Oral Answers to Questions

Sarah Newton Excerpts

Tuesday 1st October 2019 Commons Chamber

[The Chief Secretary to the Treasury (Rishi Sunak)]

This Government passionately believe in helping those at the bottom end of the pay scale, which is why the Chancellor announced yesterday an increase in the national living wage, to abolish low pay in this country once and for all. Our track record over the last few years in this area has been exemplary. The fastest growth in incomes has been for those at the bottom end of the pay scale. Today, someone earning the national living wage is £3,500 better off than they were when we came into office. This is a Conservative Government on the side of those who are working hard.

[Sarah Newton (Truro and Falmouth) (Con)]

I very much welcome the Prime Minister’s announcement of pound-for-pound replacement through the shared prosperity fund of the EU funding that Cornwall receives. We are really ready in Cornwall to drive our economy forward. Will the Chancellor meet the local enterprise partnership and all Cornwall’s MPs, so that we can make rapid progress in designing that fund?

[Mr Simon Clarke]

My hon. Friend is right that we need to ensure that the UK shared prosperity fund works for all the regions and nations of our country. I would be delighted to meet her, to ensure that we get all the suggestions from Cornwall as part of the process of designing that new fund.

Spending Round 2019

Sarah Newton Excerpts

Wednesday 4th September 2019 Commons Chamber

[Sajid Javid]

I thank the hon. Lady for welcoming one of the changes I made a few weeks ago, which was to unlock or bring forward £1 billion of new capital investment in our hospitals and an additional fresh £850 million on top of that to upgrade 20 hospitals. She makes an important point, but today’s announcement is about day-to-day resource spending whereas she is talking about another important area, which is capital. I will make sure she gets the meeting with Ministers she wants.

[Sarah Newton (Truro and Falmouth) (Con)]

I very much welcome this additional investment in our vital public services. The “Britain’s Leading Edge” report that I helped launch in July evidenced an historical bias in the funding of our public services between England’s regions and major cities. Will my right hon. Friend use the spending review to end this bias, so that regions such as Cornwall can play their full part in the Treasury’s economic renewal plans?

Animal Welfare (Sentencing) Bill (First sitting)

Sarah Newton Excerpts

Committee Debate: 1st sitting: House of Commons
Tuesday 23rd July 2019 Public Bill Committees

[Bill Grant]

Thank you very much.

[Sarah Newton (Truro and Falmouth) (Con)]

Q Like Trudy, I am sure that having to hear these appalling examples is extremely disturbing for us all. I am curious to know what sentences were meted out for such atrocious crimes. That would help us to appreciate how important our work is here today.

My question follows on from the discussion we have just had. It strikes me that there are, as Claire said, a lot of similarities with other types of crime, such as the sexual exploitation of children and how the internet is used there. What lessons should we be learning about raising awareness and educating people that this is absolutely unacceptable in our society? As you mentioned, children, who will be exposed at home and on social media, might be tempted to copycat. What more can we do to raise awareness that it is unacceptable, that these are crimes in our country, and that the people who perpetrate these crimes, or who are associated with them, will encounter the full force of the law?

Michael Flower: When we had discussions with the Department for Environment, Food and Rural Affairs about the Animal Welfare Bill, one of the important things that had to follow its enactment was publicity to educate the public that the law had changed and to make it clear that there were now new requirements for animal care, particularly in relation to the duty of care offence. When DEFRA introduced the codes of practice for domestic animals, that did not really happen.

Were this Bill to be enacted, I would again say that there needs to be a fairly significant media campaign to educate the public—to say that this is a new law with new penalties and that the Government and the country take the crime seriously—and to drive that message home to them. We try to educate people. Most of the work our officers do—although we talk in here about investigations and prosecutions—is about educating and advising people, and providing guidance to resolve problems before we get to the prosecution stage. We can put the message out, and I am sure that other agencies and charities will do so, but the Government need to do that as well—it needs to come from on high.

Claire Horton: I think it is a partnership. We work very closely with the Government in other areas. Certainly, as an animal welfare sector, all the agencies work closely together. We all know each other well and share common ground when it comes to issues such as this. Certainly, we are able to join with the Government to share messaging—it does not matter what sort; we will happily do it.

There is a multitude of messages that we are trying to get out to people. One is how to make wise choices and decisions about the purchase of puppies, because puppy farming and illegal puppy smuggling and dog breeding are always huge issues. How do we make people much more aware of responsible ownership? How do we stop animals getting out and worrying livestock? How do we make people think differently about all manner of things? There is always a danger that messages can get mixed up—that they get muddled and ultimately people become blind to awareness messages that are constantly hitting them. It is about thinking carefully about the nature of the message, how it is put out to the population and what methodology or channel is used, which is quite important.

Earlier, I mentioned copycat behaviour, which worries me a lot, because of the issue of promoting responsible ownership as it relates to animal cruelty and not being cruel to animals. Inevitably, in those messages, we will be giving examples of animal cruelty and there will always be people who pick those messages up in the wrong way and go and do it. None the less, that does not stop us needing to be clear about this.

Ultimately, the biggest deterrents will be a much harsher sentence, a much more serious punishment and naming and shaming. One of the interesting things about the internet and some of the cases we have heard about is that when those perpetrators’ identities become public, life can get difficult for those people simply because of the public reaction. I make no comment on that, other than that it can clearly work in different ways when people or the issue are exposed.

[The Chair]

I will come to Sandy Martin and then the Minister. We have 15 minutes left, so perhaps you can ensure that the Minister has plenty of time to ask his questions.

--- Later in debate ---

[The Chair]

Sarah Newton.

[Sarah Newton]

I am going to pass my opportunity over to Alex.

[Alex Chalk (Cheltenham) (Con)]

Q Thank you very much. I declare an interest: I am pretty sure I have prosecuted offences that were defended at the bar by Bindmans.

Mr Schwarz, can I ask briefly about your helpful point on an apparent inconsistency between domestic and wild animals and explore a little bit about how much that matters? I am conscious that, if a robbery takes place and there are two robbers, one of whom is 18 years and one day old at the time of the offence and the other is 17 years and 360 days, they will be sentenced under different regimes, even though, as far as they are concerned, they are two young men of effectively identical age. Equally, if there is a traffic offence and a prosecutor decides the driving fell far below the standard of a reasonably careful and competent driver, they get charged with dangerous driving. Equally, if another prosecutor says, “Well, I don’t think it quite crosses ‘far below’, but it was below the expected standard, so I’m going to charge it as careless driving,” that offending would be sentenced under different regimes. Have the courts not shown themselves to be well able to deal with such discrepancies without any real manifest injustice to anyone?

Mike Schwarz: I can see I have struck a lawyer here. There is a difference, actually, and it is one of substance. There is a principle behind treating adults differently from juveniles, and a principle behind treating careless driving differently from dangerous driving. As we all know, the law has to draw a line because there is a reason for doing so. The distinction between the sectors of domesticated and wildlife animals, and treating them differently in terms of sentence, does not appear to have a principle, unless Parliament is saying that the animal suffers less in the wild as the result of unnecessary cruelty, or that it is more important to punish suffering in the domesticated area. For what it is worth, I think the suffering is the same, and it is for Parliament to decide whether the two should be distinguished from each other. That is where the distinction lies.

It begs the question of what the animal welfare legislation is generally about. It seems to be about protecting animals, punishing bad behaviour by humans and stopping it being propagated elsewhere. In the sentencing guidelines and the offences, however, there is no demarcation between sectors to say that one sector is more worthy of protection than the other is, which is why I go back to the point on the level playing field across the two areas.

Oral Answers to Questions

Sarah Newton Excerpts

Tuesday 2nd July 2019 Commons Chamber

[Mr Speaker]

The Chancellor is a clever chap, but his capacities do not include the capacity to penetrate the minds of colleagues, especially those in competitive vote-seeking mode.

[Sarah Newton (Truro and Falmouth) (Con)]

Homes England indicates a current pipeline of some 15,000 community- led homes in England. That shows the significant positive impact of the community housing fund. Will my right hon. Friend confirm the continuance of the fund so that those much-needed homes can be built?

[Mr Hammond]

As my hon. Friend knows, we have signed off the Truro funding decision, and I am sure she is happy about that. The Prime Minister has made it very clear that dealing with the challenges in the housing market is a priority for the Government, and in the spending review we will continue to prioritise funds to support both the housing market and the provision of social and affordable housing.

Wild Animals in Circuses (No. 2) Bill (Second sitting)

Sarah Newton Excerpts

Committee Debate: 2nd sitting: House of Commons
Tuesday 21st May 2019 Public Bill Committees

[The Chair]

We have under 20 minutes left. Four colleagues have indicated that they want to speak before the Minister does. If anyone else wants to say something, could they catch my eye?

[Sarah Newton (Truro and Falmouth) (Con)]

Q May I just say, Mr Jolly and Ms MacManus, that you are coming across as people who care very much for your animals?

Carol MacManus: We do.

Peter Jolly: We’re a family.

[Sarah Newton]

I can hear that.

Peter Jolly: My grandchildren are in the circus now. It is a family business that uses animals. We are similar to farms.

Carol MacManus: I do not know how many of you have a pet, but if you had a pet dog and somebody told you, “We’re going to ban pet ownership”, how would you feel?

[Sarah Newton]

Q I can understand that this is very difficult and emotional for you. We can appreciate that. It is a whole way of life for you. What has struck me from what you have said is that in addition to the wild animals—you call them exotic animals—you have other animals. You might be thinking, “If this does come through, we’ll look to diversify. We may have other animals,” because clearly you love animals and you think children should have these opportunities. Could you talk to us about how you might diversify—maybe you could have some snakes?

Carol MacManus: They are wild animals, so we cannot have them either.

[Sarah Newton]

Q Are there any other sorts of animals that you—

Peter Jolly: It is only ponies—I have ponies—and donkeys, goats, that sort of thing. They are the only things. Llamas are not classified as wild.

[Sarah Newton]

Q So you would carry on doing what you were doing but you would have other animals that were not considered to be exotic or wild animals?

Peter Jolly: Or we could go off and do country shows and things like that with the animals that we have.

[Sarah Newton]

Q Talk me through that. You feel that you would be able to keep the animals you have, which are wild animals—although you call them exotic animals—but do something else with them.

Peter Jolly: We could do film work and county shows. We could still have a circus, but outside.

[Sarah Newton]

Q Do you feel the definitions in the Bill would enable you to do that?

Peter Jolly: I think the word “circus” needs to be clarified. Saying that it has to be in a big top is not correct. A circus can be anywhere.

Wild Animals in Circuses (No.2) Bill (First sitting)

Sarah Newton Excerpts

Committee Debate: 1st sitting: House of Commons
Tuesday 21st May 2019 Public Bill Committees

[Sandy Martin]

Q What would you say to the argument that because animals are used for other purposes in other countries, that means that it is all right to use them to perform tricks in circuses in this country?

Daniella Dos Santos: We have a duty to lead. We have a duty to set out good animal welfare legislation and be at the forefront of animal welfare. It reflects directly on how we, as a human society, will respond to other humans and animals in our care. Just because something is occurring in a different country is not a justification for it happening here. I do think we need to put animal welfare above all else.

Dr Ros Clubb: In terms of the definition of “wild animal”, if an animal is not commonly domesticated in this country, we agree it should fit within that definition of a wild animal. The animals are not commonly kept as domesticated species, so they should fall within the “wild” category.

Nicola O’Brien: We have nothing to add, really.

[Sarah Newton (Truro and Falmouth) (Con)]

Q Each of you has made the very good point that this is about travelling circuses; we need to have effective legislation, as people move around the country. And you have mentioned the Scottish definition and how you feel that it would be beneficial if this Bill were to include that definition. It is my understanding that the Welsh Assembly has a draft Bill as well, so could you comment on the draft Bill and how compatible you feel that that is with the Scottish legislation and potentially this Bill?

Dr Ros Clubb: In terms of a comparison with the Scottish Act, there are a number of differences, one of which is that, on the definition of “travelling”, that Act goes into a bit more detail. There is also a quite detailed guidance document that goes along with the Act. We would like to see a similarly detailed guidance document to go along with England’s Act, to help to provide the background in terms of what is and is not covered. Scotland’s Act includes powers for constables to go into premises and to gather and seize evidence, which we would like to see in England’s Bill. My understanding from the Welsh draft Bill that we have seen is that it is more similar to Scotland’s Act. It would be beneficial if there were parity between the Acts across those three areas, because the circuses are travelling, as you say. Some of that could be done within the Act itself, but there is also that route of providing additional guidance to help to marry up the pieces of legislation.

Nicola O’Brien: Again, we do not have much to add to that. Fundamentally, the Acts will have the same impact as to where the circuses can be and what they can do, in terms of using animals or not, so we feel that the pieces of legislation match up quite well, but again, we would include the comments made by the RSPCA.

Daniella Dos Santos: My only extra comment would be that the more parity that there is, the less likelihood there is for any confusion when it comes to cross-border implementation and enforcement.

[Sarah Newton]

Q What is really reassuring, from what you say, is that this can be dealt with either in the Bill or in guidance, and clarity and consistency can be achieved. You mentioned Scotland, and we have had a discussion about the role of the police in enforcement. It is my understanding that Department for Environment, Food and Rural Affairs inspectors have an important role to play in animal welfare. Would you comment on that and whether you feel that anything more could be considered alongside this Bill, in terms of the powers that the DEFRA animal welfare inspection regime has?

Dr Ros Clubb: From our understanding, the intention is for this Bill to appoint inspectors. We envisage something similar to what is happening with licensing; inspectors drawn from the zoo inspectorate have been appointed and have powers, as described in the Bill, to go into premises, inspect them, and seize and gather evidence. I envisage that that is what is planned. We would like those powers extended to constables as well, so that there is additional flexibility and power to go into temporary venues at short notice, to investigate potentially illegal activity.

[The Chair]

Before we proceed, I remind everyone that it can be tempting to think of this session as a personal conversation between the person asking the question and the person replying. The rest of us would like to be involved. When you ask a question, please make sure that I can hear it—and everyone else at this end of the room—and also when giving the replies. Especially with women, there is tendency to lower the voice; do not do that. Just pretend you are a man and yell.

[Sarah Newton]

Q I want to come back to the point about the DEFRA inspections. DEFRA has a huge amount of expertise on animal welfare and has teams looking at the misuse of farm animals, as well as domesticated animals. Why do you feel that additional powers need to be given to the police over and above those that DEFRA animal welfare officers have?

Dr Ros Clubb: Really, to our mind it is about having flexibility and swiftness to go and investigate reports of illegal activity and breaches of this legislation, so that the police would have the powers to go in and investigate as well. We agree that there is a lot of expertise there, but we think it could be extended. Hopefully, there will not be frequent reported breaches of the legislation, but where there are we would like them investigated swiftly and thoroughly, with the powers that are in that area, as well as the appointed inspectors under the Bill.

[Kerry McCarthy (Bristol East) (Lab)]

Q One of the things we were constantly told as we discussed this issue in Parliament over the last eight years, was that we could not introduce a ban because the EU would not let us. Now, 16 EU countries have—I hope—successfully introduced a ban. Can you tell us how it has worked in those countries? Has there been any need for enforcement or has the law been complied with? Are there any lessons we can learn from how those EU countries have done it?

Nicola O'Brien: If I am honest, I do not know much about that. We have been focused on the UK. Perhaps other panel members here or in the next session, such as Animal Defenders International, would have data about that.

--- Later in debate ---

[Luke Pollard]

Q There is a sense sometimes that Britain is leading the way in animal welfare. In some areas we are, but in this area we seem to be very slow and a proposal that was initially put forward by the last Labour Government—that was when I had brown rather than grey hair, it was that long ago—has taken a very long time to get here. Are there any lessons that can be learned about how these types of issues can be hurried through? Are there things that have changed in the period when this was first proposed that you think are missing from the Bill as it currently stands?

Angie Greenaway: It is really unfortunate that it has taken us so long for us to get to this point. Half of the bans in place around the world have passed while we have been talking about the issue and drafting legislation and thinking about it. We have found ourselves woefully behind countries such as Iran and Bolivia. All over the world, these countries have acted—and quite quickly as well. The period from public opinion being against it to legislating has been quite short—usually no more than just a few years—whereas for us it has taken so much longer, which is unfortunate.

I wanted to touch on your last question re the bans. A number of countries do not have travelling circuses based in their own country, like in Wales: they do not have any wild animal circuses based there but they visit from England. That is the case in quite a few of the countries that brought in bans. They did not have any circuses in place but they were visiting from other countries. That has been the case with some of the bans that have come in.

Dr Chris Draper: From my perspective, I first became involved in looking at this issue in about 2004, 2005, when it was the Animal Welfare Bill. In the subsequent delays to tackling this issue, it is worth noting the introduction of new species to circuses travelling around Great Britain. We have the particular example of elephants, where they were on their way out of the industry and one of the circuses that existed a few years ago decided to bring in a new elephant act. That is quite a strong lesson that we need to act now and not just look at the fact that there might be only 19 animals. It is the fact that the number could increase. Admittedly, that is unlikely in its current format but there is still that possibility for new animals and new acts to be brought in.

Jordi Casamitjana: When I talk to many people in other countries, they are always quite surprised to realise that we have not banned wild animals in circuses yet, when it happens so often. Nothing has changed since Bolivia banned all animals in circuses some time ago that justifies the delay. Only the fear that there might be a problem that is not there, because when it is banned anywhere else, there is no problem. The public understand it. Society has moved along. This is an issue that is totally understood and the practicalities are easily solvable, so it is surprising we have not done it yet.

[Sarah Newton]

Q I would like to come back to some of the questions I was asking before, given the breadth of your experience. This is about enforcement. In our country we have got the Department for Environment, Food and Rural Affairs, and quite well defined animal welfare standards. DEFRA inspectors have a lot of power to make sure animals are properly cared for and, if they find that they are not, to confiscate and prosecute. I represent a large rural constituency. Most of my farmers, of course, are fantastic farmers, but, sadly, we do have some quite notorious prosecutions for very poor animal welfare, and the powers have worked really well.

Some of the witnesses have suggested to us that in addition to the existing DEFRA regulatory framework, our police force should be involved. What value, if any, do you think that that would bring? Can you draw on your international experience? Who is best placed to do the enforcement?

Dr Chris Draper: From my perspective, in the current situation with DEFRA inspectors inspecting circuses, they would be doing it within a licensing regime. Those are circuses that have been in effect pre-approved on the basis of an application, and DEFRA inspectors are going to ensure that they are complying with the current standards. That is a very different kettle of fish from the involvement of, for example, the police, whose experience is more in examining criminality, and chain of evidence-type procedures. I think there is a role for both bodies in the investigation of the potential use of animals in a circus after a ban.

Jordi Casamitjana: I agree. I think it should be both, because we are talking about different things, here. One would be finding out whether the circus had a wild animal, contrary to the Act. The other would be checking the conditions of the animals that were there. There might be situations where the law was breached and there was a wild animal, but there was a need to check whether animal welfare legislation applied, so as to confiscate the animal if it was being kept in bad conditions. The latter would be a job for a DEFRA inspector—finding out about the conditions—but the police could easily deal with enforcement on the question whether there was a wild animal or not. I think there is room for both.

[Sir Oliver Heald]

Q Some of the rarest birds are new world parrots—macaws. They are threatened with extinction. Some of them are hybridised for the pet market, so there are parrots—macaws—that could be classified as pets and as commonly domesticated. We have heard from the RSPCA that certain birds—budgerigars and parrots—are probably not covered by the Bill. Do you think we need a bit of clarity about this? If animals that are close to extinction are not covered, that would clearly be wrong. One of the animals listed among the 19 currently in travelling circuses, is, of course, a blue and gold macaw. I wondered what your thoughts were.

Dr Chris Draper: There is obviously a lot of confusion about the term “domestication” and it crops up within the definition of a wild animal. I suspect some of that could be tackled quite simply. Domestication is a long-term biological process that involves selection by humans for particular desired traits within animals, over multiple generations. The timescale we are talking about is hundreds, if not thousands or tens of thousands of years. That is not the same as hybridisation or having animals in captivity for a couple of generations; those are not a domestication process and have no resemblance to one.

Business Rates

Sarah Newton Excerpts

Tuesday 2nd April 2019 Commons Chamber

[Sir Geoffrey Clifton-Brown]

I am all for anything that encourages our young talent to come through the chain, as my hon. Friend puts it. One of the great strengths of this country, as I meant to say when I opened this debate, is the 5.7 small and medium-sized businesses in this country, especially the 0.5 million new businesses that have been formed in the past five years or so. They are all capitalists risking their capital, many of them with a mortgage on their house to support their business. They work hard, and they succeed, and hopefully those small businesses will become medium-sized or large businesses.

All Governments of all colours have always been tempted to impose more taxation and bureaucracy on those small and medium-sized businesses, because they are easy targets and they do not move. What we should be doing is the reverse—making it easier for them to exist and make profits.

[Sarah Newton (Truro and Falmouth) (Con)]

I am pleased that my hon. Friend was able to secure this debate. He is making a really powerful case on the importance of small businesses in our communities. Is it not interesting that there are no Opposition Members here at all, while Government Members, even as the House is about to adjourn, are standing up for small businesses? As Conservatives, we are the party for small businesses. I very much commend my hon. Friend’s recommendation that we look in the round at what we can do to simplify taxation on small businesses. That is really important, but as we do so, I have noticed something positive about business rate retention. Local authorities are now working far more constructively with small businesses, so that that income raised in that community flows to them. Local authorities have to be concerned about small businesses, whereas in the past, when they got cheques from central Government they were not so focused on them. In the new scheme, let us think about the link between local authority funding and small businesses.

[Sir Geoffrey Clifton-Brown]

My hon. Friend, along with most of my hon. Friends, if not every single Member who is in the Chamber, is passionate about defending small businesses. I can see that she is shortly going to make a speech to support her small businesses—perhaps very shortly; I cannot possibly foretell.

Oral Answers to Questions

Sarah Newton Excerpts

Tuesday 10th March 2015 Commons Chamber

[Danny Alexander]

I do not know the details of the specific instance to which my hon. Friend refers, but I do think that in cases where an organisation is facilitating or promoting tax evasion and a penalty is then paid and tax is paid, as it should have been in the first place, the organisation facilitating the tax evasion should be liable for exactly the same amount of money, to be paid to the Exchequer. In that way, there would be a strong financial as well as legal incentive for people not to get involved in this practice in the first place.

[Sarah Newton (Truro and Falmouth) (Con)]

9. What recent representations he has received on caps on local authority borrowing for building homes.

[The Chief Secretary to the Treasury (Danny Alexander)]

I have received many representations on local authority borrowing caps, but I would refer the House to the recent excellent review of the local authority role in housing supply carried out by Natalie Elphicke and Councillor Keith House. They made many suggestions as to how the local authority role in house building could be improved, but one of their conclusions was that the problem was not a lack of money but the way in which resources are deployed and organised in the local government sector.

[Sarah Newton]

I very much welcome the answer to my question and the other comprehensive measures the Government have taken to enable people to buy their own homes, such as First Buy. Will the Chief Secretary explain a little more about some of those findings and what more we can do to ensure that hard-working people who need social housing can get it?

[Danny Alexander]

The hon. Lady raises an important question. In this Parliament we are building more affordable homes than has been the case at any point in the past 20 years, and in the next Parliament we will be building even more. However, I do not think any of us should be complacent; we need to raise substantially the level of house building in this country. That is why I welcome the recommendation of Keith House and Natalie Elphicke on a housing finance institute. It is also why I set out around the autumn statement last year moves towards Government taking a direct commissioning role to ensure that we meet a 300,000 homes a year target. That will be piloted at the Northstowe development, which I encourage the hon. Lady to find out more about.

--- Later in debate ---

[Mr Gauke]

Those are EU rules. It was the previous Government who signed up to the principle of changing the way in which the VAT system worked, and they were right to do so. This Government have taken two measures to try to mitigate the impact on some smaller businesses. None the less, without the support of other member states, we are still faced with a change in the rules.

[Sarah Newton (Truro and Falmouth) (Con)]

T7. Under this Government, food and drink manufacturing is a great British success story. However, our dairy farmers are being badly affected by volatile global markets. Will the Financial Secretary look favourably on proposals to implement tax averaging reforms, such as those in Ireland, to help these essential producers who contribute so much to our rural economies?

[Mr Gauke]

I am grateful to my hon. Friend for her question; I shall take it as a Budget representation. I am sure she will understand that I cannot say any more about it at this point, other than to thank her. She has been vigorous in putting forward that case.

Tax Avoidance (HSBC)

Sarah Newton Excerpts

Monday 9th February 2015 Commons Chamber

[Mr Gauke]

The restrictions were essentially that the information could be used only for pursuing tax evasion prosecutions, not for other matters, such as money laundering prosecutions, for example. On the precise arrangements and conditions, it is worth pointing out that the first request for information was made by HMRC in February 2010, under the previous Government. I am not sure what conditions Ministers were consulted on at that point.

[Sarah Newton (Truro and Falmouth) (Con)]

Like me, small businesses in my constituency paying their taxes get angry when they see big international corporations getting away with avoiding their taxes. Will my hon. Friend update us on the action he is taking to ensure that multinational companies pay their fair share of tax to HMRC?

[Mr Gauke]

On multinational companies, I would make three points. First, we are ensuring that HMRC’s large business unit has sufficient resources to monitor large businesses adequately. Secondly, we are leading on international reform through the base erosion and profit shifting project with the OECD. Thirdly, I would highlight the diverted profits tax measure announced at the last autumn statement, which has been consulted on in recent weeks, and for which we hope to legislate in the Finance Bill before the end of the Parliament.

Childcare Payments Bill

Sarah Newton Excerpts

Monday 14th July 2014 Commons Chamber

[Catherine McKinnell]

We all want to see more child care places. We recognise not only that there is a challenge in meeting the costs of child care, but that we need to do something on the supply side if we are to see the costs come under control. That is why I will set out exactly how Labour has proposed to deal with that issue. Although we support the measures that are being proposed, despite having quite a number of questions to raise about them, we suggest that there are actions that the Government could take today on the supply side to increase the number of child care places that are available, which has been falling.

[Sarah Newton (Truro and Falmouth) (Con)]

I take issue with what the hon. Lady is saying because of my experiences in my constituency. I have just looked at the data and there are 100,000 more places in nurseries today than there were in 2009. Of course, with that increase in supply, prices are falling.

[Catherine McKinnell]

I do not recognise what the hon. Lady is saying. If she is saying that that is happening in her area, I would be interested to see the data to back that up. We know that 35,000 fewer child care places are available and that prices are rising. Parents out there are struggling with the cost of child care—indeed, the Government accept that it is a challenge for many households up and down the country—and I think that they would find it deeply disconcerting to hear an hon. Member suggest that prices are falling and that everything is fine. Government Members seem to be very detached from the reality that families are facing up and down the country.

--- Later in debate ---

[Catherine McKinnell]

Perhaps the hon. Gentleman will look again at his House of Commons Library note and explain in his contribution why we have seen 3,000 fewer childminder places since the Government took office. Overall, there is a worrying trend of reducing child care places and rising child care prices, and he will understand that basic economics mean that households up and down the country are struggling to deal with the cost of child care. Many households—particularly women—are making the choice to stay at home because it is simply unaffordable to go out to work.

The Minister spoke passionately about the increasing number of women in work, but she will acknowledge that there is a lot more work to do on that and we still fall behind on maternal employment in OECD comparisons. We need to make progress on that so that parents who want to work can do so and so that child care is affordable.

[Sarah Newton]

There is no complacency whatsoever on the Government Benches about helping those hard-working families who are struggling with the costs of child care. The hon. Lady asked where I got my numbers from. I have just looked, and the Department for Education website’s annual survey of child care and early years providers clearly shows that the number of child care settings has increased and that prices are coming down, although there is still more work to be done. This is not the first time the Labour party has got the numbers wrong so I am not surprised, but she should have the good grace to acknowledge when she is wrong.

[Catherine McKinnell]

I thank the hon. Lady for her clarification, but we know that over the course of this Parliament we have seen a reduction in the number of child care places and an increase in the price of child care. Part-time nursery prices have risen five times faster than pay, and in the past four years alone in my region in the north-east prices have risen by a staggering 50% for households that are already struggling to make ends meet. The average bill for a part-time nursery place of 25 hours a week has gone up to £107, and the average weekly cost of a full-time place has risen to £200 or more. It is hardly surprising that the Family and Childcare Trust has calculated that families are paying more on average for part-time child care than they spend on their mortgage, with some handing over a staggering £7,500 a year more for child care for two children—around 4.7% more than the average mortgage bill.

--- Later in debate ---

[Priti Patel]

I welcome my hon. Friend’s intervention. He makes a powerful point. When we consider child care and child care payments, it is important to understand that this one size does not fit all—we all have different child care needs. All our children are different; every family is different. The Bill moves us away from the notion that everybody’s situation is similar. We must support families through all sorts of personal circumstances, some of which are challenging and very difficult. We know that both as constituency MPs and as parents.

One of the biggest challenges and choices that parents face is how to raise their children, so the Bill is not only timely but politically significant—we have not had such a measure before. We live in a society in which the pressures on parents are absolutely enormous, whether because of employment, changing jobs, the labour market, social mobility or the fact that we live in an international and global world. Many companies have different expectations of their employees, but employees are parents, too.

[Sarah Newton]

Does my hon. Friend agree that caring for older relatives is another huge pressure on families? It is so important that the benefits of this Bill will be available to those on carer’s allowance. So many people fall out of work because it is too difficult to work while managing caring responsibilities.

[Priti Patel]

My hon. Friend makes a powerful point, which relates to my earlier comments on everybody’s circumstances being different and the flexibilities outlined in the Bill. The ability to reach out to those with different circumstances and backgrounds is paramount. The Bill demonstrates a depth of understanding of the challenges facing families and households. When both parents work, they find it difficult to decide between the costs of child care, which can be in excess of £10,000 a year, and spending time raising children themselves.

We should remember that child care costs vary across the country and that no generic or standardised level or rate exists. Costs are naturally high in London, the south-east and the east. Many working households spend a lot of their income on child care, partly because people do not necessarily live in the conventional family set-ups in which grandparents might be around the corner and able to offer support. I must be perfectly honest that I rely on such a situation. I tell everybody that I am blessed and that I can do this job only because I have outstanding family support to look after my son.

Child care decisions are often made on cost grounds and the Bill goes a long way to reflect that. Over the past decade, the average hourly cost of child care has increased by more than 67%, which is almost two and half times higher than the CPI rate over the same period. The pay of parents in England will vary depending on what they do. In London, pay levels are slightly higher than elsewhere, but many parents pay hundreds of pounds a week to some child care providers, which means that their families are under pressure and more often than not—we have not discussed this—that pressure ends up on working mothers. They are the ones who sacrifice their careers or put them on hold because child care costs can be so high that they have to decide whether going out to work or staying at home to look after their children is more financially expedient. I have much sympathy with those mothers. Many of my constituents with successful professional careers that they want to continue inform me of the pressures and challenges that they face, including the high costs of child care and commuting costs. Essex is not that far from central London, but most of my constituents and others across the county work in London. They are on a treadmill day in, day out. They face pressures and costs and feel as if they have no choice. If people feel that they have to stay at home, it becomes harder for them to re-enter the work force, which is another reason the Bill is so important. It helps mothers in particular to meet their aspirations, which we should all welcome and support.

The Government deserve credit for recognising the pressures, in addition to soaring child care costs, that families and mothers face and the impact of those pressures on families. As with so many other issues, the Labour party ignored that when it was in government. We have heard lots of rhetoric today, but the reality is that it is difficult, a challenge and a balance. It is easy for the Opposition to talk about the Government today, but we have to remember that the economic policies of the past—uncontrolled public spending—hampered the economy instead of helping families. When families needed help, they were hurt. We know about the negative impact that the downturn and its economic legacy has had on households, so now is the right time to focus on support for hard-working families. The Bill is about support for child care costs, but we want to put an end to the shameful past and what parents had to deal with, and to look forward.

As we heard from the Financial Secretary to the Treasury, the Government have gone a long way to bring in positive and proactive measures to help hard-working households: cutting income tax bills, abolishing Labour’s jobs tax; reducing fuel duty; and supporting private business. That applies particularly to my constituency, where SMEs employ 85% of my constituents. We need the private sector and SMEs to be successful to continue to create more jobs. A million new jobs have been created since 2010. The measures are positive and bring a new dynamic to the employment market. At the same time, low earners have been given support with child care costs, including free child care places for some 40% of two-year-olds. Those are the proactive measures that make a difference to middle and low-income families.

As a Conservative, I instinctively believe that the Government should not only support families, but also help parents to make choices about working arrangements, which is why the Bill is so positive and proactive. Families want to be empowered by Governments to make the right choices for themselves. The Bill helps families to make such choices by alleviating some of the financial pressures caused by child care costs. This package of support will help women who want to continue to work to do so. We are already seeing record numbers of women in work and the Bill will help those who have established a career—or those who are just starting out after having taken time off to bring up their children—to continue to develop and to advance in their profession.

The £2,000 a year of support for families is a substantial amount for the Chancellor to find and should be put in the right context. It has been made possible only because of the controls that have been placed on spending and the reductions in the deficit, which the Labour party has opposed. This Government is on the side of hard-working families. The Bill will benefit not only my constituents but working families across the country through sensible and practical measures. I welcome it as a positive way of supporting families and working women.