Community Bank Closures

Peter Aldous Excerpts

Thursday 8th February 2018 Commons Chamber

[Peter Aldous (Waveney) (Con)]

I congratulate the hon. Member for Stoke-on-Trent North (Ruth Smeeth) and my hon. Friend the Member for Hazel Grove (Mr Wragg) on securing the debate.

This matter is of specific interest to me. Early in December, Lloyds bank announced the closure of three branches in the Waveney Valley area of north Suffolk: in Bungay, in my constituency, and in Halesworth and Southwold in the constituency of my hon. Friend the Member for Suffolk Coastal (Dr Coffey). I should declare an interest at this point, because I am both a personal and a business customer of the Halesworth branch. Shortly after the Lloyds announcement, NatWest announced the closure of its branch in Beccles, which is also in my constituency.

My main concern is that, if Lloyds proceeds with the closure of its Bungay branch, there will be no bank left in the town, and I believe that we need policies to prevent that from happening. Some may say that I am a luddite and that we cannot hold back the inevitable march of the internet and modernisation, but what concerns me is that some banks are closing branches in an indiscriminate, non-strategic way that will have an adverse impact on the elderly, the disabled, those without their own transport, small businesses, and the economies of the towns and hinterlands that will be left with no bank standing. In the last two years, Barclays and Norwich and Peterborough building society have closed their branches in Bungay. If Lloyds proceeds with its branch closure in May, there will be no bank left in the town. That has upset many people who transferred their accounts to Lloyds following the previous closures, and it will have a particularly negative impact on the elderly and disabled and on small businesses.

I have three specific concerns. First, if Lloyds proceeds with its closure, there will be no cashpoint machine with 24/7 access in the town centre. Bungay has three street fairs a year, which bring a significant amount of business into the town. Last Christmas an estimated 1,200 to 1,500 people came along, and there were long queues at the Lloyds cashpoint. Many of the traders who go to the street fairs only handle cash, and there is a real worry that, if it is not available locally, the fairs—which add so much to the vibrancy of the town—will suffer.

Secondly, it is important to emphasise that many businesses, both in the towns and in the countryside, still use cash and cheques. The lack of immediate access to cash and deposit points will, at least in the short term, cause considerable inconvenience and added expense. On the basis of my experience as a partner in a local family farm, I know that for several farmers the easiest way to handle payments from the grain merchant is still via cheques, and that quite often the rents paid by small businesses for farm buildings and workshops are still paid in cash. It should also be borne in mind that the change to internet banking in rural areas will require considerable improvement in broadband connectivity, an issue about which we have heard throughout the debate.

Thirdly, the lack of a bank in Bungay will affect the town’s ability to draw in customers from the surrounding area. Lloyds is redirecting its customers to its Beccles branch. That may mean that people who came into Bungay once a week to go to the bank, to do their shopping and to have a coffee or a meal may now do all that in Beccles. I met Lloyds representatives on 4 December, when I put those points to them. I asked them to reconsider their decision to close the Bungay branch. It is disappointing that I have not yet had a response from them, although I hope that that means they are giving the matter serious consideration.

With regard to NatWest’s closure in Beccles, I had a meeting with the bank’s representatives last month. I am disappointed with their decision, but they took me in some detail through why they reached the decision to close the branch and how they are now engaging with their customers. They are prepared to work with the local community. As well as a mobile bank and closer working with the post office, they have plans for a community banker who will have a base in the town at set days during the week, possibly in the library and the town hall.

I have mentioned that the closure of Lloyds in Bungay would result in there being no ATM accessible 24/7. With this in mind it is necessary to ensure that there remains a good network of cashpoints across rural Britain, where consumers and small businesses use cash to a greater extent than in urban areas. I thus urge the Government to support the Which? and Federation of Small Businesses campaign to get the Payment Systems Regulator to ensure suitable measures are in place to guarantee that consumers can easily access their money without charge.

It is important that measures are introduced that can help to avoid a situation where towns are left without a single bank. That could be done in a variety of ways, in particular by building on the post office network, which generally has a better rural reach than that of high street banks. The policies put in place, first by the coalition Government and then the current Government, have been successful in making the post office network more resilient.

In Bungay, the post office is in the newsagent and there is a drawback of lack of space. In towns at risk of having no bank, consideration should be given to providing additional funding to put in place a more substantial post office branch. Ultimately, I would look for this to be funded by the banks. Alternative options that could be considered are mutual societies or pop-up banks, where the high street banks join together to sustain a presence in the town.

Bungay was a pioneer of provincial banking, with Gurney’s, a precursor of Barclays, opening one of its first branches in the town in 1808. Some 210 years on, it will be a very sad day if the town no longer has its own bank and we must do all we can to ensure that that does not happen.

Taxation: Beer and Pubs

Peter Aldous Excerpts

Tuesday 31st October 2017 Westminster Hall

[Peter Aldous (Waveney) (Con)]

It is a pleasure to serve under your chairmanship, Mr Owen. I congratulate my hon. Friend the Member for Dudley South (Mike Wood) on securing this debate. I will focus on the specific issue of small breweries’ relief. I ask that the Government consider removing export volumes from the relief’s calculations.

There is clear evidence that the current arrangements hold breweries back from increasing exports, investing in buildings and equipment, and creating new jobs. St Peter’s Brewery near Bungay in my constituency was established in 1996 and set out specifically to target the export market. Its exports to 50 countries make up 42% of its turnover. St Peter’s is a great British success story, but it is constrained from doing better by the current structure of small breweries’ relief. Although the relief is generous to microbusinesses, it discourages exports by breweries looking to grow and it significantly disadvantages small and medium-sized brewers above the threshold that have export potential. St Peter’s advises that removing the duty on exports would enable it to invest in new buildings and equipment and to increase their workforce by five from 18.

St Peter’s is not alone in making the case for removing export volume from the SBR calculations. That case is also supported by the Society of Independent Brewers, which describes it as a “no brainer”, and by the British Beer and Pub Association, which includes it in its compelling eight-point export strategy. As Brexit approaches, it is vital that we realise the full export potential of an industry that is a fundamental part of the British brand. A relatively small fiscal change in next month’s Budget would enable breweries such as St Peter’s to realise their full potential, be part of a great British success story and create new, much needed jobs in their local communities.

[Several hon. Members rose—]

Oral Answers to Questions

Peter Aldous Excerpts

Tuesday 18th April 2017 Commons Chamber

[Mr Hammond]

As I have already said, this should be seen for what it is: an opening gambit in a long and complex negotiation.

[Peter Aldous (Waveney) (Con)]

T8. Britain’s coastal communities have enormous potential for sustainable economic growth in the trade, energy, fishing and tourism sectors. Much good work is being done, but I would be grateful if my right hon. Friend gave us an assurance that no stone will be left unturned to ensure that coastal Britain realises its full potential.

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

As someone who also represents a coastal community, I am pleased to say that coastal areas will benefit from nearly £40 million of investment through the latest round of the coastal communities fund, and that we will do all we can to get the very best possible deal.

Oral Answers to Questions

Peter Aldous Excerpts

Tuesday 1st March 2016 Commons Chamber

[Damian Hinds]

In the “Driving investment” paper, the Government absolutely recognise the need over time to change the fiscal structure. The scale of what my right hon. Friend did reflects the fact that the figure stood at £1.3 billion. The most recent of the headline tax reductions took effect on 1 January this year.

[Peter Aldous (Waveney) (Con)]

I echo these points. The North sea oil and gas industry is facing very serious challenges at this time. Working with the industry and the Oil and Gas Authority, the Treasury can help to overcome the problems. May I urge the Minister to include in the Budget tax-cutting initiatives and support that build on last year’s measures and help to attract investment to this basin and to ease the worries of many very worried people?

Connaught Income Fund

Peter Aldous Excerpts

Tuesday 12th January 2016 Commons Chamber

[Guto Bebb]

The hon. Lady has asked my fourth and fifth questions.

My fourth question is this: 10 months after the mediation was cancelled, are we in a position to get an update from the FCA, and, if we are, how soon can that update be offered?

Finally, we need an end date. We need to know when this investigation will be completed. I ask the Minister to implore the FCA to provide that information.

[Peter Aldous (Waveney) (Con)]

I understand this situation very well. My constituent Charles Rodbourne has lost the bulk of his life savings. This scandal has been going on for seven years now. Will my hon. Friend urge the Minister to do all she can to bring it to a conclusion as swiftly as possible, as so many people across this country are affected?

[Guto Bebb]

I join my hon. Friend in urging the Minister to do just that.

In relation to my five questions, I think that the FCA has hidden behind its claims that, because this is a live investigation, it is not in a position to comment. Will the Minister confirm that there is in fact no statutory reason why the FCA cannot provide a progress report for those who are interested in this issue?

Finally, it is important to address the ongoing concern about the way in which the IFA community is being treated by the regulatory authorities in relation to the Connaught issue. Emails and other information in the public domain imply that the Financial Ombudsman Service, when dealing with complaints about Connaught, is instructing its caseworkers to find against IFAs regardless of the facts of the matter, and indeed regardless of the fact that there is an inquiry and an investigation into possible fraudulent wrongdoing within Connaught in the first instance.

It is entirely appropriate that independent financial advisers should be held to account for any poor advice offered. However, that would demand that each case, or each complaint brought to the FOS, is considered on merit. The instructions to FOS officials to ignore such evidence of wrongdoing and the on-going investigation into what happened in Connaught makes it very difficult for us to have any confidence in the decisions made by FOS in relation to complaints against individual IFAs.

I understand the need to ensure that both the FOS and the FCA operate independently of each other. However, is it too much to ask that they at least consider each other’s actions before making decisions that are clearly based upon only a partial understanding of the facts?

Tax Credits

Peter Aldous Excerpts

Thursday 29th October 2015 Commons Chamber

[Peter Aldous (Waveney) (Con)]

Although the Government are pursuing the right strategic course of supporting working families through the tax system and by encouraging earnings growth, it has become clear over the past few weeks that the way in which the policy was being implemented would leave many poor and vulnerable families harshly exposed. Today, as a result of the efforts of my right hon. Friend the Member for Birkenhead (Frank Field) in securing this debate, we can properly consider what other transitional measures can be bought in to support those families.

The current arrangements are in need of reform. The Government’s proposed transition measures are welcome. The increase in the personal tax threshold will enable working taxpayers to keep more of the money they earn. The introduction of the national living wage is a bold and radical move for which my right hon. Friend the Chancellor of the Exchequer should be applauded. The Government have rightly prioritised working families through the offer of 30 hours’ free childcare. However, it is clear that those initiatives alone do not go far enough and more transitional support is needed.

In my Waveney constituency, there are many people on low wages, often working part-time. They would like to work longer hours and earn more, and through hard work and training they would like to climb up a ladder of workplace progression. The problem is that that option is not currently available to them. There has been an economic decline for 40 years: traditional industries have gone, the factory gates have closed and the fishing industry is a very poor shadow of its former self. That scene is repeated in many places around the country.

To their credit, the coalition Government and this current Government have recognised that fundamental flaw in the country’s economy, and they are putting in place policies that will reverse that decline and bring new jobs to many areas. Such policies will ensure that, in the long term, we will have a balanced economy where growth is not concentrated in a few places and opportunities are available across the country. Policies such as devolution and investment in infrastructure and in education and skills will work, but they will not do so overnight. They will need time and they may well need to be refocused, redesigned and rebooted.

In the short term, there is a need for support to ensure that the removal of working tax credits does not punitively hit those on low wages. There is no silver bullet and there may well be a need for more than one initiative. The Treasury will need to weigh up very carefully what alternative tax raising measures may be necessary in order to produce a balanced budget and to remain on course to eliminate the deficit. It is very important that any tax increases are progressive and do not hit unfairly the poorest members of society.

On additional mitigating measures, I make four suggestions. First, full consideration should be given to phasing in the withdrawal of working tax credit. Spreading it out would be fairer and rising wages would help to reduce the impact. Secondly, increasing the point at which employees start to pay national insurance should be considered. That would be more effective than a further increase in the personal tax threshold, as people will pay national insurance from £8,164 compared to £11,000 for income tax. Thirdly, the offer of tax breaks for businesses that voluntarily and more quickly move to paying the national living wage should be looked at.

Finally, we need to review the design of universal credit. It is in many respects bizarre that the introduction of universal credit and the withdrawal of working tax credits are being carried out at the same time by different Departments. That might explain why the Government are in the position that they find themselves in today, with policies that are not properly co-ordinated. Working tax credits were introduced by Gordon Brown when he was at the Treasury, with apparently limited consultation with the Department for Work and Pensions. That is a fatal flaw at the heart of Government that should have been addressed a long time ago.

The great advantage of universal credit is its simplicity. It will boost employment and make it easier for people to understand why they are better off in work. However, it should be made more flexible. Much of the current emphasis is on getting one person in a household into work. There should be more focus on boosting employment within the household as a whole. There is a need to rebalance the incentives that universal credit creates to better support single parents, second earners in families with children and the disabled. Universal credit should be made easier to use. It should not penalise families whose earnings and outgoings do not fit into a neat monthly pattern.

The 800,000 self-employed households that will move on to universal credit have a particular problem in having to start reporting their income on a monthly basis, rather than annually through the HMRC self-assessment. That will create a huge bureaucratic burden that could hit low earners hard.

[Martin Vickers (Cleethorpes) (Con)]

I agree with my hon. Friend. Like me, he represents a coastal community with low pay. Does he acknowledge that, as well as the help that needs to be given to those who are in receipt of tax credits, we must consider the spending power that will be taken out of the local economy if we proceed with the proposals that were outlined by the Government, which will be very detrimental to our areas?

[Peter Aldous]

My hon. Friend is quite right. There are some very clever people in the Treasury, but they often look at the country as a whole. They need to realise that things are very different in different places.

I have two final points on universal credit. The requirement to provide childcare bills on a monthly basis could mean that parents whose childcare costs are higher at certain times of the year will be financially worse off than they are under the current system. For those who receive help with their rent, the option for payments to go straight to the landlord should be more easily accessible.

In the longer term, the Government need to take stock of their approach to welfare reform. They have been right to rise to the challenge and most of their policies have been successful. How they move forward needs careful thought and reflection. Perhaps alongside the benefit cap there should be a benefit ceiling. In the short term—in the next four weeks—there is a lot to be done to get this policy right: to ensure that it is fair, that it does not penalise the working poor and that it provides them with a ladder of workplace progression.

Tax Credits

Peter Aldous Excerpts

Tuesday 20th October 2015 Commons Chamber

[Peter Aldous (Waveney) (Con)]

The Government are pursuing the right strategic approach by moving from supporting working families through the benefit system to encouraging earnings growth and providing support through the tax system, but they need to think carefully about how they implement the policy to ensure that working families on low wages are not hit hard and unfairly. I urge them to address these worries before the changes to working tax credits come into effect next April.

The Government are doing the right thing by putting in place policies that in the long term will enable us to move to a high-skills, high-wage and low-welfare economy that is not concentrated in one place—London and the south-east—but offers opportunities for all across the country. The decline which these policies will address has taken place in many parts of the country, including my constituency of Waveney, over the past 30 or 40 years. They will not work overnight. They will need time and they might need to be refocused, redesigned and rebooted.

In the short term, there is a need for other policy initiatives to ensure that the removal of working tax credits does not indiscriminately and punitively hit those on low wages. My concern is that over the next four years the welcome initiatives that have been made so far will not on their own be enough to prevent working families on low incomes from facing significant reductions in income that could cause real hardship. They are the hard-working families doing the right thing that we can all say we support.

Since 2010, the coalition Government’s and this Government’s stewardship of the economy has helped to create a record number of jobs and has stimulated a genuine and seemingly sustainable growth in wages. That has improved the economic outlook and will enable people to increase the hours they work and move on to better paid jobs. However, such opportunities are not available evenly across the country; they are in some places, but not in others. The Government must do more to support working families as they pursue this right but difficult policy. Phasing in a reduction in employee national insurance contributions should be considered, as should changes to universal credit. Universal credit has the advantage of simplicity, but it could be made more flexible.

The Government are doing the right thing, but this policy must be introduced with more support for those who are also doing the right thing and looking to work more. That is something that I, as a one nation Conservative, ask the Government to do.

Tax Credits

Peter Aldous Excerpts

Tuesday 15th September 2015 Commons Chamber

[Peter Aldous (Waveney) (Con)]

In laying this instrument before the House, the Government are pursuing the right strategic course of supporting working families through the tax system and encouraging earnings growth rather than doing that through the benefits system. For that reason, I shall support it, although I have serious concerns about the impact on working families in the short term over the next two to three years. I urge the Government to address these issues in the coming months before the measures come into effect next April.

The Government are right to be going in this direction. The current system is extremely expensive, and if nothing is done the cost will escalate to unsustainable levels. For me, it is wrong to be promoting what is, in effect, state dependency. It is also wrong that the Government are subsidising employers so that they pay low wages.

[Clive Lewis (Norwich South) (Lab)]

The hon. Gentleman talks about high productivity and high wages, and Labour Members would agree with him on that, but yesterday we watched him file through the Lobby and vote against trade unions. They are one of the key ways that we can raise people’s wages, and he is undercutting them. How does he explain that?

[Peter Aldous]

I thank the hon. Gentleman for making that point, but I am constrained specifically to the issues we are debating.

It is wrong that the Government are subsidising employers in this way. Moreover, the current system of tapering income thresholds and interconnectivity with other benefits is ridiculously complicated and opaque.

I welcome the Government’s proposals to increase the personal allowance and to introduce the national living wage. It is right that working taxpayers, especially those on low pay, should keep more of the money that they earn as an incentive to work. My concern is that in the short term, over the course of the next two to three years, those who will be hit hardest by these measures are working families, often with children, on low wages. These are the hard-working families—the people doing the right thing—that all political parties say they support and must support.

In my constituency, where the median wage is just under £24,000, many people will be seriously affected by these changes. As of May this year, 4,200 families were receiving working tax credits.

[Andrew Percy (Brigg and Goole) (Con)]

Representing a constituency where the median salary is even lower, at £17,500, I entirely concur with my hon. Friend’s concerns about this measure, and that is why I will not support it. Does he agree, though, that if it goes through, there is time between now and next year to make changes, be they to national insurance, emergency tax codes, or whatever, to mitigate the impact on the poorest?

[Peter Aldous]

I agree with my hon. Friend. I will come to that when I conclude.

Yes, the rise in the tax threshold and the introduction of a national living wage will help, but, as shown in research by the House of Commons Library, they will not on their own make up for what will be significant reductions in income.

[Neil Parish (Tiverton and Honiton) (Con)]

My hon. Friend is making a powerful point. I also represent a constituency where wages are quite low. The Government must recognise that the living wage must be brought up so that people are not worse off as a result of the cut in tax credits. We have to drive up the living wage so that we do not take too much money away from them.

[Peter Aldous]

I thank my hon. Friend for that notable intervention.

In my Waverley constituency, the demise of traditional industries, high levels of unemployment, low wages, lack of skills and poor infrastructure have been brakes on growth and job creation for 40 years. Both the previous Government and this Government have taken decisive action to address those problems, to halt and reverse the seemingly never-ending downward spiral of decline: unemployment has fallen significantly since 2010; there has been notable investment in apprenticeships; an enterprise zone has been set up; assisted area status has been granted; and funds have been committed to upgrading the roads and railways. That support and investment is to be both applauded and welcomed, and it will bring new, well-paid jobs to the area. However, it will not do so overnight. In the meantime, a particularly vulnerable group of society will be left very much exposed.

As I said at the beginning of my speech, the Government are pursuing the right course, albeit through choppy waters, and for that reason I shall be supporting the proposals. However, there are real concerns that must be addressed, and I urge Ministers to ensure before next April—possibly in the autumn statement or the next Budget—that those on low incomes are not hit unfairly and disproportionately by the proposals and that they do not have the unintended consequence of undermining the incentive to work.

The Economy

Peter Aldous Excerpts

Thursday 4th June 2015 Commons Chamber

[Peter Aldous (Waveney) (Con)]

Many congratulations on your re-election, Mr Deputy Speaker. I also congratulate all the new Members who have made such excellent maiden speeches.

I support the Queen’s Speech because of its ambition and direction of travel. The Prime Minister has rightly stated that every part of this country has a stake in our economic success. Much good work was done by the previous Government, but there is a great deal more to do and there will be plenty of potential pitfalls along the way.

The Bills in the Queen’s Speech provide the framework for developing sustained prosperity right across the country and it will be important to scrutinise them closely as they progress through this House and the other place. In some cases, the devil will be in the detail; no stone should be left unturned in the pursuit of good legislation that works for the whole United Kingdom.

For too long, economic policy in the UK has been centralised and top down. My right hon. Friend the Chancellor of the Exchequer is correct in his assessment that the model of running everything from London has failed and created an unbalanced economy. It has become clear that the man in Whitehall does not know best. I support the ambition and determination to create a northern powerhouse, but it is important that all other parts of the country should have the same opportunity and access to the necessary funds.

For my part, I wholly endorse the words of my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst) in wanting an East Anglian powerhouse. British people talk about the weather; we East Anglians talk about infrastructure. That is because we do not have very much of it, and what we do have does not work very well. In my Waveney constituency, the nearest motorway is in Holland; our railways resemble an elephants’ graveyard where trains come to die; and there are some very rural areas where broadband coverage is spasmodic, at the very least. I commend the Prime Minister for stating:

“We will make sure everyone has the infrastructure they need to succeed.”

In the previous Parliament, he and the Government that he led put their money where their mouth was. In this Parliament, we have to deliver, and get these roads and bridges built and superfast broadband made available to all.

The projects for which funding has been provided must be built on time. The preparatory work for upgrading the A47 must be carried out promptly. The 16-month period that has been suggested before any construction work begins is not acceptable. We must use the opportunity presented by the rail franchise tender to deliver better railways with reliable, fast and comfortable trains that run on time. With the third crossing project in Lowestoft, locally we will complete the necessary studies that the Government have enabled us to do and then work with them to get this very important piece of local infrastructure built.

I shall briefly mention three industries important to Waveney that have the potential to contribute a great deal to the local economy but need to overcome a variety of obstacles. First, the oil and sector faces significant challenges created by the dramatic fall in crude oil prices. Jobs are being lost, including at AKD Engineering in Lowestoft, which closes this month. The Government have recognised the problem and came forward in the Budget with proposals that restructure the taxation regime. The Office for Budget Responsibility estimates that that should boost North sea oil production by 15% by the end of the decade. That is welcome, but I urge the Treasury to work closely with the industry to bring in further measures in next month’s Budget if necessary.

The offshore wind industry can bring significant benefits to the Waveney economy, and in the past five years work has been put in place to enable it to do so. We need to get those wind farms off the East Anglian coast built during this five-year term.

The fishing industry is also in need of support. My hon. Friend the Member for Newbury (Richard Benyon) helped to reform the common fisheries policy. We now need to ensure that the small fishermen who make up the Lowestoft fleet have fair access and a fair share of quota.

The proposals announced in the Queen’s Speech are welcome, but there is much work to do. No parts of the country must be forgotten. On infrastructure, we must press on to get roads and bridges built. There must be no no-go areas as regards policy, particularly in fishing.

Offshore Wind Developments

Peter Aldous Excerpts

Tuesday 6th January 2015 Westminster Hall

[Peter Aldous (Waveney) (Con)]

It is a pleasure to serve under your chairmanship, Mr Gray. I thank the Backbench Business Committee for granting this debate, and I give special thanks to the hon. Member for Angus (Mr Weir) for playing a key role in securing it.

The offshore wind industry is an interest to me mainly due to the key role it can play in bringing jobs and prosperity to costal communities such as Lowestoft and Waveney, which I represent. With deference to my Scottish colleagues, the southern North sea is, in many respects, the best location for developing large-scale offshore wind farms. It has relatively shallow waters, the weather is more appropriate and it has the right environmental and geological conditions, so it is well suited for such developments. East Anglian companies have already played a key role in delivering the rounds 1 and 2 wind farms, such as Scroby Sands, Greater Gabbard, Thanet and Sheringham Shoal. Local businesses will be able to do even more if we fully realise the opportunities in round 3.

[Mr Weir]

I do not dispute the fact that the southern North sea is excellent for wind, but I hope the hon. Gentleman is not going to set it against other development locations. There is huge potential in Scotland, which has a rather windy climate, although there are great challenges in some of the surrounding deep water. We must look at all potential locations and not just concentrate on one.

[Peter Aldous]

I fully agree, but we East Anglians tend to hide our light under a bushel. The full potential of the southern North sea has not been fully realised, so we need to raise our heads above the parapet. I do not want to be divisive as I compare different areas and energy technologies. I believe in a mixed economy.

There is the potential to do even more in round 3. Offshore wind can play a vital role in providing a low-carbon, secure energy supply. It can also create jobs regionally, as we regenerate coastal communities such as the one I represent, nationally—as the hon. Gentleman said, there is the potential to increase significantly the number of jobs from the current 13,000 to more than 44,000 by 2023—and internationally by boosting exports. People working in the oil and gas sector anywhere in the world will hear Suffolk and Norfolk accents, as well as Scottish accents. That is something we must repeat with the offshore wind industry.

A lot has been done since 2010 to deliver that success. The Government put in place a framework to give the industry a long-term, sustainable future. Siemens will be manufacturing turbines at Humberside, the green investment bank is playing an important role in leveraging in private sector capital and the Catapult in Glasgow is doing important work with the industry to drive down costs. The Government have placed the right emphasis on maximising the UK content in contracts to ensure that jobs are not exported. A planning regime for offshore wind has been put in place, which works efficiently and fairly, provided that developers are proactive and engage with local communities. Finally, the Government are pursuing local supply chain initiatives that will help local communities, such as the one I represent, to get the most from these opportunities. Lowestoft and Yarmouth now has an enterprise zone and assisted area status, and the two ports have been designated centres for offshore renewable engineering. That designation is applied around the country; it is a national strategy.

As a result of those initiatives, the UK remains on track to being the most important market in the global offshore wind sector, with more capacity installed than any other country and with the largest volumes projected by 2020. We are moving in the right direction.

Electricity market reform and the contracts for difference regime are at the centre of the framework. The Government are right to apply a budget to ensure that policy and energy costs are affordable. The CfD regime has three benefits. First, it de-risks investment in asset ownership. Secondly, the competitive allocation will drive cost reduction. Thirdly, it recognises the need to cap costs through the levy control framework.

The transition to contracts for difference has not been straightforward. With the benefit of hindsight, we can see that things should have been handled differently. First, too large a budget was given to the Final Investment Decision Enabling for Renewables contracts without ensuring competition or price reduction. Too many of the FIDER contracts were placed with the same developer, which created risk for the entire sector. Secondly, the budget for the first competitive CfD allocation was too low, although I welcome the increase in round 2 from £155 million to £235 million. That low budget surprised investors and supply chain companies and led to projects becoming less competitive. Unfortunately, it sent out the wrong signal to the market. Thirdly, the three-month delay in the 2014 allocation round was unhelpful in achieving the stable, predictable regulatory environment that we all seek. Fourthly, money appears to have been held back for future allocation rounds, which has caused the worry that the levy control framework budget may not be fully utilised. Finally, I am concerned that by not giving indications of the less established 2015 budget, further uncertainty has been created.

Those are the problems we face, but I make those comments with the benefit of hindsight. However, we must move on, and the Government must have regard to two issues. First, they must have consistent policies so investors, industrialists and developers know where they stand. Secondly, they must articulate a long-term vision for the industry beyond 2020. As the hon. Member for Angus said, the industry currently views 2020 as a budgetary cliff edge.

I have four suggestions on how we can provide certainty and a long-term vision. First, the current allocation round should be concluded as soon as possible. Secondly, details of the timing and budget for the 2015 and 2016 allocation rounds should be published as soon as possible. Thirdly, details of the levy control framework in the second delivery period post 2020 should likewise be published as soon as possible. Finally, the industry must be provided with a clearer picture of its potential long-term size and where the Government see it going. That could be achieved by setting a clear-cut tariff reduction trajectory for offshore wind post-2020 and moving to a narrower carbon intensity range.

Since 2010 a great deal has been achieved in laying down a framework that gives offshore wind a long-term future. The move to CfDs is the most challenging part of the framework. Things have gone wrong in the past, but if we get it right now the industry can realise its full potential and play a full role in bringing jobs and prosperity to coastal communities such as the ones that I represent.

[Several hon. Members]

rose—