Banks and Communities

Paul Sweeney Excerpts

Thursday 11th January 2018 Westminster Hall

[Martin Whitfield]

Hear, hear.

Physical money is the most symbolic representation of trust, but there is strong evidence that banks want to move as quickly as possible away from the physical movement of cash on to online and electronic transfer. Any transition from face-to-face banking to online services must take place at a similar rate to a drive to remove cash from society. Significant numbers of our constituents rely on cash to facilitate their budgeting, and those who do must not be abandoned in the rush by banks to change.

Last year it was suggested that 10,000 free-to-use cashpoint machines are at risk of closure. Some 2.7 million people in the UK still rely entirely on cash. The free-to-withdraw cashpoints will vanish first from communities where the individuals who rely most on cash for budgeting are based. Additionally, among the small and medium-sized businesses that make up our high streets, the challenge of banking cash is increasing. I have examples of constituents in Prestonpans who now have to travel, sometimes by public transport, with their daily take to the nearest bank where they queue for up to 30 minutes to pay the money in.

Insurance and safety issues prevent them from storing cash on their premises, and the cost of contracting the deposit to security companies is prohibitively high. When the issue was raised with the banks, they said, “The money can be paid in at the post office,” but the post office will not take larger sums of money because it does not want to have the problem of transporting the cash either. In the constituency of my hon. Friend the Member for Bridgend (Mrs Moon), where tourism is a major industry, she has a business that banks more than £2 million a year but, following a bank closure, it has the responsibility for taking the cash elsewhere.

The closure of cash machines and the continued closure of high street branches are alienating business owners and older customers, fracturing still further their trust.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

I thank my hon. Friend for giving way in his compelling and comprehensive speech on a critical issue for society. Does he also recognise that the programme of closures seems to target disproportionately the poorest communities in our society? In my constituency, where unemployment is twice the national average, we have seen RBS closures in Possilpark, one of the poorest communities in Glasgow, and in Dennistoun, as well as the Clydesdale Bank in Springburn. But in one of the wealthiest parts of the city—for example, Byres Road—those banks are fully represented on the high street. What is going on there? Is that not a problem?

[Martin Whitfield]

Absolutely. I thank my hon. Friend for that intervention. There is a serious question to be asked about which communities the banks are changing their model of banking for. Is it for the most vulnerable? Is it those who are stuck on the wrong side of the digital divide? Certainly the evidence shows that bank closures have hit hardest in communities that have below average incomes.

Banks are and should be a trustworthy pillar of any community. They should stand proudly on our high streets as responsible hubs, along with post offices, GP and dental surgeries and the high street shops that draw constituents into their community. Recent figures from Unite have shown that the proposed closures of 62 branches will lead to 165 job losses. That is devastating for small communities, but we hear that the losses will be offset by the shifting of jobs to head office and call centres. However, the people losing their jobs are of course predominantly women responsible for families, who are unable to make long journeys to different areas. Are they being asked to move out of their communities? The change in banking models affects vulnerable customers most, with 90% of closures taking place in communities where the income is below the national average.

Members will recognise that the model being advocated by the banks is one in which few industries operate. They are founded on so little face-to-face contact, with such limited real-time relationship between consumers and the organisation, that they represent something more like social media network platforms. I wonder whether in fact the banking industry seeks to move to the Twitter and Facebook models. The relationship of trust that once existed between the bank manager and the individual is in serious danger of being lost to an algorithmic financial model.

I hope that my speech will not lead Members to think I am being luddite about digital reform. I embrace it, and what I am saying is as much as anything friendly advice to the banks, but I cannot envisage, with so many still not using online services, that we should continue dogmatically to push through changes to people’s accounts, affecting such large groups of people. Social media platforms had their users come to them; banks seek to migrate their customers onto their digital platforms. The trust that the banks have had and have treasured so much throughout their and their community’s history is at risk.

As I have made clear, the purpose of today’s debate is not just for the people I serve to hear the Government condemn bank closures. They want to hear how the Government can keep banks at the heart of communities and facilitate genuine discussion so that banking institutions can rediscover the value of the close link that they have had throughout their history with the communities that entrust them with their money—which, indeed, the banks used to invest elsewhere. Very recently the banks looked to those communities to save them and the financial engine, and communities stepped up. Communities are now looking to the banks to save the high streets and the bond of trust that is the cornerstone of the relationship. We need a social responsibility clause so that members of the communities to which our banks belong can have an integral and valued role, and trust can once again be established.

Business of the House

Paul Sweeney Excerpts

Thursday 11th January 2018 Commons Chamber

[Paul Maynard]

The hon. Gentleman is, quite rightly, an assiduous campaigner on this issue, and there are numerous debates on it. I am struck by how many of my constituents also contact me with these concerns. I congratulate him on his persistence and urge him to continue with those debates on this very important issue.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

The Minister will have been made aware today of the impending closure of the jobcentre in Maryhill and Possilpark that serves half of my constituency, but he may not be aware of a freedom of information request that was made for an impact assessment of that closure. That has determined that the nearest jobcentre will be three miles aware in Springburn, and that there will be a disproportionate impact on women, ethnic minorities, and people with disabilities and caring responsibilities. Will the Minister insist that the new Minister for Employment attends this House and makes a statement on the impact that this closure will have, and on how he will mitigate it?

[Paul Maynard]

The hon. Gentleman is right to raise this matter. He will have heard me say earlier that where longer journeys times were involved, we had a full public consultation on the decision. I ask him to bear in mind what I also said to the hon. Member for Glasgow South (Stewart Malcolm McDonald), which is that I would like him to focus as much as possible on the outputs of the process, which will lead to more work coaches assisting his constituents.

Public Sector Pay

Paul Sweeney Excerpts

Monday 4th December 2017 Westminster Hall

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

I thank my hon. Friend for her generosity in giving way. She makes an excellent point about productivity. It is correct that the UK has the lowest productivity of the G7 nations. That is not just to do with the private sector; a large part of it is to do with the public sector and the fact that we overwork, underpay and under-resource our public service workers. That has to stop if we are really going to grip the productivity issue in the UK.

[Laura Pidcock]

Absolutely. If our public sector workers worked to rule, this country would come to a standstill—it would collapse. It makes no sense at all to suppress these workers’ wages. As hon. Members have said, people who are skint do not spend in their local economy; they are very cautious with their spending.

Public sector workers need an above-inflation pay rise as part of a properly funded settlement. If it is not properly funded—public sector workers know this—the cuts will just continue through redundancies. If public sector workers do not get that pay rise, I will support them in whatever industrial action they take. If withdrawing their labour is all they can do to get this Government to see reason, they have my support.

Paradise Papers

Paul Sweeney Excerpts

Monday 6th November 2017 Commons Chamber

[Mel Stride]

The hon. Gentleman referred to a £6 billion tax gap, but the figure is not £6 billion; it is 6% of all tax that should be collected. On his suggestion that there should be a general principle or general rule, there is already a general anti-avoidance rule for exactly the purpose to which the hon. Gentleman has alluded.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

Over 100,000 properties in the UK, worth over £122 billion, are owned by overseas-registered UK companies in the British Virgin Islands and the Channel Islands, and that represents a conservatively estimated £2 billion in tax avoidance a year, enough to close the benefits fraud gap in one fell swoop. That is just a conservative estimate, however, and a third of the properties in the Land Registry do not even have property transaction data. Does the Minister agree that now is an opportune moment to grip the Land Registry and ensure it has compulsory registration of land and property in the UK, with the full structure of ownership and their value, so we can understand the full scale of the exploitation of UK land and property for tax avoidance purposes?

[Mel Stride]

This Government have brought far more property into the scope of taxation than the hon. Gentleman’s party ever did in 13 years in office, so I will not take any lectures on that point from him. [Interruption.]

Devolved Powers in Scotland

Paul Sweeney Excerpts

Tuesday 17th October 2017 Westminster Hall

[Mr Paul J. Sweeney (Glasgow North East) (Lab/Co-op)]

It is an honour to serve under your chairmanship, Mr Hollobone.

I thank the hon. Member for Stirling (Stephen Kerr) for securing this debate, and I congratulate him on his first speech in this Chamber. I also thank him for reminding us that this is the 20th anniversary of the historic referendum on devolution. It was generally accepted at the time that it was the settled will of the Scottish people to establish a Parliament in Edinburgh—they were clearly not in agreement with the hon. Gentleman. He reminds us that the Scottish Parliament was founded in the face of Tory intransigence—that must never be forgotten. I am heartened that he has changed his view since then. Perhaps the evidence of the Parliament’s credibility over its two decades of operation has made him see the light. I fear that we may be doomed to disappointment, because it is clear that there is continued intractable opposition from Conservative Members about how we progress the constitutional future of the United Kingdom sustainably.

Several Conservative Members referred to the need to move power closer to the people, yet the Strathclyde Regional Council was abolished because it dared to hold a referendum on maintaining a public-sector water supply company. How does that square with their position?

I have asked questions on two occasions—including to the Prime Minister—about the need to establish a constitutional convention to deal with the distribution of power and governance across the United Kingdom in the wake of Brexit, and I had a totally unsatisfactory response on both. It is clear that, when it comes to defending the integrity of the United Kingdom, the Tory party is utterly inept and totally incapable. That is unacceptable. It is becoming increasingly clear to me that the only presence in this House that will fight for a sustainable future built on solidarity in the United Kingdom is the Labour party.

I recall John Smith’s comment that there are two forces sawing away at the legs that support the Union—the Scottish National party, whose primary mission is to destroy the United Kingdom, and the stupid Conservative party, which always fails to rise to the occasion when it comes to delivering deep, meaningful and fundamental reforms to the constitution of this country. That is unacceptable, and it must be called out in this Chamber today.

Although the hon. Member for Stirling lauds the Scotland Act 2016, which enhanced the Scottish Parliament’s powers, he failed to say that the devolution of welfare powers was due to my hon. Friend the Member for Edinburgh South (Ian Murray), who tabled more than 120 amendments to the Bill, including on all of the welfare powers. Therefore, to suggest that it was all the initiative of the Conservative party is absolutely bogus and unacceptable.

[Stephen Kerr]

We did deliver it.

[Mr Sweeney]

They delivered it in the face of intransigence. They failed to rise to the occasion.

The hon. Member for Angus (Kirstene Hair) talked about NHS cuts, but did not propose to use the Scottish Parliament’s powers to deal with them meaningfully. Conservative Members talk about NHS cuts, but I have heard repeated claims that they have no interest in using the Scottish Parliament to deal with them meaningfully. My hon. Friend the Member for East Lothian (Martin Whitfield) said that 19% of Scots feel that the Scottish Parliament has not risen to the occasion; in fact, they wish to abolish it.

We have to raise our game. We have to look at what we can do to build a credible devolution settlement. We need to use the Scottish Parliament’s powers to maximise the benefit for the Scottish people.

[Mr Jack]

Will the hon. Gentleman give way?

[Mr Sweeney]

No, I do not have time—sorry.

Why has the SNP ignored the will of the Scottish Parliament five times since 2016 on key issues pertaining to things such as the public sector pay cap and raising tax in Scotland to deliver a progressive outcome? The hon. Member for Glasgow South West (Chris Stephens) talked about workers’ rights, but why is it that only the Labour party has consistently voted to lift the public sector pay cap in both Houses? That is clearly the case, and yet the Scottish Parliament only responded as a result of Labour pressure. The SNP’s record in both Houses is clear. [Interruption.] Its record reflects that, I am afraid.

The only real, practical and progressive measure for tax reform in the Scottish Parliament has come at the behest of the Labour party. Proposals for progressive taxation—potentially raising up to £600 million extra a year in Scotland—would deliver real, meaningful reform, because it would end austerity in Scotland. We would also add £5 a week more to child benefit, which would raise 30,000 children a year out of poverty. That is the opportunity in front of us today.

I am a child of the devolution settlement—I was only seven years old when the vote took place. We have to remember Donald Dewar’s words: it was not an event, but a process—

[Mr Philip Hollobone (in the Chair)]

Order.