Contingencies Fund (No. 2) Bill

Saqib Bhatti Excerpts

2nd reading
Thursday 11th March 2021 Commons Chamber

[Saqib Bhatti (Meriden) (Con) [V]]

I refer Members to my entry in the Register of Members’ Financial Interests. I also take note of your indication to limit our contributions, Mr Deputy Speaker. I could speak for hours on the Bill, but I will refrain from doing so.

I want to speak in favour of the Bill because, quite frankly, if there was ever a time when we needed a contingencies Bill it would be during a pandemic, and we are still in a pandemic. As the Financial Secretary said, for those members of the public who will be watching today, the Contingencies Fund Act 2020 enabled Government Departments to increase their percentage of spending at a time when the country needed it most. It was vital to make sure that the Government could act in a timely manner to safeguard the people of our country.

This is, of course, a contingency. It is not additional spending. It is there to ensure that Departments have access to funds if needed. If there is one takeaway from the past 12 months, it is that we should be prepared for every eventuality. It is appropriate that the percentage of the total supply expenditure is reduced to 12%, as opposed to the 50% it was last year. Of course, last year, when the previous Bill was passed, we knew we had a crisis, but it would have been near impossible to estimate the full cost of Departments’ needs at that time.

Today, we know more. We have a world-leading vaccination programme, which means we have vaccinated over 22 million people. We know that infection rates are falling and, thankfully, the Prime Minister has laid out a road map as to how the economy will open up. In the light of that, it is correct to reduce the contingency need while not yet returning to the normal 2%. We are, after all, not in normal times, so the normal 2% cannot apply. I would go further. This Bill, in my view, represents strong leadership, as the previous one did at the start of the pandemic.

We should not forget what the previous Bill allowed Government Departments to do. The urgent procurement of contracts allowed the Government to be swift in their response. It allowed us to deliver 32 billion items of personal protective equipment—32 billion, Mr Deputy Speaker—and 22,000 ventilators, when at the start of the pandemic there was an acute need. Those were quite literally matters of life and death. In such instances, the Government have but one duty: to take every possible measure to provide security and safety for their citizens. Since then, we have also completed 96 million tests. That is a phenomenal achievement and we should not downplay that.

As we look to the Bill, it is correct to think about how the resources will be applied until the supply and appropriation Bill is voted on in this House. The Chancellor last week set out a characteristically world-leading Budget, ensuring, to name just a few: the furlough scheme, which has been a lifeline for so many, continues until September; more money for apprenticeships and restart grants to get our worst-hit businesses back up and running; and the extension of universal credit. There are also infrastructure spends across the country, which are a testament to my right hon. Friend’s focus on the next stage of dealing with this pandemic. As we emerge from the public health crisis, we must look to the economic recovery stage.

Accountability and transparency matter, of course, and the Bill does not take away the usual mechanisms that have been in place for ensuring that expenditure is met through the contingency fund and that it is scrutinised. Advances made in this way are presented in the usual way in the estimates booklet and the memorandums that Parliament can scrutinise and vote on.

To hinder the Bill would in my view seriously hinder the Government’s response in dealing with the pandemic. It would risk undermining the measures by the Government to help those who need our urgent support. That is why I am supporting the Bill.