Oral Answers to Questions

Saqib Bhatti Excerpts

Tuesday 7th December 2021 Commons Chamber

[Rishi Sunak]

It is simply not right to say that we have forgotten anyone. We remain committed to supporting all the most vulnerable in our society. I have mentioned previously the various different mechanisms that we have to help people with energy bills, and indeed the recent increase in the local housing allowance.

The hon. Lady says that we talk a good game. Those of us on the Government Benches believe fundamentally in the power and ability of work to transform people’s lives. We want to make sure that people have great jobs, and we want to make sure that those jobs are well paid. The cut in the universal credit taper rate will ensure that there is a £2.2 billion tax cut for those on the lowest incomes, and we are insanely proud of that.

[Saqib Bhatti (Meriden) (Con)]

4. What progress his Department has made on supporting young people into high-skilled jobs.

[The Financial Secretary to the Treasury (Lucy Frazer)]

Through our plan for jobs, more than 100,000 young people have started kickstart jobs, including more than 9,300 in the west midlands, but that is not all that we have done. The spending review provides for investment of £1.6 billion in high-quality education, £554 million in the national skills fund, £2.7 billion in apprenticeships, and £60 million in the youth offer to help young jobseekers find lasting work.

[Saqib Bhatti]

Last month when I presented awards at the Crimson Academy apprenticeship awards event, I met some incredibly talented apprentices who were raring to go and get into the world of work. Will my right hon. and learned Friend join me in congratulating them, and will she confirm that apprenticeships are a great way for young people to obtain high-skilled jobs that can help to bridge the UK skills gap?

[Lucy Frazer]

I do of course join my hon. Friend in congratulating those apprentices. The Government are continuing to invest in high-quality technical education and to reform the skills system so that it is employer-led, to give young people the right skills and training to enable them to succeed in life. More than 100,000 apprentices have been hired under our new incentive payment scheme, 75% of whom were under 25. Skills boot camps are upskilling people into high-growth sectors, including the digital sector.

Oral Answers to Questions

Saqib Bhatti Excerpts

Tuesday 2nd November 2021 Commons Chamber

[John Glen]

The hon. Lady must have missed a number of measures announced by the Chancellor in the Budget last week in which significant investment was made to support families through the household recovery fund and support for women in particular to get back into the labour market, alongside a whole range of other interventions.

[Saqib Bhatti (Meriden) (Con)]

One issue concerning me at the moment is the lack of access to cash in the north of my constituency, which suffers from significant degrees of inequality. I was pleased to be at the opening of Kingshurst post office, which will restore some cash services, but the issue remains a problem as retail banks reduce their estate. Does my hon. Friend agree that shared banking hubs are a good way forward? Will he highlight to the House what work is being done to increase access to cash?

[John Glen]

Banking hubs will absolutely be a part of the solution, alongside a whole range of other interventions. The Government have committed to legislate on this matter, but in the meantime, I am very hopeful that industry will come forward with meaningful proposals for a range of options to deal with the declining use of cash and ensure access is available everywhere.

Contingencies Fund (No. 2) Bill

Saqib Bhatti Excerpts

Committee of the whole House & Committee stage
Thursday 11th March 2021 Commons Chamber

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

I cannot support the Opposition’s new clause 1 because, in my view, it would do nothing but introduce an additional layer of bureaucracy where, frankly, sufficient and robust transparency and accountability systems are already in place.

As I said on Second Reading, of course accountability and transparency matter. The Bill does not take away the usual mechanisms already in place to ensure that expenditure met through the Contingencies Fund is scrutinised. Requiring private sector procurement to be referred to the National Audit Office would do exactly what businesses cry out against time and again when it comes to procurement practices. They want less bureaucracy and less burden, not more unnecessary red tape that would hinder engagement from the private sector.

To me, the new clause speaks to the intent of the Opposition and their general attitude to the private sector. It does not recognise the crucial role that business has played over the last 12 months in helping to tackle one of the greatest public health crises of our times. It does not recognise the businesses that otherwise would have been shut down—Formula 1 teams such as McLaren, for example—that adapted their processes to make ventilators; the companies, such as Burberry, that retooled to make personal protective equipment; or the companies, such as the National Exhibition Centre in my constituency, that gave up part of their business to build Nightingale hospitals to ensure that the national health service was not overwhelmed.

The new clause does not recognise, either, the big pharma companies that came up with new drugs at unprecedented rates, using innovative methods that only the private sector can come up with to vaccinate and protect the most vulnerable in our society. Frankly, it is time that the Opposition recognised the role that the private sector played in overcoming this crisis. While it is not yet done, we on the Government side of the House certainly will not forget that role.

While I am on the subject of intent, I commend the Government for their aspiration to reform procurement rules. The Green Paper put forward by the Government puts value for money and transparency right at the heart of the United Kingdom’s procurement rules. The Government buy around £292 billion-worth of services from the private sector. Their proposed reforms will allow UK procurement rules to be more modern and flexible, allowing the Government to consider things such as social value, including economic, social and environmental factors.

These new measures will also allow competition for Government contracts under £4.7 million for public works and £122,000 for goods and services to be limited to small businesses, whether they are voluntary, community or social enterprises. Fundamentally, that will improve the quality of suppliers’ output, and it will also increase competition, ensuring that taxpayers get a better deal while our small and medium-sized businesses have greater access to Government procurement contracts.

That intent can only be applauded, in contrast to the Opposition’s desire to make the process clunkier, more difficult and less accessible.

On accountability, as has been said, Ministers cannot choose to use the Contingencies Fund. That is managed entirely by Treasury officials, and the accounting officer must ensure that advances are given in line with strict rules agreed between Parliament, the National Audit Office, and the Treasury. Such rules can be found in the Estimates Manual. Finally, business is and can be a force for good. We would do well to recognise that.

[Sarah Owen (Luton North) (Lab)]

I rise to speak in favour of the amendment tabled by the Leader of the Opposition, which hopes to improve the transparency behind emergency spending that we are being asked to sign off. When the Conservative party took office 11 years ago, it promised people transparency and responsible spending. The Prime Minister’s predecessor even told us that sunlight was the best disinfectant—could we not do with some disinfectant to rid us of the stench of cronyism right now?

One hundred and eight million pounds to a pest control firm to make PPE; £60 million on antibody tests that did not work. To top it off, a £37 billion test and trace system that at times did not test and did not trace. It was run not by clinicians or the NHS, but by a failed phone company executive, who just so happened to be one of the Prime Minister’s mates from the other place.

Cronyism, irresponsible spending and sweetheart deals that handed the public’s taxes to their mates are what this Government are all about—a £133 million testing contract to a Tory donor, £108 million to Serco, and a £40,000 pay rise to Dominic Cummings. Under this Government, someone who breaks the rules and fails at their job gets a pay rise; those who save people’s lives get a pay cut. If the Conservative party cannot be trusted to spend people’s taxes wisely, it does not deserve to serve our country.

The Minister asked for questions, and I am sure we all look forward to some answers. Will he tell the House why as much as £11 million was spent on the initial trial version of the NHS Test and Trace app before it was abandoned? Will he confirm whether he personally played any part in recommending contractors to the Government over the past year? We are often told by the party of Government that money cannot be found to feed hungry schoolkids, or that the healthcare heroes who looked after our loved ones during the pandemic cannot have a pay rise. We are told by Conservative peers that nurses should be grateful for the job security they have.

The public have a right to know how their money is being spent. Covid contracts handed out to Tory friends and donors have now risen to almost £2 billion. Such money could have provided free school meals to each of the 1.4 million children in poverty, including nearly 4,000 children in Luton North. If there is money for the Prime Minister’s mates, there is money to feed hungry kids. If we can find £30 million for the bloke down the pub, we can find money to give nurses, and every other healthcare worker, a pay increase.

Conservative Members will say there was no choice at the start of the crisis and that it was an emergency, as it was. However, there is always a choice. Instead of turning to established PPE providers from the UK safety industry, Ministers chose a deal that handed £30 million to the Health and Social Care Secretary’s mate from down the pub. That is a cruel and blatant failure by this Government. The Bill asks us to sign off up to £266 billion in emergency loans by the Government. That might be necessary, but it is unnecessary for such a number to go unchecked.

It is our job as MPs across the House to hold the Government to account. The public expect better and for us to spend their money properly, which is why Labour has tabled this amendment. We are not saying that the Government should not do everything in their power to help people in an emergency; we are saying that they must never forget whose money they are spending, and who they need to answer to in the end: the British people.

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.

Oral Answers to Questions

Saqib Bhatti Excerpts

Tuesday 9th March 2021 Commons Chamber

[Rishi Sunak]

I pay tribute to all those working on the frontline of our NHS and other public services. They are doing a fantastic job, and that is why this Government have supported the NHS with tens of billions of pounds of extra funding through this pandemic and will continue to do so. With regard to public sector pay, we set out a policy in November, but, given the situation, we were taking a more targeted approach to public sector pay to balance fairness and to protect as many jobs as possible. The hon. Lady will know that the NHS was exempted from that policy and NHS workers will receive a pay rise next year.

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

This morning I spoke to a roundtable of businesses from across the country, and there was much positivity for the restart grant and the business rates holiday, which will help to open up our high streets. However, many of the businesses I speak to still speak of the need for long-term reform of the business rates system, so will my right hon. Friend update the House on the outcome of the consultation that was carried out last year and what the long-term aspiration for business rates reform is?

[Rishi Sunak]

My hon. Friend is right to raise this important issue, as he has done with me several times on behalf of his local businesses. He is right that we are reviewing business rates. We are in the midst of that process. The next stage will be to publish all the consultation responses that we have received, which will happen shortly, and we will take forward the policy process over the course of this year. We outlined many options for potential reforms in the paper. I look forward to receiving from him some ideas on what the reforms might be. In the short term, we are providing a £6 billion tax cut in business rates, delivering a 75% discount on business rates for the vast majority of small and medium-sized businesses as they emerge from this pandemic.

Covid-19: Economy Update

Saqib Bhatti Excerpts

Thursday 22nd October 2020 Commons Chamber

[Rishi Sunak]

I am grateful to the hon. Gentleman for his comments. I would tell him that we will work very quickly with the Valuation Office Agency to calculate the value of those grants; we are just working through that detail. I hope to be able to provide him and all Manchester MPs with the figures as soon as possible, and we will of course release that funding as quickly as we have calculated the values.

[Saqib Bhatti (Meriden) (Con)]

On behalf of my constituents, may I thank the Chancellor for this comprehensive economic package? Clearly, he is a Chancellor who listens and I thank him for that. Will he join me in commending Andy Street, the Mayor of the West Midlands, who has campaigned passionately for further support? He is not a showboater; he just gets on with the job and gets things done.

[Rishi Sunak]

My hon. Friend is absolutely right. I am always grateful to hear from Mayor Andy Street. Andy has rightly put on the agenda the situation for businesses, especially hospitality businesses, in tier 2 areas, which my hon. Friend represents, and wanted me to be aware of what was happening. I am glad that today’s set of measures will make a difference to both my hon. Friend and Andy’s wider set of businesses and, I know, to many other businesses across the country.

Protection of Jobs and Businesses

Saqib Bhatti Excerpts

Wednesday 9th September 2020 Commons Chamber

[Saqib Bhatti (Meriden) (Con)]

I refer Members to my entry in the Register of Members’ Financial Interests. It is absolutely right that we should be protecting jobs and businesses, and that is exactly what the Chancellor has been doing repeatedly throughout this crisis. As Conservatives, we are the responsible party of government and the natural stewards of the economy, and we have always been the party that has made the right decisions through difficult times. It was the Chancellor who stepped up and provide a lifeline to so many—so many individuals, businesses, their employees and the most vulnerable in society.

Of course, ending furlough is not easy, but it cannot go on. While the Labour party, through this motion, postures and virtue signals, the people who elect us understand that these interventions cannot continue. They understand that the bills must be paid. They understand that our economy must be allowed to find its feet again and that life must return to normal.

[Virginia Crosbie (Ynys Môn) (Con)]

Does my hon. Friend agree that as the Chancellor approaches the autumn statement, he is looking toward a future of sound, sustainable finance?

[Saqib Bhatti]

I absolutely agree and I am proud of the Government for putting ideology aside, but there is a reason that we are the only party that the British public entrusted with our economy. Therein lies the difference, because while we talk about sustainable public finances, Labour would like to see the people of this country reliant on the state forever with no end date, trying to sneak in socialism through the back door. Meanwhile, this Government are trying to work really hard to protect, support and create new jobs. If the Labour party wants to support businesses and protect jobs, they should support this Government and this Chancellor. This is the Chancellor who introduced the job retention bonus scheme so employers could bring back people from furlough. He introduced the £2 billion kickstarter scheme to get young people into six months of paid employment, with £2,000 for employers for each new apprentice under 25 and £1,500 for those over 25. He doubled the number of work coaches and invested £150 million in the flexible support fund to remove barriers to work.

Our furlough scheme was unprecedented. It went further than any country in the world and it was the right thing to do.

[Patricia Gibson]

We have heard much today on the Opposition side of the House about how generous the Chancellor has been with his support, but does the hon. Member not understand that when tens of thousands of jobs are being lost—jobs that would otherwise be viable with a bit of additional support—all this generosity is cold comfort when someone loses their job and potentially their home?

[Saqib Bhatti]

I thank the hon. Member for her intervention. If we look at the quantum of the package, it has helped to protect the economy at its most difficult time, and I will come on to that.

As a Conservative, I never thought that we would be in a position where we would pay up to 80% of anybody’s salary—80%—yet the Chancellor stepped up and did what needed to be done, not once but twice. Since then, 9.6 million people have been furloughed and £30.9 billion has been given to over 1.2 million businesses. It was rightly lauded as extraordinary, because extraordinary times need extraordinary measures.

But that was not the only measure. There was the coronavirus business interruption loan scheme, the bounce back loan scheme, the rates relief, the business grants, the self-employed income support scheme, the mortgage holidays, the protection from evictions, rental holidays, tax deferrals, VAT cuts for hospitality and larger grants for the hospitality sector. These are just the ones that I can get in in a few breaths, Madam Deputy Speaker.

[Rob Roberts]

Will my hon. Friend give way?

[Saqib Bhatti]

Absolutely.

[Rob Roberts]

I thought I would give him a moment to catch his breath after listing all the interventions that we have provided. Does he agree that the Opposition are a bit rich to lecture us on not providing enough support, given all the things that he has just listed?

[Saqib Bhatti]

I could not agree with my hon. Friend more. I remember that the hon. Member for Ogmore (Chris Elmore) said that we would hear about it at the ballot box, but we have heard the British public’s verdict on the Labour party’s economic policy. We heard it in 2010, 2015 and 2017, and we heard it decisively in 2019. I will never forget the feeling of disbelief and deep disappointment that I had when I first read the note that the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) left in the Treasury when Labour were last in Government, saying that there was no more money left. Thank God we are a far cry away from the recklessness that we saw under the last Labour Government, and that is why I will be opposing the motion.

Stamp Duty Land Tax (Temporary Relief) Bill

Saqib Bhatti Excerpts

2nd reading & 2nd reading: House of Commons
Monday 13th July 2020 Commons Chamber

[Saqib Bhatti (Meriden) (Con)]

I am speaking in favour of this relief of stamp duty because, as we all know, housing is a huge element of our economy. Making it easier to buy and sell will lend our economy a much needed boost across the board. The housing market, like the rest of the economy, has endured a huge shock, with the first fall in house prices in eight years and the number of transactions falling by 50%. We all knew that was going to be the case, but the case for intervention was also clear.

Real estate in the UK is the cornerstone of our economy. Housing stock is worth more than £7 trillion, and the real estate sector is responsible for tens of thousands of jobs. For many homeowners, confidence and security in the worth of their homes allow them to feel secure in how they live their lives. Housing is not just bricks and mortar, but the stable anchor that creates the foundation for our lives. Stimulating the housing market will boost confidence throughout our economy and create jobs.

I welcome the continued commitment to remediate brownfield sites, which will mean that more land becomes available, increasing supply while alleviating pressure on our green belt. This cut will protect, support and create jobs, from estate agents and surveyors to builders and manufacturers. Along with the green homes grant, the Government are providing the housing sector and homeowners with some welcome assistance and support, as we make our way to recovery as a nation. It will mean less money paid in tax and more money in the pockets of those who may want to spend it in other parts of the economy. More homeowners, fewer taxes, more security—that is a fundamentally Conservative solution to one of the biggest crises in a generation.

Economists like to make predictions, and normally I am cautious of such forecasts, mostly because ultimately our economy is made up of people. It is not just numbers and theory, but individuals who behave in ways that spreadsheets and graphs cannot always predict, and I say that as someone who spent most of their professional life as a chartered accountant. However, one projection that seemed a certainty was that our economy would suffer some potentially devastating consequences following the shock of covid-19. Fortunately, in our Chancellor we have someone who has a calm head and a steady hand at the helm, ready to weather the storm.

For me, this cut is not just about stimulating demand, nor is it just about recognising the importance of housing as an economic asset. It is also about recognising that allowing people to own a house is to allow them to own a stake in society. Cutting stamp duty will have not only huge economic benefits, but huge societal benefits. We cannot just talk about buyers and sellers as if they are numbers on a chart. They are newly weds moving to a new home to begin a new life, and children spending Christmas in a new house, perhaps having their own bedroom for the first time. They are retired grandparents, downsizing so that a new family can move in and make new memories.

I encourage my right hon. Friend the Chancellor to review the positive impacts of the stamp duty holiday on the economy and to consider the benefits of maintaining the cut for longer. When we are back in smooth waters, perhaps he will look at some of the long-term reforms that may be available for the tax.

We say that a man or a woman’s house is their castle, and that is just as true now as it has ever been. The right to own a property is the cornerstone of individual liberty. I do not mean mansions or second homes; I mean, as William Pitt once said:

“It may be frail—its roof may shake—the wind may blow through it—the storm may enter—the rain may enter—but the King of England cannot enter!”

To own one’s home is more than a financial decision; it is safety, security and independence, and I commend the Chancellor for his role in allowing more people to achieve all three of those things.

Economic Update

Saqib Bhatti Excerpts

Wednesday 8th July 2020 Commons Chamber

[Rishi Sunak]

I have not avoided answering the question; I have answered it not just today, but on every other occasion that I have been at this Dispatch Box. We have provided comprehensive support to many millions of people, especially the self-employed—more generous and comprehensive than any other country—and I have acknowledged that we have not been able to help everyone in the exact way that they would like but, because of the strengthening of our welfare system that we put in place and our universal loan schemes, everyone has been able to access some form of support.

[Saqib Bhatti (Meriden) (Con)]

I thank my right hon. Friend for his characteristically timely and bold interventions, which will be welcomed by a lot of nervous households across the country. My constituents in Meriden are very environmentally focused and will welcome the green homes grant. Does he agree that it is about not just protecting the environment but creating jobs and giving the greatest benefit to those households on the lowest incomes?

[Rishi Sunak]

My hon. Friend is absolutely right. Those on the lowest incomes will receive grants of up to £10,000 to cover the full costs, but that is a policy that does all three things: it will create local employment in communities, which right now is what we want; it will save households money on their bills, up to £200 or £300 for typical cavity wall insulation; and it will cut carbon, with the average house installing these measures saving the equivalent carbon of a flight from London to New York. This is a policy that does what we need right now—cuts carbon, creates jobs and saves cash.

Covid-19: Economic Package

Saqib Bhatti Excerpts

Tuesday 12th May 2020 Commons Chamber

[Rishi Sunak]

When we announced the job retention scheme, I said clearly that it would apply for those of whom HMRC was aware on 28 February. We were able, while protecting the taxpayer against fraud, to extend that date to 19 March, the day before I made the announcement, which is reasonable, in the sense that without HMRC or the Government knowing whether someone was actually employed the scope for fraud would be considerable. I did not think it appropriate to expose the taxpayer to that.

That change to 19 March brought in 230,000 of the 350,000-odd people that the hon. Gentleman talks about. Yes, that left a number of people who could not be covered, but for a reason that I believe is defensible. The scheme is able to cover the 29.5 million people who were notified to HMRC on that date; indeed, 7.5 million of them are benefiting from it. We should not lose sight of that. The scheme is doing an enormous amount for several million people up and down this country.

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

Time and again, the Chancellor has stepped up to ensure that our businesses have what they need to get through this difficult period, and I welcome the measures announced today. The bounce- back loan scheme is another example of the unprecedented interventions that the Chancellor has made and this has been unequivocally welcomed by organisations such as the Federation of Small Businesses. Can my right hon. Friend confirm that work is continuing to be done to ensure that we increase the number of accredited lenders that provide bounce-back loans so that we can make sure we are getting funds to those businesses that need them, wherever they may be?

[Rishi Sunak]

I thank my hon. Friend for his advice as we looked to design and improve our lending scheme. I very much value his direct links with business and his relaying that to me. If you will allow me Mr Speaker, I can update him and the House on the number of loans that have now been approved. I am pleased to say that more than a quarter of a million bounce-back loans have been approved—267,000—with over £8 billion of capital benefiting small and medium-sized companies up and down the UK. On top of that, 35,000 CBILS loans worth more than £6 billion have now been put out. Hundreds of thousands of businesses are benefiting from the loan schemes that my hon. Friend helped to implement, ensuring that they worked well and quickly for businesses.