Business Property Relief and Agricultural Property Relief

Rupa Huq Excerpts

Thursday 17th October 2024 Westminster Hall

[John Glen (Salisbury) (Con)]

Would the hon. Gentleman acknowledge that the Canadian deal has not been signed in the last 18 months in order to take account of the agricultural sector’s concerns in particular? The pressing, immediate concern for which the Minister must provide a resolution today is how this Government are disposed towards agricultural property relief and business property relief. That is their concern now. The hon. Gentleman is making a political point—whatever happened previously, we have to focus on his Government’s responsibility in the coming two weeks.

[Dr Rupa Huq (in the Chair)]

I have just been reminded by the Clerk that it is very unusual for a shadow Cabinet member to speak in a Westminster Hall debate as a Back Bencher. I will allow Joe Morris to respond, but apparently that is not the done thing.

[John Glen]

I sought advice on the matter from our Chief Whip prior to coming here, Dr Huq.

[Dr Rupa Huq (in the Chair)]

It is not the Opposition Chief Whip’s decision; it lies with the Chairman of Ways and Means. Our rule book says that it is highly unusual. I will allow Joe Morris to respond, but hopefully there will not be a back and forth between the shadow Cabinet and Back Benchers.

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[Joe Morris]

I take the right hon. Gentleman’s point. I am glad that the last Government learned some of the lessons of the Australia trade deal and implemented them. It is important that we get an answer on APR and BPR. I am making a slightly political point, and I hope the right hon. Gentleman will humour me for it, but it is important that we maintain that international trade is an ongoing piece and the agricultural sector does not exist in isolation. None of these reliefs exist in isolation. Farming, more than anything, is an industry with concerns that sit between the Treasury, the Department for Environment, Food and Rural Affairs and the Department for Business and Trade. More than almost any other industry, it is reliant on good cross-party and cross-departmental working, and we need to ensure that the Government do that. I hope that we do not consider these things just in isolation but overall and together, and we must ensure that the Government are working towards securing them.

One of the main concerns that I picked up from my constituency is the inability of consumers to distinguish between British and foreign produce when it is badged up the wrong way. I hope the Treasury will listen to representations on how we can combat that kind of false advertising when foreign produce is repackaged as UK produce. How we keep the family farm going, and how we ensure that small farms are able to continue to produce in the Tyne valley, is deeply concerning to me. I have spoken to a lot of local farmers about land loss and about large corporations buying up prime agricultural land and using it to—I think it is fair to say—greenwash. That is genuinely a national issue that requires cross-party cohesion and cross-party solutions. My own hackneyed political point scoring is not going to help in that, but in the long term and in this Parliament, I would always welcome working to address that. However, I urge the Minister to remember that farms are businesses and they need long-term consumer confidence. They need an overall business climate that rewards investment and entrepreneurialism, but not one that is not built on sand. They need one that is built on secure, stable foundations and that is open to serious cross-party working.

When we look at how we get the rural economy growing, it is really important that both land-owning farms and tenant farms in particular can continue to employ people and that there is money going out of those farms into the local economy. I have spoken to my constituents: they have had to take certain crops out of production to grow those that need less manpower. They would have employed people to work those fields or work that livestock, but they have been forced to change by often badly designed initiatives from DEFRA, and we need to work cross-party to ensure that those initiatives are better designed in future. They have been forced into those measures that, over the course of many years, slowly bring their workforce down and lead to less money coming into the local economy. In his response, I hope the Minister can ensure that the Treasury hears the pleas of rural communities. This issue is genuinely a concern across parties, and my constituents are very concerned about the ongoing removal of prime agricultural land from food production.

[Dr Rupa Huq (in the Chair)]

I remind Members to bob if they wish to make a speech. We will then calculate whether we need a time limit.

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[Patrick Spencer (Central Suffolk and North Ipswich) (Con)]

It is a pleasure to serve under your chairmanship, Dr Huq. I join in the tributes to my hon. Friend the Member for Gordon and Buchan (Harriet Cross) for securing this important debate. Like many Members, I am motivated to engage in it because I represent a rural constituency that is made up of many small and large farm holdings.

Without making this sound like my maiden speech, Suffolk is a beautiful rural constituency with a stunning landscape. It is known for its contribution to our food system, and it is home to many market towns where family-owned butchers, bakers and grocers source their produce from local farms. Even breweries do so. Adnams Southwold is in the next-door constituency, but it sources all the ingredients for its famous beers and other products from farms in the local area. One in seven jobs in Suffolk have some relationship to the food production industry. One only has to go to the Suffolk Show to see the importance of farms, farming and agriculture to our local economy. As a result, we have to take seriously the livelihood and financial sustainability of our farms.

It is worth remembering that farms are, as many Members have said, small businesses with tight margins and high capital costs. One way we could greatly threaten the long-term financial sustainability of farms, which are so integral to our economy and community, is to threaten the owners with a tax if they pass the family farm down to the next generation.

Let me explain why that is a bad idea. First, as with the taxation of many forms of capital, liquidity is being demanded from a resource that is fundamentally illiquid. As we have heard, the Government will fundamentally force many farms to sell off parcels of land, and when farm owners realise that it is hard to sell off small parcels of land, they will be forced to sell their whole holding. Don’t believe me? Eighty-six per cent. of respondents to a poll of farmers conducted by the Country Land and Business Association said that they would have to sell some or all of their land if they were faced with a new IHT obligation.

Secondly, those who can shoulder the cost of a new tax on their farm and business will simply have to reallocate a lot of their capital away from more productive sources of investment, such as cattle, machinery and labour. That has grossly negative economic and social consequences. My next-door neighbour is a relatively well-heeled farmer who also uses his land to provide a wedding venue and rental properties—that is something we have heard about. If we place farmers under more financial stress, they will simply have to close down those businesses. Let us not forget that many of those businesses provide really important jobs and incomes and, fundamentally, pay tax in our economy. We are taxing one half of the equation only to take away from the other.

Thirdly, the proposal will yield an irrelevant amount of money in the long run. We have all read the report from the Institute for Fiscal Studies that says that agricultural relief costs the Exchequer £400 million a year. To put it bluntly, I know that many people in the Treasury and Labour Members see landowners as rich rent seekers who invest in property to avoid IHT. But let us look at the contribution that people such as James Dyson have made to our food production industry by incorporating technology and environmental standards into the sector, or at the incredible impact of the Grosvenor group in restoring peatland and moorlands in parts of Cheshire and Lancashire. That will have a hugely positive impact on wildlife numbers and carbon emissions.

If the Treasury genuinely believes that we should tax farmers in the hope that they will release land to housing and property developers—trust me, we are not going to solve the housing crisis by building houses on farmland in Suffolk. It will be solved by investing in units in towns and cities, where young people really want to live and where footfall already exists. Such an argument ignores all the positive impact that many farmers have made, and it completely neglects the thousands of small families who are not rich and who may be forced to sell their farm despite having tended to the land for generations. The imposition of a new tax on inherited land will have a sad impact on family-owned farms, of which there are too many in my constituency to name. Many have spoken in recent years of the increasing difficulty of running their farms in the current economic climate. They have to negotiate a labyrinth of new environmental regulations, a new post-Brexit payment system, an energy crisis that has pushed their costs through the roof, higher interest rates and increasing competition from abroad.

To remove agricultural and business relief from these small family-owned farms could push many over the edge. What a loss that would be to our economy, to our communities and to the many families who have owned, farmed and maintained their land for generations, and who will continue to do so for generations to come.

[Dr Rupa Huq (in the Chair)]

I call the first Front-Bench spokesperson: Will Forster for the Liberal Democrats.

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[Dr Rupa Huq (in the Chair)]

For His Majesty’s loyal Opposition, I call Nigel Huddleston.

VAT: Independent Schools

Rupa Huq Excerpts

Tuesday 8th October 2024 Commons Chamber

[Munira Wilson]

I thank my hon. Friend for that intervention. She is absolutely right to say that because only children with EHCPs will be exempt from the VAT charge, there will be the unintended consequence of adding yet further pressure to what is already a broken system. Indeed, a parent in my constituency has written to me along those lines to say that they now feel that they will have to go through the application process. So many parents and carers are forced to navigate a postcode lottery and wait months, as my hon. Friend said, to get the support that their children are entitled to.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

The hon. Lady is a London MP like me, and part of the problem is that the term “private schools” covers such a wide category and such a multitude of sins. Does she agree that this is also quite a London issue? I have an unusually large number of these schools, with 14 in my boundary—there were 15 a year ago but one has since closed. I know my hon. Friends on the Front Bench would be happy to meet me so I can feed in the comments that I hear at the advice surgery and when door knocking, which would take too long to recount right now.

[Munira Wilson]

I thank the hon. Lady for her intervention but I would gently say two things. First, I would not describe private schools as covering a “multitude of sins”. This is also not just a London problem. My hon. Friend the Member for Edinburgh West (Christine Jardine) who represents an Edinburgh constituency says that she has the highest number of private schools in the country. It is a nationwide problem, and the consequences have simply not been thought through.

Let me return to my point about special educational needs and disability. For many families, local state schools simply are not equipped to give those children the support they deserve. That is why, as we have heard, there are almost 100,000 children in independent schools who have special educational needs and disabilities but not an EHCP. That is tens of thousands of parents, not the super-wealthy, but carers, who are working hard and making tough choices so that their children can have the nurturing education they need.

Tax-free Shopping for International Visitors

Rupa Huq Excerpts

Thursday 7th September 2023 Westminster Hall

[Richard Thomson (Gordon) (SNP)]

It is a pleasure to serve under your chairship, Dr Huq. I take this opportunity to sincerely congratulate the hon. Member for The Cotswolds (Sir Geoffrey Clifton-Brown) not only on securing the debate, but on his persistence on this issue. The first time that he and I spoke at the same time on this issue was in a debate on 10 December 2020. I think he only had three minutes on that particular occasion—it was quite a well-subscribed debate on the future of the high street—so it was a great pleasure to hear him expand those arguments today because I am sorry to say that the essential logic of many of the arguments being made on that day has not changed. In removing tax-free shopping on 1 January 2021, the Treasury seemed to make two key assumptions. The first was that ending tax-free shopping would have no significant impact, or so it thought, on foreign visitor numbers or spend in the UK, whether in terms of choosing to come to the UK or spending once they were in the UK. The second assumption seemed to be that extending tax-free shopping to EU resident visitors would attract few additional visitors to the UK.

There has been lots of logic—not to say economic coherence—missing from some recent budgets, which we are all still paying the price for. However, even taking those Treasury arguments at face value, there is a logical flaw that the presence of tax-free shopping was not always necessarily about attracting additional visitors, although I believe that it does do that, but about not losing them to other areas. The main locations, according to the Treasury, that benefited from it were central London and Bicester Village. It is probably hard to argue with the volume of sales there, but, as has been said, many other locations around the UK benefited too, including many in Scotland. Of course, those were only the areas where sales were recorded, and it does not show the economic activity that otherwise might not have taken place if people had not been attracted here in the first place.

This is of particular significance on a couple of levels to Scotland, but particularly to rural Scotland, where tourism, hospitality, transport and the production of luxury clothing are significant contributors to the local economy. In addition, the whisky and spirit distilling industry is of great significance to not only the locations where it is based and the high-value employment that it creates, but the Treasury’s coffers in terms of the overall duties it pays.

We now have data to set against the Treasury’s theory, and the results are in. The data appears to indicate that lots of pent-up spend was available. US tourists are spending about the same in the UK in 2022 as they were in 2019. The Treasury says that is a sign of success in terms of tax receipts, but US visitors are now spending three times more in Spain, Italy and France than they were in 2019. The Treasury also forecast that only 50,000 additional EU visitors might be tempted to come to the UK if they could shop tax free, yet 170,000 UK citizens were claiming tax back from the EU in 2022, which is likely to rise to almost 400,000 in the current year. If we take that figure pro rata and apply it to the EU population, that 50,000 would be 2 million in 2023—we are missing out on 40 times the Treasury’s forecast in terms of people coming to the UK to spend. That real-life data seems to undermine the forecasts.

The impact is on not only retailers, but hospitality, travel and indigenous producers who manufacture the goods being sold in the first place. The usual reaction of many tourists on getting a VAT rebate is to go and spend it immediately where they are—I find that hard to believe, but who am I to argue with observed human behaviour in the real world? So there would be a double benefit, in that the Treasury would get most of it back. The result would be a double-whammy—not just to the Treasury, but to the retailers and producers of these goods. What we are really doing is simply exporting those sales to other countries; in fact, that seems to be one of the few areas where exports seem to be very much up as a result of the Government’s economic policies.

The hon. Member for The Cotswolds described the return of tax-free shopping as a Brexit bonus, but I part company from him there. As with the Windsor framework in Northern Ireland, it would only bring us back to the situation that we were all collectively in prior to Brexit and the Treasury decision. We could still offer tax-free shopping even as part of the European Union; Brexit ought to neither here nor there.

It is not as if the Prime Minister is unaware of the issue; he was still the Chancellor when the decision was taken. But he has certainly had a reminder during his time as Prime Minister. The firm Burberry was mentioned earlier. Gerry Murphy, the chairman of Burberry, was introducing the Prime Minister at a Business Connect event in April this year. He took the opportunity to deliver a few home truths in warning the Prime Minister of the somewhat perverse decision to remove VAT refunds, and said that that had hurt the economy. He said that it had

“made the UK the least attractive shopping destination in Europe”,

noting that virtually every other major destination still offers VAT refunds and that for Burberry the recovery from the covid-19 pandemic was much stronger in Paris, Milan and Munich—all, like London, prime locations for tourism. He called on the Prime Minister and Chancellor to rethink their spectacular own goal, warning that Brexit was acting in that regard as a drag on growth.

Given that Aberdeen airport is in my constituency, it would be remiss of me not to include a pitch for the impact that the issue has on regional airports. Shopping comprises about 45% on average of the revenues that regional airports take in. That revenue is absolutely vital in keeping airports going and route development for the benefit of the area. Aberdeen is, of course, synonymous with the oil and gas sector, so Aberdeen airport has a strategic importance out of all proportion to the area that it serves simply because of how it serves that location and those key industries.

I speak regularly with management at the airport. Every time I visit, they tell me that they are losing sales hand over fist—to Norway, Spain, the Republic of Ireland and France: all the locations to which Aberdeen has a direct air connection—because of the decision. In actual fact that spend should be taking place, providing employment in my constituency and allowing the airport to develop routes. It should also be allowing us to get an economic benefit that, although not directly connected, is tangentially related to the benefits that come from tax-free shopping, which can allow the economy to develop in so many other areas and enable wider connectivity to Europe and the rest of the world. The policy is very much to the detriment of not only the operation of regional airports such as Aberdeen but the surrounding tourist and business economy.

I will draw my remarks to a conclusion, but I say to the Minister that in an earlier exchange this week she undertook to make inquiries about a matter that I raised in the main Chamber. I was very pleased with that response and I hope that, in a similar vein, she will also look very favourably on the very reasonable asks made today by the hon. Member for The Cotswolds to encourage the Treasury to commission research to inform Ministers. That, hopefully, will lead them to a different conclusion about this matter.

[Dr Rupa Huq (in the Chair)]

For His Majesty’s loyal Opposition, I call the shadow Minister, Tanmanjeet Singh Dhesi.

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[Nickie Aiken]

I thank the Minister for giving way yet again. I am interested in what she says about a great British company such as John Lewis, which is based in my constituency, and its flagship branch in Oxford Street, which is also in my constituency. Does she agree that, if we are to encourage people back to places such as Oxford Street—the nation’s high street—those places have to have a great offering? They have to look good, be clean and have brilliant shops, and not so many of the candy stores and that type of retail offer, which we seem to have at the moment and which is really disappointing. Also, the Mayor of London has a huge role to play in ensuring that there is a tourism offer, and the current Mayor is letting down London.

[Dr Rupa Huq (in the Chair)]

Order. May I just say that we are straying from the subject matter, which is tax-free shopping? Also, when you say “you,” that means me. I did not do anything—it is “the Minister”.

[Victoria Atkins]

I hope to ingeniously incorporate VAT RES into my response to my hon. Friend. She is absolutely right that, although the advocates of the scheme place a great deal of emphasis on it as a tax lever to encourage tourists back to the United Kingdom, in reality tourists come to the UK to look at our beautiful architecture, visit theatres, visit wonderful historic locations, and—dare I say it—visit the Lincolnshire wolds and other places of great beauty around the country.

Credit Unions and the Cost of Living

Rupa Huq Excerpts

Tuesday 18th July 2023 Westminster Hall

[Dr Rupa Huq (in the Chair)]

I call Hannah Bardell to move the motion. I shall then call the Minister to respond. As this is a 30-minute debate, there is no opportunity for a winding-up speech.

[Hannah Bardell (Livingston) (SNP)]

I beg to move,

That this House has considered credit unions and the cost of living.

It is a pleasure to move the motion, Dr Huq. I am grateful to the Backbench Business Committee for granting this short debate and to the Minister for responding. I am sure that other colleagues will want to make an intervention along the way in this debate on the importance of credit unions during a cost of living crisis.

First off, I declare an interest as someone who saves and borrows with credit unions, including my own in West Lothian—the great West Lothian Credit Union. I start by paying a passionate tribute to West Lothian Credit Union, its chair, Nancy MacGillivray, and her team, who work and fight tirelessly to develop their services and support our local community through that local credit union. I also thank my own team for the work they have done to prepare for today and the work they do every day for our Livingston constituents throughout this cost of living crisis. I am sure all of us here in the House are very conscious of the pressures on our constituents and the work that our teams are doing for us—in particular Marcus, Yvonne and Adam, who have had a close hand in today’s preparations.

Similarly, I pay tribute to my constituency colleague Angela Constance, the Member of the Scottish Parliament for Almond Valley, and her team, who have worked closely and fought for our local credit union over many years. My hon. Friend the Member for Glasgow South West (Chris Stephens) was not able to stay for this debate, but he wanted me to mention the work that Pollok Credit Union does in his constituency and the fact that so much great work is being done by credit unions with affordable food larders and community supermarkets—particularly a programme in his Glasgow South West constituency.

The role that credit unions play in supporting hard-working families across Scotland and the rest of the United Kingdom during this unprecedented cost of living crisis is indisputable. Unlike the high street banks, credit unions are run and owned by their members and distinctly operate under a co-operative principle. While credit unions are a relatively new form of banking in historic terms—they were first established in the UK in the 1960s—their founding principles of mutual co-operation and collective benefit were born of the friendly society movement of the 18th century.

Credit unions even predate the creation of the welfare state. My own grandparents were active members in the co-operative movement in West Lothian and beyond, and its importance in our communities is a long-held tradition. As we become increasingly globalised and vested interests creep further and further into our lives, the role of credit unions and co-operatives is increasingly important and potentially under threat.

The formation of the first credit unions in the UK was inspired by those in Ireland. The first recorded credit union in the UK was formed in 1960, in Derry, Northern Ireland; that union now has over 30,000 members. In Scotland and in other parts of the UK, several credit unions were established by immigrants who came to the UK with very little, but simply wished to tackle the inequalities and the financial hardship of others—what a worthy cause. Over the last 50 years, credit unions have grown to provide loans and savings to more than 1.2 million people across England, Scotland, and Wales. I am incredibly proud of West Lothian Credit Union and in awe of the work that it does in supporting my community. I have seen that first hand, and once again pay tribute. It offers a range of services, from banking to funeral plans. Its services are available to all those who live or work across West Lothian.

As colleagues will know, credit unions are regulated by both the Financial Conduct Authority and the Prudential Regulation Authority. The objectives of all credit unions are simply this: to promote thrift among their members by the accumulation of their savings; to create sources of credit for the benefit of their members at a fair and reasonable rate of interest; the use and control of members’ savings for their mutual benefit; and the training and education of members in the wise use of money and the management of financial affairs.

Those objectives may sound simple, but many of the high street lenders and other financial service providers would do very well if they simply applied the same ethical standards. Not only would they be better viewed by the public, but they would be able to act in the public interest—rather than for private profit, as we so often see. Credit unions work with many employers to set up payroll saving schemes for their employees. Many credit unions operate school credit unions, encouraging a savings habit among young students, as well as giving them life skills in operating a cash collection. My own credit union has done fantastic work in my constituency.

These are fantastic initiatives that help foster better relationships between individuals and their employers. They also help create greater educational awareness about the importance of money for young people. Despite those successes, more employers could be encouraged to participate in payroll schemes for their employees. Similarly, operating school credit unions can be a costly process for which limited funding is available, and I hope the Minister can give some thoughts on that. There is a clear need to provide better support to our children and for financial education to be done not just by banks. It is one of many ways we should be doing more to ensure that every child has the best opportunity in life.

We are already seeing change for credit unions. For instance, the community banking platform Engage has partnered with 10 credit unions to deliver its faster payment service to nearly 100,000 customers. That is a great example of how technology can help, and I note with interest the article shared by Electronic Payments International. Sofia Dogan, CEO of Kingdom Community Bank, based in Glenrothes, highlighted that the cost for its service was less than 50% of the cost that its bank was preparing to charge and that payments could now be sent to members’ accounts in minutes. The Bank of England’s latest report in April shows that the number of adult members of credit unions in the UK has risen to an all-time high of 1.98 million. The starkest increase was in loans to borrowers, which has jumped by a staggering 18.9% to £785 million last year in England alone.

Oral Answers to Questions

Rupa Huq Excerpts

Tuesday 20th June 2023 Commons Chamber

[Victoria Atkins]

I know that you like Ministers to answer briefly, Mr Speaker, so, if I may, I will answer my hon. Friend’s first question now and respond in writing to his question about the Barber review.

My right hon. Friend the Chancellor made employment one of the four Es in his drive for growth in the spring Budget, and we are working closely with the Department for Education to invest in exactly the way that my hon. Friend describes. That includes investment in free courses for jobs, which enable people to study high-value level 3 subjects and gain free qualifications, and employer-led skills bootcamps in high-growth areas—a phrase that I never thought I would find myself uttering—which, apparently, involve sectors such as digital, and are available to those who are either unemployed or in work and wanting to retrain.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

Food banks, playgroups and warm spaces are among the services provided by mosques, temples, synagogues and churches for all our constituents to help them cope with the cost of living crisis, but many of the buildings are creaking and falling apart. Will Ministers consider extending Gordon Brown’s policy of VAT relief on building works for listed places of worship to all such places, to recognise their role in providing social good and to alleviate the pressure on multiple systems?

[Victoria Atkins]

I thank the hon. Lady for raising an important point. There has been an incredible outpouring of support across communities—not just in religious communities, but at village and town halls around the United Kingdom—in an effort to help people with the cost of living pressures that we face in the winter. The picture is quite complicated, but perhaps I can write to the hon. Lady with a fuller response to her question, because I want to do it justice and I know I will get in trouble with you, Mr Speaker, if I do so now.

Oral Answers to Questions

Rupa Huq Excerpts

Tuesday 20th December 2022 Commons Chamber

[James Cartlidge]

Few colleagues put a question about inflation more eloquently than my hon. Friend. He makes an interesting suggestion. The support we have put in place has come through a variety of mechanisms, such as direct support for our constituents to help with cost of living and the energy price guarantee. He asks about how we ensure that that reduces inflation; the key point is that the OBR has confirmed that because of the energy price guarantee, the peak of inflation will be 2.5% lower than it would have been. That shows that our support is not only making a difference to our constituents this winter but is reducing the underlying cause of inflation, and that is in the best interest of the whole of the United Kingdom.

[Dr Rupa Huq (Ealing Central and Acton) (Ind)]

I am sure that like me, Mr Speaker, you long for the days of cool Britannia under a Labour Government. Touring musicians and performers are now hamstrung with restrictions and red tape because of the Government’s botched Brexit deal. We need a Christmas miracle, don’t we? When will the Government accept that this as a problem, and what are they doing about it?

[Victoria Atkins]

I hope that, in the spirit of Christmas cheer, the hon. Lady will accept that the trade and co-operation agreement is the world’s biggest zero-tariff, zero-quota trade deal. It provides a strong base for UK businesses to trade with the EU. We continue to support businesses trading with the EU, as well as helping them seize new opportunities with fast-growing economies around the world through our free trade agreements.

Financial Services and Markets Bill

Rupa Huq Excerpts

Report stage
Wednesday 7th December 2022 Commons Chamber

[Andrew Griffith]

My hon. Friend makes another important point, and I fear we are in danger of previewing the debate that we shall have this afternoon. When we talk about access to cash, we are not just talking about withdrawals; we are also talking about the deposits that are so vital. If our small businesses in particular are to continue to take cash, they need to be able to deposit that securely, safely and conveniently.

[Dr Rupa Huq (Ealing Central and Acton) (Ind)]

I just want to broaden the debate from ATMs to bank hubs. These were promised as a panacea for towns where the last bank has gone, such as Acton. It is not just about rural communities. Acton was one of 10 places that were promised a bank hub last December, but nothing has happened. There is a lack of will, and they are under-resourced and voluntary. Perhaps there is an argument for more regulation to make them happen, because The Daily Telegraph and the Daily Mail were saying in the autumn that none of these—zero—has happened, but I understand that since then two of them have. In the meantime, Acton is a cash desert. In 2018 we lost our post office, never to be replaced. What advice does the Minister have for me? How can he compel that bank hub to open?

[Andrew Griffith]

The bank hub initiative, just like the new voluntary initiative on LINK cash machines, has an important role to play. Frankly, these initiatives have started relatively recently, and as well as making sure today that we get the right balance in statute, we also need to see them delivered. I will take that case forward for the hon. Lady, and I will write to her. The bank hubs programme is now being deployed at pace. My hon. Friend the Member for Totnes (Anthony Mangnall) boasts of his bank hub, which I suspect will not make the hon. Lady delighted, but it shows that they can deliver, and that is what we want.

I will clarify for the record what we are saying, if I may. Under the Bill, the FCA, when acting to ensure reasonable access to cash, has to have regard to the Treasury’s policy statement in this area. That is the statement that will set out from time to time the Government’s position on matters such as cost and location, and the FCA will have to have regard to that when setting the detailed prescriptive regulations.

That gives time—I am putting the industry on notice—for those industry-led schemes to prove that they can deliver, and to ensure that the Government have a robust regulatory framework: a belt-and-braces framework. I believe that is the right and flexible way of dealing with the matter, rather than right now locking it in statute for all time. I will ensure that we reflect the House’s views on that when we craft the policy statement.

Downing Street Christmas Parties Investigation

Rupa Huq Excerpts

Thursday 9th December 2021 Commons Chamber

[Michael Ellis]

The hon. Gentleman should wait for the scope of the investigation, which will be made clear in a document laid in the Library of the House later today.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

When, in early December last year, Kay Burley of Sky was busted for having a birthday party in then tier-2 London, she was contrite and accepted a six-month ban from the airwaves. In the interest of consistency, we saw a similarly distressed Allegra Stratton walk the plank yesterday. Will any male members of the Government or prominent public figures face a similar six-month ban? If not, why are women always the fall guys?

[Michael Ellis]

I do not recognise the hon. Lady’s characterisation of the matter. We have made it clear that there will be disciplinary action if the Cabinet Secretary uncovers any cause for such action.

Oral Answers to Questions

Rupa Huq Excerpts

Tuesday 7th December 2021 Commons Chamber

[Kate Osamor (Edmonton) (Lab/Co-op)]

3. What recent steps he has taken to help reduce economic inequality.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

10. What recent steps he has taken to help reduce economic inequality.

[Richard Burgon (Leeds East) (Lab)]

20. What recent steps he has taken to help reduce economic inequality.

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[Rishi Sunak]

If Londoners are worrying about the state of their transport system and who is responsible for it, I think we all know, and those problems were there before coronavirus. What we are responsible for is making sure that people have access to high-quality work, and I reassure the hon. Lady that we are investing in our plan for jobs right across the country. I have visited jobcentres in London. We are helping to get people into work and helping them to get the skills they need. I hope that I can work with her local area to bring that unemployment rate down.

[Dr Huq]

Covid has accelerated the decline of bank branches, so Acton now has none and no cashpoints, because our post office has gone. The resultant cashless society has hit constituents hard, from the chap who came to see me who has come a cropper because of Trump’s sanctions regime—he has had all his accounts frozen—to my son and his pals who cannot get a hot snack after school without plastic, to businesses that want to bank their takings. Will the Chancellor urgently look into this gross economic inequality that is hitting so many of the constituents of all of us?

[Rishi Sunak]

The hon. Lady makes a fair point; the Economic Secretary to the Treasury is doing work on exactly that issue. The Government have committed to bringing forward legislation, if required, on access to cash, but I would be very happy to look into the specific circumstances of her constituent. If she writes to me, we will do that.

Oral Answers to Questions

Rupa Huq Excerpts

Tuesday 2nd November 2021 Commons Chamber

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

I congratulate my hon. Friend and fellow Members representing Stoke-on-Trent on the £56 million their city was awarded in the first round of the levelling-up fund, winning not one but three bids to fund regeneration projects across the city, delivering new homes, community facilities, and office and hospitality space. She makes an important point about funding grassroots community capacity. I assure her that the UK shared prosperity fund, which is worth over £2.6 billion, will allocate funding across the UK. Further details of the fund will be set out later this year.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

The women-run Acton firm Fashionizer, which makes uniforms for hotels, diversified into mask manufacturing during the pandemic. The firm is now getting back on its feet, but the order book is just a third of what it was, so those working there ask the Chancellor if he could please extend the rate relief for the hospitality industry to those who supply hospitality, including food and laundry services, some of them exclusively. They have given me a few of their masks for you, Mr Speaker, for the Chancellor and for anyone who wants one. I think a few of the hon. Members on the back row of the Conservative Benches could do with them.

[Rishi Sunak]

I commend those at the hon. Lady’s business for what they have done through the pandemic and beyond with the manufacture of masks. We have moved out of crisis phase now, so our interventions to support the economy are broader in scale, but I am confident that the measures we are taking to invest in infrastructure, innovation and skills will lead to economic growth and benefit her businesses, not just the one she mentioned.