Non-Domestic Rating (Lists) (No. 2) Bill

Sarah Olney Excerpts

2nd reading & 2nd reading: House of Commons & Programme motion & Programme motion: House of Commons & Ways and Means resolution & Ways and Means resolution: House of Commons
Wednesday 30th September 2020 Commons Chamber

[Luke Hall]

I thank my hon. Friend for his point. We are currently undertaking a fundamental review of business rates, and as part of that exercise we are considering the frequency of future revaluations. When deciding whether to have more frequent revaluations, we need to strike the right balance between more up-to-date assessments, which would flow from such a reform, and the uncertainty it could create, with more regular changes to bills, while also taking into account the time it currently takes to process changes and the impact that any changes that might be required would have on the current system. I certainly understand, however, the point that he has continually made about annual revaluations and how that could further improve the system. I am sure that will be considered.

[Sarah Olney (Richmond Park) (LD)]

I have listened carefully to what the Minister has said about the revaluation moving from April 2021 to April 2023, but I wonder whether there is a danger that those properties that might have a substantial revaluation downwards will be paying over the odds on their rates for two further years, at what we all know is going to be an incredibly tough time. I am thinking in particular of retail businesses and a very challenging trading environment. Will he consider changing the date from April 2023 to later in 2021, particularly given the comments he has just made about the need for more regular revaluation?

[Luke Hall]

I thank the hon. Lady for her point. I know it is a matter in which she takes a personal interest and that she has raised it with Ministers. The point stands that we have to have a system that takes into account the impact of the pandemic and, as is the case with the current system, the time it takes the VOA to go through the process. We think that this is the measure required at this time.

We took the step to postpone the implementation of the next revaluation so as to give certainty to ratepayers and to ensure that the next revaluation reflects the changes in the market conditions as a result of the pandemic. The Bill will therefore set the implementation of the next revaluation date in England and Wales as 1 April 2023. On revaluation based on the rents of 1 April 2021, we have, of course, already set that out in secondary legislation.

Business rates is a devolved policy area, but with agreement from the Welsh Government the Bill does also apply to Wales. As in England, the next revaluation in Wales will be implemented on 1 April 2023, and the date of publication of Welsh draft rateable values will also be changed to 31 December. Entirely different legislation applies in Northern Ireland, which has only recently implemented a revaluation from 1 April 2020, and Scotland, where I understand the Scottish Government have also committed to implementing their next revaluation on 1 April 2023. There is, therefore, a good degree of agreement across the UK that the next business rates revaluation is moved, to better reflect the impact of the coronavirus. Notwithstanding some of the points raised, I hope that is accepted across this House.

As I have said, this is an exceptional step and the Government remain committed to frequent revaluations of business rates. The fundamental review of business rates will look at not just the frequency of revaluations but how they are done, and will report on those aspects of the business rates system in spring. However, this is a step that we can take now to improve business rates bills, and that is why we have brought this Bill forward so quickly.

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[Sarah Olney (Richmond Park) (LD)]

I value this opportunity to raise the issue of business rates and their impact on the retail sector. The hon. Member for North Norfolk (Duncan Baker) raised many similar points, but I wish to talk in particular about the value of retail during this incredibly difficult time.

Our retail sector has been essential in helping many members of my community through this difficult period, which has shown the value of a strong retail sector in every town centre to the building of communities. Many of us who have been holed up at home for an extended period have valued the opportunity to get out and about and have face-to-face contact again. I think more of us value that than ever before. For that reason, although this is a very difficult time for the retail sector, I believe it has a strong future, because we cannot replace the value of that face-to-face contact with an online purchase; it is a tremendous boost to one’s wellbeing. We have all become much more aware of the issues of isolation, people living alone, and how the town centre helps to build a strong local community.

Another point that I wish to make about the retail sector is that it has always been a strong source of employment for many people—local employment is so important for many people who find it difficult to access city centres. I draw the Minister’s attention to the fact that the retail sector is a major employer of female workers; that is so important. Research shows clearly that having more women in employment has a strong impact on reducing the number of children in poverty. That is why it is so important to support the sectors that support female employment.

The rates holiday has been essential to helping retailers survive during the pandemic. Like all Members, the Liberal Democrats have welcomed those measures from the Treasury, but I urge the Government to take the opportunity presented by the Bill to reform the existing structure of rates to better reflect the underlying trading environment that many in the retail sector are having to face. Yes, we should to push the revaluation back for the relevant businesses, but perhaps to later in 2021 rather than 2023. We might assume that more businesses to be found in, for example, the north and the midlands will face a reduction in the value of their properties. It would be better for them to take advantage of the reduction in rates sooner rather than later, especially given the challenging trading conditions everybody is going to be facing. I echo what the hon. Member for Blackburn (Kate Hollern) said about more regular revaluations and how that would support our retail industries in a fast-moving property market.

As the hon. Member for North Norfolk said, this is a critical point for the retail industry, and it would be great to see whether we could take the opportunity to rebalance the burden of business rates away from high streets, in recognition of the fact that the retail market is changing in favour of digital outlets, which militates against those retailers that are still based on our high streets. I mentioned the value of high-street shops and maintaining our high streets; we need to see the Government reflect and support that in their rates policy.

I welcome the business rates review, to which we plan to contribute, but I hope it can be done speedily so that we see rates reform take place sooner rather than later, to better support all those businesses that are relying on rates reform to help them through. Will the Minister consider a reduction in the uniform business rate from 50p to 30p, to better reflect how much lower is the volume of retail going through our high streets as people move to digital and online?

[Kevin Hollinrake]

That kind of change to the multiplier would probably cost around £12 billion a year. Does the hon. Lady have any idea of where she would get the money to fill that gap?

[Sarah Olney]

That is an important point and I very much hope that the business rates review will look at it. There is no doubt that online retailers are not currently paying their fair share. Lots of solutions to that problem have been proposed, although I do not think this is the right forum to debate them. There are pros and cons in respect of proposed digital sales taxes, but nevertheless it is a policy area that seriously demands to be looked at. I am sure the hon. Gentleman would agree that high street retail businesses having to bear the brunt of property taxes when they no longer get the lion’s share of the retail market is a situation that cannot continue.

Finally, I just wanted to make the point that we are all expecting a major economic dislocation as a result of the unwind of the furlough scheme and the other measures that the Government have put in place. We are anticipating high levels of unemployment, but one way to mitigate that is through people starting up their own businesses. There are opportunities in the retail sector for those who are looking to start up their own businesses, particularly in constituencies such as mine. We have seen a rise in home working, which has meant that, for the high streets in Richmond Park, there has been a rise in footfall, as people are now at home during the day, instead of perhaps travelling into the city, which is what they would have done previously.

Certainly, speaking to local retailers, I have been quite surprised to find how many of them have thrived over the past few months. They have diversified and found new ways to get their goods to customers. Certainly, the trading conditions are quite strong on our local high streets and, as I say, I believe that that represents opportunities for those who may find themselves out of work in the near future, but I urge the Government to do what they can to lower the barriers to new entrants to the retail markets, so that we can really make the most of these opportunities for new retail businesses on our high streets. That is why I urge the Government to do what they can to address the current rate structure for new businesses.

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

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I have quite significant interests in the business rates system, in terms of my own business, so hon. Members should take that into account.

To touch on the comments from the hon. Member for Westmorland and Lonsdale (Tim Farron), I absolutely agree with his point about the business rates loophole for holiday cottages, and I hope that the Treasury is listening to that. It is an obvious loophole to close, and it affects North Yorkshire like it affects the Lake District.

I very much support the Bill. I sat on the joint Treasury Committee and Housing, Communities and Local Government Committee inquiry into business rates. We looked very carefully at the frequency of revaluation. We took evidence from a number of different sources. Some nations do the revaluation annually, not three yearly, and that would be better from a business perspective. It would give a more current perspective on the trading environment, although we should bear in mind that all business rates revaluations are fiscally neutral. Some people would benefit from a reduction in their business rates valuation, but that would have to be made up elsewhere by the multiplier changing to come back to the £30 billion a year that business rates raise.

I do not know whether hon. Members have a solution to that problem— I have heard a couple of speeches from Opposition Members who say that the business rates system is not fit for purpose, yet only one solution, from the hon. Gentleman. He suggested, potentially, a land value tax, but that has other inherent difficulties because it is, again, a value-based tax. Business rates are a valued-based tax. It has a correlation with the rental value of a property, which is, of course, inherently tied to the capital value of the premises. As Ronald Reagan once said, “There are simple solutions, but there are no easy solutions.” We might all want reform, but finding reform that works and is fair is difficult—I will, however, suggest something before I sit down. The other issue with the current system is that reliefs and changes brought in as a transitional phase mean that those who should benefit from the revaluations do not do so for some time, in order to try to help with people who are “going up in value”. It is far from a perfect system at the moment.

My first hustings took place in the village I have lived near all my life. One question from the audience was about a local retailer where many of us had shopped—Craggs electrical, a good local white goods retailer selling TVs and the like. It had just closed down after many years in that community. Mrs Craggs was in the audience and the questioner said, “Mrs Craggs’ business has just had to close down because of the situation. She cannot pay her business rates. It is just unaffordable. What are the Government going to do about it?” The reality is that Mrs Craggs’ business was closing down not because of Government business rates, but because of the different shopping trends of all the people in that room; all those people were applauding and saying we should take some action, but the reality is that fewer and fewer of us are buying that kind of stuff from shops. So it is not about what the Government are or are not doing; it is about shopping trends.

As my hon. Friend the Member for North Norfolk (Duncan Baker) mentioned, before the crisis, 20% of shopping was done online but that figure has risen rapidly to 35%, which is making the whole system difficult. Most businesses look at the rent and the business rates when they first take on a premises, and then plug that into their cash flow and decide what they can afford to pay. That is what a good businessperson should do. It is not that the business rates system is anachronistic; the pace of change is the problem. At some point in future, when all this has settled down, businesses will say, “We can afford to pay this rent and these rates”, but the difficulty is being caused by the pace of change.

[Sarah Olney]

I am listening carefully, and I bow to the hon. Gentleman’s expertise on this subject, as I know he has studied it long and hard. We have talked a bit about the divide between digital and high street retail. Does he agree that there is a social good to be achieved in supporting high street retail and that the Government should perhaps express a preference for it over digital through the tax system?

[Kevin Hollinrake]

Yes, I absolutely agree with that. Community is very important to me and our shops are part of those communities. It is dangerous when the Government start picking winners—I do not think that should happen. The forces of free markets and a market economy are the best things to ensure that prices are kept low and levels of services are high for consumers. That is what is most effective. So what we have to try to do, of course, is create a fair and level playing field, and let businesses come in to fill that gap and provide services that people want. That is what we should be looking to do.

In its review of business rates, the Treasury talks about different options, including an increase in VAT, changes to corporation tax and an online sales tax. It seems to land on the online sales tax as the solution, so let me talk about a couple of things that it sets out in that consultation. It sets out not that an online sales tax will replace business rates, but that it will exist alongside them—that is a key thing to understand—and that it will potentially lead to a reduction for retail. So there will be two systems coming together.

I have heard a few Members talk about retail in this debate, but the changes in consumer behaviour are not just about retail. Uber Eats and Deliveroo, for example, deliver to people’s houses often not from takeaway premises on the high street but from mini-establishments off the high street. Travel agents, insurance brokers, banking—all those things are changing because of consumer habits; people do not visit shops anything like as much as they used to. Looking at the problem purely from a retail perspective is wrong; doing so does not understand the problem.

Another issue is what is online? One of my fantastic local butchers in Thirsk is Johnson’s, an order-in butcher’s, which has wonderful meats, but does not seem particularly the type of business that would go online. I visited them during the crisis, because they had set up a delivery service and offer click and collect, as well as traditional shopping. They have even set up a little bot from which you can order, which talks to you using artificial intelligence—very clever stuff and really innovative, which was great; but how would you assign an online sales tax to those different categories? It would be hugely complex for a business to work out what was bought purely online, what was bought on click and collect and what was bought by customers walking into the store. It would make the system more complicated. The more we try to simplify the tax system, of course, the more complicated we make it. There are some inherent flaws in an online sales tax; it is so very difficult. The problem of distinguishing between online, click and collect and physical shopping is inherent in lots of different businesses, John Lewis being an obvious example. It is not clear how such a tax would operate without making the system more complex.

Simple and easy are two different things. The simple solution, which will not be universally popular, is to look at sales tax. We already have a sales tax; it is called VAT. The simplest thing to do would be to raise VAT. We could not just put a hole in the business rates system—some 30 billion quid—without replacing it with something, certainly not given where the public finances are today. Putting 2p on VAT, would raise £12 billion a year; 4p on VAT would raise £24 billion a year. We could also look at the threshold system of VAT, which is a real deterrent for businesses to grow. If we want a simple solution that is effective and crosses all the different sectors, it is there. It is fair and would keep the tax system as simple as possible.

I urge my very good friend the Minister on duty, the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst), and the Treasury to think about the full extent of the problems, as well as the potential quick wins. When compared with an online sales tax, VAT is a much better system to operate.

United Kingdom Internal Market Bill

Sarah Olney Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 29th September 2020 Commons Chamber

[Ian Blackford]

My hon. Friend is right. Those on the Government Benches know that a referendum is coming; we should just get on with it.

This Bill gives Westminster direct spending control in devolved areas in Scotland—in health, education, housing and transport—and the people of Scotland know from long and bitter experience that the Tories cannot be trusted to spend money in Scotland. The Tories will look after their own interests. They will never support Scotland’s interests, as tonight demonstrates. The passing of this Bill gives the Tories free rein to bypass Scotland’s Parliament and the democratic priorities of the Scottish people.

The democratic principle of the right to choose our own form of governance is at the heart of what is at stake if the Tories force this legislation through tonight. They can try to deny it all they like, but it is the Tories themselves who are breaking the constitutional settlements that have been democratically supported across these islands. This legislation rips apart Scotland’s claim of right, which enshrined the sovereign right of the Scottish people to determine the form of government best suited to their needs. That claim of right was debated on an SNP motion in the last Parliament, which was passed without objection.

It is a long-held principle that sovereignty in Scotland rests with the people of Scotland, not with Westminster. That historic right has its roots in the declaration of Arbroath and formed the basis of the determination in the case of MacCormick v. the Crown by Lord Cooper, when, as Lord President of the Court of Session, he gave his opinion that

“the principle of unlimited sovereignty of Parliament is a distinctively English principle and has no counterpart in Scottish constitutional law”.

The principle of the sovereignty of the people of Scotland is under attack in this Bill.

[Sarah Olney (Richmond Park) (LD)]

Does the right hon. Gentleman agree that there are plenty of reasons to oppose this legislation that do not necessarily involve the case for Scottish independence?

[Ian Blackford]

The fact is that, as a consequence of the attack on the powers of Scotland’s Parliament, people in Scotland are making the determination that they wish our country to become independent as soon as possible.

This Bill undermines the settled will of the people of Scotland, who voted in a referendum on the basis of our Parliament having control over spending in devolved matters. It is that fundamental—it is that serious. This is a defining moment. The UK Government are attempting to block the sovereign right of the Scottish people to decide Scotland’s future.

United Kingdom Internal Market Bill

Sarah Olney Excerpts

Tuesday 22nd September 2020 Commons Chamber

[Derek Thomas]

What I am clear about, which is why I said at the beginning I was more nervous until we got to this part of the debate, is that there is very little risk that we will breach any international law or even that this Act will be needed. I am confident that we will continue to work for the free trade agreement, and I am confident we can avoid that, and, if and when it comes to it, I am confident that it will be Parliament that triggers these provisions or not.

Returning to our fishermen, they have followed our lead and they are confident that, as a country that abides by the rule of law, international law will be on their side, so we must press ahead, but with great caution; I agree with the comments made on that. People expect their MPs to work in their best interests and the UK interest first and foremost. In my view, the motivation of every colleague who votes in favour of the Bill is to do just that.

[Sarah Olney (Richmond Park) (LD)]

It is a pleasure to serve under your chairmanship, Dame Rosie. I rise to speak on behalf of the Liberal Democrats on parts 1, 2 and 3 of the Bill.

In part 1, which deals with the principles of non-discrimination and mutual recognition of goods, the Secretary of State proposes to award himself the power to vary the statutory requirements included in the mutual recognition principle by statutory instrument. The Bill states that he has only to consult with the relevant Ministers in Scotland, Wales and Northern Ireland, rather than to receive their consent. I put it to the Government that that undermines the ability of the devolved legislatures to set standards for the goods being sold to the citizens in their nations.

[Jonathan Edwards]

I am sorry for interrupting the hon. Lady so early in her speech, but she hits on a key point. There is a world of difference between consulting and consenting. Any respect agenda must be based on the latter as opposed to the former.

[Sarah Olney]

I entirely agree. I was going on to say that the Secretary of State also awards himself the power to vary the statutory requirements in the non-discrimination clause, such as on transportation and inspection of goods or regulation of the markets, in the same way. Is it not the case that, should the Secretary of State find that such requirements no longer suited the needs of English producers, he could change them, to the detriment of Scottish, Welsh or Northern Irish producers, without the express consent of their Governments?

[Craig Williams (Montgomeryshire) (Con)]

I wonder whether the hon. Member might reflect on the fact that this is a UK Government—a Government for all four nations. As a Welsh Member, may I ask her also to reflect on how the Bill changes the relationship with the devolved Administrations from the way it operated with Brussels, where, of course, the DAs were consulted by the member state rather than consent being reached?

[Sarah Olney]

The hon. Member touches on quite an important point. I do not believe that it is in the scope of the Bill to address this, but of course we have devolved Assemblies for Scotland, Wales and Northern Ireland, yet no similar provision exists for just English matters. That presents a constitutional anomaly, which arises in situations such as this. That is why I made the point that where the interests of English producers are reflected, it is only by the Secretary of State, who should be acting for the whole of the UK. It is precisely that principle that the Bill seeks to undermine.

The plans for mutual recognition of qualifications are welcome, especially the exclusions for areas such as law and healthcare, where there is already a great deal of divergence across the four nations, but it is concerning that the exclusions do not extend to education. As was pointed out earlier, there is already substantial divergence, which could disadvantage our children and young people.

The overriding concern is that the Government in London could quietly amend these requirements and exclusions without the consent of the devolved Administrations, or even a further vote in Parliament, to accommodate new trade agreements with international partners. The Trade Bill also completed its passage through this place untroubled by any attempt to impose parliamentary scrutiny requirements on it. That leaves the Government free to negotiate any kind of trade agreement they choose with any international partner and accept whatever conditions that partner wants to impose—access to our markets, reduction of the standards we impose on goods sold in this country, reduced professional standards and oversight, or changes to any one of dozens of other conditions that we have actively chosen to impose for the health and welfare of our citizens.

Back in December, this Government won for themselves the right to implement Brexit in any way they chose. As a second choice to remaining in the European Union, I would have hoped for ambitious plans to manage a just transition away from carbon-emitting industries, with the creation of new green jobs and a highly skilled workforce. I would have hoped for a United Kingdom that looked to be a leader in promoting human rights, international development and the battle against climate change. Was it too much to hope that the promised sovereignty, which was so precious that everything had to be sacrificed to it, would be granted to Parliament to help steer the course of our independent future?

Instead of a Brexit that underpins our Union, supports our businesses and promotes the United Kingdom as a global leader, we have this sordid Bill. It promises a Brexit that diminishes and disempowers our nation and its constituent parts. It shames us on the world stage, presenting us as a country that, far from being a beacon of democracy and probity, hoards power in the hands of unelected advisers and breaks international law when it suits its purpose. It heightens division between our nations instead of binding us together in a unity of purpose that will strengthen us on the global stage.

It has been suggested that this is some clever negotiating tactic in the discussions with the EU on our future trading relationship.

If that is the case, the Government should stop playing games and apply themselves to providing for the very real challenges faced by business as we anticipate the end of the transition agreement at the end of December. What progress has been made in recruiting the additional 50,000 customs agents who will be needed to complete the estimated 220 million extra import and export declarations in 2021? What progress has been made towards negotiating a replacement for the Dublin agreement, which enables us to return migrants to the country where they first claimed asylum? What of provisions for data sharing between the EU and the UK, or the sharing of information between our security services? Our businesses are already operating at a time of heightened uncertainty—which increased as we learned today of new restrictions on activity—and they need urgent action to resolve these issues.

Business and Planning Bill

Sarah Olney Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Tuesday 21st July 2020 Commons Chamber

[Felicity Buchan (Kensington) (Con)]

I rise to support these amendments. On Second Reading, I called for a restriction on alcohol off-sales to 11 pm, so I am delighted that that amendment has been accepted. We need to strike the right balance between getting our economy up and running and the interests of residents, who in certain parts of London have been subject to a lot of anti-social behaviour—in particular, in Notting Hill in my constituency. These amendments strike the right balance, and I commend them to the House.

[Sarah Olney (Richmond Park) (LD)]

I can only echo what the hon. Member for Kensington (Felicity Buchan) said about anti-social behaviour, which has been an absolute plague on communities across London and, I am sure, elsewhere. In my community in Richmond Park, we have had behaviour the like of which we have not seen before. It has been an enormous burden for local people.

I welcome the Lords amendments. I am slightly disappointed that the amendment that my colleague Lord Paddick put forward about serving alcohol in open glass containers was not adopted, because that would have had a significant positive impact on the situation that many people are experiencing.

To add to what I said on Second Reading, I urge the Government to think again about the number of police officers in London. We in Richmond are certainly finding that, because police officers are always focused on violence reduction and that is a particular issue for some of the inner London boroughs, we are missing out on the increase that we need for neighbourhood policing in places such as Richmond, which would do much more to keep a lid on some of the antisocial behaviour we are seeing. We have heard about the extra officers that are coming, and I really hope that they are coming very soon, because we would like to see them in Richmond.

I echo what the Minister said about the passage of this Bill, its speed and the constructive nature in which everyone has engaged with it. This is going to be a great piece of legislation, and I support the amendments.

Corporate Insolvency and Governance Bill

Sarah Olney Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Thursday 25th June 2020 Commons Chamber

Finally, while the Secretary of State and the Minister should be working to champion these sectors, which are vital to so many, will the Minister also take the practical step of supporting the SNP amendment to the Finance Bill that would stop HMRC’s planned vulture powers? Two policies in part 4 of the Finance Bill could damage business lending even more. Preferential status represents a significant challenge to the UK’s business community and access to working capital finance. Preventing tax avoidance, evasion and phoenixism is vital, of course, but that measure is not the way to do it, so will the Minister indicate his support for our amendment to the Finance Bill?

[Sarah Olney (Richmond Park) (LD)]

It is pleasure to be here on behalf of the Liberal Democrats. Along with other Opposition parties, we support the Lords amendments.

I have taken the opportunity of the easing of some of the lockdown restrictions to get out and about in my constituency and speak to some of our local business owners who are beginning to reopen on the high street. It is quite a positive picture. Many of them have implemented diverse ways of selling to their customers and diversified their offering. They have got through the difficult stage of the lockdown and they are optimistic about the future, but I am conscious that that is not necessarily representative of all sectors and all parts of the country. The economic disaster that we are expecting as a result of the lockdown is really only just beginning to play out. In every news bulletin, we see more redundancies —Swissport yesterday, Royal Mail today—and we know that this is just the start. Therefore, it is incumbent on us all to be shrewd about the legislation that we need to pass to meet this challenge.

It is important that we strike a balance in the Bill between enabling the release of capital from companies that are going to fail, so that it can flow to new ventures with better prospects and secure future employment, and shoring up existing companies and jobs that will be viable once they can trade profitably again. For that reason, we welcome the moratorium provisions. We particularly welcome Lords amendments 67 to 71, which define the priority status of creditors and limit the powers of banks to take precedence in calling in their debt. That allows the moratorium to be more effective, as companies can then prioritise employees and other creditors.

I think that will be increasingly important not just once the immediate crisis has passed but in the coming years. TheCityUK estimates that there will be £100 billion of unsustainable lending in quarter 1 of 2021. That really does need to focus the mind, in respect of not only the Bill but future Government policy. The moratorium provisions will play a part in ensuring ongoing stability next year, but they would have been undermined if banks could not be restrained from taking their cut first, as the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) mentioned.

When businesses can function again after the crisis, it will be important above all to be able to protect jobs. We welcome the amendments that strengthen the protection of pension schemes in particular, but I echo what the shadow Minister, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), said: it is disappointing that the Bill does not go further. We do, though, recognise the importance of speed. For that reason, we also welcome the amendments that extend the temporary provision to 30 September. We believe that to be a prudent decision.

I wish to take this opportunity to echo other Members’ calls for measures for the theatre industry in particular. I have three theatres in my constituency and the industry is an important part of Richmond Park’s society and culture. I emphasise the fact we are trying not only to meet the challenge of the coronavirus crisis but, for the first time in 40 years, to become an independent trading nation. We should focus on the fact that globally we have a massive competitive advantage with our theatrical industry. Our entire performing arts and cultural sector is something in which we are world beating. If we want to start to export the things that are greatest about Britain, we really must support the sector urgently.

As other Members have highlighted, our theatre sector is facing a crisis and needs an urgent bail-out. Not only it is so important for all the jobs and all the future income that it can bring—not just to individual communities but to the nation as a whole—but it is a seedbed for our film and TV industries, which are also world beating and will be looking to get back on their feet as soon as they are able. I particularly single out theatres for help because we have one in every community—even in the highlands of Scotland, as the hon. Member for Inverness, Nairn, Badenoch and Strathspey pointed out—and they have a critical role in the community at this time. Not only can they shore up employment in local areas, but they can play a vital role in helping children to reconnect with the education on which they have missed out over the past three months. I hope the Minister agrees that that is of absolutely first priority across Government at this time.

Our theatres have large spaces in which social distancing can be practised. They are experienced in education—the Orange Tree theatre in my constituency certainly has a very well-developed education programme—and can provide all kinds of programmes over the summer, particularly to help out young people who may have been unable to access online learning and perhaps do not engage well with traditional forms of learning. We have a fantastic opportunity to reconnect those young people with new ways of learning to stimulate their creativity.

Above all, when the lockdown is over—when we can communicate face to face with each other again—I want everybody to have the opportunity to experience a live performance, because we have all spent too long staring at our unresponsive laptop screens. We want live theatre, live music and visual arts. We want to reconnect face to face again. If we do not have a thriving theatre in every community, it will be much harder to deliver that. For the sake of the theatre industry and the benefits it can bring, not only in actual income but in projecting the United Kingdom to the world, which is more important now than it ever has been, I urge the Minister to make representations to the Government as a matter of absolute urgency to support the theatre industry.

Corporate Insolvency and Governance Bill

Sarah Olney Excerpts

Committee stage & 3rd reading & 3rd reading: House of Commons & Committee: 1st sitting & Committee: 1st sitting: House of Commons
Wednesday 3rd June 2020 Commons Chamber

[The Chairman of Ways and Means (Dame Eleanor Laing)]

I thank the hon. Gentleman for his point of order. I can well understand his consternation. The behaviour of hon. Members when they are outside this building is, of course, not a matter for the Chair, but what is a matter for the Chair and for Mr Speaker is the safety of Members of this House, of people who work here, and of the many, many people who have continued to work here, through a sense of duty, during these last difficult weeks. It will be obvious to the Committee and to anyone watching our proceedings that Mr Speaker has gone to a great deal of effort to make sure that Members and staff working here are protected. Social distancing rules, as one can see by looking at the Benches and the way in which this entire building is now set out, have been very rigorously developed to make sure that everyone who works in this building, who is here to do their duty, is protected and will not put other people, including their constituents and their families, at any risk.

If any Member of this House is openly flouting the rules that we have asked every citizen of the United Kingdom to observe to keep the virus under control, and to protect the vulnerable and to protect the NHS, then that Member is putting not only himself or herself at risk, but everyone else at risk as well. I hope that the hon. Gentleman’s observations will prove not to have been accurate. I am not suggesting that he would say that they were, but I cannot make any comment until I know the facts for certain. I hope that the facts are not as he has stated them, but if it transpires that the facts are as he has stated them, then it should be incumbent upon anyone coming into this building, if they know that they have put themselves at risk of contracting or passing on the virus, to act responsibly. I thank the hon. Gentleman for his point of order.

We will resume the Committee stage. I was hoping I would have some sort of indication that someone might wish to speak. I call Sarah Olney.

[Sarah Olney (Richmond Park) (LD)]

Thank you, Dame Eleanor. I was not expecting to be next, but I willingly take my place. I state my intention not to press my amendments, but I would just like to say a few words on why I tabled them.

We are in an emergency situation. The response to coronavirus has been first and foremost a public health response, but the necessary measures taken to contain the spread of this appalling virus, supported by all the hon. Members of my party, have now resulted in an economic crisis. While we look forward to a point where the public health emergency has passed at least sufficiently to allow some semblance of a normal life, the economic crisis is likely to have longer and more far-reaching effects. In my constituency, as in those of every parliamentary colleague I am sure, the most immediate impacts are being felt by our small businesses and the self-employed. If we are to plot the most effective path out of this crisis, it is to our small and growing businesses that we should allocate the most care and attention. Apart from the important role that they play in supporting our communities and providing jobs, the new businesses that will emerge from the current shutdown will be offering the innovative goods and services necessary for a new way of life that we may have to get used to. Our recovery—both physical and economic—depends on the next generation of entrepreneurs, and it should be the first priority of the Secretary of State to identify and support them.

The Liberal Democrats support the temporary measures in the Bill. They are sensible measures that should carry successful businesses through the current crisis until such time as they can thrive again on their own terms. We support them, however, only as temporary measures designed to respond to the specific challenges posed by the current crisis. We oppose the bundling into the legislation of permanent changes to our insolvency and corporate governance processes. Permanent changes should be subject to a greater level of scrutiny and debate. My amendment 14 sought to put all the proposed changes on a temporary footing, able to be renewed, but also allowing the proposed permanent measures to be reintroduced to the House at such time as we may be able to consider and debate them properly.

Introducing the proposals as temporary measures would also allow their effect to be properly analysed. Our particular concern is for the ipso facto clause, which can be triggered if an insolvency effectively ends a contract to supply. This will require key suppliers to continue to supply struggling companies, despite the risk that they may not get paid. This transfers the risk from the struggling company to the supplier, which, whether in an economic crisis or not, is unacceptable. In times when cash flow is limited, it is not sufficient protection for a supplier to get in the queue with other creditors in the event of one of its customers falling into administration. Suppliers should retain the right to choose to withdraw their services if they perceive that their resources will face a lower risk return elsewhere. To compel them to continue their supply would be unethical.

I am particularly concerned that such a change would have a disproportionate impact on smaller businesses, especially those that only have the capacity to service a handful of clients, and would be unduly disadvantaged by being required to supply goods and services without the certainty of being paid. I accept that there is a balance to be struck between the needs of customers and suppliers, and that during these difficult times supply chains are critical and need to be supported, but we need to take time to consider the long-term risks of introducing such a change to our insolvency procedures, and the introduction of emergency legislation is not that time.

The acid test of any new legislation at this time should be whether its provisions stimulate and support economic activity. There will be, regrettably, some businesses that will not survive the shutdown. For the sake of those who lose their jobs and livelihoods, it is imperative that capital and investment can be quickly diverted towards those endeavours that can thrive and provide new employment and economic activity. The increase in the scope of exclusions to the ipso facto clause will have precisely the reverse effect, injecting precious working capital into companies that cannot create economic value from it. Now more than ever is not the time to restrict our small business activity in such a way. I urge the Government to adopt the Liberal Democrat proposal that all the provisions of this Bill be time-limited and that we consider the permanent provisions more fully at a later date, when we would have greater insight into the impact of their introduction on our business environment.

[Lucy Powell]

We are happy to withdraw our amendment on the basis that the Minister undertakes to address the concerns of the trade unions leadership—concerns which they have raised with us about the loss of rights that may result from the Bill—in his meeting with them tomorrow. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clauses 1 to 47 agreed to.

Schedules 1 to 3 agreed to.

Schedule 4

Moratoriums in Great Britain: temporary provision

Amendment made: 15, page 144, line 14, at end insert—

“Part 5

Entities other than companies

91 Regulations under section 14(1) of the Limited Liability Partnership Act 2000 may make provision applying or incorporating provision made by or under this Schedule, with such modifications as appear appropriate, in relation to a limited liability partnership registered in Great Britain.

92 An order or regulations under section 118(1)(a), (3B) or (3C) of the Cooperative and Community Benefit Societies Act 2014 may provide for provision made by or under this Schedule to apply (with or without modifications) in relation to registered societies (or to registered societies of the kind mentioned there).”—(Paul Scully.)

This amendment ensures that powers to apply Part A1 of the Insolvency Act 1986 to certain entities can also be used to apply Schedule 4 to the Bill.

Schedule 4, as amended, agreed to.

Schedules 5 and 6 agreed to.

Schedule 7

Moratoriums in Northern Ireland: further amendments

Amendment made: 16, page 165, line 4, leave out “2 to 8” and insert

“2 to 5, 7 and 8”.—(Paul Scully.)

This amendment removes the repeal of paragraph 6 of Schedule 1 to the Insolvency (NI) Order 2002, as the amendment made by that paragraph remains relevant for certain limited purposes.

Schedule 7, as amended, agreed to.

Schedule 8

Moratoriums in Northern Ireland: temporary provision

Amendment made: 17, page 178, line 14, at end insert—

“Part 5

Entities other than companies

55 Regulations under section 14(1) of the Limited Liability Partnership Act 2000 may make provision applying or incorporating provision made by or under this Schedule, with such modifications as appear appropriate, in relation to a limited liability partnership registered in Northern Ireland.

56 An order under Article 10(2) of the Insolvency (Northern Ireland) Order 2005 may provide for provision made by or under this Schedule to apply (with or without modification) in relation to—

(a) a registered society within the meaning of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, or

(b) a credit union within the meaning of the Credit Unions (Northern Ireland) Order 1985.”—(Paul Scully.)

This amendment ensures that powers to apply Part 1A of the Insolvency (Northern Ireland) Order 1989 to certain entities can also be used to apply Schedule 8 to the Bill.

Schedule 8, as amended, agreed to.

Schedule 9

Arrangements and reconstructions for companies in financial difficulty

Amendments made: 18, page 180, line 17, leave out “and 901I (special cases)” and insert “(moratorium debts, etc)”.

This amendment is consequential on amendment 21.

Amendment 19, page 181, line 44, leave out from “etc),” to end of line 1 on page 182.

This amendment is consequential on amendment 21.

Amendment 20, page 183, line 34, after “as” insert “including”.

This amendment makes a minor drafting correction.

Amendment 21, page 184, leave out lines 7 to 30.

This amendment removes enhanced protection for creditors with interests in aircraft equipment, which will make it easier for airline companies to make use of the new restructuring process provided for by Part 26A of the Companies Act 2006.

Amendment 22, page 194, line 40, leave out “and 899B (special cases)” and insert “(moratorium debts, etc)”.

This amendment is consequential on amendment 25.

Amendment 23, page 194, line 44, leave out from “etc),” to end of line 45.

This amendment is consequential on amendment 25.

Amendment 24, page 195, line 24, after “as” insert “including”.

This amendment makes a minor drafting correction.

Amendment 25, page 195, leave out from end of line 42 to beginning of line 21 on page 196.—(Paul Scully.)

This amendment removes enhanced protection for creditors with interests in aircraft equipment, which will make it easier for airline companies to make use of the existing restructuring process provided for by Part 26 of the Companies Act 2006.

Schedule 9, as amended, agreed to.

Schedules 10 to 14 agreed to.

The Deputy Speaker resumed the Chair.

Bill, as amended, reported.

Bill, as amended in the Committee, considered.

Bill read the Third time and passed.

Lifting the Lockdown: Workplace Safety

Sarah Olney Excerpts

Wednesday 6th May 2020 Commons Chamber

[Paul Scully]

I am grateful to my hon. Friend for that question. She is absolutely right, and that is why we have consulted as widely as possible. We will continue to do so, because we need to ensure that all these guidelines give confidence to people in every type of workplace, in every part of the UK. It is also important to reiterate that many companies are still operating. We need to ensure that our economy stays open and working, so that we can bounce back as quickly possible, and those companies are already offering best practice for that.

[Sarah Olney (Richmond Park) (LD) [V]]

I have been speaking to lots of businesses over the past few days and they are all obviously very keen to get back to work as soon as possible, but their big concern is not only the safety of their staff but what liability the business would have to bear if one of those members of staff got sick despite their best efforts to ensure their safety. I would really like to hear what the Minister has to say to give businesses reassurance on that point.

[Paul Scully]

In the first instance, what I would say to the hon. Lady is that as well as employers working on that guidance and ensuring that they are offering a safe place, employees and workers need to know that they have the right and the opportunity to approach the Health and Safety Executive and local authorities to make sure that existing legislation and guidance are being followed.

Assisted Dying Law

Sarah Olney Excerpts

Thursday 23rd January 2020 Westminster Hall

[Christine Jardine]

I take the hon. Lady’s point. That is the purpose of this debate. It is intended to get the ball rolling, look for the evidence, find out what people are afraid of, and consider the safeguards we need and how the law can be improved. We are not going to do that overnight. We certainly are not going to do it today, and I will not suggest any changes today, other than to say that we should look for the evidence and at what people want from the law.

Since this debate was publicised, I have been contacted—I am sure we all have—by a number of constituents. In some cases, they called for caution; in others, they expressed their opposition. However, in very many more, they expressed support. One in particular that I found moving came from a woman who was a palliative care nurse for more than 20 years, and who during that time witnessed numerous examples of the current assisted dying law failing dying people. One example she gave was of a gentleman with motor neurone disease who had a particularly undignified final few months of life. He was cared for at home at first before moving into a hospice, where he clearly expressed the wish that he wanted help to die. The staff had to explain to him and go over the reasons why they could not do that; it simply was not possible.

This gentleman’s motor neurone disease had affected him in such a way that his legs were still working, but he was not able to use the top half of his body. One day, he tried to throw himself down the stairs as a way of ending his life. Despite him fully admitting that he was trying to end his life, some of the staff understandably claimed that he had probably fallen, and that it was an accident. Perhaps they did not want to admit or acknowledge what he had tried to do, because of the position in which the law put everyone, but that gentleman did not get to express his distress about the way he would die or have it addressed as he wanted. I understand he lived for another two months or so before he died in a hospice. I am grateful to my constituent for sharing that story because it highlights the invidious position in which the current law puts everyone.

[Sarah Olney (Richmond Park) (LD)]

Does my hon. Friend agree with me that that story highlights a key issue that we are all wrestling with: the capacity to consent? My hon. Friend has made the point clearly that this has to be a choice, and that safeguards must be in place to ensure a person has the capacity to make that choice.

[Christine Jardine]

My hon. Friend makes an excellent point. Capacity is important. As I have already said, it is not for me to say what the law should be; I simply ask that we address it, and that we take such points into account. I ask that we look at mental capability to make the decision, at when the decision might be made and at safeguards.