Finance Bill

Debate between Sarah Olney and Jim Shannon

Report stage
Monday 5th February 2024 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

On behalf of myself and my Liberal Democrat colleagues, I express our sympathies to the King and his family, and our hope that his treatment will prove to be successful.

I will speak to amendments 1, 2 and 3, in addition to new clause 5. To reiterate, the Liberal Democrats are not supportive of the Bill, which is a deception from the Government after years of cruel tax hikes on hard-working families. The legislation maintains the Government’s unfair tax rises on working families through the freezing of income tax thresholds, fails to invest properly in our public services, such as the NHS, and takes none of the vital steps needed to grow the UK economy. Some of the measures in the Bill have worthy aims, but the context is important from the outset.

Amendments 1, 2 and 3 make further changes to the new R&D regime defined in the Bill. While the changes may be necessary and sensible clarifications, just last week, colleagues in the other place, sitting on the Economic Affairs Committee, reported their concern

“that the number of significant R&D changes made in the last 5 years has led to a perception of instability in the UK’s R&D tax relief regime and undermined the intended incentive effect of the relief.”

What businesses need more than anything is certainty and stability. The Government’s chopping and changing on R&D is indicative of a wider failure to create a stable and settled environment in which business can flourish.

Perhaps the clearest example of that has been the scrapping of the UK’s industrial strategy and the disbanding of the independent body overseeing it. This short-sighted step has robbed businesses of the stability they need to grow. The constant changes to the R&D relief regime are a clear example of how that lack of foresight and stability can undermine the aim of economic growth. Once again, I urge the Government, even at this late stage, to relaunch an industrial strategy. A proper industrial strategy can create the conditions for sustainable growth, including through effective and clear incentives for R&D investment, especially among SMEs, and ensure that the UK’s regulatory, R&D and tax frameworks are geared towards fostering innovation.

New clause 5 introduces an exemption to the energy generator levy for new plant investments. The Liberal Democrats believe that, although this may help to strengthen investment in renewable energy and contribute towards our net zero targets, the Government’s own assessment of the measure notes that it is unlikely to affect the retail price of electricity for households as energy prices remain tied to gas prices.

The Bill, and the autumn statement from which it arose, does nothing to help families with soaring energy prices or to put a proper windfall tax on the oil and gas giants. The Government continue to sit on their hands as businesses and families struggle with energy price inflation. A windfall tax on the super-profits of oil and gas producers could raise significant revenue which could have paid for a targeted package of support for those worst affected by the energy crisis, by doubling the warm home discount and investing in an emergency home insulation scheme. It remains clear that November’s autumn statement and the Finance Bill both represent a missed opportunity to address the crisis in energy prices.

To conclude, while the Liberal Democrats are supportive of certain measures within the Bill, such as the extension of full expensing, we cannot support any legislation that arises from such a deceptive and unjust autumn statement. Ultimately, British households are seeing the biggest fall in living standards since the 1950s, and households across the country are crying out for real support from the Government, for action on the cost of living crisis and investment in our NHS, but all we have heard is more stale announcements from a Conservative Government who are completely out of touch.

[Jim Shannon (Strangford) (DUP)]

I concur with the comments made by others about King Charles, on my behalf and that of the Democratic Unionist party and his loyal subjects in the United Kingdom of Great Britain and Northern Ireland—especially Northern Ireland. I pray, as I know you do, Mr Deputy Speaker, as well as others in the Chamber, for King Charles and for the royal family. I pray for a speedy recovery to his health. I pray, as we all pray, to the great healer, omnipotent over all, that his family will know the peace of the Lord as they support him at this time.

I thank all those who have contributed to this Bill debate, and I thank you, Mr Deputy Speaker, for giving me the chance to participate. Understandably, much of the Bill focuses on the measures that are needed to deliver the autumn statement. The Minister understands that—I would like to welcome him to his place. As he knows, I hold him in great respect, and look forward to his responses at the end of this debate.

For every public sector pay rise that is rightly awarded, money must be raised, and therefore we all support the principle of this Bill in theory. However, in practice, not many of us want to sign off on a Bill that raises taxes for those who are struggling at present. Obviously, as prices have risen, obligations have gone up correspondingly. Northern Ireland has been seeking a complete removal of the air passenger duty as a way of enhancing our connectivity and our attractiveness to international business investment. As a result, the rise in APD is disappointing. I know what the Minister’s response will be. We are all aware of what the renewal of Stormont means: it means that we can look at this matter ourselves. None the less, the renewal of the Assembly has also highlighted the issue of the allocation of finances. It is clear that an overhaul of the funding formulas for Northern Ireland is necessary to meet the need in the long term.

Before I left the office this morning, I heard the Secretary of State for Northern Ireland on the radio saying that he hoped that a new funding formula would be found for Northern Ireland. We on the Northern Ireland Affairs Committee have also put forward that view. It is matter that involves all parties. The hon. Members for Belfast South (Claire Hanna) and for North Down (Stephen Farry) join us in wanting the same. That is three of the political parties in Northern Ireland that want that formula. There are also labour Members who support the view, along with a number of Conservatives with some concerns. We are all pushing for a formula similar to the Welsh system. If that comes into place, we in Northern Ireland would benefit, and that is only fair and right. I am highlighting this because if we as a party wished to do something about air passenger duty in the Northern Ireland Assembly, or if a cross-party group were wishing to do the same, we would need to have that formula in place. As I say, we are looking for fair funding for the future.

The £3.3 billion that has been made available now is money that many of my constituents believe has been withheld, and that is welcomed. Ever mindful of the positivity that came out of the debate last week, I say let us be positive in looking forward—

Pupil Roll Numbers and School Closures: London

Debate between Sarah Olney and Jim Shannon

Wednesday 7th June 2023 Westminster Hall

[Sarah Olney (Richmond Park) (LD)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Vauxhall (Florence Eshalomi) on securing this debate and on her thought-provoking opening speech. Her personal reflections remind us all that children are at the heart of this. They only get one go at a primary and secondary education. It is up to us and the Government to ensure that their experience at school is as positive as it possibly can be. It is so important that we discuss this particular issue: it has already been said that it is very much an issue in Lambeth, and I see the particular pressure there, but we are also experiencing it in the outer boroughs of Richmond and Kingston.

I am pleased to be able to put forward my concerns and those of my constituents regarding the financial sustainability of schools across London in the light of falling pupil numbers. As has been said, schools throughout the capital have seen a significant decrease in enrolment in recent years due to the 17% decrease in the birth rate in London over the past decade, as well as shifts in local child populations following Brexit and the pandemic and their impacts on our local demographics.

For my constituents in Richmond Park, the resulting higher proportion of unfilled school places has resulted in a really worrying decrease in school budgets, which are determined on the basis of headcount rather than assessment of need; I pay tribute to the hon. Member for Ruislip, Northwood and Pinner (David Simmonds) for his very detailed speech setting out how these decisions are made and the impacts that they have. The Government must ensure that the quality of education and the wellbeing of our children do not decline along with the headcount. I am already hearing from primary and secondary school headteachers across my constituency that funding pressures are resulting in impossible decisions over which cuts to make.

One impact that I am seeing in the Richmond part of my constituency, which goes across the Richmond and Kingston boroughs, is that many of our primary schools are single form entry and have been for many years. When there are falling roll numbers in a single form entry school, it has a massively disproportionate impact on the budget, because, as the hon. Member for Ruislip, Northwood and Pinner said, so much of it is allocated on a per-head basis. All the fixed costs do not decrease with the number of children on roll, so when schools are funded on a per-head basis, the impact on single form entry schools, of which I have a number in my constituency, is disproportionate. I would like the Minister to address that.

[Jim Shannon (Strangford) (DUP)]

This debate is clearly about London, but I always come along to support Members, and I want to support the hon. Member for Vauxhall (Florence Eshalomi) today. I apologise that I was not here at the beginning of the debate; I wanted to be, but I was speaking at another event and could not be here quicker.

The focus for me back home in my constituency is children with special needs. I have never in all my life seen as many children with special needs. I do not know whether that is because there is more recognition of those needs now, but money needs to be set aside for them. The reason I say that is quite simple: schools pave the way for instilling the qualities and skills that children require to better themselves for potential apprenticeships, further study and employment. Children are a treasure. We have a responsibility, and the Minister and Government have a responsibility, to make sure we do better for children and prepare them for the future. Does the hon. Member for Richmond Park (Sarah Olney) agree?

[Sarah Olney]

It is always a privilege to take an intervention from the hon. Member. I do agree, particularly with his point about special educational needs.

Some headteachers in my constituency are having to make extremely difficult choices about how to allocate their reduced budgets, which are being cut because of falling rolls. Some are being forced to cut back on the number of teaching and support staff they employ, which has an additional impact on those with special educational needs or on the variety of subjects and extracurricular activities they offer. Others are not able to purchase essential classroom supplies or to fund pay rises for their hard-working teachers. Some cannot afford the necessary resources to support not only students with special educational needs, but the growing number of students who are coming to school with mental health and emotional challenges, which is an emerging cause for concern. A decline in pupil roll numbers that directly feeds a decline in school funding is only exacerbating those impacts.

Many parents and teachers in my constituency have written to me about the effects of the tightening school budgets. One primary school headteacher reached out to inform me of the difficulties of caring for children with special educational needs when they have limited funds. He said:

“Each school incurs a significant cost when enrolling a child with special educational needs, and while my own commitment to inclusive education for all will never be dampened, I am aware of school leaders who have been put in the impossible position of not being able to afford to support these children.”

One concerned parent wrote to me about a request from their children’s school for financial donations, just so that the school could

“maintain the basic services they provide.”

I have also received letters from children, with one schoolgirl writing to say:

“An example of schools needing more money was when my French teacher couldn’t provide any of the necessary worksheets because she had run out of money to use the school printer.”

I welcome the recent relaxation of the rules relating to which schools experiencing a decline in pupil numbers can benefit from a falling rolls fund, but, crucially, this does not make carving out the money for a fund any more affordable. I have spoken to councillors in my constituency, who tell me that having a falling rolls fund would only increase the financial pressure on all schools, including those without falling rolls, because it effectively moves money from schools with full rolls to those without. In the overall picture of the increasing and critical pressure on school funds, there is simply no spare funding for schools to help other schools in their area, however much they would like to and however committed they are to working together, which is a real feature of Richmond’s schools.

I want to touch quickly on the topic of empty classrooms, which we are seeing. The hon. Member for Ruislip, Northwood and Pinner and my hon. Friend the Member for Twickenham (Munira Wilson) mentioned the decrease in the published admission number. The Government should give some thought to the potential upside of the situation and to what we might use some of those empty classrooms for. We could utilise them for community benefits, particularly wraparound childcare; the Minister will know from countless previous debates what a massive issue that is for families across the country, and particularly in London.

We could also use those empty classrooms for youth work, for which there is a growing demand from young people from all sorts of backgrounds, and for careers advice, which is a particular passion of mine. We should be introducing young people to the full range of opportunities that await them when they leave school. I hear from countless business groups that young people do not know enough about their industry. The Government should think seriously about using some of the classrooms that are becoming available for some of those opportunities.

Reduced enrolment numbers are also putting private childcare providers across London at risk of closure. The issue is compounded by other factors such as increased energy, food and staffing costs, as well as recruitment issues. In my constituency of Richmond Park, I was concerned to hear last month about the closure of Maria Grey Nursery School, a popular nursery in central Richmond. Many parents have expressed to me how deeply saddened they are to be losing this treasured institution, which has been a part of Richmond for several decades. Again, that is because of the lack of demand from local families.

We are seeing record falls in the number of childcare providers, with thousands of providers exiting the market each year. That adds to the pressure on London families, who—never mind the fact that childcare is increasingly unaffordable—find securing a place with a childcare provider increasingly difficult. Again, that is linked to the issue of lack of demand. It is essential to shore up—

Night Flights: Impact on Communities

Debate between Sarah Olney and Jim Shannon

Tuesday 8th November 2022 Commons Chamber

[Sarah Olney]

I thank my hon. Friend for that excellent point. She is right, which is why we are calling for independent analysis and tracking so we can see exactly what goes on.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for securing this debate. I spoke to her earlier in relation to this. Belfast City airport is an example of where things can happen. It is in a built-up area. Local residents were unhappy with night-time flights, which are not allowed into Belfast City airport after 9 pm and there is a fine if that happens. Does she not agree that, although people may live under a flightpath, it does not mean that they should simply be expected to live through ever-increasing mayhem? It is a case not of buyers’ remorse, but of mental health impact, which should necessitate regulation. Does she agree?

[Sarah Olney]

I agree 100%. It is important to think about the mental health impact as well as the physical impact.

Prevention and Suppression of Terrorism

Debate between Sarah Olney and Jim Shannon

Wednesday 24th November 2021 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

rose—

[Jim Shannon (Strangford) (DUP)]

rose—

Free Trade Agreements: Cameroon and Ghana

Debate between Sarah Olney and Jim Shannon

Wednesday 9th June 2021 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

Thank you very much for granting this debate, Mr Deputy Speaker. While the UK-Australia trade deal has been getting a great deal of attention recently, I am grateful for this opportunity to debate the UK’s agreements with Cameroon and Ghana. I wish to raise the opportunities that the Minister and his Department have missed and the distressing lack of ambition that has been shown in these deals.

Throughout the passage of the Trade Act 2021, I and many other Members across the House raised our concerns about the lack of parliamentary scrutiny of trade deals. That is just as true of these roll-over deals as it is of the brand new free trade agreements. In fact, calling these deals “roll-over deals” is somewhat misleading. While they have received very little public or parliamentary attention, they are of huge importance for Ghanaian and Cameroonian partners. The original EU deals on which these deals are based included mechanisms for ongoing parliamentary dialogue between the EU Parliament and their Ghanaian and Cameroonian counterparts.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on bringing this matter forward; the number of people who are here is an indication of the interest in this issue. Does she agree that historically the UK has used these arrangements to encourage liberalisation of public services and regulations, and that at times this can limit the policy space available to Governments in developing countries and prevents them from regulating their economies in the public and democratic interest? Does she further agree that, when it comes to a free trade agreement, we must be careful to build up and not make life too difficult for these nations?

[Sarah Olney]

The hon. Member is precisely right; that is a very real danger of these deals.

Parliamentary scrutiny has not been replicated in the new deal, which means there is no ongoing scrutiny of this deal for UK MPs, and nor have MPs been involved in setting the mandate for negotiations. As a result of the Trade Act, my honourable colleagues and I have no guaranteed vote or debate on the final deal, instead relying on the CRaG— Constitutional Reform and Governance Act—process, which was not designed for modern trade deals and is therefore not fit for purpose.