(1 year, 3 months ago)
Public Bill CommitteesTo illustrate to the Minister why I support the request of my hon. Friend the Member for Ealing North for an apology from the Government, I draw attention to my borough of Cheshire West and Chester, which made a bid for an investment zone last year. That zone would have been a real game changer for our region. It was in the constituency of my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders), and the business case specifically referred to a company called Stellantis—hon. Members may have heard of it. Unfortunately, that investment zone bid, into which council officers put a considerable amount of time and energy, has vanished like Scotch mist.
The right hon. Member for Calder Valley is fortunate that his investment zone was taken forward, but in my borough, the fact that the bid was not successful may have prompted some difficult decisions for the companies that were going to be located in the proposed investment zone. The leader of the council, Councillor Louise Gittins, wrote to the Chancellor asking for an explanation of why the investment zone was not taken forward. I am not aware that she has received a response.
I will keep my comments incredibly brief. There is a running theme to the debate. I thank my hon. Friend the Financial Secretary to the Treasury, because my area of the west midlands and the fantastic advocate that we have in Mayor Andy Street secured significant investment as part of the Budget. I put on record my thanks for the £22.5 million investment in Tipton town centre that the Chancellor announced in his Budget statement.
I appreciate what the hon. Member for Wallasey said about the broader parts of this discussion, and I defer to her much more considerable knowledge of the issue. But in terms of the more regional aspects of investment, it is a really important part of the investment package and strategy that we put confidence into our communities and that we say to those who want to bring inward investment into our areas—particularly post-industrial areas such as mine—that there is a case to do so. That £22.5 million, combined with the £60 million transport investment that my right hon. Friend the Chancellor also announced in the Budget as part of his broader package of resources, shows the confidence we need to see. Let us not forget that the west midlands has had a tough time, particularly post pandemic, and our productivity is still 3% down on pre-pandemic levels, so what this investment means for bringing in the inward investment that secures support for industry will be key to addressing the challenges that we face.
The efficacy and efficiency of this investment is key. We need to make sure that we set out tangible metrics of success so that not only the public, but industry can measure the effect of this important investment. As we go forward, particularly on the regional investment front, I ask the Minister and her officials to make sure that dialogue continues so we can make sure that areas such as the west midlands can see the money’s true benefit. It is all well and good talking about abstract figures of billions and millions of pounds, but we need to get across the real-life, tangible results for our constituents. We see that in the increased productivity, increased employment opportunities and upskilling in our areas.
We are very grateful for the investment that we have seen in our region, and I agree somewhat with the broader points raised by the hon. Member for Wallasey, but the key point in this broader debate is tangible, real results on the ground. We can have all the economic debates we want, but it is about delivery for real people.
I thank my hon. Friend for his comments, with which I agree. I will not pretend that the Labour party is in politics for different reasons from us. I genuinely believe that most Members of Parliament are in politics to do good for their local residents and for the country as a whole. The point of contention is on how we achieve that.
I am interested in the contrast between the submission of the hon. Member for Ealing North and the submission of the hon. Member for Wallasey. She represents part of Liverpool, and I grew up in the north-west, so I know Liverpool and Manchester very well. I think we would all agree that Liverpool and Manchester have seen a revitalisation over many decades. It takes a village to raise a child, as the old saying goes, and I fully accept that the previous Labour Administration may have done a great deal to help those areas. Going back a long way—a little before my time, perhaps—Lord Heseltine played his part in helping both Liverpool and Canary Wharf. We are trying to revitalise areas in the same way that Liverpool, Manchester and Canary Wharf, and indeed many other areas, have been revitalised.
The work on the new investment zones is ongoing. The Department for Levelling Up, Housing and Communities has begun discussions on hosting investment zones with local partners and the Treasury. That is because we want those areas to operate at a regional level, as has happened in the past with other examples. We want them to be regional examples, as I said. We are looking forward to Scotland, Wales and Northern Ireland having their investment areas. From that, many other measures will flow. Investment zones will also sit alongside freeports. Some investment zones may include freeports, but some freeports may stand independently of them. We want to ensure that we spread innovation and a drive for growth across the country.
I want to add to the Minister’s response to the hon. Member for City of Chester. I do not necessarily disagree with some of the hon. Member’s frustrations. However, as a Member who sits within a combined authority area, I know that even when the combined authority is involved in those bids, the upper-tier authority does not just vanish from the picture; it is very much involved. The investment we had came from upper-tier authority submissions that went into the Government. I appreciate what the hon. Member said about the assistance that a combined authority might give, but it is still very much on the upper-tier authority to be in the game with some of this stuff. It does not just vanish with the creation of a combined authority area.
(1 year, 3 months ago)
Public Bill CommitteesThank you, Ms McVey. The Minister was quick to rubbish the conclusions of the LSE and Warwick on the behavioural impact of abolishing non-dom status, even though the research was thorough and based on HMRC data. The question I asked the Minister was whether she will publish the Treasury analysis that she is relying on to rubbish that LSE-Warwick conclusion.
On a point of order, Ms McVey. My hon. Friend the Minister did not say that. Is it in order for Members of this House to misrepresent the words of other Members? I am pretty sure that “Erskine May” is clear, but I would be grateful for your guidance. I apologise for jumping in.
We cannot say “misrepresentation”, but I would like the Minister to give a full response to what was said.
(1 year, 8 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
That is an important point and I understand why the hon. Lady asks about it. In March the Prime Minister—as Chancellor—set out our very strong position on urging companies to divest, making it clear that there was no further case for investing in Russia. As for what happens with individual shareholdings, I said that I would not comment on specific companies and, to be fair, the hon. Lady has not asked me to. However, as I hope we can all acknowledge, it is not necessarily straightforward to divest. We want companies to do that, but as I said to the right hon. Member for Barking (Dame Margaret Hodge), if firms divest their shares, they have to be clear that any new owners will comply with the sanctions regime and that they will not be sold on to an entity or individual who is part of the regime. It is not straightforward, but that does not mean that we do not want every possible step to be taken to divest.
The flipside of this narrative is that companies are doing the right thing. I am concerned—I have read such reports locally—about companies that have divested their interest in Russia but are now struggling to get legal and audit services. As a result of having that previous interest, companies are reluctant to touch them. It is bizarre that companies and organisations that have done the right thing cannot access those statutory services. Will my hon. Friend ensure that he has conversations across Government, particularly with the Department for Business, Energy and Industrial Strategy and professional service providers, to ensure that companies that do the right thing on Russia are not penalised as a result?
My hon. Friend—I think he was a lawyer by training—gives a good example from a sector where one can imagine that might be happening. If firms are complying with the regime, other firms should have no fear of working with them. If he wants to raise specific cases with me, he is, as ever, welcome to write to me. He makes a very good point and it is on the record.
(1 year, 9 months ago)
Commons ChamberI could say so much about what we are debating today that I do not know if I can contain myself. I am fortunate that procedurally there is no time limit for Finance Bills, so I could speak for hours about the Government’s proposals, but I will be as circumspect as possible. We have heard some fantastic contributions, including from my hon. Friend the Member for Eastleigh (Paul Holmes); I assure him I listened to his speech and it was a fantastic contribution.
We have had the usual back and forth, with Labour playing the blame game while also failing to understand that when we spend £440 billion to keep the economy going—to keep people in work, to keep jobs, to keep people sustaining what they are doing—there is going to be a price to that, as there is from Putin’s illegal and aggressive invasion of Ukraine.
We are facing some of the most difficult economic circumstances ever, and it is right that our tax measures have made those with the broadest shoulders carry the largest burden, because they know that is vital to ensure the longer-term recovery of our economy. In doing that, we strike a balance between making sure those people carry that burden and ensuring that the most vulnerable get the support they need.
Hon. Friends have talked about the ways in which that has been achieved, including the £600 million investment in infrastructure. Some suggested that investment was not happening, but I can assure them that it is: my local authority and borough are being supported with £60 million of investment from the Government’s towns fund, with a further £20 million in levelling-up funding bid for at the moment, so we have absolutely seen support from this Government. Some 125 small and medium-sized manufacturing businesses in my constituency—or, as we say in the Black Country, metal bashers, because that is ultimately what we do —benefit from the infrastructure investment and R&D support.
The protections to the triple lock were a dividing line. I point out to the Labour party that when it left power in 2010, we had some of the worst rates of pensioner poverty in Europe, yet Labour Members never talk about that, do they? They never mention that and they have never apologised for it. Under this Government, we have had the triple lock for pensioners—people who worked hard, contributed and have paid in for all their lives.
I have a lot of respect and time for the hon. Member for Aberdeen North (Kirsty Blackman)—I have worked with her on a number of bits of legislation—and when I think of hard workers, I think of the people on the minimum wage in my local factories and those manning shops and working in retail, in unforgiving jobs. It is those people who have paid in their whole lives and want to see that return. Notwithstanding the points that she made about Scotland—I heard and understood them—investing in and safeguarding the triple lock is exactly what we need to do.
I do not wish to repeat too many points made by hon. Members today—I am conscious that at this point in the debate there is a risk of doing that—but it has been vital that we strike a balance in this Finance Bill. That balance is about being fiscally prudent, as my right hon. Friend the Chancellor made clear, but not on the backs of the most vulnerable. It is also about ensuring that investment in good public services, which was at the heart of the Government’s promise and the contract we made three years ago, is maintained. We have safeguarded investment in levelling up, safeguarded investment in infrastructure, safeguarded and increased investment in education and safeguarded investment in the NHS to ensure that our public services are there. As far as I am concerned, if the Labour party thinks that is some sort of abhorrent thing to do, I do not know where its head is at. If it means that my constituents get the services that they want, pay for and rely on—that they can access a GP, get into a hospital and see their kids go through a decent education system—I will back that to the hilt, because ultimately I was put here to safeguard their public services. We know that we are in a tough situation, but my hon. Friends on the Treasury Bench have struck that balance. It is vital that, as we move forward, we continue to assess the situation.
In finishing, I have a few asks, as I often do—I see my hon. Friend the Exchequer Secretary looking at me in anticipation. I was pleased to hear mootings of an industrial strategy. Those of us in the Black Country, where we are proud of our industrial heritage and our infrastructure, can be at the forefront of the new industrial revolution, particularly on the green agenda. I know that the Government are particularly concerned about energy security, and I am more than happy to meet my hon. Friend about that.
My ask is that we ensure that areas where we have good industrial capacity are not forgotten. One point relayed to me is that there is sometimes a feeling that those who are not in financial services or a service industry are a bit left behind. I see my hon. Friend looking at me; it is vital that we have an industrial strategy focused on our manufacturing base—he and I have had discussions about that and are passionate about it—to ensure that good, strong manufacturing and engineering jobs can be part of our growth and recovery, particularly in the Black Country. We already have the infrastructure, so let us make the most of it.
The Bill strikes the right balance by protecting public services and safeguarding the most vulnerable. As far as I am concerned, we are fulfilling the contract that we made with the people three years ago.
(1 year, 9 months ago)
Commons ChamberMay I reassure the hon. Member for North East Fife (Wendy Chamberlain) that it is an absolute pleasure not just to have heard her, but to follow her in this Chamber and be able to talk about the autumn statement?
I have been informed that Labour’s friends in the socialist cesspit that is Twitter got very excited when the shadow Minister, the hon. Member for Hampstead and Kilburn (Tulip Siddiq), in response to my question about whether the Opposition can promise the British people that taxes will not increase beyond where they are now on the working people of Stoke-on-Trent North, Kidsgrove and Talke, simply said that I should sit and listen. Well, I did sit and I did listen, and all I heard was taxes going up here, taxes going up there, tax more of this and tax more of that.
This was reaffirmed when I intervened on a number of great Labour Back Benchers, who I like to call friends. When asked a very simple question—whether they could make a promise in this House to the people of Bradford East and Stoke-on-Trent North, Kidsgrove and Talke, for example, that taxes will not increase—all I was told was to go home and answer some questions about the Conservatives’ record in the great city of Stoke-on-Trent, as well as the great town of Kidsgrove and neighbouring Talke.
In my hon. Friend’s assessment, because we cannot get that assurance —I hope the right hon. Member for Wolverhampton South East (Mr McFadden) is listening—what does he estimate Labour’s tax bombshell to be for our constituents in the west midlands, because it sounds as if there is definitely one incoming?
My hon. Friend, who is a fine and doughty champion for the people of Tipton and the surrounding area, makes a great point. I know that the shadow Minister, the right hon. Member for Wolverhampton South East (Mr McFadden), is a good man who likes to answer questions, and always with a straight bat. So I look forward to hearing him guarantee that, under a Labour Government, no taxes will go up on anyone in, for example, the 20p income tax bracket. If he can give such an assurance, I will probably have to pack my bags as a Member of Parliament and accept reality, but I am not so sure I will get that straight answer on this particular question.
I was told very clearly that I should go and get answers to questions. Well, I have come and marked my own homework, but I think it is important to give answers to those hon. Members, because they did ask for them. It is under this Conservative Government, under a Conservative-led Stoke-on-Trent City Council, and under a Conservative-led Newcastle-under-Lyme Borough Council—Conservative-led for the first time—that we have seen £56 million from the levelling-up fund, which is the largest levelling-up fund grant given to any single area. That means the great town of Tunstall is about to get £3.5 million to refurbish and bring new life to Tunstall library and baths. There is also the fantastic scheme by Stoke-on-Trent railway station—a gateway to our community—for the Goods Yard site, which is going to provide offices, homes, and restaurant and retail experiences to bring in new revenue to our area.
There is the £17.6 million Kidsgrove town deal, the first of its kind in an area such as Kidsgrove, which has seen Kidsgrove sports centre not just refurbished, but reopened. It has reopened after, sadly, the Labour party, which ran Newcastle-under-Lyme Borough Council at the time, chose to close it, because when the council was offered the opportunity for a single £1 coin to save it, it rejected that offer. I will make a donation of that pound coin to the Labour party, so that if it ever finds itself in that situation again, it can cough up—I am happy to register that among my donations in kind.
The £31.7 million “bus back better” investment has meant that not only are we improving bus services and introducing a new flat fare of £3.50 a day; we are also improving our road infrastructure. There are 500 brand new Home Office jobs. The site of Chatterley Valley West will unlock up to 1,700 jobs, as part of the new advanced ceramics campus—the list goes on.
Tomorrow, the Levelling-up and Regeneration Bill will mean that rogue and absent landlords who plague our high streets and our heritage will get a fine that has increased from £1,000 to an unlimited amount for the first offence, and from £100 a day to £500 a day for the second offence. While the Labour party and my Labour opponents were standing outside buildings two days before polling day with placards to protest, I was busy looking at the law, coming up with a solution, presenting it to the House, and getting the Government on board. Tomorrow we will vote the Bill through before it goes to the other place to complete its journey. That is what Conservatism is all about in Stoke-on-Trent North, Kidsgrove and Talke.
Let me tell the House what people know about the Labour party locally. They know that when Labour is in charge, ceramics manufacturers are closed and move overseas. They see wages stagnate or go down, unlike under the Conservatives, when people saw an 11.7% wage increase between 2015 and 2018. They saw jobs disappear, until a Conservative-led city council managed to bring 9,000 jobs to our city since 2015, 2,000 of which are linked to the Ceramic Valley enterprise zone. When the Labour party was in charge it had £60 million in Stoke-on-Trent City Council coffers. It could have spent that on the mother town, Burslem, and invested in the Queen’s Theatre, the Wedgwood Institute and Burslem indoor market, revitalising that vital, historic town. What did it do? The money got festered away on new council offices. Rather than worrying about the people of the town, Labour councillors were worried about whether their office had enough square footage to fit their egos. Sadly, they chose to go with that option instead.
It is a crying shame that for 70 years the Labour party abandoned the great people of Stoke-on-Trent, Kidsgrove and Talke. It is a great shame that it took the Conservative party to come in for Labour Members even to realise where Stoke-on-Trent was, and to no longer rely on Google maps or a pre-paid taxi to find their way there. While they visit our city and promise this and that, the people of Stoke-on-Trent, Kidsgrove and Talke know—they have seen the evidence in the past, and the counter-evidence of Conservatism since then.
We are talking about the autumn statement, Madam Deputy Speaker, so it is important that I refer to that in this important debate. It is exceptionally important to understand that we have had a global pandemic—a once-in-100-year event that I hope that my children and grandchildren never have to experience in their lifetime. That was followed by the impact of locking down the entire global economy, meaning that when demand increases supply chains cannot keep up with that demand. That is understandable, because people were being asked to stay at home, protect lives and save the NHS from being overrun.
Those were the facts of the day, and just as we were learning to come to terms with them, Vladimir Putin chose to have an illegal and immoral war against the great people of Ukraine—Slava Ukraini, Madam Deputy Speaker. Unfortunately, he then used against anyone who stood up to him gas, and other forms of energy, as a weapon to try to cripple our resilience. Well, guess what? We will get through this, because we as a country are brilliant. We did it in world war one, we did it in world war two, we did it with the Falklands, we did it with Iraq and Afghanistan, and we will certainly do it again by backing the people of Ukraine. We will make sure that we have those people’s backs, because we believe in freedom, not oppression. It is a shame that when we have these discussions the Labour party tries to pretend that those things never happened. The fact is that they have happened, and they have all come at once. I hope that no one will ever have to live through such times again.
What have the Government done? They have invested £12 billion extra in support for the most vulnerable households in our community. That is on top of the £37 billion already announced, and the energy price cap guarantee. That has made a humungous difference to one ceramics manufacturer in Stoke-on-Trent North, which has told me that the price cap will save it £4 million over the winter months. Without that £4 million it could have meant jobs going or the factory having to shut permanently, because it simply would not have been affordable. This Government have given it that support.
The support we have given to individuals, including the price cap and the money given, means that the average Stokie will get around £2,000 of support over the next two years. In fact, those on means-tested benefits will get around £4,000 of direct support over the next two years for them and their household, because this is a compassionate Conservative Government, and I am proud to be a part of it.
There are other important measures. The increase in the national living wage is fantastic. Where Stoke-on-Trent has a lot of people earning the national living wage, that increase will see those in full-time work £1,600 a year better off. That is a huge amount of money. We have also got the £12,500 personal tax-free allowance and the increase in the national insurance threshold to match that, which means that some Stokies are not paying any tax whatsoever. This is a good day for the people of Stoke-on-Trent. The triple lock being protected is also fantastic.
It has not been mentioned much, but in Stoke-on-Trent North, Kidsgrove and Talke we were very happy to see the freeze in foreign aid take place. We certainly believe that charity begins at home and, when we are going through hard times, people in this country should have their taxes spent on them and be protected first. I hope that one day the Government will scrap the ridiculous arbitrary target of 0.7%, which was a virtue-signalling idea brought in under a previous Conservative Government. I certainly was not a fan of it from the outside and I am proud to stand here and say that we need to move away from it. We should have flexibility to choose what we invest in, when we invest in it and how much we choose to invest each year, depending on our circumstances here at home. I do hope that Labour Members get very angry that I said that, because, if they go around and put that all over social media, that will only help me to get more votes in Stoke-on-Trent North, Kidsgrove and Talke. They might want to think carefully before trying to campaign against me on that one.
Let us also talk about the absolutely fantastic £4.4 billion on schools. That is great news, seeing what pressures were on schools. But two things in that are important for the Government. First, I am worried that, as Schools Week reported, there may be clawback on the national tutoring programme underspend, which is estimated to be between £100 million and £150 million. I hope that the Treasury keeps its fingers off that and instead lets the Department for Education reinvest it into the third year of the national tutoring programme so that it can increase the grant available to schools and we can hit that figure of 6 million opportunities for young people.
Secondly, the £2.5 billion of pupil premium money must be spent in the right way. Sadly, we are not tracking how it is being invested in our schools. I am proud to support Magic Breakfast schemes such as at Q3 Academy Langley in Sandwell and those in Stoke-on-Trent North, because those schemes are making sure that kids get a breakfast, which we know via the Education Endowment Foundation has a positive impact on behaviour, attendance and academic attainment, which is so vital. I do not believe in universality for these schemes—they should be targeted—and the Government must be committed to redoing the deal with Magic Breakfast and expanding it to another 10,000 schools. I look forward to working with MPs across the House on that.
I am concerned that, when we talk about taxing private schools, we are talking about taxing aspiration. Many individuals in my constituency who work in factories or even as cleaners want to send their kids to the best school because they want them to have the best start. If we followed Labour’s plan, that would mean more children entering the state school system and putting more financial pressure on the Department for Education and its budgets. Actually, that would not even bring in the revenue year on year that Labour predicts, because it assumes that numbers will remain the same. It is simply not correct to claim that £1.7 billion a year will exist, as numbers will leave the private school sector and come into the state school sector. Suddenly, we may need to find hundreds of thousands of school places that simply do not exist, burdening classrooms that are already on the brink.
We also have the health and social care increase of £7.7 billion. That is super-important and very good, but, as I have said, the “No Time To Wait” campaign, led by myself and James Starkie—it is a cross-party campaign, which I am proud that Members of the Labour party and the Liberal Democrats support—has a pilot ready to go with the Royal College of Nursing looking at how we can get mental health nurses into GP surgeries. I hope that the Government will back it. I look forward to raising that at Prime Minister’s questions tomorrow.
Finally—I promise that this is finally, Madam Deputy Speaker—I turn to fuel duty. I thank the Chancellor for coming out quickly and making it clear that, despite what was in the OBR forecasts, the 5p cut and the freeze to fuel duty will remain in place, as was agreed, until March 2023. I am proud to be The Sun and FairFuelUK’s “keep it down” champion here in Parliament. I will make one thing clear to the Government: I will ensure that, as a bare minimum, that 5p cut stays in place. If we want to ensure that motorists, van drivers and lorry drivers—the 37 million people on the roads day in, day out—are on our side, we had better make sure that we have their backs. We know that cutting fuel duty cuts inflation because it means that distribution costs are cheaper, and 98% of our goods are driven on the roads to the shops. I hope that the Government will reaffirm their commitment.
I apologise, Madam Deputy Speaker.
I remind Opposition Members that this budget is bringing in the largest ever increase to the national living wage—as we have heard, £1,600 on average for millions and millions of workers. These are not people at the top of the tree.
My hon. Friend is making a very passionate speech. On the living wage, the Labour party will not commit to not raising taxes on low-end workers. How much would Labour’s tax bombshell take from those on the living wage? Clearly, we have got one incoming; we can see it over there. What is her estimate, if Labour does raise taxes on people at the lower end of the tax spectrum?
I very much hope we are not going to see tax rises. On the Government Benches, we are absolutely committed to protecting hard-working people, but at the moment we have heard no clarity—my hon. Friend is absolutely right—from the Opposition. There has to be a doubt that under their policy, taxes will go up on hard-working people.
The second point is that we have heard a lot about benefits not going up in line with inflation—another extraordinary comment. I remind Opposition Members that the OBR forecast that UK inflation will be 9.1% this year, going down to 7.4% next year. So, on the contrary, rather than our uprating of benefits not being enough, our uprating of benefits to inflation at over 10% is generous. Again, that is helping the most vulnerable.
Thirdly, we are keeping energy bills down for every single household across the country. Fourthly, on top of that, we are offering direct support for 8 million low-income households to the tune of £900 per household. Then, of course, we come to the triple lock. When the Conservatives came into coalition Government in 2010, pensioner poverty was a real issue. It was one of the legacies we were left to sort out. Since then, over the last 12 years, which we are harangued about regularly, we have protected pensioners. We brought in the triple lock and we have now restored it—the biggest ever cash rise for every single recipient of state pension ever next April. But more than that, for the poorest pensioners, pension credit will go up and be linked to inflation. Again, there will be £1,470 for a pensioner couple and another £960 for a single pensioner. That is before we get to more funding for the NHS and schools. People would think that we were not funding our NHS at all when, in fact, we are increasing the spending on the NHS to £166 billion, the highest amount ever.
(1 year, 9 months ago)
Public Bill CommitteesIt is good to see you in the Chair, Mr Sharma, and other hon. Members here today. It is a pity that my hon. Friend the Member for Glenrothes cannot be with us, as he has played a large part in constructing these amendments. I know that other hon. Members will want to participate in a debate on free-of-charge access to cash. I look forward to hearing what they have to say. At the moment, depending on what the Minister has to say, it is my intention to press the amendment to a vote, but I will listen to the Minister’s comments.
It is important to give some examples about the reduction in free access to cash. People sometimes wonder where the constituency of West Dunbartonshire is. We are bound by Glasgow to our east, where we become an urban element of the west of Scotland. We move further west through Clydebank, into Dumbarton and through the Vale of Leven, becoming suburban and then semi-rural, to the base of Loch Lomond itself. The community has a diverse demographic, with a range of deprivation that also impacts on people’s need to access physical cash.
In the last four years in West Dunbartonshire—I am sure this experience is mirrored not only in Scotland but the rest of these islands—we have seen a drop of 27% in access to ATMs, or automated teller machines. That is three ATMs, coupled with closures of local bank branches. We are a population of more than 90,000, but we seem to have only three or four bank branches left, which is extraordinary. My constituents face being forced to travel across a range of areas, including sometimes into the city of Glasgow, to access cash. My hon. Friend the Member for Glenrothes and I think it is vital to protect our constituents and the constituents of all other Members, too, in making sure that they have access to free-of-charge cash, notably for the most disadvantaged groups and the elderly.
Let me declare a non-pecuniary interest as the chair of the all-party parliamentary group on Estonia. Estonia is usually used as an example of what a digital state should be. After the fall of the Soviet Union it picked itself up and ran with a full digital agenda. One of its biggest learnings was that no one should be left behind in the race to digitalisation, critically in relation to access to cash. For the Estonian Government, and the Estonian Parliament, making sure that any financial system is not only fit for purpose in the digital age but that it takes everyone with it, including access to services and free access to cash, was their big learning curve. They believed that they failed in that process to begin with.
I hope that, when reflecting on the amendment, the Government realise that there is a huge opportunity to maintain access to cash for a range of reasons. We can talk about our constituents, and predominantly those who are elderly or from disadvantaged groups who use cash on a more regular basis. We can also talk about small and medium-sized businesses, a lot of which have moved to digital transactions. When Members go to a small shop in their own constituencies, they will notice that a lot of transactions have moved to digital due to the pandemic, but shops still have a substantial amount of cash that comes through their doors. One of the big problems that shops also have—not just free access to cash for those consuming their products—is depositing their takings at the end of the day. They are finding that very difficult as well. Businesses rely on consumers who use cash, especially in disadvantaged communities.
I am mindful of what the NM Group said in its submission:
“Cash remains an important form of payment for millions across the UK, particularly during times of economic hardship.”
The narrative of the cost of living crisis is used across the House, so there is clearly an agreement that people are facing economic hardship and that access to cash during that time is critical. That is why we think amendment 40 is important, as are the other amendments in this group.
We should also note that the payment method with the lowest economic friction, providing businesses and members of the public with a crucially important alternative, is cash. It is an important way for people to manage their finances, especially those in a disadvantaged group or those who are elderly who do not use digital money. I also note that the figures published by LINK, UK Finance and the Post Office show that around £10 billion in cash is withdrawn each month. That is £120 billion per annum in physical cash from ATMs, or from bank counters and post offices. The volume of withdrawals from the LINK system alone equates to about two withdrawals per month for each adult member of the UK population.
To bring my thoughts to a conclusion, we need to also be mindful of some of the infrastructure. UK consumers can access cash from over 55,000 ATMs, 11,500 post offices and certain bank branches—if they are not closing down in our local communities. The number of post offices is actually shrinking; there are no longer two or three post offices in a community—there is maybe only one. Over 90% of cash withdrawals take place at actual ATMs. The critical issue around free cash deposit and withdrawal services within the amendment is extremely important.
The access to cash review in 2019 noted that we cannot sleepwalk into a cashless society. That reflects back to what I was saying about the Estonian learning about digital infrastructure: it can leave a substantial number of people behind. That was the reality for Estonia. Cash continues to be important. Contactless payments and online banking can make it easy for some people to live entirely cash-free. However, given the volumes of cash in society, its usage remains extremely high. That reminds us that we do not live in a cashless society. The LINK network still handles around 1.6 billion transactions a month—that was the average in 2021. On average, adults still withdrew over £1,500 a year. During a global pandemic, cash was still being physically used. It is important to listen to the Minister and the Government’s view on it, although it is my intention to press the amendment to a vote. I look forward to hearing what others say.
It is a pleasure to see you in the Chair, Mr Sharma—
I apologise to the hon. Member; I am getting my procedure a bit mixed up, Mr Sharma, so I wonder whether you could clarify something for me. I have amendments 16, 17 and 18, on the issue of free access to cash. When will it be convenient for me to come in?
Thank you, Mr Sharma. I do not want to add too much to what the hon. Member for West Dunbartonshire has said. He has articulated well the reasons why the original clause and his amendments are vital to our communities. The stark reality is that cash is still an important part of our local economic infrastructure, and more so for my communities, where we have seen two bank closures in the last 18 months. Many have had free access to cash taken from them. That is compounded by other infrastructure challenges, such as the lack of public transport and the inability to access free cash services elsewhere.
The amendments tabled by the hon. Member for West Dunbartonshire are interesting and strike a balance in seeking to ensure that our communities can access a vital service, mainly cash. I listened with interest to him explaining the rationale behind his amendments, because I think we agree. We have to remember who these measures are ultimately targeted at. I often think of people with vulnerabilities who utilise cash as part of their budgeting. They use it every day, and for them it is a vital part of being able to continue to sustain themselves. Although the technological revolution over the last few years in particular might be great for some, for others it is not. For the communities that I represent and the areas where people are really trying to get by, cash plays a vital role in ensuring that people can function and manage their finances and their affairs. It is therefore vital that we have a strategy in place.
The amendments proposed by the hon. Gentleman, particularly the element of keeping the service free of charge, is important, particularly for communities like mine. We all talk about acute pockets of deprivation, but I remind the Committee that I represent the fourth most deprived ward in the west midlands. For many people, paying for ATMs is simply unacceptable. It takes away from them a vital part of the means they need to subsist and survive. Ensuring that we have a strategy to keep access to cash free for those who rely on it every day is vital. If we do not, we create a cycle whereby, because people have to pay out to access the means by which they survive, they use less and less of their income.
At a time when we are dealing with an acute cost of living crisis and people’s incomes are stretched, it is vital that the main source that they can use to survive is not tagged with a condition that makes it harder for them to access it. I agree with the philosophy, so to speak, behind the hon. Gentleman’s amendments. This is about enabling people to just survive and do the basics that they need to do. It is as simple as that.
I think of a constituent who came to my constituency office the other week. She could not access an ATM and was absolutely distraught. Her bank branch had just been closed and she did not know where to go. She was distraught and we had to help her out. That is at the forefront of my mind when I think of these amendments and what the Government are trying to achieve through their policy and strategy documents.
I ask my hon. Friend the Minister—I am afraid that he has had a bit of a shopping list from me, which I know his officials will have noted down—to ensure that cash is kept at the forefront of the Treasury’s thinking. I appreciate what the clauses are meant to achieve, but I hope that the Minister will take note of the intention behind the amendments, even if the Government decide not to support them, and ensure that the issue is brought to the forefront.
(1 year, 10 months ago)
Public Bill CommitteesBefore we were so rudely interrupted, I was saying that, although I do not support the detail of the amendment, it is a hook on which to hang the sheer frustration that many of our constituents feel about a system in which vast amounts of money are scammed. Some of those who have benefited are in plain sight, often with their ill-gotten gains, while our constituents have had their life savings wiped out. It seems that the law can do nothing to touch these people, and I share our constituents’ frustration.
We will get on to fraud and other issues later in the Bill, but I understand and respect the creativity of the hon. Member for Glenrothes in using the amendment to raise them now. In replying to the debate, will the Minister say how the Government think we could massively improve the attack on fraud in our financial system, because it is increasing rapidly? The risks for those who perpetrate fraud are tiny, but the rewards are huge, and that is surely driving the ongoing attacks on the life savings of many of our constituents. That makes engaging with financial services—buying and selling, and buying products from the system—difficult and potentially dangerous, and it puts many people off trying to make the provision for themselves that we would normally want them to make.
I, too, support the intentions behind the amendment from the hon. Member for Glenrothes, which were very well articulated by the hon. Member for Wallasey. We often see these people swanning around the place with their ill-gotten gains, while many of our constituents have been on the receiving end of a scam. Even when there has been some form of regulatory investigation, some people do not feel that justice has been done. The amendment tries to make tangible something that may appear quite abstract to our constituents. I support the amendment’s aim but, to follow one of the Committee’s themes, perhaps this is not quite the place for it.
That said, I echo the request for reassurances from the Minister on how we will construct a regulatory regime that makes our constituents feel that there is a degree of responsibility. As Members on both sides of the Committee have said, many of our constituents, particularly those who have been victims of fraud and scams, feel that although the letter of the regulatory system may have been followed, justice has not been done. As we consider the Bill, we need to keep that at the forefront of our mind. I can get on board with the intentions behind amendment 35, but we have to first consider its practical effects. I hope that in his summing up, the Minister will give the Treasury’s thinking on this issue.
Later, I will come to my amendment on the Bill’s fraud provisions, but I want to express my support for the intentions behind amendment 35. Does the Minister oppose in principle the idea of nominated representatives being held liable for the carrying out of a designated activity when an organisation has been found liable?
We strongly support the clauses. A sandbox for financial markets infrastructure will support innovations in the fintech sector, such as developments in blockchain, which has the potential to boost the transparency and productivity of the UK’s financial services. Could he please explain, however, whether clause 13 gives sufficient flexibility for the sandboxes to be used to support innovation in a wide range of financial technologies? The Bill says that sandboxing testing will occur “for a limited period”. Will the Minister further define that and set out the minimum timescales that he believes are necessary to adequately test a new innovation in financial technology?
On clause 14 and the reports on FMI sandboxes, which criteria will be used in the reporting of sandboxes, so that Parliament can transparently assess their effectiveness in safely supporting innovation? On clause 16, which sets out that prior to conferring such a power, HM Treasury must consult “the appropriate regulators” or such persons that it considers appropriate. Will the Minister please share his understanding of the definition of “consultation”? Which stakeholders would have to be consulted, and what is the estimated timeframe for such a consultation?
Clause 17 provides the Treasury with a power to amend the list of relevant enactments by way of the affirmative statutory instrument procedure. Will the Minister elaborate on how he sees that working in practice? Would every individual amendment to the list of relevant enactments be brought before the House for scrutiny? I presume so, but I want to have that on the record.
The provisions in clauses 13 to 17 are incredibly welcome, because we are dealing with a financial services landscape that is constantly innovating and changing. I should declare that prior to becoming a Member of Parliament, I worked for the legal team at a major big seven bank and saw these developments as part of my role there. The provisions are very important because they will ensure that, as the fintech sector continues to develop and the regulatory framework continues to advance and change, they can do so within the perimeters of the sandbox arrangement introduced by the Government.
I particularly welcome the clause 16 provisions on consulting regulators, and the fact that there is going to be a discourse with them. We cannot cut regulators out of the conversation. The clauses do not seek to do that, but the hon. Member for Hampstead and Kilburn was right to raise queries. We need a bit more clarity on what the consultation will look like. I fully appreciate that it is not always possible to give instant clarity when introducing primary legislation, but it will clearly be incumbent on the Treasury to ensure that, as the process progresses, His Majesty’s Government are as transparent as possible about what the consultation will look like.
We should remind ourselves that the practical application of the clauses will change and develop as the landscape itself develops, because that is the subject matter that we are dealing with. On clause 16, with respect to the development and work with regulators, I urge my hon. Friend the Minister not to forget the important role that lawtech plays in the regulation and monitoring of a lot of the instruments that will be part of the sandbox regime. It is often not talked about, but fintech and lawtech work hand in hand, side by side, particularly in this financial services sector.
I support the clauses; they are the right thing to do. As hon. Members on both sides of the Committee have articulated, they allow not only the financial services sector to innovate and develop, but the regulation to be developed in tandem with them. I would, however, welcome clarity from my hon. Friend the Minister on the what the practical applications will look like, particularly as we build that framework.
I do not want to be the fly in the ointment, but I would like some assurances from the Minister about the FMI sandboxes. The Clifford Chance briefing notes that
“the FSMA Bill permits HM Treasury to allow broad participation in FMI sandboxes which in practice could include FMI providers, and participants in these systems as well as, conceivably, unregulated service providers such as technology companies and any other person that HM Treasury specifies.”
I am looking for an assurance from the Minister and his civil service team on the notion of unregulated service providers having access to the FMI sandbox. It seems that the EU pilot regime is far more limited in its multilateral trading facilities and securities settlement systems, and that it makes no mention of recognised investment exchanges or any other persons. It is not, therefore, making itself a hostage to fortune with its pilot system. Could the Minister and his team provide reassurance on the broad scope of innovation that they seem to be going for?
(1 year, 10 months ago)
Public Bill CommitteesGood morning, Dame Maria. It is a great honour to be on a Bill that you are chairing—I think it is our first time together in this iteration.
The Opposition do not have a problem with the principle of repealing some of the EU legislation, but I rise to invite the Minister to give us more detail on precisely how he envisages the wide-ranging power in clause 1 will be exercised in practice. I speak as a former member of the European Statutory Instruments Committee, which did a great deal of work in sifting all of the EU legislation to onshore it ahead of Brexit, including all the legislation covered by the Bill. We sat regularly and looked at thousands upon thousands of pieces of EU legislation, which we brought onshore ahead of Brexit. A great deal of work was done to achieve that, but a great many mistakes were made during the process in the drafting, the interpretation and the way in which powers were onshored in areas where we have not legislated directly for 47 years. This is a great accumulation of technical, but also extremely important, legislation that impacts on our constituents’ experience of everyday life as consumers and on how they use financial services and insurance, banking and savings products. If we get it wrong, there can be a great deal of detriment to our constituents.
Will the Minister give the Committee an idea of how the wide-ranging power to amend a large amount of legislation that has been on the statute book for many years will be done in a way that reassures all our constituents that we have the right balance between consumer protection and consumer rights on the one hand and our financial services industry and the way that it operates on the other? How will Parliament get to look at this? It is possible to argue that clause 1 would allow Parliament to be run over roughshod, without providing proper scrutiny, so will the Minister indicate how it will work in practice? How does he propose the powers will be exercised? What can Parliament do if we perceive that an issue that has been overlooked in all the technocracy impacts on our constituents? We need to ensure we have proper accountability.
I would be less worried if, as the hon. Member for Glenrothes said, we are just taking off an EU flag and sticking on a Union Jack, but I assume the Minister is taking these powers because he wants to use them. Will he set out in his comments on clause 1 precisely how he expects that to happen?
It is a pleasure to see you in the Chair, Dame Maria. We often cross paths in these Committees and it is great to see you once again in the Chair.
I will speak briefly about amendment 44, following the comments of the hon. Members for Wallasey and for Glenrothes. The Government need to be nimble in how they lay regulations, particularly in this transitional period. Clause 1 provides the ability to be agile, particularly as we redevelop our financial services framework following our departure from the European Union. The Government clearly need the ability to do that. We are dealing with a vast array of regulation, primary legislation and laws that will require a significant amount of time to be developed, but at speed. Clause 1 enables the Minister to do that, and I trust my hon. Friend the hon. Member for Arundel and South Downs to develop the legislative framework in the right way.
If there is such an urgent need for speed, why has it taken so long for the Bill to be brought before the House?
Perhaps I should have finished my comments, which would have led to the point that the hon. Gentleman has made. There is a need for speed and also a need to make things right. I think that is the point that he and the hon. Member for Wallasey were making, particularly as it is so vital that we get it right. I agree with the hon. Lady that there is a place for scrutiny. Drafting errors are a concern, and we have to make sure that as we build the framework, it is done in the right way. I pay tribute to the work that she did on the EU sifting Committee, because it is a thankless task to go through.
It was not the most fascinating thing I have ever done in the House, but it was one of those things that one has to do, or the statute book ends up in a right mess.
I thank the hon. Lady again for the work that she has done.
I will round up my comments by saying that I think it is right that in clause 1 the Minister has the ability to do what he needs to do, but I do ask him to consider what Members have said about the safeguards to ensure that there is the right framework, particularly around drafting amendments and suchlike, so that we get this right. The Bill is needed and the Government are absolutely right to do what they are doing. As with any piece of legislation, it is about ensuring that we iron out the creases. I hope the Minister will give us those assurances today.
It is a pleasure to serve with you in the Chair, Dame Maria, especially after our time together on the Women and Equalities Committee.
The Opposition recognise that enabling the City to the thrive will be fundamental to support the country and to help people through the cost of living crisis. We need a regulatory framework that allows our country to take advantage of opportunities outside the EU, whether by unlocking capital in the insurance sector for investment in green infrastructure or supporting the vibrant UK fintech sector to thrive.
The Minister knows that the Opposition are broadly supportive of the Bill. We welcome clause 1, which will empower the UK to tailor regulation to meet our needs outside the EU, but my questions are similar to those posed by my hon. Friend the Member for Wallasey. What reassurance can the Minister provide that clause 1 will not result in the Government diverging for divergence’s sake and, in the process, unnecessarily revoking rules that might boost the competitiveness of the City or protect consumers from harm? As my hon. Friend said, we want a bit more detail on clause 1.
I also have a few technical questions. Will the Minister confirm whether his Government still plan to revoke all retained EU law by the end of 2023? What assessment has he made of the impact of that date on UK financial services? The date seems a bit arbitrary and we want to know how much thought went into coming up with it. Does the Minister think there is a risk of creating uncertainty and extra costs for the sector by forcing financial services businesses to unnecessarily adapt their business models by the end of next year? A bit of information would help us gain clarity on the clause.
I shall be brief. Broadly speaking, I support the three clauses and particularly clause three on the qualifications it puts on how the Treasury will utilise those powers. I do not know the inner machinations of the Treasury. I know there are people in this room, particularly the hon. Member for Wallasey, who probably know it better than me, but the practical reality needs to be an important part of this as we debate the clauses too.
I hope my hon. Friend the Minister will say to me that the Treasury will not fly solo without consultation with the regulator. Clearly, the Treasury has built a partnership with the regulators, which forms a key part of any sort of work within the scope of these three clauses, particularly amendments of regulation and the qualifications under clause three. I am just keen to stress the point to my hon. Friend that as the Bill progresses and is practically applied, that discourse with regulators is a key part of its implementation.
The hon. Member for Wallasey made a fair point about the loosening of restraints. The assurances we seek from my hon. Friend are just to ensure that the frameworks that in place are robustly monitored and maintained. That will be the key to ensuring that the constraints under which my hon. Friend’s Department is placed as he executes the provisions of these clauses are properly maintained.
I welcome the contributions from the hon. Members for Kingston upon Hull West and Hessle and for Wallasey, and my hon. Friend the Member for West Bromwich West. Both sides of the House are wrestling with exactly the same issue, which is taking what is acknowledged to be an unprecedented corpus of European law, which the Westminster Parliament had no opportunity to have oversight of or change—
(1 year, 10 months ago)
Public Bill CommitteesI am a vice-chair of the APPGs on environmental, social, and governance and on financial markets and services. I also spent 14 years in financial services and my wife works in financial services.
I am chair of the all-party parliamentary group on financial resilience.
My husband and two sons work in financial services.
(1 year, 11 months ago)
Commons ChamberIt is always our duty to help the most vulnerable in society. That is why we have had the energy intervention and the covid-19 pandemic intervention. It is also incumbent on the Government to seek to enable growth. That is what we are focused on, too, in this plan.
I welcome my right hon. Friend to his position. As he will know from his previous portfolio, highly energy intensive industries have been acutely affected by rising energy prices. I welcome the Government’s intervention on energy prices, but what we need in the black country, particularly in our advanced manufacturing and metals industries—this point was stressed yesterday to my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy—is continued communication between the Treasury and the Department for Business, Energy and Industrial Strategy. Will my right hon. Friend assure me that those discussions will be ongoing, and that as circumstances change for highly energy intensive industries, the Treasury remains open to carrying on that dialogue?
My hon. Friend will appreciate that as the Secretary of State at BEIS, I was very focused on energy intensive industries. I did engage Treasury colleagues then, and now that I am in the Treasury, I will be very happy to engage with BEIS colleagues on this pressing issue.