Budget Resolutions

Ronnie Cowan Excerpts

Tuesday 12th March 2024 Commons Chamber

[Ronnie Cowan (Inverclyde) (SNP)]

I start with a confession, Madam Deputy Speaker: this speech may be familiar to anyone who heard my Budget speech last year, because it is pretty much the same one. The reason is that despite a year passing, the UK Government are no further forward—another Budget, another Red Book. I note that this year, under the heading “Agriculture” in paragraph 4.24 of the Red Book, the Government touch upon drainage boards, and investment in water and flood management. I plead with them: manage it as nature would. Trap the water in the hills. Promote capture and slow release. Encourage and support councils to plant green areas in the appropriate places. Do not think that we can concrete our way through this problem.

In my constituency of Inverclyde, with the help of Clyde Muirshiel park, local farmers and the Yearn Stane project are re-establishing peatland, which will reduce flooding, create an environment for nature to flourish, and be accessible for people to walk and cycle. This is being done by helping nature to do what it does best, and undoing the damage that was caused by draining the land for grouse shooting all those years ago. Under the heading “Green industries”—paragraph 4.51 of the Red Book—the Government are throwing some sizeable chunks of money at lowering carbon emissions, but there are two errors in this rather small section. First, it mentions nuclear as a “critical part” of the Government’s plan to decarbonise power. It is worth noting that building Sizewell C will create 6.24 million tonnes of carbon equivalent CO2; that is one hell of a price to pay for a build that is not needed.

Secondly, if we want to decarbonise our energy sector, stimulate agriculture, reduce plastic waste, reduce landfill, improve our environment and increase agricultural yield, why is there absolutely no mention whatsoever of hemp? This is where my speech starts to sound familiar, but I was told very early in my time here that there is nothing wrong with repetition. I want this Government to help an industry that employs local people, could generate huge profits, pay its taxes to the Exchequer and help to offset the environmental damage that we are doing to our precious planet. That industry would be a win-win-win scenario. What better way to grow an economy and help the local community, if not by creating jobs so that people have a disposable income to spend locally, and benefit the local community and all associated supply chains?

Hemp: the evidence has been available for centuries—indeed, it was promoted and even enforced by King Henry VIII in the 16th century. Back then, a quarter of all arable land was dedicated to growing hemp, but there are still people who walk among us who hear and fear recreational cannabis when we say “hemp”. That is born out of ignorance. The most recent example has to be when the UK Home Office took actions to stop the export of products to the UK from the Jersey-based firm, Jersey Hemp.

Jersey Hemp has worked for three years to ensure it meets every UK Government compliance standard, and the UK Government went behind its back to the Jersey authorities to stop Jersey Hemp operating. After months of legal action in the UK courts, the Home Office has finally admitted that it acted unlawfully in relation to Jersey Hemp. I am limited in what I can say, but no amount of compensation will help Jersey Hemp, which has been wiped out by the actions of the UK Government. I only mention that case because it is symptomatic of the UK Government’s lack of vision and lack of understanding when it comes to the hemp plant.

In the 16th century, hemp production was encouraged to manufacture rope and canvas for the King’s Navy, but now we can make clothing, shoes, biodegradable plastic, insulation panels, food, paper and biofuels. The Government are currently spending billions retrofitting homes through the ECO4 and ECO+ schemes, but they are using products made from petrochemicals, which release harmful VOC—volatile organic compounds— emissions into the air of the buildings. Why not allow local farmers to grow hemp and supply the local contractors with carbon-negative natural fibre alternatives at scale? What would be a better use of public money?

In fact, there are 50,000 known uses for the hemp plant. Finding markets for hemp would not be a problem; growing it is. It will sell, it will be profitable, and the Government could reap the benefit. However, because of the inflexibility of the Proceeds of Crime Act 2002, companies can have their bank accounts seized and assets frozen, and that fear is stopping investment. The ignorance has permeated the stock exchange and, as a result, it has been dismissive of approaches from the business sector and myself.

The Government should be leading the charge, not cowering in the corner. They should be promoting the fact that hemp absorbs 22 tonnes per hectare of atmospheric carbon during its four-month growing cycle, and produces four times the biomass of the same sized area of forest, making it a far more sustainable source material. Hemp does not need pesticides, insecticides or fertiliser to grow in the UK, and it has natural antimicrobial properties, so it passively cleans the air in buildings. Hemp has high capacity for moisture absorption, allowing for a controlled atmosphere within buildings, and hemp construction materials act as a long-term carbon sink. A £60 million investment would create a facility capable of growing 32,000 acres per year. That would sequester over 207,000 tonnes of CO2 per annum: that is the CO2 photosynthesised by the hemp in its four-month growth; it does not include the carbon sequestered into the soil, or the net effect of replacing high embodied carbon products from international supply chains and their emissions. As a bonus for farmers, hemp regenerates the soil it grows in, so it would work well in crop rotation. It increases winter wheat and spring barley yields by 16% to 18% when they follow hemp in rotation, and it cleans groundwater.

The barrier to the industry raising the funding it requires is licensing. To make it a success, the Government only have to open their mind to the reality of what hemp is and distribute licences appropriately. The industry will take care of the rest. Hemp is not a plant for the past; it is a plant that can pave the way to a cleaner, greener future, and its benefits are clear for all to see, if we are prepared to open our eyes and to hear the possibilities. If raising taxes is what it takes—if that is the trigger required—then so be it, but we should not wait too long. It is a year since I made a similar speech, and in that time other countries have been pressing ahead while we are being left behind in our nuclear bunkers.

Corporate Profit and Inflation

Ronnie Cowan Excerpts

Tuesday 16th May 2023 Westminster Hall

[Ronnie Cowan (Inverclyde) (SNP)]

I congratulate the hon. Member for Leeds East (Richard Burgon) on securing the debate. Profits can be good if they are used wisely—if people reinvest them in their workforce and to pay their employees proper salaries. The question is: how big do profits have to be, and how were they created? Were they created on poor wages and poor working conditions? Were they created on inflated prices in the first place?

It was Thatcher who told us that greed was good. She saw it as a driver—something to push people hard to make them generate bigger profits. People would be “fulfilled” by their ability to gather more—more money, more houses, more cars, more wealth. We see this in our society today; it did not end with Thatcher, unfortunately. We have kings and queens in gold coaches, wearing diamond-encrusted crowns, flashing orbs and swords dripping in jewels, and being dragged through the streets as exemplars of what our society should be looking up to. Currently, money makes the world go round. A few people possess the most, and the message to those without is, “Money makes you happy.” It is an insecurity that these people have—how much is enough? If someone is a millionaire, do they need two million? Do they need five million? Do they need a billion? How big is their insecurity if they think money and wealth is going to fill that hole for them? Corporations push for more and more, while many are being left behind by this greed attitude. It is not new, but years of Tory austerity have increased the number of people living in a precarious fashion.

We need to reset the goals. Rather than measuring success in money and incentivising profits over people, we need to prioritise wellbeing, and promote a four-day working week and a universal basic income. As artificial intelligence advances and the gig economy takes hold, tinkering around the edges will not solve the problems. The land belongs to the people; the water and the trees belong to the people. We need a return to community. We need government closer to the people.

The Beveridge report in 1942 was a clarion call to create a fairer society, and it is as true today as it was 80 years ago. While this Government curtail the powers of the trade unions, and suppress the right to strike and the ability to vote, they are propping up the greed in society. That is unsustainable; history has taught us that. If we are to create a fairer society, we need to reprioritise the aims of this Government. We must be prepared to put people before profit.

Cash Acceptance

Ronnie Cowan Excerpts

Monday 20th March 2023 Westminster Hall

[Ronnie Cowan (Inverclyde) (SNP)]

As my hon. Friend mentioned, freedom of choice is imperative. Currently, we need cash and card. We need to make everyone comfortable with the direction of travel. Does he agree that an education programme is required akin to the one we had back in the day when we introduced decimalisation? Given the average age of people in the room, I may have to explain what decimalisation is.

[Martyn Day]

I am grateful to my hon. Friend. I am perhaps giving my age away, but I came in with decimalisation. I recall the ready reckoners that my elderly relatives had for me to play with as a toy many years ago. An education programme would be helpful. In 20 to 30 years from now we will be in a different place, but here and now there is a real demand for cash, particularly for many vulnerable groups, such as disabled users who need cash and may not even have their own bank accounts.

Financial Services and Markets Bill

Ronnie Cowan Excerpts

2nd reading
Wednesday 7th September 2022 Commons Chamber

[Ronnie Cowan (Inverclyde) (SNP)]

I will not consume all my seven minutes. I shall try to give some time back to the House and allow others to speak. In any event, I am feeling absolutely lousy, and standing for more than three minutes may well prove to be a bit of a challenge.

The majority of people are using less cash. The technology which is available, and which we are encouraged to use, has seen cash acceptance and access to cash decline. For many people, including me, using a card or phone to pay for goods and services has become the norm. It is quick, it is convenient, it is practical—but it is not for everyone. As the cost of living has gone up, there is evidence that more people are turning to cash in order to budget. The Post Office reported record withdrawals in July 2022, and a survey commissioned by LINK has indicated that 10% of people are planning to use cash more to help them to budget.

We are not talking small numbers here: more than 5 million people in the UK are already relying on cash, and—quite disturbingly—55% of respondents to a survey of 500,000 people conducted by Cardtronics felt pushed towards cashlessness against their will. We need a sensible strategy that does not discriminate against cash users, who tend to be the elderly and the most impoverished in our society. The Government must provide clarity about the content of their access to cash policy statement. There is no reference to ensuring free access to cash, which is an absolute must. There are no baseline geographic distances applying to withdrawal and depositing facilities. When communities apply for such services, there is no feedback to explain why an application was unsuccessful. This process should be transparent and clear.

I urge the UK Government to make the consumer’s interests their priority, and to produce a Bill that safeguards existing cash users and ensures that firms have complied with their own regulatory obligations. Honestly, how hard can that be?

Cost of Living Increases

Ronnie Cowan Excerpts

Wednesday 16th March 2022 Commons Chamber

[Ronnie Cowan (Inverclyde) (SNP)]

The Minister talks about helping people. How would she categorise the increase to national insurance contributions?

[Helen Whately]

I just mentioned the importance of rebuilding the public finances. We know that the NHS is the No. 1 priority for the general public; it is vital that we reduce the backlogs that sadly built up during the pandemic, and that needs to be paid for.

To come back to the motion, last month we announced an additional package of support to help households with rising energy bills, worth £9.1 billion—a package that, according to the motion, the Scottish National party wants to scrap. Our package to help people includes a £200 reduction in household energy bills this autumn that will be paid back automatically over the next five years, and a £150 non-repayable council tax rebate payment for all households in council tax bands A to D in England, plus £144 million of discretionary funding for local authorities in England to support households who need support but are not eligible for that council tax rebate. As we cannot apply these council tax measures across the whole of the UK, the devolved Administrations are receiving almost £600 million through the Barnett formula. This overall approach is fiscally responsible while helping customers to manage the unprecedented increase in energy bills and helping to spread the increased cost of global prices over time.

Bank Branch Closures

Ronnie Cowan Excerpts

Wednesday 16th March 2022 Commons Chamber

[Ms Qaisar]

I thank my hon. Friend for her intervention, and Members will not be surprised to hear that I completely agree with what she has just stated.

At the onset of the covid pandemic so many businesses across the country literally switched overnight to cashless payment systems. The concerns about the move towards a cashless society have been raised numerous times by Members from across this House. However, the shift to digital banking has only been accelerated by the ongoing pandemic. While we continue to move away from cash and towards the digital era of banking, it is vital that we ensure that no one is left behind. I mean no disrespect to my colleagues, especially those on the SNP Benches, but there is a wee bit of an age difference between myself and some of the others. I am stereotypical of those young people who are more likely to use digital wallets, smartphone apps and online banking. Recent statistics show us that about 76% of people in the UK use some form of digital money management, and this trend is increasing, especially in the younger sections of society, with more than 50% of 25 to 34-year-olds willing to go completely digital when handling their finances. That does not translate throughout older demographics and more vulnerable groups in society.

[Ronnie Cowan (Inverclyde) (SNP)]

As one of the older generation, I get my hon. Friend’s point: we absolutely are moving towards a digital economy. There is no doubt about that, but access to cash is absolutely required for the most impoverished in our society and, yes, some of our older colleagues. Does she agree that the banks and, importantly, the post offices have to look at this closely, because as high street banks close, the ATMs often go with them? They provide access to cash and, importantly, access to cash to the penny, which is still required.

[Ms Qaisar]

I thank my hon. Friend for his intervention, and what he is saying is important. Of course, when I was talking about older Members, I was not referring to him at all. [Laughter.] At that point, I will swiftly move on.

Throughout the course of the pandemic, we have witnessed the need for a more digitally connected society, both for work and socialising. Banking, however, is not excluded from that. While there has been a sharp increase in the uptake of digital banking, simultaneously we have also seen a mass exodus of banks from our high streets. This poses huge concerns for those who are not digitally literate, have no access to technology or are simply uncomfortable with the transition away from cash. An important point to remember is that where some of these people are not using digital wallets, online banking or digital banking it is through no fault of their own; they might have financial struggles that mean they are unable to get access to mobile data or wi-fi. That is hindering their access and we are not necessarily talking about people from an older age demographic. The 2019 Access to Cash final report found that more than 8 million people would struggle directly as a consequence of a cashless society. Cash is therefore essential to ensuring that vulnerable groups such as older people or low-income households, who often have limited access to digital banking, are not excluded.

Economic Update

Ronnie Cowan Excerpts

Thursday 3rd February 2022 Commons Chamber

[Rishi Sunak]

I agree with my hon. Friend. She puts the point excellently. Government Members are in favour of more investment in domestic energy, more jobs for the British economy and greater energy security for our nation.

[Ronnie Cowan (Inverclyde) (SNP)]

With families facing an extra £2,800 of expenses, this package does not really touch the sides at all, does it? With regard to electricity, the Chancellor said:

“with the Government meeting the cost in full.”

But he is not is he? He is spreading it over five years, which means that next year, when electricity prices continue to rise, the poorest families will face increased bills and have to find £40 to pay back to the Chancellor. You have not put a lid on it, Chancellor, you have just kicked the can further down the road.

[Rishi Sunak]

As my right hon. Friend the Member for Harlow (Robert Halfon) said earlier, £350 is a significant amount of money for families up and down the country, and I think it will make a real difference and lessen their anxiety. What I was talking about was the council tax rebate, which will be fully Exchequer funded with no cash due back.

Oral Answers to Questions

Ronnie Cowan Excerpts

Tuesday 1st February 2022 Commons Chamber

[Mr Simon Clarke]

My hon. Friend is a fantastic advocate for Wrexham, and for wider pride in north Wales, which is incredibly important. I am happy to meet her to discuss any aspect of the bid process that it would be helpful to discuss further.

[Ronnie Cowan (Inverclyde) (SNP)]

Will the Chancellor confirm or deny that millions of pounds of taxpayers’ funds have been sunk into an online gambling company with the Government’s start-up scheme? If so, is this the right time to invest in a private gambling firm, since a review of the Gambling Act 2005 is already being undertaken?

[Mr Clarke]

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

Downing Street Garden Event

Ronnie Cowan Excerpts

Tuesday 11th January 2022 Commons Chamber

[Michael Ellis]

The Prime Minister will be here tomorrow, as I have said, in the normal course of events. He will continue to represent the Government of this country and recognises better than anyone the impact of this appalling pandemic on the people of this country.

[Ronnie Cowan (Inverclyde) (SNP)]

We work within a system in which the Prime Minister appoints the independent adviser and the Prime Minister is responsible for applying the ministerial code, but this Prime Minister has demeaned his position by becoming a law unto himself. He refuses to observe the Nolan principles, so who among this Government is going to be brave enough to tell the Prime Minister that the party is finally over?

[Michael Ellis]

The hon. Gentleman makes those accusations; they are not supported by the evidence and he should wait to see what the result of the investigation is. The Prime Minister acknowledges the importance of the Nolan principles in public life and he adheres to them.

Access to Cash

Ronnie Cowan Excerpts

Wednesday 20th October 2021 Westminster Hall

[Ronnie Cowan (Inverclyde) (SNP)]

I congratulate the hon. Member for Pontypridd (Alex Davies-Jones) on bringing forward this debate.

Of course, most of us still want access to cash. For some, it is still their preferred method to manage their incomes and their outgoings; for many, it is still something they use—less frequently, but it is still required. I read with interest this morning on the BBC that:

“People are taking out more money when they visit ATMs, with the average amount climbing more than £10 to just under £80 in the last two years.”

My immediate thought was, “Cash is making a comeback,” but the next line said:

“But they’re using cash machines 40% less than before and withdrawing £44 a month less.”

I thought, “Is this because there are fewer ATMs? When people find one, are they taking out more money, so that they do not run out before they find another one that is working and is free to use?” However, Nick Quin, head of financial inclusion at LINK, has said:

“Covid has turbocharged the switch to digital”.

While cash usage is down in every constituency in the country, some have seen a 20% drop, while others have seen a drop of as much of 60% over the same time. Different parts of the UK are moving at different rates. It comes as no surprise that the most deprived areas of the country are likely to be using more cash than the wealthiest. Some 5 million people still rely on cash, and as we have heard, and 1 million people do not have a bank account. The average adult withdrew £1,500 in 2020. Cash will remain an important part of life for many people for a long time to come. That is reflected in the UK Government statement that they are

“preserving the long established, traditional services like cash that are integral to people’s lives.”

However, the reality is somewhat different. Access to cash is getting harder.

In my constituency of Inverclyde, the number of free-to-use ATMs has dropped from 87 to 68 in three years. Across Scotland, there has been a 16% reduction, which is compounded by the loss of 400 bank and building society branches, a 34% reduction—which in truth leaves me none the wiser, because I do not know what we are doing as a society. Are we working towards a cashless society? Is it the UK Government’s belief that we are moving towards a cashless society? If so, what is their timescale?

I have a number of issues with a cashless society that have to be addressed. For it to work, we require technology that is robust, secure and available 24/7. Currently, it is not. Only last Saturday, mid-way through preparing a meal for friends, I realised that I was missing a key ingredient. I went to my local convenience store, and there on the front door it said, “Cash only”, with a sign on the ATM saying, “Out of order”. By good luck rather design, I had a fiver in my wallet, and my Nigella Lawson fish curry was a huge success. Cash saved my curry, but what if we had relied on entirely on cashless transactions? What if there was a serious situation, where somebody had to pay a bill to stop the electricity being cut off or needed to pay for a taxi, bus or train to get to a loved one in distress, and cash was a thing of the past and the technology had been compromised?

What I am looking for from the UK Government is a destination and a plan. I remember when we transitioned from old money to decimal. It was a perfectly natural thing for me—as a very young child—but I had to try to explain to my gran, who was used to 12 pence to shilling and 20 shillings to the pound, that, from 240 pennies in a pound, there was now going to be 100. “Where’s my other 140 pennies?” She was baffled by this. To handle these concerns, there was a UK-wide advertising campaign to explain where we were going, what it would mean and how we would get there. If people’s fears are to be allayed and those that require cash are not left behind in a two-tier system, we need to look at a hybrid system that accommodates cash and electronic transfers. To make it work we need a strategy that encompasses a network of ATMs on the high street and in convenience stores with post office services and bank counter services. We need cash without purchase and banking hubs that serve our communities.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

Will the hon. Gentleman give way?

[Ronnie Cowan]

I am sorry, but I do not have time. Most importantly, the roles of each part of the system need to be clearly defined so that they complement each other, and when technology fails there must be a safety net to ensure that people can still top up their meters, purchase food and access public transport.

[Mrs Maria Miller (in the Chair)]

We have three speakers left and seven minutes, so perhaps Members will be kind to each other. I call Rachel Hopkins.