Covid-19: Disparate Impact

Philip Hollobone Excerpts

Thursday 22nd October 2020 Commons Chamber

[Kemi Badenoch]

That would be outside the terms of reference of the review that I am leading over the year. However, as a Treasury Minister, I can tell the hon. Gentleman that we have distributional analysis that comes out with all this information and influences all the policies that we put out in terms of economic interventions for specific groups.

[Mr Philip Hollobone (Kettering) (Con)]

I commend my hon. Friend for her statement and for the report. Given the high level of concern about the impact of covid-19 on ethnic minorities, and given that a vaccine will be a very large part of the solution to the pandemic, why does she think there has been such a disproportionately low number of ethnic minority people coming forward to volunteer for the NHS vaccine registry?

Oral Answers to Questions

Philip Hollobone Excerpts

Tuesday 24th March 2020 Commons Chamber

[Rishi Sunak]

1 am very grateful to the hon. Member for his warm words; I appreciate them. We are looking at pace at what support can be provided. The fact is that the universe of 5 million that we are dealing with contains such a wide variety of different people that we are unable to target support. That is the challenge in designing something that gets to the people who we want to help, while at the same time being affordable and not having to benefit absolutely everybody. That is proving to be problematic, but we are hard at work on it.

In terms of delivery, it is almost certainly going to be the case that we would have to build another brand-new system to deliver any support. I am sure that hon. Members on both sides of the House would agree that, in terms of prioritising system design, the scheme that we have set up for 90% of the workforce who are employed should be delivered first and quickly, and that is what we have committed to do, ideally by the end of April. We are looking at how we can do these things in sequence or in parallel, but I take the hon. Member’s point: people are anxious. That is why we deferred the self-assessment tax return that is due shortly to provide some cash-flow benefit. We have also deferred VAT to a significant degree, which will help with cash-flow benefit, and many self-employed people will benefit from the business interruption loans, which are also interest-free.

[Mr Philip Hollobone (Kettering) (Con)]

6. What estimate he has made of the number of businesses in (a) Kettering constituency, (b) Northamptonshire and (c) England that will benefit from the emergency cash grant scheme announced on 17 March 2020.

[The Financial Secretary to the Treasury (Jesse Norman)]

We are providing cash grants of £10,000 to over 700,000 small and medium-sized businesses across England and grants of up to £25,000 per property for qualifying retail, hospitality and leisure businesses. We estimate that these combined measures will benefit up to 1 million businesses in England. Local authorities will deliver these grants over the coming weeks and consequently will have information about the number of firms that have benefited at a local level in due course.

[Mr Hollobone]

I declare my interest as a member of Kettering Borough Council. May I thank the Chancellor and the Treasury for coming forward at top speed with this business support package? May I also thank all the hard-working staff at Kettering Borough Council who will be delivering these grants to local businesses? Will the Minister send out the message to Kettering and the country that when the economy comes roaring back, once this pandemic is over, local authorities will have played a key role in ensuring that that happens?

[Jesse Norman]

I thank my hon. Friend for that wise comment. We very much share his views. Local authorities are crucial to delivery of a whole range of the support that we are now giving, and we will be very much acknowledging their role. We will also be supporting them, as he will know, through the business rates process and the hardship fund.

Coronavirus: Employment Support

Philip Hollobone Excerpts

Thursday 19th March 2020 Commons Chamber

[John Glen]

The Government will do whatever it takes, but we also want to make sure that when we do it, it will be effective. The hon. Gentleman made a specific point about statutory sick pay, and the Government will bring forward a package of measures in due course.

[Mr Philip Hollobone (Kettering) (Con)]

Many of the “just about managing” are not managing, and there will be many more of them in the next few days. The last thing we need at this time is an over-engineered new system. As a humble Back Bencher, I have heard many good ideas in the Chamber this morning—particularly from my right hon. Friends the Members for Chingford and Woodford Green (Sir Iain Duncan Smith) and for Tunbridge Wells (Greg Clark) and the right hon. Member for East Ham (Stephen Timms). If those three right hon. Members are not in No. 11 for a meeting later today, I will be really disappointed. We have had the architect of universal credit in the Chamber, and he has given the Government the answer to their problem. Please can we get a move on?

[John Glen]

I take the challenge from my hon. Friend in the spirit in which it was intended. There is no sense that the Treasury is trying to over-engineer anything. We are not trying to restrain spending for the sake of restraining it. We want to bring forward an effective package of measures that effectively meets the needs of the most vulnerable. My hon. Friend makes the reasonable point that a number of colleagues of great seniority have raised significant points of interest, and I will ensure that their contributions are heard at the heart of this process today.

Economic Update

Philip Hollobone Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

We have outlined a package of measures to support small businesses specifically. Indeed, 700,000 of our smallest businesses will now be receiving a £10,000 grant. I suggest that the hon. Lady’s constituent Andy contacts his local authority for further support, either on business rates or local council tax support, where we are injecting an extra half a billion pounds into the system.

[Mr Philip Hollobone (Kettering) (Con)]

I declare my interest as a member of Kettering Borough Council. I commend the Chancellor for coming up with a £350 billion business support package in record time. That will be welcomed by many small businesses in Kettering. Billing authorities such as Kettering Borough Council are already at their busiest time of year, sending out council tax bills. Can the Chancellor explain what role they will play in getting business support to local businesses and what extra support they will get to enable that to happen?

[Rishi Sunak]

My hon. Friend makes an excellent point. He is right to highlight the capacity of local authorities to execute this plan. The Communities Secretary is working closely with them and they will be provided with extra resource funding to deal with the extra administration they will now have to undertake on our behalf. But I know and have confidence that they will do that job extremely well.

Lloyds, HBOS and the Cranston Review

Philip Hollobone Excerpts

Tuesday 4th February 2020 Westminster Hall

[Kevin Hollinrake]

Absolutely, and we see that time and time again. It is not just about businesses or jobs—although clearly businesses and jobs are lost—but about the effect on people’s lives. I understand that as a business person myself. My business has been my life. If somebody had taken my business away from me in those circumstances, I do not know how I would have coped.

The Minister may say that many cases are not proven or that the banks may write with various reasons why claims are wrong. That is why we do not put the APPG forward as an arbiter of whether the customer or the bank is right in such cases. We do not think the APPG, the victims or the banks should play that role; it must be somebody entirely independent. As I have said before, we recommended a tribunal approach to solving this imbalance of power. What my hon. Friend the Minister has managed to bring about is something new, called the Business Banking Resolution Service, which we think is a great step forward. We in the APPG have been working with the BBRS for the past year. It will mean that we can look at historical cases and at cases going forward, and at larger businesses too. It is absolutely the right thing, and we believe that the method of adjudication is good.

Our concern is, of course, as I have discussed with the Minister on many occasions, that that approach excludes people who have been through other independent bank-led reviews, which we think is wrong. We think the banks should look at such cases again where there is material evidence that something has not been settled fairly, but with the BBRS as a fallback. We think that is fair, and that should go for all victims of all bank-led remediation schemes who feel there is still a case to answer.

We also think there are other issues that need to be dealt with within the Lloyds Bank Review, certainly on eligibility. The review had very tight restrictions on eligibility: the victim had to have dealt directly with one of the two people convicted of the direct fraud, Lynden Scourfield or Mark Dobson. We think that is an unfair restriction. Lloyds has made ex gratia payments—I think £65,000 in total—that are only allocated to certain people who have been through that scheme or are assessed as being appropriate to go through that scheme, which, again, we think is unfair. Lloyds should look again at that.

We see a lot of people now putting their cases forward for the Business Banking Resolution Services. Our constituents who have these kinds of problem can put their cases forward, and we urge them to do so, but when they do, while their cases are being assessed, we think the bank should declare a moratorium or a stay of proceedings on any cases going through that process.

To conclude, we see this as a crucial opportunity, not only for Lloyds to get this right now, but for the wider business-banking relationship. We are very grateful to the Minister for the steps he has taken, both in appointing Sir Ross Cranston and on the Business Banking Resolution Service. We very much thank Sir Ross Cranston for his excellent work. We see this as a crucial opportunity to restore confidence in the free market system, to ensure that individual victims have access to justice and compensation and to improve the appetite for SMEs to borrow, start businesses and grow them, thereby giving a timely boost to UK plc. Let us ensure that we do not waste the opportunity.

[Mr Philip Hollobone (in the Chair)]

The debate can last until 5.30 pm. If there are any Back-Bench contributions I can take those, but I need to call the Front Benches no later than 5.7 pm. The guideline limits are five minutes for the SNP, five minutes for Her Majesty’s Opposition and 10 minutes for the Minister, and then Mr Hollinrake has a few minutes to sum up the debate at the end. The latest intelligence I have received is that we are expecting Divisions at 5.30 pm, but that they might come earlier. Members will know that if a Division comes during the debate, we have to adjourn for 15 minutes or half an hour, so Members might want to be mindful of speeding up their contributions to ensure that we finish the debate before a Division occurs.

--- Later in debate ---

[John Glen]

I will in a moment.

The aforementioned Business Banking Resolution Service opened to expressions of interest last November, ahead of its full launch later this year. Meanwhile, the expansion of the FOS last April means that over 99% of all SMEs now have access to fair, free and fast dispute resolution.

The hon. Member for Strangford (Jim Shannon) asked me to give way; I am happy to do so, but I want to refer to the points that he made. He referred to the eligibility of the BBRS. It is not for me to determine the eligibility of the BBRS, but his points about the prioritisation of cases will have been heard very clearly by those who have set up that service, and I urge the BBRS to reflect on his contribution to this debate.

The BBRS and the expansion of the FOS build on several initiatives that the Government have introduced, including the senior managers certification regime, which will hold key individuals at banks to account for the decisions that they make, including decisions that could impact on their SME customers. The industry has also made changes. For example, all major lenders are signatories of the standards of lending practice, ensuring that banks treat their customers in a fair and reasonable way. I hope that these steps, together with the work carried out this year to address historic SME disputes, will bring unresolved disputes to a close and prevent the same circumstances from occurring again.

I will conclude by saying that over the past year Sir Ross has taken considerable time to discuss sensitive and often distressing matters with customers; he has had 49 meetings with 62 customers, alongside his adopting a detailed and forensic approach to the cases he has reviewed, so I thank him for his efforts.

I welcome the commitment of Lloyds to implementing the recommendations of the Cranston review, and I will follow progress closely. I note the points made by the hon. Member for Glasgow Central (Alison Thewliss) and others, and I will reflect on them carefully.

The establishment of the Business Banking Resolution Service provides a further means of redress, and I look forward to seeing it bring closure to many long-running disputes. I am confident that we can continue to build on the good work that industry, small business representatives, regulators and Government have begun to rebuild trust, so that small businesses can access the finance they need to prosper and grow.

[Mr Philip Hollobone (in the Chair)]

I call Kevin Hollinrake to sum up the debate.

Growth Strategy

Philip Hollobone Excerpts

Tuesday 21st January 2020 Westminster Hall

[John Redwood]

I agree, and one of the things I hope will happen as we pursue policies that spread prosperity more widely is that some of the higher value-added activities that people come to London for will be carried out in other cities around the country. If somebody established a manufacturing business in a great northern city, it would be good if they had their media advice, public relations, legal advice, accountancy advice, consultancy advice and all the rest of it from firms in northern cities that specialised in those things, rather than the current model, where many of them come to London to take advantage of the excellent business and professional services available there.

In attracting more industry to the northern and western cities and towns, we need also to be conscious of encouraging the cluster of service businesses around them that can add value in other ways. In modern manufacturing, a lot of the traditional work is now done by machines and robots, so the individual plant does not attract a large number of jobs; the jobs are in all the other things—marketing, PR, services, legal, accountancy, invoicing and so forth—and we want to make sure that enough of those jobs come with the factory to the local area. That is where we have to see what other policies we need to put in place to spread such jobs more widely around the country.

The productivity puzzle is also caused by the public sector not innovating enough and not raising its productivity. It has been noticeable under Labour and Conservative Governments and the coalition that public sector productivity has stalled. That is disappointing, and we have a large public sector, so we need to get the Government to direct their attention to that, because the one bit of the productivity puzzle they can actually manage is the public sector, and Ministers have various powers to encourage and promote innovation.

I was interested to hear the Secretary of State for Health and Social Care talking last night about the role of innovation, new ideas and smaller businesses in the health service. There is huge scope for better partnership between innovative smaller and medium-sized companies and the public sector. The current contracting rules do not work well for many small businesses. It is difficult, because often the public sector wants a large solution for an awful lot of locations, and the small business can only handle so much and cannot scale up quickly enough. I hope that the Government will have another look at how the best of the private sector can be harnessed for the productivity increase we need from better innovation and better technology in big areas of the public services.

We must make sure that we see the technological revolution as a potential friend and not a potential threat. I was quite surprised this morning when reading the background papers for Davos—a meeting that I was not invited to and did not want to go to—to see how negative they were about technology. It was seen as a threat to be tamed and slowed down; as something that was going to destroy jobs and be very disruptive. It talked about the endless dislocations, whereas the public see much of technology as their friend. Why does America have huge success with trillion-dollar companies? Some of them are, and some of them seem to be trillion-dollar companies. Where have Facebook, Apple, Amazon and Netflix got their strength from? They have got it because they have public support. It is all very well for a politician to say, “They are wrong about this and wrong about that, and we need to regulate them and stop them doing this”, but it is a bottom-up revolution that we should not ignore. Those are things that people want. They have completely changed how people lead their lives.

People now go out to restaurants together and sit there with their iPods or smartphones not talking to each other. I am not sure that that is a great development for human relationships, but it shows that the technology has been transformative for people’s lives. They have much more instant information and much more ability to communicate to set out their views. It is not just what the BBC tells us; it is what we push back through social media these days, which some of us welcome. So we have a new model, and there is a danger that the Davos elite see it as a threat to their control over everybody. They are getting out of touch with what the public want. We should broadly welcome the technological revolution. I understand that a lot of our constituents like its services and products. We need to learn to live with it and co-operate with it in a sensible way.

As we come out of the EU, there are huge opportunities for us. Contrary to the misleading comments that some people have made, I have always taken the view that we can be better off as we leave the EU, not worse off. I have never understood why people are so negative about it all. I will simply end with a few obvious points about how we can be better off in certain areas. We can have a much bigger fishing industry. I hope it will be a prime task this year to create the conditions for that. We certainly do not want to keep on sacrificing our fish to over-exploitation by continental trawlers. We want to land more of our own fish while having a good conservation policy for stocks as a total, and that should then lead to onshore activities for fish processing and food manufacturers based on the excellent fish stock that we have available.

There are huge opportunities in farming. A lot of people would like to buy more local produce for all sorts of reasons. We like to support local farms. We are conscious of wanting to cut down food miles. We often like the flavours and benefits of locally produced food. We can do more of that, and there are ways in which, as we come out of the common agricultural policy, we could aim to get back to the levels of self-sufficiency in food that we enjoyed before our period in the common agricultural policy lowered it quite considerably.

We should also concentrate on our defence industries. We are making a commitment to spend more each year on defence so that we are more secure, but we are not truly secure unless we can make all the weapons and defence goods that we need in time of war. We must not be dependent on other people’s technology that we cannot access independently, or on imports over perilous sea lanes in times of conflict. We need to be able to scale up, and I urge all those involved in defence to see a big opportunity for us to make more of our own defence equipment. We should certainly make sure that we have control so that if the need ever arose, which I hope it does not, we would be able to scale up quickly without major issues.

I have gone on for rather a long time and I know that colleagues wish to debate these matters, so I will leave my other ideas for another time, but my conclusions are that we should not underestimate the damage that high tax rates do; that we should not underestimate the ability to generate more revenue, if we are brave on tax rates, by getting them down; and that we should pay particular attention to the big ticket items—homes and cars—that have been damaged by a variety of negative forces in recent years. I say a big thank you for the change in fiscal strategy. I hope that the Bank of England will join the party in wanting to promote growth as well, because that would make a considerable difference. It has been going in the wrong direction for some time, unfortunately. Let us make sure that all the obvious opportunities from Brexit, particularly in sectors that have been under strong EU control, are grasped warmly because they would give us some early wins.

[Mr Philip Hollobone (in the Chair)]

The debate will last until 11 o’clock, and I am obliged to call the Front-Bench speakers at no later than 10.27. The guideline limits are 10 minutes for the Scottish National party, 10 minutes for Her Majesty’s Opposition and 10 minutes for the Minister. Sir John Redwood has two or three minutes to sum up the debate at the end, but until 10.27 we are in Back-Bench time. Three Members wish to speak. I will not impose a limit, but the guideline is about seven minutes each so that everyone gets to speak.

Oral Answers to Questions

Philip Hollobone Excerpts

Tuesday 1st October 2019 Commons Chamber

[Sajid Javid]

That is such a ridiculous suggestion it does not deserve an answer.

[Mr Philip Hollobone (Kettering) (Con)]

If we leave the EU without an agreement, do we get to keep the £39 billion?

[Sajid Javid]

The figure of £39 billion is based on a deal. If we end up leaving with no deal, that £39 billion number is no longer relevant.

High-income Child Benefit Charge

Philip Hollobone Excerpts

Tuesday 3rd September 2019 Westminster Hall

[Mr Philip Hollobone (in the Chair)]

The debate can go on until 7.30 pm. I am obliged to call the first of the Front-Bench spokespeople at no later than seven minutes past 7 o’clock. The guideline limits are five minutes for the SNP, five minutes for Her Majesty’s Opposition and 10 minutes for the Minister to respond. Mr Mackinlay will then have three minutes at the end to sum up the debate. Until 7.7 pm, therefore, we will still be in Back-Bench time. I see that Mr Jim Shannon wishes to contribute.

--- Later in debate ---

[Jesse Norman]

I am keen to press on. If the hon. Lady wants to make another intervention, we will lose time that I can use to respond to other questions.

[Mr Philip Hollobone (in the Chair)]

Order. The intervention is in the gift of the Minister, but I draw the House’s attention to the fact that the Minister has only 5 minutes left.

[Anneliese Dodds]

Thank you, Mr Hollobone. I merely state that the Minister is correct in relation to income tax, but not in relation to other taxes.

NHS Pensions: Taxation

Philip Hollobone Excerpts

Monday 8th July 2019 Commons Chamber

[Elizabeth Truss]

I would be interested to hear precisely what the hon. Lady is suggesting the Treasury does. The Treasury has to look at the pension tax system for all professions and occupations, and it is right that the Health Secretary speaks specifically to those operating in the medical sphere and the Treasury looks at the broad overview.

[Mr Philip Hollobone (Kettering) (Con)]

For the first time, I find myself in agreement with the contributions from the Front Benchers from the Opposition and the Scottish National party. This problem has been coming down the track for at least three years and nothing has been done to stop it. The last thing the NHS needs is senior doctors refusing to work overtime at the weekends and our waiting lists getting worse, not better. The Chief Secretary has bravely come out to bat for the Treasury today, but we must avoid this silo mentality between the Treasury and the Department of Health and Social Care. This is a problem for the whole of the Government, and she and the Health Secretary need to get it sorted out urgently.

[Elizabeth Truss]

We are working closely with the Health Secretary on this issue, and that is the right way to do things; it is right for the Health Secretary to deal with organisations such as the BMA and it is right for the Treasury to look at the overview. The Chancellor has looked at this over the past three years, and I am sure the representations my hon. Friend has made today will be taken very seriously by him.

Oral Answers to Questions

Philip Hollobone Excerpts

Tuesday 2nd July 2019 Commons Chamber

[Elizabeth Truss]

I do not agree with the hon. Lady’s analysis. The fact is that income inequality is lower now than it was in 2010 and absolute poverty after housing costs is at a historic low for children.

[Mr Philip Hollobone (Kettering) (Con)]

Can the Chief Secretary confirm that the number of children living in workless households is now the lowest ever record achieved in our country?

[Elizabeth Truss]

My hon. Friend is absolutely right. It is because of our welfare reforms and economic policy that more people are now in work and are benefiting from our cuts to basic rate tax, giving working families £1,200 a year extra in their pay packets.