Horizon: Compensation and Convictions

Debate between Rupa Huq and Kevin Hollinrake

Monday 8th January 2024 Commons Chamber

[Kevin Hollinrake]

I thank my hon. Friend for her question and her work on behalf of Nichola Arch, whose case is one of the most prominent in this scandal. She is right to say that assessing loss is complicated, which is exactly why I work with officials. I agree with her description of them as excellent; they are just as passionate about delivering compensation as Members of this House. We are working on a daily basis.

My hon. Friend is also right to say that the fixed-sum award for overturned convictions simplified things significantly. A significant number of people have full and final settlements on an overturned conviction—30 people have chosen that route so far. But I hear what my hon. Friend is saying about a simplified process in other areas of compensation. That is certainly something we are working on and looking at wherever we can.

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

ITV and the power of drama deserve our praise for galvanising Government action far faster than the questions I have been asking here since 2020. As well as Mr Bates there was Mr Patel, who was forced to give a false confession to avoid prison. He had the humiliation of attending the graduation of his son, my constituent Varchas, while electronically tagged. Despite Mr Patel’s conviction having been quashed in 2020, he has had zilch compensation and suffered huge ill health. Can the Minister sort that, make sure that heads roll and make good on Paula Vennells’s promise to me in 2018, when she pulled the plug on Acton crown post office, that we will get a post office again? We are still waiting.

[Kevin Hollinrake]

I thank the hon. Lady for her question and work on behalf of Mr Patel. If Mr Patel’s conviction was overturned in 2020, he should have received £163,000 in interim compensation, which was made available to anybody with an overturned conviction. He can also access two routes: either a fixed-sum award of £600,000 or the full assessment route. He can make a decision based on whatever level of compensation he and his advisers think he is due. One route is undoubtedly quicker than the other due to the complex nature of assessing claims. I agree with the hon. Lady about people being held accountable, as I said in my statement and in response to other Members. Picking up her point about Acton post office, Paula Vennells does not have much influence over that any more, but we can ask questions about that on the hon. Lady’s behalf.

Oral Answers to Questions

Debate between Rupa Huq and Kevin Hollinrake

Thursday 30th November 2023 Commons Chamber

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

7. What steps she is taking to encourage businesses to open outlets on high streets.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

In addition to small business rate relief, under which businesses with a rateable value of less than £12,000 pay no business rates whatsoever, in his autumn statement the Chancellor announced a further business rate support package, worth £4.3 billion over the next five years, to support small businesses and the high street.

[Kevin Hollinrake]

I thank the hon. Gentleman for his question and welcome him to his place in the House.

Of course, we are very concerned about the high street. The pressures on the high street are largely caused by changing consumer habits, but the Government have stepped in to ease pressures, such as through the £20 billion energy bill support scheme and the £17 billion business rate package.

The hon. Gentleman talks about completely scrapping the current business rate system, which Labour has committed to do, but it is incumbent on Labour to set out how it will replace the £25 billion that business rates currently add to the Exchequer. What is the solution? It is not right for him or others simply to say they will scrap that £25 billion without setting out how they will replace it.

[Dr Huq]

The vanishing of Debenhams, Wilko and Paperchase has left huge holes in our town centres— I have lost a Wilko in both Ealing and Acton. Analysis shows that the incentivisation of out-of-town retail is the culprit. Labour has a five-point plan to revive our high streets, putting communities first. What are the Government doing about all this?

[Kevin Hollinrake]

I do not accept that, although out- of-town shopping can put pressure on the high street. Local authorities have to be very careful when they give planning consent for out-of-town shopping centres that could put pressure on the high street. That is clearly an important part of the planning process, but it is not the responsibility of central Government, of course. I would be interested to see that five-point plan, but if it includes the scrapping of business rates, which raise £25 billion, I ask the Labour Front Bench team once again—I have yet to receive an answer—where is that money coming from?

Finance Bill

Debate between Rupa Huq and Kevin Hollinrake

Report stage & Report stage: House of Commons & Report: 1st sitting & Report: 1st sitting: House of Commons
Wednesday 1st July 2020 Commons Chamber

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

I rise to echo some of the points that the right hon. Member for Sutton Coldfield (Mr Mitchell) opposite made about new clause 33. Although it is not being pressed to a vote today, I hope that the Government will bow to the inevitable before long and will heed our calls. A few of us on the Opposition Benches will be talking about that.

I echo the disappointment of my right hon. Friend the Member for Barking (Dame Margaret Hodge) and the hon. Member for Amber Valley (Nigel Mills), with whom I co-chair the all-party parliamentary group on anti-corruption, that they could not be here. We have had the rug pulled from under our feet with the hybrid Parliament, but let us not get into that; that is another debate for another day.

If we are talking build, build, build, the new clause would help towards rebuilding our economy post-coronavirus and rejuvenating our high streets, which have long felt clobbered by online competitors even before all this crisis. The new clause would do that by creating tax transparency for multinational giants, responsible investment and the closure of loopholes that enable financial flows that may not quite be illegal, but many would call pretty immoral.

The principle of country-by-country reporting, whereby multinational monster companies file public reports on their dealings country by country and then pay their dues, getting rid of the secrecy around their affairs and ensuring that tax is paid at the right time and in the right place—where the profits were made—has already been adopted by the OECD as an ambition. If that idea brings on a sense of déjà vu, it was passed by this House back in 2016 as the “show me the money” amendment tabled by Caroline Flint.

The issue is about fundamental fairness. When considering what the state of our public finances will be post-pandemic, we should be careful not to burden ordinary taxpayers with the whole tab, particularly when the tech giants have enjoyed state bail-outs. We have heard about high street decline, and the fact that the measure would rake in billions means it is needed now more than ever.

It cannot be one rule for hard-working UK businesses that play by the rules and pay into our Exchequer, and another for multinationals that can pretty much pick and choose what they do and pay minimal tax by shifting—sorry, “reallocating”— profits around the globe to low-tax dominions, where they might effectively just have a PO box to demonstrate a presence, all to save themselves cash that could be spent on our public services.

New clause 33 would mean that companies would have to publish how many employees they have, how much profit they make and their assets in each dominion. How is it, for example, that we have Amazon employees in warehouses here—some of them are our constituents—but its UK subsidiaries paid just £5 million of tax in the UK last year? We know that Amazon makes billions and billions. My small businesses in Acton, Ealing and Chiswick do not have the option of routing things through the Cayman Islands under the practice of tax haven abuse.

Since 2016, sadly there seems to have been a kind of stalemate. The principle is well-established and agreed, even back to David Cameron’s crusade for anti-corruption at the G8 in 2013, but there has been complete timidity from Government to act. A series of replies to written questions discuss how multilateral action is needed. The Government are basically saying, “I will move if you do”, but what good is having something on the statute book if it is not enacted? People will remember the Marcus Rashford affair the other day and they will see another U-turn here. I am hoping the Government can prove them wrong.

The new clause would make the principle a reality in relation to the digital services tax applying to the Facebooks, Googles and Amazons of this world. It is wrong that pound-for-pound, relative to what they make, they pay less tax than any of our constituents or we do. No market-sensitive data is included in the reporting format, so tech giants have nothing to fear.

The world has moved on from 2016, which was two Parliaments or three elections ago, although elections take place every other year now—I have had three in my short time here. Although the coronavirus rescue packages were entirely the right thing to do, it looks at the moment like the bill is going to have be footed by our children’s children’s children, who will still be paying it off. If we are serious about levelling up, this new clause would provide a level playing field for honest British businesses with the multinationals that can bypass proper procedures with their tentacles spreading everywhere around the world.

[Kevin Hollinrake]

The hon. Lady has said that the Government are being timid. Does she accept that it is not timid to introduce a digital services tax in the teeth of opposition from our largest trading partner, the United States? Much as I support new clause 33 in principle, the digital services tax is a very bold move.

[Dr Huq]

The hon. Gentleman is on the all-party parliamentary group and I know that he secretly agrees. Perhaps he is not saying so because his Whips are listening. The EU is our biggest trading partner. For many years before I came here, I used to teach and would sometimes say, “Could do better.” Yes, we support the measure, but we could do better, and this is a glaring example of an issue that is in need of urgent rectification.

The covid-19 crisis necessitating Government help for industry has, I hope, reversed the trend towards laissez-faire economics. It has been remarked by many people that we are missing a trick. We could bring some of these unscrupulous companies—we can call them companies with clever accountants, if Members prefer—to heel. It seems wrong that the Bank of England has made £1 billion of loans available to the German chemicals giant BASF, which has transferred profits to Malta, the Netherlands and Switzerland in order to avoid tax. There are countless other examples, but because these things are shrouded in secrecy, that is the example I am able to give. The easiest way to do it is by enacting what is already agreed, and we do that via the digital services tax, which the hon. Member for Thirsk and Malton (Kevin Hollinrake) hails. These companies could be given time to make adjustments, and the very fact of transparency, rather than overly punitive measures at the start, could shame them into action and make them see sense.

We face a double whammy of the covid financial crisis and uncertainty outside the EU. The Chancellor said, “Whatever it takes”. Those headquartered in the UK already submit all this information to HMRC and to other relevant tax authorities. All we are asking is that we can all see it and that there is full and frank disclosure—including for investors and other stakeholders, who increasingly want to know these things—and then we can see where each company has its economic bulk or footprint. Making public what already exists would be low cost and straightforward. I see no downsides to this. The only people who oppose the proposal are those who usually abuse the rules. I understand that the tax havens of Jersey and Luxembourg are not too keen on it.

We keep being told that, post-virus, things cannot go on as before and, “We shouldn’t waste a good crisis, should we?” Ensuring that very large companies publicly reveal revenue and tax information could be something on which we lead the world, and we can still apply pressure on the OECD and G20—the two are not mutually exclusive. We cannot wait forever for action from the EU, because we are no longer a member of that organisation. Time and again, we were told by the leavers that we could be an independent nation and we were reminded of the sovereignty of Parliament. This proposal has wide cross-party support.

Letting Agent Fees (Tenants)

Debate between Rupa Huq and Kevin Hollinrake

Wednesday 6th September 2017 Westminster Hall

[Kevin Hollinrake]

I like to think, although I have no definitive evidence, that a dynamic market has been created. New entrants have come into the market that are willing to work harder and provide different, more efficient services. Some agents will find it difficult and there will have to be job losses, but hopefully those jobs will be transferred to new businesses that come into the market and compete. We should see this as a definite challenge, but also as an opportunity within the sector.

One of the biggest concerns is the unintended consequences, particularly for tenants on low incomes. Agents are allowed to charge tenants for very important services such as references and inventories, but in future they will not be, so the costs will be borne by the letting agent. When faced with a tenant whom we might call borderline—somebody who is on a lower income, who might fail a credit check or who is on housing benefit—the letting agent may not want to carry out a reference check, if they will not get paid for if the tenant fails it, so they may plump for a safer bet. This may result in some tenants being unable to rent the properties they seek.

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

I draw the hon. Gentleman’s attention to a quotation from an article in The Daily Telegraph on 27 August. This touches on the point that my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) made about young people. Does he agree with this?

“If you are under 35, it’s likely there is little chance of you ever owning your own home. No doubt you are also fed up of living in overpriced rented accommodation, often of a standard that can best be described as a dump.”

Is this not part of a wider malaise? Our leader would be proud of that article, since a lot of it seems to be pilfered from the 2015 Labour manifesto.

[Kevin Hollinrake]

Well, nobody has a monopoly on the best ideas. The Government absolutely believe in the power of market forces and want to ensure that they apply universally. However, I do not recognise the hon. Lady’s description of the private rented sector. There are 4 million properties in that sector in the UK, of which about 1 million—a significant number, but a minority—are considered substandard. I will move on later in my speech to how we might deal with properties of substandard quality and condition, but I do not recognise them as characteristic of the industry, of landlords or of agents.

[Dr Huq]

I neglected to say that the article I mentioned was written by the Minister’s former colleague Rob Wilson, the former MP for Reading East who was defeated at the last general election. He writes that the Conservatives should get a grip on housing if they are ever to win again.

[Kevin Hollinrake]

That is exactly the purpose of this legislation. I will move on shortly to how we tackle substandard properties, but the point is that they are a minority. The hon. Lady characterises rented properties as universally substandard; I do not accept that at all. When I started in the industry 30 years ago, the only homes for rent in the middle of York were shabby, damp, dark terraced houses. There was very little choice in the private rented sector. Since then, the private sector has delivered excellent accommodation throughout the country. Yes, there are difficulties, including rogue landlords and rogue agents, and we need to deal with them. The Government have legislated and are legislating on that basis.

Neighbourhood Planning Bill

Debate between Rupa Huq and Kevin Hollinrake

2nd reading: House of Commons & Money resolution: House of Commons
Monday 10th October 2016 Commons Chamber

[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is a pleasure to speak in this debate and to follow my hon. Friend the Member for Eddisbury (Antoinette Sandbach). I fully support the provisions of the Bill, and I congratulate Ministers on giving people unprecedented power over planning. It is clear that this is a power not to limit development, but to decide where properties will go and what infrastructure is required. It is a power to decide how it looks—design is a key element in persuading local communities to support new housing in their area.

I welcome the Bill’s giving more weight to neighbourhood plans, which, as detailed in clause 1, will be effective earlier in the process. However, there is a conundrum, as colleagues have mentioned, but, as is not uncommon in the House, I will mention it again. A neighbourhood may have an effective neighbourhood plan that works with the numbers given by the district in its local plan, but it may not be able to demonstrate a five-year land supply. In those circumstances, would it not be appropriate to give full protection to a neighbourhood that delivers those numbers within the overall context of the local plan? That would be a great incentive for local communities to develop a neighbourhood plan and deliver the extra houses that are important to our communities and our national economy.

The neighbourhood planning process is dealt with in clause 5. Local authorities can give help, support and advice to neighbourhood planning steering committees. Some local authorities are less keen than others on neighbourhood plans, and regard them as an encumbrance. Would it be possible to provide some formal training, perhaps delivered centrally? I was delighted when my hon. Friend the Member for Henley (John Howell), who has been such an advocate of neighbourhood plans, came to my constituency to talk to local steering groups about how to develop them. As a result of his intervention, we now have some neighbourhood plans back on track.

I also think that small and medium-sized enterprises should be given more help. As we know, SME developers used to build 100,000 houses a year, whereas today they build about 20,000. They are critical to the supply element of the equation. I understand that the idea of extra financial support for SMEs has been mooted in connection with the autumn statement, because lack of finance constitutes one of their biggest difficulties when it comes to developing new homes, but another of their difficulties relates to land, and finding suitable small sites. The whole planning system seems to be stacked against SMEs. It is far simpler to build houses on allocated land than to build them on the windfall sites on which SMEs tend to develop them, but such sites are few and far between.

SMEs are important not just in terms of the number of houses that are delivered, but in terms of their contribution to local communities. They employ local people: local suppliers and local apprentices—SMEs account for a much higher percentage of penetration of apprenticeships per completion than larger developers—and local consultants as well. There are plenty of good reasons for the provision of more small sites that would be suitable for SME house builders, and there are a number of ways in which we could do that. It is frustrating that one of the local authorities in my constituency concentrates all its housing on large allocated sites, rather than spreading the load around the towns and villages for the purpose of not just sustainable development but sustainable communities.

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

The hon. Gentleman has mentioned sustainable communities in the context of planning. Does he agree with Dame Alice Hudson, the head teacher at Twyford Church of England High School in my constituency? The school wants to expand, but feels that it is stymied by planning legislation. It has identified the site for a badly needed new high school, but at present there is opposition because of housing that will come with it. Dame Alice says that there must be a way of helping the school to provide more performance and other facilities for community use and public benefit. Does the hon. Gentleman agree with me, and with my constituent, that there should be more joined-up thinking?

[Kevin Hollinrake]

I definitely agree that there should be more community engagement. However, although many people in smaller villages and towns want more development, the policies of local authorities prevent that from happening, which is entirely counter-intuitive. The lack of new development puts schools, shops and public houses at risk. I wonder how we can influence local authorities and encourage them to spread the load around our smaller communities as well. Alternatively, could not a percentage of one of the larger sites—10% or 20%—be allocated to SME developers, so that they could meet some of the needs of larger communities?

Those are some thoughts for the new Housing Minister. SMEs are critical to the successful delivery of the houses that we need in the United Kingdom. However, I am happy to support the measures in the Bill and the ideas behind them.