Taxation (Cross-border Trade) Bill

Wera Hobhouse Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 16th July 2018 Commons Chamber

[Mr Leslie]

Exactly. Presumably the Government think they can negotiate on that between the UK and the EU bilaterally, but actually that is not the way that this works. Under the WTO arrangements, we have to make sure we have the same application of rules as we would in other arrangements around the world.

A customs union is not just preferable; it is the only realistic option. The idea that the European Union is going to say, “Fine, we’re happy with you splitting the four freedoms” is for the birds. That is not going to happen, especially as populism is running riot worldwide. The EU feels very firmly that it wants to defend the international rules-based system. It feels very firmly that the four freedoms of the single market and the customs union are integral to it. The idea that Switzerland provides an example, when it has endured decades of constant treaty negotiations year after year after year—that is not a model Britain should seek to parallel.

The idea that we should simply hope that by focusing on the withdrawal agreement we can secure our future is also a fallacy. The notion that we will be able just to staple on to the back of this arrangement, on a few sides of A4, political statements on our future relationship with the EU is deeply dangerous. We have to make sure that we settle these issues—I know the former Brexit Secretary agrees on this particular point. The idea that what is said on one side of exit day will necessarily be enforced on the other side of exit day is just not true. There is no legal enforceability to any warm words about our future relationship. These issues have to be set out at this particular stage.

[Wera Hobhouse (Bath) (LD)]

Does the hon. Gentleman not agree that it is time we listen to the people who run businesses, rather than sit in our comfortable seats telling people what to do?

[Mr Leslie]

Yes, and the problem we have had is that ideology and populism have been running this country for the last few years. We need to stop that and assert common-sense economic reality much more. As the right hon. Member for Broxtowe was saying in her speech, this transcends the political parties. This is not a time to be playing party political games of advantage. Our country is absolutely at stake here.

--- Later in debate ---

[Yvette Cooper]

I would caution the right hon. Gentleman against dismissing the rules of origin checks. There is a huge worry about the burden that they will impose on small businesses in particular. There is a big difference between large and small businesses in this regard. It might be worth large businesses claiming the money back because they can set up systems to do so, but for small businesses the process can be devastating. I am thinking particularly of the huge number of small businesses that have not yet traded outside the EU and for which rules of origin will be a new burden.

Why on earth would we want to add these additional burdens and checks on businesses that have not faced them before? I find myself in a very strange position. I, as a Labour MP, am arguing far more strongly and passionately against these additional burdens on businesses than those on the hard right of the Conservative party, who ought to be arguing against such burdens.

[Wera Hobhouse]

Will the right hon. Lady give way?

[Yvette Cooper]

I will give way once more, but I am conscious of the time.

[Wera Hobhouse]

Surely rules of origin checks are about not only tariffs, but environmental protection, for example. It is not just about the money; it is about where the products have come from, how they were produced and whether they conform with what we believe in.

[Yvette Cooper]

The hon. Lady is right. We need to address the wider issues relating to friction at the border as well.

Let me say something about the Government’s facilitated customs arrangement. I understand what Ministers are trying to do and that they are trying to square a circle. They are trying to pull us out of the common external tariff without paying any of the penalties of being outside it. I think that that is a leap of faith—it is implausible. I think that there are huge questions about whether such an arrangement is deliverable and whether it would be robust enough for the EU ever to sign up for it.

The Government are expecting that there will be sufficiently robust procedures for tariffs to be collected at the border for widgets coming in from the United States or other countries, and therefore no checks—no spot checks; no additional checks—on whether forms are being filled in correctly and accurately, on whether there is fraud and on whether there is an incentive for companies to fill in the forms in respect of one direction but then actually to move the goods in another. That is significant, because the European Commission is currently taking action to recover what it believes is €2 billion of under-claimed customs duties as a result of the UK’s failure to crack down on Chinese clothing importers’ customs fraud. Whatever the rights and wrongs of that, the point is that the European Commission and EU member states do not have confidence in our customs arrangements at the moment—never mind our asking them to join in a huge leap of faith with their agreeing to our future facilitated customs arrangement. The Government are relying on some whizzy wonderful new technology, and while I hope that that will arrive very quickly, there are serious questions about how long that will take and what the consequences will be.

My new clause 6 calls for a proper impact assessment of the consequences of being outside the common external tariff. I still cannot believe that that has not been done. I cannot believe that there has been no serious assessment of the fantasy future trade deals that will somehow make us better off, or of the additional burdens that will result from being outside the common external tariff, which will make us worse off.

Let me now say something about amendment 73, which I think is one of the most destructive measures tabled by some of the hard-right Conservatives in the European Research Group. It would remove from the Bill any provisions that would be needed for a customs union. The hon. Member for North East Somerset (Mr Rees-Mogg), who chairs the ERG, has said that that is okay because there will be a future vote. Why should there be a future vote? Why should we not vote now? I think that we should have a customs union, so let us have that vote now, rather than voting to remove the provisions from the Bill. Why on earth, for the sake of manufacturing, would we ditch those customs provisions? The ERG wants to remove the possibility of a customs union from the Bill.

I am astonished that Ministers want to accept that proposal. It is deeply destructive, and it would actually make it harder for the Government to secure the customs arrangements that we need. It means that if their facilitated customs arrangement does not work, the fall-back position will be no customs deal at all, which would be deeply damaging for our manufacturers.

I hope that our Front Benchers will also vote against this deeply damaging ERG amendment because I do not see how we can tolerate the damage that the hard right of the Conservative party wants to do to our manufacturing industry. We need to be the party that will stand up for manufacturing industry and ensure that our manufacturers can get the best possible deal as part of the Brexit process. We owe it to them to do that.

--- Later in debate ---

[Tom Brake]

The hon. Gentleman might be surprised to hear that I also worked in business before I came into Parliament. I worked for manufacturing businesses, among others. He mentions the two businesses which he in fact can mention because they are in favour of coming out of the European Union. We have heard rather a lot about those two businesses. One has of course relocated most of its production to China, so I am not sure it is particularly well positioned to talk about these things—

[Wera Hobhouse]

Malaysia.

[Tom Brake]

Malaysia, not China.

Windrush: 70th Anniversary

Wera Hobhouse Excerpts

Thursday 14th June 2018 Commons Chamber

[Peter Grant]

None of our countries can be proud of the fact that slavery was there to be abolished in the first place. In fact, I said in a Westminster Hall debate not that long ago that although I was born just inside what is now the boundary of the great city of Glasgow and consider myself to be part Weegie—by birth if not by residence—and although I am intensely proud of a lot of what Glasgow is, I can never forget the fact that Glasgow became the second city of the empire based on slavery. Where do we think the sugar was produced so that ships were needed to bring it across the Atlantic ocean? Why do we think a lot of ships were needed to bring cotton into the mills of Manchester or anywhere else? The people who produced that cotton were not given a living wage or any kind of decent working conditions. They had no choice about where they worked or what hours they worked. They were not treated as human beings; they were treated as possessions. Sometimes the machines that they were working with were treated with greater care than they were.

It was the children, grandchildren and great-grandchildren of those human possessions who then answered the call and came over to Britain to help put us back on our feet after the war. That was a remarkable gesture, because slavery was recent enough for them to remember it. Some of the older generation who they were living with would have been slaves in their younger days. They were enslaved by the white folk. They were enslaved by the mother country—or their near ancestors were—yet they still answered the call for help and came over to help sort things out. That is something that is simply impossible to comprehend.

[Wera Hobhouse (Bath) (LD)]

I thank the hon. Gentleman for giving way. It is easy to say that this country has abolished slavery, but we do live in a country with modern slavery. It is important to keep that in mind.

[Peter Grant]

I am grateful to the hon. Lady for correcting me on that point.

Earlier speakers have mentioned some individuals who made an incalculable contribution to making London what it is, to making England what it is and to making the islands of Britain what they are. I want to mention someone who, in some ways, has nothing to do with Windrush, but whose story illustrates something quite important. His name was Andrew Watson. He was born in Guyana of a Glasgow father and a Guyanese mother. His father was almost certainly an administrator on a plantation, but probably not a slave owner, although I cannot be too sure. His mother had certainly been a domestic servant at best, and she may well have been a slave. Andrew came over to the UK with his dad—we think it was after his mother died or when she became too ill to look after them. As his dad was very wealthy and well connected, Andrew had a privileged upbringing. It was the kind of privileged upbringing that very, very few Caribbean people living in the United Kingdom at that time could ever have dreamt of.

Andrew was also an exceptionally talented footballer. In 1881, he won an international cap for Scotland. He was the first black person ever to play for Scotland. I wish that we could have him back now. He played only three games for Scotland, and the results were Scotland 6, England 1; Scotland 5, Wales 1; and Scotland 6, England 1. If only we could have him back now. The reason why he stopped playing was that, for employment purposes, he had to move down to London, and the rule was that if a player did not live in Scotland, they could not play for Scotland and if they had played for one country, they could not play for another.

Andrew was the first black player to win a major trophy in any area of Great Britain. He was in London for part of his career. He was the first black player ever to appear in what we now know as the FA cup. Ninety-three years after Andrew Watson, the second black player turned out to play for Scotland. I remember him—I remember watching Paul Wilson of Celtic on the telly when I was a teenager. I was surprised to hear that Paul Wilson was the second black player to play for Scotland, because I only saw the colour of his jersey; I did not notice what colour he was.

It is a sobering thought that Andrew Watson did not experience any kind of racism. People noticed that he wore a different colour of boots to the rest of the team—in those days players had to buy their own boots, and his dad bought him a different colour from the rest of the team—but he does not appear to have suffered from any kind of racism at all from the press, from supporters or from his colleagues. Paul Wilson experienced racism when he first turned out for Scotland, and experienced it regularly when he played for Celtic, as indeed did the first generation of black players to play anywhere in the United Kingdom.

--- Later in debate ---

[Wera Hobhouse (Bath) (LD)]

It is an honour to follow the hon. Member for Glenrothes (Peter Grant). I congratulate the hon. Member for Dulwich and West Norwood (Helen Hayes) on securing this debate and giving us the chance to reflect on the enormous contribution of the Windrush generation. I also want to pay tribute to my colleague in the other place, Baroness Benjamin. She is a member of the Windrush generation who has been a leading voice in both Parliament and the community.

The treatment of the Windrush generation is a stain on our society, as the hon. Member for Glenrothes said. Our hearts reach out to those who have been subjected to terrible injustice and who have been separated from family, refused the right to return home, denied healthcare or lost a job as a result of serious failings of the Home Office. There is no question but that these people deserve to be called British citizens and to be British citizens, and to question their identity and legitimacy was callous.

I believe that there is a much deeper malaise at the heart of the Windrush scandal, which is due to this country’s current uneasy relationship with immigration and a Tory Government who have gone all out on the “hostile environment”. Interestingly, however, the Government got it completely wrong in what they believed would be the popular response of our non-immigrant communities to such concerns. When the public heard about the plight of the Windrush generation, their immediate response was one of compassion and outrage. This is the tolerant and open Britain we live in, that we need to foster and that we need to protect.

Today, people across the country are sincerely and deeply mourning the 72 people who lost their lives in the Grenfell tragedy, many of whom were not born in this country. People respond to individuals as soon as they make a connection with them. It is the dehumanisation of immigration that has made this subject so toxic.

[Mr John Hayes]

Inasmuch as we can gauge what different groups of the population feel about EU migration and the open borders we have endured with the European Union, the evidence suggests that minority communities—black and Asian Britons—feel just as strongly about this as white Britons. They do not take a more, as she put it, “liberal” view—I always use that term pejoratively—than any other Britons. They are proud to be here, and they understand that we have to have borders.

[Wera Hobhouse]

The point I am making is that people always talk in the abstract about curbing immigration, but as soon as they talk about individuals, they very quickly change their attitude. During the many discussions I have had and still have about the benefits or otherwise of leaving the EU—I thank the right hon. Gentleman for raising that subject—people only ever talk about the need to curb immigration in the abstract. However, as soon as they mention a neighbour or a friend who is an immigrant, the tone immediately and totally changes.

I am an immigrant—a first-generation immigrant—and I fully recognise that my skin colour makes a big difference; I cannot compare the discrimination I have faced with the suffering of Caribbean immigrants. [Interruption.] I wish the right hon. Gentleman would listen. However, the recent Brexit debate has turned attention to European immigration, and suddenly—[Interruption.] I wish he would listen. Suddenly, I understand what it means to be the target of anti-immigrant feeling, and it is not nice. People talk about curbing immigration only in the abstract, and I must say that I have never faced open hostility—except twice in a political debate—during the 30 years I have lived in this country.

I believe that it is the responsibility of politicians like us to encourage the inclusive and tolerant attitudes of our citizens. It is the irresponsible politicians who stir up and undermine the cohesion of our communities, including those of newcomers from the EU as well as black and minority communities. We must foster cohesion, not do the opposite, and we should not blame immigration for rising inequalities, job insecurity, the poor availability of housing or poor public services.

The Windrush generation fell foul of quite a lot of this malaise and of anti-immigrant feeling, but they are not the first to have suffered in that way. Only if the Government now completely change their attitude to immigration and stress the huge benefits of our immigrant populations—their hard work, their contribution and their loyalty to our country—can we make amends and the Windrush generation can feel fully vindicated.

On the 70th anniversary of Windrush, the Government must guarantee that every member of the Windrush generation will receive the support they need to claim their rightful citizenship and to live in their rightful home. The same must apply to all those who have fallen victim to discrimination, including Commonwealth citizens—the Kenyans, Australians, Indians and Pakistanis whom we have heard about today. Such people, and I include European immigrants, have established their lives here and put their trust in the UK Government to protect them. We should celebrate not bemoan the fact that many want to live in this country and call it their home. We should be proud of the open and tolerant society we have and that has welcomed so many in the past.

[Mr Hayes]

Will the hon. Lady give way?

[Wera Hobhouse]

I have nearly finished my speech.

I call for the “hostile environment” created by the Government, which led to the Windrush scandal, to come to an end. By officially recognising 22 June as a national Windrush day, we can give people from all backgrounds a reason to celebrate their unique identities, histories and rightful home in UK.

Oral Answers to Questions

Wera Hobhouse Excerpts

Tuesday 22nd May 2018 Commons Chamber

[Mr Speaker]

Order. We need to make faster progress. If people could keep their questions brief, and if answers could focus, as constitutionally they must, on the policies of the Government, that would be the proper procedure in the House. The right hon. Lady is very experienced and I know she knows that extremely well.

[Wera Hobhouse (Bath) (LD)]

3. If he will bring forward proposals for a multi-year funding plan for the NHS and adult social care.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

We will come forward with a new long-term plan for the NHS and provide a new multi-year funding settlement in support of that plan. What is also important is that we are developing policies on artificial intelligence and digital services to make sure that our NHS delivers better outcomes for patients.

[Wera Hobhouse]

To raise the amount we need for long-term sustainable services for my constituents and people across the country, will the Chief Secretary consider introducing a ring-fenced health and social care tax that would bring together spending on both services into a collective budget?

[Elizabeth Truss]

As the hon. Lady knows, the problem with such hypothecated taxes is that if the revenues from them go down, the consequence is a reduction in support for our NHS or our social care services. That is why we believe in funding those services out of general taxation. We put an extra £6.3 billion into the health service at the Budget. We are looking at the longer-term settlement, but it is important to note that this is about not just the money we spend, but how we spend it.

Leaving the EU: UK Ports (Customs)

Wera Hobhouse Excerpts

Monday 19th March 2018 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

What exactly, in simple terms, is the difference between a customs partnership and a customs union?

[Mel Stride]

In a customs union, as I am sure the hon. Lady will know, a country would be bound by the external tariffs set by that customs union. A relationship with a customs union takes the form that I have described, which would be a frictionless interaction of our exports and imports with that customs union.

Taxation (Cross-border Trade) Bill

Wera Hobhouse Excerpts

2nd reading: House of Commons
Monday 8th January 2018 Commons Chamber

[Mel Stride]

This comes back to the fundamental point that on leaving the European Union we will be leaving the customs union. Then it will simply become a question of what kind of relationship we negotiate with the EU and its customs union. The Government’s position is clear on this. We want these arrangements to be as frictionless as possible. We want to facilitate trade rather than putting barriers in the way of what will be a European customs union of 27 nations after Brexit.

[Wera Hobhouse (Bath) (LD)]

The Minister seemed to say previously that it might not be a great thing for the UK to leave the customs union and the single market, but that we were doing it because that was the will of the people as expressed in the referendum result. Is that the only reason that we are doing this?

[Mel Stride]

I apologise to the hon. Lady if I said something that in any way misled her. I do not think that I actually said that. What I said was that, as a consequence of leaving the EU, we will of necessity be leaving the customs union. Now, in the negotiations, we need to strike the best possible deal for our country—a deal that is in our interests and those of the European Union and that maintains a close, frictionless, positive and mutually beneficial relationship between ourselves and a customs union of the remaining 27 members.

--- Later in debate ---

[Bill Grant]

I share my hon. Friend’s view about the pessimism of some Opposition Members, albeit not all. The last thing that we need is to talk down the United Kingdom and our business communities. At this time, they need our support. We do not need a cliff edge for business in the UK, as well as those in the EU with which we trade.

The next few months will be crucial, and I am sure that the UK’s negotiating team in Brussels will do all it can to agree to the principle of an implementation period. The one thing this Bill must not do is limit our ability to negotiate a future trade agreement with the EU. All options must be on the table for our negotiating team to secure a future trade agreement.

Whatever the future arrangements—we do not know what they are; no deal has been struck and the die has not been cast—at the heart of the UK’s trade policy must be a continued commitment to rules-based free trade. The UK has long led the world in this area, from early trading days with sailing ships such as cutters—[Interruption.] I was thinking more of the Cutty Sark.

We have played a leading role in organisations such as the International Monetary Fund and the World Bank. We in Scotland have made an immense contribution to the UK’s trade across the world, for instance with our shipbuilding. We have done very well. We have sailed the world—I shall never forget it—and our most successful days are ahead as we remain part of the United Kingdom.

Our future trading arrangements with Europe have immense possibility. The UK starts from an unprecedented point of alignment, and I would like both sides to take this opportunity to design a customs arrangement that is both ambitious and innovative. This is not a one-way street; it is a two-way street with many movements on it. Let us imagine the Prosecco producer in Italy, the wine producers in France and Spain, the flower growers in Holland—[Interruption.] Yes, there is whisky, but we are leaving; I am thinking of the ones who remain, such as the car manufacturers in Germany and Spain. They will want a frictionless, seamless arrangement. Let us never forget that the United Kingdom is a good country to do business with. These people, among many others I could mention, will want to continue to do good business with us.

[Wera Hobhouse]

Does the hon. Gentleman not understand that the most important thing for the EU is to maintain its integrity? If everybody would get a better deal by leaving the EU, as the UK thinks it will, everybody would leave. That is exactly why the EU wants to protect its union. Does the hon. Gentleman agree that that is the first thing the EU will have in mind?

[Bill Grant]

I thank the hon. Lady for that intervention, but I think she missed the point of what I was trying to say. This is a two-way street. In fact, the trade deficit is in favour of the EU. I think that we will wish to work together as nations. Although we are leaving the EU, we are not falling out with the EU. We have made a choice. We are leaving, but we want to be friends. Basically, I was saying that the EU will wish to remain our friend for a whole range of reasons.

Above all else, the needs of businesses throughout the UK must be prioritised, which means that we must have a customs arrangement that is both highly streamlined and compatible with our colleagues in European nations. We should not create differences. We have decided to leave—[Interruption.] We can replicate and mimic, but Opposition Members forget to tell us the baggage that comes with membership of the customs union. We cannot cherry-pick; European colleagues—friends of Opposition Members and friends of mine—will not allow that.

The Bill will ensure that the UK can continue to operate as an outward-looking nation after we exit the EU, leaving open options for the Government’s implementation of an effective future trade policy. I have heard repeatedly the pessimism of some Opposition Members, although not all. They are so pessimistic and willing to talk down our businesses, capabilities and competences, and our willingness to innovate and to succeed. We will succeed and we will honour the referendum. The world truly is our oyster and we shall succeed. For that reason, I am delighted to support the Bill.

Budget Resolutions

Wera Hobhouse Excerpts

Thursday 23rd November 2017 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

Yesterday’s Budget was supposed to be “the housing Budget.” It was a crucial opportunity for the Chancellor to fix the country’s housing crisis. I listened carefully to the Chancellor’s speech, and it contained not a single mention of social homes for rent. That is the area where the biggest pressures are. A combination of factors has meant that the social housing stock has fallen dramatically and very little new social housing has been built. The figures are stark: 32,000 new social homes were built in 2011, but just 5,000 were built in 2016.

In the past few years, local authorities have been encouraged to transfer all their housing stock into local housing associations, to wipe historical debt off the housing revenue account. The Chancellor announced that he will lift the borrowing cap for local authorities in high-demand areas, but that is not enough. It does not address the problem in areas where housing stock has been transferred and, if anything, it should be applicable to all local authorities. There is no need to restrict councils at all. All that does is to make it more complicated for councils and potentially delay the delivery. Why does it apply only from 2019—why not straight away?

The housing stock of my local authority, Bath and North East Somerset Council, is now held by a housing association. It needs traditional subsidies to build new social homes for rent. Let me give an example: Foxhill is a big housing estate in my constituency that is in need of regeneration, but it has to be completely self-financed and the housing association has to operate like a private house builder. Some 75% of the new homes built will be sold privately, and the overall number of social homes to rent on site will not change. The housing association has not been able to access any funding to build new social homes—and not for lack of trying or lack of will. The devil is in the detail. Will the Minister clarify exactly what has changed and how housing associations will now be able to access funding to build new social homes for rent?

On affordable housing, houses built and sold by the private sector are no longer affordable for an increasingly large number of people. The problem of affordability is not going away without a big change in housing policy. The Chancellor has talked about the problem of land-banking. This is hardly a new problem, and the announcement of a review is very small fry. The Government have had years to conduct a review and act on it. I can tell the Chancellor without a review that the problem most likely lies with the big house builders with deep pockets who can afford to sit on valuable land for years and build on it only drip by drip, to maximise profit. One solution would be for Government to parcel up public land into smaller pieces and to give small and medium-sized house builders a chance to purchase the land to build on immediately—and they will build on it immediately.

Government could go even further and sell their land at a discount with the guarantee that the homes will be affordable or for social rent and will be built immediately. My measure is about building more social homes for rent, because that is where the problems are the deepest and most urgent—I am talking about people on universal credit who can no longer rent privately; people who become homeless; and people whose mental health suffers because of the difficulty of finding somewhere they can call home.

I see many desperate people on a weekly basis at my surgery. We cannot turn a blind eye to their tragedies. This whole matter goes to the heart of whether we believe in a shrinking state or a caring state that helps the just about managing. The private sector has not solved this problem, and will not do so in the future. We have had years of an ideology of replacing public ownership with private home ownership. The two can go together, but there must be a place for social housing. Let us get building social housing again.

--- Later in debate ---

[Andrew Jones]

I simply say to my hon. Friend that I know he has worked very hard on this issue. I welcome his work, and he has made a very valuable contribution to the housing debate.

This Budget sets out an ambition to deliver 300,000 new homes every year, which is 40% more than the current output and 50% more than the target we were left by Labour.

[Wera Hobhouse]

I cited very stark figures showing that social homes are not being built: 32,000 were built in 2011, but only 5,000 were built in 2016. Will the Minister address that problem?

[Andrew Jones]

I point out to the hon. Lady that affordable home building has gone up by 27% in a year, and that is of course a key part of delivering a housing mix that will work for everybody. We need a series of effective planning reforms and substantial investment.

This Budget pledges more than £15 billion of financial support to boost housing supply over the next five years. It will open up new land, and get housing associations and councils building, including by lifting borrowing caps by £1 billion in high-demand areas. It will provide £400 million of funding for regeneration projects and to support SME developers. That brings the total amount of financial support available to at least £44 billion over this spending period. That support includes £40 million towards the development of the construction skills that we will need to deliver those homes.

The Budget also makes serious, sensible planning reforms to help towns and cities grow in the right way, while continuing to protect the green belt. We know that we cannot build new homes overnight, so it also introduces measures to support those who are looking to get on the property ladder now. The Budget has permanently removed the upfront cost of stamp duty land tax for all first-time buyers who are buying a home worth £300,000. That will save the average first-time property buyer nearly £1,700. That should be viewed not in isolation, but in the context of a balanced and broader package of supply and demand.

Those who wish to buy are not the only ones struggling in the current housing market, and many tenants in the private sector would like more security. We will work to understand the barriers to landlords offering longer, more secure tenancies, and then remove those barriers. There is also a £950 million budget to tackle homelessness in the spending period. Fixing our housing market is one of the most important issues that we currently face, and the Budget presents a balanced package of supply-side and demand-side reforms to do just that.

The second part of today’s debate was on public services. We have a great track record of delivering first-class public services, but in the time available I am able to comment on only two things and give two examples of such delivery. First, more than 1.8 million more children are being taught in good or outstanding schools—a significant achievement. Secondly, the NHS is treating more people every year for cancer, and the UK now has its highest ever cancer survival rate. We are doing all that while sticking to our credible plan.

I am running out of time so I will highlight one final point. We must continue to focus on our deficit, and the Budget highlights that both debt and deficit will go down in each year of the spending period. At the same time, we can expect the economy and rates of employment to grow—that is very positive. The Budget sets out how we are investing in the future. It tackles housing supply by getting Britain building, and it addresses the long-term issue of undersupply, while also providing relief in the near term for those who are struggling to buy now. It also backs our public services.

Yesterday, my right hon. Friend the Chancellor spoke about the opportunities and optimistic vision that lie ahead for our country. I will say just this: Britain’s future is bright, and this Budget makes it even brighter.

Ordered, That the debate be now adjourned—(Andrew Stephenson.)

Debate to be resumed tomorrow.

Budget Resolutions

Wera Hobhouse Excerpts

Wednesday 22nd November 2017 Commons Chamber

[John Redwood]

Yes, indeed. I hope that the public sector, as well as the private sector, takes that fully on board, because the Government and local government, with representations and leadership from a range of parties in this House, have a great opportunity to do more to promote, encourage and mentor. As the Chancellor has indicated, we are going to face a major revolution in robots, artificial intelligence and all kinds of applications of the digital economy. Great digital companies are making huge changes that have a big knock-on effect for more traditional businesses. We need to put all our weight behind a Government who wish to understand that revolution and try to ensure that more people are winners from it by changing jobs and developing new skills so that their careers can respond to the huge changes under way.

Quite rightly, a focus of attention for the public sector—in this Budget as in any other—is whether there will be enough money to do a decent job for public services. I, like any Labour MP, want to ensure that my local schools have enough money to pay good teachers and to have enough of them, and that my local hospital and surgeries have enough financial support to do a good job. I see from this Budget that there is a £6 billion overall fiscal relaxation in 2018-19 and a £10 billion relaxation in 2019-20, mainly on the spending side. I am quite sure, from what the Chancellor said, that as some relaxation of pay agreements occurs, money will come forward to meet those bills. It is important that when pay deals are reached, the health service, schools or whoever have the money to be able to meet those requirements. A modest fiscal relaxation like that is eminently affordable.

The current levels of debt or deficit are not alarming. I am pleased that the Government think that the level of debt as a percentage of GDP will come down very shortly, but we need to take into account the fact that the state now owns quite a lot of the debt itself. That makes a bit of difference. The United States of America is now embarking on a programme of cancelling and reducing the debts because it controls both sides of the balance sheet through the Federal Reserve Board.

I want to concentrate a little more on house building and housing. I am pleased that the Government are to have a speedy—and, I hope, thorough—investigation into the issue of how existing planning permissions can be better used and can translate into more homes more quickly. That is very much an issue in the Wokingham borough part of my constituency, where the borough has issued around 11,000 planning permissions for individual homes—more than enough, one would think, to allow the fast build rate required under the agreements in the local plans. There has been considerable delay, however, in bringing forward some of those houses. There is also a wish by others to try to get planning permissions elsewhere and to build outside the areas where the plan would prefer the building to take place. There is a lot to be said for concentrating the areas of building, because then the moneys can be applied in a planned and predictable way to the surgeries, primary schools and extra road capacity that are needed, whereas if inspectors grant permissions in a variety of different places around the borough on account of a slow build rate, far more capital will be required to keep up with the demands, because distance would become an issue for people needing to get to those facilities.

Looking at the national picture on house building, I welcome the idea that we should be able to have five new garden cities. The garden town movement was a fine one, many years ago, and there were some great successes with new towns and new cities in our country. I am not going to start choosing places where the new ones should go, because none of them will be in my constituency as we already have an awful lot of house building and development going on.

[Wera Hobhouse (Bath) (LD)]

From what I heard earlier, the Chancellor never mentioned homes for social rent. Can the right hon. Gentleman confirm that he, too, did not hear them mentioned?

[John Redwood]

I think that the hon. Lady is wrong; I think he did mention them. That is certainly part of the Government’s plan. It is clearly a comprehensive housing plan that involves homes for rent and homes for purchase.

I would like to see new settlements where a suitable location can be found, and I am pleased to hear that there is already some agreement on the university arc from Cambridge through to Oxford via Milton Keynes, where there are all sorts of exciting opportunities. One of the really good things about the UK economy now is the momentum that is clearly gathering pace in technology investment and technology business set-ups. It is obviously easier to create those opportunities close to the great centres of learning where there is an extremely good workforce to recruit and there may well be entrepreneurs as well. It is excellent that we reinforce success, and I see that part of the country as a major area for development.

I agree with my hon. Friends who have said, in relation to the housing issue, that it is important to promote home ownership. There is clearly a great yearning for more home ownership, and it is one of the big social problems of our day that many people under the age of 35 are unable to afford their first home. I welcome anything that can make the gap a little more bridgeable, and it is excellent that we will be getting rid of stamp duty for most first-time buyers.

Mortgages: Eligibility

Wera Hobhouse Excerpts

Monday 23rd October 2017 Westminster Hall

[Kirsty Blackman (Aberdeen North) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I appreciate the work of the Petitions Committee and the hon. Member for Sutton and Cheam (Paul Scully) in particular in bringing this debate to Parliament. As a number of Members have said, this debate is important, and its tone chimes with the concerns a number of the constituents who come through my door and the people who talk to me have expressed about the housing market, so this debate was a good one to bring to Westminster Hall.

I will begin by discussing the issues facing young people in particular. The Chancellor has been making noises recently about trying to improve life for millennials—I hope he does—but I am concerned that he may think that the implementation of a railcard for under-30s will do it. I hope he will go much further, because a railcard will not cut it. A number of issues face millennials, who are people born between 1980 and 1995. They are up to 35 years old, although there are various definitions. In 2005-06, 24% of 25 to 34-year-olds were privately renting. That figure has now risen to 46%. In 2016, 59% of the households headed by millennials were privately renting.

The private rental market is expensive, which particularly hits young people, especially when we consider that young people born between 1980 and 1985 are earning £40 less, once adjusted for inflation, than those born 30 years earlier. It is a significant issue that they are having to put so much of their income into privately renting and are unable to save as a result. People talk about how millennials just sit around and do not do any work, but they work as many hours as previous generations did, but for less money. That is a real concern, especially given their outgoings.

Issues to do with the private rental market affect younger people, but they also affect people of all ages. The gentleman who organised the petition said that he spent £70,000 of his income on rent, and that money has not gone to providing a roof over his head that will continue to be a roof over his head, because his landlord could decide that he no longer wants to rent that property out. That generation do not have the security that previous generations may have had. In social renting, properties are much cheaper to rent than in the private rental market and people have a much better guarantee that they will be able to stay for the long term.

I have highlighted the specific problem facing millennials, but I want to raise a number of other issues. I read an interesting piece the other day about how it is not good to save at the moment. If someone puts their money in the bank, it shrinks simply because it is in the bank and interest rates are lower than inflation. It is difficult for people of any age to save, because their money will not make money. If someone wants a deposit for a mortgage, they have to have a chunk of cash, and they need more than they used to need, because the money will depreciate while it is in the bank. That is a real concern.

Another factor preventing people from building a deposit is low wages. There has been a real lack of wage growth. If we compare the position for non-retired households before the financial crash with their position now, such households are not earning more in wages than they were a decade ago. For folk trying to build up enough savings for a deposit, that is a major problem. There are a number of problems with how the mortgage market works and with access to mortgages. For a start, people need savings. I know that there are Help to Buy schemes. When we bought our house in 2009, we did it on a shared equity scheme, which was incredibly helpful. It was a developer-run scheme, rather than one run by any Government. It was very useful; it was the only way we could get on the property ladder in 2009, because we did not have enough savings. Those schemes do not operate across the board and not everyone has access to them. Young people in particular cannot access them all very easily.

I am pleased that Help to Buy schemes have been put in place by the UK Government and the Scottish Government. The Scottish Government have introduced a Help to Buy scheme with open market access to shared equity. The scheme is not just for new properties; it allows people to buy a property that is a bit older. It allows people on median incomes—not necessarily the poorest incomes—to access the housing market. Such schemes have been successful in Scotland and have had a positive effect in helping people to secure a house that is not necessarily new. Older houses may have more of a buying history, so they can be a safer bet because people have a better idea of whether the house value will depreciate in the near future, unlike with new houses, where people do not know whether they have been priced correctly.

The Scottish Government have done a number of positive things. Through their Help to Buy schemes, 23,000 households have been helped into home ownership since 2007. The open market shared equity scheme has received £70 million this year from the Scottish Government, so it is hugely positive. We will deliver at least 50,000 affordable homes in Scotland by 2021, and that policy has been backed by £3 billion.

One of the most important things the Scottish Government have done in the past decade is change the attitude to social housing in Scotland. We have taken a different tack from the UK Government. We have increased significantly the amount of social housing builds and have reduced the ability of people to buy their social house. I understand that the Conservative Government do not necessarily agree with that, but it means that we have been able to begin to build our socially rented sector back up. That has meant that more people are socially renting, and they have the ability to build up their savings pot as they are not paying unaffordable private rents. That is what my family did. We were in a socially rented multi-storey block and we were able to build up some money for legal fees and others things when we bought a property. Even if someone does not have enough for a deposit but can get involved in a shared equity scheme, they still need some money to put towards the fees. Those things are hugely positive, and the move towards more social housing in Scotland is a very good thing.

On the issue of creditworthiness, the hon. Member for Sutton and Cheam mentioned the Rental Exchange scheme by The Big Issue and Lord Bird, which is a genius idea. I cannot believe people did not think of it sooner, because it is a great way to ensure that social rent payments in particular are taken as evidence of creditworthiness. Evidence of creditworthiness is a real issue that has been touched upon by several Members. Having no credit score, or a low credit score, does not mean someone cannot afford to pay a mortgage. It simply means they have not built up a credit score. Peers of mine, for example, have had to take out a credit card to build up a credit score. We do not want people having to take on debt simply so they can get a credit score in order to get a mortgage in future. There are better ways to do that. The Rental Exchange scheme is brilliant, working with people on the lowest incomes, particularly those in social housing. It would be nice if even more social housing providers got involved in that scheme and it were widened out so that it can be accessed by more people, because it is hugely positive.

Other things around creditworthiness and the way that credit scores work are a significant problem. One Member mentioned the poverty premium and the additional amount of money that people have to pay as a result simply of having a lower income and lower savings. If someone wants to get a loan, they go to various websites to see how much they can get. All the websites provide an indicative rate, which is probably not what someone will actually get because the bank or institution will then offer something that it decides is the most appropriate thing.

To get a quote for an actual rate, the bank needs to do a credit check, which impacts on someone’s credit score, making it more difficult for them to shop around. The people on the very lowest incomes cannot go to three different banks and get three different quotes and then three different percentages for the £2,000 that they want to borrow to buy a new dishwasher, washing machine or whatever it is that they need, because that will have an impact on their credit score. There is an issue with the way in which credit rating agencies work because of the need for the credit assessments to have an impact on the score. In fact, it impacts most negatively on the people who most need assistance with finance and who could do with having a better rate because they do not have the ability to shop around. I know that is slightly off-topic, but I wanted to raise the issue in the context of creditworthiness.

I feel the frustration of the gentleman who started the petition, as do the 140,000-odd individuals who signed it, as well as thousands and thousands of people across the UK. If we look at the people who are young, who are around my age and who are millennials, I know many who have come to the conclusion that they will never be able to afford to buy a house. It will simply never happen because they will never have the money to do so.

If private rentals were more secure and affordable, there would be less of a problem but, because private rentals are insecure and rents are sometimes sky high and people have to pay a huge amount of their income on rent, there is a problem. People cannot even aspire to own their own home. Young people are criticised for spending too much money on coffee, and we regularly see a meme doing the rounds on Twitter: “We’re buying all the £3 coffees, because you’ve got all the £3 houses.” That sums up the frustration felt by young people. I am not saying that people who cannot afford mortgages should get mortgages, but we must help the people who can afford mortgages but who do not have the creditworthiness.

[Wera Hobhouse (Bath) (LD)]

The issue is not about encouraging debt, but about greater inclusion and affordability for young people, or for anybody caught up in this vicious circle of very high rents and squeezed budgets, which means they cannot save for deposits.

[Kirsty Blackman]

I absolutely agree with that point. In fact, some of the case I have been making is about the very opposite of encouraging debt. I want people to build up a more positive credit score without having to take out a credit card and make payments, because for some people that might be too much temptation. Positive moves could be made by the Government and credit ratings agencies to ensure that more people can get access to the finance that they need and can afford, rather than finance that is out of their reach.

Economy and Jobs

Wera Hobhouse Excerpts

Thursday 29th June 2017 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

Thank you, Mr Speaker, for the opportunity to make my maiden speech as the new Member for Bath.

Let me first of all pay tribute to my predecessor, Ben Howlett. He served his constituency with great diligence and I thank him for the contribution he made to our wonderful city. In particular, Ben Howlett understood the progressive and liberal spirit—with a small l—that makes up the fabric of Bath, and he campaigned with conviction to remain in the EU and on voting reform. As a keen supporter of electoral reform, I want to continue his work and I hope we can make some progress during this Parliament.

Of course, many Bath citizens remember Don Foster, the MP for Bath from 1992 to 2015, with special fondness. For 23 years he was Bath’s No. 1 supporter, representing the city with infectious energy, and bringing people and communities together.

Today, 29 June, would have been my mother’s 97th birthday. She was born in Hamburg into a half-Jewish family and experienced directly the persecution under the Nazi terror. I was lucky enough to be born into a different Germany—one heavily scarred and with an immense feeling of guilt, but determined never again to go down into the abyss of fanaticism, racial intolerance and exaggerated national pride. It is testimony to the open-mindedness of the people of Bath that they have elected as their new MP a woman who was not British-born. I feel deeply humbled and very honoured.

Whenever I mention that I live in Bath, the immediate response is, “Bath—what a beautiful place.” Yes, Bath is a beautiful place, but like many other cities it is suffering from a housing crisis and overstretched public services. In 2016, average house prices in Bath rose by more than £100 a day, making it almost impossible for people on an average income to rent a decent family home, let alone buy their own home. Making sure that we share prosperity among all people in Bath will be my particular focus.

Under current Government proposals, two out of three schools in Bath will have to lay off staff in September. As a former secondary school teacher, I know all too well how challenging it is to teach and learn effectively in very large classes. I will stand up for all young people in Bath to make sure that they receive the education they deserve.

Whether we like it or not, this Parliament will be absorbed by Brexit. Last year nearly 70% of my constituents voted to remain in the EU, and I am here to make sure that their voices are heard on Brexit. The Brexit debates have only just started, and I look forward to taking a full part in those debates, and indeed in all the business of the House.