Oral Answers to Questions

Philip Dunne Excerpts

Tuesday 19th December 2023 Commons Chamber

[The Economic Secretary to the Treasury (Bim Afolami)]

I thank the hon. Gentleman for his question. Indeed, I will meet him to discuss the matter to make sure that this regulation does not have the adverse effects that he has outlined.

[Philip Dunne (Ludlow) (Con)]

Since the Prime Minister’s speech on net zero in September, Nissan has announced a £2 billion investment in Sunderland, which comes hot on the heels of Tata’s £4 billion investment in batteries. EDF Masdar has announced an £11 billion investment in offshore wind in Dogger Bank. In his autumn statement, the Chancellor announced a tripling of tidal energy contracts for difference. We had 11 hydrogen projects announced last week. There are six companies bidding for small modular reactors. [Interruption.] Is it not the case that, hot on the heels of yesterday’s announcement of a £6 billion allocation of energy efficiency funding and the carbon border adjustment mechanism—

[Mr Speaker]

Order. We had this last time with you. I’m sorry, but I am trying to be generous because it is Christmas. Do not take advantage of other Members; I still have others to get in. It is just not fair, and it is very selfish to carry on when I have asked you not to. I do not find it acceptable. I look forward to the apology shortly. Would someone like to answer that question, briefly?

Financial Services and Markets Bill

Philip Dunne Excerpts

Consideration of Lords message
Monday 26th June 2023 Commons Chamber

[Andrew Griffith]

In the interests of making progress on this substantial Bill, I shall not be tempted to comment on this further other than to say that I undertake, as I have to many other Members, to look very closely at that issue. For example, if by “associates” we mean either the adult children of people who have no real connection to the business that happens in this House, or family businesses that, again, are not directly connected to those who have put themselves forward for public service, I shall look closely at that. That is why we have tabled the amendments.

Lords amendment 39 requires the FCA to conduct a review into whether financial institutions are adhering to its guidance on the treatment of PEPs, and to assess the appropriateness of its guidance in light of its findings. Together, the amendments will lead to a change in how parliamentarians and their families experience the regime, and I am confident that they will be welcomed by all.

I will now set out the Government’s response to the non-Government amendments made in the Lords. The Bill introduces a new regulatory principle requiring the regulators to have regard to the Government’s net zero emissions target. Lords amendment 7 seeks to add conservation and the enhancement of the natural environment and other targets to this regulatory principle. The Government cannot accept the amendment as drafted, which is very broad and open to interpretation. The regulators must balance their objectives carefully, and they have a very important job to do. At a time when the Bank of England is rightly occupied by getting a grip on inflation, and the FCA is dealing with a range of challenges including working with lenders to ensure that there is support in place for those experiencing increases in mortgage interest rates, we must not overburden them with other considerations, particularly when they are vague or of uncertain relevance.

[Philip Dunne (Ludlow) (Con)]

My hon. Friend is making a very clear exposition of the Government’s position on the Lords amendments. On replacing Lords amendment 7 with a Government amendment, will he make it clear, for the benefit of the House and the other place, that his proposal is both effective in law and will give effect to the substance of what their lordships were seeking, which is that nature should be a key responsibility under the Bill?

[Andrew Griffith]

I give my right hon. Friend that assurance. This is not about a different destination; the Government have a proud record of action on net zero, on nature and, as we will come on to talk about, on deforestation. This is simply the best mechanism by which we can get from here to there. It builds upon the well-defined targets set in the groundbreaking Environment Act 2021, and in so doing produces something that we think regulators can advance while giving the right clarity to those objectives.

Lords amendment 36 seeks, laudably, to require financial services firms to introduce a due diligence regime to ensure that they do not support illegal deforestation in their activities. I see no fundamental conflict between having a vibrant, competitive, world-leading financial services sector and taking the very toughest approach on deforestation. The House considered a similar amendment from my right hon. Friend the Member for Epsom and Ewell (Chris Grayling) on Report. As I set out then, the Government fully support the intention behind the amendment, but further work is needed to ensure that a practical regulatory framework can adequately address this important topic.

I am grateful for the work of the Global Resource Initiative and in particular for its May 2022 finance report, which directly addresses these issues. The GRI talked about the need to take a staged approach and said that further work would be needed to come forward with a set of detailed standards and due diligence requirements to prevent the financing of forest risk commodities. Any intervention must therefore be scoped in detail and ensure that the UK moves in lockstep with international partners to ensure the true effectiveness of the regime in tackling the scourge of financing illegal deforestation.

The GRI report acknowledged that the well-developed work of the task force for nature-related financial disclosures, TNFD, will be increasingly important, especially as it has now included recommendations on deforestation in its draft standards. That is an organisation that the UK Government support and have provided finance to, and it is supported by the finance leaders of both the G7 and G20.

[Philip Dunne]

My hon. Friend is being very generous with his time. Without wanting to pre-empt the work of the Environmental Audit Committee, which is doing an inquiry into the whole subject of financing deforestation and what this country can do, I congratulate him on the amendment he has tabled in lieu of the Lords amendment. I think his amendment will do precisely what our Committee is likely to call for when we report in a few weeks’ time.

[Andrew Griffith]

I thank my right hon. Friend for his work and the work of his Committee, and for being so kind as to suggest that we may be anticipating his conclusions—not that I had prior knowledge of them. The important thing, a point made well by my right hon. Friend the Member for Epsom and Ewell, is that we get on and do this from a practical perspective. We have committed to convening a series of roundtables during the remainder of 2023, which will form the basis of a taskforce to drive forward the work of that important review and support the development of clear due diligence standards.

Alcohol Duty

Philip Dunne Excerpts

Monday 19th December 2022 Commons Chamber

[James Cartlidge]

I am grateful to the hon. Gentleman for mentioning the producers in his constituency: Robinsons Brewery and Stockport Gin. I am grateful to them for all they are doing in these challenging times to provide employment in his constituency and support consumers with the products they offer. That is what this is all about—supporting those companies and vital sectors in our constituencies. The hon. Gentleman asks about a long-term commitment. This is the biggest reform to alcohol duty for 140 years. It is a significant reform, getting the balance between competitive rates of duty and consideration of public health, which is incredibly important. It is an opportunity we should all seize and welcome.

[Philip Dunne (Ludlow) (Con)]

I warmly welcome the proposals announced by the Minister today in one of his most impressive performances at the Dispatch Box, and in particular the differential duty rates to allow pubs and restaurants to charge their customers a lower rate of duty than the off-trade, for which many of us have called for a long time. I also congratulate him on the point made by the Father of the House—differential rates on wines will be consolidated to a single rate for the vast majority of wines—because that reaches the principle of simplicity, which was an essential part of the consultation. What is the 18-month period dependent on? If we were to move then to differential bands per percentage of ABV, that would not really help the trade to prepare. The trade needs to know where it is going.

[James Cartlidge]

I am grateful to my right hon. Friend for his kind words. My first ever Parliamentary Private Secretary job was as a PPS to him, as a brilliant Health Minister. He mentioned simplicity: he is absolutely right that that is a key part of the reform package. In terms of the wine easement, as we call it, the 18 months is there precisely to enable the sector to adapt to the changes that are coming. He was also right to emphasise the on and off-trade differences. There is a key point on those differences. It is again about public health. The evidence shows that, while all drinking should be done responsibly, where people are socialising and going to the pub, they are less likely to encounter the more severe end of problem drinking; that is more likely to happen in private. That is one of the reasons why we have the differential.

Autumn Statement

Philip Dunne Excerpts

Thursday 17th November 2022 Commons Chamber

[Jeremy Hunt]

Yes. The hon. Member said it was at the doorstep of No. 10. I think that is to ignore the reality staring him in the face.

[Philip Dunne (Ludlow) (Con)]

I congratulate my right hon. Friend on the exceptionally skilful delivery and content of his statement. I point particularly to the work that he was just touching on in response to the question from my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom) about energy efficiency. He has today set an interim target to reduce energy demand in this country by 15% by 2028. That is the first time that we have done that, as far as the Environmental Audit Committee, which I chair, is aware. It plugs a gap in the energy security strategy, which did not address reducing demand. I urge him, in his discussions with the Secretary of State for Business, Energy and Industrial Strategy, to ensure that when the work of the energy efficiency taskforce is designed, there is engagement with the industry that has to deliver the reduction—unfortunately, neither the Treasury nor his predecessors in BEIS have done that adequately in previous schemes—to ensure that the scheme will endure, and actually work and deliver reductions at a household level.

[Jeremy Hunt]

My right hon. Friend understands this extremely well, and he has done very good work with his Committee. This is a national ambition, which means that the Government and every family in the country need to work together to reduce our national energy bill by tens of billions of pounds, to meet our climate change commitments, and to reduce the average bill in this country at today’s prices by nearly £500. It is really worth doing, and we are putting our money where our mouth is with billions of pounds more investment.

Oral Answers to Questions

Philip Dunne Excerpts

Tuesday 15th November 2022 Commons Chamber

[Andrew Griffith]

Not only is that a good idea, it is a Conservative idea that we have already introduced. I am glad the right hon. Gentleman has belatedly latched on to it.

[Philip Dunne (Ludlow) (Con)]

With interest rates rising around the world, many others countries are considering more imaginative ways of enabling those with mortgages to continue to pay. Will my hon. Friend look at the schemes operating in the United States that allow lenders to extend the duration of a mortgage to allow payments to remain on an even keel and, therefore, to remain more affordable for hard-pressed households?

[Andrew Griffith]

Yes, I will do that. My right hon. Friend is right to point to the fact that mortgage rates have been rising throughout the world. This Government will always be on the side of trying to protect people with mortgages. Lenders are responsible and are willing to extend. The advice is that people should always speak to their lender if they have difficulties. I will certainly look at the case he mentions.

Oral Answers to Questions

Philip Dunne Excerpts

Tuesday 17th May 2022 Commons Chamber

[Mr Clarke]

We absolutely do accept that, which is why we brought forward a £22 billion package of support this year, with help ranging from reducing the burden of tax to providing support on things such as energy bills. That is absolutely in recognition of a very challenging economic landscape for people to be operating in, owing to the impact of the global pressures we are facing on inflation. We are clear that we have a plan for jobs and a plan for growth, and that we will get through the current crisis and deliver a much better future for the people of this country on the other side of what have been a remarkable couple of years and a very difficult one for the whole developed world.

[Philip Dunne (Ludlow) (Con)]

13. What fiscal steps his Department is taking to support small and medium-size enterprises.

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

Small and medium-sized businesses are at the heart of our economy, creating jobs and prosperity across the UK. Last week, we wrote to more than 2 million businesses setting out our support to them, including a £1,000 cut to employment taxes, extending the annual investment allowance limit, reducing business rates and cutting fuel duty by 5p.

[Philip Dunne]

In considering responses to the Treasury’s consultation on simplifying alcohol duty, will my hon. Friend consider a model that broadly relates duty to alcohol strength but without creating massive complexity and cost for the UK’s thousands of off licences and wine shops, including important small and medium-sized enterprises in Shropshire, which create jobs, supporting both the wine import and brewing sectors?

[Helen Whately]

As my right hon. Friend knows, we have set out our plans to make alcohol duty simpler and fairer—a change that is long overdue. That includes a new relief for draught beer, small producer relief for craft cider makers and the end of the higher rate for sparkling wine. I am listening to the sector and I have visited businesses to hear for myself, to make sure that the reforms work in practice.

VAT (Listed Properties)

Philip Dunne Excerpts

Wednesday 4th March 2020 Westminster Hall

[Craig Mackinlay]

The listed places of worship grant scheme has been in place since 2001. It has been taken up by 89% of churches; one third take up the scheme every year; and most churches, over the cycle, have used it six times. It is working quite well, but obviously it is not as clean as a pure exemption. I will come on to analyse that further.

Listed properties are owned by the normal cross-section of the population. The beautiful town of Sandwich in my constituency is home to more listed properties than any other town in the country. It is one of the best-preserved medieval towns in England. I want to do everything I can to help to preserve it and the other great medieval towns across our country.

[Philip Dunne (Ludlow) (Con)]

I congratulate my hon. Friend on securing this important debate for those of us who represent areas like Sandwich that have a high preponderance of listed buildings. There are more than 3,000 in my constituency. They are often in rural areas where properties are remote, isolated and, in many cases, hard to heat. I hope that he will talk about the opportunity to reduce VAT to, say, 5% on renewable energy initiatives in listed properties, which the Minister might want to take into account in the forthcoming Budget or the comprehensive spending review later this year.

[Craig Mackinlay]

My right hon. Friend makes an important point for people who have older properties, which are expensive to heat. We have ambitions to be carbon neutral by 2050, so the current regime of charging full VAT on trying to do the right thing for the Government’s other ambitions seems somewhat perverse.

[Philip Dunne]

My hon. Friend will remember that it was introduced by the EU. We had to reduce the previous concession as a result of an EU directive. Now we are free from EU directives, we may be able to be more liberal in our interpretation of VAT laws.

[Craig Mackinlay]

We are branching into another area, but my right hon. Friend is correct. Just a few months ago, we were forced to raise the rating on small renewable units from 5% to 20% because we lost a European Court of Justice judgment. That is quite perverse in the current environment.

Oral Answers to Questions

Philip Dunne Excerpts

Tuesday 1st October 2019 Commons Chamber

[Mr Philip Dunne (Ludlow) (Con)]

With a third of banks, many of which had ATMs, closing in rural areas, and with very poor mobile connectivity in those areas meaning that digital payment schemes are not possible, I was very pleased to learn of yesterday’s announcement by UK Finance on Community Access to Cash, to which the Economic Secretary referred. That is the way forward, but what can he do to reassure business providers that if they provide ATMs, they will be safe from break-in?

[John Glen]

We have to ensure that there is a wide range of options in rural areas. A number of trials are under way to provide solutions, underpinned by the investment in gigabit infrastructure that my right hon. Friend the Chancellor announced yesterday, which will ensure that we have even better connectivity in remote rural areas.

Oral Answers to Questions

Philip Dunne Excerpts

Tuesday 21st May 2019 Commons Chamber

[John Glen]

What is important is that this Government continue to focus on creating jobs, and allowing families to experience the value of such a job and receiving more money in their household take-home pay, and that is what we will continue to focus on.

[Mr Philip Dunne (Ludlow) (Con)]

8. What fiscal steps he is taking to support the high street.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

High streets are at the heart of our communities, and they serve a social as well as an economic purpose. To support them, at Budget 2018 I cut business rates for small and medium-sized retail premises operated by independent retailers by a third for two years from April 2019, saving businesses over £1 billion. We have also set up a £675 million future high streets fund.

[Mr Dunne]

I very much welcome those measures in last year’s Budget, but for this coming comprehensive spending review, will my right hon. Friend consider offering occupiers of listed premises in town centres with freehold or full repairing lease obligations a VAT exemption on repairs and maintenance of those premises, which is a cost they have to bear but their online competitors and other retailers outside high streets do not?

[Mr Hammond]

I have to say to my right hon. Friend that, under EU law, we cannot introduce a reduced rate of VAT that is limited to repairs, maintenance and renovation of listed buildings. In any case, VAT incurred on their properties by VAT-registered businesses may be recoverable from Her Majesty’s Revenue and Customs, subject to the normal VAT recovery rules. However, the good news is that we remain committed to supporting our high streets, and on Saturday we announced a £62 million fund to breathe new life into historic buildings on heritage high streets, which I hope will go some way to helping.

--- Later in debate ---

[The Chief Secretary to the Treasury (Elizabeth Truss)]

I had a very useful meeting with the hon. Lady a month or so ago, and we are now taking forward the work and evidence she presented us with and working with the Home Office on looking at the economic benefits of taking more action to help survivors of child sexual abuse. It is a priority for the spending review to make sure we deal with violence against women and girls.

[Mr Philip Dunne (Ludlow) (Con)]

T2. The Government have an excellent track record in tackling climate change, notwithstanding what Opposition Members said earlier, and I applaud their commitment to doing more. Will the Chancellor consider introducing incentives in the comprehensive spending review to encourage occupiers and owners of industrial and agricultural buildings to improve their energy efficiency?

[The Exchequer Secretary to the Treasury (Robert Jenrick)]

The clean growth strategy set out our ambition to enable businesses and industry to improve energy efficiency by 20% by 2030. Today farmers in a community such as Ludlow can make use of the rural development programme for agricultural buildings, but we have also announced two new schemes. First, there is the £315 million investment in a new industrial energy transformation fund, and secondly, we have published a call for evidence on a business energy efficiency scheme focused on smaller businesses.

Oral Answers to Questions

Philip Dunne Excerpts

Tuesday 11th September 2018 Commons Chamber

[John Glen]

We are very interested in that area and have published a response to the call for evidence. I am sure that the Chancellor will have heard the hon. Gentleman’s representations.

[Mr Philip Dunne (Ludlow) (Con)]

21. Will the Minister respond positively to the report of the Environmental Audit Committee on green finance, particularly by encouraging investment institutions such as pension funds to consider the long-term risks that climate change may pose to their investee companies?

[John Glen]

Absolutely. Only two hours ago, the Department for Work and Pensions published its consultation response on pension trustees’ duties, which clearly sets out the Government’s intention to raise the profile of financially material climate change factors in investment decisions.