. We have the world’s second largest services export sector at a time when emerging economies across the globe are sucking in new demand for services, and we have a global lead in various areas of emerging technology that will drive the fourth industrial revolution. This country has a bright long-term future. Of course we must deal with short-term uncertainty, and of course we must tackle our productivity challenge, but we are fundamentally in good shape.

[Patrick Grady (Glasgow North) (SNP)]

Given that support for a single Scottish police force was in the 2011 Scottish Tory manifesto, can we assume that the Government think that the £280 million VAT fee is a price worth paying, or will they finally see sense and scrap the VAT on Scotland’s fire and police services?

[Mel Stride]

The hon. Gentleman’s colleague, the hon. and learned Member for Edinburgh South West (Joanna Cherry), asked exactly the same question, and I shall give exactly the same answer. When the Scottish Parliament and Government made that decision, they knew that structuring the police and fire services in the way that they chose would lead to the VAT outcome that they should have expected all along.

Finance (No. 2) Bill

Patrick Grady Excerpts

3rd reading: House of Commons
Tuesday 25th April 2017 Commons Chamber

[Kirsty Blackman]

I wish to discuss the issues raised in this group, including by my new clause 1. The Minister has covered the IR35 issues in some detail, but the Scottish National party still has real concerns about these changes. Just the other day somebody told me that they are no longer bidding for public sector contracts as a result of the tax changes made on IR35. That is a real concern, which we have raised before, particularly in the context of rural communities. In some of our most rural communities, people such as teachers, doctors and nurses are employed through intermediaries, and for very good reasons: it is sometimes difficult to get people to come to some of the most rural parts of Scotland. We are concerned that this move is going to have a real disadvantageous effect, particularly for rural communities that rely on teachers, doctors and other individuals working in the public sector who are employed through intermediaries. I understand that it is already having an effect, but it would be interesting, and I would very much appreciate it, if the Government let us know what difference it has made, not only to the tax take, but to our communities. Having read through the Government’s document on the impact of the tax changes, called OOTLAR—the overview of tax legislation and rates—I do not think they have recognised the impact the changes could have on communities, so it would be interesting to see what that impact is. The change has already been made and people are now working under it, so I imagine that within six months or so we will be able to see the outcomes and whether or not there is a disadvantage.

New clause 1 is on tax avoidance, which the Scottish National party has spoken about at length in this Parliament, and about which we will continue to speak at length. Tax avoidance is a real concern and contributes to the UK tax gap, which is £36 billion. Back in 2014, Credit Suisse published a report suggesting that larger countries such as the United Kingdom struggle to get people not to avoid tax. Smaller countries are much better at it—I am just pointing that out. The new clause would require the Chancellor of the Exchequer to review within two months international best practice in relation to the prevention and reduction of tax avoidance arrangements and combating tax evasion, and to publish a report of the review. We are asking for that because we do not think that the United Kingdom is the best place in the world at tackling tax avoidance. It is certainly not the best place in the world at all the different ways of tackling tax avoidance; we could learn a huge amount from what different countries are doing. The new clause would be a sensible way forward, so I hope the Government are keen to accept it.

Something else we have mentioned in relation to tax avoidance is the protection of whistleblowers. Some whistleblowers tend towards having poor health as result of their whistleblowing. It is really important that people are encouraged to come forward if they see problems, and that we are making it as easy as possible for them to do so, because we need people to be whistleblowers. We need them to tell us where practice is going wrong and where tax dodging is happening. We would support the Government in any action they take to encourage whistleblowers and to create a better environment in which they can come forward.

Lastly, there has been talk of the possibility of the United Kingdom becoming a tax haven after Brexit. We absolutely reject the notion that after Brexit the United Kingdom should reduce all taxes to nearly nothing. For a start, that just does not work if we want to have public services such as the NHS—

[Patrick Grady (Glasgow North) (SNP)]

Some of them do not, though.

[Kirsty Blackman]

I hope everybody present is supportive of the NHS, but I get why my hon. Friend has the impression that some people are not. We need our NHS to continue to be supported, and for that we need taxes to continue to come in.

--- Later in debate ---

[Kirsty Blackman]

If the Minister changes the VAT treatment of the Scottish police and the fire and rescue service, I promise not to raise the matter again in the House. I can see that she is fed up with discussing it, but, frankly, so am I. If the Government were to move on this, we would not have to raise it again.

[Patrick Grady]

The other option open to the Government is to devolve power over VAT to the Scottish Parliament, so that it could make all of these decisions. We were promised the most powerful legislature in the world, so why do the Government not live up to that commitment and give us the powers that we need?

[Kirsty Blackman]

I agree with my colleague. We have a portion of VAT devolved to the Scottish Parliament, which does not make a huge amount of sense. Although we obviously welcome any new powers coming to the Scottish Parliament, it would be much better if we had control over all of VAT, rather than have a portion of the income from VAT coming to us.

The Scottish police and the fire and rescue service are charged VAT unlike Highways England, which is a national English body, and unlike London Legacy, which is a national UK-wide body. The UK Government have created exemptions for both of those organisations, but not for Scottish police and Scottish fire. This costs the Scottish people, because Scottish police and Scottish fire are having to pay this VAT bill to the UK Government rather than having this money to spend.

Equitable Life Policyholders: Compensation

Patrick Grady Excerpts

Thursday 23rd March 2017 Commons Chamber

[Bob Blackman]

I thank my hon. Friend, and I trust that he will make a further contribution to the debate later. The position is as he has set out. We should ensure that the City of London remains the financial centre of the world, and we must show that we can be trusted to look after people’s investments.

[Patrick Grady (Glasgow North) (SNP)]

I congratulate the hon. Gentleman on securing the debate. I, like other Members, have a number of constituents who are affected by this. He talks about people reaching their old age. In addition to the fact that the compensation is too little, is there not an increasing risk that it will come too late? The longer justice is delayed, the greater the chance that it will be denied.

[Bob Blackman]

Indeed. Unfortunately, as we know, many of the individuals affected by the scandal are deep into old age. They may be very vulnerable, and, regrettably, there are fewer and fewer of them every day. For every day that goes by without them receiving proper compensation, the scandal is maintained.

Scottish Devolution and Article 50

Patrick Grady Excerpts

Wednesday 15th March 2017 Westminster Hall

[Patrick Grady (Glasgow North) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Gray, especially given your well-known Glasgow roots and your love for Scotland. I am sure you will be among the first to claim citizenship of a newly independent Scotland—or dual citizenship, perhaps.

[James Gray (in the Chair)]

Order. The hon. Gentleman is entirely right: I am 100% Scottish and all of those things. However, he is quite wrong to seek to involve me in the debate, in which I have no interest or involvement whatever.

[Patrick Grady]

My apologies, Mr Gray; nevertheless, the pleasure remains. As my hon. Friend the Member for Edinburgh North and Leith (Deidre Brock) said, the circumstances in which we are having the debate have changed somewhat, following the First Minister’s announcement on Monday about the Scottish Government’s decision to seek a section 30 order. I pay tribute to the ever-ready House of Commons Library, which nevertheless managed to capture that announcement in its briefing note just before it went to press.

I will look briefly at the principles behind the debate and some of the practical implications for us in the House and beyond. For me, there are two key principles behind the devolution settlement. The first is the claim of right for Scotland, which we have discussed in this Chamber before. It is the concept of popular sovereignty. The 1989 claim of right was the basis of the constitutional convention and the current devolution settlement. It said:

“We, gathered as the Scottish Constitutional Convention, do hereby acknowledge the sovereign right of the Scottish people to determine the form of Government best suited to their needs”.

That claim still stands today, and it was asserted on 23 June 2016, when the people of Scotland said that they wanted to remain in the European Union. That claim was passed by the constitutional convention in 1989 and was again agreed by the Scottish Parliament in 2012, but is the principle of the claim now under threat from the Conservative Government? The Tories have never been clear about whether they endorsed that principle in the first place, and it appears even more under threat now, especially if the Prime Minister tries to block or delay the requested potential independence referendum in Scotland.

The second key principle, enshrined in the Scotland Act 1998, is that whatever is not reserved is devolved. As we all know, schedule 5 to the Act is clear about what is reserved: defence, foreign affairs, social security and aspects of trade and energy. There have been some derogations in those areas over the years, but anything that is not mentioned in schedule 5 to the 1998 Act is therefore devolved to the Scottish Parliament. Climate change is a very good precedent for that. When the UK Parliament decided it wanted to legislate on climate change emissions, responsibility fell to the Scottish Parliament to make legislative provision in Scotland. The Scottish Parliament took it upon itself in 2009 to pass some world-leading climate change legislation, which was some of the most ambitious anywhere in the world. It seems now that the principle of what is not reserved being therefore devolved is also under threat. We have certainly had ambiguous answers from Ministers to date.

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

Does my hon. Friend agree that it is absolutely crucial that the UK Government provide clarity of their intent regarding the transfer of powers? The Scottish Government can then plan ahead and ensure that they have sufficient capacity and resource to take on any additional responsibilities.

[Patrick Grady]

Planning is of absolute importance, and I have to say, I probably have more confidence in the Scottish Government’s ability to plan ahead, irrespective of what the UK Government is doing. The First Minister has demonstrated at every turn, before, during and since the EU referendum, that the Scottish Government are actually thinking ahead about the consequences of various decisions might be. We have seen that demonstrated again this week.

My hon. Friend leads me on to the important practicalities of how the implications of triggering article 50 will be felt in Scotland and their implications for devolution. The first—I hope we will have an opportunity to find out a little bit more about this—will be when we finally get to see and hear more about the Government’s thinking on the great repeal Bill, or, as it is increasingly known in some circles, the great power grab. It is a serious concern for Members from all parties, not least the hardcore Brexiteers who wanted to restore sovereignty to the House of Commons, that what will in fact happen is a power transfer—a power grab—by the Executive in the United Kingdom.

We read in The Times the other day that it will perhaps not just be a great repeal Bill, but that up to seven or more pieces of individual legislation will be needed just to deal with the complexities of taking us out of the European Union. The Government have to start answering questions, precisely as my hon. Friend the Member for Rutherglen and Hamilton West (Margaret Ferrier) said, so that we can make plans.

The consequences for devolution are profound. Which will come first, the chicken or the egg? Are we going to see an amendment to the Scotland Act to reserve powers as a result of Brexit, or will individual pieces of legislation come forward that reserve different powers? What exactly is going to happen?

[Dr Poulter]

Will the hon. Gentleman give way?

[Patrick Grady]

I am happy to, if the hon. Gentleman has an answer for me.

[Dr Poulter]

I speak as someone who was not a hardcore Brexiteer but voted to remain. Agriculture is an area that affects my constituency in Suffolk, as it does many of the constituencies in Scotland. Given that many agricultural tariffs are currently set at a European level, if Scotland remains part of the United Kingdom and we have a UK single market, it would be appropriate for the UK Government to be involved in dealing with those agricultural tariffs, on a point of principle. Does he agree?

[Patrick Grady]

The principle that is very clear is that if something is not reserved to the UK Government, it is therefore devolved to the Scottish Parliament. I have not read the words “reservation of agriculture” in schedule 5 to the Scotland Act. Some of my hon. Friends might want to clarify or expand on the practicalities of that.

Let us take fisheries as an example, which was one of the potential Bills listed in The Times the other day. There are potential consequences for that. If the Government bring forward a fisheries Bill and have not clarified whether that is devolved or reserved, it seems to me that, under the English votes for English laws Standing Orders, it will fall to the Speaker of the House of Commons to decide whether or not that hugely profound, massive area of policy needs to be certified under the EVEL procedures. That could therefore deny a say to Members from Scotland on something that the Scottish Parliament equally has no power over, because we have been left in a legislative limbo. The Government have to start making clear exactly what their thoughts are on these issues.

[Margaret Ferrier]

Does my hon. Friend agree that, in the case of fisheries, the most appropriate people to administer are the Scottish Government? We have witnessed in the past inexperienced members of the UK Cabinet representing the UK at EU talks, with much more knowledgeable and seasoned Scottish Ministers being snubbed.

[Patrick Grady]

Indeed. That goes right back to the very process of the UK joining the European Community in the first place, when the fishing communities of Scotland were sold down the river as a bargaining chip in those original negotiations. There is a fear that that will happen again.

The final area that needs to be clarified is the Sewel convention, particularly as it relates to secondary legislation. One fear about the power grab that will come in the great repeal Bill is that the Government will take much power for themselves, through Henry VIII powers, to deal with European regulations by secondary legislation. However, secondary or delegated legislation is not subject to the Sewel convention. Concerns about that were raised by the Presiding Officer of the Scottish Parliament in written evidence to the Procedure Committee, which was published this afternoon. He says:

“Looking beyond the Great Repeal Bill, I would also observe that the current deadlines under which subordinate legislation is introduced in the UK Parliament would already constrict the timescale for any consequent scrutiny at the Scottish Parliament. There is a worry that any suggestion of foreshortening those deadlines may not be conducive to allowing proper oversight of any instruments that may include devolved matters.”

The consequences are profound, let alone the fact that the Supreme Court has already said that the Sewel convention is a political decision and therefore not worth the vellum it is inscribed upon.

The implications of triggering article 50 for devolution are profound. The Prime Minister said at Prime Minister’s questions today that she is listening and discussing, but now is the time for agreement and action. Perhaps the Minister could start by answering some of the questions we are raising today.

[Several hon. Members rose—]

Cerberus Capital Management: Purchase of Distressed Assets

Patrick Grady Excerpts

Wednesday 22nd February 2017 Westminster Hall

[Roger Mullin (Kirkcaldy and Cowdenbeath) (SNP)]

It is a pleasure to serve under your chairmanship once again, Mr Owen. Thank you for inviting me to take my seat on the Front Bench.

We all owe a great debt to my hon. Friend the Member for East Lothian (George Kerevan) for securing this debate, especially the companies that have been driven to the wall or destroyed by the actions of Cerberus. I know that some of those companies are represented in the Public Gallery today; I hope they find that we have done justice to their cause. My hon. Friend certainly has.

[Patrick Grady (Glasgow North) (SNP)]

I have a constituent who was affected by the behaviour of the Royal Bank of Scotland’s global restructuring group. Does my hon. Friend agree that there is a huge lack of trust in such major institutions, particularly RBS, which is largely owned by the public purse? It falls to the Government to get a grip on the situation and take the necessary actions that my hon. Friend the Member for East Lothian (George Kerevan) outlined, so that public confidence can be restored and some of the businesses affected can have some hope of restitution.

[Roger Mullin]

I agree wholeheartedly. Indeed, in a debate on a related issue last week, I raised the fact that many people and small businesses will find it extraordinary that banks such as RBS have no duty of care towards the customers they deal directly with. Given all the tales of misery caused either by the banks directly or by Cerberus, surely we need to ensure that there is proper regulation and a proper duty of care towards those who suffer at the hands of such institutions.

Oral Answers to Questions

Patrick Grady Excerpts

Tuesday 17th January 2017 Commons Chamber

[The Economic Secretary to the Treasury (Simon Kirby)]

The Help to Buy scheme has helped more than 220,000 households to buy a home, including more than 180,000 first-time buyers. In the autumn statement, the Chancellor announced that the Government will invest an additional £1.4 billion in affordable housing to deliver 40,000 new homes for shared ownership, rent to buy and affordable rent, bringing the total funding of the affordable homes programme to £7.1 billion.

[Patrick Grady (Glasgow North) (SNP)]

Will the Chancellor state unequivocally the Government’s commitment to the 0.7% aid target in this and future spending rounds?

HMRC Estate

Patrick Grady Excerpts

Tuesday 10th January 2017 Commons Chamber

[Jane Ellison]

The focus on customer service is vital. At the heart of the wider transformation programme, not just the estate transformation programme, is the desire both to make sure HMRC is the most effective tax collector that it can be and to deal with customer service. So that is central to all the questions I ask of HMRC and it asks of itself.

On the specific point, I am sorry to hear the hon. Gentleman’s wife waited for that long. I am concerned about the number of people who wait so long. Although they are a small proportion of the customers who ring HMRC, because of the large numbers who do so, it is still quite a lot of people, and it is an issue I have specifically been discussing with senior HMRC customer service managers, with a view to addressing it further.

[Patrick Grady (Glasgow North) (SNP)]

Given that the Department for Work and Pensions is also conducting an estate review and is threatening to close eight job centres in Glasgow, what discussions is the Minister having with ministerial colleagues about the cumulative impact of the Government’s shrinking of their estate? What impact is that going to have? How many HMRC employees are going to find themselves without a job and without a local job centre to go to?

Double Taxation Treaties (Developing Countries) Bill

Patrick Grady Excerpts

2nd reading: House of Commons
Friday 16th December 2016 Commons Chamber

[Roger Mullin]

I can tell this is going incredibly well already.

One thing I wanted to say at the beginning of my speech was that, being who I am, I could have been very disappointed in the raffle, but here I am with 45 minutes or thereabouts to discuss my private Member’s Bill. Most Members would be keen to get a full hearing and a vote, but I know that that is not going to happen with this Bill. However, I could not be prouder than to have my Bill considered following the one that this House has just chosen to accept. [Hon. Members: “Hear, hear.”] I am sure that there are many people who feel the same.

I come back to my experiences in different parts of the developing world. In the agencies I worked with over the years, I came across many people who, although they were devoted to helping alleviate poverty and engage in capacity building and believed in the need for aid—many had worked in this field for many years, including a great friend of mine from Lossiemouth called David Thomson, who has worked in more than 60 countries—they also passionately believed that we would never cure the problem until we liberated those countries so that they could better take care of their own resources.

What do we know about international taxation treaties or double taxation treaties? They are set up for firms, such as UK firms, that operate in a developing country but are headquartered in the UK. They are often called double taxation treaties because nobody wants a company to be taxed twice on the money it earns. So these treaties were set up—in many cases, many years ago—to try to prevent double taxation.

However, over the past 10 to 15 years, what we have seen developing are not treaties that allow companies to be charged in just one place, but treaties that are part of an arrangement that allows too many international and multinational corporations to avoid paying tax in any country. We want to find ways in which we can assist countries in the developing world to take responsibility—to take care of their own taxation system and to invest taxes in their own society as they see fit, thereby building a capability that means they are no longer dependent on traditional aid.

[Patrick Grady (Glasgow North) (SNP)]

I warmly congratulate my hon. Friend on bringing forward the Bill. Does he agree that one country that could really benefit from being able to mobilise its own domestic resources through taxation is Malawi? He spoke about treaties being agreed some time ago. The treaty currently in place between the United Kingdom and Malawi is in fact between the United Kingdom and the colony of Nyasaland, because it was signed before the country achieved independence—something, of course, that we in Scotland hope to do eventually as well.

--- Later in debate ---

[Roger Mullin]

I was unaware of that case, but there is a parallel. When I was first asked to go to Namibia shortly after its independence to meet members of the Government in the large fishing port of Walvis Bay, they asked me and the others who were there to do a study on how they could Namibianise, as they called it, the fisheries sector. We asked why that was a priority, and they said, “We have one of the richest fishing grounds in Africa, but we’ve been under the apartheid regime of South Africa and that form of colonialism for years. There isn’t a single company in Walvis Bay owned by Namibians, and more than 90% of the people employed in the whole sector are non-Namibians.” The Namibian Government eventually took control and Namibianised the entire fisheries sector within 10 years, and it was more productive afterwards. It was a great success. Perhaps we tend not to hear about the successes where Governments in Africa and elsewhere take control and make a real difference for themselves.

I passionately believe that if we could liberate these countries to have more control of their own economies and taxation systems, that would move them away from any culture of dependency that some people say they have. It would be more liberating for them and better for everyone all round. I could be wrong, but I believe that it would be a better way, in the longer run, to achieve everyone’s objective of removing the scourge of the type of poverty that exists in these countries, with which we are entirely unfamiliar in the United Kingdom.

[Patrick Grady]

I thank my hon. Friend for giving way again; he is being very generous with his time, as he is in so many aspects of his conduct. One country in central Africa, the Democratic Republic of the Congo, should be one of the richest countries in the world. We all carry a little bit of the DRC around with us in our pockets because that is where the coltan that makes our mobile phones comes from. Yet because of the factors he is describing, it is one of the world’s worst conflict zones. Does he agree that effective tax treaties would not only mobilise resources for Governments in such countries to invest in the development of those countries but help to strengthen their governance, bureaucratic and civil service structures, which would in itself provide stability and development?

[Roger Mullin]

I agree entirely. I will respond to that with a slight oversimplification. Let us look at it in this way. If a country has become solely dependent on aid funding for its development and does not have full control of its own taxation and its own mineral resources, what kind of governance structure is set up to accommodate that? It will be about people chasing aid funding, not developing and liberating themselves economically. In some countries, quite a large of part of their administration and democracy is based on managing aid-related matters much less than on managing its own taxation and related matters. Therefore, the infrastructure will benefit through such moves.

I think that the Bill will provide a further advantage for the United Kingdom Government. In another field, I have been trying to persuade the Government to respond to my representations about international criminal activity in Scottish limited partnerships. I am delighted to see that the Financial Secretary is present to respond to the debate, because last week we had what I thought was an extremely constructive meeting about the issue. We recognised that to address the issue of Scottish limited partnerships we had to involve not merely the Treasury but the Home Office and its Criminal Finances Bill, as well as the businesses that would be conducting a consultation. Three different partners would need to be brought together, so that we could begin to create a joined-up approach.

What I am saying, and what my simple Bill is saying, is this. Would it not it be a good idea if those who are responsible for negotiating tax treaties with countries in the developing world had to take reasonable account of our own Government’s international aid policy, because otherwise the Government’s international aid policies, and what they want to achieve in that regard, could be countered in a negative way through the negotiation of tax treaties by others who do not support those aims? It must surely be helpful to governance here, as well as in other countries, to create a system that is much more joined-up. That is surely in everyone’s interests. Who is going to argue against it? Well, my hon. Friends and I can probably predict who, but it seems to me that no rational person could object to a Government’s pursuing their aims in a joined-up and rational manner.

--- Later in debate ---

[The Financial Secretary to the Treasury (Jane Ellison)]

I am grateful to colleagues on both sides of the House for giving me an opportunity to respond to this debate, because both this Bill and this subject are important. I want to respond in the constructive way in which the hon. Member for Kirkcaldy and Cowdenbeath (Roger Mullin) advanced his argument.

Let me make it clear from the start that I very much share the aims of the hon. Gentleman’s Bill. I share his belief in the importance of the UK’s efforts to tackle poverty in developing countries—we have achieved a great deal of cross-party consensus on that in recent years—and I think we would all very much agree with the thrust of his argument that it is absolutely vital to help countries to build capacity and to move beyond the need for aid.

[Patrick Grady]

Will the Minister give way?

[Jane Ellison]

I have only just started, so if the hon. Gentleman does not mind I will get a little further into my speech before I give way.

I reassure the hon. Member for Kirkcaldy and Cowdenbeath that tax treaties enable countries to achieve that objective by helping to encourage the stable environment that can pave the way for sustainable economic growth and facilitate revenue collection, which is another important point that he drew out in his remarks. Although we are in full agreement about the important principles of the Bill, the lack of feasibility in its practical requirements means that the Government are unable to support it. I will come on to outline those requirements, but I first want to say a few words about our commitment to aid in general.

[Patrick Grady]

That was the question that I wanted to ask. It would be very helpful for the House if the hon. Lady put it on the record that the Government remain committed to the 0.7% aid target, because there has been speculation in the press, including reported comments from the Chancellor, that their commitment might be wavering.

[Jane Ellison]

It was only this week that the Prime Minister responded directly on that subject, so the hon. Gentleman does not need my assurance because he has had it from much higher up the governmental food chain.

As the hon. Gentleman intervened earlier on the subject of Malawi, I want to get this point on the record. I have done a lot digging into this issue. It is true that we are negotiating an updated treaty with Malawi, which we hope to conclude soon, but the Malawian Government have stated that there is no evidence of any UK companies using the UK-Malawi treaty to deprive them of their revenues. An official statement from the Malawian Government said that

“both the Malawi Government and the British Government, as well as the nationals of the two countries, have evidently acted in good faith to ensure that neither party is exploited on the basis of the current agreement.”

I wanted to give the hon. Gentleman and the House that assurance on the Malawi treaty.

Commercial Financial Dispute Resolution Platform

Patrick Grady Excerpts

Thursday 15th December 2016 Commons Chamber

[George Kerevan]

The right hon. Gentleman makes a fair point. In my experience, it has been those very whistleblowers who have suffered most in terms of mental stress. They started off trying to present justice to the community, the banking world and small businesses, and ended up losing their job, their family and their partnerships. They are still suffering to this day.

The issue is also economic. We have had eight years where, although there has been economic growth, levels of productivity have been poor, if not flatlining. A lot of that is due to the underperformance of the small business sector. It is not just individual businesses that have been affected by mis-selling and the lack of resolution. It has carried on to a lack of investment in new businesses, and it has been an additional factor in important entrepreneurs withdrawing from the business process. Unless we find a permanent resolution, we will not be able to create the economic growth that I know all of us in this House hope to see.

[Patrick Grady (Glasgow North) (SNP)]

My hon. Friend is right that a number of Members have constituency cases. He will be aware of my constituent, Mr Neil Mitchell, whose business was forced into administration by the RBS Global Restructuring Group. He finds himself almost in the role of whistleblower by trying to take private legal action. Does my hon. Friend share my disappointment at the lack of willingness of RBS to engage in dispute resolution, in particular the unwillingness of the chief executive to meet my constituent personally? Does he share my hope that the proposals in the motion, which I was glad to sponsor, can be taken forward?

[George Kerevan]

I take my hon. Friend’s point. There are so many individual cases. They cut across all the nations of the United Kingdom and Members of all parties. My plea to the Minister is that we desperately need to find a permanent resolution.

Oral Answers to Questions

Patrick Grady Excerpts

Tuesday 29th November 2016 Commons Chamber

[Mr Philip Hammond]

We have done two things. Within the £23 billion that I announced last week to raise the UK’s productivity game is a significant increase in public R and D investment. We also said—we will do this before the Budget—that we would carry out a review of the way that tax support for privately funded R and D works, with the objective of ensuring that the UK is the most attractive place in Europe to do private R and D work. I will report at Budget 2017.

[Patrick Grady (Glasgow North) (SNP)]

T6. The autumn statement shows that, as gross national income falls, so will the total projected official development assistance budget. Can the Chancellor assure us that, within that, the Department for International Development budget will be maintained as much as possible and that, if ODA has to contract, cuts will have to fall on other spending Departments before DFID?

[Mr Hammond]

No, not necessarily at all. We spend our ODA in different ways, and different Departments have relatively small pools of ODA. Of course, the great majority of it goes through DFID. Where GNI contracts and the ODA budget needs to be trimmed accordingly, we will look to take away the lowest-value ODA spending. I think that that is the way the taxpayer would expect it to be done.