Finance Bill

Peter Gibson Excerpts

2nd reading
Monday 28th November 2022 Commons Chamber

[Peter Gibson (Darlington) (Con)]

It is a pleasure to be called so early in the debate. At the outset, I want to put on record Darlington’s thanks for the £250 million that came to us during covid.

In the autumn statement, we saw increased spending on education, health and social care; the largest ever increase in the living wage, to £10.42, putting us within pennies of our ambition to reach £10.50 in this Parliament; the triple lock guaranteed for pensioners; virtually all benefits, and the benefits cap, increased in line with inflation; and support for those struggling to meet energy costs. The autumn statement and the Bill continue our commitment to deliver for those on the lowest income.

We all know that these are challenging times. We also know that inflation makes us all poorer. However, the challenges of inflation, energy prices and interest rates can all be tracked back to Putin’s illegal invasion of Ukraine. I know the Chancellor has had to make some difficult decisions, but I believe that he has been fair and done much to restore economic stability, while continuing to invest in vital services and infrastructure.

Prior to being elected to this place I was an employer running a small business, and I know that businesses will warmly welcome the news in the autumn statement, particularly those on our high streets facing a much needed reduction in rateable value, and therefore a lower rates bill. That reduction would ordinarily be phased in over three years, so the fact that they will receive the benefit immediately is welcome indeed. That is something that I have been pushing for and that I was delighted to see. In addition, the current 50% discount available to hospitality and retail businesses will now be increased to a 75% reduction, with no impact on income for our local authorities. The Government really are on the side of small businesses.

When the Chancellor comes to visit the Darlington economic campus, where my right hon. Friend the Prime Minister was working from on Friday—just as my hon. Friend the Exchequer Secretary to the Treasury did last week—I look forward to taking him to see some of our amazing local businesses, such Origins Home, Leggs Fashion and The Art Shop, and the transformation taking place in the Darlington yards thanks to investment from the towns fund.

We all know that talent and ability are spread throughout the country, but opportunities have not been. The north-east has lagged behind for too long, under Governments of all colours, but this Government’s ambitious levelling-up agenda is already paying dividends to communities such as mine in Darlington. As such, I welcome the Chancellor’s commitment to infrastructure spending, with continued support for key infrastructure projects, and the protection of the £1.7 billion levelling-up fund. I am keeping my fingers crossed for the forthcoming announcement on levelling-up fund round 2, to which Darlington has submitted an excellent bid.

In Darlington we are already ticking boxes on levelling up: £139 million at Bank Top station, delivering three extra platforms and improving regional connectivity; £35 million invested in our rail heritage quarter, delivering on our commitment to heritage and driving more visitors to Darlington; and £23.3 million invested in our town centre, seeing real change in the High Row yards, Northgate and Victoria Road. I could also point to investment in green technology at Cummins and investment in life sciences, so key to our vaccine success, at the Centre for Process Innovation, together with investment in Darlington College. It would be remiss of me to not mention the fantastic job opportunities afforded to local people through the creation of the northern economic campus, ensuring that people in Darlington can stay local but go far.

Darlington said goodbye to its Labour council in 2019, ending a 28-year period of decline, and it is now going from strength to strength with the Conservatives at the helm, working hand in hand with our Tees Valley Mayor, Ben Houchen. However, the Chancellor knows that my council, the third smallest unitary in the country, faces economic challenges because of a funding formula that disadvantages areas like mine. That is long overdue for reform, and I hope that he will pay that issue close attention. I know that the Exchequer Secretary is making notes, so I hope he is listening too as he works on local government settlements.

The cost of living support payments that have been distributed by the Government over the course of the last year and into this year have already totalled in excess of £39 million for the people of Darlington, and the announcements in the autumn statement amount to a further £18 million for them. At its heart, the autumn statement set out a compassionate plan, meeting the real challenges faced by our public services and the fears of people facing increased energy costs, and continues our commitment to our ambitious levelling-up agenda, including delivering real improvements on business rates for the nation’s high streets. This Finance Bill is good for the country and good for the people of Darlington.

Co-operatives, Mutuals and Friendly Societies Bill

Peter Gibson Excerpts

Friday 28th October 2022 Commons Chamber

[Peter Gibson (Darlington) (Con)]

I congratulate the hon. Member for Preston (Sir Mark Hendrick) on moving the Second Reading of his Bill. Having had the pleasure of introducing my own private Member’s Bill in the last Session, I know only too well what a privilege it is to be drawn in the ballot.

I thank the hon. Gentleman for taking the opportunity to raise the important issue of co-operatives, mutuals and friendly societies, which colleagues across the House have raised on several occasions. My hon. Friend the Member for Wycombe (Mr Baker) led a Westminster Hall debate on the issue last December, emphasising the opportunity to generate wealth through co-operatives and mutuals and the role that they can play in our levelling-up agenda. I know that the chair of the all-party parliamentary group for mutuals, the hon. Member for Harrow West (Gareth Thomas), has endorsed the principles of the Bill; I commend the APPG’s work to champion co-operatives, mutuals and friendly societies.

“Mutuals” is an umbrella term for organisations whose members have democratic control of their business and that are owned by and run for the benefit of members, with profits reinvested in the organisation or among the membership. They include co-operatives, mutuals and friendly societies, but for ease of reference I will use the umbrella term “mutuals.”

Mutuals are fantastic business vehicles and are at the forefront of good behaviour when it comes to investing in people, developing skills and creating opportunities. Moreover, a range of co-operative models are increasingly being used as tools for community-led economic development, with people collaborating and pooling resources to improve their economic and social circumstances. Alongside that, educating and developing members is one of the fundamental principles of the co-operative model and is critical to making it effective. Mutuals are positioned as a potential tool to leverage the community support that we need to ensure that levelling up is a success in communities such as Darlington, and no doubt in the constituency of the hon. Member for Preston.

As I understand it, the UK has a comparatively smaller mutual sector than some other European economies. In its 2021 report, Co-operatives UK showed that there were more than 7,200 co-ops in the UK, employing approximately 250,000 people and with a combined turnover of £39.7 billion. In 2017, an estimated 11% of the UK’s insurance market was provided by mutuals, compared with 52% in France and 47% in Germany. I also understand that the sector has been largely resilient to the problems caused by the covid-19 pandemic, and I welcome the 1.2% growth in the number of co-ops in 2020-2021.

The sector faces a number of challenges. Unlike companies and banks, mutuals are largely dependent on bank borrowing and on their own revenues, as they are unable to sell shares without losing member control. The ability of the UK’s mutual sector to expand is therefore limited by its access to external finance. As the Ownership Commission noted in 2012:

“Legal limitations prevent many mutuals from raising…capital sums from their members.”

The commission made three recommendations: that new capital instruments should be introduced to allow mutuals to raise external capital, that mutuals should be able to issue bonds to members, and that they should be able to count deferred shares as tier 1 capital if trading as a bank or building society. I would be grateful if the Minister outlined the Government’s current thinking on those recommendations.

Many colleagues across the House will have received correspondence from constituents who are concerned about the proposed demutualisation of the financial services firm Liverpool Victoria. In December 2020, LV announced that US equity firm Bain Capital was in talks to acquire the business. The sale would have included the demutualisation of LV, with the mutual becoming a public limited company owned by shareholders rather than by members. I understand that LV’s chief executive argued that such a move was necessary to ensure the continuation of the business. However, in December last year the sale failed to gain the required support of 75% of LV members, with only 69% voting in favour. The potential need to demutualise LV exposes the difficulties that mutuals face when they need to raise capital. To protect those jobs, what action have the Government taken to ensure that LV can continue operating?

As I understand it, the Bill proposes legislative changes for share capital and non-distributable capital surplus. It would give mutuals the option of adopting a statutory provision guaranteeing that their residual capital surpluses are not distributable among members. The term “capital surpluses” means residual equity minus members’ shareholdings and share interest. The provisions would not interfere with mutuals’ ability to pay profits to members or to pay interest on share capital. I understand that the Bill would also enable mutuals to issue equity shares that are repayable at the option of the mutual, rather than being withdrawable at the option of shareholders. At present, mutuals looking to raise equity are hampered by legal uncertainty as to whether they can repay non-withdrawable shares at their option.

In preparing for this debate, I have been interested to read about comparable legislation abroad. Australia’s Treasury Laws Amendment (Mutual Reforms) Act 2019 introduced new mutual capital instruments. I understand that, previously, mutual companies did not have the power to issue such shares. Under the 2019 Act, share owners in Australia are limited to one vote per member regardless of how many MCIs the owner holds. The Act also introduced a clarification that the issuing of MCIs does not amount to demutualisation by the organisation for tax purposes, I would be interested to hear the Minister’s thoughts on that Act and its relevance to any legislation that might be appropriate for the UK’s mutuals sector.

It would be remiss of me not to mention a fantastic example of a mutual in Darlington and to praise the work it does in and around Darlington. Darlington Building Society was established in 1856 and now has nine branches across the north-east, County Durham and North Yorkshire. It describes its mission as being

“to develop our staff, technology, customers, brand and place ourselves at the heart of the communities we serve.”

This is a mission it undoubtedly achieves.

In September, a new play area, funded with a £15,000 donation from the Darlington Building Society, was unveiled at a Teesside school run by the North East Autism Society, which also freed up its staff to volunteer on my project to build a playground in Skerne Park in Darlington. I am also delighted that Darlington Building Society has announced a five-year deal to sponsor a new exhibition hall that will become a key feature of the Darlington rail heritage quarter, a £35 million project to create a national visitor destination as we fast approach the 200th anniversary of the Stockton and Darlington railway in 2025, marking the birth of the modern railway and a moment in history that changed the world. To quote Andrew Craddock, chief executive of Darlington Building Society:

“At Darlington Building Society, we are passionate about helping the members we have today, but we are also committed to encouraging the members of tomorrow to get into the saving habit. That’s why financial education is such an important part of what we do. As well as going into local schools, The Exhibition Hall will give us fresh opportunities to stage educational workshops in an engaging environment that is steeped in history.”

I warmly welcome this commitment to preserving and showcasing our local rail heritage in Darlington.

Darlington Building Society also has a long-term commitment to donate 5% of its profits to good causes, as well as freeing up staff time to volunteer in the community. In 2022 the building society has so far donated a total of £172,000 to local charities and community organisations. In September alone, Darlington Building Society donated £36,050.

If you will indulge me, Mr Speaker, that donation included: £8,000 to help combat food poverty this Christmas by providing 200 families with food hampers; £5,000 for Rubies GLOW project, which provides a safe space for girls to meet, receive support and develop self-confidence; £5,000 for Red Balloons, which helps to promote positive mental health through exercise and free guided walks; £7,200 for Wheels 2 Work, which is helping more than 40 people get into and stay in employment by providing mopeds and scooters; £2,400 for Studio Burn Fitness; £4,200 for Trinity Youth; £2,000 for Beyond Limits; £1,000 for Angel Trust; £500 for the North Yorkshire scout council; £250 for the Cockerton community business group; and £300 for Darlington Railway Athletic football club.

I would also like to draw the House’s attention to Darlington Credit Union, a community financial co-operative founded in 2009, following the merger of four smaller credit unions. Since then, it has grown to serve the whole of the north-east. It performs a vital community function, by being a source of affordable loans, which help people to avoid loan sharks. Darlington Credit Union faced an uncertain future in the wake of the pandemic, but Darlington Building Society, another of our mutuals, came to the rescue by providing crucial financial support and ongoing expert guidance on a voluntary basis. That really is a testament to how embedded in the community Darlington Building Society is. That is just the tip of the iceberg when it comes to the community work that Darlington Building Society engages in, and were I to list all of its achievements, I fear I would be on my feet all day. It is a fantastic example of the good that mutuals can do in our communities, and I want to put on the record my praise for its work in Darlington.

Returning to the Bill, I want to be clear that I fully support its principles. As I have outlined, mutuals have a hugely important role to play in our communities, in terms of education, engagement, charity and, fundamentally, the financial services they offer. It is also hugely important that we ensure that there is diversity in the financial services sector and that mutuals are able to raise the capital they need more easily without the need for demutualisation. I also note that both Co-operatives UK and Mutuo, an advocacy organisation for mutuals, also support the principles and aims of the Bill. There is clearly a significant appetite for reforms for the mutuals sector. I also note that Co-operatives UK has suggested that these reforms would have a significant economic benefit if they were to be introduced. I trust that the Minister has taken full note of that and will engage with the mutuals sector further on the matter.

I am pleased to be able to support this Bill, and I am grateful to the hon. Member for Preston for giving us the opportunity to debate these issues today. I know that he will continue to engage closely with Ministers as he continues to guide this Bill through its legislative journey, and I trust that the Minister will have listened closely to the contributions from across the House today. I look forward to his response.

[Mr Speaker]

We hear about the benefits of Darlington Building Society—it sounds as good as Chorley!

Oral Answers to Questions

Peter Gibson Excerpts

Tuesday 15th March 2022 Commons Chamber

[Helen Whately]

We are making a substantial investment through the shared prosperity fund and other funds across the country. We have committed to ensuring that the shared prosperity fund will be at least as much as parts of the country received before through EU funding, and I am committed to the hon. Gentleman’s area just as much as to Cornwall and other parts of the UK.

[Peter Gibson (Darlington) (Con)]

11. What assessment he has made of the impact of the levelling-up fund on job opportunities and the economy across the UK.

[The Exchequer Secretary to the Treasury (Helen Whately)]

By investing in local infrastructure, the levelling-up fund will strengthen local economies, boost job opportunities and improve the day-to-day lives of people across the UK. So far, we have committed £1.7 billion to 105 projects, and at the end of the month the Department for Levelling Up, Housing and Communities will publish its monitoring and evaluation strategy for the funding.

[Peter Gibson]

With £23.3 million invested through the towns fund, £105 million for Bank Top station and 1,700 civil service jobs coming to Darlington, we are a leading example of how the Government’s levelling-up agenda is benefiting communities in the north-east. The second round of the levelling-up fund will continue that work. Will my hon. Friend outline the timescales for the delivery of that round?

[Helen Whately]

My hon. Friend is a fabulous campaigner for Darlington, as evidenced in all the funding that his local town has secured. I am a regular visitor to Darlington, as are my Treasury colleagues, and have seen those investments already making a difference. He asks about the second round of the levelling-up fund. It will open for business this spring, with further details to be published shortly.

Oral Answers to Questions

Peter Gibson Excerpts

Tuesday 1st February 2022 Commons Chamber

[Mr Clarke]

I thank the hon. Gentleman for his question. This relates to the future fund, a rules-based scheme that means that any firm is eligible for funding, providing it meets the required eligibility criteria for the scheme and passes the necessary checks. Neither the Government nor the British Business Bank chose specific investments; it is about helping innovative equity-backed companies to weather the economic disruption caused by covid and continue their long-term growth projection.

[Peter Gibson (Darlington) (Con)]

I commend my right hon. Friend for the steps he has taken to level up in Darlington, with the establishment of the Darlington economic campus. Will he update the House on the progress to bring high-quality, well-paid jobs to my constituency?

[Helen Whately]

I am delighted to update the House on the progress the Treasury is making with our Darlington economic campus. We have already recruited more than 100 Treasury employees to be based in Darlington, and we are on track for our ambition of 300 employees based there.

Oral Answers to Questions

Peter Gibson Excerpts

Tuesday 7th December 2021 Commons Chamber

[Peter Gibson (Darlington) (Con)]

I thank my right hon. Friend the Chancellor for all that he is doing on levelling up and, in particular, for the establishment of the Darlington economic campus. Can he update the House on how things are progressing and how many of his team are now enjoying life in Darlington?

[Helen Whately]

We are seeing a growing number of Treasury staff working in Darlington along with many Ministers spending time there. I am due to be there tomorrow and I think that my right hon. Friend the Chief Secretary to the Treasury will also be there this week.

Covid-19: Ethnic Minority Disparities

Peter Gibson Excerpts

Monday 1st March 2021 Commons Chamber

[Peter Gibson (Darlington) (Con) [V]]

I thank my hon. Friend for all that she is doing to help the message to reach our ethnic minorities. While the Government follow the science the Opposition have called for 10 different employment groups to move up the priority list, which the JCVI has said would slow vaccine roll-out. Does she agree that that would risk needlessly exposing vulnerable people to harm for longer, and that it shows that the Labour party is more interested in chasing headlines than following the science?

[Kemi Badenoch]

My hon. Friend is absolutely right. We need to prioritise those who are most vulnerable, and if every single group believes that it deserves priority, that means we are not carrying out any prioritisation at all. The JCVI is independent, and we feed information into it. I wrote to it in December with the findings of my work, and it takes all of that into account. It looks at all the various factors, but we need to trust that that independent committee is doing the right thing, and I believe that it is.

Government's Management of the Economy

Peter Gibson Excerpts

Tuesday 23rd February 2021 Commons Chamber

[Peter Gibson (Darlington) (Con) [V]]

Today’s debate is a great opportunity to shine a spotlight on how it is only through the Conservatives’ careful stewarding of our public finances that we have been in a position to deliver phenomenal levels of support to people during the pandemic. As a former business owner and an employer, I know only too well the need for economic certainty, economic stability and the right level of taxation to encourage investment. We should never forget that it is businesses that grow our economy and create jobs, and it is thanks to a Conservative Government that I was able to do that.

In December 2019, just over 14 months ago, the people of Darlington and, indeed, the UK rejected Labour’s economic mismanagement in favour of a Conservative Government with ambitious plans to level up places like Darlington across the north. Since I was elected in 2019, this Conservative Government have provided phenomenal investment in Darlington, including £105 million for the redevelopment of Bank Top station, £23.3 million from the towns fund, £9.7 million for County Durham police, £4 million for main line improvements, £3.6 million to get Darlington building, £629,000 of funding for Darlington College and millions of pounds in covid support schemes and relief funds for Darlington Borough Council.

This debate is another lacklustre attempt by Labour to create headlines and weave a fantasy that it is the party of sound economic management. The truth is that I have seen at first hand how the Conservative Government over the last 10 years have delivered economic security for thousands, reduced the cost of living and created a fairer and more equal society. Over the last decade, successive Conservative Governments have overseen a period of economic stability that has seen the deficit reduced by 80%, an additional 3.4 million people in regular employment, a rise in the national living wage by 2.2%, an increase in the national insurance threshold, an income tax cut for 32 million people and a reduction in the number of children living in workless households by a third.

This Conservative Government have ambitious plans for record investment in our NHS, railways, roads, education system and left-behind communities. In the Tees Valley, we are hopeful that building back even better and levelling up will include a free port and Treasury jobs being relocated to our region. The last year has shown that when push comes to shove, it is the Conservatives who provide the support when we are down and the incentives to grow when it is time to get back up.

Economy Update

Peter Gibson Excerpts

Thursday 5th November 2020 Commons Chamber

[Rishi Sunak]

I thank the hon. Gentleman for his comments. What I can tell him is that the new CJRS date for eligibility will be 30 October, which means that those who were notified to HMRC at any point up to that time will be eligible to be furloughed under the new scheme and, indeed, those who were let go before the announcement of the plans in September can also be rehired and put back on the scheme.

The details of that are in the guidance, which will be published imminently.

[Peter Gibson (Darlington) (Con) [V]]

I thank my right hon. Friend on behalf of the 1,900 self-employed people of Darlington who have benefited from the self-employed income scheme and who will welcome his announcement today, but may I urge him to ensure that this money gets out of the door as quickly as possible, particularly with Christmas just around the corner?

[Rishi Sunak]

I can give my hon. Friend that assurance. Those are three-month grants for the self-employed. The system will open in November so that grants can be paid in December, in time for Christmas, as he says. As he knows, that builds on our significant support for the self-employed. More than 3 million people are eligible for that support, which is now worth more than £14 billion. Today’s announcement will mean an additional £7 billion of support to those people over the Christmas period.

Oral Answers to Questions

Peter Gibson Excerpts

Tuesday 15th September 2020 Commons Chamber

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

What assessment he has made of the financial effect of the covid-19 outbreak on people who were not eligible for either the coronavirus job retention scheme or the self-employment income support scheme; and if he will make a statement.

[Peter Gibson (Darlington) (Con)]

What steps his Department is taking to support self-employed people affected by the covid-19 outbreak.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

What assessment he has made of the financial effect of the covid-19 outbreak on people who were not eligible for either the coronavirus job retention scheme or the self-employment income support scheme; and if he will make a statement.

--- Later in debate ---

[Rishi Sunak]

As I have said from this Dispatch Box, we have not been able to help absolutely everyone in the exact way that they would have liked, but that does not mean that support is not available. Through considerable increases to universal credit and local housing allowance, we have provided support to the most vulnerable. Through measures such as mortgage holidays, which one in six mortgage customers have taken up in the past few months, we have ensured that everyone, one way or another, can access some degree of Government support.

[Peter Gibson]

Over £33 million of bounce back loans have been granted to businesses in Darlington, but many businesses in my constituency bank with new start-up, online and challenger banks and have faced some issues with accessing bounce back loans. What steps is the Treasury taking to assist with access to bounce back loans for those who need them?

[Rishi Sunak]

My hon. Friend raises an important point, and we recognise the vital role that alternative lenders can play in providing finance to SMEs. We continue to work with them and the sector to see what more we can do. As he recognises, the bounce back loan scheme has proved enormously successful, and so far we have accredited 28 bounce back lenders, who have provided loans to more than 1 million businesses. In the first instance, I urge businesses in my hon. Friend’s constituency to look online at one of those 28 lenders, and see whether they can provide the loans that that business requires.

Co-operative and Community Benefit Societies (Environmentally Sustainable Investment) Bill

Peter Gibson Excerpts

2nd reading & 2nd reading: House of Commons
Friday 11th September 2020 Commons Chamber

[Peter Gibson (Darlington) (Con)]

It is a pleasure to follow my neighbour and dear friend, my hon. Friend the Member for Sedgefield (Paul Howell).

I am grateful to be given the chance to speak in this debate. I share the passion of the hon. Member for Cardiff North (Anna McMorrin) and her commitment to ensuring that our green development is beneficial to our society, communities and constituents. Redeemable green shares to external investors are certainly an interesting prospect. In principle, I share the hon. Lady’s desire to support the mutual sector in the development of new green finance initiatives.

However, I remain unpersuaded about the merits of redeemable shares, and I am concerned that this Bill could open up risks for consumer protection and the integrity of the co-operative model. As we have heard from many on the Conservative Benches, green bonds have a tried and tested track record, and I pay tribute to the excellent insight provided my hon. Friend the Member for Grantham and Stamford (Gareth Davies). I cannot in good conscience support a Bill that risks undermining the phenomenal work that co-operatives and mutuals do in my constituency and in the north-east.

I want to reassure the House that I support the work of the co-operatives, which have a strong track record on delivering across the UK. I understand the all-party parliamentary group on mutuals has found that they generate over £130 billion of income each year, supporting community-owned pubs, high street retail and fan-owned football clubs, which is a truly phenomenal achievement.

If you will allow me, Mr Deputy Speaker, I will first focus on the financial aspects of the Bill, before moving on to its environmental concerns. It is wholly necessary for companies and co-operatives to have access to capital and credit as the lifeblood of their entity, but green bonds would provide a much better model. In my constituency of Darlington, many co-operatives are run on a mutual ethos that in part came through the town’s Quaker heritage. From the Harrogate Club in the north to the Hummersknott Allotment Association in the south, the benefits of local co-operatives are clear locally.

Recently, I have engaged with many of my constituents from Darlington FC supporters’ group, who have lobbied me on behalf of their much-loved fan-owned mutual club. I am glad that in that case I was able to work constructively on their behalf with the National League to assist the club with the uncertainty ahead of the new season, and I wish them well for this Saturday’s friendly away game in Scarborough.

Across the north-east, clubs and pubs remain at the heart of communities. With the unprecedented challenges the hospitality sector has faced over the past few months, I am all too aware that co-operative clubs in Darlington need support now more than ever. The phenomenal eat out to help out scheme and the unprecedented level of government support have allowed many of these clubs and pubs in Darlington to bounce back from the impact of the lockdown. It is vital that the Government do not take drastic action at this point that risks undermining the position of these clubs at the heart of my Darlington community.

I am concerned that, if the Bill were to pass, businesses in the mutual sector might unwittingly enter into a situation where they are exploited as investment businesses. Beyond this, many co-operatives might be lured into exploitative schemes where they are put at great risk because of the ethical implications attached to these complex shares. I am aware that the Bill intends to include safeguards to prevent such issues by amending the Co-operative and Community Benefit Societies Act 2014; by introducing limits on the voting rights of investors in the event of liquidation; by limiting the ability to vote for demutualisation; and by enabling societies to remove the right to vote for conversion into a company. While I acknowledge these safeguards, introduced following the hon. Lady’s work with Co-operatives UK, I believe that the risk remains too high.

I am confident that the Government have already provided a firm, pragmatic approach to tackling climate change while protecting businesses, jobs and communities, as outlined in the Government’s green finance strategy 2019. In my short time in Parliament, I have had the privilege to support this Government as they have taken steps to support sustainable, community-led green economic growth, including by granting greater power to local authorities in this matter.

[Marco Longhi]

Does my hon. Friend agree that the green bonds that my hon. Friend the Member for Grantham and Stamford (Gareth Davies) described would be a more targeted and risk-averse approach? Does he also agree that as we come out of this pandemic the House’s priority should be to do so in an inclusive and green way and that the plan that Andy Street, for example, has set out for the west midlands for inclusive growth with a green agenda is an example of that?

[Peter Gibson]

My hon. Friend raises an important point about the strength of communities represented by Conservative directly elected Mayors. I, too, represent a constituency that falls within a combined authority area that has an excellent Conservative Mayor leading the way on green initiatives.

[Ben Everitt]

The House recognises, of course, that risk needs to be carefully considered and avoided, but as my hon. Friend has so eloquently pointed out in what I think today is a home game for him, risk often has potential upsides and benefits, not only for investors but for wider society.

[Peter Gibson]

My hon. Friend, too, highlights the excellent contributions this morning from our hon. Friend the Member for Grantham and Stamford.

The Conservative manifesto that I and my right hon. and hon. Friends stood on made ambitious commitments on the environment, many of which placed the emphasis on community-driven initiatives. It is right that this Government, and any future Government, be held to account over their environmental duties. These will include meeting the net-zero target by 2050 and the long-term, legally binding targets on biodiversity, air quality, water resources, and waste and efficiency that will be established under the Environment Bill.

In the 25-year environment plan, the Government committed to developing a nature recovery network, and in the long term, to creating and restoring 500,000 hectares of wildlife-rich habitat outside existing protected sites. A new framework for community-led nature recovery strategies will also be legislated for in the Environment Bill, to support the nature recovery network and better direct investment into the environment and green infrastructure, creating places that are richer in wildlife and provide wider benefits for local communities. The Government will also establish the £640 million nature for climate fund, which will be used to dramatically increase community-led tree planting schemes in England. Indeed, more than 40 million trees will be planted to bolster carbon capture. More research is currently being undertaken into the most appropriate species to plant across the country.

In the 2020 Budget, the Government’s record of supporting green business was made clear. I am grateful to the Chancellor for outlining a £552 million fund for consumer incentives for ultra-low emission vehicles and a reduction in taxes on zero-emission vehicles. In the Tees Valley, our excellent Conservative Mayor, Ben Houchen, has led on hydrogen-powered vehicles—from cars, buses, trains and lorries to e-scooters—and sustainable, community-driven economic growth. It is clear that, over the coming years, the Tees Valley will become a shining beacon of how businesses can sustainably grow, with the right legislative backing, to pursue local policy for local people. Teesside is also leading the way in carbon capture and storage through Net Zero Teesside, a huge intervention, with global companies coming together to address the green agenda.

I understand that the Government have already responded to the concerns of those in the mutual sector by taking steps to review our current regulatory arrangements. The Treasury is reviewing the regulatory arrangements that are in place for the issuance and marketing of non-transferable debt securities such as some mini-bonds. I look forward to the outcome of the review, and I am assured that Ministers will give appropriate consideration to the creation of any capital instrument with similar characteristics to mini-bonds.

Similarly, I welcomed the Chancellor’s announcement in the 2020 Budget that the Government would bring forward legislation to allow credit unions the opportunity to offer a wide range of products and services. Credit unions are a form of financial mutual, and I am proud to support the fantastic work of the Darlington Credit Union. I hope that the hon. Member for Cardiff North welcomes that news, as I am assured that it will help us to continue to grow sustainably over the longer term, while providing a pivotal role in financial inclusion over the coming years for the mutual sector.

[Dehenna Davison (Bishop Auckland) (Con)]

Co-operatives UK produced a report in 2019 which said that the north-east has the highest number of co-operatives per head of population. Does my hon. Friend agree that getting the policy on co-operatives right is even more vital for the north-east and the areas that he and I represent?

[Peter Gibson]

I am grateful to my hon. Friend for her intervention. She is a strong champion for all that is great about the north-east, and I welcome her contribution.

I recognise the phenomenal contribution of co-operatives to our diverse economy. However, I cannot support this Bill. My hon. Friend the Member for Christchurch (Sir Christopher Chope) got to the nub of the issue—this is not a green Bill; it is a Bill to change the laws around co-ops to the detriment of their members.