Oral Answers to Questions

Paul Scully Excerpts

Tuesday 6th July 2021 Commons Chamber

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

What steps he is taking to tackle minimum wage non-compliance in the labour market.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

The Government are absolutely committed to ensuring that anyone entitled to be paid the minimum wage receives it. Since 2015, we have more than doubled the enforcement budget to almost £30 million and ordered employers to repay £100 million to 1 million workers.

[Gill Furniss]

The Low Pay Commission has called on the Government to recruit a new director of labour market enforcement as an urgent priority, but the Government have dragged their feet for almost a half the year while claims are falling and waiting times are rising. Can the Minister inform the House when that vital post will be filled? And “in due course” simply does not cut it.

[Paul Scully]

Cracking down on non-compliance in the labour market is a priority for the Government, and the new director of labour market enforcement will be appointed as soon as possible, but the temporary vacancy has no impact on workers’ rights. The three enforcement bodies themselves are responsible for overall work and enforcement responsibilities, and they will continue to work hard to protect workers and bring enforcement actions against employers who break the rules.

[Mark Logan (Bolton North East) (Con)]

What steps his Department is taking to support the Government’s levelling-up agenda.

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[Bell Ribeiro-Addy (Streatham) (Lab)]

What recent steps he has taken to help improve employment rights and protections for gig economy workers.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

The recent Uber Supreme Court judgment upheld the law that those who qualify as workers in the gig economy are entitled to the same employment rights and protections as workers in other parts of the economy. The Government have one of the best records on employment rights in the world, and we have just increased wages again for the UK’s lowest paid workers.

[Bell Ribeiro-Addy[V]]

According to the McKinsey Global Institute, 5 million people in the UK work in the gig economy, which is around 15.6% of the UK’s total full and part-time workforce. That is 5 million people without legal rights to statutory sick pay, holiday pay, redundancy pay, maternity leave or minimum wage. February’s Supreme Court ruling in favour of Uber drivers was a momentous step forward for gig economy workers. In the same month, however, the Minister for Small Business, Labour Markets and Consumers refused to back Labour’s call to enshrine this in law, so I ask the Minister again for the sake of the millions of gig economy workers, will the Government finally step up and enshrine the rights of gig economy workers in law ?

[Paul Scully]

Employment law is clear that an individual’s employment rights are determined by their employment status, which in turn is determined by the detail of their working arrangement. Government actively encourage businesses to ensure that they are adhering to their legal obligations and that individuals are treated fairly and in accordance with the law.

[Rachel Hopkins (Luton South) (Lab)]

What steps he is taking to support high street businesses.

[Sam Tarry (Ilford South) (Lab)]

What steps he is taking to support high street businesses.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

Our comprehensive economic response to business is worth more than £352 billion, including grants, the furlough scheme, tax deferrals, and business rates relief. We have extended the protection of commercial tenants from eviction and debt enforcement due to non-payment of rent until 25 March 2022.

[Rachel Hopkins]

Businesses in Luton South, whether they are in the town centre, Bury Park or High Town, have told me that additional support is required to safeguard their future and local jobs. Small businesses need Government to bring forward a plan to support them as we recover, particularly those that have had to take out loans to pay their rent. Does the Minister recognise that a proper debt restructuring plan will be vital in alleviating the burden of debt and in helping small businesses get back on their feet?

[Paul Scully]

It is important, yes, that first we reopen. I am glad that the Prime Minister is making encouraging signs regarding 19 July, so that small businesses in particular can welcome back customers and start to recover; that helps get into the recovery. We will continue to flex and extend our support for those businesses. Much of that support extends to September and beyond.

[Sam Tarry]

Businesses in Ilford represented by Ilford business improvement district have been damaged so severely by the pandemic, often closing or finding their revenues down to about 30% of what they were pre pandemic. Many of those businesses now have significant debts and rent arrears. I would like to know, as would businesses in Ilford, what plans the Minister has to support the thousands of businesses struggling to pay their rent.

[Paul Scully]

I have talked about reopening and recovery. We need to build back better and build resilience into our high streets and the ecosystems that make our communities. We have extended the moratorium on rents until next year so that we can legislate to encourage proper conversations between landlords and tenants. We are also reviewing the Landlord and Tenant Act 1954.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Many businesses on our high streets face financing their reopening in July while dealing with quarterly rents, emergency loan repayments, business rates and VAT deferrals, all while furlough support is being withdrawn. UKHospitality has now warned that the sector faces coming out of lockdown with more than £6 billion of Government debt. Not all sectors are going to bounce back overnight; they need a Government who are on their side at this crucial time. Does the Minister think it is fair for hospitality businesses to pay a £100 million business rates bill from 1 July? Why do the Government not extend the relief period, as the Labour-led Welsh Government have done, and what discussions is he now having on the root-and-branch reform of business rates to allow the reintegration of the high street that was promised in the Conservatives’ 2015 manifesto but has still not been delivered?

[Paul Scully]

Different businesses and sectors have different views on furlough. UKHospitality is explaining that furlough is starting to become a problem, while other sectors want it extended further. On business rates and other support, the Chancellor deliberately went long in his Budget; he erred on the side of generosity. It was always about data, not dates, so that was always going to be flexible. The fundamental business rates review that we are conducting will report back this autumn.

[Chris Green (Bolton West) (Con)]

What steps his Department is taking to support UK research and development.

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[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

What recent discussions he has held with representatives of the automotive sector.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

Ministers in this Department have regular and productive discussions with the automotive sector on opportunities in the UK. Through our efforts, just last week—five years after the EU referendum—a new electric vehicle hub in Sunderland was announced, which will benefit the whole sector. Nissan still remains in the UK. Nissan is investing in the UK.

[Gerald Jones [V]]

The automotive sector has been through a hugely difficult time, impacting on the industry and the supply chain right across the UK, including in my constituency of Merthyr Tydfil and Rhymney. I very much support the recent announcements of new opportunities, supporting jobs and job opportunities in England. What recent discussions has the Minister had with the Welsh Government on this issue to ensure that support and opportunities for the automotive sector reach all parts of the United Kingdom?

[Paul Scully]

My colleagues across the Department speak with the Welsh Government regularly, and I have quad meetings with my counterparts in Wales, Scotland and Northern Ireland. We absolutely recognise the importance of the automotive sector to the UK’s economy, and indeed to the Welsh economy, and are continuing to invest in it. By supporting innovation in the sector’s transition to zero-emission technologies, we are securing existing jobs and creating jobs for the future.

[Mr Speaker]

I call Richard Holden—not here. This is not very good. I call Bob Seely—not here. This is the worst school register anybody could have.

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[John Penrose (Weston-super-Mare) (Con)]

What discussions he has had with the Competition and Markets Authority on the independence of open banking.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

I and my officials have regular conversations with the Competition and Markets Authority on a wide range of issues, although open banking is normally handled by the Exchequer Secretary to the Treasury, my hon. Friend the Member for Saffron Walden (Kemi Badenoch). We support independence as a key criterion for the future open banking governance model.[Official Report, 20 July 2021, Vol. 699, c. 6MC.]

[John Penrose]

I am delighted to hear that the independence of open banking is a core principle. Would my hon. Friend agree that open banking potentially creates a much wider idea or direction of travel for open everything? All sorts of other sectors could benefit from this approach to allow switching to be done much more easily and much more quickly. We could open up to competition many more sectors of our economy.

[Paul Scully]

I totally agree with my hon. Friend. He is absolutely right, because we want to continue the UK’s lead in open banking, but there is so much more to do with smart data. We will learn the lessons that allow us to lead in open banking and apply them to all those other areas that he mentions.

[Mr Speaker]

Final question—Dr Julian Lewis.

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[Nickie Aiken (Cities of London and Westminster) (Con)]

Independent businesses are the beating heart of our high streets, and my constituency is fortunate because it is brimming with independent shops that are ready to sell everything from artisan food to emerging fashion brands. Last weekend we marked Independents’ Day, and I visited Marylebone, where I was delighted to visit Paul Rothe & Son Deli, Penton’s hardware shop, and Sandfords flower stall. Does my hon. Friend agree that we must do everything in our power to support independent businesses this summer, and encourage people back to city centres, including central London and every other city centre in the United Kingdom, to take advantage of those brilliant unique shops?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

My hon. Friend is a doughty champion of small and independent businesses in her constituency, as well as of those big businesses that everybody knows around the world, not just the country. She is right to say that if people come to the centre of London, which has been remarkably quiet and slow to recover, they will see the benefits of those independent shops, as well as being able to enjoy everything that the most fantastic global city, represented by my hon. Friend, has to offer.

[Alex Cunningham (Stockton North) (Lab)]

  CF Fertilisers in Billingham in my constituency is one of the two remaining primary ammonia plants in the UK. The Department for Transport anticipates that 80% of UK domestic shipping will rely on ammonia for fuel by 2050, and CF Fertilisers will have a critical role to play. It has been hugely proactive in reducing emissions, but it is reliant on carbon capture and storage to decarbonise further. What plans does the Minister have to select and progress ammonia decarbonisation within phase 1 of the CCS programme, plus the sequencing process?

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[Mark Eastwood (Dewsbury) (Con)]

I am delighted that Dewsbury has been awarded £24.8 million after its towns fund bid. Will the Minister outline the benefits that that investment will have for retailers and other businesses in my home town?

[Paul Scully]

What a fantastic story. In just 18 months, my hon. Friend has shown the impact of his work across his home town. He is absolutely right. Dewsbury’s transformative £24.8 million investment will make it a more attractive place to live, work and invest by supporting projects that deliver that enhanced business environment, such as the arcade to be reopened to small independent businesses and Dewsbury market to be transformed into a modern-day market, with fibre network improvements and repurposing underused sites. This is really going to boost Dewsbury’s reputation as a place for starting and growing a business.

[James Daly (Bury North) (Con)]

In November last year, the Government report on the first statutory review of the pubs code was published. It proposed certain changes that could improve the operation of the code. Will my hon. Friend update the House on whether those changes have been implemented? Does he believe that further statutory provisions are required to adequately protect the interests of tied tenants and ensure a future for thousands of pubs throughout the country?

[Paul Scully]

I thank my hon. Friend for his interest in a really important area of supporting pubs. We will shortly publish a consultation to seek views on detailed options to improve the practical operation of the pubs code. It is important that all interested parties are able to comment, given the code’s complexity and potential impact on property rights. It covers just under 8,700 tied pub tenants in England and Wales, so it is only a small proportion of businesses in the hospitality sector, but a very important proportion. Next year, we will launch a second statutory review to seek stakeholders’ views on the effectiveness of the pubs code.

[Dame Diana Johnson (Kingston upon Hull North) (Lab) [V]]

  Could one of the Ministers tell me whether they agree that it is wrong for companies that have received millions of pounds of support from taxpayers to now seek to fire and rehire their staff?

[Paul Scully]

I thank the right hon. Lady for her continued interest in this important area. I have said time and time again that it is not acceptable for employers to use such bully-boy negotiating tactics. ACAS has done the quantitative work on fire and rehire. We are asking it to write guidance, but also to do some more detailed work. If we need to act, we certainly will act.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

I heard from pilots at the travel day of action about the disaster facing their industries if coronavirus restrictions are not relaxed soon. As the Minister will know, our aviation, travel and tourism sectors were the first to be impacted as a consequence of covid-19, with passenger numbers collapsing from March 2020. With recovery likely to take a number of years, these will also be the last sectors to revive. Can my hon. Friend tell me what help he will be giving to the aviation industry after 19 July if the Transport Secretary does not open up the airways?

[Paul Scully]

Travel has an impact beyond the sector itself and the impact of reopening our cities. We will continue to work with the sector to offer it support and to flex our support. My hon. Friend mentioned weddings. On 21 June, the restrictions on weddings were eased, which I was pleased to see. The number is now determined by how many a venue can safely accommodate with social distancing measures in place. I am looking forward to the day when those final social distancing measures can melt away.

[Peter Grant (Glenrothes) (SNP)]

This morning the Government tweeted to tell us that about 1.7 million businesses had been allowed to borrow money under the various coronavirus loan schemes. Do they also intend to send out a tweet to tell us how many jobs have been lost and how many businesses have been destroyed by the decision to exclude 3 million business owners from any coronavirus support whatever?

[Paul Scully]

I have continued to converse, whether in person or on social media, with some of the people leading the campaign in this area. As I have said before, a lot of the schemes we put in place have been reverse engineered so we can deliver them quickly, at pace and at scale. We have not been able to save every business and every job, but clearly, we will look to not only reopen and recover, so that we can bounce back better and protect as many jobs as we can, but create new jobs as well.

[Sir Desmond Swayne (New Forest West) (Con)]

Is there anything that Ministers can do to ensure that small builders get access to building materials that are increasingly in short supply?

[Paul Scully]

There is a shortage of building materials due to global demand outstripping supply. We are working with the Construction Leadership Council’s product availability group to identify and resolve these challenges.

[Grahame Morris (Easington) (Lab)]

  The Government’s refusal to act on the recommendations of the Business, Energy and Industrial Strategy Committee’s report is nothing short of a complete and total betrayal of retired mineworkers and their widows. Notwithstanding the Minister’s reply about ongoing discussions on the sharing arrangements, why are the Government blocking the transfer of £1.2 billion of the miners’ own money from the reserve fund to immediately uplift the pensions of miners and their widows struggling to make ends meet?

[Damien Moore (Southport) (Con)]

Does my hon. Friend the Minister agree that the billion pound investment package recently unveiled by Nissan UK is a further post-Brexit mark of confidence in UK science, technology and manufacturing? Will he do more to ensure that such investment is forthcoming in the next few years?

[Paul Scully]

I agree with my hon. Friend about Nissan’s investment and the confidence it has shown in this country, which is a ringing endorsement. Indeed, the Secretary of State is up in Ellesmere Port talking to Stellantis about its investment in this country as well.

[Wera Hobhouse (Bath) (LD) [V]]

Community energy has manifold advantages, but its full potential cannot be unleashed, mainly because of regulatory barriers. Will the Minister meet me and Power for People to discuss how we can work with Government to find a way forward?

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[Catherine West]

It is. In Question 31, I asked about green jobs and a scheme called Aquind, sponsored by Mr Temerko, who is a funder of the Tory party to the tune of £1 million. The Minister for Business, Energy and Clean Growth quite rightly recused herself from answering the question because she has an interest, but can anyone else on the Front Bench answer my question about green jobs? Has a national security assessment been done of the Aquind project for an interconnector between France and the UK and its data implications?

[Paul Scully]

Further to that point of order, Mr Speaker. My right hon. Friend the Minister for Business, Energy and Clean Growth was right to recuse herself from the decision to ensure probity. We will find an answer for the hon. Member for Hornsey and Wood Green (Catherine West) from the Secretary of State.

[Mr Speaker]

Right, thank you.

I am now suspending the House for three minutes for the necessary arrangements for the next business to be made.