(6 years, 5 months ago)
Commons ChamberOrder. May I gently point out that Members who were not present for the statement cannot suddenly beetle into the Chamber and expect to be called to ask a question? I am sorry, but that is not on.
(6 years, 5 months ago)
Commons ChamberI thank my hon. Friend for that answer. The oil and gas industry based in the north-east of Scotland has contributed over £330 billion to the economy, supports over 330,000 jobs across the United Kingdom and has a supply chain worth nearly £30 billion. With an estimated 20 million barrels of oil still to get out of the North sea, the industry has huge potential to drive this country’s growth, but of course there is still uncertainty, so I know that the Minister will welcome the response—
Order. I am sorry to interrupt the hon. Gentleman, but we need a single-sentence question, not a preamble.
Will the Minister pledge to work continually with the industry to develop and deliver the sector deal?
What discussions has the Minister had with the Treasury about the impact of Her Majesty’s Revenue and Customs’ new end-use procedure changes on the gas and oil industry?
Apologies, Mr Speaker. I was congratulating myself too much!
The Government-owned British Business Bank provides £4 billion to support more than 60,000 UK small and medium-sized enterprises. We plan to unlock more than £20 billion of investment in innovative and high-potential businesses, including a new £2.5 billion investment fund with the British Business Bank. The Small Business Commissioner helps with payment issues, dispute resolution, and the sourcing of advice throughout the UK. Through the industrial strategy, we are continuing to invest in 38 growth hubs across England, as well as the business support helpline.
(6 years, 5 months ago)
Commons ChamberI rise to make a short contribution to the debate on this important Bill. I pay particular tribute to the right hon. Member for Don Valley (Caroline Flint) and my hon. Friend the Member for Weston-super-Mare (John Penrose) for their persistence over time to get us to this point.
The Bill will make a real impact on the day-to-day lives of the people who elected me, which is why it matters very much to me and why I have been pleased to sit here listening to the debate for several hours. When it comes to such important issues, we are talking not about academic abstractions or economic theories, but about reducing the energy bills of my constituents. That really does matter to me, as it matters to them, so I support the Bill and wish to make a few comments on it.
The price cap in the Bill is not, as some might fear, a corruption of the free market, but a market intervention to protect consumers from the worst excesses of a market that is not working. On a related note, I shall quote the words of a very famous Scotsman, which I am sure that you, Mr Speaker, will recognise instantly:
“People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.”
I am not laying the charge of corruption against the big six, but their activities might be described as a contrivance to raise prices.
The price cap is a blunt object—
Order. I was rather hoping that the hon. Gentleman was going to furnish us with the page reference in “The Wealth of Nations”.
I am unable to furnish you with the page number in “The Wealth of Nations”, Mr Speaker, but you are absolutely right that it is, of course, the famous Scotsman, Adam Smith, to whom I was referring. He was a great soul indeed.
The price cap can be a blunt object if it is left in place too long: it could cause stagnation; it could cause a reduction in competitiveness; and it could reduce the scope for investment in innovation in the sector. The effect of the price cap is not intended to result in that end; it is to lead to something far subtler. I am talking about a market intervention that is consumer-led and that is about empowering consumers. I am glad that the cap is time limited. It gives us time, as has been said by many Members in this debate, to fix the market, but what does the fix look like? My contention is that the Government, Ofgem and the industry must work harder to create this consumer-led marketplace. New technology is becoming available to empower consumers—to give them more control over their energy consumption and supply like never before. It gives consumers the data they need to optimise their energy consumption and to give them control over their energy costs.
The idea of this technology is the start of something that is unstoppable—I am talking about the idea of the smart home. In effect, what it does is give power to consumers, which ultimately is what this Bill is all about. The average household energy bill—if someone is on a standard variable tariff—is between £1,200 and £1,300 a year. It is incredible how little interest many consumers pay to that kind of expense going through their households. Part of the remedy to this disengagement, or lack of interest, must be to give consumers the confidence to feel empowered to deal with those costs. At the heart of all this is the smart meter. I do not have time in this debate to talk much about smart meters, but they can create data, display data and give uses to data that help consumers to optimise their energy bills.
We need to make it easier for people to switch. There is a great fog that comes over many people’s minds when they are given the opportunity to switch suppliers. If we can make it as easy to switch supplier as it is to open an app on a smartphone or press a button on a smart meter, the game is on. I remain convinced that this technology can fix the market in time—and “in time” is the key phrase. We need a real national effort to install smart meters in every property across the country. There is a Bill, which has gone through this place and is now in the other place, that is about smart meters. There are issues about smart meters that demand the urgent attention of anyone who has an interest in seeing this vital national infrastructure installed in this country. There are technical issues, but that is not what we are here to discuss.
What are we discussing? Why am I standing here in the first place? Frankly, it is because we have a broken market. I wish to apportion blame for that: I put the blame firmly at the door of the regulator, which has been around, in one form or another, since the 1980s. I firmly believe that the regulator already has the power to do what this Bill will give it the power to do, but it lacks the will to use that power.
As a member of the Business, Energy and Industrial Strategy Committee, I was astonished to hear the leadership of the regulator, who were in front of us, admit in effect that they had the power to set the tariff cap, but that they were too frightened of litigation from the companies that they were supposed to be there to regulate in the first place. As we say in Sterling, why have a dog and bark yourself? That seems an apt expression for a regulator that has failed to protect the free market and has allowed itself to be sucked into the game of special interests. It is almost protecting the very businesses that it was supposed to be there to regulate. It is now time to question Ofgem and its fitness for purpose. If the leadership of Ofgem will not take these powers that will inevitably pass through Parliament and become law and use them to protect the customer and to build and create a proper, free and competitive market in energy, that leadership will need to be changed. It is time that we were better served by that regulator.
The energy suppliers are benefiting from this lax regulatory regime. By creating a situation in which they charge rip-off prices for standard variable rates, the big six suppliers have broken the covenant that all companies have with their customers. They have lost the trust of the people. They may use the period of the tariff cap to restore and rebuild that trust by working to create this proper functioning marketplace.
Let us not forget what these companies have done. They have used profits from standard variable tariffs to subsidise their cheaper tariffs. Unengaged consumers have been punished harshly because of their loyalty, to the tune of at least £300 per household per year—much too high. According to the Competition and Markets Authority, the country has overpaid a total of £1.4 billion. Consumers have been ripped off for years at the hands of companies that should have known better and at the mercy of a regulator that has proved ineffective. It is time for us to take action and to work pragmatically to solve this problem for our constituents. It is a time not for economic dogma or ideology, but for proper pragmatism. The Bill is a superb example of the pragmatism that this Government pursue, and I am proud to support it.
(6 years, 5 months ago)
Commons ChamberThe hon. Gentleman has drawn attention to a very important issue. It is not just individual householders who are suffering; many companies are also suffering, and the smaller ones may face bankruptcy as a result of not being paid by the other companies. The ripple effect of these actions extends very far, and of course it is by no means limited to one part of the country. This is happening in all the nations of the United Kingdom.
My constituent went on to say:
“I understand that Trading Standards and the Federation of Master Builders had been aware of complaints about this company for more than a year. I also understand that DMB Solutions owed…half a million pounds in taxes.
How can it be that they were still allowed to be operating, and taking money from new customers for work that it was likely they had no intention of completing satisfactorily? I am sure that had I personally owed a proportional amount of money in taxes, someone in authority would have been having a stern conversation with me about it.”
I think that my constituent was entirely right.
One of the striking features of the many cases brought to my attention is the fact that—as we heard from the hon. Member for Hove—the office of DMB Solutions was sending out invoices to customers for work yet to be undertaken, right up until a few days before the directors of the company called in the liquidators on 29 December. For example, Mandy Stewart, a teacher, contracted with DMB Solutions last summer to do a loft conversion at her home. Her partner’s daughter and granddaughter were moving in with them, and work began in mid-October. The project was never completed. Mandy was left with a partially finished and uninhabitable loft conversion, damage to her neighbour’s roof, and damage to her ceilings and light fittings because a tarpaulin had been badly fitted by DMB’s workers during wet and windy weather.
Having paid some £41,000 to DMB Solutions, Mandy is now faced with finding further funds to have the work completed. She also needs to pay for inspection by a structural surveyor to ensure that what has been done so far is safe, to engage building control representatives to sign off the work and to have scaffolding re-erected because the previous company took theirs down when they had not been paid by DMB Solutions.
Furthermore, on 21 December, Mandy received an invoice for almost £10,000 for the next stage of the project. It was not actually due until January, but the covering e-mail from DMB Solutions stated that it was being sent early because the DMB offices would be closed during the Christmas break. As by then Mandy had serious concerns about the work that had been done, she did not pay, but, as she says,
“it is extremely hard to believe that the DMB directors did not know that the company was insolvent on 21 December 2017, barely four working days before they called in the administrators.”
From the accounts that I have been given, it is clear that Mandy is far from alone in having been invoiced by DMB Solutions for a large sum of money, by email on or about 21 December, when the directors must have known that the company faced imminent insolvency. In fact, it is clear that the company was signing up new customers as late as mid-December. Charlotte Preston paid £11,000 to DMB Solutions for an extension to her home on 15 December, but no work was ever started. Even more disturbingly, it is clear that disgruntled customers of DMB Solutions were reporting serious concerns about the company to trading standards as far back as early 2016.
According to accounts filed with Companies House on 11 December, by the time the company went into liquidation on 2 January this year, it owed no less than £542,000 to HMRC in unpaid VAT. Indeed, it seems that it may have been trading unlawfully for a considerable time before its collapse. One member of the Facebook victim support group, Andrew Painton, first raised concerns with trading standards that DMB Solutions was trading fraudulently, rather than just incompetently, in March 2017, and has done so many times since then. In January this year, Andrew told me:
“To say that the performance of Trading Standards has been lamentable would, in my view, be over praising them. They could have done so much more to protect the customers who became victims of this company during the latter nine months of 2017.”
He continued:
“In the Autumn of 2017, a fellow member of the Facebook victim support group submitted a Freedom of Information request to Trading Standards, and this revealed the escalating number of complaints in recent years about DMB Solutions. This did galvanise Trading Standards into action…but it was too little too late.”
I recognise, of course, that Ministers are not responsible for the collapse of private sector businesses, but I hope that the Minister will be able to help this evening by providing clarity about what my constituents can do. Specifically, they want to know how to try to obtain financial recompense and how to ensure that the directors of DMB Solutions cannot simply walk away from their debts—both to their unfortunate customers and to the taxpayer—and start all over again by forming a new company. I can find no adequate Government guidance on either of those points. If there is no comfort under existing legal frameworks, perhaps the Minister can point me to the changes that would be required to company law, or any other laws, that would allow my constituents to be recompensed for their suffering.
Since December, the local trading standards office has been collecting evidence from those affected by the collapse of DMB Solutions. It has also advised them to make a complaint to the Action Fraud line, which reports to the National Fraud Intelligence Bureau, based in the City of London police service. Trading standards in Brighton also says that it plans to submit a report to the economic crime unit of Sussex police. However, the Action Fraud line appears to focus on cyber-crime, rather than incompetently run or even unlawfully run building companies, and the House of Commons Library has been emphatic in advising me that there is nothing that trading standards will now be able to do for those of my constituents who have lost out as a result of the collapse of DMB Solutions. The Library tells me that the appropriate body, at least in terms of seeking to get the directors of DMB Solutions disqualified from acting as company directors in future—something my constituents are understandably keen to see happen—is the Insolvency Service.
My office has consulted a local lawyer specialising in consumer rights, who similarly suggested that the Insolvency Service, not trading standards, is the appropriate body for my constituents to complain to about DMB Solutions. However, the Insolvency Service phone line no longer exists, and its website has a small amount of hard-to-find information on it, stating that it can carry out a confidential investigation or pass complaints on to another public body if they are serious enough, and that if it finds anything wrong and has enough evidence it might ask a court to close a company down or disqualify the company’s directors. It might also carry out a criminal investigation if it finds the company has committed an offence.
However, Andrew Painton of the Facebook victim support group tells me that he has twice complained to the Insolvency Service about DMB Solutions, but on each occasion received only a standard response saying that the service was not considering an investigation against the company. Moreover, the Insolvency Service advises that if a company has already gone into administration, into receivership or is being liquidated, complaints need to be directed to the official receiver or insolvency practitioner. I have emailed them myself, but to date have not had a response.
Trading standards—which appears to have done nothing when it had the chance to do so—is now acting as if it is responsible. It is doing so in concert with Action Fraud and the National Fraud Intelligence Bureau, which does not appear to me to have any obvious role in such a situation. My constituents are confused and they need clarity about who is responsible for ensuring enforcement of the law against the directors of DMB Solutions. In short, it is all about as clear as mud.
While I do not, of course, expect the Minister to accept any responsibility for the collapse of DMB Solutions, I do hope he will be able to set out, clearly and authoritatively, which public body or bodies are now responsible for gathering evidence from my constituents and considering what action needs to be taken against the directors of the company. I would also like to know whether the Minister agrees that the Department should do more to ensure that members of the public have access to reliable, accurate information when such problems arise. People need to know which body to turn to, and what they can expect that body to do, first, when they experience such shockingly poor service by a private sector business—as numerous customers of DMB Solutions clearly did for at least a year before the company collapsed—and, secondly, when, as in this case, a business goes into liquidation and the directors apparently disappear.
More particularly, on behalf of my constituents, I would like the Minister to answer the following questions. If the Insolvency Service is responsible, is it good enough to have a few sparse paragraphs of so-called guidance for members of the public hidden away on a corner of its website? I do not think it is. Could there not be a single, well signposted and advertised point of contact—a one-stop shop—for members of the public who fall victim to the poor business practices and eventual collapse of a limited company like DMB Solutions? Is there perhaps a role for the Citizens Advice consumer helpline here? Currently, the helpline appears to refer only to trading standards, but what if trading standards is not the appropriate enforcement body, as we have been told it is not in this case? Could the appropriate enforcement body, whichever it is, be facilitated and resourced to take a more proactive approach to ensuring that, in such a situation, directors of a failed company are disqualified from acting as directors in future if there are grounds for such disqualification?
I appreciate that there are a number of questions, but I greatly look forward to hearing the Minister’s response, not least because many families and individuals in my constituency are depending on it.
I call the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Watford (Richard Harrington) to respond to the debate.
(6 years, 5 months ago)
Commons ChamberOn a point of order, Mr Speaker. I asked the Minister for Universities, Science, Research and Innovation whether the person specification for the board members of the Office for Students had been checked properly and if we could be assured it met the requirements of the code for public appointments. He did not address that issue, so I wonder whether you could give any advice as to how we can take it forward.
That is not a point of order for the Chair. Whether it momentarily slipped the Minister’s mind or for some other reason he chose to focus his remarks elsewhere, I do not know. The Minister is welcome to come to the Dispatch Box if he wishes, but he is not under any obligation to do so.
It is not a point of order.
It is not a point of order, as the hon. Gentleman rightly says. If the hon. Lady wishes to go in hot pursuit of the Minister and to seek to engage him in conversation on this matter, conceivably even over a cup of tea, it is open to her to try, although it does not look as though the prospects of her succeeding today are high.
On a point of order, Mr Speaker. In the Minister’s response to my hon. Friend the Member for Manchester Central (Lucy Powell), he said that the same due diligence was carried out by the same advisers on all candidates. That is simply not true. Would the Minister like to correct the record, based on the commissioner’s findings?
I am aware of the summary of the report, but I have not read the report. Again, this is not a point of order; it is a matter of debate. If the Minister wants to engage with this, he can briefly respond, but he is not obliged to do so—[Interruption.] It appears he does not wish to. What I would say to the shadow Secretary of State is that she has made her own point in her own way. As I said to somebody yesterday, she has done so with her usual force and alacrity. It is on the record and we are grateful to her.
On a point of order, Mr Speaker. I respect what you have just clarified, but what recourse does the House have regarding the former Universities Minister? I feel that he misled this House in his statement on 8 January, and the report by the commissioner has now clearly set out that it was a misleading statement. What recourse do we have regarding that Minister, who is not here today to answer?
I entirely understand what the hon. Lady is saying, but it is not right to accuse somebody of misleading the House, particularly when the Minister involved is not here. I think she probably wants to insert the word “inadvertently”—I think that would be safe.
I am grateful to the hon. Lady for her point of order. I understand her concern. The Minister in question no longer occupies this office—witness the fact that the hon. Member for East Surrey (Mr Gyimah) answered the urgent question, as he is now a Minister in the relevant Department and the hon. Member for Orpington (Joseph Johnson) now serves in another capacity. My advice to the hon. Lady is that she should repair to the Table Office, which is a short distance from here, to consult it as to the means by which questions may be capable of being put to that Minister which might elicit a reply. If that course of action proves not to be fruitful, I suggest that she approaches me again, perhaps with notice, giving me an opportunity to reflect, because certainly I believe in the importance of holding Ministers to account for present and indeed past actions.
I will come to the hon. Member for Chesterfield (Toby Perkins)—we will save him for now. He can cook for a little longer.
On a point of order, Mr Speaker. In the Minister’s gracious reply to me, he said that there should not be further education representation on the board of the Office for Students because it was about higher degrees. However, further education colleges actually do higher degrees. I just want to get that point on the record.
The right hon. Gentleman has made his own point and it is a factual one. It is on the record and it can be shared, not only with all parliamentary colleagues, but, conceivably, with the masses in his constituency of Harlow.
I think I ought to take the hon. Member for Chesterfield first, so the hon. Member for Cardiff West (Kevin Brennan) can wait.
On a point of order, Mr Speaker. In my question, I described Toby Young as an old Etonian. I am sure he has been called worse, and I could have used many other phrases, but apparently he was not educated there and so that should not be added to his charge sheet. Will you therefore allow me the opportunity to correct the record?
Yes, the hon. Gentleman has corrected the record, and I am grateful to him for his courtesy in doing so.
On a point of order, Mr Speaker. Further to the point of order of my hon. Friend the Member for Manchester Central (Lucy Powell), if there are no other means by which the House could hold the former Universities Minister, the Minister of State, Department for Transport, the hon. Member for Orpington (Joseph Johnson), to account, is it still in order to table a motion to reduce his salary as a way of expressing the House’s concern about that lack of accountability?
That has been an option deployed in the past—there are certainly precedents for it. The hon. Gentleman, who is a person of considerable perspicacity, will certainly know the route to the Table Office by now, as he entered the House in 2001. He may wish to make that journey and to inquire about the feasibility of such an approach, but that there are precedents for such an approach I am happy to confirm.
(6 years, 6 months ago)
Commons ChamberI will indeed look at that, and it has been one of the recommendations of the taskforce. It is important that we learn all the lessons and apply them quickly, and this is one such suggestion.
The local authority pension fund forum has called for a review of accounting standards, having received opinion that there are substantial legal flaws in international reporting standards. The opinion states that the standards do not enable anyone to make a meaningful assessment of a going concern, which is a highly relevant issue for Carillion. Will the Secretary of State support such a review?
I do not agree with the hon. Lady. I engaged the FRC immediately, and it is very important that we and the FRC learn the lessons. We will apply whatever is appropriate that comes from those inquiries.
The hon. Member for Poole (Sir Robert Syms) says that he was not told of the grouping. If that is so, it is a discourtesy—I hope it is not so. Maybe it got lost in the post. Let us hear from the fellow.
Order. We have a lot of questions to get through, so we do need to speed up a little bit.
The hon. Member for Cleethorpes (Martin Vickers) will know that Great Grimsby is obviously the centre of the universe, certainly in northern Lincolnshire. This project is really important, and it is essential to improving jobs, skills, housing and culture in my constituency of Great Grimsby. It does seem to have been ping-ponged between the Ministry of Housing, Communities and Local Government and the Department for Business, Energy and Industrial Strategy. Who is taking the lead, how much will the Government commit to ensuring its success and when will my very patient constituents start to see the change that they deserve?
I am always happy to engage with anyone who would like to further the cause of renewable energy in the UK, so I would be happy to do so.
More than half of Scottish energy consumption is met by renewable sources, including the Whitelee wind farm, based near Eaglesham in East Renfrewshire, which is the largest onshore wind farm in the UK, but can the Minister confirm that less-established renewable energy projects in Scotland will be able to compete for the £557 million of funding that is available as part of the clean growth strategies?
Order. May I gently remind colleagues that at topical questions progress is expected to be much quicker? We need short, sharp inquiries; people should not simply seek to bring into topicals what they would have asked had they been called—which they were not—in substantive questions. Pithy questions; pithy answers.
I shall try to be pithy, Mr Speaker.
GKN is a great British engineering company, forged in the first industrial revolution with strengths in defence, aerospace, automotive, batteries and the internet of things, which should place it at the heart of our future economy—high skills, high productivity and high wage—but the debt-driven hostile takeover threatens 6,000 UK workers, pension funds and the supply chain. The Secretary of State has said that he will not comment on individual cases, so may I ask him a general question? Does he believe that it is in the national interest for City investment houses to use debt to dismantle our industrial base?
I remind colleagues of the merits of the blue pencil. If you have a prepared question and it is a bit on the long side, just scratch a bit out—very useful, and the question never suffers.
I congratulate my hon. Friend on his tenacity in campaigning on behalf of his residents. Following his representations on the impact of the proposed redundancies, I am happy to confirm that there will be additional flexibility in how the rapid response service can be used. That means that, while there is no additional funding, all workers made redundant from Cleveland Potash will benefit from the same flexibilities for job-focused training as have been made available to ex-SSI and supply chain workers.
I think that my hon. Friend is inviting me, as a fellow south-west MP, to agree with him. Network costs vary regionally because of different costs in serving customers. Ofgem took more than £15 billion out of network costs in its last price control framework, and I look forward to introducing various measures such as the price cap Bill, which I shall be introducing shortly, that I hope will be supported by all Members of the House. We want to ensure that we have energy bills that consumers can afford and that we protect the most vulnerable in the process.
Short, single-sentence questions are now the order of the day, as will be brilliantly exemplified by the hon. Member for Westmorland and Lonsdale (Tim Farron).
I will see what I can do.
The universal service obligation for superfast broadband will be good news for businesses across the country, but the fact that the announcement has been made with no date makes it counterproductive, as that is slowing down broadband. Will the Government announce a date and say that registration can start immediately?
I agree with my hon. Friend that access to competitive finance is essential, not just for businesses affected by LARC, but more widely, and particularly for small businesses. I am happy to meet him to discuss the issues if he would like me to.
It is a great pleasure to welcome back to the House the hon. Member for Redcar (Anna Turley). I know that the House will join me in doing so.
Thank you, Mr Speaker. It is great to be back.
We have ambitious plans on Teesside to create 20,000 jobs on the former SSI steel site. The biggest issue holding us back is, obviously, the ownership of the site. Can the Secretary of State update us on what conversations he is having with the official receiver and the Thai banks to enable us to fulfil our potential, create jobs, and bring investment back to the site?
Order. I think that this point of order flows from the exchanges that we have just had. Although ordinarily points of order are made later, I will—as I sometimes do—take this one immediately after questions.
Thank you, Mr Speaker. When I asked a question earlier, I neglected to say that I am a serving member of Chichester District Council.
That is a very belt-and-braces approach, for which the hon. Lady certainly cannot be criticised in any way. I thank her, as the House will, for what she has said.
(6 years, 7 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
Order. Using language slightly loosely, the Minister referred at the outset to how the shadow Minister had called this debate. On advice, I gently remind the House that this is not supposed to be a debate or, therefore, the occasion for speeches either from the Back Benches or the Front Benches; it is a time for pithy questions and answers, to which I know we will now return with enthusiasm.
Happy new year, Mr Speaker.
This appointment sums up this incompetent Government. Toby Young is a Tory crony, and the Department for Education exaggerated his qualifications. He thinks teachers have it easy. He has shown prejudice against the working class. He has written several misogynistic tweets and, as we have heard, talked about masturbating to Comic Relief images of children in Africa. When that came to light, the reaction of Tory MPs, including the Foreign Secretary, was to defend him.
Young himself does not seem to care. He has not made a full apology, and he says that most of the tweets are several years old, which also seems to be the Minister’s attitude. Frankly, the Minister is putting his head in the sand. It was only two years ago that Toby Young was writing about eugenics for the working class. This House is supposed to be trying to be seen to clean up its act and Conservative Members were only too keen to call for action against the hon. Member for Sheffield, Hallam (Jared O'Mara) when his inappropriate tweets were made public, so the rank hypocrisy is absolutely stinking.
It has been suggested that Toby Young is on a yellow card, so will the Minister tell us what constitutes a red card? Will this appointment process be reviewed? What will the Government do to allay the concerns of the National Education Union, of students and of the wider general public? And when will the Government lead by example?
Toby labelled Islam a “deeply misogynistic religion,” and he referred to the choice of some Muslim women to adopt the hijab as forced by male oppression. At a time when many more young British Muslim women are entering higher education, do the Government consider it appropriate to appoint such a person to the Office for Students? What is the likelihood that Toby Young will command the respect of Muslim women in higher education who wear the hijab?
The hon. Member for Manchester Central (Lucy Powell) looked almost inconsolable not to be called. It is true that I was looking in her direction at an earlier stage and might very well do so again, but it would be a pity to squander her at too early a stage of our proceeding. I am saving her up.
In response to the question of the hon. Member for Manchester, Gorton (Afzal Khan), and to many other questions that might relate to individual tweets, articles or comments made by Mr Young over a long period of time, the answer is basically the same. Mr Young has acknowledged, and the Government have recognised, that much of what he said was foolish, wrong, offensive or obnoxious, and it is right that he has apologised and expressed regret for what he has said, written and done. It clearly does not reflect the values of the Office for Students or of the Government, but it is also important to recognise that, since he made many of those remarks, he has continued to make a valuable contribution to our education system, to the work of the Fulbright Commission and to the network of free schools across the country, and it is for that reason that he has been appointed to the board of the Office for Students.
I welcome the hon. Member for Morley and Outwood on her return from maternity leave, and let me say that it was a pleasure to attend her wedding.
Thank you very much, Mr Speaker. It was good to have you at the wedding.
Labour Members feign outrage at Mr Young’s use of social media, but perhaps they should look at the way their own Labour activists and Momentum have treated other candidates, including during the general election. I got attacked by someone called “Corbyn Chick” for being an unmarried mother—where are the family values there? Perhaps Labour Members—[Interruption.] Perhaps if they listened rather than shouted—[Interruption.] Perhaps they should look at how their own Momentum activists and Labour party activists treat other candidates on social media. Why the hypocrisy?
My hon. Friend makes an important point about double standards, because misogyny and misogynistic attitudes are rampant on the Labour Benches, as has been acknowledged by the hon. Member for Birmingham, Yardley (Jess Phillips), who has described a persistent pattern of
“low-level non-violent misogyny”
at the top of the Labour party. It is important that Labour Members—[Interruption.] That is what she said. It is important that Labour Members do not apply double standards when addressing this question. [Interruption.]
Order. I just say to the shadow Transport Secretary: sir, if you were a motor car, you would go from 0 to 60 in about five seconds. It is a discernible trait that I have discerned in you over a period of years and I wish to help you with this condition. Calm yourself. Just be a little calmer. There are many, many hours to go and there are many important developments to take place. Now, after due patience having been exercised, I call Lucy Powell.
Thank you very much, Mr Speaker.
Mr Young’s comments over the past few months and years speak for themselves, and the Government are making a gross misjudgment in now trying to defend them, but let us just take a moment to look at his record, as the Minister is so keen to talk to us about it. If he looked at the data dashboard for the West London Free School, he would find that progress 8 at that school is, in fact, average, and that its percentage of children on the pupil premium is below that for Hammersmith and Fulham and well below that for inner London. Perhaps that is why the school has only just got a “good” rating from Ofsted. I could give the Minister the names of many, many more people with much more experience, so is this not a case of “chumocracy”, as the right hon. Member for Harlow (Robert Halfon) rightly said?
Order. I am looking to end these exchanges at quarter past 5, so Members need to be very brief.
The Ministers says that he condemns Toby’s Young’s past comments, but the only appropriate condemnation would be to remove him from the board of the Office for Students. Does the Minister agree that a suitable replacement would be a representative from the University and College Union, so that university staff have a voice on the board?
(6 years, 8 months ago)
Commons ChamberI heartily agree with the hon. Gentleman’s celebration of our postal workers today. As he says, they will deliver in all weather to 29 million addresses across the country over the festive season. I cannot agree, however, that renationalisation is the answer. Royal Mail is in negotiations with the Communication Workers Union, and progress has been made following mediation by Professor Lynette Harris. I assure the hon. Gentleman that there would be a great loss to the postal workers, who, let us not forget, own 12%—
Order. I am extremely grateful to the Minister, but we have a lot to get through. We need to be much brisker. Sorry.
I refer to my entry in the Register of Members’ Financial Interests. As postal workers trudge through the snow this morning, they will have a right to be aggrieved at losing their pensions, while Moya Greene gets paid £1.9 million and gets free flights, paid for by Royal Mail, to Canada. Does the Minister accept that?
I understand that Royal Mail’s offer of a pay increase to its workforce is far from frozen. I do not propose to comment much further, however, other than to say that the figures the hon. Gentleman refers to are misleading, because they go way beyond the chief executive’s base salary and include performance-related benefits, which are in line with a position of that stature.
Order. The Minister may judge that the figures are misleading, but I am sure she would not suggest that the hon. Gentleman would deliberately mislead the House.
My hon. Friend should be reassured that nothing would please me more than coming to Frome in Somerset to see the work that he has done locally. The clean growth strategy sets out how the UK is leading the world on carbon emissions, and we have set out how the Government will invest more than £2.5 billion in low-carbon innovation between 2015 and 2021.
I am sure that Frome will roll out some sort of carpet for the hon. Gentleman.
Major banks have lent £630 billion to build new coal-powered stations across the world, many of them in our competitor countries. What assessment has the Minister made of the cost of electricity for the competitiveness of businesses in the UK and does he not recognise that our attempts to save the world while the rest of the world is gaily building power stations fuelled by coal only damage our economy?
There is a lot of chuntering from a sedentary position, which I will not take any notice of. I would like to answer the question if Opposition Members will allow me.
My hon. Friend should know that the cost of renewable energy is coming down. The cost of electricity from offshore wind farms, for example, has halved in price since they were first introduced. The Opposition may interpret this to mean that my hon. Friend is wrong. I would say that he is not wrong but he needs further education on this subject, and I will be delighted to meet him at any time to discuss it.
We have some very shy Government Back-Bench Members at this point, so I call Graham Jones.
The Labour manifesto in the summer committed to 60% of our heat and power being produced from zero-carbon or renewable energies. When will the Government match that ambition from the Opposition?
(6 years, 9 months ago)
Commons ChamberAbsolutely, which is why our focus is on getting the best possible deal in the Brexit negotiations. Maintaining a tight grip on Government finances is, as my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) pointed out, vital for any Government, and Opposition Front Benchers would do well to look at that when they are considering—[Interruption.] I see that the shadow Chancellor is on his iPad looking up what the—[Interruption.] I can help him out without an iPad. His plans would mean an additional half a trillion pounds-worth of debt. If hon. Members want to know how much extra interest the British public would have to pay every year, I can tell them that it is £7 billion. I do not need an iPad to know that.
This Government are prioritising our country’s long-term growth prospects. We are investing in the infrastructure and in the skills that our country needs to succeed. Whatever the Opposition say, it is not politicians or Whitehall that will turbo-charge our economy and bring the growth and improved living standards we all want; it is the enterprises up and down the country that are going to deliver that. The Opposition want to tax new industry to the hilt or, even worse, to run it themselves. I cannot think of a more scary prospect for businesses across Britain. We take the opposite view; we want to unleash enterprise and to make sure that businesses have the people, space and the conditions to succeed. This is a Budget that recognises where the true value of our economy is created. It is not through issuing blank cheques that we cannot afford, but by making sure that our enterprises have the skills, talent and space that they need to grow and to ensure that all our citizens benefit from our powerhouse future. That is why the House should support the Budget in the Lobby tonight.
Question put and agreed to.
Resolved,
That income tax is charged for the tax year 2018-19.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
I am now required under Standing Order No. 51(3) to put successively, without further debate, the Question on each of the Ways and Means motions numbered 2 to 44, on which the Bill is to be brought in. These motions are set out in a separate paper distributed with today’s Order Paper.
I must inform the House that, for the purposes of Standing Order No. 83U, with which I feel sure all colleagues are personally and closely familiar, and on the basis of material put before me, I have certified that in my opinion the following founding motions published on 22 November 2017 and to be moved by the Chancellor of the Exchequer relate exclusively to England, Wales and Northern Ireland and are within devolved legislative competence: motion 3, on income tax (main rates); motion 35, on stamp duty land tax (higher rates for additional dwellings); and motion 36, on stamp duty land tax (relief for first-time buyers). Should the House divide on any of these motions it will be subject to double-majority voting.
The Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3)).
2. CORPORATION TAX (charge for financial year 2019)
Resolved,
That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made taking effect in a future year charging corporation tax for the financial year 2019.
3. Income tax (MAIN RATES)
Resolved,
That for the tax year 2018-19 the main rates of income tax are as follows—
(a) the basic rate is 20%,
(b) the higher rate is 40%;
(c) the additional rate is 45%.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
4. Income tax (Default and savings rates)
Resolved,
(1) That for the tax year 2018-19 the default rates of income tax are as follows—
(a) the basic rate is 20%,
(b) the higher rate is 40%;
(c) the additional rate is 45%.
(2) That for the tax year 2018-19 the savings rates of income tax are as follows—
(a) the basic rate is 20%,
(b) the higher rate is 40%;
(c) the additional rate is 45%.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
5. Income tax (starting rate limit for savings)
Resolved,
That section 21 of the Income Tax Act 2007 (indexation) does not apply in relation to the starting rate limit for savings for the tax year 2018-19 (so that, under section 12(3) of the Income Tax Act 2007 as amended by section 4 of the Finance Act 2017, that limit remains at £5000 for that tax year).
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
6. Transferable tax allowance
Resolved,
That—
(1) Chapter 3A of Part 3 of the Income Tax Act 2007 (transferable tax allowance) is amended as follows.
(2) Section 55B (tax reduction: entitlement) is amended in accordance with paragraphs (3) to (5).
(3) In subsection (2) (conditions for entitlement to tax reduction)—
(a) for paragraph (a) (individual is spouse or civil partner of maker of election in force under section 55C) substitute—
“(a) the individual is the gaining party (see section 55C(l)(a)) in the case of an election under section 55C which is in force for the tax year,”, and
(b) in paragraph (d), for “individual’s” substitute “relinquishing”.
(4) After subsection (5) insert—
“(5A) In this section “the relinquishing spouse or civil partner”, in relation to an election under section 55C, means the individual mentioned in section 55C(l)(a) by whom, or by whose personal representatives, the election is made.”
(5) In subsection (6) (reduced personal allowance for transferor)—
(a) after “under subsection (1)” insert “by reference to an election under section 55C”, and
(b) for “individual's” substitute “relinquishing”.
(6) Section 55C (elections to reduce personal allowance) is amended in accordance with paragraphs (7) and (8).
(7) In subsection (l)(a) (individual may make election if married or in civil partnership)—
(a) after “the same person” insert “(“the gaining party”)”, and
(b) in sub-paragraph (ii), after “when the election is made” insert “or, where the election is made after the death of one or each of them, when they were last both living”.
(8) After subsection (4) insert—
“(5) The personal representatives of an individual may make any election for the purposes of section 55B that the individual (if living) might make in relation to—
(a) the tax year in which the individual dies, or
(b) an earlier tax year.”
(9) Section 55D (procedure for elections under section 55C) is amended in accordance with paragraphs (10) and (11).
(10) In subsection (3) (elections which are not automatically continued in force for subsequent years), after “is made after the end of the tax year to which it relates” insert “or is made after the death of either of the spouses or civil partners”.
(11) In subsection (4) (election may be withdrawn only by individual who made it), after “by whom the election was made” insert an election made by an individual's personal representatives may not be withdrawn”.
(12) The amendments made by this Resolution—
(a) come into force on 29 November 2017,
(b) have effect in relation to elections made on or after that day, and
(c) so have effect even where a relevant death occurred before that day.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
7. Deduction for seafarers’ earnings for duties performed outside UK
Resolved,
That provision may be made in connection with the application of Chapter 6 of Part 5 of the Income Tax (Earnings and Pensions) Act 2003 in relation to employment in the Royal Fleet Auxiliary Service.
8. Exemption for armed forces’ accommodation allowances
Resolved,
That provision may be made exempting, from income tax, amounts paid as accommodation allowances to, or in respect of, members of the armed forces of the Crown.
9. Benefits in kind: cars
Resolved,
That provision (including provision having retrospective effect) may be made amending Chapter 6 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003.
10. Foreign-service relief for benefits on termination of employment
Resolved,
That provision may be made amending Chapter 3 of Part 6 of the Income Tax (Earnings and Pensions) Act 2003 in connection with restricting, in relation to payments and other benefits received in connection with the termination of a person's employment, relief given by that Chapter by reference to service within the definition of “foreign service” given by section 413(2) of that Act.
11. Employment income provided through third parties
Resolved,
That provision may be made in connection with—
(a) the application and operation of Chapter 2 of Part 7 A of the Income Tax (Earnings and Pensions) Act 2003, and
(b) the operation of Part 11 of that Act in connection with Schedule 11 to the Finance (No. 2) Act 2017
12. Disguised remuneration schemes (earnings charged to tax)
Resolved,
That—
(1) In section 554A of the Income Tax (Earnings and Pensions) Act 2003 (employment income provided through third parties: application of Chapter 2 of Part 7A), after subsection (5) insert—
“(5A) Subsections (5B) and (5C) apply where—
(a) a payment to a person other than A, or to A as a trustee, is of earnings from A's employment with B, and
(b) the earnings are, in whole or part, charged to tax under the employment income Parts otherwise than by virtue of this Part,
and for this purpose it does not matter whether all or some only or none of the tax is paid (but see sections 554Z5 and 554Z11B).
(5B) For the purposes of subsection (5C), an arrangement is a “redirected- earnings arrangement” if it (wholly or partly) covers or relates to redirected earnings; and for the purposes of this subsection and subsection (5C) “redirected earnings” means—
(a) the payment mentioned in subsection (5A)(a), or
(b) any sum or other property which (directly or indirectly)—
(i) represents, or
(ii) is derived from,
that payment.
(5C) The circumstances mentioned in subsection (5A)—
(a) do not prevent a redirected-earnings arrangement being within subsection (l)(b), and
(b) do not prevent rewards or recognition or loans being in connection with A's employment with B for the purposes of subsection (l)(c) where there is use of redirected earnings for the provision of the whole, or part, of the rewards or recognition or loans.”
(2) The amendment made by paragraph (1)—
(a) come into force on 29 November 2017,
(b) has effect for the purposes of the operation of Part 7 A of the Income Tax (Earnings and Pensions) Act 2003 in relation to relevant steps taken on or after 22 November 2017, and
(c) so has effect in the case of payments within the new subsection (5A)(a) whenever made (including ones made before 6 April 2011).
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
13. Trading income provided through third parties
Resolved,
That provision may be made about information for the purposes of the operation of Schedule 12 to the Finance (No. 2) Act 2017.
14. Pensions
Resolved,
That provision (including provision having retrospective effect) may be made about the application of Part 4 of the Finance Act 2004 in relation to—
(a) pension schemes that are Master Trust schemes,
(b) pension schemes established under section 67 of the Pensions Act 2008,
(c) pension schemes that have a dormant sponsoring employer, and
(d) pension schemes treated as registered by virtue of paragraph 1(1) of Schedule 36 to the Finance Act 2004.
15. EIS, SEIS, SI and VCT reliefs
Resolved,
That provision may be made about reliefs under Parts 5, 5A, 5B and 6 of the Income Tax Act 2007, including—
(a) provision having retrospective effect, and
(b) (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision taking effect in a future year.
16. PARTNERSHIPS
Resolved,
That the following provision relating to partnerships may be made—
(a) provision as to how tax legislation applies where a partner is a bare trustee;
(b) provision for determining the income tax liability of indirect partners;
(c) provision about income tax returns for partnerships.
17. Research and development expenditure credits
Resolved,
That provision may be made amending section 104M(3) of the Corporation Tax Act 2009.
18. INTANGIBLE FIXED ASSETS
Resolved,
That provision may be made amending Part 8 of the Corporation Tax Act 2009.
19. Corporation tax treatment of oil activities: tariff receipts etc
Resolved,
That provision may be made about the meaning of “tariff receipt” for the purposes of Part 8 of the Corporation Tax Act 2010.
20. Hybrid and other mismatches
Resolved,
That provision (including provision having retrospective effect) may be made amending Part 6A of the Taxation (International and Other Provisions) Act 2010.
21. Corporate interest restriction
Resolved,
That provision (including provision having retrospective effect) may be made relating to Part 10 of the Taxation (International and Other Provisions) Act 2010.
22. Corporation tax: Education Authority of Northern Ireland
Resolved,
That provision (including provision having retrospective effect) may be made relieving the Education Authority of Northern Ireland of liability to corporation tax.
23. Chargeable gains (indexation allowance)
Resolved,
That provision may be made restricting indexation allowance for gains chargeable to corporation tax.
24. Chargeable gains (transfer of assets to non-resident company)
Resolved,
That provision may be made amending section 140 of the Taxation of Chargeable Gains Act 1992.
25. Chargeable gains (depreciatory transactions)
Resolved,
That provision may be made amending section 176 of the Taxation of Chargeable Gains Act 1992.
26. First-year tax credits
Resolved,
That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made about first-year tax credits paid in connection with relevant first-year expenditure under the Capital Allowances Act 2001.
27. DOUBLE TAXATION RELIEF
Resolved,
That the following provision relating to double taxation relief may be made——
(a) provision in relation to counteraction notices given under Part 2 of the Taxation (International and Other Provisions) Act 2010;
(b) provision restricting credit relief under that Part, or deductions for foreign tax paid, by reference to amounts attributable to an overseas permanent establishment of a company that are used to reduce a foreign tax;
(c) provision (including provision having retrospective effect) to secure that the double taxation arrangements to which effect may be given by Order in Council include arrangements modifying the effect of earlier such arrangements and arrangements conferring functions on public authorities within or outside the United Kingdom.
28. bANK LEVY
Question put,
That provision may be made amending Schedule 19 to the Finance Act 2011, including (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision taking effect in a future year.
(6 years, 9 months ago)
Commons ChamberOrder. Just before we get under way, I remind the House that the subsequent business is very heavily subscribed. Secondly, I point out again to the House, as I did on Thursday, that there is a growing phenomenon, I am afraid, of Members turning up late for statements—that is to say, after the relevant Minister has begun the statement—and then expecting to be called. This is in defiance of very long-standing parliamentary convention. So, today, I am afraid, and there are some very capable and assiduous Members involved—no fewer than seven—I am going to say I will not call people who turned up late. Members have really got to get used to looking at the monitor and getting here in time, and if they do not, they lose out. So please do not come to the Chair and say, “Yes, but there is a special mitigating circumstance. I was responding to an email from a long-lost relative” or, alternatively, “I was feeding my budgerigar, and it couldn’t wait.” The answer is, those matters, if they arise, must be put second, and the Chamber first. We will await the contributions of those distinguished and illustrious Members on another occasion.
After the unremitting negativity from Labour, may I say how enthusiastic my right hon. Friend has been—and rightly so—about advanced manufacturing, R and D, science and technology, and pharmaceuticals? What steps is he taking to increase productivity in a different sector that employs over 3 million people in the United Kingdom—tourism and hospitality?
I particularly welcome the commitment in the document to local industrial strategies, especially the reference on page 226 to the Greater Grimsby project board, of which I am a member. It is a private sector-led board. Does my right hon. Friend agree that that is the best way forward for developing strategy, and will he commit to meeting the board in the not-too-distant future?
I had not previously been aware of the hon. Gentleman’s membership of that important board, but I am now.
I was aware of it, and I am delighted that my hon. Friend asks this question. There is a big opportunity for Grimsby, Cleethorpes and the surrounding area to participate in the revival that this industrial strategy offers. The board, which involves the private sector and people with a big commitment to Grimsby and the area, is featured for the particular reason that its leadership is already achieving results, and we are very keen to push that forward.