Oral Answers to Questions

Paul Davies Excerpts

Monday 3rd March 2025 Commons Chamber

[Matthew Pennycook]

I would say two things to my hon. Friend. First, the older people’s housing taskforce recently reported, and we are weighing up its recommendations. We have also made clear through the national planning policy framework that we expect local authorities to take into account the types of tenure and homes that they need for their local areas, and local plans are the primary way that different types of housing for different demographic demographics should be brought forward.

[Paul Davies (Colne Valley) (Lab)]

3. What recent discussions she has had with the Secretary of State for Transport on the Penistone line project.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Alex Norris)]

Our Department is in regular dialogue with the Department for Transport and with regional mayors on how best to support local transport infrastructure investment, including the Penistone line project. With our decision to finally grasp the nettle and support a mass transit system, this Government are now providing unprecedented levels of investment for the region.

[Paul Davies]

The Penistone line connects Kirklees, Barnsley and Sheffield. Single-track sections constrain capacity and present reliability issues. On the day that the previous Conservative Government announced that Network North money would be spent on potholes in London, three out of six services running over a four-hour period were cancelled on the Penistone line. Does the Minister agree that the proposed improvements will boost connectivity, economic growth, education and healthcare? Will the Minister meet me and my colleagues to discuss advancing this project?

[Alex Norris]

I thank my hon. Friend for raising these important points. I totally agree with him that improved connectivity is essential for places to thrive, and that is a point that Mayor Tracy Brabin makes to me frequently. I can happily say that the case for West Yorkshire is heard loud and clear. I would of course be happy to hold such a meeting.

Non-Domestic Rating (Multipliers and Private Schools) Bill

Paul Davies Excerpts

Report stage
Wednesday 15th January 2025 Commons Chamber

[Sarah Bool]

No, I will keep going if the hon. Member does not mind.

I do not want to see any other schools close or any other children suffer as a result of this plan. I hope that colleagues across the House will join Conservative Members in supporting our amendments.

[Paul Davies (Colne Valley) (Lab)]

I am pleased to speak in favour of the Bill, which is a significant piece of legislation that aims to reform the non-domestic rating system in England. I welcome the Bill’s primary objective of creating a fairer and more balanced approach to non-domestic rating. By increasing the multipliers for large businesses, we will ensure that those entities contribute their fair share to the local economy. That change is particularly important as it addresses the disparity between large corporations and smaller businesses, which often struggle to compete under the current system.

The introduction of lower multipliers for retail, hospitality and leisure properties is a much needed relief for those sectors, which have faced significant challenges, especially in the wake of the covid-19 pandemic. By reducing the tax burden, the Bill aims to support recovery and growth, ultimately benefiting local communities and economies such as the hospitality and retail sector in my constituency.

One of the most notable aspects of the Bill is the removal of charitable relief for private schools. Although private schools play a role in our education system, it is essential to recognise that they operate as businesses and should be taxed accordingly. This change will generate additional revenue that can be invested in public services, including state schools. The Bill represents a step towards a more equitable and balanced tax system. It addresses the needs of various sectors, supports local economies and ensures that all entities contribute fairly to the public good.

[Damian Hinds]

There are problems with all taxes, which is why we end up with a blend of taxes. For businesses, there is tax on payroll, sales, profits and property. However, business rates are a particularly difficult and unpopular tax because they represent a fixed cost on the business that does not vary when the economy goes up or down, or according to the particular company’s success or growth, or a contraction in its sales or profits.

Over the years, I have heard many times from businesses in Alton, Petersfield, Horndean, Clanfield, Liss and elsewhere in East Hampshire about a desire for business rates reform. I am sure that a lot of small business owners were very attracted to what they heard from the Labour party—that it would to scrap business rates altogether. The Labour Government do not say that any more, but they still want us to believe that they are undertaking some great reform and cutting rates for our high street businesses. I am afraid it is all smoke and mirrors, because for those businesses, including the ones name-checked by the hon. Member for Erewash (Adam Thompson), the big effect that they feel right now is the cut in the relief for retail and hospitality business—not a small one, but from 75% to 40%.

It would be bad enough if that was all businesses faced, but it is not. They have to cope with all sorts of difficulties the whole time. We have rising labour costs—we support the increase in the national living wage over time, but not a hike in employer national insurance contributions at the same time. Because of what is happening to the threshold, there will be a massive effect on part-time workers. That will be very difficult for retail and hospitality businesses to swallow.

In and of themselves, the cuts to the multiplier for high street businesses are welcome, but we must remember that they are balanced by increases elsewhere in the system. Sometimes, Government Members talk about big businesses and corporations as some unwelcome part of our economy, but they are the biggest employers in the country and are fundamental to our economy. In the Red Book, these changes involve increases of hundreds of millions of pounds in business rates. Who will the increased rates affect? They will affect large supermarkets—a sector that is one of the biggest employers in the country—and hotels, which are a really important employer, as well as being fundamental to travel and tourism. Will the Minister also say a word about the expected effect on the national health service?

The blurb on the Budget says, “We are going to attack distribution centres, including those used by online retailers.” The word “including” does a lot of work in that sentence, because high street retailers also have distribution centres, and the changes will add to their costs, fuelling inflation on food and everyday consumer goods.

Employment Rights Bill

Paul Davies Excerpts

2nd reading
Monday 21st October 2024 Commons Chamber

[Paul Davies (Colne Valley) (Lab)]

Let me begin by proudly declaring my membership of Unite, the GMB and the Community trade union, and at some time in the past, a member of the National Union of Mineworkers, like my hon. Friend the Member for Blyth and Ashington (Ian Lavery).

The Bill will transform the lives of workers across the United Kingdom. It is not just a set of reforms; it is a commitment to the hard-working people of this nation, a promise to ensure that their rights are protected and their voices are heard. For far too long, many workers in this country have endured poor working conditions, low pay, and a lack of job security. The previous Conservative Government failed to address these critical issues, leaving millions of workers vulnerable and undervalued. The Bill is the Government’s response to these injustices. It is a comprehensive package of reforms designed to upgrade workers’ rights, tackle poor working conditions, and benefit both businesses and workers. It is part of the Government’s broader effort to deliver economic security and growth to businesses, workers and communities.

One of the key aspects of the Bill is the improvement of pay and productivity. We recognise that fair wages are essential to the wellbeing of workers and their families. The Conservative Government’s policies led to stagnating wages and widening income inequality. The Bill aims to rectify that by ensuring that all workers in the UK are paid fairly for their hard work, and that businesses are incentivised to invest in their workforce. From my conversations with businesses and employees in my constituency, it is clear that fostering sustainable businesses and promoting growth are crucial. I have observed numerous businesses forming partnerships with their workforces, grounded in fair treatment that acknowledges employees’ dedication and hard work. The Bill supports and strengthens that approach. It also represents a new approach, a pro-business, pro-worker strategy that recognises the connection between economic growth and workers’ rights. By addressing issues such as poor working conditions and low pay, this Government aim to create a more balanced and sustainable economy.

The Bill is a testament to the Government’s commitment to creating a fairer and more equitable society. I am proud to support it, and to stand up for the rights of workers in my constituency and beyond.