Coronavirus: Employment Support

Richard Graham Excerpts

Thursday 19th March 2020 Commons Chamber

[John Glen]

The hon. Gentleman is perfectly right that we need a comprehensive package that deals with businesses, the voluntary sector and individual employees of different categories. We are looking very carefully at the best way to do that, in addition to the significant package of measures we have introduced. I feel his frustration and I will take all these points back and make sure that they are addressed.

[Richard Graham (Gloucester) (Con)]

The greatest difficulty for the Government in this fast-deteriorating situation of no one’s making is the speed of response. My worry is that the business interruption loans package will be too clunky for most small and medium-sized businesses, and the cash grants will take too long to get to businesses before decisions are made about jobs. Will the Minister look closely at the recommendation of our right hon. Friend the Member for Tunbridge Wells (Greg Clark)? If that were put in place, some of the recommendations made by my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) on universal credit would not be so important.

[John Glen]

I note the point that my hon. Friend makes about the clunkiness of existing measures, and obviously we are looking at the point raised by my right hon. Friend the Member for Tunbridge Wells. My hon. Friend the Member for Gloucester (Richard Graham) refers to the accessibility of the loans. The Government guarantee to the banks through the British Business Bank is in order to provide a massive incentive to making the loans available to solvent businesses as quickly as possible, but I hear his concerns, and they are reflected in the design and in conversations that we are having with the banks.

Economic Update

Richard Graham Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

As I said, the Housing Secretary will shortly outline our measures to protect renters. We understand well the point that the hon. Lady makes.

[Richard Graham (Gloucester) (Con)]

This is a huge step to support jobs. Speed is of the essence, so will the Chancellor confirm when the business interruption loans will be available and how quickly applications will be processed? Will he also confirm that the Communities Secretary’s package will cover renters, the self-employed, nurseries, community groups, kindergartens and charities so that all the people in those sectors will be reassured as well?

[Rishi Sunak]

My hon. Friend is right that speed is of the essence. The loan programme will be available from early next week. My right hon. Friend the Chief Secretary to the Treasury is doing an excellent job working with the banks to make sure that those applications will be processed at speed, so businesses that need that support will get it quickly.

Apprenticeship Levy

Richard Graham Excerpts

Tuesday 11th February 2020 Westminster Hall

[Richard Graham (Gloucester) (Con)]

I beg to move,

That this House has considered the effectiveness of the apprenticeship levy.

It is almost exactly 10 years since I secured my first debate, which was on apprenticeships, in this very Chamber. Ten years on from the arrival of the new coalition Government, with that a huge and welcome emphasis on apprenticeships, and three years on from the introduction of the apprenticeship levy, today’s debate is a good opportunity to review how the levy was introduced, what it aimed to achieve and how the levy process has gone so far.

However, let me first go back to 2010 as a starting point. At that time, I and various colleagues, including my right hon. Friend the Member for Harlow (Robert Halfon), who is beside me today, were desperately keen to recognise the value of apprenticeships, to restore their role in our nation as a key motivator and opportunity for social mobility, to improve the opportunities for our manufacturers, and to introduce apprenticeships into many of the service sectors where they did not then exist. We were looking for a renaissance of apprenticeships, and a boosting and strengthening of them, and we did that, broadly, in the first five years of the Government that was formed in 2010. Then there was the introduction of the levy.

[Kevin Brennan (Cardiff West) (Lab)]

I well remember that debate in 2010, not least because it had to be postponed because the Minister did not turn up on time, and so was held later. However, as the Minister with responsibility for apprenticeships immediately prior to the 2010 election, I wonder whether the hon. Gentleman would care to acknowledge that there was a big expansion of apprenticeships up to 2010, just as I would acknowledge the increase that happened thereafter. However, is not one of the problems with the current apprenticeship levy that it is too rigid, so lots of industries, including creative industries such as the film industry, find it impossible to offer apprenticeships?

[Richard Graham]

The hon. Gentleman is kind to recall that first debate; in fact, I had a printer problem and so, in addition to the Minister, I myself was late—it was a promising start to a promising career.

[Kevin Brennan]

I left that bit out.

[Richard Graham]

The hon. Gentleman kindly glossed over that. Some of the points he made about the flexibility of the apprenticeship levy are important, and I promise that I will come on to them.

In that debate—I have reviewed what I said then—all of us recognised that some work on apprenticeships had been done under the Government in which the hon. Gentleman served. There was no doubt about that, but we needed to put a rocket-boost into the system, and I think the figures confirm that we did, with 2 million apprenticeships being created between 2010 and 2015. Businesses and Government organisations, together with what the Government introduced by way of funding, made a huge difference. However, let us not go over that too much, because I want to see where we are today.

I will start with what the aims of the apprenticeship levy were. It is fair to say that the Government wanted to double the investment in apprenticeships, from roughly £1.2 billion to £2.5 billion, and at the same time deliver on their commitment in the 2010 manifesto to take the number of apprenticeships from 2 million to 3 million by 2020. Right at the beginning, there was also a quality expectation—an ambition to raise the level of the apprenticeships that were being studied for and to have more higher apprentices, who in turn would contribute to some sectors where we had and still have key competitive advantages—cyber and aerospace are obvious examples. In addition, there was certainly the implication of reducing the costs to the taxpayer by getting a greater contribution from the larger employers in particular.

[Stephanie Peacock (Barnsley East) (Lab)]

I congratulate the hon. Gentleman on securing this debate. The points that he has just made are really important, and I share his view of apprentices—until recently, I had a living-wage apprentice in my constituency office. However, when I met representatives of Barnsley College recently, they shared his views, but one of their concerns was that the apprenticeship levy is not benefiting the school leavers it was intended to benefit and that those who do benefit often are mid-career and doing things such as extra degrees, which is of course to be welcomed but is not what the levy was set up to do. I wonder whether the hon. Gentleman has any comments on that.

[Richard Graham]

That is an important point, and the hon. Lady anticipates what I was coming on to. I have had my own apprentice now for nine years; they do a level 3 business administration course, and there will be other Members here who employ their own apprentices. There is a question mark about whether those at the starting levels of apprenticeships have been supported as well as they could be through the apprenticeship levy.

Interestingly, when I arranged an interview between Business West, which effectively took over the running of apprenticeships from the chamber of commerce in Gloucestershire, with the previous Minister with responsibility for apprenticeships, she said very clearly that in terms of small and medium-sized enterprises

“it has been difficult for the non-levy payers, but we are now transferring them over to a new system which we do want to be simpler for them.”

The Minister who is here in Westminster Hall—the Under-Secretary of State for Education, my hon. Friend the Member for Chippenham (Michelle Donelan)—is not formally the Minister with responsibility for apprenticeships. Indeed, I believe it is true to say that there is still a gap in the Department for Education in terms of an actual apprenticeships Minister, which I hope will be filled soon through an appointment by our new Prime Minister. Nevertheless, I hope the Minister here today will be able to say a little about the speed of transferring the non-levy payers to the new system and how that has progressed. The previous Minister with responsibility for apprenticeships made her comments in July last year, so I hope there has been some progress in that regard.

However, just to respond to the point made by the hon. Member for Barnsley East (Stephanie Peacock), it is quite true that the numbers of level 2 and level 3 apprentices have come down sharply since the introduction of the apprenticeship levy, just as it is true that the numbers of levels 4 to 7 higher apprentices have risen sharply.

[Kate Green (Stretford and Urmston) (Lab)]

I congratulate the hon. Gentleman on securing this debate. He is absolutely right in his analysis of the figures. Last week, I had the great pleasure of shadowing a degree apprentice from my constituency who is studying at the University of Salford while working for Russell’s Construction—it was great to see a young woman taking such a good course in the construction industry. However, I asked Russell’s Construction what opportunity there was for it to deploy the levy through its supply chain to SMEs. The company seemed to be interested in doing that, but it could not see an easy process for doing it. Does the hon. Gentleman agree that that is something the Government might like to think about?

[Richard Graham]

The hon. Lady is absolutely right in one way, but of course a lot has changed relatively recently. Levy employers can now transfer 25% of their levy to other organisations, and the obvious opportunity there is to do it through their supply chain. For example, in a briefing I received from it in November, Tesco said it contributed roughly £20 million a year to the apprenticeship levy but that it is able to spend only about 15% of it, due to the inflexibility of the system. We will come on to the inflexibility of the system, but the key thing is that there is now this opportunity for Tesco to deploy a quarter of its levy, which would be £5 million, to some of the companies in its supply chain, which are typically SMEs. That is incredibly valuable, and I hope it is something that Tesco has taken up.

As a result of the hon. Lady’s question, I hope that other levy employers out there will be more aware of this opportunity. Business West asked a very similar question of the previous Minister with responsibility for apprenticeships:

“What would you advise colleges to do in September if they have gone over their non-Levy allocation and have 16 year olds wanting to start an apprenticeship with a non-Levy employer?”

The previous Minister—the former right hon. Member for Guildford—replied:

“I would approach the larger Levy paying firms in the area…There are lots of Levy payers who have not spent their levy pots.”

That is quite true; the question is whether it is as well-known as it should be. I know of examples from Gloucestershire Engineering Training where our county council and I think another public sector employer have used part of their levy to help an SME to ensure that its apprentice receives the training they need. However, such opportunities are not as widely known about as they should be.

[Paul Girvan (South Antrim) (DUP)]

I welcome the opportunity to speak on the importance of apprenticeships and the benefits that they bring to our overall economy. However, in Northern Ireland we face a difficulty in that, although firms contribute to the apprenticeship levy, no one has access to it. That came from the absence of an Executive, but now that we have one up and running, I hope we can level the playing field and ensure that we get an opportunity to comment on any new scheme that is introduced.

[Richard Graham]

I think the hon. Member was highlighting the issues faced by some small and medium-sized enterprises. There will be great opportunities through some of the larger manufacturing companies with a turnover of more than £3 million in Northern Ireland. I am thinking particularly of companies such as Thales. They have a wonderful opportunity to use some of the levy to help SMEs. It may just be about publicising those opportunities, both among SMEs and larger employers.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

On devolution, the four Welsh police forces give £2 million between them through the apprenticeship levy. Policing is reserved, but education and training are devolved. The Welsh Government insist that they are not responsible for the policing education qualifications framework, while the Home Office insists that apprenticeship funding is a devolved matter. There was a one-off funding package in 2018-19 to resolve that position, but it remains uncertain who will fund what sort of training in Welsh police forces, whether those forces are out of pocket, and what is expected of them from the reserved aspect in Westminster and is not being passed through from the Welsh Government. On such matters, the reserved-devolved interface really requires further discussion. There were warnings at the time that that would happen.

[Richard Graham]

I thank the hon. Member for her point. I think that the Welsh Assembly’s Economy, Infrastructure and Skills Committee published a report last week highlighting the fact that the levy was introduced without the Assembly being consulted. I have no doubt that the Minister will respond on that issue.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

My hon. Friend is making a well-informed and excellent speech. He spoke about the potential benefit to SMEs from the changes to the apprenticeship levy. However, I am sure that he recognises that there is sometimes quite a challenging relationship between the different parts of the supply chain in agriculture. The introduction of agricultural apprenticeships has not always been very successful. What would be a good way to address that problem, and what advice would my hon. Friend give the Minister and the Government?

[Richard Graham]

I intended to raise that issue in relation to the timber industry, but perhaps I will do it now. The timber industry has certain similarities with the agricultural sectors to which my hon. Friend alluded, because it too has found enormous difficulty in creating standards and courses that are applicable to a sector that employs some 75,000 people. The Timber Research and Development Association, TRADA, which is the national body, still does not have accredited apprenticeships. It has been unable to get a course accredited—it believes accreditation takes 12 to 18 months—and is deeply frustrated.

There have been similar comments from other sectors. My hon. Friend mentioned agriculture. The Minister will know that there are significant pockets of huge dissatisfaction. TRADA states that the

“Institute of Apprenticeships are trialling the concept of a face to face interview panel…But we are not being offered this interview as things stand.”

It also states that the institute has been interested in creating a course for a “timber product technician”, but that term is apparently not actually used in the timber industry.

There are detailed frustrations about how to get the right standards and courses accredited. I hope the Minister will be able to offer us reassurance that for any sector, or indeed any significant levy payer, somebody from the Institute for Apprenticeships will be available to have a face-to-face meeting to try to resolve these issues, giving us all the confidence that it will not take 12 to 18 months to set up a course, during which time employers are contributing to the apprenticeship levy, but it is not being used for their own employees.

That, of course gives rise to one of the big issues with the way in which the apprenticeship levy was structured—namely, that it is seen by many people as a tax. The principal of South Gloucestershire and Stroud College said that many major companies now contributing to the levy see it as such. They are unable to spend their levy, and

“rather than transferring this money to the restricted non-levy pot, which benefits smaller employers…the money is being held back by Treasury”

and not reinvested into training and skills for the younger generation.

As I said earlier, I do think that, to some extent, the emphasis is on levy employers to understand what the offer is and how they can use the pot more creatively. There will be individual cases where companies are not investing enough in training and skills, and should be proactively doing more to engage with the Institute for Apprenticeships to design courses, and so on. None the less, the perception that the levy is a tax is large enough that it would be helpful for the Minister to clarify whether it was always intended that there would be an element of tax contribution to the levy, and whether the £2.5 billion that I believe is being invested this year in apprenticeships by taxpayers, via the Government, is a gross or a net figure? That is to say, to what extent is the apprenticeship levy used to reduce the total cost, or is it a net figure, regardless of what comes into the apprenticeship levy?

That is important because for as long as employers view the levy as a tax and not as something that can benefit them and their supply chain it is less likely that we will have their complete buy-in. I cannot help wondering whether part of the solution might be to increase again the figure of 25% that can be passed on or traded, like carbon emissions, to SMEs. I cannot help but feel that that would increase the number of apprenticeships, which is clearly where the problem has been in delivery, and reassure businesses that the Government really do want the levy to work, maximising opportunities for both big and small employers.

I do not feel that today’s debate should be about trying to beat up the Government, either for their failure to deliver 3 million apprenticeships or for some of the complexities of the apprenticeship levy. The scheme remains relatively young, and the direction of travel should be to reform rather than scrap it. I think that that is also the view of the Chartered Management Institute and other employers’ groups. None the less, we have to recognise some of the challenges.

On the positives, the increase in higher apprenticeships has undoubtedly paid off, particularly in sectors such as those in the constituency of my hon. Friend the Member for Filton and Bradley Stoke (Jack Lopresti), where aerospace is a huge driver of employment, growth and exports for the nation at large. We have doubled the number of higher apprenticeships over the past three years, from 36,000 to 75,000. There are literally thousands of employees through some of the larger companies, such as Channel 4, Royal Mail and Lloyds Banking Group, as well as the NHS and our armed forces in the public sector. They are very comfortable, by and large, with what has been introduced, and just raise very specific implementation issues, which I will touch on.

The challenges are the fall in the number of apprentices and the complexity of some of the bureaucracy around the levy. According to the University of Gloucestershire, there have been further Institute for Apprenticeships and Technical Education delays to approvals of standards through each stage. The university gave the example of the senior leader master’s degree apprenticeships, noting that

“the standard did not achieve full approval (i.e. was not ready to be delivered)”

until several months after the launch. The university also stated:

“There is a significant administrative burden as the funding claims process is not straight forward, and subject to frequent policy and regulation changes.”

During the debate on the health Bill in the House the other day, I raised the issue of the complexity created by nursing apprentices, who must be supernumerary because the Nursing and Midwifery Council has ruled so. That makes nursing degree apprentices unaffordable for many local NHS trusts, so that issue has to be resolved.

I have been told by an intermediary business that works with large employers all over the country that

“the bulk have millions of unspent levy funds”

and that this particular company has

“attempted to introduce leadership training for which the levy would be used”,

but that there are

“so many hoops to jump through in order to get something up and running”

that it has given up. I was also emailed by the owner of a small business that employs one apprentice, who said that employing an apprentice is

“far greater a challenge than anticipated. Support in numbers, time or financial resource is limited.”

Of course—this has been said previously—one reason for employing my own apprentice was to find out precisely how complicated the process is. I do not think it needs to be that complicated, but clearly, the message from some SMEs is that it is that complicated. I hope that a change of direction to make the process simpler has taken place, and that the Federation of Small Businesses is completely behind it.

I am conscious that time is moving on, so I will just touch on a handful of key points I hope the Minister will be able to respond to. First, a number of colleagues have mentioned complexity, so any news about how the levy can be made less complex would be welcome. Some Members have also touched on the issue of inflexibility; there is a constant question mark about whether the apprenticeship levy has to be spent on only those courses that are accredited by IFATE. I understand the reasons why that might be the case, but it puts the onus of responsibility on IFATE to approve these courses—agriculture, timber, or whatever—much faster, so that people can get on them. I welcome the reduction in the amount that non-levy payers contribute to the cost of apprenticeships; it has been halved from 10% to 5%. I wonder whether that contribution is financially important, or whether it is symbolically important.

By implication, Members also mentioned the current restriction whereby at least 20% of apprentices’ time has to be spent training off-site. That is a real issue for many employers, particularly smaller ones, so I ask whether that can be either waived or improved. As has been touched on, there is a question mark about the amount of knowledge in the supply chain regarding the transferability of the apprenticeship levy, so anything the Minister could say about being able to increase that would be welcome.

Ultimately, this programme was introduced as part of the Government’s commitment to improving an apprenticeship programme in order to deliver the skilled workforce that employers need. We know that employers need more skills and more apprentices, so we need those numbers to rise, as well as the percentage of higher apprentices. A more transparent breakdown of the levy, and whether it is a net or gross contribution to apprenticeships by the Government, would be welcome. I hope that by the end of all this, IFATE and the Government will be listening more to business, so that there will be more voices out there strongly supporting the apprenticeship levy and encouraging other employers to make as much use of their levy as possible. I also hope that a new apprenticeships Minister can be appointed who will listen, oversee, champion and communicate what should be a really good, positive story for Government, business and the country as a whole.

[Several hon. Members rose—]

--- Later in debate ---

[Richard Graham]

This has been a valuable debate about the best way to structure the provision of apprenticeships and their financing. There was widespread agreement about their value as the ladder of opportunity and social mobility, and there were different ideas about how best to use and reform the apprenticeship levy.

However, given that a quarter of apprenticeship starts have been lost over the past three years, and that the FSB says that urgent action is needed—my hon. Friend the Member for Stoke-on-Trent Central (Jo Gideon) highlighted the challenges for SMEs—I hope the DFE will reflect on the need for further reform. Although I recognise the Minister’s commitment to apprenticeships and to making the levy work better, further announcements of reform are needed soon, as promised by the Prime Minister. Leaving things as they are will not be enough to provide the skills needed by global Britain or for an ambitious programme of levelling up.

Question put and agreed to.

Resolved,

That this House has considered the effectiveness of the apprenticeship levy.

Gambling-Related Harm

Richard Graham Excerpts

Tuesday 19th March 2019 Westminster Hall

[Mr Duncan Smith]

I am grateful for that intervention. I fully understand that gambling is enjoyed by numbers of people who enjoy it every now and again and do not get caught up in that spiral. They might go to the races or bet on the odd football match or something like that. I am a genuine believer in free choice—people make those decisions themselves—but we have to look at whether the way the industry goes about its purposes perverts that process so that individuals end up caught in that spiral. That was a helpful intervention, because I want to talk about the industry and what it is up to.

We had some fascinating work done to look at some of the behaviour, and I was astonished by what is going on. First and foremost, anyone watching the plethora of adverts that flood every sporting event on television will see that they are all aimed at one particular type of person: young men. The adverts say, “You have to be smart, savvy, intelligent and clever. You are that kind of person because you beat the odds every time. You know what is going on. We give you special opportunities to do it, but you are so smart, you have to do it.” If someone is not gambling, the corollary is that they are not very smart and therefore incapable of doing it. The whole pattern of advertising is to drive people to gambling.

We then discovered that the way this works behind the scenes is quite scandalous. For example, bet365 has recently revealed that players who rack up huge losses are rewarded with weekly cash returns of up to 10% so that they can carry on playing. In training sessions for new staff, a bet365 worker gave an example to a reporter. They said:

“If they’ve lost, say, £15,000 in that week, then we’ll give them a weekly rebate, normally on a Tuesday, and we’ll give them maybe 10% of that back.”

That is quite sinister. We can see exactly what they are after: those who habitually gamble and lose. They are not really interested in those who win. In fact, they do not like it very much—I can understand the reason—if people actually win, so they do everything they can to discourage people who ever manage to win.

There are all sorts of delayed payments and other mechanisms. Sometimes people will not even be allowed to gamble again with a particular organisation. We are taking evidence on that in the all-party parliamentary group. It is clear that the gambling companies quickly pull away those who habitually gamble. They gamble almost by impulse, and thus they become incredibly profitable for the companies. They are induced to gamble even more, because they have this habit. The idea of targeting someone who has the habit is key.

The work done by the Centre for Social Justice, which I set up, shows that such targeting not only destroys the lives of those locked into the downward spiral of misery, but drags whole families into despair. We have already heard examples of people who have committed suicide and people who have lost all their family connections. Some have lost loads of money belonging to their families and are unable to carry on a normal life.

The hon. Member for Swansea East made much of the PwC report for the Gambling Commission, which found that 59% of the profits for a remote gaming company come from those with a gambling addiction or problematic behaviour. The model is based not on any long-term relationship with loyal customers, as would be common for most business models, but on sifting out those who gamble from those who fundamentally lose. When we watch the advertising process, we can begin to realise that the companies are going to that very selective targeting. My general view is that they are completely out of control. What has been going on for some time is a front. They are trying to pretend somehow that they are reasonable and are behaving well, but they are behaving appallingly. They have set out fundamentally in the pursuit of money, and they do not care if they destroy lives.

[Richard Graham (Gloucester) (Con)]

My right hon. Friend is making a characteristically powerful speech on a subject dear to his heart. Here we are: another week, another debate on online gambling, which only goes to show how important the issue is to us all. Does he agree that a powerful start to righting some of the problems that the gambling companies have created would be a mandatory 1% levy on gross profits to fund decent research and help set up more gambling clinics?

[Mr Duncan Smith]

I agree with my right hon. Friend—[Interruption.] No? He is right hon. in my book. I agree with him, because what has happened so far is too much about the voluntary. I am not one for constantly regulating—far from it—but we see the level of harm and the lack of knowledge about how deep the harms go, and it is time for the Government to do something.

I want to pick up on loot boxes, which the hon. Member for Inverclyde talked about in his very good speech. Almost the most sinister thing going on at the moment is the inducement of young people—kids, really—to get into the habit early. They are locked into their rooms—often their bedrooms—often until quite late at night. Sometimes parents do not realise what is going on, but they get into this process where they are often gambling money, but not money as we might term it; it is an alternative form. Sometimes they are gambling for clothing, which eventually becomes a monetary derivative.

Interestingly, I saw a report by Macey and Hamari for the University of Tampere on participation in skins and loot boxes. Worryingly, the report concludes that almost 75% of those participating in gambling related to e-sports were aged 25 or under. What is going on is clear: it is highly addictive and very fast. People build up a box of prizes. They get used to a process of inducement when they go on to bigger gambling. They hear about a 10% gift or going to a fancy party somewhere and it becomes a part of their lives, because they understand it from the gambling process that they were engaged in in the gaming.

My apologies, Mr McCabe, if I have gone slightly over my time. I will conclude by saying to the Minister, for whom I have huge respect—no one is more pleased than I am that she is on the Front Bench—that the Government need to right a wrong. The wrong was that we opened the whole of the regulatory process to gambling. It does not matter which Government did it; it was done. Now we need to bring the beast back under control. I simply say to her that there are recommendations—I will not read them all out—from the all-party group, and I hope that she will give them full consideration. It is time now to demand more of an organisation of companies that derive profits and in too many cases cause harm. There are good people who gamble occasionally, but others are locked into a spiral of harm. We look to the Government to change their circumstances.

Spring Statement

Richard Graham Excerpts

Wednesday 13th March 2019 Commons Chamber

[Mr Hammond]

I believe—[Interruption.] I am aware of what the right hon. Gentleman is saying. My understanding is that the funding figure is for England. [Interruption.] Sorry; my hon. Friend the Member for Bexhill and Battle (Huw Merriman) is telling me it is for England and Wales. I apologise to the right hon. Gentleman if the statement misled him, but I am told that the funding is for England and Wales.

[Richard Graham (Gloucester) (Con)]

I welcome the continued improvement in the public finances, which is due in no small part to the continued resilience and innovation of our businesses, some of which the Chancellor met when he recently opened the University of Gloucestershire’s new business school. What a symbol of change that is, because only nine years ago we lost 6,000 business jobs in Gloucester, thanks to the disastrous policies of the Labour party, and youth unemployment was four times higher than it is today. My right hon. Friend knows the extraordinary enthusiasm on both sides of the House for continued funding for schools and, from my letter with 165 colleagues from four different parties, for improved funding for further education colleges. Will he therefore look at those priorities very closely in the spending review?

[Mr Hammond]

I very much enjoyed my visit to the University of Gloucestershire and was interested to see the innovative work going on there. The improvement in the public finances, to which my hon. Friend referred, is being driven by increased business tax receipts, partly as a result of the Government’s relentless clampdown on opportunities for tax avoidance and evasion and partly as a result of the very significant increase in employment. Some 3.5 million more people in work is very good news not just for 3.5 million households, but for the Exchequer, the public finances and, ultimately, our public services.

Online Gambling Protection

Richard Graham Excerpts

Tuesday 12th March 2019 Westminster Hall

[Richard Graham (Gloucester) (Con)]

I beg to move,

That this House has considered online gambling protection.

I am very conscious that today there are distractions elsewhere in the House. This debate on online gambling was never going to pull hundreds of Members away from the business of how, when and indeed if we are to leave the European Union. However, that was never the point of it. Today is a chance to update the record on where we are on online gambling, to recognise the damage being done in some very sad cases, where lives have been ruined, and to offer thoughts and float ideas on what is ahead, as well as behind us, and on the trends and direction of what is happening.

Given that the statistics show that 430,000 adults have a serious gambling issue, with 2 million more in danger of addiction and 55,000 children between the age of 11 and 14 already addicted, and with all those figures rising fast, it must be clear to us all that, yes, Houston, we absolutely have a problem. At a time when many in the country believe that Parliament and the Government are all-consumed by Brexit, it is even more important to show that that is not so. We can, and must, address an issue that will become one of the great challenges of our generation: how do we deal with online gambling?

There was a time when I thought that online gambling was a modest offshoot of the traditional bookies on the side of Cheltenham race course and Gloucestershire point-to-points. I thought they were flutters by computer for the technically savvy, but it is not so. In fact, online gambling has a higher percentage of problem and at-risk gamblers than any other type. When people log on to online gambling, they meet a plethora of sporting opportunities on which to gamble. How many throw-ins will there be in the first 15 minutes of an under-15 Azerbaijani football game? Nothing is too obscure to have odds attached to it. Not a single sport—I did not check Mongolian archery, but I am sure that someone, somewhere can offer odds—is without a gambling moment. With some 3,000 websites competing, there are plenty of options.

The size of the sector and its business is enormous, with annual industry gross profits of some £14 billion and tax receipts of £3 billion, 100,000 employees and some £200 million of advertising revenues. Is it, therefore, a huge UK success story? Yes, but even more no, because the dark side is horrific and growing. When some of those brave enough to talk about what has happened in their family do so, we really have to wonder whether we are doing enough to prevent addiction and disaster. I will give just one example: Martin Jones in Swindon, who talked to me this morning, explaining the story of his son, Josh, who eventually committed suicide in 2015 after years of fighting addiction. It is a truly tragic story, and there can be no doubt that the system is failing individuals and therefore us all.

[John Howell (Henley) (Con)]

My hon. Friend makes a strong point. Is it not the case that online gambling has a predominant effect on the young, and it is the young that we need to protect in this situation?

--- Later in debate ---

[Richard Graham]

I do not think it is exclusively an issue for the young, as the figures show, but what is true is that the figures for young gamblers are rising faster than for any others. If we are to address the problem, my hon. Friend is right that we need to tackle the youth issue.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

Does my hon. Friend agree that there is a very fine line between online gambling and online gaming? Some games require a degree of gambling. I draw his attention to the Digital, Culture, Media and Sport Committee’s present investigation into the problems of addiction caused by online gaming, and the negative, in some cases devastating, effect that it can have on families.

[Richard Graham]

My hon. Friend is right. I welcome the report that the Committee is working on; it may show higher correlations between addiction to gaming and gambling than we previously knew, which would be extremely valuable.

What we are hearing is that Josh’s case is not a one-off; hundreds commit suicide every year as a result of gambling. We do not know exactly how many—it is somewhere between 250 and 650 a year. That is a margin of error about life and death that would be completely unacceptable in any other sector. The implication that we just do not know whether 400 people committed suicide as a result of a gambling addiction or for other reasons is truly shocking. Were it, say, the construction sector or the armed forces, there would be a public inquiry about dereliction of duty.

The first thing that we have to do is radically to improve our knowledge of the facts, and to improve the research and data that is collected. The Gambling Commission, the regulator, is working on a series of partnerships with the police, the NHS, GPs and so on to improve the situation. I am sure that the Minister, who I know is very concerned about this matter, will show support for all that work. However, serious money is needed to do it effectively, and the current £8 million a year or so given by the industry as a percentage of turnover is, given their £14 billion of profit, frankly peanuts. No wonder we know so little.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I congratulate my hon. Friend on securing the debate. Two or three really important facts are only just becoming known. One is that the big gambling companies give inducements to those who have the highest level of losses because those people make them their profits. I understand that they also do their level best eventually to get rid of those who are not in debt, and do not lose so much. They do not want them on their sites; they want those who lose, whom they can condition to it.

On the all-party parliamentary group, we have also discovered that gagging orders are being put in place to stop employees talking about what is going on. Companies are not supposed to give inducements to people who are already addicted, but it happens. Does my hon. Friend accept that that is a real problem?

[Richard Graham]

My right hon. Friend, who has done a lot of work on this subject, not least through the Centre for Social Justice, is right to highlight some shocking practices that have undoubtedly happened. In my own constituency, a friend of mine who is a taxi driver ran up £650,000 of debt with one gambling firm. I hope that all taxi drivers in Gloucester are well remunerated, but frankly none of them can afford such vast amounts of money. Part of it came from inducements—indeed, there was a lot of wining and dining of such a profitable customer. That is one of the intrinsic slight conflicts of interest within the sector. I am grateful to my right hon. Friend for mentioning that.

My first call today is for a serious contribution by the industry to fund vastly improved and independent research. Campaigners have been calling for it, the gambling review supported it and the industry expects it; William Hill has even called for it. I therefore ask the Minister when we can expect to see legislation in the shape of a statutory instrument to implement a levy of 1% of company gross profits as soon as possible.

It is not just research that will help us to prevent the rapid growth of what is fast becoming a social epidemic. As my hon. Friends have said, action is needed to protect the young. That means action on the astonishing amount of online gambling advertising on sports programmes. It is rampant. Fathers watching football or rugby at home and having a flutter with an accumulator on Raheem Sterling scoring a hat trick for Man City are unwittingly starting their children off with the idea that gambling is normal. We need to keep gambling adverts off TV sports programmes.

[Ronnie Cowan (Inverclyde) (SNP)]

The difference between gambling and gaming has already been mentioned. Gambling companies seem to be using loot boxes as a pernicious practice to target children who are gaming and get them into the habit of gambling. It normalises the process, effectively grooming children as their next market. We could legislate to close that practice down, as Belgium, the Isle of Man and other places have done.

[Richard Graham]

The hon. Gentleman makes good points. I believe that he is working closely on the issue with my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) in the all-party group. As he points out, such practices are rampant all over the country.

Three big companies—bet365, William Hill and Ladbrokes—have already agreed in principle to a whistle-to-whistle ban during live sports before the watershed, and after it for games that start before 9 pm. That is encouraging, but I believe that we must go further. My second proposal is therefore to ban all gambling advertising during live sport as soon as possible. Perhaps the Minister will confirm the point, but I do not believe that such a ban would need legislation, so I make it an ask of the regulator. I hope that the Gambling Commission’s report, which is due at the end of the month, will include a clear recommendation for such a ban. It could then be implemented by the Advertising Standards Authority, perhaps with some encouragement from the Department.

I would like to go further still. I remember watching many John Player Sunday league games and Benson and Hedges knockout matches when I was a boy cricketer. It never occurred to me at the time that there was something odd about tobacco companies sponsoring sports games while encouraging spectators to smoke, but we later learned the high risk of smokers severely damaging their lives through lung cancer and creating a huge burden for the NHS. Gradually, we all came to understand that tobacco sponsorship of sports was odd and—more importantly—unacceptable, and it was banned in 2002.

The analogy is never identical, but it is relevant. Gambling is no more suitable a partner to sport than smoking, so my question to the House is how long the same journey will take us with gambling. How long will it be before we ban gambling advertising in sports altogether? If the research on the levy shows what I hope it will show, we have a real opportunity to do something about the problem. Thousands of lives are at risk, and we should move fast. I would like to see real consideration given, depending on the evidence, to banning gambling companies from sponsoring sports altogether.

That brings me to other measures to protect vulnerable gamblers—those who are most prone to addiction and least likely to be able to afford it. Like users of fixed-odds betting terminals, many online gamblers simply cannot afford their losses, as colleagues have said. Can we not build on Monzo and Barclaycard’s encouraging start of allowing gamblers to put blocks on their debit cards against payments to gambling companies? The regulator is working well on the issue with financial industry bodies and financial services, and the Money and Mental Health Policy Institute is also playing a part. I encourage those organisations and the Minister to take the policy forward and get all banks to offer it as soon as possible.

Gamblers know that self-exclusion can be got round easily enough—in many cases, a slightly different name will suffice, as one constituent showed me—and once a company has someone’s mobile number or email address, it pumps special offers at them day and night. My next ask is therefore that the Government endorse the Gambling Commission’s initiative to persuade banks and other credit card issuers to disallow gamblers from using their credit cards altogether. It has been put to me that banks would never directly loan money to a gambler, so why do they do so indirectly?

Using blocking technologies such as Gamban can also help. It could be made mandatory for all gambling companies to have such systems, approved by the commission and paid for by the companies themselves. Ultimately, however, I sense that it will be artificial intelligence that provides the real breakthrough in technology—through facial recognition, for example—that enables the sector and companies to block most efficiently and the regulator to do its protection work even more effectively.

That work needs to be part of a strategy that includes the NHS implementing as soon as possible the five pages on gambling in its 10-year review—an important start—and creating more gambling clinics. London and soon Leeds is a start, but it will not be enough on its own.

I hope that all hon. Members agree that there is much to do. I believe that the Gambling Commission’s report will be important; I encourage the Minister to give an oral statement as soon as the report is released, to highlight its recommendations and give the House a chance to debate the issues in more detail. In the meantime, I know that the Government are concerned about the issue and the Minister is committed to it, so I urge them to start the ball rolling as soon as possible with a statutory instrument to introduce a new 1% levy to fund research to give us the facts that we need to make the difficult decisions. I also urge them to move fast on the review’s recommendations, which I hope will include much of what I have suggested today.

Ultimately, online gambling protection is about saving lives. If we can do things that achieve that, our time in this House will have been well spent.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Mims Davies)]

It is a pleasure to serve under your chairmanship, Sir Gary. I congratulate my hon. Friend the Member for Gloucester (Richard Graham) on securing this important debate.

We have to look at this in the round. My hon. Friend is absolutely right to raise his concerns, on behalf of his constituents and more broadly. We have to balance that with the fact that millions of people enjoy gambling responsibly. A day at the races—Cheltenham is on at the moment, as we know—an evening at the bingo or a regular bet on the football each week can be enjoyable, but we must balance that against the need to protect the most vulnerable people from gambling-related harm, wherever they gamble.

Hon. Members will be aware that online gambling is an area that I care deeply about and that I have already discussed with my hon. Friend. We have also met the all-party parliamentary group for gambling-related harm, alongside the Secretary of State; my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) brings to the debate his expertise on the group’s work and ongoing concerns.

It is absolutely right that we focus on ensuring that the regulatory framework for online gambling is robust. I am aware of concerns about the need to keep pace with technological advances, so I was particularly interested in the facial recognition idea that my hon. Friend the Member for Gloucester mentioned. I assure hon. Members that the Department will act where there is evidence of harm and will always keep the issues under review.

The Gambling Act 2005 provides the Gambling Commission with strong powers to ensure that all forms of gambling, including online gambling, are crime-free, fair and open and that they focus on protecting children and vulnerable people. Any operator that sells to customers in Great Britain must be licensed by the Gambling Commission and must comply with strict regulatory requirements. The commission has shown, rightly, that it will act where those rules are broken. For example, action against online casino operators resulted in penalty packages of almost £14 million last year.

The data held by online operators allows them to identify vulnerable customers and those at risk of harm. I note with caution the concerns raised by my right hon. Friend the Member for Chingford and Woodford Green about companies looking for losers and focusing on gambling losses. I will absolutely take those concerns away and look at them.

My right hon. Friend also mentioned gagging orders. The Gambling Commission’s rules state that businesses should work with it to ensure that they are operating appropriately and should

“disclose anything which the Commission would reasonably expect to know.”

We want to help the regulator to take robust action to guard against any breaches of the rules, so if the all-party group’s work suggests that something is not being disclosed, or if hon. Members have anything to raise, I am keen to hear more. We want to see only responsible businesses in this sector. We want to ensure that people can have an open conversation about what responsible gambling looks like.

I was struck by Josh’s story, which was told by my hon. Friend the Member for Gloucester. There is real concern about suicides related to gambling. As my hon. Friend points out, the number of suicides cannot be ignored. The Responsible Gambling Strategy Board has published a report on measuring gambling-related harms to focus on the need to commission more research on the risk of suicide, so that we can identify harmful behaviours and so that people who enjoy a flutter or a bet can start to recognise such behaviours in those around them.

We need to remove the stigma around addiction to gambling. If someone feels like it is controlling them, the potential risk, the awareness of people around them and the opportunity to get support are really important. We need to take the stigma away and be able to work with partners. I must thank the Gambling with Lives charity, which has helped to identify the role of education in preventing harm. The Government’s review on gaming machines and social responsibility measures, which was published last May, set out a comprehensive package of measures to focus on safer and fairer gambling, and to ensure that this is paramount and at the heart of advertising and online operations.

We have heard about technological solutions. In December, Ministers at the Department for Digital, Culture, Media and Sport and I brought together the technology and gambling industries to explore the use of further technology in preventing harm and stress the importance of learning together. More recently, the Secretary of State and I met major banks that are working on interventions this summer and into the autumn, in order to discuss how they can react in a way that challenger banks have been able to, by allowing customers to block gambling facilities. I want to emphasise that technological solutions to help to protect vulnerable people from gambling-related harm are absolutely vital, and we should seek every opportunity that we can.

An example of a technological solution is the online multi-operator self-exclusion scheme, GamStop, which ensures that people who take the difficult step to self-exclude are fully supported. For the first time, people who self-exclude online can sign up once to be excluded from all operators in the scheme. It currently extends to over 90% of the market, and over 60,000 people have used the service so far.

Last week I met gamban, which is based in Southampton—I will be popping down to its offices. Its new blocking software is freely available via GamCare and prevents devices from being able to access gambling websites. This is where innovation and direct experience is helping to drive player protections, which is vital. To support such initiatives, the Gambling Commission is consulting on stronger customer interaction requirements. I met GamCare yesterday and was delighted to hear about its initiatives with operators, including providing training to industry staff on player protection and the “safer gambling standard” quality mark. Let us get this moving—it is new and something that GamCare is moving towards.

For over 20 years, GamCare has been on the frontline of service provision, and it has reflected on the change over that time. It has a helpline, which is open between 8 am and midnight, seven days a week. It is a freephone number—if anyone is watching or reads this in Hansard, the number is 0808 8020 133. When I met GamCare yesterday, I was struck by its results on getting people out of crisis and to a place where gambling is not controlling them and they are able to sort matters out. Once people have contacted the charity—it does not appear on itemised bills—the first step is to talk things through and get some help.

GamCare is running programmes for schools that are aimed at 11 to 18-year-olds, and is looking to develop new packages for 18 to 24-year-olds. I urge all operators to work with GamCare on this, so that we can educate people on the risks, what is healthy, and when and how to find help when it is needed. I intend to use the opportunities across Departments to ensure that we give advice to parents, so that protecting children is co-ordinated—that work is going on with GambleAware, which brings me to advertising and the charity’s work.

A responsible message must now appear on all TV advertising for gambling companies for the duration of adverts. The Gambling Commission has introduced tougher sanctions for operators that break advertising rules. In addition, I am delighted to have worked with GambleAware to launch the industry-funded, multimillion-pound “Bet Regret” advertising campaign, which aims to help to start a conversation around risky betting behaviours and how to reduce them. In response to public concerns, the industry has announced the “whistle-to-whistle” ban on all TV betting adverts during pre-watershed live sport.

I agree with my hon. Friend the Member for Gloucester on the relationship between sport and gambling—both particular sports and as a whole. I have already challenged gambling companies on this. Everything is on the table with regards to responsible businesses coming forward and doing the right thing; otherwise, it is absolutely right that we should act. There are positive signs that the industry is stepping up to the challenge that we have set, but there is scope to go further. I want to see the industry meet GambleAware’s donation target of £10 million by April this year. As I have said before, we want the voluntary system to work. If it does not, I do not rule out other ways of funding support, which could include a mandatory levy.

I am working closely with colleagues in the Department of Health and Social Care on the recently announced problem gambling clinic in Leeds. As we heard, the NHS long-term plan has a commitment to extend access to treatment. Public Health England has developed guidance for local authorities on gambling and is undertaking an evidence review. I have even spoken locally to my GP clusters about how, through social prescribing and local conversations, we can direct people to help. I have met the Minister for suicide prevention, who is clear that she will be working on gambling as a priority. Let me be clear on my position on the policy in this area: any life lost due to gambling is a tragedy, and we will work in every way that we need to in order to keep vulnerable people protected.

From May, the Gambling Commission will bring in further changes to operators in order to include age and identity verification to allow consumers to ensure that they do not partake if they get free-to-play demo games. These changes will also include further protections for children and vulnerable consumers and will help GamStop to be more effective. The Gambling Commission recently launched a call for evidence on gambling online with credit. The Secretary of State and I are very keen to look at this, and we have already raised it with banks. It will help to develop a comprehensive picture, including the prevalence of using credit cards for gambling, and the associated risks.

We are aware of immersive gaming, an issue that was raised with regards to “skins gambling” and loot boxes. The Gambling Commission has made it clear that unlicensed gambling with in-game items known as skins is illegal, and it will take tough action. It prosecuted operators in 2017, making it the first regulator in the world to take such action. Loot boxes currently do not fall under gambling law where in-game items are acquired and confined to use within the game and cannot be cashed out, but we will continue to look at that. I am aware that the Digital, Culture, Media and Sport Committee is also looking at this area.

I thank hon. and right hon. Members for taking part in this debate and ensuring that the Government hears very loudly that gambling online should be fair and safe. It is something that we all take seriously. We have delivered some important changes to online gambling regulation and will continue to review the protections and take action where it is needed. My hon. Friends have spoken passionately on this issue, and it is clear that that is our aim. The Government intend to work with the industry to bring it to the table, and to work with colleagues to ensure that vulnerable players are protected.

[Richard Graham]

rose—

[Sir Gary Streeter (in the Chair)]

You do not get a comeback on a 30-minute debate, I am afraid.

Question put and agreed to.

Communities: Charities and Volunteers

Richard Graham Excerpts

Wednesday 13th February 2019 Commons Chamber

[Richard Graham (Gloucester) (Con)]

Everybody here has interests to declare, so I shall rattle quickly through mine. I may mention some of these organisations: I am a recently retired trustee of the Gloucestershire Community Foundation; the current chair of the Gloucester History Trust; a joint patron of the charity HaVinG a Voice in Gloucester, which helps the homeless on to pathways; and a joint patron of the Discover DeCrypt project at St Mary de Crypt church and school. Every year, I volunteer with Gloucestershire Royal Hospital.

Today is a very good time for this debate and I congratulate the Minister on her introduction to it. She is quite right to focus on what is such a big part of such a big society. She is quite right to say that volunteers and charities are at the heart of every community in all our constituencies, and she is inspired to highlight some of the new awards that have been given to projects about deprivation and community. I would have loved to have seen at least one of those come the way of Gloucester, but there may be opportunities for that shortly. The more she is able to do on this front, with the help of the Chancellor, the more difference it will make to local pride, local people and local potential. Let me share some thoughts from almost 12 years of focus on community and its role in the regeneration of Gloucester.

The first point is that pride matters hugely. England and Britain’s characteristics include an attractive self-deprecation and a not always so attractive approach to not appreciating ourselves, our cities, our towns and villages enough. How do we measure pride and what does it mean? There is no index, but there are various indicators we can use. I often use Centre for Cities’ research as a snapshot of how our city is doing relative to others. The employment rate immediately tells me that Gloucester is working. We have the fourth-best employment rate of any city in the nation. Then there are the less tangible things, such as the amount of volunteering.

Can any of us truly say that we know how many people are volunteering and how many hours they give to our city or our county? It is very hard to tell, but when we look at the different ingredients it is there for us to see. For example, Gloucestershire Royal Hospital has over 400 volunteers, not including the 30-plus in the chaplain’s office. The Gloucester Civic Trust has hundreds of volunteers who play a crucial role on Gloucester Day and on heritage open days, which are one of those wonderful things that have grown and grown.

We then have the community groups themselves. The Redwell Centre in Matson is a fantastic success, with programmes, projects and activities for everybody from the very young to the very old, including the cross-faith and denomination Together in Matson. There are community groups, such as Chit Chat within St James’s church in Quedgeley, which involve the community. There are the festivals, which all our communities have. I would like to talk about the Gloucester History Festival, which I started eight years ago and which now has 24,000 visitors.

We have groups who help the homeless and rough sleepers. The George Whitefield Centre incorporates Gloucestershire care services, the Gloucester City Mission and the food bank, which has lots of volunteers. It is not just Christian charities either. Islamic groups in Gloucester are raising funds for good causes. There are immigrants who are giving back to the society that has looked after them since they left their own country. I want to single out Babu Odedra and Ash Chavda. They own the Olympus Theatre, where there is a great project to regenerate culture and drama in the heart of Barton in Gloucester. There are the Rotary Clubs. We now get all the Rotary Clubs in Gloucester together and we have our community awards every year, with some £10,000 going to about 20 different groups. These little things matter and it is a way for charities to highlight what they are doing to a group of people who are very charitably minded. The Barnwood Trust nearby, a mental health-focused charity, now interprets mental health in a much wider way. There are lots of things that help. The Gloucester Pride festival every year attracts many times the numbers it had when it started, as does the Lantern festival, which ends up at the cathedral.

What works? What transforms communities and cities? I think often, as my hon. Friend the Member for Banbury (Victoria Prentis) mentioned, out of sadness can come determination to change. Charities are formed from disasters in families, such as: the Hollie Gazzard Trust which is about to celebrate its fifth anniversary; Charlie’s Cancer Support group; and the Nelson Trust, which does great things for women in trouble. All of these things boost pride. Success breeds confidence and success. Buildings help. As Churchill said, we shape buildings and then they shape us. Above all, it is about the potential in our societies and things that are good for mental health. The role of volunteering and charities is absolutely critical.

European Union (Withdrawal) Act

Richard Graham Excerpts

Thursday 6th December 2018 Commons Chamber

[John McDonnell]

Let me press on.

A variety of commentators have criticised the Prime Minister’s proposals, none more scathing than Mervyn King, the former Governor of the Bank of England. Leaving aside his description of the Government’s handling of this issue as

“incompetence of a high order”,

overall he says:

“It simply beggars belief that a government could be hell-bent on a deal that hands over £39 billion, while giving the EU both the right to impose laws on the U.K. indefinitely and a veto on ending this state of fiefdom.”

Many will share the view expressed by Nicole Sykes, the CBI’s head of EU negotiations, which were revealed in an email where she said that there is

“no need to give credit to negotiators I think, because it’s not a good deal.”

Let me move on to my third point, which is Labour’s alternative. I believe that the majority of hon. Members in this House agree that the Prime Minister’s deal is not a good deal. So over the next few days, and possibly—as was hinted at this morning—for even longer, Members will be searching for a way forward. I believe that Labour’s proposals for a new approach to our European relationship offer that way forward. Our European partners will have seen that the Prime Minister’s deal that they reluctantly endorsed has not proved to secure the support it requires in this House or in the country. I believe that they will see the need, now, for a constructive renegotiation if both their and our own economic interests are to be protected in the long term. Indeed, that is what has happened in the past.

Labour’s new deal will secure the economic interests both of ourselves and our European partners. It rests on three posts. Labour would prioritise a permanent and comprehensive customs union—yes, with a British say in future trade deals. We would deliver a strong, collaborative relationship with the single market—and yes, we would guarantee that the UK does not fall behind in rights for workers, consumers and the environment. Labour has always been clear: we respect the referendum result, but we have always said that we want a Brexit that puts jobs and the economy first—and that is exactly what Labour’s approach will do.

[Richard Graham (Gloucester) (Con)]

The right hon. Gentleman said that Labour is looking for a comprehensive customs union agreement in which Britain will have a say in future trade agreements, but if we were in a customs union with the European Union, we would not have a say on future trade agreements. Can he clarify that?

[John McDonnell]

We will have a say in the future of those trade deals in our relationship with the European Union, and it will reflect the size of our economy and its contribution to the European Union overall.

--- Later in debate ---

[Stewart Hosie]

My hon. Friend is absolutely right. I am not going to do it today, but certainly in previous debates we have gone through quote after quote after quote from Brexiteers who said that we would not be leaving the customs union, we would not be leaving the single market and we would still have the right to travel freely throughout Europe. Not everybody voted for a Brexit that was based on any single assessment damaging the economy, living standards and opportunities for their children and grandchildren.

The last of the assessments is the most recent, the Government’s assessment, which again shows a central forecast in all circumstances broadly in the minus 2% to minus 9% range. I find it extraordinary that the Government in essence have ignored every single serious assessment of the economic damage Brexit will do. What we see now with this proposal on the withdrawal agreement are rabbits caught in headlights, walking the economy towards danger, rather than pausing, thinking and changing course.

[Richard Graham]

I want to pick up on an earlier comment. The hon. Gentleman said that bringing to an end free movement would be very damaging. What would he say to my constituent, a young Gloucester girl, eight months’ pregnant and badly beaten up by her European boyfriend, who is terrified that when he comes out of prison he will return to haunt her and her family, because this country cannot deport European nationals unless they have served a sentence of longer than two years? Does he agree that there are some elements where actually it would be protective, not damaging?

[Stewart Hosie]

I am reluctant to get into an individual case. Suffice it to say we all have constituents. The same young lady may have been assaulted by a man from the same town who lives two streets away. Nationality and the ability to travel in that circumstance, however difficult, is actually irrelevant.

--- Later in debate ---

[Mr Davis]

People have to read more than one line of a speech. Perhaps the hon. Gentleman’s iPad is too small to carry more than one sentence. I also said that the critical part of the negotiation would not be the first two years, but the last three months, when France and Germany would determine the outcome. If the hon. Gentleman wants to quote me again, he should get it right next time.

[Richard Graham]

May I make one small point? My right hon. Friend has focused on the backstop on the Northern Irish border, and he has quoted the Attorney General as saying that we could be in that indefinitely, but surely the “if” is if we decide to go into the backstop in the first place. The other option is to extend the transition. Does he not agree?

[Mr Davis]

That is what is laid out in the proposal, but the transition will then come to an end, and at the end of that, we will still have to make a decision on where we are going, backstop or no. I am afraid that we are always in, and the point is that it is at the behest of the European Union, not at our behest. I have nothing against the European Union, but it is the negotiating partner that may gain an advantage from delay.

--- Later in debate ---

[Richard Graham (Gloucester) (Con)]

I want to argue for the inevitability of imperfection, the lack of credible alternatives, the value of compromise and, above all, the benefits of safeguarding the interests of our constituents.

Let me start with the deal and its imperfections, many of which have been listed by colleagues around the House. Above all, there are concerns that the backstop arrangement to prevent a hard border on Northern Ireland could lead us into an indefinite purgatory of neither in nor out, with rules from the EU governing aspects of trade between Great Britain and Northern Ireland. If the Government can give further reassurance on that point, many colleagues on both sides of the House will clearly be relieved.

But the deal does something else: it balances honouring the result of the referendum, looking after citizens and their rights and not damaging business, jobs or the security of our nation. For those of us who voted to remain—because, as I wrote at the time, the short-term risks outweighed the potential longer-term benefits—and those who voted to leave, to bring back control, the deal mitigates the risks, gives certainty to people, trade and security, and allows us the chance to shape opportunities that may come forward in the next stage of the negotiations on detailed trade and customs arrangements.

For my constituency of Gloucester, with our engineering and manufacturing heritage, aerospace and nuclear interests, our growing cyber sector and the contribution made by our academics and health specialists from the European Union, this compromise may not look heroic, but it is practical.

Let me make three other key points. The first is that flaws in negotiations are as inevitable as the weathered stonework on Gloucester cathedral. As Churchill said,

“democracy is the worst form of Government except for all those other forms that have been tried from time to time”.—[Official Report, 11 November 1947; Vol. 444, c. 207.]

So it is with this deal. Those who criticise the deal because it does not satisfy them, either because it does not have a close enough relationship with the EU or is not distant enough from the EU, are effectively offering one of three alternatives: no deal plus WTO, a Labour renegotiation, Norway-plus, or a second referendum. Let me brush aside, I am afraid, the concept of a Labour renegotiation, as this comes from the party whose only position has been not to have a position—resolute only to be irresolute. On a second referendum, this would be the only genuine betrayal of the promise made to every household before the referendum: “What you decide, we will implement.” On Norway-plus, however defined, which could become a place of refuge if this deal were rejected, the House should be in no doubt—it is not a good deal. We would pay a lot to be a rule taker and never have an independent trade policy.

For those of my colleagues representing seats from Uxbridge to North East Derbyshire who rail against the deal, the challenge is this: show me your better deal, and do not risk what you wanted—Brexit—by now demanding everything from a negotiation that will never be achievable.

Our constituents want to see this deal done. They want us to move on and get back to what they want to focus on: better care, less knife crime, easier transport, good broadband and excellent public services. In the civil war—

[Mr Speaker]

Order.

--- Later in debate ---

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

I rise to speak as someone who lived and worked in Brussels, in the EU bubble; whose wife and, by virtue, nieces are EU nationals; who voted remain in June 2016; and who represents a constituency that voted convincingly to remain in the European Union.

For quite a long time post the referendum, I wrestled with my conscience over whether supporting the Government’s decision to pursue Brexit was the right one and true to what I believed. Let me be clear: I never for one moment doubted that this country could survive and thrive outwith the European club. This is the fifth largest economy in the world. We are an enterprising, dynamic, inventive and confident nation—a Union of nations of near unparalleled continuing strength and influence, with interests and allies far beyond this continent. The point I wrestled with was why it should have to choose between being prosperous within or outwith the certainly imperfect European Union.

The simple fact that I came to realise pretty early on, which must be remembered by those who argue for another referendum or for Brexit to be halted in some way, is that the decision was taken in a people’s vote—the biggest democratic exercise in the history of this country. The decision of the British people, whom we are all elected to serve, was to leave the European Union.

I understand how many of my colleagues feel, especially on the Government Benches, and I know that many of my closest friends and colleagues are struggling to come to a decision on how to vote next Tuesday. They are wrestling with their consciences, as I did, and I know they are doing so to come to a decision that they believe will be in the national interest.

It was John F. Kennedy who said:

“a nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people.”

The people judged—the people voted—and now we must honour the result of that judgment and leave the European Union. It is up to us to implement that decision, and our duty is to do so in a way that is supportive of business and will cause as little upset to the economy as possible.

As the Member of Parliament for West Aberdeenshire and Kincardine—as a Scottish MP—I back the agreement brokered between Her Majesty’s Government and the European Commission. I do not do so lightly. I do so because I believe that it is the best outcome for business, for my constituents and for Scotland. I do so not because it is an easy choice, but because I believe it is the right one and in the national interest.

This deal is supported by the National Farmers Union of Scotland, the Scotch Whisky Association, the Scottish Chambers of Commerce, CBI Scotland, the Scottish Fishermen’s Federation—which knows a little bit more about fishing than some Opposition Members —and Sir Ian Wood, who said:

“I frankly think we do need to move ahead—it’s what you hear most business people saying… I think the proposal that’s on the table…is workable. I think it is better than we have—we’re out of Common Market membership, but we’re maintaining some of the advantages.”

It would be a great dereliction of duty on my part if I did not listen to those voices.

[Richard Graham]

My hon. Friend is making a powerful case. Does he agree that representatives of different sectors in Northern Ireland—whether the retail industry, manufacturing or services—have also been very supportive of this deal, and that should be taken into account?

[Andrew Bowie]

I thank my hon. Friend for his intervention. I recognise that point. However, I do not think it is incumbent on me to speak on behalf of Northern Ireland; I will leave that up to Members elected to this place from Northern Ireland. I am speaking on behalf of my constituents and what I think is in Scotland’s best interests.

Scottish MPs have a duty to do what is in the best interests of the Scottish people and the Scottish economy. I say to my colleagues from Scotland on both sides of the House that it is now time to stand up and be counted. For the sake of our economy and this country, we have to back this deal, back the Government and move on together as we continue to build a Britain that is united, stronger and genuinely fit for the future.

--- Later in debate ---

[Dr Fox]

I will not give way again.

The Government have made it clear that we want to take a balanced approach to the question of our future trading prospects. We acknowledge the need to maximise our access to the EU market, but without damaging our potential to benefit from the emerging trade opportunities in other parts of the world. I remind the House that the International Monetary Fund has said that 90% of global growth in the next five years, bringing its forecast forward, will occur outside continental Europe.

Ambitious arrangements have been made in the political declaration for services and investment—crucial to this country—arrangements that go well beyond WTO commitments and build on the most ambitious of the EU’s recent FTAs. But we have also been clear that our future relationship with the EU would recognise the development of an independent UK trade policy and not tie our hands when it comes to global opportunities. The 27 nations of the EU constitute some of our largest trading partners. As a whole, some 44% of this country’s exports of goods and services still go to the EU, although that proportion has diminished somewhat over the past decade or so. We have set out an approach that means the UK would be able to set its own trade policy with the rest of the world, including—let me be very clear—setting our own tariffs, implementing our own trade remedies and taking up our own independent seat at the World Trade Organisation. It is at the WTO and like bodies that proper global liberalisation is likely to take place. In an economy that is 80% services-orientated, the liberalisation globally of services will have a far greater impact on the future prosperity of the United Kingdom than anything that is likely to be done on a bilateral agreement in goods, which has largely been liberalised over the past 20 or so years.

Britain is well prepared for a global future. No other country has the same combination of fundamental strengths, which will allow us to thrive in an age where knowledge and expertise are the instigators of success. The inward investment into this country in recent months is testament to that. Not only have we maintained our place in global FDI—we have improved it. According to the UN, in the first six months of 2018, Britain was second only to China and ahead of the United States in terms of inward investment because of the strong economic fundamentals of this country that have been set down since 2010 by the Conservative Government. Our export and investment performance shows that the sceptics have been wrong and that Britain is flourishing. The divisions of the referendum now need to be consigned to the past. It is time to set aside our differences and lead our country to a future of freedom, success and prosperity.

Let us be clear about one thing. There are those who claim, and it has been claimed today, that Parliament can override the result of the referendum because Parliament is sovereign. I say this to them: on this particular issue Parliament subcontracted its sovereignty to the British people when it said, “We cannot or will not make a decision on this particular matter. We want the people to take this decision and issue an instruction to Parliament.” The people of this country made that decision and issued that instruction. If we want to retain the public’s faith in our democratic institutions, it is time for Parliament to live up to our side of the bargain. In politics, we cannot always have the luxury of doing what we want for ourselves, but we always have an abiding duty to do what is right for our country. I commend this motion to the House.

Ordered, That the debate be now adjourned.—(Gareth Johnson.)

Debate to be resumed on Monday 10 December (Order, 4 December).

[Richard Graham]

On a point of order, Mr Speaker. Earlier, I intervened on the hon. Member for Dundee East (Stewart Hosie) to make a point about the difference in sentencing by courts of EU nationals and those from other countries. I want to make it clear that I intended no disrespect to European nationals, but I made the point clumsily—I illustrated it clumsily. I therefore want to apologise to anyone who took offence. I promise the House that that was absolutely not intended.

[Mr Speaker]

I fully understand the purport of what the hon. Gentleman has had to say. I think that he has set the record straight. It is not for me to act as arbiter of the merit or demerit of what a particular hon. Member says. Each Member takes responsibility for his or her own observations. However, in the circumstances which the hon. Gentleman described to me briefly some little while ago at the Chair, I quite understand why he wanted to say what he has just said. I thank him for doing so, and I think it will be noted and appreciated by colleagues.

Finance (No. 3) Bill

Richard Graham Excerpts

Committee: 1st sitting: House of Commons
Monday 19th November 2018 Commons Chamber

[Kirsty Blackman]

I am not surprised that that has happened, because any Government who believe that a 16-year-old can live on less than an over 25-year-old are not going to make rational decisions in relation to pay for those at the younger end of the age spectrum. It would be a very good move if the UK Government were to change their policy and move to a situation where 16 and 17-year-olds, and those all the way up to 25, and in fact those over 25, were paid an amount they could actually live on, rather than an amount that does not enable them to buy the day-to-day essentials.

[Richard Graham (Gloucester) (Con)]

This is a small, but I think important, point: does the hon. Lady accept that that minimum level is exactly what it says—a minimum level? Many people, including my apprentice, earn far more than that, but if we set the level much higher, we are likely to reduce the number of opportunities available to 16 and 17-year-olds.

[Kirsty Blackman]

I do not believe that that is true. I know somebody who went for a job interview, and at the end of it they were offered the job. The person offering them the job actually said, “How old are you, because I want to see how little I can pay you?” Those decisions are being taken because of the discriminatory nature of the way the minimum wage is set. What we should have—and this is an argument I have made to the Government on a huge number of occasions on a number of different things—is a situation where those on the bottom of the pile are protected first, and then we should get rid of discriminatory practices where people might discriminate against 16 and 17-year-olds. I would raise the bar, rather than lower it; that is generally an argument I have made to the UK Government.

New clause 19, which we hope to push to a vote today, proposes that the Chancellor brings forward a report that analyses the distributional and other effects of a rise in the personal allowance to £12,750 in 2019-20. It is Scottish National party policy that the personal allowance be raised to £12,750. Given the increasing, and staggering, levels of in-work poverty, given the UN report criticising the UK Government’s implementation of austerity, and given the fact that millions of families across the UK have savings of less than £100, increasing the personal allowance even by a small amount will have an impact on the individuals and families who are struggling the most.

It is no incentive to work if we know that when we work we will still not be able to get out of all-consuming poverty. We need a UK Government who recognise that those who earn the least are suffering the most. In Scotland, the SNP has recognised that and we have made progressive changes to the tax system.

I do not want to live in a country where children are going hungry. The UK Government have got their head firmly in the sand on this issue. I do not understand how they can continue along this track when we are having people come into our surgeries in tears because they have not eaten in days.

--- Later in debate ---

[Peter Dowd]

My hon. Friend is right, and for the Tories that choice comes first, second and third, and it always will.

On one hand the Government are lengthening the qualifying time for investors from one year to two, but on the other hand they are ensuring that shareholders will be protected from falling below the 5% threshold needed to claim the relief when a company is sold. It is hard to see how this confused measure will tackle the growing cost of the relief.

Naturally, the Opposition, the Resolution Foundation and the IFS are not the only ones who have found this measure perplexing to say the least. The Chartered Institute of Taxation has raised deep concerns about its retroactive nature, its lack of clarity and the likelihood that the reforms will hit small businesses the hardest—the businesses that the hon. Member for Redditch (Rachel Maclean) no doubt had in mind in her intervention. Far from making the relief more equitable, this measure will instead insulate wealthier claimants who can rely on expensive tax advisers to navigate red tape, ensuring that the cost of the relief will continue to bloom.

The cost of corporate welfare has risen steadily under this Conservative Government. In fact, I would go so far as to say that it is the one form of welfare that Government Members support. In contrast, the Labour party is committed to undertaking a full and comprehensive review of corporate tax reliefs when—not if—we reach government. That is why we have tabled new clause 3, which would require the Government to undertake a full review of entrepreneurs’ relief. The review would consider the overall number of entrepreneurs in the United Kingdom, the annual cost of the relief, the cost per claim and the impact of the relief on productivity in the UK—productivity that is 15% below our comparators in the G7 and 35% below the Germans. The Government should be getting to grips with that fact, not fiddling around with entrepreneurs’ relief.

Government Members should ask themselves how they can justify the amount of money going to 52,000 people while our public services are falling into disrepair. This relief is clearly in need of urgent review to ensure that the taxpayer is not being ripped off. They should be clear that if they choose to vote against new clause 3, they are voting against the interests of taxpayers across the country. Again, this is £2.7 billion for 52,000 people.

I hope that Government Members will support our new clauses 1, 2 and 3, for the reasons that I have outlined. This authoritarian Government of the rich, by the rich, for the rich have lost all credibility to manage the affairs of this country. They no longer know what they stand for, nor do they have the courage to find out. This Bill of broken promises takes us no further forward in meeting this country’s mounting challenges, so I call on Members throughout the House to support Labour’s proposals to create a fairer society and a fairer tax system. If we are unable to change the Government’s course, we will challenge the Bill at every step of the way, notwithstanding the authoritarian shackles put on us by this authoritarian Government, and we will use it to put an end to this aimless and divided Government.

[Richard Graham]

It is a pleasure to follow the hon. Member for Bootle (Peter Dowd), although there were moments during his speech when I found myself wondering whether history was being rewritten in a remarkably creative way.

The changes that the Government have proposed come against a background of remarkable achievement in cutting the deficit by four fifths, reducing the unemployment rate to its lowest since the 1970s, giving 32 million people tax cuts and taking 1.7 million out of income tax altogether. Some of those things were denied by the hon. Gentleman, who claimed at one point that the rich were only getting richer. I think it therefore falls to me to offer a few statistics to put his comments into context.

The first comes from the Institute for Fiscal Studies analysis of what went on under the previous Labour Government. The hon. Gentleman, who is chuntering with his colleague the shadow Chancellor, should focus on that IFS analysis. The independent analysis from the IFS shows very clearly that on most measures income inequality during the 13 years of the previous Labour Government went up. Part of the reason for that was explained, helpfully, by the hon. Member for Norwich South (Clive Lewis) in an interesting interview with The Guardian the other day. He pointed out that the attitude of the previous Labour Government was, to quote the former deputy Prime Minister, Lord Mandelson, “intensely relaxed” about the filthy rich. The hon. Member for Norwich South rightly went on to say that during the 13 years of the Labour Government:

“The huge fortunes of those at the very top…were left almost untouched.”

That is why the work done by this Government, which for example includes scrapping child benefit in 2013 for those earning over £50,000, has led to the lowest tax gap for a very long time. The percentage of income tax paid by the top 1% has doubled under the Conservative Government. The hon. Member for Bootle therefore needs to think hard about that IFS analysis. Income inequality went up under the 13 years of the Labour Government and it has gone down in eight years under the Conservatives.

There are other points worth highlighting. For example, people on lower and middle incomes actually have more money in their pockets now than at the start of the financial crisis under the previous Labour Government. The gap, as I pointed out, between those on the lowest and highest incomes is lower than it was when the Labour Government left power in 2010. In fact, income inequality is now close to its lowest point since 1986. That is a remarkable achievement. Over the past 30 years, which include 13 of a Labour Government, income inequality narrowed sharply under this Conservative Government.

Labour Members have made a lot of points about employment, so it is worth highlighting that the growth in employment benefits most the poorest 20% of households. The employment rate is now up by more than seven percentage points on where it was before the financial crisis under Labour in 2007. Thanks to the national living wage, the income of the lowest earners has actually grown by almost 5% since 2015, higher than at any other point across the earnings distribution. The actual situation today in our economy for those working is therefore very different from that painted by those on the Opposition Benches and by the hon. Gentleman.

A crucial and major difference between the Labour party and the Government is on taxing business. The uncomfortable truth for Opposition Members who would like to tax business more is that since the Government cut corporation tax in 2010 receipts have gone up by 50%, generating an extra £20 billion in 2016 over what was generated in 2010. The extra £20 billion we found for the NHS above inflation for this five-year period does not come from nowhere; it comes from increased receipts and growth in the economy. That extra £20 billion raised from corporation tax, as a result of cutting corporation tax, is one of the critical economic differences between those on the Government side of the House and those on the Opposition side. The Opposition still believe that if they tax businesses more they will get more tax. The truth, however, is that if we tax businesses less we incentivise business and entrepreneurs, generating more tax receipts to put into our vital public services.

[Julian Knight]

Does my hon. Friend recognise that £20 billion happens to be exactly the same amount of extra money that the Government have pledged to put into our national health service?

--- Later in debate ---

[Richard Graham]

Exactly. The figures are a coincidence, but my hon. Friend is absolutely right to highlight that we are putting the same amount of extra money into the NHS—the largest ever amount invested into our national health service.

[Leo Docherty]

My hon. Friend is painting a very lucid picture of how the Government differ from the Opposition with regard to tax, but does he agree that that also applies to our approach to private property? The discussion that the Labour party is having about the wholesale renationalisation of major parts of our economy is deeply alarming, and it should come clean to the public about how much that would actually cost.

[Richard Graham]

My hon. Friend is absolutely right. The remark made by the shadow Chancellor earlier that the public—all our constituents—would have to pay zero extra to fund the widespread nationalisation of all the utility companies, the train companies and anything else was really quite extraordinary. To be honest, I would be surprised if somebody did not raise that on a point of order in terms of misleading the House and the nation, because clearly those figures are a mile away from what independent analysts have calculated.

[Rachel Maclean]

Has the shadow Chancellor not been on record stating that it does not matter if his sums do not add up, and that it is largely irrelevant, which demonstrates my hon. Friend’s point?

[Richard Graham]

My hon. Friend is absolutely right. As she knows well, the truth of the last Labour Government—during their 13 years—was that although they promised no more boom and bust, they gave us the biggest bust in peacetime history as a result of wildly overspending. I am afraid the net result of that is, as always, that the poorest feel the effects worst. In my constituency of Gloucester, 6,000 people lost their jobs during the great recession under Labour. Only since the Conservative Government came back have we seen employment rise sharply and youth unemployment and unemployment fall sharply.

[Jonathan Reynolds]

I will not repeat the debate that we always have about a global financial crisis not being solely contained in the UK, but on the earlier intervention that the hon. Gentleman took, the shadow Chancellor is not on the record as saying that his sums do not add up and that that does not matter. Let us remind the Committee that the only party that published costings of its policies at the election was Labour. It is genuinely misleading the Committee to claim that the shadow Chancellor said anything other than that.

[Richard Graham]

I thank the hon. Gentleman for his intervention, but will he confirm to the Committee what I heard the shadow Chancellor say earlier in answer to a question from one of my colleagues? He said that there would be zero additional cost to the taxpayer from the enormous, widespread renationalisation policy of Labour; will the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) confirm that there will not be a single penny of additional cost?

[Jonathan Reynolds]

The shadow Chancellor did not speak from the Dispatch Box. I think the hon. Gentleman is thinking of the shadow Chief Secretary, my hon. Friend the Member for Bootle (Peter Dowd)—the two should not be confused. On nationalisation, I think the point that my hon. Friend was trying to make is that we can simply look at British history to see how this works. If we take an asset into public ownership and the return from that asset is greater than the cost of the borrowing to take it on, there is no net cost to the taxpayer, and certainly, income tax will not have to rise to cover that.

[The Chairman of Ways and Means (Sir Lindsay Hoyle)]

Order. We are not having a debate on party policy. We have amendments and clauses before us and we are straying from them—I know you wanted to get through your speech very quickly, Mr Graham.

[Richard Graham]

You are entirely right as always, Sir Lindsay. It was helpful to have it exposed that there is clearly a significant difference of opinion between the shadow Chief Secretary and the shadow Chancellor on whether there will be any additional costs from the policies of the Opposition—[Interruption.] I have taken a lot of interventions, so I will cease from taking them so that I can come, as you suggested Sir Lindsay, to a rapid closure, which I am sure will be welcomed by Opposition Members.

Having made the crucial point on our approach to investment in business, let me finish on the annual investment allowance, which is a crucial part of the Budget and the clauses under discussion. This is important because it encourages businesses to invest in expensive technology that, over time, will allow them to grow and employ more people. I could give a dozen examples from my constituency of where this has been true. To give it some flavour, I will highlight just one area. The hon. Member for Stalybridge and Hyde will know, having visited China with me last week, how far we have gone in increasing our exports to China. From Gloucester alone, we are exporting a huge number of manufactured goods, including the landing gear on all Airbus aircraft.

[Peter Dowd]

If the hon. Gentleman is so sure of his position, what is wrong with providing for a review of the effectiveness of entrepreneurs’ relief, as new clause 3 would do?

[Richard Graham]

The hon. Gentleman is kind to mention that, but the fact is that we on the Government side of the House believe strongly in incentivising the entrepreneurs. They are the ones producing the technologies of the future—Fintech, Edtech, every sort of tech—and the reason why this country has seen more investment in technology in London alone in the last year than Germany, Spain, Ireland, the Netherlands and France put together. These incentives to businesses are what generate the additional tax revenue I highlighted earlier.

The changes to gambling tax are among the most significant measures proposed. These are fundamentally about what is morally right, and I am delighted that the Government have found a way to do the right thing, not just by reducing the maximum stake for fixed odds betting terminals from £100 to £2, but by introducing it rapidly and by raising the remote gambling duty from 15% to 21%. If I could make one request of the excellent Minister, it would be that he consider other ways to reduce the amount of online gambling advertising and to raise more tax revenue from it.

This is an important discussion. Some of the facts offered earlier by the Opposition were completely astray from reality, and I strongly support what the Government are doing to incentive business, encourage more people into work and, above all, benefit the lowest earners. It is worth finishing with one last statistic from the OECD: the proportion of jobs that are low-paid is at its lowest level in this country for at least 20 years. That is a significant achievement on which we can hope to build yet further in the future.

[Sir Vince Cable (Twickenham) (LD)]

I wish to say a few words about amendment 18, which would remove clause 5. I spoke on this at length on Second Reading, so I do not need to say a great deal.

The difficulty with clause 5 is that it combines two very different measures, the first being to lift the low earners threshold. As the hon. Member for Solihull (Julian Knight) reminded us a few minutes ago, this was a policy that I and my colleagues pursued in government, and it is not something I at all disagree with. The second, however, is a much more substantial measure to lift the tax threshold for middle earners. I do not pretend for a moment that people at the higher rate threshold are rich people—at the bottom end, they are paid less than Members of Parliament—but we need to get beyond the headlines and look at the actual numbers.

The lower threshold is to be lifted by £650, and 20% of that is £130, so the people solely on standard rate tax will get £130 in their pocket as a result of this measure. Of course, that is welcome. It is about a 2% increase, which is roughly in line with inflation, and is unquestionably a good thing. For the high earners threshold, however, we are talking about much bigger sums of money—a £3,650 increase in the threshold. Multiplied by 20%, and we are talking about £730, but of course high earners also benefit from the standard rate threshold increase. Add the two together and we have got £860. This measure, which is badged as a measure to help low earners, helps low earners to take home £130 a year and high earners £860 a year. On no conceivable measure could that be described as some enlightened policy for helping the low paid.

Having said that, I should add that there are things that the Government could have done as part of the policy of reducing fiscal drag. I fully understand the need at the margin to stop people being dragged into higher tax rates, and something could have been done to offset that. The Chancellor himself has acknowledged that there are extremely expensive and lavish tax reliefs on pension contributions for upper earners, which cost the country about £25 billion a year. I think that if he had chosen to offset the upper-rate threshold measure by some reduction in pension tax relief for the high paid, such that it neutralised it, many of us would have thought that that was quite a reasonable way of making progress, but he did not, despite the urgent need for revenue.

In an ideal world we would be looking at tax cuts for everyone, but we are not in an ideal world. There are issues of priorities. As several Conservative Members have reminded us—former Chancellors, among others—we are living in a world of severe fiscal restrictions, despite the proclamation of the end of austerity. There are other purposes for which the money could have been better used. We are talking about £2.8 billion in the first year, tapering to about £1.7 billion a year, of which roughly half is for the upper rate threshold. We can all think of many, many ways of spending that money, but for me the priority would have been fully restoring the cuts in universal credit that were made two years ago. The Government have partly done that, but with the additional sum of £1.3 billion, the Chancellor could have returned universal credit to the levels at which it was placed two years ago, in the Osborne Budget. The money could also have been used to end the benefits freeze a year early. The continuation of that freeze means that the poorest 30% in the population are being dragged down as a result of the Budget, but ending the freeze a year early could have offset that. Obviously there are many other purposes for which the money could have been used, but those would have been my priorities.

This measure, politically, was obviously intended to enable the Chancellor to proclaim that the end of austerity is not just about public spending, but about cutting taxes. There is nothing wrong with that general proposition, but the problem is that it is dishonest: that is not what is actually happening. The revenue line in the Red Book shows clearly that as a result of revenue measures, council tax will rise by £6 billion over the next five years—that it will rise by considerably more than income tax is being cut. What, essentially, is happening is that as a result of the reduction, or the freezing, of spending on support for local councils, the councils are making up their revenue through council tax increases to the maximum extent allowed. The Government, according to their own numbers, believe that council tax revenue will rise by £6 billion to about £40 billion. That, as I have said, more than cancels out the income tax cuts, most of which in any case accrue to higher-rate earners. So this is not a tax-cutting Budget at all. It is, indirectly, a tax-raising Budget, and I hope that that will be pointed out to members of the Government when they use such rhetoric in future.

I simply wish to move my amendment, and we will seek to oppose clause 5 stand part.

Finance (No. 3) Bill

Richard Graham Excerpts

2nd reading: House of Commons & Programme motion: House of Commons
Monday 12th November 2018 Commons Chamber

[Kirsty Blackman]

I agree with the hon. Lady. There is a clear health impact to lowering the stakes. Making the changes in April, rather than next October, will have a genuine impact on the health of a huge number of individuals.

[Richard Graham (Gloucester) (Con)]

I am very clearly on the record as having supported changing the tariff that people can spend on fixed odds betting terminals from £100 to £2; it is absolutely the right thing to do. Let me be clear that it is quite extraordinary for a Labour Member to stand up and start lecturing the Government on having made an incredibly important and valuable change to legislation that rights the wrong of this fixed odds betting terminals—

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Order. Mr Graham, you have been here long enough to know that we have short interventions; you do not need me to tell you that. If you want to speak, I will put you on the list, but we must have short interventions.