What progress his Department has made on improving the health service capital estate.
What progress his Department has made on improving the health service capital estate.
In our election manifesto, we committed to building 40 new hospitals by 2030 and upgrading another 20 hospitals. We are delivering on that commitment and now have plans to build 48 new hospitals this decade. We will open a competition for the eight further new hospitals shortly.
I thank my right hon. Friend for the investment that we have seen in Scunthorpe General Hospital over the last year. Residents are seeing those changes and it will certainly help us in the medium term. Looking to the future, will he continue to work with me on the plans for a new hospital for Scunthorpe?
I thank everybody who is working at Scunthorpe General Hospital for their incredible effort over the last year. My hon. Friend has been an assiduous campaigner for Scunthorpe hospital and the upgrades that we have already been able to put money into, and now there are eight slots for further new hospitals. Forty have been announced and we will build eight more over this decade. We will shortly announce how we are going to make that decision. There will be an open process and I look forward to working with her, her colleagues and colleagues across the NHS in Lincolnshire to make sure that they can put together the best possible application.
I would like to take this opportunity to thank the Government for investing in mental health facilities at Heartlands Hospital and acute facilities at the Royal Stoke University Hospital. Together, this will see over £32 million being invested in our local NHS, so would my right hon. Friend agree that it is more important than ever, as our NHS starts to recover from the pandemic, that we provide the best possible health facilities?
Yes, I would. The NHS has clearly played such a critical part in the response to the pandemic in the last just over a year. I thank all those working in and around Stoke, including at the Royal Stoke, which is a great hospital. We have put £32 million into the local NHS, and we protected the NHS even through the worst challenges of this pandemic. Of course, I will be open to further investment to make sure that the NHS across Stoke gets the support that it needs so that we can build back better. Today, we are all able to see the improvements that are being made in the response to the covid pandemic, with the opening yesterday of step 2 —I am delighted, Mr Speaker, to see that you have had a haircut. So many of us have been looking forward to being able to get life back to normal, and thanks to the work of people across Stoke and across the nation, we are able to take these steps.
This is Mrs Hoyle’s effort, but there we are.
Congratulations to Mrs Hoyle on a job well done New investment is welcome, but it is no consolation to those patients missing out because the rest of the NHS estate is being starved of investment. We have seen a 23% increase in treatments being delayed or cancelled in the last year because of infrastructure failures, and the maintenance backlog went up by another 50% last year. We are not going to see those record waiting lists drop if operations are cancelled because basic repairs are not done, so will the Secretary of State tell us by what date we will see no more delays to treatment because of crumbling buildings?
We are putting a record amount of investment into the infrastructure of the NHS. That is evidenced by the questions that we have had already, with the improvements in Stoke, Scunthorpe and across the rest of the country. It is about not just the physical investment, but making sure that we support staff to be able to deliver and making sure that the NHS gets the support that it needs to tackle this backlog. We have a very significant backlog because of the pandemic and we are working incredibly hard to tackle it.
What assessment he has made of the progress of covid-19 vaccine roll-out among the UK adult population.
What assessment he has made of the progress of covid-19 vaccine roll-out among the UK adult population.
First, I would like to pay tribute to our fantastic NHS and all the frontline vaccinators, our volunteers, armed forces and local authorities and all those working on the vaccine deployment programme. I am very grateful for their tireless efforts in vaccinating those most at risk across the country. I am absolutely delighted, Mr Speaker—no haircut puns at all here—that another significant milestone has been reached, as we have met our target of offering a vaccine to those in cohorts 1 to 9 ahead of schedule. Over 32 million people have had their first dose and more than 7.6 million have had their second dose. We are making phenomenal progress, but we remain focused on ensuring that no one gets left behind.
Last week I became one of those people who had their first jab, at Boots the chemist in Nottingham. Will my hon. Friend join me in thanking all those in places such as Boots and all those involved in the roll-out of the Pfizer-BioNTech, Oxford-AstraZeneca and Moderna vaccines? Does he agree that the best way out of this situation is to get that jab, and that when the time comes and people get the call, they should take that opportunity as soon as they can?
I absolutely agree with my hon. Friend, and I thank Boots the chemist not only for its frontline capability but for its distribution arm, which has helped us to distribute Pfizer-BioNTech, Oxford-AstraZeneca and, now, Moderna. I agree that when people get the call, they should come forward and have their jab.
I welcome today’s news that the over-45s are being invited to receive their first dose of the vaccine, and I thank everyone in Carshalton and Wallington who is involved in the roll-out. I recently held a vaccine roundtable with NHS leaders in Carshalton and Wallington to encourage everyone, including ethnic minority groups, to come forward and get the vaccine when their time comes. Could my hon. Friend update the House on what steps the Government are taking to work with community leaders and others to ensure that every part of our community comes forward and gets the vaccine?
I am grateful to my hon. Friend, and I echo his comments about the incredible work that is happening across the London borough of Sutton. I thank him for his work in promoting the vaccine, and according to the latest NHS figures almost 90,000 individuals have had their first dose of covid-19 vaccine in Sutton. To this end we are working closely with faith and community leaders to help to spread information about vaccines through trusted, familiar voices and in a range of different languages and settings. That also means leveraging the influence of celebrity figures such as Sir Lenny Henry and the powerful and incredibly moving “call to action” letter and video to black and Afro-Caribbean communities. This is really important. We are also working to support the vaccine programme over important religious observances such as Ramadan, which begins today. We are working with the Muslim community and reiterating the verdict of Islamic scholars and key Muslim figures within the NHS that the vaccine does not break the fast and is permissible, so come and get your vaccine.
What assessment he has made of the use of do not attempt cardiopulmonary resuscitation orders during the covid-19 outbreak.
In October 2020, I commissioned the Care Quality Commission to review how do not attempt cardiopulmonary resuscitation decisions were taken throughout the covid-19 pandemic and whether they had been inappropriately applied. We welcome the CQC report, which was published on 18 March, and we are committed to driving forward delivery of the recommendations through a ministerial oversight group, which I will chair, to ultimately ensure that everyone experiences the compassionate care that they deserve.
I welcome the Minister’s comments. It is over a decade since I worked with clinicians on how to communicate end-of-life care, so I was shocked by some of the reports and by reading the CQC and Compassion in Dying reports. The lessons learned from coronavirus can and should be seen as a catalyst to having more open and honest conversations about this decision making and advanced care planning. Will the Minister commit to a public awareness campaign, including groups such as Compassion in Dying, Marie Curie and Hospice UK, to ensure that patients are fully aware and at the heart of these decisions?
I thank the hon. Lady for her question. That is exactly what we are trying to do at the moment. We have posted a public-facing message on the nhs.uk website, which informs the public about how DNACPR decisions should be taken and the process involved. There should be no blanket application of DNACPR notices. Every patient should be involved in the decision when a notice is applied, as well as the family, relatives and care workers, and where possible it should be signed by a clinician. This engagement with the NHS, the wider public and the voluntary and care sectors is ongoing, and we continue to monitor it.
What steps he is taking to support integration within the health and social care system.
We want health and social care to be joined up effectively, with the different parts of our system working together to meet people’s needs. The health and care White Paper sets out our plans for integrated care systems, which will not only join up local NHS organisations but strengthen collaboration among the health service, local authorities and others involved in social care.
One thing that will really help the integration of health and social care is the better use of technology and innovation, but one of the barriers we face is the sharing of information among different clinicians, general practitioners, hospitals and social care settings, so will my hon. Friend confirm that as part of the plans for better integration we are looking at how data and information can be shared much more effectively?
My hon. Friend is absolutely right: interoperability is essential to harness the potential benefits of health and care data for individuals and to create a health and care system that is fit for the future. We are going to legislate to ensure more effective data sharing across the health and care system and will outline our plans in the upcoming data strategy for health and social care.
Despite the incredible challenges of the past year, neither the Government’s White Paper nor the Budget even mentioned social care. Health and care integration has been progressing in Scotland since 2014, and the Scottish Government have committed to developing a national care service and ensure equity throughout Scotland; will the Minister make such a commitment for England?
Actually, I have to disagree with the hon. Member: the White Paper does mention social care and includes several steps on the path to the reform of social care. We will bring forward further information about social care reforms later this year.
Integration and service improvement cannot be delivered without sufficient social care staff. The Scottish Government already fund the real living wage for social care staff in Scotland, have included them in the £500 thank-you bonus, and plan to standardise pay and training. Does the Minister not recognise that the only way to attract people to build a career in social care is by valuing care staff?
I agree with the hon. Member that it is essential that we value social care staff. Just as we have valued NHS staff during the pandemic, so we have rightly recognised the vital contribution of the social care workforce. We must continue to value our social care workforce, for which we plan to bring forward proposals as part of our social care reforms.
What steps he is taking to ensure patients are consulted on the provision of their local health services.
The Government are committed to putting patients at the centre of our health service. Patients are consulted on their local health services in a wide variety of contexts, including through Healthwatch England, the independent national champion for patients. When a major or substantial reconfiguration or change to services is proposed, the local clinical commissioning group is legally required to hold a consultation with local people.
I wrote to the Secretary of State for Health and Social Care about this issue a month ago. Last December, amid the pandemic, Birmingham and Solihull clinical commissioning group decided to close Goodrest Croft GP surgery—which has more than 6,000 patients—in my constituency. The CCG did not consult anyone because apparently it is not required to do so. Does the Minister find that acceptable?
Although I am not familiar with the detail of the specific local case the hon. Gentleman raises, I am happy to meet him to discuss it if that is helpful to him.
What proportion of NHS trusts are in compliance with the requirement to collect data on all new diagnoses of recurrent and metastatic breast cancer.
The National Cancer Registration and Analysis Service works closely with hospital trusts to determine sources of data that can be used to complete the cancer outcomes and services dataset. It also works with the software suppliers of cancer-management systems to ensure that data items can be recorded. Compliance with data standards is monitored by local CCGs, but I recognise that that is not enough, as data is incomplete after some eight years.
Currently, women with metastatic breast cancer are counted only when they die. That is despite the fact that, since 2013, it has been mandatory for trusts to collect data such as the number of women involved, how long they have survived and whether there are any health inequalities. It cannot be acceptable to count only the dead, not the living. Will the Minister commit to ensuring that the 2013 mandatory requirement to collect data on women with metastatic breast cancer is enforced?
Yes. As I explained in my earlier answer, one of the challenges is that there is not a consistent way of capturing the data. We need to sort that out: we need to make it simple; we need to make people understand what data we are collecting; and we need to make sure that, for both breast cancer patients and all metastatic cancer patients, we know where they are and that we are helping them with this disease as effectively as we can.
What assessment he has made of the effect of the covid-19 outbreak on bereavement services.
The Government recognise that the effects of covid-19 have increased the demand for bereavement services and highlighted the complexity of grief that these services support. In response, since March 2020, we have given more than £10.2 million to support mental health charities, including bereavement services, to support adults and children struggling with mental wellbeing due to the impact of covid-19.
Last year, along with the Co-operative party, I called for a proper plan for bereavement to ensure that everyone who has experienced loss during this difficult period has the support that they need. Awareness of the services available is vital if people are to get this help. The Good Grief Trust, with which I have been in contact, has said that too many people simply do not know where to turn. What steps is the Minister taking to help signpost families to bereavement charities and support and to increase awareness of the support available to families in need, which also includes support that can be signposted from hospitals when loved ones die?
I thank the hon. Lady for her important question. The mental health and wellbeing recovery action plan published on 27 March this year aims to respond to the impact of the pandemic on people’s mental health, specifically targeting groups that have been most impacted. She mentioned the Good Grief Trust, and I mentioned the £10.2 million of funding that we have allocated recently. That is on top of the £2.3 billion a year for general mental health, which includes bereavement counselling, and the £500 million additional spending that we received in the spending review. Some of that money did go to the Good Grief Trust, which has done a fantastic job. It has been signposting services by putting cards in doctors’ surgeries and in A&E departments in hospitals so that people have immediate access to a line, but there are 700 other charities across the UK that are providing bereavement and grief counselling services to many members of the public. We recognise that the demand is high, but the services are there and available.
With your permission, Mr Speaker, I will pay a tribute to my father, Mohammad Aslam Khan, who passed away a few days ago. Not only was he a keen cricketer and an amazing dancer, he was also a champion of equality. He was incredibly strong and brave until his very last breath and he shall be missed beyond measure. I extend a huge thank you to all the team at St George’s, especially the marvellous team on Dalby ward, also to Victor and the incredible staff and carers at Ronald Gibson House and to a wonderful nurse called Anne Wheeler. My brother and I saw at first hand that not all angels have wings Covid-19 has stripped the humanity out of grieving, with millions being unable to attend funerals, say final goodbyes, or be with loved ones following a death. Last year, the Government provided £10.2 million to mental health organisations to ensure that services could continue during the pandemic. Many people have been relying on the support of dedicated bereavement organisations to help them cope, yet the extra financial support ended on 1 April. Will the Minister please consider reviewing this vital funding immediately to ensure that no one has to go through bereavement alone?
I pay tribute to my hon. Friend and her brave words about her much missed father. Politics divides us, but grief, for many reasons, unites us across this House. I have personally declared to my hon. Friend that I am here should she need me. I pay tribute to her for her bravery, being here today so soon after the loss of her wonderful father. I hear her request; it is constantly under review. Bereavement services are incredibly important to me personally and to many of us. She mentioned the £10.2 million. There are 700 bereavement charities, including the Good Grief Trust. We monitor carefully how people access bereavement services. We know that there is an increased need at the moment and that is being watched very carefully. My hon. Friend is incredibly brave.
What steps he is taking to improve the understanding and treatment of long covid.
We are continuing to work with the NHS and the wider scientific community to understand better the long-lasting effects of covid-19 infection and the potential treatments. We are committed to supporting patients suffering from long covid. Specialist NHS assessment services have opened across England, and the “Your COVID Recovery” website contains support and provides a personalised programme for people recovering from covid-19, following a clinical consultation. More than £30 million of funding has already been committed to research projects and a further £20 million was made available on 25 March.
I pay tribute to all NHS and military staff who are administering vaccines across the UK, including to my mum and dad last week. The Minister knows of the debilitating and lasting effects of long covid. She has just outlined the funding elements that she proposes to put forward. Will she tell us whether she might set up a specific taskforce to look at more research into the damage that long covid causes and the effects that it has on so many people?
We are already taking strong action in this area; we have already worked hard and are taking long covid seriously. We are listening to patients, taking a patient-first approach, working with the NHS and the wider scientific community, and engaging with the Royal College of General Practitioners to better understand the disease, which is physiological and neurological. It is different for different people, and therefore treatments need to be different for different people. We are working on ensuring that we have the best post-covid assessment care and the best pathways.
What steps he is taking to support covid-19 vaccine roll-out in Scotland.
The covid-19 vaccination programme has been the biggest in the history of the United Kingdom. The UK Government have ensured that the excellent work done by the vaccines taskforce to procure vaccines for the whole country has been rolled out to protect people across the UK. To support the roll-out in Scotland, I recently announced an additional £660 million of UK Government funding for Scotland. That is of course on top of the £3.6 billion that Scotland is already receiving over the next financial year through the Barnett formula.
I thank my right hon. Friend for his answer. Does he agree that this is proof of the irrefutable truth that we achieve much more together than we ever could apart and that we should be focusing on the vaccination roll-out and recovery—not a damaging and divisive second referendum on Scottish independence, which would be the case if the Scottish National party won the Scottish election on 6 May?
I entirely agree that the vaccination programme has clearly been a huge UK success story and that is because of the UK working together: the NHS across the whole UK; the military working in support across the UK; and, of course, the UK Government working with the devolved authorities and local councils. It is a big team effort. To split and separate out this team effort for no good reason would, in my view, be counterproductive to improving the lives of people across the whole country. We should be working together, not pursuing separation.
What steps his Department is taking to limit online junk food advertising to children.
What steps he plans to take to ensure a level playing field between online and mainstream broadcasters in the implementation of the proposed advertisement ban on foods high in fat, sugar and salt before 9 pm.
We have made clear our intention to end the advertising of high fat, salt and sugar products on television before 9 pm. We recently held a short consultation on how to introduce advertising restrictions for online and we will publish our response soon. A level playing field, however, is important. I want to make it easy for everyone to be healthy.
Does the Minister agree that ending junk food marketing online is hardly an outrageous assault on our freedoms, would remove 12.5 billion calories a year from children’s diets, and would allow advertisers and food companies to make plenty of money from producing and marketing healthy food?
Indeed I do. We are not banning food. It is very important that we make the environment right to ensure that people can make the healthy choice as a default option and enjoy a healthy balanced diet where they have the full knowledge and understanding of what they are purchasing. I think this is actually a great opportunity for companies.
May I send my deepest condolences, thoughts and prayers to the hon. Member for Tooting (Dr Allin-Khan) and her family It is good to hear the Minister say that there will be a level playing field in this area, but it has been reported on national media over the past few weeks that the Government seem to be dropping plans to ban ads online for foods high in fat, sugar and salt. On that basis, surely she will agree that when half of 10-year-olds and 83% of 12 to 15-year-olds own a smartphone, with 86% of those children using video on demand, it would be absolute nonsense to ban advertising on mainstream broadcast TV where children watch very little.
I agree that making sure that there is a level playing field is the right thing to do. If we were currently doing so well, we would not have the number of children and young people overweight or living with obesity, so we must work on making sure that we do everything we can so that every child can be a healthy weight. But my hon. Friend will not get me to pre-empt the consultation that we will be reporting on shortly.
What steps he is taking to increase pay and improve working conditions in the social care sector.
We recognise the extraordinary commitment and compassion of social care staff, especially during the pandemic. While the Government do not have direct responsibility for pay in adult social care in England, we want care providers to reward and support their staff appropriately for the vital work they do. During the pandemic we have asked care providers to pay staff full pay when they need to self-isolate and provided over £1.4 billion of extra funding to support the cost of this and other infection control measures.
First, I imagine the whole House will join me in mourning the 364 care workers who have died in public service since covid began. Many care workers have told me that they feel undervalued by the fact that their average salary is only £17,200. I am sure there are very few Ministers who could live on that kind of salary. They particularly feel devalued when they discover that the Government are paying nine times that salary equivalent to Test and Trace consultants. It is an outrage. Will the Minister now say how she will show that these people are valued by doing three things: first, end privatisation; secondly, insist on a proper salary rise; and thirdly, ensure that a professional career structure is instituted which recognises and rewards the professionalism, talent and commitment of these essential workers?
I share the hon. Gentleman’s sorrow for the lives that have been lost among the health and social care workforce during the pandemic. I am determined that we will support and continue to support our health and social care workforce through these difficult times. One of the things that I want to achieve for our social care workforce, for whom I am truly ambitious, is that rather than doing something one-off for the pandemic, we should come up with a workforce strategy that will improve the opportunities for those working in social care to develop their careers, with a real career progression in working in that sector. That will be part of our social care reform proposals.
Despite repeated promises, the truth is that someone would be better off stacking shelves at Morrisons than caring for older or disabled people, and that is simply not good enough for our country. Can the Minister confirm that the Government’s covid infection control fund had to be used to improve pay so that staff did not have to work for more than one care home and could actually afford to self-isolate? If that is the case, will she commit to permanently enshrining these improvements across the sector to keep all care users and all care workers safe?
In response to the hon. Lady’s question about the use of the infection control fund, it was available to providers to use in a range of ways to keep their residents safe from covid, including, for instance, reducing the movement of staff between one care home and another, which is often part of the service model of how care is provided, and also, as I mentioned earlier, funding full sick pay for staff who needed to self-isolate because of covid. I am determined that as part of our social care reforms that we will be bringing forward, we will look at how best we can support the workforce.
What progress he has made on implementing the recommendations of the independent medicines and medical devices safety review.
A written ministerial statement was published on 11 January 2021, updating Parliament on the Government’s current progress on each of the nine recommendations. The Government will respond in full to the report later this year. It took more than two years to produce the report and we therefore consider it vital, for the sake of patients and especially those who have suffered greatly, to give this independent report the full consideration it deserves.
Baroness Cumberlege’s respected report makes it clear that those harmed by sodium valproate have suffered great and irreparable harm for many decades and that redress is needed. The patient reference group adds more delay for people who have waited long enough already. Will my hon. Friend commit to doing the right thing today and take up this issue of redress and give those harmed the support they have waited so long for?
I would like first to convey my most sincere sympathies to anyone who has suffered as a consequence of taking sodium valproate during pregnancy. It remains still the only drug that some women who suffer from epilepsy can take to control their epilepsy. As set out in the recent written ministerial statement, the Government will carefully consider the recommendations and make a full response to the whole report later this year.
What progress his Department has made on increasing the recruitment of nurses to the NHS.
NHS nurses have gone above and beyond throughout the pandemic. We are committed to increasing the number of nurses in the NHS by 50,000 over this Parliament through improving retention and increasing domestic supply and international recruitment, and we are on track to do that. The number of nurses in the NHS is at an all-time high of 301,491 full-time equivalent nurses employed in NHS trusts and CCGs.
We all know how hard our NHS nurses have had to work in the past year, many without a break and, for those with international origins, without seeing their families either. As public focus inevitably turns towards the NHS backlog, can Ministers assure me that they will work with NHS England to protect staff holidays and enable and encourage NHS staff to get the rest and recuperation they need?
I completely agree with my hon. Friend that staff must be allowed and supported to recover from the pandemic. We have advised NHS Employers to make sure that staff can carry over annual leave. We are determined that the pace of NHS recovery must also allow staff the rest and recuperation they need.
What steps he is taking to encourage health-related manufacturers to base themselves in the UK.
The UK is one of the best places in the world to locate a life sciences business. We are making vaccines in Livingston, Wrexham, Oxford and Hartlepool. We are making cell and gene therapies in Stevenage, surgical robots in Cambridge, cancer medicines in Macclesfield, hip replacements in Leeds and care products in Hull. Last week, we announced another £20 million fund to incentivise companies to put medicines and diagnostics manufacturing investments here in the UK.
Some people have very short memories, I must say. The UK was found desperately wanting when this horrid covid-19 pandemic swept through the cities, towns and villages of this country. The nation’s silverware was sold off and the stock cupboards laid bare. There was a deliberate policy of under-investment in the NHS, with a view to buying everything on the cheap from elsewhere. This was an ideological crime. What steps are the Government taking to ensure that we are never again left without the capacity to produce essential health and safety equipment, and how might a real industrial strategy aid the need to produce personal protective equipment, to bring good, well-paid jobs to long held back communities like Wansbeck here in the north-east?
There might be a meeting of minds between the hon. Gentleman and me. Over the last year, we have developed the capacity to produce 70% of the country’s PPE needs here in the UK. We set that target last summer. We met it at Christmas for all different types of PPE, with the exception of gloves, but we keep working on bringing glove manufacturing onshore. As I said in my response, we have built a huge amount of pharmaceutical manufacturing capacity here in the UK, and there is a lot more to come.
What discussions he has had with the National Institute for Health Research on increasing the number of research grants for the treatment of brain tumours.
It is essential that we increase the amount of research to treat brain tumours, which is why in 2018, through the NIHR, the Government announced £40 million over five years for brain tumour research as part of the Tessa Jowell Brain Cancer Mission to increase the number of applications and grants allocated. The NIHR released a highlight notice that encourages collaborative applications to build on recent initiatives and investment already made in this area, as well as working with the Tessa Jowell Brain Cancer Mission to fund workshops for previously unsuccessful researchers in order to support them in submitting higher-quality applications.
Like many across the country, my constituent Greg has a family member with a brain tumour; in his case, it is his young nephew. The £40 million of funding is certainly welcome, but only £6 million of it has been delivered, and there are still difficulties for those trying to get grants for this urgently needed research. Will the Minister commit to taking a more proactive approach to this—for example, by ensuring that brain tumour experts sit on the grant panels for research bids?
I thank the hon. Lady and would like to extend my good wishes to Greg for this treatment. There has been £8.8 million committed so far based on the NIHR programme and academy spend. The important thing is the quality of the applications. Brain tumours are invidious, and we need to do more and we need to go faster. I will look at her suggestion, but I am aware that there are already experts sitting on the panel.
What steps he is taking to tackle obesity among (a) adults and (b) children.
Helping people to achieve and maintain a healthy weight is one of the most important things we can do to improve our nation’s health. That is why we published our healthy weight strategy last summer. We are taking forward actions from previous chapters of the childhood obesity plan, as well as further measures to get the nation fit and healthy, protect against covid-19 and protect the NHS. Question 25 on the call list is grouped with Question 26.
Yes, but unfortunately Jonathan Gullis is not here. You managed to jump in before James Daly could speak. Not to worry. We will go to James Daly.
Thank you, Mr Speaker. Encouraging an active lifestyle is a crucial part of tackling the obesity challenge that our country faces. Does my hon. Friend agree that local authorities, working with partner agencies, should invest in iconic community venues such as Gigg Lane in my constituency to house a wide range of public health services and provide inspirational settings for young people to take part in sport, no matter what their background or personal circumstances?
I agree wholeheartedly that we should encourage all children to make sure that they can take part in sports and enjoy the outdoors. Regular physical exercise is important for the health and wellbeing of young people, and the local community has an important role to play in developing facilities. That is why the Government launched a £150 million community ownership fund, to ensure that communities across the UK can benefit from the local facilities and amenities that are most important to them. That includes community-owned sports clubs and sporting and leisure facilities that are at risk of being lost without community intervention, and I urge my hon. Friend to work with his community to ensure that he has those facilities locally.
What plans the Government have to ensure an adequate number of nurses in the cancer workforce to deliver the targets for cancer set out in the NHS long-term plan.
Cancer diagnosis and treatment is a priority for this Government. I am working with the Minister for prevention and public health—the Under-Secretary of State for Health and Social Care, my hon. Friend the Member for Bury St Edmunds (Jo Churchill)—to ensure that we have the necessary workforce to deliver improved cancer care. Overall, we are increasing the number of nurses in the NHS, with over 10,000 more nurses in the NHS this January than a year ago. We are training 250 more cancer nurses and 100 more specialist chemotherapy nurses.
I thank the Minister for that encouraging response, but will she outline what steps have been taken to ensure that Northern Ireland students educated in UK mainland nursing schemes can easily transition to fill the needs in our cancer wards both in the UK mainland and in Northern Ireland?
I thank the hon. Gentleman for his question, and if he will allow me, I will look into that and write to him.
Prior to the pandemic, cancer services were understaffed and not meeting their targets. During the pandemic, our staff have made incredible efforts, but a cancer backlog has built up. The Government are now asking the same understaffed cohort to run their normal services and to deal with the backlog at the same time. This is unfair, will lead to burn out and will not work. Will the Government commit today to extra resources specifically targeted at cancer to give those staff a fighting chance?
I thank the hon. Member for his question. The Government have already committed significant additional resources to support the NHS in recovering from the impact of the pandemic, and that will include cancer services as well as other areas of treatment.
If he will make a statement on his departmental responsibilities.
I am delighted to be able to tell the House that, across the UK, we have met our target to offer a vaccine to everyone in the top nine priority groups ahead of the deadline on 15 April. We have now delivered a first dose to more than 32 million people, and are on track to offer a vaccine to all adults by the end of July. This weekend, we also saw a record number of second doses. Overall, as of midnight last night, we have now delivered more than 40 million doses of vaccines right across the UK. It is a remarkable achievement Today, the Joint Committee on Vaccination and Immunisation has published its final advice on an age-based prioritisation, which we accept in full. So I can announce formally that, from today, we have opened up invitations to get a vaccine to all aged over 45, and then we will proceed to everyone aged over 40, in line with supplies Finally, following a successful start last week in Wales, the Moderna vaccine will be rolled out in England from today. I am very grateful to everybody involved in this vaccination programme, which allows us to lift restrictions across the country, and already has saved over 10,000 lives, with more to come.
With your permission, Mr Speaker, may I wish all Sikhs, Hindus, Muslims and other communities celebrating their religious and cultural events in the coming days and weeks a happy, peaceful and prosperous time The Secretary of State is clear about the importance of vaccination, but how is his Department working to ensure that all adults without English language knowledge, with very low levels of health literacy and in pockets traditionally untouched by health campaigns, choose to be vaccinated, rather than being coerced—not just regarding covid-19 vaccines but other vaccines?
I wholeheartedly agree with the hon. Gentleman. I am very proud of how, across this House, people have united to support the vaccination effort and to get those messages out there as he says so clearly. It is very important that we have trusted confidants working in and with communities to explain the benefits of vaccination to those who may be hesitant. For instance, in Leicester we have ensured that within the Somali community, Somali clinicians are administering the vaccine. Having a vaccination centre that is staffed by the Somali community near where they live, even though there is another vaccination centre round the corner, has proved successful in driving up vaccination rates in that community. I pick on that as one excellent example of the national and local systems working together, listening to the data, and working with local communities. and I very much look forward to working with the hon. Gentleman to make that happen.
At the Liaison Committee three weeks ago, the Prime Minister confirmed that there would be a 10-year plan for the social care sector, like that of the NHS, to fix the crisis in social care. Will the Secretary of State tell the House what he thinks that 10-year plan needs to contain, and whether external organisations such as Age UK, the Alzheimer’s Society, Care England, and the Health and Social Care Committee, will be able to contribute to the Government’s thinking on that plan? Will they be able to do so before the plan is published later this year?
I warmly welcome my right hon. Friend’s enthusiasm and support for that project, which the Prime Minister set out at a high level to the Liaison Committee. We are working hard, including with stakeholders, and the Minister for Care has held a number of roundtables on the subject. We want this to be an open and broad programme, to ensure that we get the right answers to these long-standing questions.
Will the Secretary of State explain why, following a private drink he had with Lex Greensill and David Cameron, Greensill was handed an NHS payroll financing contract that sought to convert income from NHS staff pay packets into bonds to sell internationally, and effectively to make money on the back of NHS staff in a pandemic? Why was that contract given without tender? Why was that meeting not declared? What pressure did the Secretary of State put on officials to hand that contract to Greensill?
Ministers were not involved in the decision by NHS Shared Business Services to facilitate the provision of salary advances in pilot schemes. I attended a social meeting organised by the former Prime Minister, and given that departmental business came up, I reported to officials in the normal way.
This is part of a wider pattern of behaviour. We see PPE contracts going to Tory donors, and a pub landlord WhatsApping the Secretary of State and receiving a testing contract. We see a US insurance firm taking over GP contracts, and one of its bosses gets a job in Downing Street. It is cronyism and it stinks. If the Secretary of State thinks he has done nothing wrong and has nothing to hide, will he publish all the minutes, emails, correspondence and directions that he gave to civil servants, and all his text messages with David Cameron, so that we can see exactly what went on with the awarding of this contract?
Yesterday the Government announced a review into this matter, and I will of course participate in that in full. It is important that Governments engage with external stakeholders and businesses and, as was raised in the previous question, it is important that that happens, and happens in an appropriate way within the rules, which is what happened in this case.
  The covid-19 vaccine roll-out has shown the value of comparable statistics not only in this country, but worldwide. However, directly comparable data are often lacking for healthcare performance and outcomes between England, Wales, Scotland and Northern Ireland. Does my right hon. Friend agree that UK-wide data in the NHS, along with aligned inspection mechanisms and audit procedures, would increase transparency and ultimately improve service delivery?
Yes. I think that through the pandemic we have seen an improvement in our ability to see what is happening in the NHS right across the UK, and that helps us all work together better to deliver for patients. One example of that is the vaccine programme. That is a UK-wide programme with UK-wide metrics but it is delivered, of course, by the local NHS wherever people are in the UK. There are lessons we can learn from that.
I am hearing increasingly difficult stories from constituents across my constituency whose children are suffering severe mental health problems and are regularly having to wait up to a year for a first appointment. In that year, their condition gets progressively worse, so by the time their appointment comes around, they already need a much greater level of treatment than they would have needed had they been seen earlier. That also has a disruptive impact on their education, on top of the disruption that they have all experienced over the last year. The situation is getting worse; we are seeing more and more young people needing mental health care in my constituency. What is the Secretary of State doing to increase resources in this very important area of child and adolescent mental health?
We are putting record resources in. Of the increase in the NHS budget, the fastest increase in the long-term plan settlement is for mental health services, and within that, for children’s mental health services. We have also increased support through the pandemic. There is an awful lot that we continue to need to do, and there is a very significant plan, as part of the long-term plan, for improving access to these vital services.
  Last week we had the fantastic news that the Moderna vaccine had arrived in the United Kingdom. Can the Secretary of State tell the House how many vaccine doses, across all three vaccines currently being rolled out, have been allocated to Scotland so far?
Scotland gets her fair share of vaccines allocated, and then we publish the amount of vaccines that are delivered. That is slightly lower in Scotland as a proportion of the population compared with the UK as a whole, but we are working very closely with the NHS across Scotland, with the armed services and, of course, with the Scottish Government to try to make sure that they can catch up.
Yesterday, many hospitality venues remained closed. Those that could open erected large marquees and were able to recover some of the losses that they have suffered. Others were completely dismayed that there is clearly no difference at all between some of those marquees and well ventilated, covid-secure indoor hospitality. Will the Secretary of State explain what he perceives the difference to be?
The definition of “outdoors” used in these regulations is the one set out by the Labour Government in the ban on indoor smoking.
The foul gases and odour coming from Walley’s Quarry landfill in my constituency are no longer just an environmental catastrophe; they are also a major public health concern. A local GP surgery in Silverdale reports exacerbation of asthma, hay fever-like symptoms, nausea, insomnia and depression. The Environment Agency figures that have been passed to Public Health England show that World Health Organisation guidelines for hydrogen sulphide have been exceeded on the 24-hour public health limits. What is going on is not fair on my constituents. What assessment has the Secretary of State made of the public health implications, both physical and mental, of the major environmental incident going on in my constituency, and will he meet me and the Environment Secretary to discuss the matter?
I am very happy to meet my hon. Friend. I am grateful to him for raising this vital question of local public health in the House, and I am absolutely determined that the authorities—both the local authority, with its responsibilities, and the national authorities, including Public Health England—play their role in tackling this problem.
Nottingham University Hospitals NHS Trust is giving all its staff an extra day’s leave this year to thank them for their sacrifices during the pandemic. I am sure that is a welcome gesture, but staff in Nottingham and across England deserve so much more. Real-terms pay in the NHS is already below 2010 levels, and we went into the pandemic facing serious staff shortages, with 40,000 nurse vacancies and 7,000 doctor vacancies. What will the Government’s proposed real-terms pay cut do to vacancy rates?
I am very glad to say that the numbers that the hon. Lady uses are out of date. We have seen a very significant increase in the number of nurses and other staff in the NHS. In fact, we have a record number of nurses in the NHS. For the very first time, we have more than 300,000 nurses in the NHS. We have seen over 10,000 more nurses over the last year alone. Of course, the mission to work caring for others and looking after the health of the nation in the NHS has never been more important, and I am delighted that so many people are rising to that, because we have record numbers of people in training too.
While the NHS acted heroically when the pandemic first hit, what lessons have been learned about translating the learnings of junior doctors and experienced nurses into policy more quickly? For example, junior doctors knew that loss of taste and smell was a symptom, and that proning helped patients, quite some time before those became policy.
There is a huge amount that we can learn from the early response to the pandemic, and it is very important that we adopt the scientific understanding and learnings as quickly as is rigorously possible. We need the time for the rigour, but we need to adopt the policies. We have seen in the vaccine roll-out a huge amount of these lessons adopted, and the speed at which the scientific advice takes into account what we are learning on the ground in the vaccine roll-out is impressive. So we should keep going down this route—always open-minded, always asking the scientific questions and always then asking how quickly we can rigorously put those understandings into practice.
I am now suspending the House for three minutes to enable the necessary arrangements for the next business to be made.
I regret to have to report to the House the death of the right honourable Cheryl Gillan, the Member for Chesham and Amersham. I know hon. Members in all parts of the House, including the Deputy Speakers, are, like myself, in shock. They were great friends of Dame Cheryl. I know the House will join me in mourning the loss of a colleague and in extending our sympathy to the right honourable Member’s family and friends Cheryl was a Member of this House for nearly 30 years. In that time she made an outstanding contribution from both the Back Benches and the Front Benches, and as the first woman to be appointed as Secretary of State for Wales. She was a doughty defender of her constituents’ interests, most notably in her long campaign against the High Speed 2 rail line, and she was the champion of the private Member’s Bill that led to the Autism Act 2009. Above all, she will be remembered as a friend and mentor to many Members—especially new Members—on all sides of the House I also take the opportunity to pay tribute to five former Members who passed away while the House was in recess: Peter Ainsworth, Ian Gibson, Robert Howarth, Paul Marland and Baroness Williams of Crosby. Our thoughts are with their families I will now take brief points of order to allow for tributes to our esteemed colleague.
On a point of order, Mr Speaker. I know the family will appreciate your words. As the House knows, Cheryl passed away on 4 April, courageously fighting against the odds with cheerfulness and bravery Cheryl, my right hon. Friend the Member for Ribble Valley (Mr Evans), now a Deputy Speaker, and I came into the House together 29 years ago and became firm friends. I attended the funeral of her beloved husband Jack in 2019 and I was in touch with her throughout her illness. It is with enormous sadness that I am privileged to pay tribute to such a special person After several jobs in the Conservative Opposition years, Cheryl was appointed Secretary of State for Wales and was much respected for singing the Welsh national anthem in the Welsh language. After leaving Cabinet, as you said, Mr Speaker, she stepped up her opposition to HS2. There was not a debate or question in this House on the matter where she did not speak. After the House changed the rules, on 19 January this year, Cheryl was able to make her final speech, fittingly, on consideration of Lords amendments to the High Speed Rail (West Midlands-Crewe) Bill. Despite her advancing illness, she was in her usual feisty form, denigrating the whole HS2 project. I know that the opportunity meant a huge amount to her. I thank you, Mr Speaker, for allowing the House to change the rules. As you said, Cheryl campaigned alongside autistic people and their families for many years and successfully introduced the Autism Act 2009. She was also a champion for people with epilepsy, raising the profile of the condition throughout her parliamentary work. Cheryl rejoined the Public Accounts Committee after the 2019 election and many a permanent secretary feared the force of Cheryl’s direct and well-informed questions, but it was working with Cheryl on the 1922 executive, so ably chaired by my hon. Friend the Member for Altrincham and Sale West (Sir Graham Brady), that I observed her real qualities. Her bright mind always enabled her to calmly put things into perspective and provide quiet, sensible and sound advice. She had a real sense of caring for people, particularly when they were in difficult or sad circumstances. She would always be there, offering them words of comfort In saying farewell to Cheryl—her family and friends, her constituents and staff—the whole House has lost one of its hardest working Members. She had an enormously generous heart. She was always prepared to have a kindly word for anyone in trouble. Above all, she was a fierce and effective defender of the interests of her constituents in Chesham and Amersham. People such as Cheryl, who enter politics for the very best of reasons, are rare indeed and she will be sorely missed.
Further to that point of order, Mr Speaker. I was so, so sad to hear of the death of Cheryl Gillan at the age of only 68. Sometimes politics can feel like a hostile environment, which is why Cheryl was so important as somebody who was just completely warm, non-judgmental, vivacious and outgoing. She called us all “darling” not because she had forgotten our names, but because she wanted to put everybody at their ease When she came to the House in 1992 as one of 336 Conservative MPs, she was one of only 20 women, so she was very much a pioneer of women’s presence on the Tory Benches. Over the three decades she served in the House, she very proudly and protectively watched over the growing flock of Tory women MPs It was very energising to work with her on her autism campaigns. It was admirable to see her being such a thorn in the side of the Government, fiercely championing her constituents in their opposition to HS2. Above all, I know she will be missed by her family, to whom I extend my deepest, deepest condolences. We really, really will miss her. I can hardly believe that she is not on the green Benches today. She was such a presence in the House, becoming a grandee in the 1922 committee, but never grand I would like to just briefly mention the loss of Shirley Williams, who was a Member of our House from 1964 to 1983. I briefly crossed over with her when I came in in 1982. To my young and pregnant self, despite the acrimony and bitterness between the Labour party—I was a Labour MP—and the Social Democratic party, of which she was a member, she warmly welcomed me to the House. She was an extraordinary politician and an extraordinary intellect. She was vilified by the press for her wild hair and overflowing handbag. She, too, was a woman in a man’s world, and a champion of social justice and an instinctive feminist. I extend my sympathies to her family, too.
Further to that point of order, Mr Speaker. Thank you for this opportunity to pay tribute to a great friend, Dame Cheryl Gillan, and to the former Members who have sadly passed in recent days. I am grateful to colleagues on both sides of the House for the warmth of their remarks about Cheryl both today and in the days since she died, on 4 April. Mr Speaker, you mentioned Cheryl’s kindness to new Members. I was a beneficiary of that in 1997. As an Education Minister in the previous Parliament, she was very active in making sure that those of us with an interest in and a passion for education got involved in dealing with the first piece of legislation from that Government Much has also been made of the great work she did in promoting the interests of women in the House of Commons. I would also want to add that I ended up being perhaps the greatest beneficiary of her sterling qualities in the few years she spent as vice-chairman of the 1922 committee. I certainly benefited from her great unflappable qualities. She was a very smart, very stylish woman and always there to give support. As soon as something happened—we had one or two emergencies in the last few years—a call to Cheryl would immediately settle my nerves and I would know that everything would be done as well as it could possibly be done.
Further to that point of order, Mr Speaker. I feel privileged, on behalf of the Liberal Democrats, to extend our most sincere condolences to Dame Cheryl’s family, and to all her many friends both across the House and beyond, on the extremely sad news of her death I feel very privileged to have served with Dame Cheryl on the Public Accounts Committee over the past year. Despite our engagements being mostly remote during this very extraordinary time, I learned a great deal from listening to her as she held civil servants to account. She was always elegant, always gracious, but woe betide any Department for Transport official who arrived unprepared for her dignified and tenacious grillings on the progress of HS2 It has been a pleasure to hear the memories of the hon. Member for The Cotswolds (Sir Geoffrey Clifton-Brown) and the right hon. and learned Member for Camberwell and Peckham (Ms Harman) with their own experiences and obviously long association with Dame Cheryl. I feel quite acutely the loss of what might have been. Despite her long service in this House—I was surprised to find that she was only 68, not because she looked older but because of how long she had served—she had a great deal more to give. She has been taken from us far too soon. For those of us who are much newer to the House, I feel we have lost the great potential to have benefited from her wisdom, gathered over many years. I would like to take the opportunity once more to extend my sincerest condolences.
Further to that point of order, Mr Speaker. Like my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown), I was elected in the same year as Cheryl in 1992 and knew her for over 30 years. As a shadow Minister and then a Minister, she was, like so many women, probably underestimated because she did not employ sharp elbows to get in front of her colleagues. When I was Chair of the Public Administration Select Committee and then the Public Administration and Constitutional Affairs Committee, she always made well-informed, principled, shrewd and wise contributions to our inquiries as well as, indeed, advice to me. She knew how to get far more out of witnesses than most people because she was also gentle and polite. She became, particularly in later years, one of my most trusted friends She was an exemplary employer of her staff, who were devoted to her. She was terrific fun and, as has been said, she was a champion of women in politics. When she lost her beloved husband Jack, she raised a fund in his memory for Women2Win, which has helped promote more women into Parliament, as a mark of how much he had supported her in her political career Her failing health and then cancer were particularly bitter for her, because while outside the covid measures the House now allows proxy voting for MPs who are expecting a baby or have just had one—she would call them women, I have to tell you—we still do not give proxies to people who are incapacitated by sickness. Perhaps we should have a campaign to rectify that and call the campaign “Cheryl’s Vote”. We will sorely miss a trusted colleague and a dear friend.
Further to that point of order, Mr Speaker. I associate myself in full with the comments of the hon. Member for The Cotswolds (Sir Geoffrey Clifton-Brown), save the bit about the 1922 committee, which I have obviously not had the privilege—a dubious privilege, in my case—of serving on. Cheryl was, as the hon. Member for Richmond Park (Sarah Olney) and others have said, a member of the Public Accounts Committee. I have to confess, Mr Speaker, that I pursued her to join the Committee, and you would not have realised that she was dealing with this serious illness unless you knew. The amount of work she put in would put many other Members to shame. I really valued her intellect, her robustness and her good fun. We did sometimes disagree, but with Cheryl we always disagreed well. If we can take anything from the way she did things here, we can all learn from that hard work, that intellectual curiosity and that ability to work with people—even with those with whom she disagreed—in a gracious matter in these times I will miss her enormously. I cannot really believe that she has passed. It is also extraordinary to realise that only two Conservative women MPs elected prior to me are still serving in this House. Her loss is a loss for women in this place, too. I pass on my condolences to her family, her staff and her many friends.
Further to that point of order, Mr Speaker. There are few people in politics you can consider a real friend, but Cheryl Gillan was exactly that: a real friend to so many people in this place, and in so many ways. She shaped and influenced so many of the things that have taken up a lot of our time in recent years. She was a huge friend to this House when a number of us, cross-party, were working on the complaints procedure. Cheryl was a stalwart a member of the 1922 committee who was determined to get it right—to provide the right level of protection for those who felt they had been wronged in these Houses of Parliament, and equally to be fair to those who serve here as elected Members. She was always absolutely determined to do the right thing, and always in a kind way Cheryl was a great friend to my constituents in South Northamptonshire as she fought so diligently on their behalf and on behalf of her own constituents and others against HS2—but we will leave that there for now, Mr Speaker. She has been a true friend. Perhaps most of all, she was someone who loved to hug. As the Mother of the House said, Cheryl called everyone “darling”, but she also hugged frequently. We do not do enough of that either I completely agree with my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) that Cheryl was harmed by the fact that she was always so keen to give, yet only lately, when she was very ill, did this House enable her to vote by proxy and take part virtually. We need to think about that. I agree with my hon. Friend that we should call it “Cheryl’s Vote”, and I hope we will make progress on it I send my deepest condolences to Cheryl’s family and friends.
Further to that point of order, Mr Speaker. Cheryl and I entered the House on the same day in 1992, delighted and a little surprised to find ourselves on the Government side following that election. The Conservative party has lost a loyal, hard-working and mainstream advocate, the likes of whom we see too seldom these days. Parliament has lost a great defender of our values and traditions, someone who worked tirelessly across party lines to make our democracy work better for everyone. We MPs on both sides of the House have lost an almost unnaturally good-natured, kind and generous friend. Her charm could lure Front Benchers into a very false sense of security, which they seldom fell for twice, and her bravery in the face of a long and difficult illness is truly an inspiration to all of us If the importance of public service is judged by independence of mind and sound judgment, if the success of public service is measured by the level of respect in which any MP is held by their constituents, and if the value of public service is reflected in the esteem in which any of us is held by our parliamentary peers, with Cheryl’s untimely death we have truly lost a great public servant. She will be enormously missed and even harder to replace.
Further to that point of order, Mr Speaker. I am a new Member of this place, but even in my very brief time in politics, Dame Cheryl had a profound impact on me. I first met her when she came to Aylesbury to help me campaign from her neighbouring constituency. We had HS2 in common. With her was her much loved dog, Jimmy, who brought her so much joy after the loss of her husband. Cheryl walked the streets with me, she shared a choice comment or two with a heckler in the post office, and then she sat down with me in a pub to tell me what was what. Despite having known me for barely an hour, she offered me space in her office were I to be elected. She was as good as her word: in my first month here, I camped out alongside her, benefiting not just from a desk and some space, but from her wisdom. I vividly remember when she heard me discussing a proposed email in response to a particularly vitriolic correspondent. She came and stood quietly behind me and said, “I think you could just say, ‘I remember meeting you very well.’ He will get the message.” She was, of course, right. I did not hear from him again Dame Cheryl gave me and many of the 2019 intake valuable tips that have already stood us in excellent stead. She was always willing to give her time, and even so many years after coming to this place herself, she was willing to share the benefit of her long experience with us. We newbies will miss her too Dame Cheryl cared. She cared profoundly for her constituents, she cared for fellow Members of this House, and she cared greatly for her staff, and they cared greatly for her. It is my honour to have been asked to work with them in the coming weeks. Thanks to your kindness, Mr Speaker, three of Dame Cheryl’s staff sit today in the Public Gallery. They are all of course desperately sad at the loss of not just their boss, but a great friend and mentor. They know how much of an impression Dame Cheryl made on everybody with whom she came into contact, and they have expressed to me their gratitude for being able to be here to hear your words and those of other right hon. and hon. Members in tribute to Dame Cheryl’s extraordinary service to Chesham and Amersham, the entire county of Buckinghamshire, her party and her country.
Further to that point of order, Mr Speaker. Dame Cheryl was a great constituency MP, as we have heard. There have not been many happy days over the past two years, but in May 2019 I joined Dame Cheryl and her assistant, Mel, for a picnic on the banks of the River Chess with our mutual friend, Paul Jennings. It was a wonderful day. Her eyes sparkled, the mayflies danced, and I just say this: she will be much missed by many in her constituency, and the River Chess Association would like, through me, to pass on its great thanks for all her service to it over the past decade.
May I thank the House? We are always at our best when we come together and the House certainly has come together. I say on behalf of myself and the Chairman of Ways and Means that Dame Cheryl will be missed on the Speaker’s Panel.
I am aware that Members are likely to be taking part in campaigning for the forthcoming elections on 6 May. It may therefore be a timely reminder to all right hon. and hon. Members, including Ministers and shadow Ministers, that when a Member visits another Member’s constituency, except on a purely private visit, they should take steps in advance to tell the Member in whose constituency the visit is taking place. Guidance on this can be found in the document called “Rules of behaviour and courtesies in the House of Commons”. That guidance also states that “failing to do so is regarded by colleagues as very discourteous.”
(Urgent Question): To ask the Chancellor of the Exchequer if he will make a statement on the process by which Greensill Capital was approved as a lender for the coronavirus large business interruption loan scheme.
Greensill Capital (UK) Ltd was approved by the British Business Bank for the coronavirus business interruption loan scheme and the coronavirus large business interruption loan scheme last year in accordance with the bank’s published guidance on accreditation. All decisions taken by the bank were made independently and in accordance with the bank’s usual procedure The criteria by which the decisions were made were based on those used in the existing enterprise finance guarantee scheme, dating back from 2009, and were set out in the CLBILS request for proposals, which was a publicly available document. These criteria included minimum requirements such as the ability to demonstrate a track record of lending to larger enterprises, provision of evidence-based forecasts, the ability to demonstrate sufficient capital available to meet the lending forecasts, a viable business model, robust operations and systems, that the proposed lending will not have unreasonable lender-levied fees and interest, and that the lender has all the necessary regulations, licences, authorisations and permissions to operate the scheme. All accredited lenders are subject to regular audit by the bank to ensure their compliance with scheme rules Following analysis of loan data as part of its standard due diligence, the bank opened an investigation into Greensill Capital’s compliance with the terms of the scheme in October 2020 and informed the Government of this on 9 October. That investigation is continuing and the Government’s obligations as guarantor under the CLBILS guarantee are suspended on a precautionary basis. It would not be appropriate to comment further on the investigation at this time.
I start by paying tribute to the Duke of Edinburgh, who was an extraordinary public servant. My thoughts today are with the Queen and the rest of the royal family as we all mourn his passing. They are also with the friends and family of Cheryl Gillan, and I would like to associate myself with the very moving tributes that we quite rightly heard a few moments ago I welcome the Minister’s presence, but it was the Chancellor who needed to come to the House today; the Chancellor who told David Cameron that he would “push” his team to amend emergency loan schemes to suit Cameron’s new employer; the Chancellor whose officials met with Greensill 10 times; the Chancellor who took the credit for Government business loan schemes when they were in the headlines and, indeed, who personally announced those schemes. Yet the Chancellor is frit to put his name to those loan schemes today. He has just spent £600,000 on communications. I would have thought that that would extend to communicating with Parliament. In the Chancellor’s absence, let me ask: what was the alternative that the Chancellor pushed his team to explore after David Cameron texted him? What discussions did the Government have with the British Business Bank about Greensill’s access to CLBILS after it had already been rejected for the covid corporate financing facility? Were the criteria for CLBILS amended so that Greensill could access the scheme? Why was Greensill the only supply chain finance firm accredited for CLBILS, and what due diligence was done Hundreds of millions of pounds of public money were put at risk by giving Greensill access to this scheme. With Greensill’s collapse, thousands of jobs—in Rotherham, Hartlepool and right across the country—have been put at risk. Those workers and taxpayers across the country deserve answers. The Chancellor said that he would “level with” the public. Why is he running scared of levelling with them on the Greensill scandal?
I associate myself with the hon. Member’s words about the Duke of Edinburgh and, of course, our colleague Cheryl Gillan, both of whom will be sorely missed The Chancellor wrote to the hon. Member last week with a comprehensive response to her questions regarding engagement between Greensill and HM Treasury. The Prime Minister has asked Nigel Boardman to conduct a review to look into the decisions taken around the development and use of supply chain finance and the associated schemes in Government—especially the role of Lex Greensill and Greensill Capital—and to set out any findings as necessary. The Government recognise the interest in the matter. It is right that we now let that review happen In the interests of transparency, the Chancellor has provided all the messages that were sent from him to David Cameron on this matter; they relate exclusively to Greensill’s proposals for the covid corporate financing facility. The Chancellor is right to push officials, as we all have, to explore all ways of capital getting to businesses—large and small. That is what all Members of this House were asking and demanding the Government to do at that particular point. It is important to remember that the Chancellor rejected the idea that he should rewrite the CCFF to include any banks The reason the Chancellor is not here is that the question is about the CLBILS. I suggest to the hon. Lady that she asks her question in a different forum or that she asks a different question, because the coronavirus large business interruption loan scheme, to which this question pertains, is administered by the British Business Bank. The Secretary of State for Business, Energy and Industrial Strategy is the sole shareholder in the bank. As such, the responsibility for the delivery of the scheme sits with BEIS. The accreditation process for any of the covid loan schemes is run independently by the British Business Bank; neither BEIS nor HM Treasury had a role or were involved in the CLBILS accreditation decision for Greensill There were two other non-bank lenders accredited under the CLBILS, with over 75 accredited for the CBILS. It was an important feature of the covid loan schemes that there was a diversity of lenders to ensure a broad range of choice for borrowers, enabling them to access the finance they needed to survive and recover from the pandemic. Greensill was not accredited to provide supply chain finance through the CLBILS. It was only accredited to provide invoice finance, term loans and revolving credit facilities.
Will my hon. Friend confirm that in all dealings with Greensill, the Department for Business, Energy and Industrial Strategy, the Chancellor, his Ministers and his officials always followed all appropriate codes of conduct?
Indeed; all the decisions were taken independently, and that included rejecting Greensill from being able to access the higher level of loan facility, the only request for which came from the shadow Secretary of State for Defence, the right hon. Member for Wentworth and Dearne (John Healey).
I express my condolences, on behalf of the Scottish National party, to the family and friends of Cheryl Gillan and Shirley Williams. I also wish my constituents, and everyone celebrating, Ramadan Mubarak and a happy and peaceful Vaisakhi This scandal further exposes the depth of cronyism at the heart of this UK Tory Government—and it is not new, because back in November the National Audit Office expressed concerns about a VIP list of suppliers, with those on the list 10 times more likely to get a contract than those who were not. The Financial Times reports today that £19 billion of covid contracts were awarded without rival bids There remain serious questions about the role of Greensill while Mr Cameron was Prime Minister and about who exactly is being afforded similar influence in the UK Government today. It is absolutely galling that some have hoovered up so much Government support while millions who do not happen to have ministerial phone numbers get absolutely nothing at all Will the Prime Minister, the Chancellor and Secretary of State for Health and Social Care come before the House to explain their actions? How can we have confidence in the inquiry that has been announced when, from the Home Secretary’s bullying to the race equality report, this UK Government have such a woeful record on marking their own homework?
A number of the issues the hon. Lady raised were slightly wide of the mark in respect of this urgent question. The review will do its work and Nigel Boardman has had assurance from all parties that they will co-operate and offer any information required. He is due to report back at the end of June.
The furlough scheme, the self-employment income support scheme and the coronavirus business interruption loan scheme have been lifelines for many thousands of my constituents in Redcar and Cleveland, and across Teesside almost 500 businesses have benefited from CBILs worth well over £100 million. Will the Minister confirm that all those businesses have gone through the appropriate checks to be approved and that HMRC will take action against any fraudulent abuse of the scheme?
My hon. Friend is absolutely right: any business applying for any of the Government schemes—I have talked about the accreditation required to deliver those schemes—has to go through a robust procedure. HMRC and other organisations will indeed make sure that we are hot on fraud, because this is taxpayers’ money that we are talking about. That is why, in the instance that this question is about, it is important to remember that the Chancellor rejected the suggestion that was put forward. The process is doing its job.
When an urgent question of a similar nature came before the House just before the recess, I asked the Secretary of State for Business, Energy and Industrial Strategy whether a list of all the organisations that have received loans—whether they were under the bounce back loan scheme, CBILS or any of the other schemes—would be made available, because the Minister has said previously that that will be done “in due course”. When I asked the Secretary of State on that occasion, he said to me that he will “try to see” what can be done to put that list of businesses in the public domain. I hope the Minister agrees that many of these questions are arising because of a lack of transparency in the way that some of the support has been awarded. Will he tell me how the Secretary of State is getting on with publishing that list?
As the hon. Lady will know, at the time of delivery we were trying to deliver money to businesses as quickly as possible. The fact that businesses have accessed support—especially the larger loans under CLBILS—will appear in their accounts, and will obviously be reported to the European Union should that be required for state aid purposes.
I remind the Minister that one of David Cameron’s last big acts as Prime Minister was to hold a large anti-corruption summit in London, with some hard-hitting findings. Will the Government recommit to delivering on all the promises made in the subsequent anti-corruption strategy? Will the Minister confirm that if any changes need to be made as a result of the inquiry that is just starting, they will be brought to Parliament as soon as they possibly can be?
I admire my hon. Friend’s work on anti-corruption. It is important to keep raising the issue, but it is also important to keep a sense of perspective and to tackle actual corruption rather than speculate on other issues for political purposes. As I say, it is important to remember that in these circumstances the process has worked well: it was right to push for as much capital as possible to flow to small and large businesses, but it is important to remember that the Chancellor did reject the suggestion put forward by Greensill.
I would like to wish all celebrating the Hindu new year a happy Navratri and the Sikh community a happy Vaisakhi today The Bank of England is rightly independent of the Government. Can the Minister confirm whether or not Bank of England officials were requested by the Treasury to make amendments to its covid corporate financing facility to suit Greensill Capital after the former Prime Minister had texted the Chancellor?
As I have said, the Chancellor rejected any notion that the CCFF scheme should be rewritten.
If we can put to one side the blatant political opportunism here, there is a scandal behind this. Greensill failed because it overextended itself to GFG Alliance. That was signed off by Grant Thornton, GFG’s auditors, effectively on a business model that included borrowing hundreds of millions of pounds based on the security of a very insecure, possibly non-existent order book. Will my hon. Friend bring forward his intended reforms to the audit regulatory system and make sure that Grant Thornton’s role in this is properly investigated?
My hon. Friend will appreciate the audit reforms that we are consulting on. It is absolutely right that the markets work when they are transparent and open, which is why we are determined to make sure that, in the light of recent failures, we get these audit reforms through, and I look forward to his contribution to that debate.
It is incredibly sad and disappointing that, throughout this pandemic, we have seen too little transparency from Government about every aspect of how taxpayers’ money is being spent. The Government keep saying to the House, “Well, it was terribly difficult in those first two months.” We are now a year on, and we are still uncovering more. Is the Minister really satisfied that a six-week inquiry, dragged out as an announcement by the Prime Minister yesterday, is enough to shine sunlight on the millions of taxpayers’ money that has been given to organisations such as Greensill, backed by Government and therefore a loss to the taxpayer when things go wrong? Is six weeks enough, and will he commit to far more transparency, including, if necessary, calling witnesses before this House?
The hon. Lady talks about two different things. There is a review into supply chain finance and the request from Greensill Capital, but there is also the wider view of how taxpayers’ money was spent when the Government were working about as close to real time as they will ever get to do. Business owners will understand the huge difference between the speed at which business and Government work. We will review how taxpayers’ money has been spent, but we will also make sure that, as my hon. Friend the Member for Redcar (Jacob Young) said, we chase people who have used Government grants and support inappropriately.
Is it not true that the accreditation process that was used allowed a wide diversity of lenders to become accredited under the scheme in order to give more choice to borrowers, and that focus on the choices available to borrowers was crucial?
My hon. Friend is absolutely right. The Chancellor and a number of Ministers reflected the view of the House that we wanted to push to make sure we had that diversity of finance and capital available to businesses of all different types. We should be proud of the support that has been given out, which has allowed companies to get through this incredibly difficult time, and it remains a difficult time.
In responding to this story, David Cameron said that “important lessons” must be learned—I should certainly think so, given these shady back-door lobbying efforts with Cabinet Ministers. My question is simple: if serving Ministers are found to have breached or been in breach of the ministerial code, will they resign?
The review will look to see exactly what happened in this situation. Nigel Boardman will do his work, which will report back at the end of June, and all the parties involved have committed to make sure that all the information is available.
Clearly, at the beginning, when the pandemic first struck, it was vital that we as a Government moved very swiftly to ensure the protection of small and medium-sized enterprises. Does my hon. Friend agree that it was right that the Treasury listened and gave consideration to all the potential options to support businesses to survive the pandemic given the extraordinary and unprecedented challenges facing UK SMEs last spring?
My hon. Friend is absolutely right. The scheme that we are being asked about today for large businesses protects many jobs in those companies, but it is right that we also looked at a diversity of lenders and of approaches to cover small businesses, as they do not always have the resilience and capacity of those larger businesses to survive and respond in these tough times.
I assumed that “whatever it takes” meant making sure that people got the help and the support that they needed, not deploying Treasury officials to try to mangle the rules in order to protect David Cameron’s shares. Just how many people and how many hours did the Chancellor devote to Mr Cameron’s concerns as opposed to those 3 million excluded self-employed people whom this Government have abandoned?
The Chancellor and other Ministers have spent many, many hours speaking to lenders and to businesses of all sizes to make sure that we can best reflect on and flex the support that is given to them. The system worked when the Chancellor was asked to change the scheme inappropriately, because, rather than having the banks involved in the CCFF, it was a Government-backed scheme with the Bank of England. That is why he rejected that approach, which meant that the procedure went well.
Businesses in Dudley South want support to go to the businesses that need it as quickly and effectively as possible rather than just falling back on how things have always been done when the times are far from ordinary. Can my hon. Friend assure them that, while processes will be transparent and due diligence will be done with taxpayers’ money, his Department will continue to look at all the options to make sure that the necessary support is getting to where it is needed rather than just going with traditional processes of distributing funds?
My hon. Friend is absolutely right. What the Chancellor, the Secretary of State for Business, Energy and Industrial Strategy and other Ministers have done throughout is to make sure that, rather than just reacting to events, we can flex and respond as best we can by speaking to businesses large and small and by speaking to stakeholders to try to smooth out those cliff edges of support. As we get to that road map, as we start to reopen and recover our economy, it is as important as ever to make sure that we have that flexibility within our support.
It is apparent in the text messages sent in April 2020 between the Chancellor and David Cameron, now published by the Treasury, that the Chancellor pushed the team to explore an alternative with the bank regarding cheap loans for Greensill. Will the Minister explain what those alternative arrangements were and why Greensill was deemed such an important recipient of public funds, even after the Bank of England refused to authorise Greensill’s entry into the covid corporate financing facility scheme?
The Bank of England refused Greensill’s entry because there were no banks in the scheme. It was a way for the Government and the Bank of England to get money to businesses and of underwriting it rather than its being a separate loan scheme. That is why Greensill was accredited for CLBILS. The only other request to expand Greensill’s reach came from the shadow Front-Bench team, who asked for it to receive the higher level—up to £200 million.
The Chancellor now washes his hands of the covid public lending schemes that he set up. It is laughable given the fanfare and fuss he made of their launch. I almost feel sorry for the Minister. He has been sent here to defend the actions of senior Ministers who are not even in his Department. Given that the Chancellor is the person who we know received lobbying texts from David Cameron, can the Minister tell the House what he thinks the Chancellor is afraid of?
The Chancellor has delivered £356 billion-worth of support, I think it is currently, to businesses. He has flexed at every opportunity across Government in devising and designing loan schemes, which are overseen by the British Business Bank, which is overseen, as the single shareholder, by the Secretary of State for BEIS. That is what we should be proud of. The Chancellor is not afraid of anything here. The question is about the coronavirus large business interruption loan scheme, which is administered by BEIS, and that is why I am here to answer it.
I understand and share my colleagues’ concerns about lobbying, but, like other corporate financial scandals such as Enron, we need to follow the money. We know that it was the German Greensill Bank that made the loans to Sanjeev Gupta and also supported the use of the private jets on which our former Prime Minister made many journeys, and that the bank is now under criminal investigation as many thousands of German people face bankruptcy. What conversations has the Minister had with the German prosecutors about the CLBILS loan scheme, and will they be invited to give evidence to the inquiry?
As I said in my opening statement, the bank opened an investigation into Greensill Capital’s compliance with the terms of the scheme in October 2020 and informed the Government of that on 9 October. That is continuing. The obligations as guarantor of the CLBILS scheme are suspended on a precautionary basis, but it would not be appropriate for me to comment on further investigations at this time as it is ongoing.
As if the billions of pounds of crony covid contracts was not bad enough for hard-working Brits to stomach, we now have a former Tory Prime Minister sending private text messages to the Chancellor and other Treasury Ministers lobbying for Government loans for a firm in which he himself is a shareholder and that is now insolvent; we have him going for a private drink with his financier friend Lex Greensill and the Health Secretary; and we have a Chancellor who messaged back to say that he would “push” his team to find a solution, and now has neither the courtesy nor the courage to come to this House to be held accountable for his actions. Does the Minister agree that this just stinks—downright stinks—not just because we are talking about former and current Tory Ministers all in it together, but because it is not merely the Chancellor’s money that has been put at risk but the British taxpayers’ hard-earned money that is at stake?
May I respectfully suggest to the hon. Gentleman, through the Speaker, that if he wants the Chancellor to come to answer a question, he might ask a question that relates to the Treasury rather than one that comes under the British Business Bank, which is a responsibility of BEIS? As for the Chancellor, as I say, the system has worked. The hon. Gentleman may be touting his Opposition day debate tomorrow about wider things, but the Chancellor asked his officials to push for wider capital flows to be able to go through larger and smaller businesses, as we all wanted, and he rejected Greensill’s ask to try to change the CCFF scheme to involve banks including Greensill. That process worked.
From a former Prime Minister texting Ministers in pursuit of his own financial interests to concerns over Russian state access to the other place, it is little wonder that questions have arisen as to the integrity of decision making in the UK. I acknowledge the Government’s commitment to investigate the Greensill debacle, but will they go further by implementing the Intelligence and Security Committee’s recommendations regarding undue influence in decision making, particularly in the practice of Lords for boards, to safeguard the transparency of our democratic decision making?
The review specifically looks at supply chain finance and the discussions with Greensill. As I say, Nigel Boardman will do his work and report back at the end of June.
I have written to Ministers on behalf of businesses in Chesterfield—many other MPs have written too—and have waited months for a reply while a business was on the brink, yet Greensill gets 10 meetings in three months with Treasury officials, and the junior Minister has the audacity to stand there and say that this is a system working well. When David Cameron was the Prime Minister, he said corporate lobbying was “money buying power, power fishing for money and a cosy club at the top making decisions in their own interest.” He could not describe this grubby, shabby Government any better, could he?
Treasury Ministers, like other Ministers, have had a number of meetings with lenders of all sorts, because as we heard earlier it is so important to have a diversity of lenders involved to create an understanding of their model and what support they can give. The accreditation itself was determined independently by the British Business Bank.
The inquiry announced by the Prime Minister seems to focus on the actions of David Cameron, but it is quite clear that the bigger consideration is the actions of Government Ministers and how they interacted to get Greensill what it wanted. It goes along with Government business as usual: crony appointments to the House of Lords and crony appointments to external bodies and regulators. Tory peer Baroness Harding was appointed to roll out the failed track and trace system. Then we have all the dodgy PPE contract awards. Surely it is not a short inquiry that is needed, but a public inquiry into the entire actions and dealings of this Government.
The review goes beyond the actions of one man in this matter, but it is important to remember that the Chancellor in particular rejected what Greensill actually wanted, so there is no case in that regard, because that was rejected out of hand.
The public deserve answers. This is not the Prime Minister’s money, the Chancellor’s money or the Conservative party’s money; it is public money. Can the Minister explain why Greensill Capital met Treasury officials 10 times last summer, as my hon. Friend the Member for Chesterfield (Mr Perkins) said, when the most meetings any other coronavirus business interruption loan scheme lender secured with the Treasury was two? The vast majority of lenders did not even have any meetings with his Department.
Lenders and businesses have had many, many meetings across Government without favour, to make sure that we can get that information to ensure a diversity of lenders and that we could flex. The various loan schemes were added to and amended along the way to make sure that we could take the temperature of exactly how that lending was or was not working.
I would like to associate myself first with the comments made earlier about Cheryl Gillan from all sides of the House. Many Members will remember that seven years ago, when David Cameron was putting his lobbying Bill through this place, he point blank refused to adopt any new clauses or amendments that would bring greater transparency to the corporate lobbying industry. I wonder why he did that. All these years later, is it not time to put that right and introduce greater transparency—not to stop corporate lobbying, which is a perfectly legitimate business to engage in, but to introduce greater accountability—so that we and the public know who is being lobbied and by whom?
I started off by talking about how the market works when there is transparency and openness, and lobbying comes within that. We should always review what is and is not there. The lobbying register should be working, and we need to make sure that that continues to work, but we always should be able to review lobbying activities to make sure that they are, as the hon. Gentleman says, transparent.
Is the central fact not that there was communication between a former Prime Minister and Ministers about his private interests? Will the Minister confirm that that is a breach of the long-standing British value that high office is not a grubby route through to great riches in the afterlife? Will he indicate that he could take immediate action while we wait for this inquiry, which sounds like a whitewash to me, to remove the impression that powerful wealth dominates public institutions? He could stop the revolving door between Ministers and the private sector. He could stop immediately all forms of lobbying within Westminster and Whitehall. Finally, he could stop the process of outsourcing to Tory chums.
What I can do is explain the difference between an output and an outcome. An output means that any number of meetings, any number of requests— unless you block the number, any Minister will receive those texts. An outcome is what actually happens as a result, and I was absolutely clear that the Chancellor rejected what was put forward by Greensill and rejected what was put forward by David Cameron.
This process is just another example of where covid contracts are becoming a genuine source of public concern. The allegations are further undermining public confidence and cultivating among the public a feeling of suspicion about all the activities of this Government. How do the Government propose to rebuild public trust in the wake of the emergence of yet another scandal?
Having been in opposition at a local level, I know what causes speculation and mistrust among the public, and it is that chipping away, the politicisation of some of these issues. But the Chancellor has been particularly robust in his actions and his outcomes here. There is a review; Nigel Boardman will do his work. People have committed to be open and transparent with him, and the review will report back at the end of June, and will show results for the public to see.
Was the British Business Bank approached by senior civil servants or Ministers about Greensill’s having access to the coronavirus large business interruption loan scheme? Did Greensill exceed its authority and lend more than it was authorised to lend—£400 million to the Gupta group alone, all of which has now been lost?
I am not aware of any communication between Ministers and the British Business Bank about the accreditation of Greensill, which was made independently of Government. There is an ongoing investigation into Greensill, so it would be inappropriate for me to comment at this time.
Five years ago this week, the former Member for Bolsover was asked to leave the Chamber for using unparliamentary language towards David Cameron regarding his personal finances. Does the Minister now agree that he was, and indeed remains, dodgy?
No.
When businesses continue to collapse and charities fold in our constituencies because they have not received a penny of support, it now appears that not everything that the former Prime Minister did was for the record, as exchanges took place to procure hundreds of millions of pounds out of the Treasury for a company that he was profiting from. The very loopholes that Labour tried to close in his lobbying legislation left sufficient room for that corruption. So will the Minister stop hiding the detail and now publish a timeline of every meeting, call, text message and conversation between the former Prime Minister and Members of this current Conservative Government and their officials—publish them before this House, so that we can understand the extent of his lobbying?
The Chancellor has published his text messages and there is a review that, rather than hiding, will go into the detail. As I said, all the parties involved have pledged their commitment to comply with that investigation, which will report back at the end of June.
The simple fact is that, again and again, Members from all parts of the House pleaded with the Chancellor to meet us to hear the plight of millions of people who were excluded from any Government support, and the Chancellor would never find the time for such a meeting; but a few texts from dodgy Dave, and Greensill has got 10 meetings and a ream of correspondence with senior Treasury officials—the type of access that most businesses in this country could only dream of. So I ask the Minister why it was that, in correspondence between Greensill and a senior Treasury official, they put in words: “Whilst not using this precise phrasing, we have crafted a formulation both in substance and form which provides an even stronger political position.” Why is a private company advising Treasury officials about political positioning; and does not this show that, despite his protestations, it is ludicrous that the Business Minister is here, not the Chancellor? If the Chancellor had nothing to fear, he would have nothing to hide and he would be here to answer the questions.
I am afraid that in Government we have to deal with details, and that includes asking the right question in the first place. If a question is asked about a BEIS responsibility, I think it is fair and reasonable that a BEIS Minister should come here and answer it. However, I come back to the point that the hon. Gentleman can come up with all he likes about process, but what businesses want are outcomes, and that means capital flowing through those businesses. The outcome in this situation was that the Chancellor rejected such a proposal, but the detail that the hon. Gentleman talks about will be investigated by Nigel Boardman, and that review will be published by the end of June.
Just three weeks ago, I asked Ministers to back an independent investigation into the actions of crony Cameron. At that time, they refused to answer, so I welcome the U-turn that has again taken place. However, the public expect and want total accountability and transparency, so will the Minister back a wider review into the dishing out of covid contracts to Tory donors and friends?
I am not sure I recognise the name that the hon. Gentleman calls the former Prime Minister, which I think is inappropriate. There is a review, which is investigating as we speak. With regard to covid, as I say, there are a number of things that we will look at when we are past this pandemic. We will look back at what has happened and at the support that the Government have given—the many hundreds of millions of pounds that the Government have given to small and large businesses.
I am suspending the House for three minutes to enable the necessary arrangements to be made for the next business.
Before I call the hon. Member for East Worthing and Shoreham (Tim Loughton), I wish to make it clear that it is in the public interest that Members should be able to speak and act freely in raising issues of concern. They should not be impeded in carrying out their duties—and that includes the Chair of the Foreign Affairs Committee. They are democratically elected representatives and nothing should interfere with the democratic process.
(Urgent Question): To ask the Secretary of State for Foreign, Commonwealth and Development Affairs if he will make a statement on recent sanctions imposed by the Chinese Government on UK citizens.
The Government stand in complete solidarity with those sanctioned by China. As the Prime Minister and Foreign Secretary have made clear, this action by Beijing is utterly unacceptable and unwarranted The House will recall that on 22 March, the UK, alongside the EU, Canada and the United States, imposed asset freezes and travel bans against four senior Chinese Government officials and one entity responsible for the violations that have taken place and persist against the Uyghur Muslims in Xinjiang. In response, China sanctioned nine individuals and four organisations, including Members of this House and the other place, who have criticised its record on human rights. It speaks volumes that while 30 countries are united in sanctioning those responsible for serious and systematic violations of human rights in Xinjiang, China’s response is to retaliate against those who seek to shine a light on those violations. It is fundamental to our parliamentary democracy that Members of both Houses can speak without fear or favour on matters of concern to the British people The Prime Minister and the Foreign Secretary have made absolutely clear the Government’s position through their public statements and on 22 March. I also summoned China’s representative in the UK to the Foreign, Commonwealth and Development Office to lodge a strong, formal protest at China’s actions. This Government have been quick to offer support to those who have been sanctioned. The Prime Minister and the Foreign Secretary held private meetings with the parliamentarians named in China’s announcement. My noble Friend, the Minister for human rights, Lord Ahmad, met other individuals and the entities that have been targeted. Through this engagement, we have provided guidance and an offer of ongoing support, including a designated FCDO point of contact and specialist briefing from relevant Departments Just as this Government will be unbowed by China’s action, I have no doubt that Members across this House will be undeterred in raising their fully justified concerns about the situation in Xinjiang and the human rights situation in China more broadly. I applaud the parliamentarians named by China: my hon. Friends the Members for East Worthing and Shoreham (Tim Loughton), for Tonbridge and Malling (Tom Tugendhat), for Harborough (Neil O’Brien) and for Wealden (Ms Ghani), my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), the noble Lord Alton and the noble Baroness Kennedy for the vital role they have played in drawing attention to the plight of the Uyghurs and other minorities in Xinjiang This Government have worked with partners to build the international caucus of those willing to speak out against China’s human rights violations and increase the pressure on China to change its behaviour. We have led joint statements at the UN’s human rights bodies, most recently joined by 38 countries at the UN General Assembly Third Committee in October, and we have backed up our international action with robust domestic measures. In addition to the global human rights sanctions announced on 22 March, the Foreign Secretary announced a series of targeted measures in January to help ensure that British businesses are not complicit in human rights violations in Xinjiang. The United Kingdom will continue to work alongside its partners to send the clearest possible signal of the international community’s serious concern and our collective willingness to act to hold China to account for its gross human rights violations in the region.
Mr Deputy Speaker, I thank the Speaker for granting this urgent question and for his robust support, together with that of the Lord Speaker, the Prime Minister, the Foreign Secretary and the Minister today. I suppose I need to declare an interest as one of the five right hon. and hon. Members of this House who have been placed on the Chinese Government’s sanctions list, apparently for “maliciously” spreading “lies and disinformation”; in the language of the Chinese Communist party, of course, that is a euphemism for speaking the truth. As parliamentarians we have been singled out, together with Lord Alton and Baroness Kennedy of The Shaws, presumably for our vociferous calling out of the genocide against the Uyghur people by the Chinese Government, the industrial-scale human rights abuses in Tibet and the suppression of free speech and liberty in Hong Kong. That is what parliamentarians do, without fear or favour, in a democracy. To be sanctioned by a totalitarian regime is, therefore, not only deeply ironic and laughable, but an abuse of parliamentary privilege of this House, by a foreign regime What further action are the Government considering against the Chinese Government to emphasise how unacceptable and unfounded their action is? Will the Minister assure the House that the Government will not be proceeding with any new agreements with the Chinese Government while these sanctions remain in place The other individuals named were Newcastle University academic Dr Jo Smith Finley and Uyghur expert lawyer, Sir Geoffrey Nice QC. Does the Minister agree that this also represents an attack on academic freedom and the independence of the legal profession in the United Kingdom? What support are the Government offering to those two individuals Given growing concerns about the malign influence of the Chinese Government in sensitive research projects in our universities, the sinister tentacles of the Confucius institutes on campuses and increasingly in our schools, not to mention the wide-scale buying of influence in UK boardrooms, will the Government commit to a detailed and transparent audit of Chinese influence in our education system, our military capability, our business and our infrastructure projects, and, if found to be acting against British interests, send them packing Given the disgraceful recent dressing-down of our ambassador in Beijing for supporting on social media the role of a free press, will the Minister confirm that British diplomats will not be bowed and will be fortified in calling out abuses by the Chinese Government wherever they happen, as we sanctioned parliamentarians have been fortified to call out the abuses of the totalitarian Government in China by their badly-thought-out and counterproductive use of sanctions, which we will wear as a badge of honour? Will the Minister signal, clearly and firmly, that project kowtow is over and that Britain will not flinch from standing up and calling out Chinese Government abuses, which they have got away with for far too long?
I thank my hon. Friend for his questions and for his bravery in the work that he and other right hon. and hon. Members have done, which led to these extraordinary measures by China We have been absolutely clear with China that its sanctioning of UK individuals and entities is unwarranted and unacceptable. My hon. Friend is right to shine a light on these measures. We will not allow this action by China—neither will our diplomats—to distract attention from the gross human rights violations in Xinjiang. We will continue to work alongside our partners to send the clearest possible signal of the international community’s serious concerns and our collective willingness to act My hon. Friend mentioned Jo Smith Finley, who is another of the individuals named. Academic freedom and freedom of speech are fundamental UK values and a cornerstone of the world-class UK higher education system. The attempt to silence those highlighting human rights violations in Xinjiang in academia is absolutely unwarranted and unacceptable. We are offering support to Jo Smith Finley, as we will and have for all those impacted by these sanctions.
The Labour party stands in solidarity with the nine British citizens, including Members of both Houses, who have been sanctioned by the Chinese Government solely for calling out Beijing’s appalling human rights abuses against the Uyghur people in Xinjiang. We welcome the Prime Minister’s invitation to those who were sanctioned to meet him, and we hope that the Government are providing those individuals with adequate advice and support. However, we are deeply concerned about the rank hypocrisy and inconsistency in the Government’s actions regarding China When Beijing introduced the Hong Kong national security law last summer, the UK withdrew from two UK-China Government investment forums: the joint trade and economic commission and the economic and financial dialogue. However, it is reported that those forums are now reopening. Will the Minister confirm that On Hong Kong, does the Minister now agree with the Opposition that British judges who serve in Hong Kong are only lending a veneer of credibility to a broken system and that they should therefore withdraw? Lord Reed’s review was announced in November. When will its conclusions be published? Where are the Magnitsky sanctions against Carrie Lam and the human rights violators in Hong Kong In January, the Foreign Secretary said that “we shouldn’t be” doing trade deals with countries committing human rights abuses “well below the level of genocide”, yet the Government whipped their MPs against the genocide amendment to the Trade Bill. Will the Minister explain that rank hypocrisy and why the Foreign Secretary says one thing in public and something else altogether in private? The Government claim to be alive to the threat that Chinese state-backed investment poses to Britain’s economic security and prosperity, so why on earth is the Business Secretary weakening our defences by watering down the National Security and Investment Bill? Today, Taiwan suffered the biggest Chinese military incursion into its airspace to date of 25 planes. What conversations is the Minister having with his counterparts about that worrying development It is clear that the Government have no strategy on China at home and no strategy on China abroad. Will they now commit to an audit of every aspect of the UK-China relationship so that we can finally call time on the Conservatives’ failed golden era strategy and replace weakness, division and inconsistency with an approach that is instead based on strength, unity and consistency?
I thank the hon. Gentleman for his questions. The reality is that the UK has always wanted a mature, positive relationship with China. That has to be based on mutual respect and trust. There is still considerable scope for constructive engagement and co-operation, but we will not sacrifice our values or our security. It is worth getting it on the record that China is an authoritarian state with different values from the UK. We continually act on matters on which we do not agree, including human rights and Hong Kong The hon. Gentleman mentioned Hong Kong. The prosperity and way of life for Hongkongers relies on respect for fundamental freedoms, which includes an independent judiciary and the rule of law. We are fully committed to upholding Hong Kong’s high degree of autonomy and rights and freedoms under the joint declaration. On the national security law, the imposition of the new rules including disqualifying elected legislators and changes to election processes, clearly constitutes a serious breach of the joint declaration. We consider Beijing to be in a state of ongoing non-compliance with the Sino-British joint declaration On Taiwan, yes, we are clearly concerned by any action that raises tensions in the Taiwan strait and risks destabilising the status quo. We have a long-standing policy that the Taiwan issue needs to be settled peacefully by the people on both sides of the Taiwan strait through constructive dialogue. We continue to work with Taiwan constructively on economic trade, education and cultural ties, and I think our relationship brings huge benefits to both the United Kingdom and Taiwan.
I thank Mr Speaker for his opening statement of support, which is absolutely right, and the Minister for his response. Surely the key question is: where do we go with our relationship with China? China has sanctioned, without reason, British politicians, people beyond the political sphere and organisations. It has also sanctioned people in Europe and in America. Surely it is now time for the Government to lead our allies in Europe and the United States in saying to China that there can be no preferential trade, economic or commercial deals done while our citizens are sanctioned. Will the Minister resist any moves by any other part of Government to water down any of the measures in the new National Security and Investment Bill, which is going through Parliament?
I commend my right hon. Friend for his continued work on this subject. The Government see China’s increasing international assertiveness at scale as potentially the most significant geopolitical shift in the 2020s, but it is vital that we co-operate with China to tackle the most important challenges facing this generation, not the least of which is climate change. We will do more to adapt to that growing impact and to manage our disagreements. We need to defend our values but co-operate where our interests align. We must pursue a positive economic relationship as well as tackle global challenges. I said in response to a previous question that the House should be in no doubt that China is an authoritarian state, with different values from those of the United Kingdom. We will continue to act on matters on which we do not agree, including human rights and Hong Kong.
As Members have said, the sanctions fit into a wider pattern of action that Beijing has been taking forward across the European continent and the US, reaching beyond politics and into academia and elsewhere. From the perspective of the Scottish National party, the whole point of democracy is that we can disagree, if not as friends then certainly as colleagues, and I have no hesitation in expressing our total support and total solidarity with the right hon. and hon. Members across the House and those elsewhere who have been sanctioned in this way. I am quite sure it will not silence them; it certainly will not silence SNP politicians in the Scottish Parliament or in this place Beijing has taken advantage of mixed signals from the UK Government. Although the Government have not done nothing, they could be tougher. It was a Conservative Government who whipped their own Members against a genocide amendment to the Trade Bill—a matter of great regret—and the UK still does not define the situation in Xinjiang as genocide. Does the Minister not agree that we need to be tougher on this? It is high time that the UK Government follow the lead of others, define what is happening in Xinjiang as genocide and make it clear that the UK will not do business with genocidal regimes anywhere?
The amendment to the Trade Bill that was passed is consistent with our long-standing policy that any judgment on whether genocide has occurred is a matter for a competent court, rather than for Governments or non-judicial bodies, and should be decided after consideration of all the evidence available in the context of a credible judicial process.
I want to put on the record my thanks to Mr Speaker for his robust support. He fully understands that sanctioning MPs was not only about intimidating us, but about threatening the integrity of this House. It is absurd for MPs to be sanctioned for producing a Select Committee report that talks about slave labour in Xinjiang. My question to the Minister is this: if we know that the United Nations is broken when it comes to determining genocide, what are we to do now that the Chinese communist party has decided to sanction those Members who dared to speak about it? The Minister spoke about the work the Government are doing with businesses to make sure that modern slavery is not in supply chains, but that is now worthless, because every business doing the right thing that was identified in our report is now being threatened by the Chinese communist party Finally, alongside many colleagues, I led on the genocide amendment to the Trade Bill. Although it is good that the Government’s compromise tackled genocide, it is shameful that it excluded the Uyghur. I do not expect a change in the law, but I do expect the Minister to say that the Uyghur people can now come forward in any process in this place that is established to see whether genocide is taking place.
I thank my hon. Friend for her persistent work in this area. She—and other colleagues and entities that have been sanctioned—obviously have the full support of the Foreign Office. I know that her work on the issue of genocide has been long standing, but I do think the Government’s amendment to the Trade Bill is consistent with our policy. Select Committees will be able to come up with a report that the Government have to consider. Depending on the response of the Select Committees, that could very well lead to a meaningful debate on the Floor of the House.
The Liberal Democrats offer full solidarity with colleagues and organisations who have been sanctioned for daring to speak out against atrocities committed by China. If the purpose of those sanctions was to try to muzzle them, I am sorry to say that all it has done is made all of us even more determined to speak truth to power in this place On 8 April, US Senate Foreign Relations Committee chairman Bob Menendez announced a bipartisan agreement on new comprehensive China legislation. What consideration has the Minister given to seeking cross-party support for a comprehensive and nuanced new foreign policy settlement towards China that protects democracy and human rights? As he will have seen from the strong support for the genocide amendment to the Trade Bill, such a settlement would be welcomed across the House.
Four months ago, the Foreign Secretary initiated a small, interdepartmental, Minister-led group on China, working on the exact point raised by the hon. Lady. It is absolutely right that we react after seeing China’s increasing international assertiveness in recent years. As I said previously, these are some of the most significant geopolitical shifts that we have seen in the 2020s. We will continue to hold China to account by bringing together the coalition through statements at the UN, and by working with and having alongside us 30 countries regarding the measures that we recently announced that have led to these sanctions. That should give the hon. Lady some comfort that the UK Government are working together with our international partners to shine a light on these gross violations.
Does my hon. Friend agree that if China wishes to rebut claims of human rights violations made by this Government or this House, the easiest thing it can do is to allow free and unfettered access to the United Nations Human Rights Commissioner?
My hon. Friend is spot on. That would help to clear up a lot of these issues. The Foreign Secretary has made it clear that the UN High Commissioner for Human Rights or another independent fact-finding body must be given unfettered access to Xinjiang to check the facts. We have called for this repeatedly in joint statements and national statements at the UN. It is vital that China allows such access without delay. If, as China claims, these allegations are fabrications and falsehoods, how can it object to granting access?
China sees the UK Government refusal to allow our courts and Parliaments to make judgments about genocide in relation to trade agreements as a sign of weakness, and its sanctions against UK citizens is the latest move to show that it will suppress democracy, abuse human rights and flout the rule of law. Since bullies only respond to strength, will the Government now use their chairing of COP26 and the G7 to bring unity in our trade and financial agreements to strongly support our shared values and our shared environment?
The hon. Gentleman raises a point about genocide that I have answered on previous questions. We are absolutely committed to ensuring that our trade policy is consistent with our international obligations, and it is absolutely clear that more trade does not have to come at the expense of human rights. We have a high level of ambition for our trade and investment partnership with China, but it should not come at the expense of human rights.
Many in Newport West were delighted by the election of Joe Biden and Kamala Harris, and I for one was among them. The Minister will know that the American Government have taken action where we have not, so can the Minister be clear? He has already been asked the question, but I was not clear on his answer. Does he intend to bring forward further sanctions on other entities and more senior individuals in relation to the appalling situation in Xinjiang? A simple yes or no will do.
We have acted to hold to account senior officials and a senior organisation responsible for the human rights violations taking place in Xinjiang. We have also acted with 30 other countries on an agreed set of designations. We have increased the reach and impact of these measures, and we have sent the clearest possible signal of the international community’s serious concern and collective willingness to act. As I have said many times at this Dispatch Box, it is not particularly wise to speculate on further such designations.
Does my hon. Friend agree with me that we should be focusing not only on sanctions, but on the measures that stop businesses in the UK profiting from forced labour in Xinjiang?
My hon. Friend is spot-on, and I agree with her. That is why on 12 January we announced a series of measures to help ensure UK businesses and the public sector are not complicit in human rights violations in Xinjiang. These measures target in a forensic way those profiting from forced labour or those that would financially support it, whether deliberately or otherwise.
I thank the Minister for his response. I spoke to the Minister beforehand, so he knows my question in advance. Will he further outline what support has been offered to those who have left China and Hong Kong and taken up UK citizenship? They are being called by the Chinese embassy to pick up letters—as my constituents have been over the last few weeks—with no further information about what is in the letters or even the need for them to attend in person to pick up the letters. They have been shaken by this secrecy and what some of them term as the “threat” of these letters. This is happening right here in the United Kingdom of Great Britain and Northern Ireland.
I thank the hon. Member for his point, and up until a few minutes ago I was not aware of the reports to which he refers. He will know the level of support we are offering to those coming from Hong Kong, not least the £30-some million announced by the Ministry of Housing, Communities and Local Government last week, to help people assimilate within communities. If he were to write to me formally with more detail, I would be more than happy to provide a full response or indeed to meet the hon. Member.
When it comes to the call to accuse China of genocide in Xinjiang, I am reminded of the work of Evelyn Beatrice Hall, who wrote in “The Friends of Voltaire”, as an illustration of Voltaire’s beliefs: “I disapprove of what you say, but I will defend to the death your right to say it” Therefore all of us, perhaps especially those of us who have had China visas denied in the past for alleged misdemeanours, should show our solidarity with colleagues so sanctioned Does the Minister agree with the statement made the other day by the former Foreign Secretary William Hague? He said that “it’s very important to find a framework of co-operation even with a rival power when there’s so much at stake in the world on climate change, arms control and on the future stability of the financial system.” Does my hon. Friend agree that this has to be the way forward?
My hon. Friend speaks with a great deal of experience on China. It is the case that China has different values from the United Kingdom, and as I have said, its increased international assertiveness is the most significant geo-political shift in recent years. A recent publication on international relations highlights that we will do more to adapt to China’s growing impact. We need to manage those disagreements, defend our values, but co-operate where those interests align. That includes pursuing the positives. As the former Foreign Secretary William Hague pointed out, this is a difficult balancing act, but we must pursue a positive economic relationship. That includes tackling all sorts of other challenges, but we have to call out China when it commits human rights violations. In great contrast to the sanctions that China has placed on right hon. and hon. Members, the sanctions that we issued, alongside our international partners, were thought out. They took some time to deliver, but they had a legal basis to them, contrary to the recent sanctions on our colleagues that we have seen from China.
I, too, put on record my thanks to Mr Speaker for granting this Urgent Question. The Foreign Secretary described what is happening in Xinjiang as “barbarism we had hoped was lost to another era”—[Official Report, 12 January 2021; Vol. 687, c. 160.] The growing evidence of Uyghur Muslims being repeatedly violated and used as slaves to farm cotton is indeed barbaric. When will the House be presented with Government legislation to firm up section 54 of the Modern Slavery Act 2015, so that all companies have a responsibility to prove that their supply chains are free from forced labour, and to reinforce sanctions for non-compliance?
I thank the hon. Lady for her question and for her support of the Government policy that will come forward to the House. Evidence of the scale and severity of the human rights violations being perpetrated in Xinjiang against the Uyghur people is far reaching and, as I am sure she will agree, paints a truly harrowing picture. We are looking forward to hearing about further measures, but hon. Members should be in no doubt that the Government will take action to ensure that slave labour is not used in any United Kingdom supply chains.
Does my hon. Friend agree that we should stand in solidarity not just with those Members facing sanctions in this House, but with all those law makers and others who have faced sanctions for speaking out against China in the United States, Canada and the EU? We will not be silenced.
My hon. Friend is right. We have made it clear that we regard China’s attempts to silence those who highlight and shine a light on human rights violations in Xinjiang as unwarranted and unacceptable, and we stand in solidarity with all those sanctioned by China. We are in close contact with the United States, Canada and our European partners, who have also had citizens or entities sanctioned.
Have we now reached the point where the Minister should confirm that the Government will not countenance any form of trade talks with the People’s Republic of China while it continues to sanction UK citizens?
I am not aware of any formal talks towards a formal trade partnership with China currently taking place, but we must be clear eyed about this. We must co-operate with China, but we will not be held back from shining a light on human rights violations.
Freedom of speech is a fundamental part of our British democracy. Can my hon. Friend confirm that he unequivocally supports the right of Members of this House to criticise China over human rights abuses? Does he agree that it is our duty to draw attention to outrages perpetrated by the Chinese Communist party in Xinjiang and elsewhere whenever we learn of them?
My hon. Friend is absolutely right. The fundamental difference between our two countries is that parliamentarians in the United Kingdom have freedom of speech and are allowed to raise issues in this place and outside it without fear or favour—that is the fundamental difference that China does not quite seem to understand. Its attempt to silence those highlighting violations in Xinjiang is not only, frankly, ridiculous; it is unacceptable and unwarranted. The Prime Minister has made it clear that the freedom of parliamentarians to speak out in opposition to human rights violations is fundamental, and that is why this Government stand firmly with all those who have been sanctioned.
The Chinese approach to geopolitics is grim to behold. At the United Nations, scores of countries have signed up to China’s distorted view of human rights. What is the UK doing at the United Nations to build an alliance that will take on China when it needs to be taken on?
The hon. Member raises a good point. As we have heard, this is a big year for the United Kingdom on the multilateral stage. We have built alliances. To be able to get 38 countries supporting our statement last October in the UN and to pull together an international caucus, with a number of countries that has risen from the early 20s to the late 30s, is by no means a small achievement. The ability also to work with international partners—every country in the European Union, the United States and Canada—to deliver the announcement the other week on our global human rights sanctions is a significant achievement.
May I associate myself with the tributes paid to Cheryl Gillan, the late Member for Chesham and Amersham? She was a dear friend, and we will miss her Does my hon. Friend agree that the Members who have been sanctioned by the Chinese, be they hon. or right hon. Members, are heroes of this Parliament for speaking up for free speech? Is this not just a thinly veiled attempt to distract the public from the horrific crimes that the Chinese Government are committing against not only the Uyghurs but other minority communities in China?
I agree wholeheartedly with my hon. Friend’s remarks about our former colleague Cheryl Gillan. I was her Whip for a time when I first became a Whip. I had not realised that Cheryl had also been a Whip and knew how the game worked, and she very politely reminded me of that. I remember her telling me, “If you need to be bothering me as a former Whip over this particular vote, Nigel, then you really are in trouble as a Government.” She will be sorely missed I also wholeheartedly agree with my hon. Friend’s comments about whether this is a thinly veiled attempt to distract attention from the horrific crimes. Well, of course it is. I agree 100% that we must not let this action by China distract from the horrific violations taking place in Xinjiang. We will continue to work with our international partners to send the clearest possible signal that the international community has a collective willingness to act.
I shared a room with Dame Cheryl for a period of time, and it just shows the strength of Dame Cheryl that she was able to put up with me for so long. We sat on the Council of Europe together and, Dame Cheryl, we are going to miss you greatly I thank the Minister for responding to the urgent question, which, as the Speaker intimated, hits at the very heart of the democracy in this country. We are now going to suspend for three minutes.
With permission, Mr Deputy Speaker, I would like to make a statement to update the House on the recent disorder in Northern Ireland The main areas of unrest have been specific parts of Belfast, Newtownabbey, Carrickfergus, Ballymena, Cookstown, Coleraine and Londonderry. The 7 and 8 April saw an escalation in the violence at an interface area, commonly referred to as a peace wall, in west Belfast, with missiles being thrown by large numbers of mainly young people over interface gates, and police coming under attack. As a result of the unrest, a total of 88 police officers have been injured, 18 arrests have been made and 15 individuals have been charged. My thoughts and, I am sure, the best wishes of everybody in this House are with those police officers On Friday 9 April, the incidents of public disorder were significantly reduced compared with previous evenings. There was, however, localised disorder in north Belfast. The remainder of the weekend and since has been much calmer, with only a few isolated incidents of disorder The violence witnessed last week was totally unacceptable. Attacks on police officers are utterly reprehensible. Those engaged in this destruction and disorder do not represent the people of Northern Ireland. It is tragic and deeply concerning that young people have been engaged in, and encouraged into, this violence, and, as a result, will now end up with criminal records It can be easy to look for a simplistic explanation for the recent disorder, but it is clear that the factors behind it are, in fact, complex and multi-faceted. People are frustrated after a year in which coronavirus has challenged all of us, and I do recognise how frustrating it has been, especially for young people in Northern Ireland facing the uncertainty around the lifting of lockdown restrictions without having the clear road map in Northern Ireland. There is also a perception that the rules and restrictions have not been enforced equally in Northern Ireland, and we all know that there are strongly held political views within and between communities that can be in tension with each other. I recognise that there are concerns about the implications of the Northern Ireland protocol—concerns that overlap with wider questions about national identity and political allegiance—and this comes at a time of economic uncertainty caused by the pandemic Northern Ireland has made huge strides over the past two decades, but it is a post-conflict society and there do remain elements of fragility. Some sections of the community feel that their concerns are not understood. The reconciliation, equality and mutual understanding between the communities and traditions envisioned in the Belfast/ Good Friday agreement are not recognised or experienced by all. There is still work to do The Belfast/Good Friday agreement, which was signed 23 years ago, highlighted the importance of progress in areas of social development, such as integrated education. These will be a vital part of Northern Ireland’s future, enabling even more young people to grow up in the reality of a shared society and able to effect positive change in their communities. The answer to all these issues and any others lies in dialogue, engagement and the democratic process, not through violence or disorder. It is incumbent on all of us engaged in political discourse to support Northern Ireland in leaving its divisive past behind and continuing instead to look ahead to all the opportunities of the future Policing and justice matters are devolved under strand 1 issues under the Belfast/ Good Friday agreement. Despite this being a devolved matter, though, the Government have an important role to play in supporting the Executive to ensure that calm prevails and in offering the Police Service of Northern Ireland and all those committed to dialogue and democracy our fullest possible support. I have continued to meet with Northern Ireland’s party leaders and the Police Service of Northern Ireland over recent days to discuss the unrest. Our collective priority is to work together to ensure public safety I very much welcome the statement from the Northern Ireland Executive on 8 April that set out a common position from all Executive parties against the violence and declares their support for law and order and policing. I want to express my gratitude to them for their efforts and to the PSNI for continuing to work to keep people safe I also welcome recent statements from many across the community and beyond condemning the violence and appealing for calm. The Government respect the right to protest, but it must be done in a peaceful manner that fully respects the rule of law. On 10 April, we marked 23 years since the signing of the Belfast/Good Friday agreement, an achievement of which the people of Northern Ireland are justifiably proud and on which we can continue, and must continue, to work closely with the Irish Government as co-guarantors of that agreement. In that time there has been a transformative change in Northern Ireland. Peace has brought stability and opportunity. It has enabled Northern Ireland to develop into the vibrant, exciting place that it is today The Government are resolutely committed to peace and prosperity in Northern Ireland. We have invested significantly in a wide range of programmes and initiatives to that end. The Belfast/Good Friday agreement provided the foundation for peace and a framework for prosperity and we are committed to it, as, I think, everyone in this House is. All of us across this House have a duty to support the people of Northern Ireland in shaping a peaceful and prosperous society for the future—a future that they can shape.I have seen at first hand an inclusive, prosperous and hopeful society that continues to build on that hard-won peace We must all work together to resolve the tensions that are currently being faced. I know from my ongoing engagement with stakeholders, including the Irish Government, that that is a shared view. The only way to resolve differences is through dialogue, and in that regard we must all lead by example. I commend this statement to the House.
I thank the Secretary of State for advance sight of his statement Twenty-three years ago this week, the Belfast Good Friday agreement was signed. The violence in recent days, some of it carried out by children with no memory of the dark days of the past, has been painful to witness. Our thoughts are with those injured, and our deep gratitude belongs with the police, community workers and leaders on the ground who have helped to restore some sense of calm in recent days The violence was unjustified and unjustifiable. Those adults cheering on youngsters showed a sickening disregard for their children’s futures. But recent months have shown just how fragile the peace is, and that it requires responsible and careful leadership to safeguard. As the Secretary of State has outlined, there are complex and varied factors behind the causes of the rioting—disrupted paramilitaries lashing out at the police; anger at the way in which the Bobby Storey funeral was handled last year—but there is also a very deep sense of hurt and anger among the Unionist and loyalist communities, which has been building for months and must not be ignored The Prime Minister made promises to the people of Northern Ireland that there would be no border with Great Britain, knowing full well that his Brexit deal would introduce barriers across the Irish sea. He made those promises because he knew that economic separation would be unacceptable to the Unionist community, and the growing political instability we are seeing has its roots in the loss of trust that that caused. Trust matters. It is what secured and has always sustained the Belfast Good Friday agreement In moments of instability, what Sir John Major and Tony Blair, Mo Mowlam and the right hon. Member for Skipton and Ripon (Julian Smith)—Labour and Conservative—understood was that trust, leadership and partnership are paramount to finding a way forward in Northern Ireland. As a co-guarantor to the Belfast Good Friday agreement, the Prime Minister owes it to the people of Northern Ireland to restore the trust he has squandered. He is not a casual observer to these events. He must step up and urgently convene talks with the political parties in Northern Ireland and all parties to the protocol to find solutions and political agreement Can the Secretary of State outline when the Prime Minister is planning to travel to Belfast to convene talks and show the leadership this moment demands? What is the strategy for addressing the loss of trust among the Unionist and loyalist communities to demonstrate that legitimate grievances are being heard? How are representatives of Northern Ireland being brought into the negotiations on huge decisions affecting their future? And can the Secretary of State detail—I have asked him this many times from this Dispatch Box—what practical solutions the Government are seeking with the EU to reduce checks and requirements between Britain and Northern Ireland? Fundamentally, the people of Northern Ireland must see that politics can work, and that the word of politicians can be trusted again Recent weeks have demonstrated starkly that peace is an ongoing process. It is no coincidence that violence has flared in areas of profound deprivation, where educational attainment is too low, paramilitary activity 23 years on from the agreement is still criminally high, and children are educated in segregated schools and grow up in segregated communities. For them, the promise of peace has not arrived. A toxic combination of deprivation and disregard has fuelled deep disillusionment. But we must believe that there is still a deep urge for a future where reconciliation walks hand in hand with social justice. We saw that in the courage of communities along the interface in Belfast this past week. We must now see political leaders match that courage This moment must mark the end of an era in which Northern Ireland has been relegated to little more than an afterthought and the promise of peace allowed to stall. It demands a collective renewal of our commitment to the agreement and the principles that secured it. It demands that the vacuum of leadership and strategy in Northern Ireland is now filled. The Prime Minister must face up to the consequences of his own actions and show the leadership that the communities are crying out for.
I welcome the hon. Lady’s condemnation of the violence and her support for the PSNI and others, as well as her words about the social fabric structure issues in Northern Ireland. It sounds like we have a shared view on that, particularly when we think about the failure to see the delivery of integrated education, for example, which was outlined back in 1998. That is one of the areas we need to work on. That is why the Government’s programme of work on levelling up and investing in city and growth deals and other areas is so important: to make sure that people can see the benefits of what is happening and can take the opportunities and move forward in a positive way The hon. Lady is absolutely right—I agree with her—in her comments about the Unionist and loyalist communities. It is so important to ensure that our friends and partners in the EU come to fully understand the issue around identity that people feel so passionately about—rightly so—in Northern Ireland in the Unionist community, and the impact that the decision on article 16 has had for people in that community. I welcome the fact that Vice-President Maroš Šefčovič met with civic society and business leaders some weeks ago now. I encourage him to do as he has pledged to and to do more of that work to fully understand The hon. Lady referenced the protocol. As I have just noted, issues on that protocol have played a part in tensions in the loyalist and Unionist communities. That is why I and the Prime Minister have been very clear about our determination to deal with those issues and to find a way forward. We all remember that the protocol is there and in place because of the unique circumstances of Northern Ireland. We have got to make sure it works in a good, fluid and flexible way, so that it works for the people of Northern Ireland, because ultimately it only works if it is working for everybody across the community. It has to be something that is acceptable to the Unionist and loyalist communities as well The hon. Lady mentioned talks. Obviously, I have met leaders in the Executive, as well as party leaders. I do that regularly and will continue to do so. The Prime Minister has met with people from civil society and the business community on the protocol. We support the established bodies that have been set up—the Joint Committee and so on—and there is the work we are doing there to resolve the issues I am glad to hear that the hon. Lady wants to see reduced checks. I assume that she supports retrospectively the unilateral action that we took just a few weeks ago and will support the work that the Government are doing to ensure that we reduce the checks so that the protocol works in the pragmatic way that was always envisaged. Ultimately, we come back to being united on the fact that, wherever we agree or disagree, the way forward is always through dialogue, never through violence.
I thank my right hon. Friend for his statement. I echo the comments of the shadow Secretary of State. Our thoughts and prayers are with the injured PSNI officers and the vast majority of law-abiding residents who have been caught up in the recent thuggish, criminal behaviour Peace and prosperity are, as my right hon. Friend knows, two sides of the Good Friday agreement coin. We know that there can be no prosperity without peace. I urge him to turbo-charge, with the Executive, the prosperity agenda, so to bring back into the fold those who might say, like those fictional Judeans in the film, “What has the GFA ever done for us?” We must focus on prosperity as much as peace.
My hon. Friend, who chairs the Northern Ireland Affairs Committee, makes a very good point. He is absolutely right, not just in his admiration for cinema, but in his recognition that there is work that we need to do. I share his view of cinema in that respect One of the things I am looking forward to working through is the delivery of the new deal programme, the £400 million investment we have secured on top of the city and growth deals and the investment through “New Decade, New Approach”. That is looking very specifically at how we help Northern Ireland benefit from and take forward opportunities in the years ahead, as well as working with the Executive through the £15 billion block grant, to make sure that we are creating opportunity. That includes skills for the future. The social fabric is part of that. I passionately feel that integrated education has to be an integral part of that future, to bring people together and make sure that people are getting a really good education and the economy is growing and thriving One thing that those of us who spend time in Northern Ireland always see is the entrepreneurial spirit and the ability to see opportunities and drive forward in a positive way, which is great for the economy and creates jobs. As we come out of covid, Northern Ireland’s economy can have a really bright future.
I thank the Secretary of State for advance sight of his statement. I associate myself with the remarks of both Front Benchers in their condemnation of the violence we have sadly seen. My thoughts are with those injured in the disturbances, and in particular with those in the emergency services who have been working hard to keep their communities safe The disorder we have seen in recent days represents, for those of us who grew up with strong memories of the troubles, scenes we thought we had left behind for good. We do not strengthen communities by encouraging criminality and disorder within them. We can all agree how sickening it was to see young children being encouraged in acts of violence by their elders who lived through that cycle of violence themselves Moving on from where we are will require a number of things. It will require respect for the law and those who enforce it, whether that is the officers of the PSNI, the leadership of the PSNI or the prosecution service. All must be supported fully in dealing with criminality and maintaining public order in a way that is consistent, fair and proportionate across all sections of Northern Ireland. Above all, it will require leadership, integrity, honesty and respect from politicians. There has, sadly, to date been a dearth of some of those qualities on show in the way that the protocol has been negotiated and implemented. The price being paid for that is sadly all too clear. The protocol was entered into freely by the UK Government and it is here to stay. Surely we can agree that the only route to amending it is through trust and good will on all sides The great success of the Good Friday agreement was in ensuring that the symbols of a border in the island of Ireland disappeared. If we can all agree that there is now a trade border, we can surely agree that the symbolism of that matters. One practical step, which I have raised with the Secretary of State before, would be to introduce a realignment of sanitary and phytosanitary checks between Great Britain and Northern Ireland. That would remove some of the more snagging aspects of the current protocol and the difficulties with symbolism that it causes. Will the Secretary of State, in his discussions with all partners in this process, continue discussions on whether that is something we can do to smooth the passage of the protocol? Will he agree to work with other devolved Governments, which that would also impact upon?
I certainly agree with and appreciate the hon. Gentleman’s remarks in the first part of his statement The hon. Gentleman spent a fair part of his question referring to the protocol. We have to be very cautious when talking about the intentions, issues and views people have about the Northern Ireland protocol. As valid as they may be, they do not—it should never be argued that they do—in any way legitimise what we saw the other week. As others have said, it is right that we work through any disagreement in a political and democratic way. We also have to be very wary of the simplicity of thinking that what happened the other week was over one particular issue. As I think I outlined, and as the hon. Member for Sheffield, Heeley (Louise Haigh) outlined, it was a multifaceted set of issues I recognise the issues that are there from the outworking on the protocol as we have seen it in the first part of this year. We are committed to wanting to deal with that. We are very clear that Northern Ireland is an integral part of the UK and an integral part of the UK customs territory. The protocol was put in place primarily because the EU has a clear focus on protecting its single market. Our focus is on ensuring that the Belfast Good Friday agreement is respected in all of its strands, and that includes east-west. That is why we are very clear that while we want to ensure that goods moving into the EU through the Republic of Ireland are properly dealt with, goods that are moving from Northern Ireland to Great Britain are unfettered, as they are, and goods moving from Great Britain into Northern Ireland can do so freely and flexibly in a pragmatic approach.
I associate myself with the preceding comments made about the sad passing of our friend and colleague Dame Cheryl Gillan. I also associate myself with the support expressed for the Police Service of Northern Ireland and those affected in the troubles in recent days. In view of the serious events in Northern Ireland and the underlying causes, does my right hon. Friend agree that there is a need for the European Union, the Republic of Ireland and the UK to be pragmatic and practical in coming to an agreement on the Northern Ireland protocol? Furthermore, does the Secretary of State believe that the European Union fully understood the potential implications and risks, when it invoked article 16 of that protocol?
I hope you will excuse me, Mr Deputy Speaker, if I join my right hon. Friend in his comments about the late Cheryl Gillan. This is the first chance I have had at the Dispatch Box to say that she became a very, very good friend to me over a period a short while ago, as I think you know full well, Mr Deputy Speaker, and she will be very, very sorely missed by all My right hon. Friend is absolutely right about this situation, as I said earlier. I am encouraging our friends and colleagues in the European Union, particularly Maroš Šefčovič as vice-president, and his team, to take the opportunity, as restrictions allow—whether it is virtually at the moment or, as restrictions ease, by being present in Northern Ireland—to understand the implications of the outworking of the protocol, including the practical supply line issues that we took action on recently, and also to understand the real issue of identity that the loyalist-Unionist community feel. The outworking of the protocol affects everybody in Northern Ireland. It is not a constitutional issue, in that sense. Whatever part of the community somebody is from, some of the outworkings for consumers and businesses have an impact. The issue of identity for Unionist and loyalist people in Northern Ireland is very real, and there is no doubt that that was intensified after the action the EU took around article 16. While the EU recognises that that was a mistake, it is important that it fully takes the time to understand the long-term implications of it and why it is so important that we work together to find pragmatic, proper solutions.
We condemn the violence. It is not justified. Attacking police officers in this way is wrong. Our thoughts and prayers are with the police officers who have been injured, and we thank them and their colleagues for their courage and determination in impartially applying the rule of law The hon. Member for Sheffield, Heeley (Louise Haigh) put her finger on it when she said that the issue is trust. Taking the peace process forward has to be built on trust. That trust was broken in relation to the findings on the Bobby Storey funeral, undermining people’s trust and confidence in policing and justice in Northern Ireland. There is a two-tier policing system in the eyes of some, and that needs to be addressed. Importantly, there was also a breach of trust in relation to the Northern Ireland protocol and creating barriers to trade between Great Britain and Northern Ireland that we were told would not happen and have happened, undermining the sense of identity and the place of Northern Ireland within the United Kingdom. What is the Secretary of State going to do, with the Northern Ireland political parties, to address the issues around policing and justice, and, crucially, to replace this protocol with something better that restores Northern Ireland’s place fully within the internal market of the United Kingdom?
As the right hon. Gentleman knows, we took unilateral action just a few weeks ago to ease some of these issues—issues that would have made matters even more difficult, as I suggested at the time. I think it is now very clear that that was the right action to take and that, through that, people can see that we are determined to deal with some of the problems and the issues in the protocol. My right hon. Friend the noble Lord Frost is working through the correct established bodies—the Joint Committee and so on—with our partners in the EU to come to and work out a proper, long-lasting solution in terms of the challenges around the protocol The right hon. Gentleman is also absolutely right about—as I mentioned in my opening remarks—people perceiving that not everybody has been treated equally in terms of the implications of the rules around coronavirus. The Bobby Storey funeral is a very clear example of that, with the decision that came through just a few days before the violence got to the point that it did. There is a very important role for the PSNI and the Northern Ireland Policing Board in working with communities to restore and build trust. I have been talking to the Chief Constable about that, and to the parties on the Executive, as the right hon. Gentleman knows. I think everybody is very alert to the very real fact that, whatever anybody’s view of what happened around the funeral, the decision that was made has had a very substantial impact. There is work that the various agencies and bodies, including the PSNI and the Policing Board, need to do to reconnect with communities to show them that the PSNI is there for the safety and protection of everybody across the entire community of Northern Ireland.
I strongly support all that the Government and the Opposition have said about the violence. As the Northern Ireland protocol stresses the need to maintain Northern Ireland’s integrated place in the United Kingdom’s internal market, will the UK Government now ensure the easy and free movement of all goods from GB to Northern Ireland that are not at risk of going to the Republic? Should a good not be able to move as easily from Liverpool to Belfast as from Liverpool to Birmingham, and should that not be under the direct control of the UK authorities?
I welcome my right hon. Friend’s comments on the violence, and he is absolutely right. The position that he has outlined that we need to get to is exactly where we want to get to. Obviously we want to do that in partnership and agreement with our friends and partners in the EU, and that work is what we are doing at this very moment.
For years, the Government have been warned that peace in Northern Ireland was a delicate and fragile thing that was not to be taken for granted. The fact that we have reached this point illustrates sadly only too well the recklessness of the Prime Minister in particular with regard to the position of Northern Ireland and our departure from the European Union. This is not the first time in the past 23 years that we have found ourselves in peril. On previous occasions, it has taken the Prime Minister of the day to step up to the plate. The symbolism and demonstrating leadership are what is necessary. His predecessors have done it; will he do it now?
For my part, that is absolutely the work that we are doing with the parties, civic society and business leaders in Northern Ireland. The Prime Minister and I have been involved in that all the way through. He has had a consistent focus on ensuring that we are delivering for the people of Northern Ireland over the entire period, and not just the past few days, although obviously he has been involved in the past few days and had conversations with the Taoiseach, rather like my conversations with the Irish Foreign Minister The right hon. Gentleman makes a good point about the Good Friday agreement. We always need to remind ourselves that the Good Friday agreement has three strands, and we must resist the temptation that some people have to see the Good Friday agreement through simply one strand of north-south. The east-west and Northern Ireland strands are hugely important. One of the things we have to do is make sure we are delivering on the east-west part of the Good Friday agreement, so that the agreement is applied and working in all its strands.
May I add my condolences to those expressed earlier and send them to Cheryl Gillan’s family, following her sad death last week? She was seen on our Benches as the mother of our side of the Chamber. She was a generous lady. She was kind, and we will really miss her People will be listening to these exchanges today concerned that this unacceptable violence and disorder could mean yet more delay to the implementation of the laws that we agreed in this place over a year ago on access to abortion and abortion aftercare in Northern Ireland—healthcare that is routinely available in the rest of the UK. Can my right hon. Friend assure the House that he will not be distracted from the steps he set out a few weeks ago, and that there will be no more delay in giving women and girls in Northern Ireland the same rights as women and girls throughout the rest of the UK when it comes to access to abortion and abortion aftercare?
Yes, I can give that assurance. I would go a little bit further: even in the conversations I was having in Belfast yesterday with community groups and political leaders, everybody was very determined to continue to deliver for the people of Northern Ireland in the widest sense through the “New Decade, New Approach” agreement. We will not be distracted from delivering on our promises and the actions we took on abortion, as we outlined just a few weeks ago. It comes back to remembering that, with what we saw last week for those few days—hopefully we do not see a recurrence of it—we all have a part to play in encouraging a calm approach to disagreements, but we must not be deterred from the wider work to deliver for Northern Ireland by the actions of criminals, thugs and hooligans.
I welcome the Secretary of State’s statement and particularly his comments on integrated education, but may I press him on strand 3 of the Good Friday agreement, which he has talked about? Has he had discussions with the Chancellor of the Duchy of Lancaster and the Irish Government about holding another British-Irish Intergovernmental Conference? Such conferences are so crucial to the relationship across these islands and we have not had one for nearly two years.
The hon. Lady makes a fair point. The British-Irish Council has met regularly and continues to do so—it met in November last year and has met regularly, annually. The British-Irish Intergovernmental Conference, which did not meet between February 2007 and July 2018, has met three times since then. We will of course look for the appropriate time for the next meeting of the BIIGC, especially in the context of ensuring the strengthening of the bilateral relationship between the UK and Ireland now that we have left the EU—I have spoken to the Irish Foreign Minister about that—but we also need to be clear that policing is a devolved matter so falls outside the remit of the BIIGC.
I welcome my right hon. Friend’s statement and his continuing commitment to resolving the issues thrown up by the Northern Ireland protocol. Given that one of the many reasons for the recent unacceptable disorder is that one side of the community undoubtedly feels their concerns are not being listened to, not least by those in the European Union, what representations will my right hon. Friend make to those outside Northern Ireland such that they listen more carefully to the concerns of all communities in Northern Ireland?
My hon. Friend raises a really important point. Colleagues from all parties are speaking about this issue in the House today and they have influence and relationships throughout the EU, and it is incumbent on us all to make the case widely that it is important that the EU understands the issue of identity and why the tensions that we are seeing in the loyalist and Unionist community are there in respect of some of the things that happened earlier this year, as we have already outlined. As I say, there is a fundamentally multifaceted, complex set of reasons behind what happened last week, and there is work for all of us to do in moving things forward. My hon. Friend is absolutely right that we all have a part to play to ensure that people understand the complications, nuances and sensitivities in Northern Ireland.
The Secretary of State deserves the support of the whole House and, indeed, of the people across these two islands for every effort he makes to bring together politicians in Northern Ireland, in Dublin and here in Great Britain, but the right hon. Member for Lagan Valley (Sir Jeffrey M. Donaldson) is right to point out that at the moment the lack of trust is palpable. If the Secretary of State wants to make sure that the European Union understands the situation in Northern Ireland and if he wants to bring people together, it would not be just symbolism for him to tell the Prime Minister that he has to be visible at this time if he is to provide the kind of leadership that we have expected from Prime Ministers in the past. We need brave decisions; it is now up to the Prime Minister to step forward and provide that kind of leadership.
The hon. Gentleman has a long-held and strong passion for Northern Ireland and has always worked in a collegiate way to ensure that the people of Northern Ireland are well supported. He is absolutely right about bringing people together, which is what we have been doing. As I have outlined, it is important that we encourage our friends and partners around the world, including the EU, to do that. The Prime Minister has been integrally involved in Northern Ireland and was actually there just a couple of weeks ago.
I thank the Secretary of State for his statement, but I have to say that I am disappointed by the lack of any acceptance of culpability from his Government in respect of how they have dealt with the Brexit issue from the start and how they have not been honest with the Unionist population in Northern Ireland. Church leaders have asked us to come together to deal with this crisis in our peace process. Despite what the Secretary of State has said, policing may be devolved but peace is not devolved. We all have a responsibility to deal with this situation. Why will the Secretary of State and his Government not convene the British-Irish Intergovernmental Conference?
On the hon. Gentleman’s last comment, he might want to have a look through Hansard later and reread my remarks, because that is not what I said. It is actually quite the opposite—I have spoken to the Irish Government—so I suggest he has a look at what I actually said It is very misleading to try, as I said earlier, to legitimise or even to simplify—I appreciate that the hon. Gentleman is not legitimising it, to be fair—what we have seen over the past few weeks and the tensions around Brexit. As many of us know—I know the hon. Gentleman knows this because it was outlined to him and me by the Chief Constable at the end of last week—there is a multifaceted set of issues, not least some of the brilliant work that the PSNI has done to crack down on crime. Some of that has been rehearsed today I have faith in the Northern Ireland Executive and Ministers, one of whom is a member of the hon. Gentleman’s party, to do their work to deliver for the people of Northern Ireland. The Executive came together just a few weeks before covid came upon us all last year. The way in which they have worked through the last year—staying together and working together for the people of Northern Ireland—has been a phenomenal achievement and huge credit goes to all those involved. I have faith in them to do the work that is devolved to them. I will continue to support them in that and to support the PSNI to do the job that it is focused on doing: keeping everybody in Northern Ireland safe.
As my right hon. Friend said, the reason for the scenes that we have seen over recent weeks are multifaceted and that means that there is not a single solution to the problems; there will have to be a holistic approach. Will he confirm that he is finding ways to bring together all partners—not just the PSNI and the Northern Ireland Executive, but the Irish Government, the European Union and civil society—to come up with a holistic strategy for bringing peace back to the streets of Belfast?
My hon. Friend is right about the multifaceted situation. There is work that we have to do. We have touched on integrated education. We also have to ensure that there is a stronger and more connected relationship in some communities with the police and political parties in Northern Ireland—across the communities. That has come through very clearly in the engagement that I have had—not just in the last few days, but over a period of time—with people across various community and civic groups. As I said earlier, we will of course look for an appropriate time for a future meeting of the BIIGC, particularly in the light of the redevelopment and strengthening of the bilateral relationship between ourselves and the Irish Government now that we have left the EU.
May I say at the outset that my thoughts and prayers are with the officers injured in recent days? Although all right-minded people will condemn any violence or threat of violence in Northern Ireland—now and in the past—does the Secretary of State accept that the anger in the Unionist community goes far beyond those who have taken to the streets in recent days? Will he take any opportunity to point out to his Irish or European colleagues, whose belligerent approach has exacerbated the difficulties, that the rigorous implementation of the protocol is not only inconsistent with the Belfast agreement—it is also, even before it has been implemented in full, causing societal difficulties in Northern Ireland? Will he also confirm that, with or without necessary flexibility being shown by the European Commission, the Government will fulfil the Prime Minister’s assurance in December 2019 that there would be “no checks” on goods going from Northern Ireland to GB or from GB to Northern Ireland?
The hon. Lady has strongly and passionately outlined the sense of frustration and tension in Northern Ireland. I have talked to businesses, and whether somebody is nationalist or Unionist, they have seen an impact from the outworkings of the protocol, such as some of the issues that we saw earlier this year. We are working with the business community and civic society across the whole community of Northern Ireland to find sensible solutions We would like to work on this with our European partners, but the hon. Lady is right that the actions that we saw, particularly those around article 16, had an acute impact on the sense of frustration, tension and anger across the Unionist community. Thankfully—she is absolutely right about this and we need to be clear about it—the vast majority of people who have that anger are expressing it in the right way: through their politicians, to move things forward in a democratic sense, with dialogue; and through peaceful protests. That is absolutely right. We defend their right to do that and we will continue to engage on that. As she rightly says, that does not at any point ever excuse violence; we need to be very clear about that. We are determined to work through these issues and ensure that the protocol can work for everybody in a sense that is pragmatic and flexible, with free-flowing trade for GB into NI.
I also express my full support for the PSNI, including the Chief Constable. The Secretary of State well knows my views on the importance of a UK-EU veterinary agreement to take the heat out of the protocol. He also directly referred to the need to address deprivation and segregation. In that regard, may I invite him to consider extending his Government’s Fresh Start funding, which is so important for the expansion of integrated education, and to work with his ministerial colleagues to provide urgent clarity on the shared prosperity fund, which is so important for local employability schemes?
I am very happy to do that. In fact, we organised a meeting just recently for Executive Ministers and Ministers and officials from Government, including the Ministry of Housing, Communities and Local Government, to talk through the schemes—not just the shared prosperity fund but the community renewal fund and others—because there are substantial extra funds available this year for Northern Ireland as we move towards the shared prosperity fund. As I set out earlier, part of the £400 million of new deal money will be focused on work around social fabric and potentially integrated education, and I am really keen to engage to make sure that that money is put into areas where it has the most beneficial impact and is positive for people on the ground in Northern Ireland.
Does the Secretary of State agree that the democratic institutions in Northern Ireland have a key role to play in ending this violence? Will he therefore urge all the parties not to take the step of suspending the institutions, as we have seen in recent years, and to keep talking to find a solution to take Northern Ireland forward?
The short answer is yes, but I want to stress that the main political parties that form the Executive in Northern Ireland are all in the place that my hon. Friend outlined—working together. That is why it was really good to see them come together last week with a joint statement on this. There are five different political parties in a power-sharing arrangement in a devolved authority. Obviously, they will disagree on things from time to time. What they absolutely agree on is their right to disagree and to do so in a democratic and peaceful way, which they have worked together on very well since the re-formation after the New Decade, New Approach agreement last year, and I hope they will continue to do that. From my engagement with them all at the moment, I am confident that they will, and it is the right thing to do—it is certainly what the people of Northern Ireland want to see.
I associate myself with the shadow Secretary of State’s remarks on the complex situation in Northern Ireland. Notwithstanding that, just five weeks ago, the Prime Minister said that the Northern Irish protocol must not place “barriers of any kind” down the Irish sea. Can the Secretary of State explain to the House why the Prime Minister negotiated an agreement that did exactly that? Does he accept that the gap between what the Prime Minister says on Northern Ireland and what he does has contributed to a serious collapse in trust that now requires urgent prime ministerial attention?
It is interesting that, in talking about a complex and multifaceted situation, the hon. Lady goes straight to talking about Brexit, which again highlights that Labour is so far behind where the general public are on finding a way to move forward to deliver on this. We have been clear from the beginning that the protocol is there because of the unique circumstances in Northern Ireland. It has to work in a way that works for people across the communities in Northern Ireland and for the whole of Northern Ireland—in a flexible, pragmatic way The hon. Lady talks about the Prime Minister’s involvement. Obviously, he has been involved, not just in the last few days but consistently through this process. He has been very clear about our determination and his determination—this is exactly what Lord Frost is working on at the moment through the Joint Committee and with my Department—to ensure that we deliver an outcome that means that these products flow in a flexible manner, because the protocol is there. As I said earlier, we understand that the EU has that great concern about protecting its single market. We have to make sure that the protocol respects the Good Friday agreement in all three strands, including east-west.
Does my right hon. Friend agree that the violence we have seen is utterly unacceptable and that the only way we can make progress on these issues is through peaceful and inclusive dialogue?
My hon. Friend is absolutely right. Obviously, we need to understand all the issues that have come together to lead people to think that violence is the solution, completely unacceptably, and work through that with the political parties and the community groups in Northern Ireland. She is absolutely right: there is no excuse for what we saw the other week. It was utterly reprehensible. As I have said before and as others have rightly said, our thoughts are with the police, whose focus is on keeping people safe.
The abdication of any responsibility for the scenes that we have seen on the streets of Northern Ireland by this Government and this Secretary of State is shameful. The Prime Minister made consistent promises that there would be no border down the Irish sea. The Prime Minister also persistently threatened to break international law, repeatedly undermining the Good Friday agreement. The nature of politics towards the north of Ireland under this Government as a consequence of Brexit has been, at best, regretful. Does the Secretary of State understand the complexities—I have my concerns—and will he take responsibility for the repeated failures of his party in government?
If the hon. Gentleman looks at what I have said this afternoon, I think he will see that I have proven quite the opposite in acknowledging the multifaceted issues that led to the violence we saw the other week, not that that excuses or legitimises in any way the reprehensible behaviour we saw from some and the encouragement of young people, which I find particularly despicable. It is good to see, if I heard his question correctly, that he now fully supports us in ensuring that there are no borders. I therefore look forward to his support if we have to take further action and for any further action we take to deliver on that in the way we promised people in Northern Ireland: with a pragmatic and flexible approach to the Northern Ireland protocol.
Does my right hon. Friend agree that the Belfast/Good Friday agreement has brought untold benefits to Northern Ireland over the past 23 years and that it is therefore the Belfast/Good Friday agreement that must be the basis for future co-operation and political engagement?
Absolutely. We now see a vibrant, exciting economy. Whether it is FinTech, renewable energy, cyber, the creative arts or advanced engineering and manufacturing, wherever people go in Northern Ireland, they will see entrepreneurship and opportunity, which is a testament to the phenomenal success of the Belfast/Good Friday agreement. I want that to continue to live on. I am absolutely passionate about ensuring that we deliver on that for the people of Northern Ireland. We do so by respecting, delivering on and working with everything and every part of the Good Friday agreement.
May I convey my thoughts for those PSNI officers who have been injured in the last week? They serve our community valiantly and often become the casualty when politics does not work. I also commend the leadership shown by my colleagues in my constituency of Belfast East and community leaders who have ensured that our part of the city has remained calm The Secretary of State is right to caution against legitimising violence. It should not happen. Violence is wrong. But when we talk of dialogue, I hope he will agree that the serious issues that have been raised should not be ignored. I hope he will appreciate that there are still too many politicians in Northern Ireland who not only dismiss the concerns but denigrate those in our community who voice them. If we want to see politics work, and I do, and we want to see constitutional politics work, and it should, we need to see the tangible results of all the flexibilities and resolutions for the injurious imposition we are facing in Northern Ireland.
The hon. Gentleman is absolutely right. I commend him and his colleagues in the area who have been working closely with their communities and giving the support that the community groups, communities themselves and indeed the PSNI have benefited from. He is also right that we all need to ensure that we are engaging properly across the entire community of Northern Ireland. We should be engaging with anybody looking to find a peaceful solution and to use dialogue to condemn violence, and wanting to be part of taking Northern Ireland forward in a positive way. It is absolutely right that we take the time to have those difficult conversations sometimes, when they are there, even on issues where we disagree, to ensure that we can understand and look at how we can deliver on things in a way that works for everybody. In short, he is absolutely right.
Further to what my hon. Friends have said about the Northern Ireland protocol, does my right hon. Friend agree that the reckless invocation of article 16 by the EU, for however short a period, without thought for the consequences, has contributed to the political tensions we now see in Northern Ireland?
My hon. Friend is correct. To be fair, the EU has recognised the mistake, acknowledged the mistake, apologised for it and stepped back from the brink, but that action definitely had an impact. That is something that representatives from civic society made clear to the vice-president. That is why it is important that our colleagues and friends in the EU take some time to really understand some of the nuances and complexities of the communities in Northern Ireland and in particular the sense of identity of the Unionist and loyalist community and why that action not just had an impact that night but has had a lasting effect on people’s sense of identity.
Given that the Government are committed to seeking an agreement with the EU on veterinary standards, which has been repeated by the Secretary of State for Environment, Food and Rural Affairs, can the Secretary of State confirm that that is something that Ministers are pursuing in the Joint Committee? Does he support such an agreement, which would reduce checks and red tape and lower tension in the long term?
The hon. Lady is right. The Joint Committee, Lord Frost, my colleague the Secretary of State for the Environment, Food and Rural Affairs and other relevant Departments have, across Government, been working on the various issues, to iron out the challenges and some of the problems that we have seen with the outworking of the protocol in the first few months of this year. We must get those things resolved, and our intention, aim and focus is on doing so by agreement, and in agreement with our friends and partners in the EU.
Social media has been used to lure young people to interfaces between communities, inflaming the crisis with provocative messages and fake news. Will the Secretary of State make clear that social media giants such as Facebook and WhatsApp cannot wash their hands of responsibility, and they have a duty to act to prevent their platforms from being used to incite violence?
The hon. Lady makes a good point, and it is another example of how, even in an extended discussion such as this one, many more issues have been involved over the past few weeks. She is right to mention social media and people being subject to fake news, bot accounts and so on, and all those things have played a part. The PSNI and, more widely, the Executive and the UK Government are working with social media companies, and people should be cautious and aware of these things. That kind of activity on social media does not help anybody, and the social and digital media companies have a part to play in helping to ensure that such messaging does not spread and risk more violence anywhere on the streets of the United Kingdom.
The Secretary of State indicated that there was widespread condemnation of the violence of the past week or so, and he is right. That was not always the case, but thankfully it is now. Two outstanding problems need to be resolved with the utmost urgency. One is the Northern Ireland protocol, which he alluded to, and the other is the position of the Chief Constable. Will the Secretary of State recommit himself to ensuring that those two obstacles to progress can be dealt with in a satisfactory way, so as to take us forward peacefully and democratically?
As I have outlined this afternoon and previously in the House, we have a clear focus on the work to move things forward on the protocol in a pragmatic and flexible way, so that it works and delivers for people in Northern Ireland, without hindrance or problem. The entire focus of the Chief Constable is on the safety and security of people in Northern Ireland, and I support him in that work.
I am of the generation that remembers what discord in Ireland meant for people here on the mainland. I remember my mum being scared to go to work in London because of the bombs that were going off. Scared to go to work in London! What would the Secretary of State say today to those like my mum who would not understand how the Government have allowed the current situation to arise?
As the hon. Gentleman will know, sadly and inexcusably we have seen pockets of violence across the UK over the last few months, in London, Bristol and elsewhere. None of that is acceptable, and we should see none of it. We should all be working, wherever we are in the UK, to support the local police and communities to bring an end to such things and return to calm and proper dialogue. I caution the hon. Gentleman against comparing what we saw the other week with what was seen some decades ago. Nobody should return to that, and the people of Northern Ireland deserve better. That is not what we saw last week, and it is not what anybody wants to return to in the future. We all have a job to ensure that the calmness that is there now remains, and that we work together with a proper, democratic dialogue.
It is a denial, Sir, not to acknowledge the consequences of decisions taken by those on both Front Benches, and imposed on Northern Ireland, which have caused seismic societal, economic and community breakdown. That is the Northern Ireland protocol, and we are witnessing that breakdown today. I condemn the violence, but all the condemnation in the world will not make the violence go away if action is not taken. The cause is not covid-19. Seriously? The cause is not Bobby Storey’s funeral, although that was the straw that broke the camel’s back. The Secretary of State knows that the protocol lies at the heart of this, because the identity of Ulster is at stake as a result of the protocol. I fear a continuing downward spiral unless the Secretary of State takes action, and the key action he can take is to invoke article 16, take control of the situation, and address—[Inaudible.]
Sorry Ian, but I think we got the gist of the point you are making.
Yes, I understand the point the hon. Gentleman was making. He referenced a few of the things I outlined in my opening remarks about the challenges, the straw that broke the camel’s back and the issues around the protocol earlier this year. That is why we took unilateral action a few weeks ago, which he supported. We have been clear that we will take the action needed to make sure this works for Northern Ireland. Our focus is on working through the proper channels with our friends and partners in the EU to get an agreeable solution that works for those EU friends and partners we trade with as well as people across the United Kingdom, and enables the GB-NI trade that we all want to take place.
As the hon. Member for North Antrim (Ian Paisley) said, the protocol is at the heart of this issue. The Secretary of State knows that there were only three options: all-UK alignment with the customs union and the single market, a land border between north and south, or a border in the Irish sea. The Prime Minister chose the sea border, but then he promised that it would not involve the checks that he signed up to in the protocol. I think he either did not understand the agreement he signed, or did not care about telling the truth. Which was it?
Given that this was outlined earlier today, it is interesting that Opposition Members continue to want to talk about nothing else but leaving the EU. I think that highlights their lack of connection with people who want to move forward As we have said, we want to make sure that the arrangements work for the people of Northern Ireland. It is clear—it is one of the things the Prime Minister has consistently outlined—that the protocol is there for the unique circumstances of Northern Ireland. It is there because it recognises that the EU wants to protect its single market. We respect that position. That is about protecting the EU goods from goods that move through Northern Ireland and into the Republic of Ireland, and therefore the EU. We are determined to deliver on all strands of the Good Friday agreement, not just one of them, and that means recognising, as the protocol itself says, that not only will it not disrupt the everyday lives of people and communities, but respect and recognise the integrity of the market of the United Kingdom. Northern Ireland is an integral and fixed part of the United Kingdom customs territory. We are determined to ensure that it remains so and to get trade flows moving freely. We recognise the EU’s desire to make sure that goods moving into the EU via the Republic of Ireland are properly dealt with, but that is very different from the challenges we are seeing for all the goods moving from Great Britain to Northern Ireland. We have been clear that we will fix that.
The wholly unacceptable disorder was in part driven by the non-tariff barriers on exports from Great Britain to Northern Ireland. I understand the Government are planning the full implementation of border checks on imports from the European Union from October. Will that include non-tariff barriers on exports from Northern Ireland to Great Britain?
The hon. Gentleman could look at the legislation we passed last year that ensures that Northern Ireland businesses have unfettered access to markets in the rest of the UK. We legislated for that, we have delivered on that, and we will continue to work to ensure equally flexible and free flow of trade from GB to NI, as I have outlined this afternoon.
I thank and agree with the Secretary of State. We all agree that violence is unjustified and unjustifiable. It will break lives and homes, but it will not fix the problems. Democratic politics is the only solution, and politics must be seen to work. The overwhelming majority of good, law-abiding folks in Northern Ireland will never pick up a stone or throw a petrol bomb. We support the police and the rule of law However, the Northern Ireland protocol has disrupted business and has created problems on the streets. People are dismayed, there is anger and the frustration is boiling over. Some of them feel they are—indeed, we probably all feel we are—second-class citizens. At the same time, 2,000 people attended the Bobby Storey funeral; we buried my mother-in-law last October, with 25 at the funeral. Will the Secretary of State join me in rejecting two-tier policing where there is one rule for us, but another rule for Sinn Féin, and will he recognise that the flawed Northern Ireland protocol is disrupting peace, rather than cementing stability?
I agree in large part with what the hon. Gentleman has said. It is why it is important for us to be working to find solutions for the impact of the outworking of the protocol on the ground and—he is absolutely right, and I absolutely understand this—the impact on people’s sense of identity. I welcome his condemnation of the violence we saw the other week On policing, it is important that people are clear that the PSNI’s work is to be there to support, keep safe and protect people of all communities on an equal basis. People need to have trust and faith in that, and I know the PSNI is focused on looking at what it can do to make sure it is delivering it. It is simply unacceptable, particularly with such a set of regulations, that any one community should be in a position where it believes it can see there has been a difference in treatment from one part of the community to another, especially with something so sensitive as family funerals over the last year or so. I absolutely understand people’s frustration, and I know the PSNI does as well. It is working to ensure that people are clear and can have confidence and trust that it is there to work for people across the whole community of Northern Ireland—equally, fairly and properly—to keep us all safe.
I thank the Secretary of State for his statement and for responding to 31 questions in just over an hour. We are going to suspend now for three minutes for cleaning the Dispatch Boxes, so that after the ten-minute rule Bill we can go straight into the Finance (No.2) Bill.
I beg to move, That leave be given to bring in a Bill to provide that the Mayor of London may not impose charges for driving in Outer London; and for connected purposes The Mayor of London’s financial stability plan, published in January, proposes a seven-days-a-week charge of £3.50 for all motorists using a vehicle registered outside Greater London, rising to £5.50 for the more polluting vehicles. Sadiq Khan is looking at building a literal financial wall between London and its neighbours. The proposal would divide communities and set Londoners against all others. It is quite literally a border tax. The Mayor of London’s proposal to charge drivers to enter Greater London would have a catastrophic impact on places like Dartford and all the areas surrounding London. It would also have a detrimental impact on outer London boroughs. Businesses located in outer London would suffer from people being reluctant to travel often the short distance across the border to use those businesses. That would have an impact on dry cleaners, pubs, takeaways, shops, hairdressers and more—exactly the businesses who are suffering the most from the coronavirus epidemic The Mayor of London claims this is necessary to offset the £500 million of road tax Londoners pay out each year and cannot keep, but no other area gets to keep the road tax that they pay, either—Dartford does not even get to keep the revenue from the Dartford crossing. Although it is true that Highways England does not own a great number of roads in London, it does not have many roads in other areas either; London is not alone in that respect. Londoners do drive on motorways and those motorways have to be paid for The Mayor of London claims that Transport for London has not had enough in subsidies. Even if you accept that argument—which I do not—the proposal for a border tax is completely the wrong approach. It is divisive, punitive and aggressive. It is as if the Mayor of London is saying, “Give us more money or look what I can do. I can ruin you. I can hit you financially and make you pay if I don’t get my way.” That is effectively what he is saying. This proposal sends out the clear message that, far from London being open, as the Mayor claims, it will be very much closed for motorists trying to enter the capital Every mayor around the country is trying to raise revenue. That is perfectly understandable but it should not be attempted on the back of blackmail that says, “Give me money or I will charge you to visit your loved ones. Give me money or I will charge you for dropping off relatives to the local railway station. I will charge you for using London’s small businesses. I will charge you just for driving out of your road.” That is not commendable; it is an abuse of power The Mayor said that the proposed charge will reduce pollution in the capital. This proposal has nothing whatsoever to do with pollution. Pollution in London is at its worst around the airports and in central London. It is not concentrated in outer London, so I do not understand why the Mayor of London seems to hate outer London so much. The border around London is not neat. It does not run along major routes. Instead, it straddles residential roads. In Dartford, for example, we have residential roads that are based in Kent that people cannot leave without entering the London Borough of Bexley. We have a number of roads just like that, and we have roads where the border literally goes down the middle of them, so people leave the road in Kent and re-enter it in London. Many of my constituents would therefore face having to pay at least £3.50 a day just to drive out of their road. This proposal is for the charge to apply seven days a week, so that hundreds of my constituents and thousands of people around London would pay over £1,200 a year just to be able to drive each day out of the road where they live—£1,200 a year just to get out of their house. For thousands of others, it would mean a £3.50 charge just to visit loved ones, to drop a child off at school, to visit a hospital or to go to work So many frontline workers in London live in neighbouring counties. These are the people who keep London functioning. Over half of London’s police officers live outside the capital and the same applies to London firefighters. These people, whom Londoners rely on most, will be hardest hit by this proposal. They will be hit just for going to work Possibly the worst aspect of this whole proposal is that the Mayor wants to levy a charge on people to whom he is totally unaccountable. The people who would have to pay the daily charge cannot vote for the London Mayor. They cannot vote to remove Sadiq Khan or do anything to stop this charge; he knows it, and that is why he is targeting them. It is taxation without representation, taxation without accountability, and it needs to be stopped Dartford is not part of London. We are proud of our Kentish heritage, yet many people who are now Dartfordians used to live in London. Many Londoners move out to neighbouring counties. Many of us commute into London. There is a good relationship right now between London and the neighbouring counties, yet the Mayor of London wants to change all that. He wants to set London against its neighbours, but in doing so, he damages not just people who live outside London, but people who live inside London. It is no wonder that YouGov recently found that the majority of Londoners oppose this charge It is claimed that opposition to the proposal is timed to marry up with the London mayoral elections. Actually, the timing is completely down to the Mayor of London. He decided when to announce the proposal, he is responsible for the timing and he published the document setting it out just three months ago, so it is hardly surprising that we are having this debate at this time If the proposal goes ahead, it will have the most profound impact on Dartford and the other constituencies bordering London that we have ever seen. The decision will be taken by somebody over whom Dartfordians have absolutely no control. It is the most divisive issue ever conceived by a London Mayor and it needs to be stopped.
I have had no indication that anybody intends to oppose the 10-minute rule motion and I see none, so I intend to pose the question Question put and agreed to. Ordered, That Gareth Johnson, Henry Smith, Sir Roger Gale, Gareth Bacon, Bob Blackman, Kelly Tolhurst, Damian Green, Gordon Henderson, Craig Mackinlay, Dean Russell and Felicity Buchan present the Bill Gareth Johnson accordingly presented the Bill Bill read the First time; to be read a Second time tomorrow, and to be printed (Bill 283).
I inform the House that Mr Speaker has selected the reasoned amendment in the name of the Leader of the Opposition, and I will call James Murray to move the reasoned amendment when he comes to speak immediately after the Minister. I now call the Minister, Jesse Norman.
I beg to move, That the Bill be now read a Second time As you will be aware, Mr Deputy Speaker, the scrutiny of Finance Bills has lain at the centre of our parliamentary process for many centuries, ever since its origins in the 13th century, and it is a rare honour for me to bring this Bill forward today At the beginning of last month, my right hon. Friend the Chancellor of the Exchequer outlined a Budget with three key objectives: first, to protect jobs and livelihoods and provide additional support to get the British people and British businesses through the pandemic; secondly, to be clear about the need to fix the public finances once we are on the way to recovery and to start that work; thirdly, as we emerge from the pandemic, to lay the groundwork for a robust and resilient future economy. This Finance Bill enacts changes to taxation that support all those objectives I will come to the Bill itself shortly, but before I do so I want to pay tribute again to the work of the Treasury and Her Majesty’s Revenue and Customs over the past year and more. I can testify from personal experience that officials have worked around the clock throughout that period to get the covid schemes up and running, to make sure that they are as effective as possible, to tweak and extend them where they can and, by those means, to support millions of people and hundreds of thousands of businesses up and down the United Kingdom in the face of the worst peacetime economic crisis in recorded history. I will not say that this was their finest hour; they will have had many of those, as these are institutions that are arguably nigh on 500 years old. None the less, this has certainly been a time to which future historians will look back when they seek examples of exemplary public service It has been a privilege to work alongside officials at both Her Majesty’s Treasury and Her Majesty’s Revenue and Customs, and to see the great machinery of government working so well. I will, if I may, add one other word of scene-setting about the wider approach that we have taken to tax. It is a measure of the approach taken by the Treasury and HMRC and of our own strategic approach as a Government that, alongside these pandemic measures, we have also accelerated work to create a more effective and resilient tax system. Our goal, in simple terms, is to enhance the stability and effectiveness of the UK tax system, using last year’s announcement of a new 10-year tax administration strategy as the springboard We want a tax system that enhances productivity, especially across the long tail of our small and medium-sized businesses. Digitisation of the tax system provides a useful nudge to these firms to upgrade their use of information technology and the skills that it demands. We want a tax system that is more flexible, so that it is better able to adapt quickly to changing circumstances and to provide targeted support for businesses and individuals when needed. We want a tax system that is more resilient—both resilient itself and better equipped to strengthen the core resilience of the UK economy in the face of a future crisis. That transformation of our tax system is already under way, but, as the House will know, we have also taken steps to improve the process of tax policy development, most recently with the tax policies and consultations day we held on 23 March. By giving this wide array of consultations more profile, we hope to make the tax policy process still more collaborative and transparent and improve the quality of tax policy making Let me turn to the Bill. The House is well aware of the massive public health and economic shock that this country has experienced. The damage done by coronavirus to our economy and our society has been severe. More than 700,000 people have lost their jobs since March last year. The economy has shrunk by 10%, the largest fall in more than 300 years, and this country’s borrowing is the highest it has ever been outside wartime The Government’s response has been comprehensive and sustained, with the total package of support to the economy this year and next now estimated at £407 billion. That response is already showing its value. Thanks to that and to the rapid roll-out of vaccination, the Office for Budget Responsibility and other independent authorities now expect a swifter recovery than previously anticipated, with faster growth, lower unemployment, more investment and higher household incomes. Indeed, the OBR expects the UK economy to recover to its pre-crisis levels six months earlier than it did—in the second rather than the fourth quarter of 2022. In the words of the Resolution Foundation, if realised, this projected rate of unemployment, “would be by far the lowest unemployment peak in any recent recession, despite this being the deepest downturn for 300 years.” At the heart of our covid response is precisely that support for jobs, delivered through Her Majesty’s Revenue and Customs as the tax authority, with more than 11 million jobs furloughed between the beginning of the pandemic in March last year and February of this year. As the OBR outlined last month, without the additional measures at Budget, which included the extension of the coronavirus job retention scheme, unemployment would have peaked two quarters earlier and at a higher level. Indeed, it estimates that there would have been an additional 300,000 unemployed people in the fourth quarter of this year without these latest interventions The tax measures outlined in the Bill go further now to protect jobs and support the economy. We are extending the 5% reduced VAT rate until 30 September in order to protect 150,000 hard-hit hospitality and tourism businesses, which employ almost 2.5 million people. To help those businesses manage the transition back to the standard rate, VAT will then increase to an interim rate of 12.5% from October until the end of March For similar reasons, the Bill puts into legislation the temporary cut in stamp duty land tax with a residential SDLT nil rate band remaining at £500,000 in England and Northern Ireland until the end of June. This, again, will be followed by a phased transition back to the normal rate. From 1 July 2021, it will fall to £250,000 until the end of September, before returning to £125,000 on 1 October. For any business that took advantage of the original VAT deferral new payments scheme, the Bill ensures that they will be able to pay that deferred VAT in up to 11 equal payments from March 2021, rather than by one larger payment due by 31 March 2021. For those businesses that have been pushed into losses, the trading loss carry-back rule is being extended from the existing one year to three years for losses of up to £2 million, which will deliver a significant cash-flow benefit for businesses As well as protecting jobs and livelihoods, the Bill takes important steps to strengthen the public finances. The damage done by coronavirus and the urgent need to respond to the crisis have created huge challenges for the Exchequer. The OBR’s fiscal forecasts show that this year the UK is expected to borrow a record amount: £355 billion. That is 17% of our national income—the highest level of borrowing since world war two. Borrowing is forecast to be £234 billion next year, which is 10.3% of GDP—an amount so large that it has only one rival in recent history, which is the level of borrowing this year It is our responsibility as a Government to balance the extraordinary support we are providing to the economy now with the need to start to fix the public finances, and the Bill strikes that balance First, the income tax personal allowance rises with the consumer prices index as planned to £12,570 from this month and will then be maintained at this level until April 2026. The House will recall that the UK has the highest basic personal tax allowance of any G20 country. A typical basic rate taxpayer now pays over £1,200 less in tax than in 2010. The higher rate threshold also rises to £50,270 from this month and will then be maintained at this level until April 2026. These changes are fair and progressive. It is important to note that the 20% highest income households will contribute 15 times that of the 20% lowest income households. An average basic rate taxpayer will be less than a pound a week worse off in 2022-23 Secondly, the inheritance tax thresholds, the pensions lifetime allowance and the annual exempt amount in capital gains tax will also be maintained at their 2020-21 levels until April 2026. Maintaining the pensions lifetime allowance at current levels affects only those with the largest pensions—those worth more than £1 million Thirdly, the Government are providing businesses with over £100 billion of support to get through this pandemic, so our judgment has been that it is only fair to ask them to contribute to this overall recovery. The Bill therefore legislates for the rate of corporation tax paid on company profits to increase to 25% from 2023. Since corporation tax is charged only on company profits, businesses that may be struggling will, by definition, be unaffected The Government are also protecting small businesses with profits of £50,000 or less by creating a small profits rate, maintained at the current rate of 19%. The effect of this is that 70% of companies, or 1.4 million businesses, will not see an increase in their tax rate. There is also a taper above £50,000 so that only businesses with profits of a quarter of a million pounds or greater will be taxed at the full 25% rate—and that is itself still the lowest corporation tax rate in the G7. The increase is two years away, well after the point when the OBR expects the economy to have recovered, but it is important to legislate for this now in order to give businesses clarity about our future plans. The next goal of this Budget has been to lay the foundations of our future economy as we emerge from the pandemic. If that economy is to support the creation of new jobs, to spur growth and to drive productivity forward, we need to encourage business investment now, so this Bill contains a highly innovative new super deduction measure, which is expected to lift the net present value of the UK’s plant and machinery allowances from 30th among the countries of the OECD to first In most cases, this measure will allow companies to reduce their taxable profits by 130% of the cost of investment they make, equivalent to a tax cut of up to 25p for every pound they invest. The super deduction is expected to be worth £25 billion during the two years it is in place, which would make it the biggest business tax cut in modern British history. The OBR has said that, at its peak in the financial year 2022-23, the super deduction is expected to bring forward an additional 10% of business investment, with a value of £20 billion Alongside a programme of national recovery, we also want to stimulate regional recovery. That is why this Bill also enables the Government to designate tax sites for freeports in Great Britain. Once approved, eligible businesses will be able to benefit from a number of tax reliefs, including an enhanced 10% rate of structures and buildings allowance, an enhanced capital allowance of 100% for companies investing in plant and machinery, and full relief from stamp duty land tax on the purchase of land or property—and to help them to invest and grow, the Bill maintains the annual investment allowance at the higher level of £1 million until the end of this year The House will also recall that these measures are supplemented by the Budget’s new Help to Grow: Digital scheme, which will assist smaller businesses in developing their digital skills by giving them free expert training and a 50% discount on new productivity-enhancing software. This is all part of a package that the Institute of Directors has called “a big win for SMEs.”
It is significant that no freeport sites have been allocated in Northern Ireland. Will the Minister clarify whether all the measures that will be included in freeport status will be exempt from the state aid rules, which will still apply in Northern Ireland because of our association with the EU single market rules?
I am grateful to the right hon. Gentleman for his question. He will know that it is absolutely the Government’s intention to have a freeport in Northern Ireland, and that they are in discussion with officials and members of the Northern Ireland Executive to discuss precisely how it will work. I am not in a position to comment on how it will work, but certainly the expectation is that this should be a functioning, highly successful and effective freeport. It should enjoy a very attractive set of benefits that will benefit the companies involved and be comparable to the ones we will see elsewhere, although it is important to note that freeports are themselves a mixed bag. We have had a variety of different bids of different kinds to the competition that has been run All the measures we have taken in relation to business growth and investment are part of a package, which the Institute of Directors has called “a big win for SMEs.” I was also pleased to see that the Resolution Foundation said that the Budget “rightly sought to boost the recovery before turning to fixing the public finances” That is an important point I have discussed the work we are doing to create a more flexible and resilient tax system, but the Finance Bill also includes important measures to make it fairer and more sustainable. As part of the United Kingdom’s commitment to be a global leader on tax transparency, the Bill allows for the implementation of OECD reporting rules for digital platforms. The rules will help taxpayers in the sharing and gig economies to get their tax right. It will also help HMRC to detect and to tackle non-compliance To build on the successful introduction of Making Tax Digital for VAT, the Bill will enable the extension of MTD requirements for smaller VAT businesses from April next year. It also makes widely welcomed reforms to the penalty regime for VAT and income tax self-assessment, so that it is fairer and more consistent as a system, and harmonises interest for VAT and income tax The Bill tackles promoters of tax avoidance through strengthening existing anti-avoidance regimes and tightening rules. Importantly, it introduces an exemption from income tax for financial support payments for potential victims of modern slavery and human trafficking, made by the UK Government and devolved Administrations Finally, let me turn briefly to how the Bill helps us to deliver the important commitments the Government have made on the environment and on carbon reduction. The new plastic packaging tax, first announced at Budget 2018, will encourage the use of recycled plastic instead of new plastic in packaging. For plastic packaging that contains less than 30% recycled plastic content, the rate of the tax will be £200 per tonne. This will transform the economics of sustainable packaging The last 12 months have delivered a grave shock to this country and its economy, but the Government have met that shock with a determined and sustained response. That work is not done. With this Finance Bill, we are continuing to support the lives and livelihoods of families and businesses up and down the land, while simultaneously setting the terms for an investment-led recovery. The Bill puts in place the foundations for a fairer and more sustainable tax system. It further enshrines commitments on the environment and the work we are doing to tackle climate change, and it begins the work to rebuild the public finances. For those reasons and more, I commend it to the House.
I beg to move, That this House declines to give a Second Reading to the Finance (No. 2) Bill because it derives from a Budget that failed to guarantee a pay rise for NHS workers after their unparalleled service over the last year; because it undermines the country’s economic recovery, targeting household finances by freezing income tax allowances before increasing the rate of corporation tax; because it does nothing to mitigate the effect on family finances of the sharp council tax rise in April; because it contains measures connected with a cut to social security later in the year; and because it fails to set out the ambitious plan for jobs and growth that is needed to help the country emerge strongly from the worst economic crisis of any major economy May I start by extending my deepest sympathies to Her Majesty the Queen and the royal family at this sad time? His Royal Highness the Duke of Edinburgh devoted his life to public service and, crucially, to his role as a supportive husband. My thoughts are particularly with the Queen as she mourns the loss of someone who has been at her side, or just behind her, for 73 years As this is my first time physically in the Chamber for well over a year, I would also like to put on record my thanks to Mr Speaker, the Deputy Speakers and the Speaker’s Office for doing so much to help all Members, particularly those of us like me with relevant medical circumstances, to take part virtually throughout the pandemic. Now, having recently had my second jab and having spoken to my doctor, I am glad to be here in person to speak today to this important Bill Like millions of others in this country, I feel so grateful to be benefiting from the brilliance of our NHS and GP staff, scientists, lab technicians, nurses and volunteers, but we know that the health crisis of covid-19 is very far from over and that the harm to jobs and the economy resulting from the outbreak is even further from being over. On the Chancellor’s watch, our country is enduring the worst economic crisis of any major economy, yet in his and the Government’s plan we lack the ambitious, confident modern approach we need to emerge from this crisis stronger The Budget in March and this Finance Bill should have been an opportunity to pull out all the stops to get the economy going. The Chancellor should have focused resolutely on supporting families, securing jobs and backing small businesses. The Government should have used this opportunity to make sure we invest in solutions to the problems that we have struggled with as a country for so long, from social care to the climate emergency and the housing crisis There are many missed opportunities in this Bill and the recent Budget to take on some of the big challenges to which our country is begging for a solution. Take high streets, for example. We are all acutely aware of the severe difficulties that high streets are facing because of covid and how well online delivery-based businesses have done during lockdown. We know that for years, high street businesses have struggled with business rates, while tech giants have paid very little tax by comparison, and we know that the outbreak has made that imbalance far worse. Now should have been the time to at the very least level the tax playing field for high street businesses and online firms, yet there was nothing on that in this Budget, no decisions were taken on the Government’s new tax day, and the Finance Bill is silent on this crucially important issue. That is just one example of how the Government have missed opportunities to support and shape our country for the better Instead, so much of what the Government have done will make the problems we face worse. This Government have the wrong priorities and the wrong values, and their Ministers are following failed approaches from the past that now lack much, if any, of the wider support they may once have claimed for them.
I agree with the hon. Gentleman that we need to level the playing field between high street businesses and online businesses. That is a very tricky thing to do, particularly when talking about business rates. What is his solution to that?
I am very glad to have the hon. Gentleman’s support for our push for a solution. As he knows, the Government have been promising for some time to come forward with proposals on business rates, but we have nothing. We had the new tax day, when we were supposed to hear lots of announcements—nothing. We want to see something to help high streets, and we have not had anything. We need the Government to step up and offer a solution to the problem, which has bedevilled high streets for so long.
rose—
I will make a bit of progress High streets are just one example of how the Government have missed those opportunities. Ministers have shown that they simply do not have it within themselves to offer solutions to the challenge we face First and most immediately, the Government are taking money from people’s pockets. Families in all their many forms are the target of tax rises from this Government. People will suffer and our economy will stall if families see money taken from them when they need it most. It is unfair and economically illiterate, yet it is exactly what this Government are doing. Half the country will pay more next year, thanks to the provisions in this Bill to freeze income tax personal allowances At the same time, the Bill does nothing to stop the sharp council tax rise that the Government are forcing councils to implement right now. It supports the Chancellor’s plan to cut £20 a week from social security this autumn for some of those who need that help most. It tells us everything we need to know about the Government’s priorities: they raise taxes and cut help for families immediately and without a second thought, years before an increase in corporation tax. At the same time, they are letting some of the world’s biggest companies stop paying tax altogether If that was not bad enough, the Government are also choosing in this year of all years to take money from the pockets of NHS workers. We now know how hollow those claps on the doorsteps of No. 10 and No. 11 must have echoed around Downing Street. The Government are cutting NHS workers’ pay. Ministers are breaking their promises, and the Conservatives are showing how little they have learned from the awful experience of the last year If we add that NHS workers’ pay cut to the personal allowance freeze, the council tax hike and the cut to universal credit, the scale of the impact of the Government’s decisions becomes clear. To give an example, a newly qualified nurse living with their partner and two children in rented accommodation will lose more than £1,100 a year. Rather than supporting families out of this crisis, the Government are prioritising tax breaks for tech giants That tax break is being handed to big businesses through the so-called super deduction—the £25 billion tax break for companies that the Chancellor and the Minister say represents “the biggest two-year business tax cut in modern British history”, and that forms our second key concern about this Bill. As the chief executive of the Resolution Foundation has made clear, investment incentives have been abused for tax avoidance purposes in the past, yet the Government have failed to say or do anything to address widespread concerns that the super deduction is open to fraud and abuse. Economists from the Institute for Fiscal Studies have said that the super deduction will “create a risk of tax avoidance and even potentially fraud as companies essentially try to find ways to dress things up as plant and machinery investment”, yet the Chancellor has done nothing to counter suggestions from industry consultants that the deduction could be used for luxury items, including jacuzzis The Government have also failed to address environmental concerns. With the deduction giving firms an incentive to buy new rather than existing assets, the Exchequer Secretary to the Treasury was recently unable to guarantee that the super deduction would be used to support green development. The Chancellor himself has seemed confused about the overall impact of the deduction, recently claiming that, as well as bringing investment forward, “it will also increase the amount of investment”.—[Official Report, 9 March 2021; Vol. 690, c. 641.] That claim comes despite the Office for Budget Responsibility revealing a week earlier that cumulative business investment over the next five years will be £8 billion lower following the Chancellor’s announcement of his new scheme than had been projected before Particularly with a tax cut of this size, it is crucial that we understand who it is helping and what it will achieve. The truth is, as we know, that companies can already benefit from the annual investment allowance, a 100% tax break on investment up to £1 million, which the Bill extends to the end of this year. The Treasury Committee concluded in its report “Tax after coronavirus” that the annual investment allowance “appears well targeted to promote growth in small and medium-sized enterprises.” With the existing allowance apparently well targeted at the growth of small and medium-sized businesses, and with such businesses standing to benefit only marginally from the new super deduction, we are left with an inescapable conclusion: the main beneficiaries of the Chancellor’s new scheme will be the big firms that need help least. No wonder TaxWatch has nicknamed this the “Amazon tax cut”—a giveaway from the Chancellor that could wipe out Amazon UK’s tax bill entirely.
I am grateful to my hon. Friend for talking about what has been identified as an Amazon tax cut. Has he noticed—and I get the impression from his contribution that he has—that most of the firms that will benefit from this are foreign-owned large tech firms that are not British, and most of the firms that will not benefit are the smaller British firms that will feel the wrong end of the Government’s policies? Does he not find it rather ironic that the Conservatives, who wrap themselves in the flag, are actually being entirely un-British and damaging British interests? They claim to be patriotic, but they are doing exactly the opposite.
My hon. Friend makes a very important point and exposes again the hypocrisy in the Government’s approach. The fact is that, rather than helping families get through the tough times ahead, this Government are delivering a tax break for tech giants. We know that Amazon workers have provided vital deliveries to millions of people across the country during lockdown. They need their rights at work to be protected and strengthened, and we all want that company to pay its fair share of tax. I see no one calling for a tax break for Amazon, yet that is exactly what this Government are providing. The Government would do well to learn from the new Biden Administration’s approach. The US Secretary of State has said that, rather than compete on lowering tax rates for corporations, the United States will focus on its “ability to produce talented workers, cutting-edge research and state-of-the-art infrastructure” The new President has also been leading a drive to put in place a global minimum corporate tax rate. A spokesperson for the Treasury here has indicated that the UK might back those plans. Taken along with the Chancellor’s decision to raise corporation tax to 25%, this seems to be an admission by the Government that the last decade of Conservative corporate tax policy making has been totally wrong-headed. If that is the case, we welcome the Government’s admission, and it is vital that the UK plays a leading role in developing and implementing the proposals that President Biden is backing. We have not yet heard from Ministers on this matter in Parliament, however, so I urge the Exchequer Secretary to use her closing speech today as an opportunity to confirm to the House that she and the Chancellor back plans for a global minimum corporate tax rate and that they will do all they can to make this a reality While the initiative on international tax is being led by those overseas, closer to home the offer from this Chancellor of such a large tax break to companies will, of course, make people wonder what processes will be in place to prevent Ministers from intervening improperly on behalf of commercial interests in how decisions are made. The Chancellor is still refusing to properly account for his role in the Greensill scandal. To ensure public confidence in who will benefit from this £25 billion tax break, we strongly urge the Exchequer Secretary to today set out what new safeguards will be put in place to make sure that public money is not misused.
Before the debate, I spoke to the shadow Minister about insurance companies. It has come to my attention that some insurance companies are unfairly using business interruption insurance premiums to punish businesses that had the foresight to take out said insurance before the pandemic. Insurance premiums are being increased dramatically. Does the shadow Minister agree that when it comes to supporting small and medium-sized businesses, we need to close the loopholes that insurance companies are notorious for using and ensure that the spirit is legislated for? Perhaps—just perhaps—this Bill might be the way to do that.
The hon. Gentleman is right to draw attention to the fact that the Bill does everything for the big businesses that need the help most but does not do what is necessary to protect small and medium-sized businesses. I am sure that the Ministers present heard his points, and I hope that the Exchequer Secretary will respond to them in her closing speech. Aside from all the concerns about the super deduction—from its potential for fraud, abuse and misuse to the fact that it offers to wipe out Amazon’s UK tax bill—the fact that the Government’s only national policy for growth and investment relies almost entirely on this tax break brings us to our third key concern about the Bill and the profound lack of ambition in the Government’s approach. There is simply no plan from the Government to make sure that we invest in what is needed for the future. The Bill follows a Budget of cuts. The OBR has confirmed that the Government will cut departmental resource spending plans by £15 billion a year from 2022-23 onward, and rather than bringing forward capital spending to invest in the green recovery that we need now, the Government have cut capital plans for this year by half a billion pounds Far from charting a course for the future, the Bill lacks any mention of a plan to tackle the big problems that we have faced in this country for a decade or more and that have in so many cases been brought into sharp focus by the covid outbreak. It is clear that over the past decade under this Government, our country’s social care system has been underfunded, with its workers chronically underpaid. Our country’s response to climate change has stubbornly lacked the urgency, ambition and scale that it needs. Our country’s answer to the housing crisis has been left to developers and speculators, leaving an entire generation let down and left behind. Investing in better social care, new green infrastructure and the council housing that we need would create jobs, improve lives and finally start to tackle the problems that our country needs to resolve The Conservatives have had more than 10 years to stand up to the challenges I have outlined, yet they have failed to do so. With the recent Budget and this Bill, they have proved themselves again unable or unwilling to do so. The Government’s whole approach is being exposed as one of failure rooted in the past and an inability to rise to the future. In fact, Conservative Ministers are continuing on the course that began in 2010—one that brought us a decade in which UK growth was below the average of all major economies and business investment fell to the lowest rate in the G7 Our country’s economy will be £300 billion smaller in 2026 than was forecast at the start of the previous decade. At times during that decade, Ministers may have benefited from some international cover for their misguided and harmful choice of cuts rather than investing in growth in response to the financial crisis, but no more: a new international consensus has rapidly been gaining strength. As the International Monetary Fund’s head of fiscal policy said, our Government and others should use fiscal policy to beat covid and to stimulate our economies by reducing unemployment and restoring economic growth. That focus on growth, investment and jobs is at the heart of the approach set out by the shadow Chancellor, my hon. Friend the Member for Oxford East (Anneliese Dodds). Our framework will meet the challenges of our times—it is a responsible approach in which a balanced current budget over the economic cycle would never prevent us from protecting people and businesses during a crisis or making critical investments in our future As the Bill progresses through the House, we will look at the detail in respect of the points I have outlined so far, as well as on other measures in the Bill such as those relating to freeports. We want to see good jobs and economic growth in every part of the country, irrespective of whether an area has a freeport. We need long-term, locally led investment in every region and nation, and freeports will in no way compensate for Ministers’ inexplicable decision to scrap their industrial strategy and disband their industrial council just when we need a long-term plan to support our critical industries. Furthermore, with freeports elsewhere in the world having become magnets for organised crime, tax evasion and smuggling, we fear that at a time when HMRC is already overstretched Britain is not well placed to manage such risks In Committee, we will challenge the Government over their approach to tax avoidance and tax evasion more widely, following up our long-standing concerns that Treasury Ministers continue to drag their feet on tackling these problems. Although the Bill contains measures to tackle the promoters of tax avoidance and change the system of penalties, there is a clear sense that those measures are extremely limited in scope, rather than the comprehensive action that we need. Indeed, those changes are not even included in the Budget report costings, suggesting that their financial impact must be minimal We will use the next stage of consideration of the Bill to go through the detail of the measures it contains that seek to address the problem of plastic pollution and to increase the use of recycled content. The principle of a plastic packaging tax is one that we support, and because we want it to be as effective as possible we will ask Ministers to consider the detail of its operation in Committee. Overall, however, we cannot support this Finance Bill. The Bill, and the Budget that it follows, should have seized the opportunity to help people who are struggling now; to invest in good new jobs in every part of the country; and to be ambitious in finally getting to grips with social care, housing and other challenges that our country has faced for so long without solving. In fact, rather than supporting families out of this crisis and setting an ambitious plan for the future, the Government are prioritising tax breaks for tech giants If this Bill had been presented by Conservative Ministers 10 years ago, it would have been the wrong solution then; a decade later, their approach has not changed but the rest of the world has moved on. No longer will they find allies for their approach in international institutions, and the politics of the United States shows that the consensus around the world is shifting. The Government are out of step with economic reality. They are taking decisions that will push up taxes for people across our country while helping Amazon to reduce its tax bill. They are choosing to cut NHS workers’ pay while failing to fix our system of social care, and they are deciding to continue a decade of cuts to public services when we urgently need to invest in the future.
Will the hon. Gentleman give way?
I have only a few moments. The hon. Gentleman may speak later We will vote for our amendment and against the Bill, to make it clear to people in our country that we understand that people need to be spared the Bill’s tax rises; that Amazon does not need any favours; that NHS workers deserve our support, that we need good new jobs in every region in the nation; that the economy will grow only through responsible investment; and that we need to fix social care, the climate emergency and the housing crisis. Above all, people in our country need a Government who are on their side, and it is absolutely clear from the choices that the Bill and their Budget make, and the problems that they choose to ignore, that this Government fail that test.
We now go to the Chair of the Treasury Committee, Mel Stride.
I shall speak in support of Second Reading The opening remarks by my right hon. Friend the Financial Secretary to the Treasury were extremely well made. He pointed out the huge challenges that we face as a country due to the economic crisis and the worst drop in GDP for 300 years, but he also rightly spoke of the extraordinary work that the Treasury and HMRC have carried out over the past 12 months to ensure that, at pace, we have had bold initiatives that have supported the economy, not least the labour force. I know, having held his position for about the same time as he has held his position, just how high-quality those people are and how hard and imaginatively they will have worked over the previous months My right hon. Friend was right also to draw the attention of the House to the improved outlook across the various forecasts. I think he mentioned the OBR, but he could equally have mentioned the IMF, whose recent forecasts for the UK economy point to a lower peak in unemployment than was feared at the start of the crisis. All of that is due, not just to the work that has been done to roll out the vaccine, but to the support packages that the Government have provided. I am not saying that everything has been perfect, but overall I think the effort has been pretty impressive The Bill is one step in an important journey to restore the health of the public finances. My right hon. Friend did not tell the House, because it is not his role to frighten the horses, what the consequence would be if we did not signal clearly to the markets that we are serious about getting on top of both our debt and the deficit. That would be an increase in interest rates, and we know from the forecasters that, roughly, a 1% increase in interest rates would lead to a £25 billion additional black hole in the public finances. To put that in some perspective, it would be equivalent to all the money that has been raised through the increases in corporation tax and the income tax threshold freezes. It is therefore essential that this Bill goes through the House to demonstrate that the Government are serious about getting on top of the public finances I would like to focus on some of the measures in the Bill. I turn first to income tax. I think that was the right place to go—a broad-based, important, very high-yielding tax—in order to raise the kinds of amounts that are required. The fact that the Chancellor has chosen to freeze thresholds rather than increase rates allows him, of course, to maintain the triple lock commitment in the Conservative manifesto. Incidentally, I have always argued that, depending on how things pan out, the public might perhaps—under the circumstances—forgive the Government were they to decide to breach the manifesto in one or two areas, given the extraordinary times in which we live, but it is good that the Chancellor has managed to avoid doing so, at least on this occasion We need a progressive tax system. Of course, with income tax—the wealthiest 1% paying some 28% of income tax—that is exactly what we have; but we also need an income tax system that does not undermine the link between those who pay tax and public spending. Through freezing the personal allowance, as well as raising more money, there is some benefit in ensuring that those who benefit from public services do, at least to some degree—albeit that we want a very progressive system—also pay tax to support those services Corporation tax also provides a large amount of money to the Exchequer. The Bill provides for quite a large increase in corporation tax, from 19% to 25%. The critical point is that we remain internationally competitive. The shadow Minister mentioned on a number of occasions President Biden and his tax policy. Well, his policy is to increase corporation or federal taxes from 21% to 28%. If we add on state taxes, that still leaves us very competitive—even at 25%—and certainly among members of the G7 I was pleased to see in the Bill the small business rate relief. It will be important to support particularly our small and medium-sized enterprises as we come through this crisis. There are many reasons, which I will not go into in huge detail now, why that particular sector of the economy may be especially vulnerable as we come through the crisis. In the event that large swathes of SMEs go out of business, we could well see increases in market concentration and a contingent decrease in competitiveness across the economy, so it is important that we are careful and that the Treasury is mindful of the fact that those small and medium-sized enterprises will need ongoing support I want to say just one thing about the Laffer effect. In the context of corporation tax, it is often argued that—because corporation tax fell from 28% to 19% between 2010 and the present day, and at the same time the yield from corporation tax rose by 50%— there is some kind of causation, rather than correlation. I would argue quite strongly against that. I think that the improved yield from corporation tax was as much to do with improvements in the economy across that period, the bank levy, the bank surcharge and various anti-avoidance measures such as the corporate interest restriction. We should not fool ourselves into believing that raising taxes on companies will necessarily yield less in the medium to longer term—albeit that in the longer term we of course want to see those taxes as low as possible Incidentally, if my right hon. Friend the Chief Secretary to the Treasury were looking for areas where there might be a Laffer effect, I would point him to three taxes: the higher rate of capital gains tax; the stamp duty land tax on high-value properties; and duty on cigarettes. There is scope for reducing rates and getting a higher yield in all three of those areas I very much welcome the super deduction. I guess that there was an inevitability to it; if we signal that corporation tax rates will go up in future, we tend to find that companies delay investment such that they can gain the offset from those investments against a higher corporation tax rate. It is therefore important that the super deduction came in—in a sense, to stop that forestalling. What happens after that two-year period of the super deduction will be critical I urge the Treasury to look carefully at the way in which companies are undertaking investment expenditure. We know there have historically been weaknesses, quite outside the crisis. Measures such the R&D tax credits will be important in that respect. I notice that clause 19 provides a cap on those for SMEs, which, if I understand the clause correctly, is about ensuring that there is no double counting or double relief between a principal company and a subcontractor. When the Bill goes into Committee, that provision should be given careful scrutiny. I welcome clause 15, on the extension of the annual investment allowance at the £1 million level, albeit that that is temporary Turning briefly to the diverted profits tax, I will pick up on one or two remarks made by the shadow Minister, who seemed to imply that the Government’s record on clamping down on avoidance and evasion was rather wanting. My recollection of my time as Financial Secretary to the Treasury is quite the opposite. I direct the hon. Gentleman to HMRC’s annual report on the tax gap—the amount of money not collected that could be collected—which I think in recent years has been at historic lows, and has certainly been among the best of the figures available across tax authorities around the world Remarks were made about tax breaks for tech giants. It is for the Government to decide whether their corporation tax policy is to go in lock step with President Biden’s idea of minimum corporation tax rates across the world. That could be one solution to profit shifting. We must not forget, however, that this country has been in the vanguard, unilaterally rolling out the digital services tax to make sure that companies including Amazon, Google and eBay pay the appropriate level of tax. It is for the Americans to join us in a multilateral endeavour to make sure that such taxes actually work. I am quietly optimistic that the new American Administration is at least leaning in the right direction. I would be interested to hear the Exchequer Secretary explain why the diverted profits tax increase just maintains the punitive margin between the level of that tax and the increased corporation tax in the years ahead, rather than the decision being made to widen the margin, given how successful the diverted profits tax has been in preventing profit shifting Free ports feature prominently in the Bill. The Chancellor is, of course, enthusiastic about these, and they have exciting potential, particularly in terms of the levelling-up agenda, but I point to two areas where caution is needed. One is the possibility of fraud in free port areas. Careful scrutiny is needed of the tax incentives, albeit it that SDLT structures and building allowances and enhanced allowances for plant and machinery seem to be tax breaks that are difficult to game, because they relate to fixed assets in a specific geographical location. The second issue is possible displacement of economic activity. We do not want activity that would have occurred anyway, perhaps nearby, occurring in a particular location simply because there are advantageous economic and tax arrangements in place. The scrutiny Committee will certainly be interested in the operation of free ports. One element of the Bill that I was especially pleased to see that has not been mentioned so far and probably will not be mentioned again in this debate is the change that ensures that where an employee receives a covid test provided by an employer in their place of work, it does not count as a taxable benefit in kind. Were it to do so, millions of workers up and down the country would find that they were liable for tax in relation to those tests. I raise the matter because there is a small but important lesson in scrutiny here. Tony Verran, who is a member of the Treasury Committee secretariat, having joined us on secondment from HMRC, spotted this anomaly in HMRC guidance. Within about 24 hours, I was able to raise it with the Chancellor on the Floor of the House in Treasury Questions, and within 24 hours of that, to his great credit, he changed the guidance, and now we see the provision in the Bill. That is how Parliament should work, so I am grateful to Tony and others who were able to point me to that issue In conclusion, I very much welcome the Bill. There are areas that will need considerable scrutiny. When I had my time as Financial Secretary to the Treasury I think I took through three Finance Bills with more than 1,000 pages of legislation, and I know the extraordinary amount of work involved in that, and the extraordinary amount of detail that my right hon. Friend will be going through over the coming days and weeks. I wish him well. The Treasury Committee will, of course, closely scrutinise the Bill, and will no doubt have much to say about it.
It is a pleasure to follow the Chair of the Treasury Committee. As the SNP reasoned amendment sets out, the Bill falls short in a number of respects. My colleagues and I approach the Budget and the Finance Bill that follows with a sense of frustration, given the limited powers that the Scottish Parliament has over many matters in the Bill, and the imperviousness of the UK Tory Government to suggestions of improvements to their legislation. The most minor suggestions for how they might do things better are dismissed, whether they come from us as Members of the House, or from expert organisations That is a symptom of how this Parliament does its work, with no real incentive for compromise. There are aspects of the Bill in clauses 36 to 38 where Ministers are coming back to fix measures from the 2017 Finance Bill to make them work as intended. Expert organisations such as the Chartered Institute of Taxation, the Association of Taxation Technicians, the Institute of Chartered Accountants of Scotland, the Institute of Chartered Accountants in England and Wales, and the Low Incomes Tax Reform Group have all pointed out sensible tweaks to the Bill the Government could easily make. I urge Ministers to listen carefully to that expertise and to act I ask again for evidence sessions ahead of the Finance Bill. All other Government Bills—even, on occasion, private Members’ Bills—schedule evidence sessions, but not this major piece of legislation, which will impact everyone in these islands. The recent Financial Services Bill had useful evidence sessions where the Economic Secretary to the Treasury asked useful questions of our witnesses. I see no reason why the Government would not make time for that. Indeed, they might make better, more considered financial legislation if the evidence to support it was better examined Over the past year, the UK Government, like all Governments around the world, have taken a range of steps to support people and businesses. The Bill gives us an opportunity again to assess those measures, commend those that have worked, and examine which could usefully be extended and enhanced. It also allows us the chance to reflect on how we got here. The overriding context for the situation in which we find ourselves today has been a decade of austerity. The British Medical Association, in an article last October, referred to austerity as “covid’s little helper”, reflecting on how public health services in England have been cut back and undermined, resulting in a stalling of life expectancy in England. That came through the political choices—the budgetary and taxation choices—of this UK Tory Government. The tax breaks and the loopholes of this and previous Finance Bills, and the decisions of the Chancellor, have caused significant damage to public services across the UK, including in Scotland, where people did not vote for this austerity but have been forced to mitigate its impact We know that austerity is far from over; a second wave of Tory austerity is rushing towards us. The IFS has said that under current plans “many public services are due a second, sharp dose of austerity” and that for non-protected Departments the “Chancellor’s spending plans are even tighter than they first appeared.” Departments such as the Ministry of Justice, the Ministry of Housing, Community and Local Government, and the Department for Work and Pensions, will suffer cuts of 3% in 2022-23, which represents an 8% cut relative to pre-coronavirus plans in March 2020. When the Barnett formula is taken into account, that represents a cut of around £4 billion. It is a cut we cannot afford, on the back of so many that have come before. I am sure the Tories will argue that the Scottish Government should simply put up taxes, but they continually fail to recognise that we already pay in to the UK coffers, but we do not have control over what the Chancellor chooses to waste on dangerous vanity projects such as Trident, or on crony contracts to his Tory pals The measures in this Finance Bill regarding the coronavirus job support scheme and the self-employment income support scheme show the degree of complexity that we are now left with as a result of schemes being brought in necessarily in haste and extended for longer than the UK Government had anticipated. While the vaccine roll-out is progressing well, we are not yet out of this pandemic, and the scenes of young people out celebrating the end of lockdown last night should give us all a wee bit of pause for thought, along with the new variants that could evade vaccination in the future The UK Government have never been able to guarantee, regardless of their rhetoric, that life will be back to normal any time soon, so they should ensure that the support schemes reflect the course of the virus and extend them for as long as is necessary. They must now fill in the gaps in the support schemes and finally give some certainty to the millions of excluded people who have been left with not one penny piece from the UK Government for over a year. I received some mail this morning with a book called “£xcluded Voices” from Stephen Liddell. It includes 151 stories of those excluded from support, and I hope very much that his book reaches the Chancellor’s desk. Stephen is a tour guide whom I had the pleasure to meet during a demonstration last year, and 95% of his income comes from overseas tourists. It is a sector of the economy that is highly unlikely to get going even when sectors start to reopen, and that will be two summer tourist seasons lost. He is among so many who have been left behind, completely without hope—and entirely without justification UKHospitality has highlighted that, with over 1 million employees in the hospitality sector still on furlough, it was critical the schemes were maintained, and it did welcome that, as do we. Yet moving to business contributions from July could prove difficult for some businesses that are not yet trading or that are off-season, and could yet result in further job losses. The stop-start, on-off furlough dither last autumn caused job losses from employers unable to bear the costs and the uncertainty, and the UK Government must not repeat that mistake It almost goes without saying that the SNP wants the £20 universal credit and tax credits uplift to be made permanent, but I have a wee query on the specifics in clause 31 about making the working tax credit uplift match the temporary £20 increase to UC by means of a one-off £500 payment. There are real concerns about the rough edges of this policy from experts such as the low incomes tax reform group. My understanding is that this £500 will be paid automatically, but there will be a charge to income tax where someone receives this in error—an error that would be HMRC’s error, not the recipient’s. There is a lack of certainty about what will happen if people get money they are not entitled to through HMRC’s own error, and what those receiving support are expected to do if they are unsure, especially as there is only a 90-day period in which to notify that error. I ask the Minister to give us some further detail on how exactly he envisages that this will work and what information people will receive We will certainly get into further detail next week, but I wish to run through some of the concerns that we and experts have with the measures put forward in this Finance Bill, in the doubtless vain hope that Ministers will start to get moving on improvements to it Beginning with the income tax personal allowance uplift and freeze, this would appear to be contrary to the Government’s stated policy on low-income taxpayers. National insurance thresholds will continue to move, and those under the personal allowance threshold, including those on universal credit, will not really see any benefits from this move. As always with the UK Government, there are problems in the detail. I would note that Ministers are also not taking the opportunity to amend the high income child benefit charge, which has proved so problematic for so many people We welcome the UK Government’s move on corporation tax, but would push them to work alongside President Biden on his call for global action on corporation tax. This is a golden opportunity for a concerted effort to move away from a race to the bottom On the super deduction, I must at least give the UK Government credit for a snazzy slogan, if for nothing else, but we have some queries about how it will work in practice, whether the benefits of the scheme will make a real difference to the wider economy and, as some have said already, whether this will give rise to tax dodges. The SNP has raised concerns for years about the UK’s low productivity, and the UK Government might want to act further to encourage businesses to invest more in staff, skills and technology. A real living wage, rather than their pretendy living wage, might be a better place to start We believe there should be a greater focus on pushing investment to meet net zero. The UK Government must ensure that this investment is one for future generations, and I ask how exactly Ministers intend to monitor the effectiveness of this super deduction. There should be safeguards against what Tax Justice has called egregious investments such as Jacuzzis. I note also that the purchase of flags might be on the list of things people could buy through their companies, which will no doubt please all the Tories on Zoom The Association of Taxation Technicians has some concerns about interaction with the introduction from 1 April 2023 of the small profits rate. I appreciate that the UK Government may believe they have good grounds for excluding leased or second-hand machinery, but the ICAEW has pointed out that industries that lease plant and machinery rather than acquire it outright make a significant contribution to the UK economy. The Construction Plant-hire Association estimates that the UK’s plant hire industry is worth £4 billion per annum, and the Construction Equipment Association estimates that 60% to 65% of all construction equipment sold in the UK goes into plant hire. This sounds to me to be quite significant, and I would ask Ministers to set out their reasoning in greater detail Moving on to clause 15, the annual investment allowance has jumped about over recent years with permanent and temporary limits, so it would be good to get more certainty on that. In the “Tax after coronavirus” report, the Treasury Committee, on which I sit, commented: “The Annual Investment Allowance is valued by business and it appears well targeted to promote growth in small and medium-sized enterprises. As with all tax reliefs there is likely to be some deadweight cost; but we urge the Government to look favourably on further extension and possibly permanency at the existing level, which would provide welcome certainty to small and medium-sized enterprises.” The ATT agrees that such extension or permanency would be welcome for many businesses in providing certainty, although for smaller businesses an opt-out provision might be a useful solution Part 2, on plastic packaging tax, takes up a substantial chunk of the Bill and is a particular area where I would like to see more evidence and scrutiny of the UK Government’s proposals from experts in the sector. There is certainly a lot in here for businesses to get their heads around. The Green Alliance sent a helpful briefing to Members, which I hope Ministers have also seen. It suggests: differentiated obligations; an escalator for the percentage of recycled material and the level of tax; a price-stabilising mechanism to de-risk investments in reprocessing and ensure that recycled content, as the more sustainable option, is always cheaper than virgin material; removing the exemption from packaging made of multiple materials, which can be difficult to recycle; and, finally, ensuring that a verification mechanism is in place. Those are all worthy of further consideration, and I am sure that as the Bill progresses we will hear from more organisations out there with their views. We have an opportunity to make legislation useful not only for the here and now, but for the future Clauses 92 and 93 are on VAT on tourism and hospitality, which is an area long overdue for reform. The UK has had one of the highest VAT rates on hospitality in Europe. It is welcome that the UK Government heeded the calls from industry and from the SNP for a cut in VAT for tourism and for hospitality. With people unlikely to be able to travel for their holidays this year, it is more important than ever to build the local tourism sector up and encourage people to take up the wonderful tourism opportunities on our doorstep. Scotland has done its part in giving 100% business rates relief for hospitality, and the UK Government must now do their part, too It is deeply disappointing that the UK Government will extend the 5% rate only until the end of September, as due to the lockdowns people have not been able to take full advantage of the reductions. Increasing the rate to 12.5% until March next year—then presumably it will revert to 20%—will mean that the tourism and hospitality sector will not see the benefit over the October holidays or the Christmas period, and then it will take a further hit next Easter. As I understand it, the reduction also applied to live music, funfairs, shows and events, so it makes even more sense to extend the reduction to a sector that has been unable to open its doors at all for the best part of a year. I urge the UK Government to consider that fully. There are also some practical difficulties for firms in moving the rates and dates, as that may cause confusion. A wider review of VAT more generally would seem sensible. I ask Ministers where that features in their plans On clause 113 and schedule 25, on penalties for failure to pay tax, there is no doubt that I support people paying the taxes they should in full and on time and that there should be a penalty for not doing so. That said, the ATT and the ICAEW have concerns that the proposed late payment penalty regime is overly complex and, as a result, will not be understood by taxpayers and not act as an effective deterrent. The ATT in particular feels that allowing HMRC up to 48 weeks in some circumstances to notify a person of the award of a penalty point, and up to two years to assess a penalty liability, is quite excessive. The periods should be further reduced and/or assurances should be given by Ministers that they will be used only in the most exceptional circumstances I turn to freeports. We on the Opposition side continue to have concerns about their effectiveness and the potential for tax dodging. The point by the Chair of the Select Committee about displacement was also well made. Their use around Europe and around the world has left many scratching their heads about what the UK Government aim to achieve. Scotland has set out a differentiated approach, engaging in good faith but adapting and improving the UK’s model to address the climate emergency in our green port approach. The Scottish Government stated: “Operators and beneficiaries will be required to commit to adopting Fair Work First criteria and contribute to Scotland’s just transition to net zero” Trade Minister Ivan McKee recently raised concerns about the UK Government’s lack of willingness to engage on that while pushing forward with their own plans. If devolution means anything at all to the UK Tory Government, they must allow Scotland to pursue a model that fits the policies and ambitions of the democratically elected Scottish Parliament and Scottish Government. They must step back from using the United Kingdom Internal Market Act 2020 as a battering ram, driving through policies that Scotland did not vote for Where this Finance Bill really does not go far enough is on tax evasion and tax avoidance. Yes, there are some measures here, but there are also some massive gaps. Despite raising it in every Finance Bill, Scottish limited partnerships continue to exist as a means of shifting dirty money around the world. Just last month, the investigative journalist, David Leask, wrote about NovoLine Resources, a shell company with an address in Edinburgh, which was blacklisted by the World Bank following an investigation into the contracts that it won to supply equipment to Uzbekistan’s Health Ministry. If the World Bank can see that this company is up to no good, it baffles me why the UK Government will not act to shut it down. Ministers must get serious about the financial crime that their lack of attention is facilitating There are also gaps around trusts, and we are still waiting for the much-delayed Registration of Overseas Entities Bill. I really do have to question whose interests this serves: it is now three years since I implored the Government to stop fannying about on this matter during the consideration of the Sanctions and Anti-Money Laundering Act 2018, and very little has happened since This is another great big chunk of a Finance Bill, but there is so much still that is missing. It is a point of some frustration that the Scottish Parliament, with its ambitious agenda for fairness, sustainable growth and a green recovery, does not have access to the levers and the powers that it needs and that, in so many instances, the UK Government, who do, do not even want to make use of them. We will do our best in diligently trying to improve this Bill. We will engage with experts and we will move our amendments, which the UK Government will almost certainly choose to reject. I look forward to the day when these financial powers are vested much closer to the people of Scotland, in our own Parliament, where we can make much better use of them.
It is a great pleasure to speak in this debate and to follow the hon. Member for Glasgow Central (Alison Thewliss), principally because I can say how wonderful it is that the Scottish people have enjoyed the benefits of this great British vaccine success. It has been enjoyed by the entire United Kingdom, and funded by our deep commitment to UK life science, which comes from the United Kingdom Government. The great Scottish cluster benefits from that hugely. I was surprised not to hear the hon. Lady accept and regret the fact that, had the Scottish Nationalist party succeeded in persuading the people of Scotland to leave, they would not now be enjoying the vaccine security that they currently are. It is a wonderful thing. We are stronger together in health as we are in economics As my right hon. Friend the Financial Secretary put it so eloquently at the start of this debate, covid has been not just a health catastrophe, a global pandemic on a scale that none of us in this generation has seen before, but an economic catastrophe. It has been an economic shock to this country and to the global growth engine, which is not yet over. It is a sign of the generosity of the Treasury’s support that it will be only when the furlough programme, which has been rightly extended, ends in the autumn that the beginnings of the full reveal of the economic damage will strike us all. It is for that reason that the measures in the Finance Bill and in the wider relief that the Government have put in place are to be so welcomed and are so important I will, if I may, start by echoing the comments of others and by thanking the Chancellor and his teams—both his ministerial and official teams. It is not that common to praise Her Majesty’s Treasury in this Chamber, and particularly not for moving with speed, compassion and an instinctive desire to spend money on behalf of the health of the British people. This happened both in the economic crisis in the crash, when the Treasury moved at pace over one weekend to put in place a phenomenal package to prevent the meltdown of the City of London, and in this crisis. Indeed, it is barely possible to think that, a year ago, the Chancellor stood here and took the nation by surprise with the pace, compassion and speed with which he announced his package. The fact that more than 1 million jobs have been furloughed and protected and £800 billion has been spent in immediate relief is an absolute cornerstone of the fact that the economic recovery that we are now beginning to see is so strong.
The hon. Gentleman makes a comparison between the Treasury’s response to the covid crisis and the Treasury’s response to the last financial crisis. I wonder, therefore, whether we ought to be blaming the enormous deficit and debt now on Conservative profligacy or whether we will finally accept that, in 2007-08, as now, the Treasury did exactly the right thing to prevent the economic situation being even worse than it would otherwise have been.
The hon. Member makes an interesting point that I relish responding to. My praise was for the Treasury in moving at pace to solve and sort a crisis incubated by the last Labour Government in leaving this country deeply vulnerable as a result of a whole series of measures put in place during the Blair and Brown years, not least the smash-and-grab raid on our pensions and the foolish and reckless deregulation. The Treasury moved quickly to solve a crisis, but I am not claiming, at the same time, that the Government of the day were not responsible for incubating that crisis. They are different points.
May I remind my hon. Friend of a fact that he will know well? The leverage ratio of the British banking system was 20 times equity for 40 years until the year 2000, after which it went up from 20 times to 50 times in seven years under a Labour Government.
I thank the Financial Secretary for pointing that out. I am tempted to remind everyone that the former Chancellor of the Exchequer and then Prime Minister sold the gold at a record low and various other things, but I shall not be distracted—I simply record that—and focus on this Budget. I will not list all the measures in it, but I want to highlight one or two that the people of Mid Norfolk and I particularly welcome and then highlight three points that we need to think about as we seek to drive a powerful recovery I particularly welcome the measures in the Budget for the self-employed, who, in the first part of covid last year, were hit hard. Many of them were living at risk, hand to mouth and on each month’s proceeds, without the stability of a company behind them There is also the support for apprenticeships and traineeships. In Norfolk, when the furlough ends, we are expecting to see between 30,000 and 50,000 unemployed. The Government have rightly moved quickly to make sure that a very powerful skills and training pathway package is in place, so that people who have left old jobs that have not survived this accelerated crisis—it has accelerated much of the challenge on the high street—can quickly find jobs in the new economy that we are creating I want to highlight the £700 million package for the arts, culture and sport. In particular, we need to support the artists and creative people at the heart of those industries, not just the buildings. It is that genius—that creativity—which is so key to the British instinctive creative spirit, that we need to support. Rather too many of our great artists are working in all sorts of jobs and seeing their artistic careers disappear. We need to make sure that we keep them busy and get them back to work On levelling up, I highlight the Government’s phenomenal package of support, rightly making the crisis not just a moment to prop up the pre-covid economy but to drive growth out. The 45 town deals and the eight freeports are genuinely transformational for places such as Teesside that have been left behind by successive Labour Governments, who ought to have been representing them better. There is the move of the UK infrastructure bank to Leeds, the levelling-up fund, the community renewal fund, the Help to Grow for SMEs, the future fund and the substantial commitment to net zero and the green infrastructure that we need for a proper recovery. This was a Budget not just to repair the damage of covid, but to lay the foundations for a more sustainable and sustained economic recovery, creating jobs and opportunities for generations to come. I welcome it particularly for that reason That financial package is allied with the extraordinary success of the UK life sciences community, and perhaps at this point I could, as a former life sciences Minister, pay tribute to its extraordinary work. In particular, there are the scientists at Oxford and AstraZeneca, to whom we owe so much, and in Norfolk, there is the work of the Norwich Research Park and the Quadram Institute, which has done pioneering work in some of the genetic sequencing. At the same time, I welcome the work of the vaccine taskforce, led by the redoubtable Kate Bingham, with whom I know the Financial Secretary has a strong working relationship. I am tempted to channel my inner William Hague and remember the time when he commended Yorkshire for having more gold medals in the 2012 Olympics than France. In fact, he went further, saying that Mrs Brownlee had won more gold medals than France in those Olympics, and I do not think any couple has done more for the UK health economy than the Financial Secretary and the head of the vaccine taskforce. I genuinely believe that this package is responsible, responsive and lays the foundations for a resilient set of public finances. The challenge now is to get the growth that we need from the private sector to build a really sustainable recovery, and I want to turn to that and make three key points. First, if we are really to escape debt—the debt legacy from the crash in 2007-08 and the debt legacy from covid—and to build a clean, green, smart economy, we need not just to get back to ticking over with 2% to 3% growth; to get to 4%, 5% or 6% growth, we will have to be able to host, or incubate, economies growing at 100% a year. That is the key to growth in this economy. We cannot escape debt by building over the whole of the south of England or building over any last rural area around Cambridge. To support growth, we have to make sure that we grow the economies that will grow our economy, building back better one local economy at a time and one sectoral economy at a time. To avoid the boom and bust of the City, housing and retail cycles that have left us in this state, the Treasury is absolutely right to commit to the deep infrastructure investment for tomorrow’s growth sectors. I am delighted that after my short period in the wilderness, the Prime Minister has asked me back to lead his taskforce on innovation, growth and regulatory reform to look at where, as we come out of covid and seek to lay the foundations for this recovery, free from the European Union’s regulatory frameworks but still able to trade with its market, we may be able to strike a blow for bold innovation and regulation for innovation I want to highlight some sectors that are growing spectacularly and that, if we were to invest strategically, would help to grow our national economy in the same way. The broader bioscience sector includes not just pharmaceuticals but the bioeconomy sector of food, medicine and energy, and, in particular, areas where those three support each other. In Norfolk I recently sat in a Lotus built at Hethel Engineering Centre that was powered by a Formula 1 low-carbon biofuel made by genetically modified bugs breaking down agricultural waste. That is what I mean by bioscience and the bioeconomy. In this century, it is biology and bioscience that will drive growth globally, just as physics did in the last century and chemistry in the one before. We are a phenomenal powerhouse in the biosciences, and if we invest in that, support it and commercialise it better, we will grow the industries of tomorrow Similarly, in nutraceuticals, where pharmaceuticals meet food and nutrition, there is a whole range of new crops that support growth and crops that are drought resistant and disease resistant, such as crops we export to Africa to help drive sustainable development. In biosecurity, and plant, animal and human health, we share much of the genomic sequence with most of the animals that we rely on in our agricultural system. There are huge opportunities for us to breed out susceptibility to disease and traits that will lead to huge suffering. There is a huge opportunity to harness genomics for the benefit of animal welfare, as well as progressive agriculture, in artificial intelligence, in immunotherapy, in space, in biofuels, in carbon capture and storage, and in biodiversity investment. These are huge sectors that this country is poised to grow into substantial industries, creating jobs and opportunities for tomorrow. If we get the regulatory regime for this right, which Brexit gives us an opportunity to do, and, as the Treasury is doing, we invest in the deep infrastructure and create the right commercial environment, I genuinely think that this is a moment when we could unleash a new cycle of growth, so that we look back at this, yes, as a crisis, but also as an opportunity, such that future generations will thank us for getting us off the boom and bust cycle of over-reliance on short-termism, the City, housing and retail booms, and laying the foundations for serious global growth based on technology transfer Secondly, from the perspective of rural Mid Norfolk—not 40 miles from Cambridge but at times feeling like 100 miles, or 100 years, from it—the small towns are fundamental. That is why I welcome so much the 45 town deals in the Budget. I hugely welcome all of them and the work that is being done. However, it is vital that as the Treasury launches these funds, we also think about how we can make it easier for the places and communities that have often been left behind because they do not have the resources of a metro Mayor or the big capacity to access multiple Government funds. Somewhere in the mix is a role for what I might call local regeneration corporations—small, fleet of foot, locally place-based public-private partnerships with powers to access money for multiple funds and deploy them over a five or 10-year plan to drive transformational local change and to pull in private finance alongside public. They would have the powers to do some compulsory purchase, to move in quickly and regenerate land left fallow after covid, to embrace some of the opportunities of land value capture and tax increment financing, and to raise infrastructure bonds and finance. Many investors around the world would love to contribute to and have a stake in this British recovery. Many places around our country will not be able to access on their own sufficient finance from the Treasury. We need to make it easy for them to drive local engines of growth that will go on in decades to come, in a similar way to the successes of the London Docklands Development Corporation, the Tyne and Wear Development Corporation and the County Durham development corporation in the ’80s and ’90s, which were so transformational.
My hon. Friend makes a very good point about regional economies. On engines for growth, does he think that regional mutual banks might be part of the solution? They are very effective in places such as Germany and the US, focusing on regions, making sure that SMEs get lending into the productive parts of our economy. Would he look at that as part of his remit on regulatory reform?
With pleasure, and I can go further. My hon. Friend is typically astute and on the money—absolutely. It is true that in the pension funds of this country, we invest remarkably little in equities, remarkably little in small company finance and remarkably little in our own infrastructure. I am not for a minute suggesting that Norfolk County Council should put all of its money into the Cambridge to Norwich railway, although I think it would be quite a good investment, but it would be an awful lot better than finding it had quite a lot in the Iceland bank during the crash, where we lost a lot of money. There needs to be a reasonable balance. I think a lot of people in this country would quite enjoy having a stake in their own infrastructure People have season tickets. What about also having a share in the mutual railway company and a share in infrastructure that they are helping to fund and that they rely on? That is part of the revolution of place-based capitalism—one might even call it stakeholder capitalism, if one were on the Opposition Benches. We can call it what we want, but it is about giving people a stake in their own economic destiny The third area that I wanted to highlight is the importance of global markets. If we are really going to become an innovation nation, home to these incredibly exciting technologies that will drive tomorrow’s growth, we need to make sure we are better connected to those emerging markets around the world, which are growing at 10% or 20%. As the Foresight report highlighted, global population growth means that by 2050, we are going to have to double food production globally on the same land area, with half as much water and energy. That is a phenomenal global grand challenge, but it is one that this country is well positioned to respond to, with our historic strengths in agricultural science and technology and the biosciences I have talked about The real trick is how to link our leadership and innovation and commercialisation in the City to global markets. I suggest that our liberation through Brexit from the European trading structure, challenging though it is in many ways, does create an opportunity for us to embrace variable tariffs. Imagine if you will for a moment saying to countries in Africa, “Look, we are not going to charge you 40% on food tariffs, like the European Union—that is immoral. We will reduce it to 5% or 10%, but 0% is only for those who are growing and producing at the most responsible and progressive standards—the very highest standards of animal welfare and food quality. We will help you to do that by exporting the technologies that we have developed here using our aid budget.” With those commitments to growth and local places, and to globalisation, this is an opportunity, given what the Treasury has done, to make this crisis a genuine moment to unlock a new cycle of growth for the benefit of this country and generations to come.
Budgets and their associated Finance Bills give practical meaning to the political aims of Governments. Manifestos and the rhetoric of party-leading Members and eventually the Queen’s Speech are the mechanisms used to describe the society that the governing party aims to construct, but it is its Budgets and its Finance Bills that are the tools by which the foundations of that society are laid. What we can discern from this Finance Bill is that, despite all the rhetoric from the Prime Minister, and all the personalised, personally signed social media promotions by the Chancellor, the society they want to build back to and to return us to is, in essence, the same pre-covid society of insecurity and inequality that left us so vulnerable to the pandemic I have heard the Prime Minister and the Chancellor claim that we have only been able to meet the demands of a pandemic because of the so-called strength of the pre-covid economy, so it is worth reminding ourselves what the pre-covid economy was like. Some 4.2 million of our children were living in poverty—30% of children in this country. Rough sleeping had more than doubled. Food banks were handing out 1.5 million food parcels a year. Nearly a million people were working on zero-hours contracts. Going into this pandemic, the NHS had suffered the longest funding squeeze in its history and there were 100,000 vacancies, including 40,000 nurse vacancies. Social care was even worse, with £8 billion taken out of social care budgets since 2010 and, according to Age UK, 1.5 million of our older people not getting the care they needed. The existential threat of climate change was effectively ignored, with the Government hopelessly off target to secure even the modest goal of net zero emissions by 2050 We cannot stand by and let this Government return us to all that. If this Finance Bill is to have any relevance whatsoever, it must address those issues, but also the impacts and challenges presented by the pandemic, which has exacerbated many of those issues of the pre-covid economy Unemployment is forecast to hit 6.5% this year. Introducing the furlough scheme without conditions enabled fire-and-rehire employers to cut wages and conditions of employment. Low wages and inadequate sick pay have resulted in around 750,000 households being behind on their rent or their mortgage, and millions more are behind on basic household bills. With the eviction ban ending on 31 May and, realistically, no action on debt from the Government, we risk a surge in evictions leading to more homelessness Public services remain stretched, in many areas to near breaking point, getting through only by the commitment and dedication of often underpaid and still undervalued staff. Half of all care workers earn less than the living wage—the real living wage. As my hon. Friend the Member for Ealing North (James Murray) said from the Front Bench, the Government clapped for our key workers, yet now they are rewarding millions of them with a pay freeze or an insulting 1% rise. Inequality was rising before the pandemic, and the pandemic has only widened it The Government’s response, contained in this Finance Bill, has nothing to do with building back better. Some have suggested that, because the Government have been forced by the pandemic into large-scale spending and borrowing and corporation tax rises are now mooted, the Chancellor is implementing the policies advocated by Labour in its 2019 manifesto. Nothing could be further from the truth. It is not the rhetoric that is important; it is the substance. Without structural change in our economy that fundamentally shifts the balance of power and wealth in favour of working people, our society will simply replicate the inequality and injustices of the past This Finance Bill demonstrates that it is largely the same old Tories and the same old Tory policies taking us back—building back, but not better for the many. If we look at the evidence from the Budget and in this Bill, far from addressing the mounting poverty in our society, the Government are not only cutting universal credit but freezing the tax thresholds of the low paid and doing nothing for those who do not even earn enough to reach the threshold On low pay, the Government have already failed to meet George Osborne’s much-heralded target of a minimum wage of £9 an hour by 2020, and they are imposing a pay freeze on many of the very people who have helped to see us through the pandemic. To compound that disregard for people struggling to get by on poverty pay, there is also nothing in the Bill that discourages employers from using brutal fire-and-rehire tactics to force through permanent wage cuts The timings of the Bill’s tax proposals betray the reality of the Government’s attitude to inequality. The Bill pushes through a tax threshold freeze for low and middle earners but delays corporation tax increases, which there is already speculation could be dropped in a pre-election giveaway to business at some stage in the future. Plus, the Bill contains no action to fulfil the much-publicised proposals to equalise the rate of capital gains tax with income tax. The Government have talked about levelling up, but Tax Justice UK’s analysis demonstrates that 1,600 of the wealthiest Londoners made more in capital gains than the entire north of England. Instead, the Bill proposes super deductions tax reliefs—a huge giveaway of £25 billion to large corporations As we have debated in this Chamber, tax reliefs have a long history of corporate abuse and failure to meet their stated objectives. I remind Members of the cross-party debates we have had on the issues around the entrepreneurs allowance, the patent box and the tonnage tax, to name just a few of the allowances that have failed to deliver and been open to abuse. Unless legislative protections are put in place, there will be huge opportunities for tax abuse and waste, and a level of corporate looting that could make the billions at stake in the crony contracts and the Greensill scandal look like chicken feed in comparison Similarly, previous track records demonstrate that the Bill’s proposals for freeports will, unless strictly regulated, open up a vista of tax abuse, wage undercutting and the drainage of investment from surrounding regions. It cannot be right that the Government’s freeports will be in place before the Office for Budget Responsibility has done any assessment of their merits. As Tax Justice UK has pointed out, the Treasury does not even have confirmed costs for this policy, despite the Government already announcing the eight freeport sites Also, nothing exposes the vacuity of the Bill more than its real failure to address the existential threat of climate change with firm action. There is nothing in the Bill that dictates this priority and the scale of investment and action needed to address the crisis of climate catastrophe that we now face. If there is one thing that people have maybe begun to learn in recent months, it is that the promises of the Prime Minister and the policies of the Chancellor do not generally coincide either with reality or, as some have alleged, with the truth This Finance Bill evidences starkly the level of corporate capture of this Government. This is a Finance Bill for the corporations, not the people. Before the much-heralded corporation tax rises ever happen, corporations will be compensated with huge tax reliefs, including the massive £25 billion tax giveaway to corporations paid for by tax rises on working people. At the same time, £15 billion of cuts each year in departmental budgets will continue the austerity that has undermined our public services over the last decade. So, far from building back better, this Finance Bill lays the foundations for widening inequality and continuing a low-pay, insecure work economy, complemented by huge potential for tax abuse and with crony capitalism virtually embedded in our economy. The test of the Government’s purpose in the Bill will be their attitude to the amendments that will be inevitably be tabled to protect the lowest paid from the stealth tax increases of threshold freezes; to ensure that tax reliefs are not used as methods of tax abuse; to make unearned wealth taxed at the same rate as income from work, as was proposed by the Government; and to prevent ministerial interference, tackle low pay and exploitation and ensure that responsibilities to tackle climate change are upheld. From their attitude to those amendments, we will see whether this Government are a Government for the people or, as I suspect, a Government for the corporations.
I welcome the Bill. It is worth trying to get under the skin of Budgets, because it is so difficult. There are so many documents, there is a huge build-up, and large parts of it are incomprehensible to anybody other than the Financial Secretary. As Members of Parliament, we have to try to get under the skin of what, fundamentally, is going on here—what are the Government trying to do with the key measures In my view, the Chancellor is fundamentally trying to deal with one big thing that has not got enough attention in the House: our productivity problem. He is dealing with some of our deep-seated, deep-rooted economic productivity problems in two principal ways. The flashier one—and there has been some discussion of it today—is the super deduction, but I will not linger on that. In particular, I want to talk about the Help to Grow scheme, which is fundamental, transformative and can make a big difference to businesses across my constituency, Hertfordshire and, indeed, the whole United Kingdom On the super deduction, from listening to some of the criticism from Opposition Members, I do not think they really understand the nature of what is going on. One of the biggest economic problems that we have had for a very long time is a lack of private sector investment compared with our neighbours. That private sector investment has been further damaged by the covid pandemic for obvious reasons, as everybody appreciates. The super deduction is an inventive, creative, clever new way of turbocharging and increasing private sector investment and moving it forward so that we can help build back better during this very difficult phase that we are trying to come out of The hon. Member for Ealing North (James Murray) kept going on about tech companies. Well, I am afraid that he obviously has not read the detail. The super deduction is about plant and equipment. Plant and equipment tends to impact manufacturing businesses. I know that the Labour party is going through all sorts of internal difficulty and transformation at the moment, but it is a sad day when the Labour party cannot welcome measures that will benefit manufacturing businesses up and down this country.
Furthermore, had the hon. Member for Ealing North read the detail of the Bill, he would know that the super deduction is on new capital equipment, not on second-hand capital equipment. So even the manufacturing of equipment, provided it is made here in the United Kingdom, will generate jobs and income for firms here in the United Kingdom, which will then, as the hon. Member for Hitchin and Harpenden (Bim Afolami) pointed out, increase productivity in the firms that invest in the machinery.
I welcome that intervention. Opposition Members have also been saying, “This is only going to benefit the big companies, and the poor small companies won’t benefit.” First, it does benefit all companies if they qualify. The smaller companies already have the annual investment allowance, which is continuing and has been welcomed by everybody, including by them. And—whisper it—big companies are important for our productivity too! Big companies employ lots of people, so it would be negligent of the Government to say, “We are not going to bring forward a measure that will help our economy because it might benefit big employers that employ thousands of our constituents.”
May I add another point to my hon. Friend’s list of positives? Lots of the money spent because of the super deduction will be spent in the supply chain, thereby helping SMEs.
Indeed. I am having too much fun on the super deduction—I will talk about the Help to Grow scheme in a moment—so I shall finish on it. The super deduction is not something that the Chancellor just thought up as something that it might be a good idea to try; it is backed by fundamental economic analysis by people as eminent as Andy Haldane, the chief economist of the Bank of England, who I saw today has been appointed chief executive of the Royal Society of Arts. He is an incredibly able guy who has done a huge amount of work and thinking on this issue and is one of the many economists who have talked about investment being a key problem for our economy That brings me to the second key thing that the Budget will do for productivity: the Help to Grow scheme. So much of what we talk about in this place is the big numbers—the massive infrastructure projects, the huge budgets for the public services and all of that, which is all very important—but specific measures for small and medium-sized businesses often do not reach the Floor of the House. They are either hyper-localised in one’s constituency or they appear to be too big and too macro. The Help to Grow scheme could be really important, because it does two things that will directly help small and medium-sized businesses such as the family business that my wife runs, which employs five people, and hundreds of thousands of other companies like that First, the Help to Grow scheme helps to deal with our economic difficulty—pointed out by Andy Haldane, among others—which is that in most areas of the economy and of the country, we have an incredibly well-performing top 10% of highly innovative, successful companies, and we have our poorest-performing companies, and the gap between those two groups is greater than it is among all our competitors. That gap is around 80% larger in the United Kingdom compared with France and Germany. That is a significant economic difficulty for us. The question is: why is that the case The Bank of England’s analysis points out two key things among lots of different things. The first is technology adoption. In effect, the most successful, innovative companies adopt the newest technology and use it well, and the companies at the bottom end do not. The Government are trying to address that diffusing of knowledge throughout the economy and throughout different regions with the Help to Grow scheme. How? The Government are providing grants and assistance for productivity-enhancing software for companies in every single sector and the ability for them to get online help and advice on what technology to adopt. That could make a huge difference to hundreds of thousands of businesses all around the country and should be welcomed by everybody in this House The second aspect of our productivity difficulty is management and our utilisation of human capital—that is, the people who work in businesses up and down the country. How are we dealing with that? The Chancellor has an MBA from one of the best MBA schools—if not the best—in the world, Stamford, and went on to have a very successful career in finance. Not everybody will be able to do that or has the time and ability to do that, but everybody—right down to the small companies in each of our constituencies—can get huge benefit from access to high-quality management training provided by the very good local business schools up and down the country. The Help to Grow scheme gives the individual managers and owners of SMEs the ability to access that sort of knowledge, which is the sort of knowledge that most people running SMEs do not get If we combine that improved management capability—by the way, the Bank of England has identified that management capability is poorer in this country than it is in our competitors—with the adoption of technology, we have a ready-made mix of policies directly targeted to improve the most difficult aspects of our productivity problem. I do not know whether Help to Grow will deal with everything—I suspect it will not—but it will make a big difference, and it is a shame that so few Opposition Members have managed to understand and see the depth of seriousness of the Chancellor’s approach in that regard. That really needs to be brought out I shall finish—[Interruption.] Yes, I know I should finish. Hanging over us today is not just as an unusually cold April but the spectre of inflation potentially coming back in the next year, two, three or four years. There are many people warning about this from all over the world. If inflation does come back to whatever degree, interest rates may need to go up in future. If interest rates do go up, lest the House forgets, the need for fiscal responsibility will not have gone away. Small rises in interest rates do not just affect households trying to get mortgages or businesses trying to expand or to get debt; they also affect the Government hugely. Underpinning the Chancellor’s approach across everything I have said and lots of other things that have been talked about is a core understanding that fiscal responsibility matters. This Finance Bill helps to keep that in check, reminds the House of that, puts us on the right course and deals with our productivity problems, and I welcome its Second Reading.
I support the reasoned amendment in the names of my hon. and right hon. Friends. I hope to make a brief contribution, given the scope of the debate—I do not want to fall foul of your legendary patience and tolerance levels, Madam Deputy Speaker—but it goes to the heart of the concerns on the Opposition Benches that the Government are failing to address the many challenges faced by a whole variety of sectors across the country, especially in the light of covid I want to use one example in due course of the lacuna—not addressed substantively in the Bill—that may affect the finances of families and the broader health of the economy, which in turn impact on revenue raising. It is a proxy for the wider malaise that the Bill does not address I appreciate that the Bill is about raising revenue and not necessarily the spending of that revenue. In this regard, my call for spending on palliative care—the care that enables people to live life as fully as possible and enjoy precious time with loved ones before the end of life—is vital, but is not necessarily about revenue raising. However, I recognise that the Government have to some degree recognised how important the independent hospice sector is to our health and social care and the benefit it brings to the economy. The Government have recently used revenue from previous Finance Bills or borrowing to support the sector and enabled it to survive. Crucially, that eases the financial pressures on the families of those affected who need palliative care, but that is a proxy for the Government in this Bill not addressing the real needs of the economy The economy has been under stress and will continue to be so for a considerable period of time. We all have our experiences of families who are affected in one fashion or another, and palliative care and the support of people in that situation are part of that. It is time for the Government to recognise that they have to look after those in most need and use the benefit of the Finance Bill to raise revenue to support them The hon. Member for Hitchin and Harpenden (Bim Afolami) talked about productivity. Yes, we are one of the worst nations in the G7 for productivity. We are about 30% less productive than the Germans, about 20% less productive than the French, about 9% less productive than the Italians, and similarly 30% less productive than the Americans. There is nothing at all in this Bill in substance that deals with productivity issues. As much as the hon. Gentleman likes to say it, the Bill does not deal with that. It does not deal with job insecurity, low pay and low skills. It does not deal with inequality in education, social care and health. It talks about levelling up, but when, where and how? They are just phrases. There is absolutely no action and no route for the action that the Government wish to take over the years My example in relation to the health sector, and in particular the palliative care sector, is a proxy to say, “We should be investing our resources in supporting people in need, whether that is on job security or the hospice sector, because if we do not, it impacts on the economy in one fashion or another.” I do not want to go on too much, so I will finish on this point. I would like to put on record my disappointment that the Government are continuing with the no amendment of the law provision. As the Hansard Society notes, if there is no amendment of the law resolution, then “no amendment”— to the Finance Bill— “may be moved unless the relief proposed is covered by one of the Ways and Means resolutions…Nor may an amendment…exceed any figure prescribed in the relevant resolution.” In doing this year after year since about 2017, outwith elections, the Government are breaking a 90-year-old protocol. They are freezing Parliament out. Regrettably, this is yet again more chipping away at the powers of the House by the Executive’s sequestration programme, supported by obtuse Members on the Benches opposite. That is all I have to say on that matter.
It is a pleasure to follow the hon. Member for Bootle (Peter Dowd) In considering the provisions in the Budget presented by my right hon. Friend the Chancellor of the Exchequer on 3 March and the ensuing Finance Bill, it must be borne in mind that they are being delivered against a backdrop of wholly unprecedented economic circumstances. The global economy has suffered a shock that has not been seen for almost 100 years. Set in that context, my right hon. Friend has generally struck the right balance in supporting people and businesses through the crisis, beginning the task of fixing the public finances and laying the foundation for an investment-led green recovery There are some very welcome initiatives: the extension of furlough to the end of September; two further grants for the self-employed, with an additional 600,000 people eligible; the restart grants; extending the VAT cut to 5% for a further six months, before tapering for another six; the extension of the business rates holiday for three months, before tapering for nine; the increase in corporation tax, but with a small profits rate retained at the existing level; the super deduction on capital investment; and the steps to promote pension fund investment in infrastructure From a Suffolk and Waveney perspective, the headlines in the Budget and the Bill are the Felixstowe freeport and the Lowestoft towns fund deal. These can be a catalyst for private sector investment. For the latter, where I sit on the place board, it is estimated that the £24.9 million of public funding will leverage in £350 million-worth of private sector investment. Previously, I was doubtful about freeports, concerned that they move business around, displacing projects rather than attracting additional investment. However, taking into account the unprecedented challenges of covid and the opportunities of Brexit, it is necessary to pursue policies that can help to attract footloose global investment, although, as we heard, the provisions of the policy will need to be looked at very closely A concern I do have is that the focus on freeports could lead to the abandoning of enterprise zones, introduced very successfully by my right hon. Friend the Member for Tunbridge Wells (Greg Clark) in 2012. The Lowestoft and Great Yarmouth enterprise zone has worked very well. Its provisions need some changes, so that it is properly aligned with the exciting opportunities emerging in the maritime and port sectors. It is important that that and other enterprise zones continue The Finance Bill paves the way for the levelling-up fund and the UK community renewal fund. There are elements in the small print that cause me concern. With the former, the Lowestoft and Waveney area, where there are significant areas of poverty, is in the priority 2 category, while with the latter there are no priority places in Suffolk, yet there are in the surrounding very similar counties of Norfolk, Essex and Cambridgeshire. This appears illogical and not properly thought through. I am writing to the Secretary of State for Housing, Communities and Local Government seeking clarification of the selection criteria Covid has hit hard the poorest in society. It was thus right that a year ago the Government moved quickly to introduce the £20 uplift to universal credit and to provide unprecedented levels of funding to local government for welfare support. I welcome the extension of the universal credit uplift to the end of September and the one-off payment of £500 to those receiving working tax credit. However, I am concerned that the impact of covid on the most disadvantaged will extend beyond the end of the summer and could well be heightened at the time that furloughing is scheduled to end The Government have put in place some very good initiatives, such as the kickstart scheme, the restart scheme and the lifetime skills guarantee, but there needs to be a strategic approach to providing people with a pathway out of poverty and there is a worry that some important stepping stones are missing. I urge my right hon. Friend the Chief Secretary to the Treasury to work closely with his Cabinet colleague and my constituency neighbour, the Secretary of State for Work and Pensions, my right hon. Friend the Member for Suffolk Coastal (Dr Coffey), to ensure that we have a welfare support system that is fit for the task ahead. This should incorporate proper long-term funding for local welfare assistance and synchronisation with the implementation of the national food strategy, and it should ensure that those on legacy benefits are not left behind In conclusion, the Bill provides the framework for meeting the biggest economic challenge in our lifetime, but there is a need to look more closely at some of the detail, whether the criteria for bidding to economic regeneration funds or the need for a strategic approach to welfare support. I hope that the Government will do that in the weeks ahead.
This week the shops have opened, many of us have finally had a haircut and some have even had their eyebrows done. Vaccines are being given out and unemployment has started to fall, which we all welcome. We know how hard this year has been for our constituents and the challenge of how to help weighs heavily on the minds of many across the House. Some would say that that challenge is just about the impact of the pandemic and that this week shows that it is slowly being addressed—that it has been a horrific year with the loss of loved ones, and the shutdown of businesses made necessary to prevent transmission, but we are making it through. And let’s be honest, some people have done well in the last year. We have seen them: the ones who have been able to spend time with their families and to work from home okay—wi-fi willing. They are the ones the Chancellor is counting on to spend their savings and make his sums work—the people to whom short-term measures to keep pumping up our housing market and spending on DIY will appeal Thanks to the Chancellor’s efforts and legislation such as this, everything is neatly in place for a classic short-lived consumer-led boom. Cheap borrowing costs and the stamp duty holiday mean that the residential property market is red hot. Indeed, last November, this country paid back more than it had borrowed on its credit cards for the first time since July 2013. But to say that we are heading out of the woods and just to keep going is to fail to recognise why we are so vulnerable in the first place, why the UK economy collapsed so badly over the last year and why our communities were so at risk of harm from the virus that our death rate has been so high—the underinvestment and austerity that mean that our productivity rate is so sluggish, our poverty rate is rising and our people are not waving but drowning in their debt. We do a disservice to our communities if we underplay these issues or the scale of the task ahead We need a Finance Bill made not for the here and now, but for the long term. We cannot go back to normal when normal means 23% of our population living in destitution; when millions of people are sitting on debts and rely on insecure work in industries that will never be the same when furlough ends; when our health inequalities have worsened so dramatically over the last year In addressing those underlying problems in our economy, I can welcome much in the Bill. I recognise that it is right to look at corporation tax, given that those with the broadest shoulders should help the most with repairing our fractured economy. We should be tackling the devastating impact on our environment of plastics; with some amendments, the proposals could drive not only a reduction in use, but new industries. We should be trying to tackle tax avoidance, although I always tell Treasury Ministers that it would be simpler to ask my right hon. Friend the Member for Barking (Dame Margaret Hodge) what they should do next The truth is that the Bill takes a nut to a sledgehammer. We would do better if we were to start again, rather than continue on with the fantasy that, with a few tweaks here and there, everything can go back to normal—whatever normal is. My worry is that relying on the fantasy the Bill creates will leave millions of families abandoned who may have weathered the shock of the pandemic, but were always going to be sunk by continued austerity. While millions have benefited from working from home and being able to save, millions more are struggling to make ends meet, having lost their job or seen their income fall The Institute for Fiscal Studies found that last year the richest fifth of households swelled their bank balances by over £400 a month, while the poorest were about £170 worse off each month. This is not people spending to entertain themselves during lockdown. Citizens Advice shows that roughly 6 million people have fallen behind on at least one household bill during the pandemic. Most people visiting the citizens advice bureau for debt advice are not coming to ask about credit card debts or rent-to-own purchases; instead, they are in debt to the public sector because of tax credit overpayments, benefits overpayments, council tax arrears or utility bill arrears. The Trussell Trust tells us that over half of food bank users struggle to afford food and clothes because they are repaying universal credit debts. Anyone who questions why that extra £20 matters should look at that information and realise that it needs to become permanent In total, £10.3 billion of debt and arrears attributable to covid have built up in the UK, most often by those who were already struggling before the pandemic—people such as renters, young people, single parents and low earners; people who, now that evictions have restarted, have few options when it comes to keeping a roof over their head; and many who were excluded from Government help altogether. I see nothing in the Bill to change those facts. Indeed, instead of helping, the Bill is walloping them with a tax rise. It squeezes family finances by freezing the personal allowance, after many families will have struggled to pay their increased council tax bills as well. The Chancellor might think he is being clever by using the least visible taxes to raise funds, but I tell him this: the public will notice. They notice when nurses get a pay cut, when VAT goes up and when they have even less money left at the end of the month with which to pay their bills. They notice just how segregated this country has become, with the haves and the have-nots not just in income terms, but in the divides between town and city, north and south, because of our failure to invest in the people of this country “Freeports!” the Government cry in answer. The Bill suggests that this will somehow generate jobs and growth in communities that were struggling long before anyone had heard of covid-19, but no one can explain why, if regulation is bad for business in the Thames Gateway, it is not bad for businesses in my community in Walthamstow. This is not the levelling-up agenda we need. It does not recognise that we stand alone among OECD economies in the extent to which our productivity problems are regional rather than sectoral, or that a super-deduction scheme will do little to invest in the children of Hartlepool, Harwich or Hendon We need not just to build back better, but to build back for all. Andy Haldane has highlighted that around 10 million people in this country are on insecure contracts. Our economy was so hard hit by covid because it was over-reliant on services, which made up as much as 80% of our GDP, whereas just 14% was based in construction and just 6% in manufacturing. The Bill shows that the Government still have not learned the lessons about how we are able as a nation to handle future shocks and diversify; to invest alongside business and academia in new technologies; to learn from the vaccine programme and encourage co-operation and innovation alongside the state and not in spite of it; or, in the run-up to COP26, to provide the incentives to renewable energy manufacturing and production that could futureproof our economy for decades to come This Government have no answer to our research and development sector, which is crying out for support while they use this Bill to give a tax break that will go to the biggest corporations and venture capitalists. Our charity sector is on its knees, but it gets nothing from this legislation. Charities cannot claim the super deduction tax for their IT equipment, whatever the hon. Member for Hitchin and Harpenden (Bim Afolami) might suggest Other nations are investing in their people and infrastructure, yet our Business Secretary has chosen this moment to abandon the industrial strategy enacted just four years ago and replace it with something that is neither industrious nor strategic. Combined with the approach in the Bill, that will simply confirm what a lot of companies and investors have already suspected for some time—that it is unwise to expect any UK Government to stick to a programme of supply-side reform for more than a couple of years. Frankly, the UK has generally got away with muddling through economic crises in the past, but the scale of the challenges that we approach makes that inadequate at this point in time. And we have not even today even really begun to understand how the B-word—Brexit—interacts with these longer-term challenges, hitting as it does our high-productivity export sectors while covid hurt our employment-rich domestic service sector. But truthfully, nothing in the Bill will help those at the mercy of either factor—unless they happen to have shares in Amazon or Google, or possibly the Chancellor’s private phone number Austerity has weakened the very foundations of our economy, but it is a political choice that the Chancellor is making in this legislation to use straw dust, not concrete, to try to repair them. Parliamentary time is valuable, and tax and spending is crucial to get right in such a context, so I propose to the House that we reject the Bill today and instead demand better for all our constituents.
The Financial Secretary set out very clearly that the post-pandemic context of the Bill is unlike anything that we have faced before. What I see in the Bill is an understanding that it is not Government’s role to create growth and prosperity. Government does not create wealth or growth—consumers and businesses do that. We, like a groundsman, have the crucial job of preparing the pitch for our players. We have the crucial job of ensuring that the players—consumers and businesses—have the right pitch that they can play on to create that growth and prosperity. There is no doubt that we are playing on a really tough wicket at the moment, so we have a really tough job on our hands as that groundsman; but I think the Bill rises to that challenge With that in mind, there are two questions that I ask about the Bill today. The first is whether it maintains and secures support for businesses and consumers in my constituency and throughout the UK. In Hertford and Stortford I have spoken to so many businesses—so many pubs and restaurants, and those in hospitality—that will greatly welcome the extension of the VAT cut, the business rate holiday, restart grants and the many other measures of support that the Chancellor is delivering through the Bill. We could combine those with extending the lost carry-back, providing new VAT deferral payment schemes and extending furlough—things that I do not have time to cover. The Government are clearly innovating and continuing to provide packages of flexible support that will maintain protection for those businesses and the jobs that are still subject to restrictions The second question is whether the right combination of policies is in place to enable long-term, sustainable economic growth. That is the area most important to the long-term health of our economy, and that is where the Bill contains measures that I particularly welcome, such as the super deduction, freeports, the UK Infrastructure Bank, Help to Grow, the Future Fund breakthrough and refinements of our tax system, which will ensure that investment levels keep pace in this country and grow to support innovation and promote growth in strategically important sectors of the future—I commend the remarks on that subject by my hon. Friend the Member for Mid Norfolk (George Freeman) To keep it brief, I am very happy that with the Bill the Government have risen to the challenges that we face and I wholeheartedly support Second Reading. It gives us the pitch that we need, as the economy’s groundsman, to withstand the bouncers and the strength to knock the ball out of the park—well over the boundary—for the future. I commend the Bill and look forward to seeing its results on the ground, particularly in Hertford and Stortford.
First, I think everyone recognises that the Chancellor had a very difficult job when bringing forward the Budget and the subsequent Finance Bill. There are many things pulling in different directions. On the one hand, as the Financial Secretary said at the very start, we have to make sure that we have dealt with the impact of the restrictions on the economy and the difficulties that was causing for businesses. Secondly, we have to look at the recovery: how to recover from GDP falling by 10% and unemployment going up by 700,000—indeed, there may be other factors to come—and then, of course, we must look at the long-term sustainability of the economy. At the same time, we did not want to be sending out the signal that we are careless about the debt we have incurred, otherwise the signals to the financial markets may cause us a bit of difficulty. So no one envies the Chancellor the job he had to do Before I say anything about the objectives the Chancellor has set out, I want to make some comments about specific Northern Ireland parts of the Finance Bill. As has been discussed time and again in this House, the Northern Ireland protocol has placed considerable burdens on the Northern Ireland economy already. One of the areas affected has been the steel industry, or industries that use steel in Northern Ireland. Because of the quota system and the taxes where steel is consumed out of quota, they faced 25% increases in the cost of steel. My party drew this to the Chancellor’s attention, when others were of course trying to pooh-pooh the impact of the protocol; they supported it, so they did not want to know its bad effects, although now they cannot ignore it As the Chairman of the Treasury Committee, the right hon. Member for Central Devon (Mel Stride), has said, when the issue was drawn to the Government’s attention, it was dealt with, and I welcome clause 97, which tackles it. It ensures that engineering firms in Northern Ireland, which do have considerable global markets, but would have found those global markets affected by the 25% tariff, are now exempted from that. I would just point out to Members that one of the major landmarks in London is the Shard, and the steel for the Shard was cut, packaged and sent in sections from Fermanagh in Northern Ireland and is now part of one of the iconic buildings here in GB. Many engineering firms of course export heavy machinery, and the steel tariff would have been extremely onerous on them I am disappointed, however, about other issues that we were told would be dealt with in the Finance Bill, such as the customs regime that has caused huge costs in Northern Ireland. Customs declarations for even the simplest thing now have to be made for goods coming from this part of the United Kingdom to Northern Ireland, which has added considerably to costs. I was speaking to a firm today, and on average—and it does not even matter what the size of the order is—the cost of customs declarations, supplementary declarations, frontier declarations and the guarantee management system arrangements adds £20 to an order. When the firm ordered a specialist screw that cost 35p, there was a £20 surcharge on it because of the arrangements under the protocol. I was hoping the Finance Bill would deal with some of those issues, but it has not, and I think the Government will have to come back to them Let me come to the issues the Chancellor had to deal with. I do not think anyone can deny that the Government took the right course of action. They had no option in my view. When they decided that they were going to close down the economy, they could not abandon workers, firms, businesses and so on, so huge amounts of money—over £400 billion—have been spent on support. As a Unionist, I keep on reminding people in Northern Ireland that the support that businesses have had, as well as furlough payments that workers are still getting, self-employed payments and so on, are owed to the fact that we are part of the fifth biggest nation in the world and, without the support of the Exchequer in the United Kingdom, we would not have been able to find a way through. Of course, the health service has also benefited from the vaccine programme. On that aspect, the Government have made the right choices and those clamouring for independence, even if they have no emotional ties to the United Kingdom, ought to remember the economic benefits of being part of the United Kingdom At the other end of the scale, looking to the future and having a sustainable economy, the Finance Bill deals with many of those issues. We have already had a discussion today on the tax allowances, which have been maligned by the Labour party, but they are designed to ensure that businesses across the United Kingdom have an incentive to use their profits to invest to increase productivity and competitiveness and to benefit from the opportunities that Brexit will bring us in doing deals across the world. Spending on apprenticeships and training will increase the skills of our workforce and prepare those who need to move into new industries with the skills they will need, again increasing productivity and competitiveness There has been some debate about the value of freeports, but they, too, will help to deal with the long-term sustainability of the economy. My main concerns are on the aspect that concerns most people in the immediate period: does the Finance Bill deal with the issues that must be addressed to get us back from where we are at present and help us to start growing the economy? I will look at the figures given in four areas. Let us take the income tax proposals and the freezing of allowances. I understand that the Government have not increased tax rates, but the freezing of allowances will increase the tax burden. If we are relying on consumer spending to aid our recovery—do not forget that 80% of our GDP is consumer spending—even though there may be some pent-up unspent money and demand, when we nevertheless consider that as a result of the proposals over the next five years we will take 25% more in income tax from people in the economy, and 10% more in the next year, we must ask: will that dampen the immediate increase in GDP and the immediate demand we require to get businesses going again? Let us look at VAT. Yes, I welcome the rate for the hospitality industry being held until September, and then there will be a reduced rate until March 2022, but I speak to businesses in the hospitality industry who have already expended considerable amounts of money converting their premises to make them safe and, even though they have had support over the last year, many have still had to dip into their reserves because not all their costs were covered. One hotelier in my area told me that in the last year he has spent £3 million of his own money paying those bills that still come in and for which he was not given any support, and no support was available. Businesses will therefore find themselves in a perilous position and we do not know how quickly they will be able to operate fully. When will restaurants be able to have people sitting inside? When will pubs have people sitting inside? While still social distancing many will be operating with lessened capacity, and if they cannot do that, their profitability will be affected. Yet even before all the restrictions are lifted—they will be lifted at different rates in different parts of the country, and in Northern Ireland we do not even have a date for restaurants and pubs being allowed to open—we find that some of that support will be removed My third point is about business rates. Again, if we look at the impact of business rates over the next five years, the impact of the Budget means that in money terms, the business rates take across the economy will go up by 50%. In the next year it will go up by 20%. That is a considerable burden on businesses that are coming out of a difficult period, that have not built up cash reserves, and that still do not know exactly how the economy and the demand for their services will increase Corporation tax has been mentioned, and on one hand—I have some sympathy for this—those companies that invest will get the super allowances. However, because of the increase in corporation tax and so on, over the next five years covered by this Budget, corporation tax take will go up by 112%, or 20% over the next year. If we are looking at how to stimulate recovery, we must ask whether taking that amount of money from consumers, businesses, and the hospitality industry will reduce the impact of the Budget and make it more difficult for the economy to recover My final point is about air passenger duty. Air passenger duty is going up, and over the next year, the take from that duty will increase by 50%. According to Red Book figures, over the five years of this Budget it will go up by 300%. This industry is currently in the doldrums. It has no prospects, because we do not know when international travel will be allowed again. It has already had a considerable drain on it, and there has been no specific strategy for it as there was for the hospitality industry. In many areas of the United Kingdom, especially areas such as Northern Ireland where we rely almost totally on air connectivity, there has been an impact from the reduction in flights. I came here yesterday. There was one flight from Belfast City airport. That is putting airports under severe strain, yet when we consider the proposals in the Finance Bill, we find that rather than there being any help for this industry, which has been particularly badly hit, the proposals in the Bill represent a huge cash take from that industry in the next year and over the next five years For those reasons, although I commend what the Government have done regarding the particular problems caused by the economic decisions made to deal with covid, and I commend their long-term strategy in considering how to make the economy more sustainable in future, there is a big gap regarding what impact the Bill will have on the immediate recovery. We are going to have a difficult period. Once furlough finishes, we do not know what the impact on the economy will be, what the redundancies will be like, and what that does. The proposals in this Finance Bill, I am afraid, do not give me any optimism that the right decisions are being made. Some support did need to continue to be given. In their desire to reduce the debt and bring in more revenue, the Government may well have made the wrong decisions that will stymie our recovery and have impacts on many areas, especially those that are most vulnerable to downturns in the economy, including regions such as Northern Ireland.
I have declared my business interests in the Register of Members’ Financial Interests. I strongly support those MPs from Northern Ireland who are urging the Government to move on and make sure that we can restore the important trade between Great Britain and Northern Ireland. It has been damaged. The EU is being too intrusive. The Northern Ireland protocol clearly sets out that the United Kingdom is a whole and has its own internal market. It states that Northern Ireland should be fully part of that market, and that is not true today, so I urge the Government to take control over all trade that is internal—trade from GB to Northern Ireland and not going on to the Republic of Ireland, therefore not of concern to the European Union—and to ensure that it runs smoothly That is just one part of a much bigger picture that we need to fuel a strong recovery. Of course I agree with the Government that the current level of deficit is unacceptably high and we cannot go on with deficits on that scale indefinitely. I also agree with the Government that it must be a one-off, and the Government did need to be very generous, given all the damage being done to individual livelihoods and businesses by the health measures being taken to combat the pandemic. But all the time that restrictions and adverse measures are in place for health reasons, the Government should continue to be generous. People and business need support. We want people to be available to go to work and businesses to be available to produce goods and services as soon as they are legally allowed to do so It is a big cost, but it is manageable. We are seeing around the world that many Governments are having to do the same thing, interest rates have stayed very low and, so far, the debt has remained affordable. I encourage the Government to understand that the deficit will collapse very rapidly as soon as the controls are off and all those policies in place to promote a fast economic recovery take effect. We are going to have a much faster recovery than normal once the controls are off, because we had a much bigger fall thanks to the controls themselves, which, in an unprecedented way, stopped people working and stopped businesses trading The Government should take some encouragement from the United States’ example. The United States’ monetary stimulus and fiscal stimulus are huge. If we adjust for the size of the economies, the stimulus under the Federal Reserve Board’s actions and President Trump and now President Biden is about twice the scale of the UK stimulus in monetary terms and is considerably higher in fiscal terms. Perhaps the US is taking more risks with inflation than we would like. I am not suggesting that we need to match the American numbers, but I am saying to the Government that we are nowhere near the American numbers, so worry not. This is the time for stimulus—this is the time to make sure that the economy is properly supported and people can get back to work With that in mind, I urge the Government to look again at the idea that we need tax rises in the years ahead. If we threaten too many tax rises, it will damage confidence. We will put people off investing here and make people nervous about spending and make them want to save more. This is the time when we need people to spend, to recreate those jobs and get businesses going again. This is the time when we really need businesses to want to come to the United Kingdom or to stay and grow in the United Kingdom, because we need that massive investment. We are short of capacity in all sorts of areas. We have had too much deindustrialisation over the last few decades, and now is a great opportunity to promote it. The Government recognise that with their short-term measures to boost investment, but they may need to show that we are going to have a very benign climate on business tax after the initial impetus and stimulus is offered. If people think that we are going to gravitate to the average or to a higher tax regime, it will put them off I pray in aid our neighbour the Republic of Ireland, which has been extraordinarily successful by having an extremely low corporation tax rate. It is 12.5%—a knockout low rate—and what has happened? First, the Republic of Ireland collects far more as a proportion of its total tax revenues from business than us or other European Union countries, because so many great companies have gone there and book a lot of profit there, since the rate is obviously agreeable and favourable The Republic of Ireland also has a much higher GDP per head. It is more than twice the EU average, and it is considerably higher than the United Kingdom’s. That is entirely because the Republic of Ireland has this extremely attractive tax policy, which has been so successful in attracting a lot of inward investment, a lot of jobs based on that, and a lot of turnover and profit booking, particularly from great American corporations I do not know how that will work out now that President Biden is encouraging a minimum rate, which would mean almost doubling the Irish rate; we will have to see. However, in the meantime, if anyone doubts the power of lower rates to generate prosperity, greater GDP per head and, above all, greater tax revenue, they should look at the Irish example, which is very vivid I would like to see the Government speed up with their freeports and be very generous with both the number of freeports and the areas they cover. I also urge the Government to be as friendly as possible to business on taxation and on permits over what to do with the land and how to create all those extra jobs we wish to see. It is an interesting initiative, and the sooner it is rolled out the better. Surely, this is the time we need it—when we need to promote recovery. I also say to the Government that we need our small business community to get back on its feet and to be able to trade again successfully. Small businesses have had a lot hurled at them, and some of them did not manage to benefit from all the schemes that the Government put forward, so they have been particularly hard hit by up to a year of lockdown or impediments to their trading and their normal work I do not think this is the time to be looking at new taxes on small businesses and the self-employed. I do not think the IR35 idea is a particularly good one. It would be good if there were more forthcoming to promote small businesses, which we are going to need. They will have flexibility and the ability to respond. If every self-employed person were able to take on an extra employee, it would transform the employment position, but that requires patient work on ensuring that it is affordable and that the administrative burden is not too great, obviously without undermining important protections for individuals as employees, which we rightly value We need flexibility and support from the Treasury and the rest of the Government to understand how important small businesses and the self-employed will be to trigger this revival and to build back in a different way—to build back better, as they are saying on both sides of the Atlantic and as this Government are saying. That implies doing different things, and it requires the innovation and the productivity-driving measures that can come from small companies and the self-employed, who need to be flexible There is a huge amount to be done, but the Government should be of good cheer. There can be a very rapid recovery. They have not done too much on the deficit or the monetary stimulus and have fallen quite a long way behind America in the size of the stimulus. They should be ready to do more, be generous if the controls have to go on longer than we would like, and work with the small business community and the big business community on what is a sensible tax regime. There are issues still to be solved on business rates and VAT. The whole purpose of the reviews should be to promote a strong recovery—better jobs, more better-paid jobs, more small business—and then the revenue will flow. Think of the jobs, the incomes and the prosperity, and the revenue follows. Thinking too much about the revenue first, in the mood of putting everybody’s taxes up, will be a great dampener on the recovery we need.
It is a pleasure to follow my right hon. Friend the Member for Wokingham (John Redwood). My comments relate to the small and medium-sized enterprises that he was talking about so passionately. The sage of Omaha, the great Warren Buffett, once said that what we learn from history is that we do not learn from history. I particularly want to look at what happened to the SMEs after the last recession—the global financial crisis. It was the five years following 2008 that were so destructive for SMEs, and I am very keen to ensure that we do not make the same mistakes again. I draw the House’s attention to my entry in the Register of Members’ Financial Interests I was interested in the comments of the shadow Minister, the hon. Member for Ealing North (James Murray). On tax avoidance, he must never have heard about the diverted profits tax or the digital services tax; they are very key measures. One thing about the DST that should be looked at—perhaps he will join the calls for this to be looked at as well—is that direct sales of Amazon are not covered by the digital services tax. That gives Amazon a competitive advantage over the other sellers on its platform, which cannot be right The Government are consulting on business rates reform and have three ideas: a land value tax; an online sales tax; or VAT. I strongly urge the Minister to consider VAT as a replacement for business rates, which I advocated in my ten-minute rule Bill The shadow Minister talked about social care a lot. He mentioned many problems, but did not come up with any solutions. One solution that I have advocated long and hard in this place is a German-style social care premium, which, hopefully, will feature in the Green or White Paper that is due to come forward shortly The Government have included many things in this Bill for SMEs. A typical SME is very grateful for the support that it has received from the Treasury, which has done a tremendous job in concert with its various agencies, introducing the job retention scheme, VAT discounts, and rates grants, particularly rates discount The Government have also introduced some very good loan schemes. I speak as co-chair of the all-party group on fair business banking. A very wise commentator said at the start of those loan schemes that the Government would not lend £1 billion using those loan schemes; some £75 billion later, we can see the success of those schemes. That, of course, has led to an unprecedented level of debt among SMEs in this country, which is what I am particularly worried about. On top of that are the new loan schemes coming from the recovery loans, which will be more difficult for SMEs to access. Unlike the other schemes, there is a forward-looking viability test, which will be challenging. Either way, it will mean that many SMEs are carrying lots of debt, which they will struggle to service over the next few months and years Furthermore, what will happen when the Government pull those schemes and let the banks go on their own in terms of lending? After the last crisis, banks were not very good at lending to the SME community from their own resources—bank lending to SMEs reduced by 25% between 2008 and 2013, just at a time when SMEs needed it. In Germany, where there is a high proliferation of regional mutual banks, which take a much more patient approach to SMEs, lending went up by 20% from those bodies. A policy that we should really push in this country is decentralising our business banking system, so that, rather than 80% of lending coming from large banks, we move towards a more regional, mutual, not-for profit system of banking, which would have a transformative effect in terms of lending to the productive economy The key thing in terms of making sure that SMEs are treated fairly is in the forbearance process. When businesses hit trouble, they need to be treated fairly and consistently. The Government did absolutely the right thing with bounce back loans. They set up a framework for how it would work, which lets SMEs take 12 months interest free, or payment free. They can take another six months of no payments whatsoever, and then another 18 months of interest only. They can also extend the loan to 10 years from the standard six years, which more than halves the payments on bounce back loans, which is great, without getting into any credit problem with their bank Similar measures do not apply to coronavirus business interruption loans or the larger scheme, CLBILS. That leaves businesses on their own. I urge the Government to work with the banking system to ensure that businesses of all shapes and sizes that have accessed these loans to help them through the crisis have these forbearance measures at their disposal without them having to go cap in hand to the bank. We know that banks are not very good in these situations when their money is at risk. Their shareholders need returns. We need support for SMEs Personal guarantees are also an issue, which will come as a surprise to many. I have put personal guarantees up for my business lending most of my life. If someone puts up a personal guarantee, most people think the bank will go to the business first, look at the business assets and realise those before it goes to personal assets. That is not the case—it does not have to do that. It can go straight to personal assets. The Lending Standards Board put in place a policy that banks should look at business assets first before going to personal assets, which has now been dropped from its regulations or guidance. I would very much like to see that brought back in, particularly at this time Thankfully, there is now dispute resolution in the form of the Financial Ombudsman Service and the Business Banking Resolution Service. All businesses with a turnover of up to £10 million will get access to free dispute resolution, which should mitigate some issues, but there are concerns nevertheless. I urge the Treasury to look at this point and make sure that businesses are treated fairly over the next few years in the fallout of this crisis.
I, too, pay tribute to Prince Philip; in tribute to him, I am wearing my father’s tie. Like Prince Philip, he served in the Royal Navy in the second world war. He lost his own father at the age of 12; Philip was, of course, estranged from his father at 13. Both fought the Nazis I mention this partly because the main conflict there was the battle of the Atlantic, which was the attempt by the Germans to starve Britain. In 1939, half our meat, 80% of our fruit and 70% of our cereals were imported. Last year, 80% of our food was imported. Thanks to the botched Brexit deal—there was no mention at all of this in the Budget—we now have the prospect of self-imposed food shortages. In January our exports to the EU, our largest market, were down more than 40%. Imports were down by 29%. They will go down more when we introduce non-tariff barriers. The reality is that in Britain today, a carrot pulled up in Spain on Monday could be on our shelves by Thursday. That will no longer be the case. We face the prospect of food shortages and food inflation The Office for Budget Responsibility found that the botched Brexit deal would cost the economy 4% within 15 years, and something like 1.4 million jobs and £1,300 each. The reason we are seeing tax increases, taking us to a share of taxes not seen since the 1960s, is not the pandemic, which is a one-off hit that will be recovered, but the ongoing problems of the botched Brexit. We need to remember that. We need to look towards better realignment and better trade with our closest marketplace The other thing to bear in mind is that last year something like 1 million people from the EU left this country to go back to Europe. Many will not come back, partly because of the hostile environment here, and that creates an issue about the size and quality of our labour market when it comes to productivity and production. The EU is already questioning the legality of our breaches of the Northern Ireland protocol and there is a question mark over divergence of standards and protections in the future that might lead to tariffs. If we manage this badly, we may be hit even harder For those on the Government Benches who say, “Oh, don’t worry—we’re opening up loads of other markets,” it is worth remembering that, the Japan deal, for example, is worth £1.5 billion to GDP, but if it had been done through the EU, it would have been worth £2.6 billion, because it can negotiate a better deal because it is bigger The truth is that while the Government are spending enormous amounts of money on covid, that is not really the explanation for the massive personal tax increases that Britain will suffer The other thing to mention about productivity, other than the loss of young workers to the EU, is that not only have we had the highest rate of death in the world from coronavirus, but there is clearly a move, once we have got people over 50 vaccinated, to be reckless again. The issue is the fall in productivity of younger people with long covid. We all know anecdotal examples, but we do not know the full impact of that. I have knowledge of music students, for instance, who have had a shake—a violinist—or who cannot blow the trumpet as well because they have lost lung capacity. These issues are significant for the overall productivity of our economy in the future On the workforce being fit and ready to work for our recovery, we should also think about the fact that in today’s Britain, 7.6 million people are living in hunger, 1.7 million of whom are children—it is an absolute disgrace. They are left in food insecurity, as the UN calls it and as the Environment, Food and Rural Affairs Committee recently reported. In essence, that means that they do not have sufficient nutritious food on a daily basis. That is deplorable Interestingly enough, in 1952, when the Queen came to the throne and Philip was 35, rationing was still in place for sugar, butter, meat, cooking fat, cheese and so on. In that year, Aneurin Bevan, the founder of the national health service, famously wrote “In Place Of Fear”, in which he warned that while we had to confront poverty and that it was difficult to define, the basic requirement was to ensure that there was no hunger. He warned that if millions were left in hunger, our civilisation would be at risk. It is certainly the case that we now face a depleted, physically weakened and hungry workforce. That surely is not the recipe for the productive economy that we need for the future. On top of that, our youngsters have lost a year in education—[Interruption.] I apologise for that, Madam Deputy Speaker The Government say that they have spent a lot on coronavirus and of course they have, but we have read in the newspapers and elsewhere that, in many cases, the money has not been well spent—personal protective equipment, track and trace and food parcels that have been done through Tory party dealers. We have also heard about David Cameron being involved with Greensill. There are question marks about how well this Government are treating taxpayers’ money When it comes to the Chancellor, of course we know that he was a founding partner of the hedge fund, Theleme, which presumably had a partner stake. We do not know about that because those tax returns and details are in the Cayman Islands, but we do know that that particular hedge fund appreciated in value from something like £7 billion to £39 billion shortly after we heard news that the Health Secretary had ordered 5 million doses of the Moderna vaccine, in which the hedge fund had invested. We do need to get to the bottom of these things and find out what happened. If it was the case, for example, that the Chancellor had, say, 15% of that hedge fund, his share of that increase—
Order. I do think it is quite important that we address some of the issues in the Finance Bill, so I am sure that the hon. Gentleman will be doing that.
Thank you very much for that advice, Madam Deputy Speaker. I was just going to turn to the nurses’ pay increase. Had the nurses been granted a 5% increase in pay in this Budget, that would have cost £1.7 billion gross, but in fact, after looking at the recovery of taxes from both income tax and sales tax—consumer tax—we see that it would have cost just £330 million a year. On my calculation, that is about a 10th of the value of the appreciation in the hedge fund that I was mentioning—the 15%—that would have been privately earned by the Chancellor. Obviously, we need to have these figures disclosed. I am trying to put in context the fact that we can afford to pay the nurses a decent wage. There are tremendous amounts of money moving around at the moment and we do not really have a proper tie on it We should contrast that with what is happening in Wales, where we have a more effective system of track and trace, PPE is bought more effectively, food parcels are not bought privately but down to local authorities, and the sickness rate and death rate from coronavirus are much lower. We should contrast it with the way that money has been invested to help business. The Chancellor has put money into cutting stamp duty, and lots of that has been spent on second homes—but not in Wales—because that money is not well targeted where it is needed. Money has been given to large businesses with large properties, but again not in Wales, where the larger supermarket stores with big properties will not get the council tax relief because they are making extra-normal profits during coronavirus. The issue is investing money where it is most needed Turning back to the nurses, in Wales we have the highest proportion of single earner households in the country and the lowest average wage, which is 70% of gross value added in terms of the UK average. These people might include a nurse as the only earner in a poor household who has faced nearly 10 years of pay freezes and now another pay cut. It is no surprise that nurses are going to food banks. These things are not necessary; they are political choices. I am just drawing the contrast between those who have so much and those who have not enough. Mention has been made of Amazon and the fact that it and others have basically decimated our physical retail side. There are questions about what should be done about that. In my view, local authorities should be empowered to provide digital marketplaces to support local businesses to sell to local people with overnight delivery so that people would have a choice between sending their money offshore to some huge American organisation that does not pay tax, is destroying local jobs and undermining workers and supporting local businesses through a collective approach with a modernised online service We have of course elections coming up, as you know, Madam Deputy Speaker, and people are making these financial choices and comparisons—including, in Wales, those aged 16 to 18. In this Budget, prescription charges in England are now going up to £9.35, whereas in Wales people do not pay for prescriptions. In Wales, we have ensured greater safety by giving advice that people do not travel more than four or five miles, whereas in England people could go wherever they liked. In Wales, a two-metre rule was put into legislation—
Order. May I just interrupt the hon. Gentleman again and say that we really need to address the Finance Bill? I think the feeling is that perhaps he might be bringing his remarks to a close fairly shortly.
Yes, that is my feeling as well, Madam Deputy Speaker. I was simply making the case that owing to a more cautious approach in terms of coronavirus, we have got to a situation where productivity is better supported I will bring my remarks to a close as you suggest, only finally to say that we need to do more on the issue of climate change and the environment, because 64,000 people a year are dying from air pollution, while nothing has been done about diesel or accelerating towards electrification. We need to look at a different approach whereby we can generate growth and opportunity for the future.
It is a pleasure to follow the hon. Member for Swansea West (Geraint Davies). Before I begin my short remarks on the Finance Bill, I would like to put on record—because I was not able to be here yesterday—my condolences and those of my constituents to Her Majesty the Queen on the death of the Duke of Edinburgh This Finance Bill follows a year of unprecedented economic disruption unknown in the modern era, as well as a year of unprecedented support from the Government to business and individuals, ensuring not only their jobs but their lives and livelihoods. That has been true for millions of citizens, including those in my constituency of Wimbledon. This Finance Bill therefore needs to enact measures that ensure not only that our economy is in a place from which to recover and bounce back, but in one from which we can also see sustainable future growth—growth that is clean and green We all know the OBR forecasts that were set out in March; I will not reiterate them now. What is clear to me from reading economic commentators since then is that people are now expecting the economy to grow more quickly and more strongly, and for that recovery to be more sustained. That must be in large part due to measures in the Finance Bill that build the necessary confidence and give people necessary security for the future, including the extension of the universal credit uplift; the one-off £500 to those on working tax credit; the job retention scheme; and the self-employment income support scheme. All those measures are combined with the restart grants of up to £6,000 for non-essential retail and £18,000 for hospitality businesses. Those provisions are now extended to my constituency; initially the £51,000 threshold was not in place. I have to say to the Treasury Bench that I am extremely grateful on behalf of the hospitality industry in Wimbledon My hon. Friend the Exchequer Secretary to the Treasury will not be surprised that I wish to make two very quick points about the people who have been left out. First, I make the plea yet again on behalf of the English language teaching sector. Those schools received no support and are hugely important to constituencies across the country. Secondly, I know that my hon. Friend will have read clause 117 and schedule 29 on the prevention of tax avoidance and promoters of tax avoidance schemes. The explanatory notes state: “This clause and Schedule have also been introduced in order to see the responsibility for the obligations within POTAS, and for any failure to comply with them to be placed on the people and entities behind the schemes.” I have to say to my hon. Friend that a number of us have stood up for what we believe to be hard-working small businesspeople who have been in those schemes and recommended those schemes, and we feel that if that clause had already been in place, many of those people may not be suffering from the problems of the loan charge now. Even at this late stage, if she has the chance to talk to colleagues about this issue, we would be very grateful It is clear that we need a Finance Bill that looks at investment and improving infrastructure, so that we see improvement in productivity. I listened carefully to the remarks of my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami), who set out the clear economic rationale for the super deduction. It is a vital measure to encourage business to invest now. Historically, the UK has underperformed; we have failed to invest at similar levels to our economic peers. It is investment that drives some of the factors that I mentioned a moment go when it comes to improving productivity. Therefore, supercharging investment through a super deduction means that we are likely not only to strengthen, but to lengthen the economic recovery. That seems an entirely sensible, welcome and rational economic measure It is also likely that we want to see measures that improve not only physical infrastructure and capital formation, but human formation. I particularly welcome the support for new apprentice hires in the Bill. I encourage the Government to think a bit more about this, as it is the way of the future. Could we not link the new apprentice scheme to, for instance, the length of the super deduction? The super deduction is in place for two years, while the new apprentice scheme is in place for six months; I encourage the Government to think about linking the two. I know that my hon. Friend the Minister will recognise that human capital formation and investment in skills are as important as physical formation. Like many colleagues, I was fascinated to hear the contribution from my hon. Friend the Member for Mid Norfolk (George Freeman), who spoke at length about driving growth through innovation and the adoption of new technologies. Of course he is right. When one talks to a number of the people at whom the super deduction is aimed, one learns that it will be commonplace—it almost is now—that they will be investing in things such as AI, 3D printing and big data. Alongside that, we will need a workforce that has in-demand skills, so I particularly welcome the investment in digital skills and the lifetime skills allowance that the Bill will introduce Many Members have referred to the freeports policy, which clearly brings the opportunity to boost jobs in regions and to boost economies through the use of differing tariff regimes for different sectors. My hon. Friend the Minister will know the principal criticisms of freeports—that they merely redirect economic activity and investment May I talk about next year’s Finance Bill, Madam Deputy Speaker, just for a very brief moment?
This is a debate on this year’s Finance Bill.
I urge the Government to think about learning the lessons of economic history in respect of the power of putting wider economic development zones and the encouragement that they bring alongside freeports. We all recognise that such zones need seedcorn grants from the Government; that could give the Government the opportunity to consider local recovery bonds. We have already seen the prospect of the green infrastructure bond; why do we not see some local recovery bonds to sit alongside that work and boost economic development zones? That would seem to me to be a perfectly sensible development The Chancellor is absolutely right to focus on infrastructure spending and investment. Infrastructure is not an end in itself—it is the driver of growth and productivity—so the policies coming through and the measures in the Bill to allow the increase in transport spending and in departmental spending limits are welcome. I also welcome the establishment of the UK infrastructure bank. It is the private sector that will drive the investment that is necessary As I said a moment ago, the green gilt is welcome, but just as I urge the Government to think about local recovery bonds, I urge them to think about an infrastructure bond. As many will know, there is a consultation on the capital cap for pension funds; if that change is combined with an infrastructure bond, we could see a wealth of pension funds looking to invest in the UK’s economic recovery Finally, the jewel in our crown is undoubtedly financial services. A few moments ago my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) talked about the need for mutual banking and to encourage small banks. I urge the Government to think about a review of the regulation of financial services and banking to ensure that the regulation with regard to conduct and capital is competitive and appropriate. That will drive not only those sectors but the investment that will sustain the economic recovery that everyone in this House seeks.
This Bill is a catalogue of hard choices unconfronted, challenges ducked and emergency measures to deal with the pandemic used as a fig leaf for the failure to face up to long-term challenges We have heard a great deal in recent months about the Government’s approach to public procurement—how personal friends of Ministers get to jump the queue when contracts are being handed out. We have heard a great deal in the past few days about how friends of the former Prime Minister get preferential access to Treasury officials to make the case for financial support In keeping with that theme, the Chancellor presented a Budget for selected beneficiaries. Carefully handpicked groups are going to do well, but it was clearly not a Budget for the nation as a whole. We could have had, for example, a bold move on business rates. Real reform in this area to level the playing field between high street and digital retail has been long overdue. I was delighted to see retail and hospitality reopen across my constituency yesterday and I hope that predictions of a retail boom, funded by savings built up during the pandemic, will materialise to the benefit of our small businesses, but consumer behaviour is changing and that change has been accelerated by the pandemic. What is the long-term future for our town centres? How will our communities thrive without the retail businesses that traditionally provide the heart of our towns We need to lower the barriers to entry to retail and other town centre businesses, and invite new entrepreneurs to try new ideas. However, instead of business rates reform or devolution of power to local authorities, which could have allowed for real change across the whole country, a select few high streets, mostly in Tory-supporting constituencies, get a cash bung. What is the long-term plan for the retail sector and for small businesses in our high streets? These businesses support our communities, providing flexible and well-paid jobs. They support entrepreneurship at all levels and in particular provide opportunities for women Small businesses of all kinds will have breathed a sigh of relief at the Government’s announcement that they plan to continue furlough and business rates holidays until the end of September, but what will happen then? I worry that there will be a huge spike in unemployment when furlough ends and I see nothing in the Budget that will address that. The Liberal Democrats are calling for the Government to cut national insurance contributions for small businesses in order to boost employment in this sector We have also seen very little action for those groups that have been excluded from financial support during the pandemic. What frustrates me is that so many of the sectors that have been hardest hit are the very same that we should be investing in as key strategic industries that can provide future growth for the economy as we move out of the pandemic. In particular, the cultural sector, the travel sector and the live events and exhibitions sector have been left scrabbling for support, with many of their contractors and freelancers excluded from help. The continuing failure of the Government to help those individuals is completely baffling. When the cultural sector is reopened, it will struggle to find skilled staff as so many will have been forced out of the sector by financial necessity and will find it extremely difficult to come back I would like to take this opportunity to mention again that many people who were excluded from help were contractors moving between pay-as-you-earn contracts, which they were forced to take on because of the IR35 regulations that the Government are still insisting on introducing. Had they been able to continue as self-employed, they might have qualified for help The biggest opportunity missed, however, is the fight against climate change. We have heard many warm words on global warming from this Government. They appear to have grasped the magnitude and immediacy of the crisis we face, yet they have no plans for action. The 10-point plan for a green industrial revolution, released before Christmas, announced a wide range of aspirations, but no concrete policies or spending commitments. The Budget continues that trend. Liberal Democrats welcome the new direction to the Bank of England to take account of climate change, but that is a small drop in an ever-deepening ocean of what needs to happen if we are to take the necessary action The Government have shown with this Budget and Finance Bill that they are not serious about achieving net zero and creating a green recovery. They have gone as far as scrapping the industrial strategy, leaving businesses in the dark about how the UK will tackle climate change and achieve green growth in the years to come. The Budget promised to re-establish a new infrastructure bank, which merely replaces the green investment bank established by the Liberal Democrats in 2010 and sold off by the Tories in 2016. There was nothing on extending the green homes grant scheme, which could have tackled fuel poverty and cut energy bills for millions of homeowners while cutting emissions—and since then the Government have scrapped the scheme altogether. The Government even failed to cut VAT on home insulation products to encourage people to invest in their home themselves. There was nothing on increasing incentives on electric vehicles, including VAT cuts or new grants. There was nothing on investing in more public transport or new walking and cycling infrastructure. Liberal Democrats wanted a Budget to kickstart the green recovery, but the Conservatives have failed to deliver. We must see a bold green recovery plan that will invest £150 billion in the next three years to tackle climate change, create new green jobs and help us to grow our way out of this crisis What is the Chancellor’s plan for investing in sectors that will create jobs? It is freeports in selected sites, yet there is little evidence that they increase economic activity rather than displace it. Again, we see the benefits concentrated in preferred areas of the country, rather than a strategy for the country as a whole. The one advantage of freeports, of course, is that they can avoid the customs duties and paperwork currently creating such a barrier to trading, thanks to the Government’s terrible deal with the EU. I find it extraordinary that the Chancellor has made no mention of how he plans to offset the OBR’s projected 4% hit to the UK’s GDP as a result of leaving the EU. He is bringing forward planned economic activity or concentrating it in specific areas of the country, rather than investing in new sources of wealth and future jobs. This Budget ignores the real needs of our economy, both for the immediate challenges of the pandemic and for its long-term future.
It is a pleasure to follow the hon. Member for Richmond Park (Sarah Olney). I welcome the Bill, which delivers on the Budget. The Budget struck the right balance, providing the immediate support that businesses need to enable us to begin the economic recovery from the past year, paving the way for sustainable growth in the mid-term and laying the ground for some of the tough decisions and challenges that we are going to face in the years to come to balance the books I particularly welcome the measures to support the hospitality sector. I speak as the chair of the all-party parliamentary group for hospitality and tourism, a sector that has been among the hardest hit as a result of the lockdowns. All the measures that were in the Budget, including extending the VAT cut and the business rate holiday, the additional round of grants, the extension of the furlough scheme and the additional self-employment income support scheme, have been hugely welcomed by the many businesses in my constituency that rely so much on tourism and hospitality. I also very much welcome the extension of the universal credit uplift, which will be vital for many families to support them through the rest of the spring and summer There is lots in the Budget and the Bill to welcome and support, but I just want to raise one element that I have grave concerns about. It relates to clause 98—I know that the Minister will be aware of this as I have already raised it with her—and it is the removal of the red diesel entitlement. Let me make it clear that, in principle, I absolutely support this measure. We need to move people and businesses away from an over-reliance on diesel and towards a cleaner and greener form of fuel, but I am concerned about the impact that the speed with which this measure is being introduced will have on one particular sector. I welcome the fact that agriculture and fishing will be exempt from this change and will continue to be able to use red diesel. That is vital for constituencies such as mine that have many businesses in those sectors, but there is another sector that is very important to my local economy: the mining and quarrying sector I should place on record that I am the chair of the all-party parliamentary group for mining and quarrying. For more than 150 years, mid-Cornwall has been mining the highest-quality china clay in the world and exporting it around the world. This industry is still a vital local employer and a significant part of our local economy. The removal of the red diesel entitlement from businesses in this sector is going to cost businesses in my constituency alone more than £10 million a year. That is £10 million that is going to be taken directly out of our local economy I absolutely understand the Government’s rationale behind the decision to move people away from diesel towards alternative fuels to help to reduce their environmental impact and to help us as a country to move towards our net zero target, but the fact is that much of the heavy gear used in the mining and quarrying sector just does not have an alternative to diesel. The technology does not yet exist to provide an alternative form of cleaner energy. The sector will therefore bear the brunt of the Government’s decision to introduce this change from next April in the short term. Let me also make it clear that the sector is not resistant to moving to clean power, and it has already done so where alternatives are available, but in many cases the technology is not yet available to replace some of its heaviest machinery with cleaner alternatives. It seems unfair to penalise businesses that are willing to move to cleaner fuels and sources of power but are unable to replace their diesel-powered equipment at this time. In the coming years, alternatives are likely to be developed, but I am told that we are probably at least five, and perhaps 10 years away from there being a viable commercial option. Imposing the change next year will mean that businesses face additional costs that they simply cannot avoid, which seems counterproductive As is often the case when decisions such as this are made, there are unintended consequences. The sector provides much of the raw material for our economy, particularly in manufacturing and construction, yet it will be unable to absorb the additional cost, which will result either in job losses or in rising costs. The Government’s ambition is to invest heavily in infrastructure and housebuilding. It seems strange, just at the time when we want to invest significant sums in building, to introduce a change that is likely to result in increased costs All this is unlikely to have any beneficial impact on the environment. There will be no reduction in emissions. Diesel will still be burned by these heavy-duty bits of kit because there is no alternative. It is not as though there will be a shift away from diesel to something else, because alternatives do not yet exist. If the aim of the measure is to reduce emissions, in the short term it is unlikely to achieve it. In fact, it could actually increase the environmental impact, because if it results in UK businesses becoming uncompetitive or, worse still, going out of business, we will end up importing these materials from countries that are burning diesel and increasing the carbon footprint I ask the Treasury team to look again at the speed at which the change is to be introduced. Let me be clear: I believe it is the right decision; I just question the timing of implementation. We need to give the quarrying and mining sector the time needed for new technologies to emerge, so that the sector can find alternative fuels before this significant additional cost is imposed I wholeheartedly support the Bill. It contains the right measures that our country needs now. I simply ask the Government to look at the speed of the removal of the red diesel exemption, particularly for the mining and quarrying sector, to give it time to adjust and the economy time to recover before the additional cost is imposed.
The coronavirus crisis has not just been a public health emergency; it has been a social emergency as well—a social emergency worsened by the Government’s catastrophic handling of the crisis, which, as the Office for Budget Responsibility says, led to one of the worst economic downturns of any major economy Of course, for some, the pandemic has not been half bad—in fact, it has been a very good crisis for some. Serco and the like have been able to use the crisis to get their hands on contracts that should have been in the public sector, and boosted their profits. We have seen how contracts worth billions have been handed over to those with political connections to top Tories, and the Greensill case involving the former Prime Minister is no one-off—
Order. I appreciate that the hon. Gentleman is not here in the Chamber and so is not getting the atmosphere of the debate, but no matter what the rules are, this debate is about the Finance Bill. It is only about the Finance Bill and matters within the Finance Bill, which is pretty wide-ranging. The hon. Gentleman appears to be making a speech that he might wish to make tomorrow. Could he please stick to the Finance Bill today?
Thank you, Madam Deputy Speaker. The example I have just given is one of how our system works, and I would argue that that is entirely relevant to the Finance Bill, because while the super-rich have been able to profit from the crisis, the Government have washed their hands of others who needed support. Just this week, millions relying on legacy benefits such as employment and support allowance for disabled and sick people got a pathetic 37p increase in their benefits. What a snub, especially after already being refused the £20 additional payment that went to those on universal credit. With that 37p increase, the Government are deliberately punishing disabled people. It is yet another example of how they seek to make the vast majority pay for one of the world’s deepest economic collapses I will vote against the Bill because it fails to give NHS staff the proper pay rise they need, because it cuts the pay of millions of public sector workers and hands billions in giveaways to mega-corporations such as Amazon, many of which have done very well out of the crisis, because it leaves many of the lowest earners facing tax rises and because later this year it will cut social security payments for people who really should get much more help. I will vote against the Bill because it serves the few and not the many. This crisis has not only shone a spotlight on the deep inequalities in our society but widened them. We should be coming out of it with a more equal society, but, to help us do that, where is the tax on the companies that have made super-profits during the crisis? Where is the one-off tax on the super-wealthy as other countries are doing? I will vote against the Bill and table an amendment calling on the Government to take measures for a super-tax on the super-rich. We need to start to build a society that serves the many, not the few. That is what the Bill should be about, but it is no surprise that, with this Government, it is anything but.
It is kind of you, Madam Deputy Speaker, to call me in this important debate. I will try to reward that by sticking to the topic we are discussing. This is an excellent Finance Bill for a much-needed recovery. The UK is already a great place to start, grow and run a business, but to increase the rate of economic growth in the UK we need to restate and foster the pro-enterprise philosophy and measures that have served us so well in the past. To govern is to choose and the Chancellor was absolutely right to choose fiscal discipline. The Bill begins to fix the public finances with a fair and honest plan about how to do so. Nothing is more devastating to enterprise and investment than high and volatile costs of borrowing, which wipes out small businesses like a pyroclastic flow clearing forested slopes. Thousands of otherwise successful businesses were crushed in the recession of the early ’90s caused by the error of the UK's membership of the exchange rate mechanism A centrepiece of the Bill is the super deduction. I have spoken to lots of businesses in my constituency, and it is already mobilising significant investment. The Bill also contains two excellent initiatives under the Help to Grow banner. I believe that the Government are really on to something here and that we could see the Department for Business, Energy and Industrial Strategy start to deliver a string of practical interventions to give small businesses a hand up. When the opportunity allows, I encourage them to go further. Only 10% of small and medium-sized British businesses currently export, leaving 90% of enterprises as potential exporters. That is a vast untapped opportunity to grow the scale and productivity of UK plc. Global Britain brings huge scope to increase the number of firms involved in international trade, but for many firms, where time is the scarcest resource, it is a big and uncertain step to take. Alongside the other elements of Help to Grow in this Bill, I suggest we make available grants to support exporting. It would be a natural extension of the support that the Government provide today under the useful, but relatively modest tradeshow access programme Like most, I welcome the extension of the lower rate of stamp duty in this Bill. On a future occasion, I encourage the Government to bring forward an exemption to stamp duty for downsizers. In many parts of the country, the real housing crisis is one of under-occupancy. With an ageing population, too many homeowners rattle around in accommodation that would be more suitable for growing families. Stamp duty is a real brake on downsizing. The Treasury will understandably be cautious about leakage, but it should be perfectly possible to define a downsizing transaction based upon the ratio of values and the limited time interval between the two housing transactions This is not an academic issue. Right now my constituents are blighted by development proposals on unsustainable greenfield sites in Ashington, Adversane, Buck Barn, Kirdford and Mayfield, all based on the fallacy that, despite the UK already having more than 600,000 empty homes and the highest rate of housebuilding since 2007, the only answer is to pile up even more supply For a similar reason, although I fully understand the context in which the decision was made, I regret the freeze on the lifetime allowance on pensions. The UK used to have one of the best systems of providing for retirement in the western world. Freezing the lifetime allowance is another Jenga brick whipped away from that once strong pillar. NHS consultants, headteachers and airline pilots are hardly plutocrats, but they now face a tax on thrift. Money that would have gone into well-regulated, well-diversified pension funds and been allocated to grow UK businesses has instead fuelled a boom in buy-to-let property, putting home ownership for millions further out of reach. In the year in which the UK hosts the UN climate summit, let me conclude by welcoming two measures in the Bill that help us move towards a low carbon future. The first is part 2, which introduces a plastic packaging tax from next April. We should tax things we wish to have less of, and on that basis this is an excellent piece of legislation that will provide a clear economic incentive to use recycled material in the manufacture of plastic packaging. It is estimated that as a result, the use of recycled plastic could increase by around 40%, equal to carbon savings of nearly 200,000 tonnes a year and saving a lot of plastic from ending up in landfill and incineration. We only have one planet, so as soon as this useful measure is on the statute book, I encourage my Treasury colleagues to look at increasing the rate and lowering the exemption threshold Similarly, I welcome the removal of red diesel from many sectors, although I am glad there is a continued exemption for agriculture, which makes a significant contribution to the landscape in my constituency of Arundel and South Downs. Red diesel accounts for about 15% of diesel used in the UK and is responsible for the release of 14 million tonnes of carbon dioxide a year. This change will help the adoption of cleaner and greener alternatives, such as hydrotreated vegetable oil, and is yet another meaningful step by this Government, who are absolutely leading the world on climate action.
I am pleased to be able to contribute to this debate and to expand on the reasons so passionately set out by my hon. Friend the Member for Glasgow Central (Alison Thewliss) as to why the SNP will vote against the Bill this evening. The purpose of the Bill is to give legislative effect to the Chancellor’s Budget. That Budget was a regressive Budget. It was an austerity Budget that turned its back on millions of those worst affected by the covid pandemic. It is a Budget that severely damages the interests of my constituents, so it is a Budget, and this is a Finance Bill, that I cannot and will not support Austerity is not an economy necessity. It is a political choice. It has been the first-choice response of almost every British Government of every complexion during my adult life, so it is maybe not surprising that so many people seem to have forgotten that there is a different way, a fairer way, and in fact a much more effective way to respond to an economic crisis. All we have to do is to care as much about the millions in these four nations who do not have enough to live on as we care about the lucky handful whose only problem is that they cannot count how many billions they have There is no disagreement about the fact that we need to start to repair the economic damage caused by the pandemic and by the measures that had to be taken in response. There are lessons to be learned, but perhaps the most vital lesson of all is that the inequalities that have been deliberately created and deliberately maintained in our society by successive Governments have also made our society as a whole much more vulnerable to the ravages of the disease. We know that the economic costs of covid have fallen much more heavily on the people who could least afford them. To give just one example, the British Retail Consortium did a survey that confirmed what we would probably have expected: during the pandemic, highly-paid people such as Members of Parliament have got better off and now have more savings than we had before, while most of our constituents on low incomes have been using up their savings just to survive, and many of them effectively have no savings left at all Presumably, the way we respond to that is to use the powers in the Finance Bill to redress that balance. Well, no—that is not the priority of this Government. In clause 5, we see a multi-year freezing of the income tax basic rate limit and, much more damaging, a freezing of the personal allowance at £12,570. It is not easy to find a way to change an income-based tax system so that we collect more tax but target the impact on people on lower incomes, but that is exactly what the Government propose to do. If it is accepted that the Treasury needs to collect more money in real terms from income tax, we should at the very least make sure that the impact in real terms is equally spread. In fact, the SNP would argue that whenever the time comes to increase taxes, those of us who are lucky enough to be on high incomes should be asked to bear a wee bit more of the pain I know that the Government will point to other provisions, such as clause 31 and the one-off uplift in working tax credit. In principle, that is something the SNP supports, but as my hon. Friend the Member for Glasgow Central mentioned, the way that it is implemented could harm some of the very people it is supposed to help. The eligibility criteria are crude, to say the least. It will not be at all easy for recipients to work out for themselves whether they qualify. What assessment have the Government made of the number of payments that they expect to be made in error, and are they seriously then going to chase down the recipients of those erroneous payments as if they had committed some kind of fraud, when in fact they have done absolutely nothing wrong I was interested to hear the comments of the Chair of the Treasury Committee, the right hon. Member for Central Devon (Mel Stride), on freeports. “Freeport” is obviously a buzzword that the focus groups have told the Tories goes down well with the party faithful, so they have decided to invent, or rather reinvent, something that looks like a rehash of 1980s-style enterprise zones but call it a freeport because that sounds like a better term. Leaving aside the terminology, how do the Government know that the provisions in clauses 109 to 111 will create new investment and new jobs, rather than just move investment and jobs that would have happened anyway, as the Committee Chair asked? How will they make sure that those who buy and sell land in a designated freeport area are investing the tax breaks they enjoy in creating jobs on the site, rather than just siphoning the money off into the profit and loss account of an offshore investment trust somewhere Almost a third of the Bill’s clauses relate to the plastic packaging tax, and no doubt the Bill Committee will want to spend a proportionate amount of time scrutinising the details, but for now, I draw the Minister’s attention to the National Audit Office report on 12 February this year. The report found that, although the Chancellor in his Budget speech last year was able to tell us how many tonnes of carbon the tax would save, “the exchequer departments did not set these as measures of success in the Tax Information and Impact Note”. A previous Tory Government brought in tax information and impact notes in a blaze of publicity, announcing that they would support better parliamentary scrutiny of tax policy, but how can Parliament scrutinise the success of this new tax if the key measure of success announced by the Chancellor does not even appear on the success radar of the Department that has to implement it My hon. Friend the Member for Glasgow Central raised the more general point about the woefully inadequate scrutiny that the often massive decisions in Finance Bills receive. I know that the Government will point to the number of minutes, hours, days or weeks that people have spent talking about it in Parliament, but talking about it and reading prepared speeches is not the same as proper scrutiny. For example, in this Bill we can accept, reject or amend clause 32 on the tax statement of payments under the self-employment income support scheme, which is fair enough for those who qualify, but we cannot redress the glaring injustice of the excluded millions who do not qualify at all. We can accept clause 31 or amend it to make it a lot better, to support working people whose income has been affected by covid, but we cannot vote to remove the 30 September cliff-edge when the furlough scheme is removed, because that would be an inadmissible amendment. Although the Bill can be improved in Committee and made slightly more fit for purpose, we are powerless to force the Government to undo some of the deliberately disastrous flaws and omissions in existing support schemes It is right that this Budget and this Finance Bill should start the process of rebuilding the economy after covid, but as the right hon. Member for Hayes and Harlington (John McDonnell) mentioned, the Government seem hellbent on taking us back to exactly the same unfair, unequal and divided society that we had before. In fact, they will probably succeed in making it even worse than before. Of course, the Tories do not want to talk about the fact that their own analysis shows that the long-term economic damage of the covid pandemic will be less than the damage of the self-inflicted and totally avoidable disaster that is Brexit It is an indication of how out of touch the Government are with my constituents, and with the people of Scotland generally, that the Tories, the official Opposition in Scotland, have already surrendered in the Scottish Parliament elections. They are not even pretending that they want to try and form an alternative Government after 6 May. They are delivering glossy six-page leaflets that literally have no policies on them. They are not even pretending that they have anything positive to say or to offer in Scotland—which, after all, is kind of what Scotland has been saying to them since 1955 The Bill will get its Second Reading tonight, it will get through the Committee and it will become law. Its regressive provisions will be imposed in Scotland against the will of three-quarters of our people, no doubt to great cheers from the socially distanced Government Benches. But let me say this to them: enjoy imposing this Finance Bill on Scotland’s people, because in just over three weeks’ time, those same people will take a decisive step towards making sure that their time for imposing their policies on our country comes to an end.
I appreciate that this is a Finance Bill and technically it can go to any hour, so the House could be sitting until 11 o’clock or midnight, but I ought to say something to Members who are not in the Chamber but who I hope might be listening. It sometimes seems that Members who are at home and participating virtually do not pay attention to the rest of the debate. If they are listening, let me say to them that there is something a little bit distasteful about those who are sitting at home making very long speeches and keeping the entire operation of the House of Commons going till well into the evening. Everybody has the right to speak on the Finance Bill and it is very important that they do so, but it is generally recognised, and I particularly recognise it today, that that which can be said in 10 minutes can usually be said more effectively in five.
The Bill recognises both the short-term demands of the covid crisis and the long-term needs of global Britain’s economic future, and I am delighted to support it. I shall keep my comments brief As we emerge from lockdown in a cautious and gradual way, it is right that provisions are made to extend furlough, reduce VAT for tourism, maintain the increased universal credit payments, support grants for the self-employed and so on. It will be some time yet before the economy is back to pre-covid levels of activity, although it may not be as far away as we had feared just six months ago. Those who have managed to save money over lockdown are keen to put their cash back into our national economy Stoke-on-Trent city centre business improvement district has ensured that we will play our local part in the resumption of consumer spending. Operation Sparkle is making our city centre smarter, cleaner and more inviting, but there is only so much that even the most dedicated local groups and bodies can do to fight against litter, so I welcome part 2 of the Bill for its potential to gear the tax system ever more against plastic waste There is a real problem with litter, particularly along Stoke-on-Trent’s beautiful watercourses and green spaces, made much worse by the thoughtlessness of those who fear no consequence from dropping bottles and wrappers that will not immediately biodegrade. It makes responsible residents across my constituency rightly angry. The tax system should not be neutral on litter. We have all seen the dramatic impact of the plastic bag tax. I hope that the plastic packaging tax is another step towards a tax system that increasingly targets problem litter and incentivises the reuse, return and recycling of packaging The Office for Budget Responsibility predicts that the pre-covid level of GDP will be reached only one year from now. It further predicts that unemployment will be in its second quarter of decline by then, having peaked at 6.5% by the end of this year. That means that UK unemployment will still be 1.4 percentage points lower than when the Labour party left office in 2010. It is an extraordinary achievement. The balance of measures has been more or less right, just as the balance of measures is right in the Bill We were never going to escape a global pandemic unscathed. Now we must face the reality of once again looking for measures to bring the books back into balance in the medium and longer term. However, that should not mean reductions in productive investment. I particularly welcome the super deductions for new plant and machinery in clauses 9 to 14, together with the provision in clause 15 for an extension of the £1 million annual investment allowance. We are enabling the private sector to build back better It is often said that Chancellors are conjurors, pulling rabbits out of hats, but today’s Chancellor is more of a tightrope walker, trying to maintain a very delicate balance indeed. He is admirably succeeding. We are emerging from the international crisis with renewed national confidence in a long-term future of better days ahead.
This Finance Bill fails to meet the scale of the economic challenges and it fails to provide the growth that is needed to recover from the pandemic, not to mention the impact of Brexit. Unemployment is already at 5% and is set to rise to 6.5%. Some groups have been hit particularly hard, especially the young—youth unemployment is at 14.3%—and those from minority backgrounds face much higher levels of unemployment Business investment has been in decline for many years and the pandemic has not, of course, made matters any better. We have heard a great deal about the productivity rate being incredibly slow, which it has been for the past decade. Instead of focusing on the big challenges facing the country, such as tackling the jobs crisis and youth unemployment, and promoting growth, what we see is the Government reverting to their comfort zone with an irresponsible council tax hike that will create even greater pressures for families who have faced the most unprecedented of challenges over the last year, and huge adversity—ordinary families in constituencies such as mine, where the level of child poverty is among the highest in the country By freezing the threshold for the personal income tax allowance, the Bill introduces a stealth tax on households. Meanwhile, the so-called super deduction gives tax cuts to some of the biggest businesses in the country, including those who have done particularly well during the pandemic, when the support should be targeted to companies that need much greater help and where there is greater need for support It is as if the Government have learned nothing from this crisis, as they take funding away from families who desperately need help. That brings me to the issue of universal credit, which will return to its original level later in the year. Millions of families will suffer when that happens. That is why I believe that this Finance Bill does not support families. The stealth tax that has been introduced will hurt ordinary families, including our NHS heroes and other key workers who have sustained us through the pandemic The Bill does not go far enough to support the 700,000 young people who face unemployment. Only one in 49 are eligible for support through the kickstart scheme. The Government have not taken the opportunity in the Bill to provide additional support to get those young people back to work Despite the fact that local councils such as mine have had to spend a great deal more because of the pandemic, there is nothing in the Bill to support them. There is very little to support our public services when they are facing an unprecedented crisis. The Bill lacks the ambition that is desperately needed after the biggest economic hit for generations. It lacks the ambition to get the unemployed back to work, and bold action to increase investment, productivity, and innovation, create the green industrial revolution, and power our economic growth in the face of the double hit of the pandemic and the 4% long-term hit to GDP as a result of Brexit. It hits families hard when they need to be supported, and it lacks the ambition to match the scale of the economic, social and healthcare challenges exposed by the pandemic. I will therefore not vote for the Bill.
Diolch, Madam Deputy Speaker, for calling me to speak in this debate. It is a pleasure to follow the hon. Member for Bethnal Green and Bow (Rushanara Ali). Last month’s Budget was a missed opportunity to protect jobs and incomes, support struggling employers, and set out a clear vision for a green, sustainable and fairer post-pandemic economy that works for all four nations of the United Kingdom. Instead, the Budget became an exercise in political showmanship, which further undermined devolution and put party politics above the collective good. Supposedly new spending pledges were proven to be nothing of the sort, most clearly at Wales’s expense, where only 5% of the spending announced was new and unconditional. That disappointment was compounded by the proposals unveiled for the so-called levelling-up fund, which I am afraid does a disservice to Wales and to devolution The Bill confirms some of the most damaging elements of that Budget-day display. It prematurely ends the VAT reduction to help hospitality businesses across the UK. It neglects fully to correct the exclusionary failures of the self-employment income support scheme, and it fails to guarantee the permanency of the £20 a week universal credit uplift. Those measures alone suggest that the Bill will hamper rather than encourage our short-term recovery Equally worrying is the Government’s clear determination to re-establish the pre-pandemic dysfunctional UK economic model through a “Westminster knows best” approach that is openly hostile to devolution. That is why, to ensure that Westminster works with rather than against the devolved nations on policy issues such as freeports, Plaid Cymru will table amendments requiring the consent of the devolved Parliaments before freeports can be established in their respective nations. That such amendments are necessary is sadly indicative of the Government’s centralising tendencies over the economy, despite their appalling record on delivering schemes such as tax reliefs, which worsen rather than address regional inequality in the UK For instance, through the UK Government’s two main innovation investment reliefs—the enterprise investment scheme and the seed enterprise investment scheme—between 2015 and 2018, start-ups in London received four times more per head of population than businesses elsewhere. In contrast, only 1.3% of UK-wide investment through the enterprise investment scheme was in Wales Noting the significant risk that the proposed capital allowance super deduction might turbocharge regional inequality in the UK, Plaid Cymru will also table an amendment requiring the Government to consider the impact and geographical reach of that super deduction. Given the pressing challenge of climate change, and the need to recapitalise our economy to further decarbonisation efforts, our amendment will require the Government to consider the impact of a super deduction on climate change mitigation efforts. I sincerely hope that the Government will be supportive of that amendment, particularly given the Bill’s overall lack of measures and support for the green transition—except, it is worth noting, a welcome change to the Bank of England’s mandate Although I welcome the proposed plastic packaging tax, even that illustrates Westminster’s inability adequately to act on the pressing issues facing society across the four nations of the UK. Only days ago it was reported that the much vaunted deposit return scheme has been further delayed until 2024. Having been unnecessarily tied to Westminster inaction on that issue, Wales will by then have waited six years for such a scheme to come to pass. That outcome is made even worse by the Government’s United Kingdom Internal Market Act 2020, which undermines Welsh efforts to counter plastic pollution, and pales in comparison to Scotland’s ability to deliver a bespoke system by next year In conclusion, this Bill fails to correct the flaws in the Government’s pandemic response, fails to live up to their rhetoric on levelling up and fails to match ambitious climate rhetoric with policy action to further the green transition. Instead, the Bill not only reflects the deeply misguided sense that the Treasury knows best when it comes to regional inequality, but misses an opportunity to provide a long-term plan for our post-pandemic recovery.
Let me start by expressing my sadness at the death of His Royal Highness Prince Philip. I send my condolences and those of the people of Redcar and Cleveland to Her Majesty the Queen and the royal family at this difficult time I direct Members to my entry in the Register of Members’ Financial Interests as a board member of the South Tees Development Corporation In the short time I have, I want to focus my remarks on clause 109 on freeports and on why I was so pleased to see Teesside play such a prominent role in the Chancellor’s Budget. Freeports are not of course new to Britain, but our ability to use them properly was strengthened by Brexit and the Prime Minister’s EU withdrawal agreement. Outside the EU, freeports have a significant role to play in our recovery and in levelling up our left-behind areas such as Redcar and Cleveland, and clauses 110 and 111 will help achieve that Our Teesside freeport is the largest in the UK, with a plan to create 18,000 jobs over the next five years. In less than a month since that Budget announcement, we have seen the creation of more than 2,000 jobs in offshore wind, with General Electric building its new turbine blade manufacturing plant within our freeport. However, the journey to this point was not a happy one. One of Teesside’s darkest days was in October 2015 when SSI fell into liquidation, with the end of 170 years of steel making on Tees and the loss of 3,000 jobs overnight. For many of us in Teesside this felt like a fatal blow and a shock from which we could not recover. For me as a chemical industry worker at the time, I remember the sinking feeling that we would be next—the next domino to fall into industrial collapse—but Teessiders throughout time have shown their immense resilience, and we refused to allow our decline to be inevitable In 2017, the election of a Conservative, Ben Houchen, as the Tees Valley Mayor began the journey of devolution in Teesside and the transformation of our area. That year we formed a development corporation to cover the site—the first mayoral development corporation outside London. Although there were many bumps along the road, by February 2020 the deal was done to get full control for the rest of the site, taking full ownership of the former steelworks. In July last year, Teesworks was launched, the new name for the now 4,500 acre site, and in August demolition began, clearing the way for the new jobs to come. It is the largest development site in Europe alongside the deepest port on the east coast, publicly owned and led by a Mayor who is determined to deliver for his area We started this journey with the loss of 3,000 jobs on Teesside, but now that site sits at the heart of the UK’s largest freeport, with a plan to create 18,000 jobs over the next five years. The Teesside freeport, which covers Teesworks, Wilton, port of Hartlepool, port of Middlesbrough, Wilton Engineering and Teesside airport, will be our gateway to global trade and the engine room for the northern powerhouse. This is our plan to level up our region, transform Teesside and truly build back better. Recoveries of the past have seen some areas boom while other areas go bust, and over the last 12 months we have faced a crisis like no other in our history. Now we will build a recovery like no other, where nowhere is left behind.
That was a fair point well made about contributions earlier, Madam Deputy Speaker, and as I am mostly going to address climate change, I will try to be aware of the levels of hot air I am producing myself I rise to speak in favour of the reasoned amendment in the name of the hon. Member for Brighton, Pavilion (Caroline Lucas)—my name is also on the amendment—and to say that Social Democratic and Labour party Members will vote against this Bill. We spoke last month in the Budget debate to highlight the missed opportunities, including the opportunity to respond to the economic challenges and the challenges of inequality that have been exposed by the pandemic. However, while interim and half measures can perhaps be explained away with an economy in lockdown and in deep freeze, they cannot be justified for the live climate crisis we are facing at the moment. This Bill misses the opportunity to act on that ecological emergency because it lacks the ambition and the urgency required to meet the UK’s obligations under the Paris agreement. It does not deliver the transformational investment needed to create green jobs, particularly at a time when so many people have lost their work and when so many sectors will take time to recover. Opportunities also need to be there, not least here in Northern Ireland Additionally, the Bill provides very little for those who have been working on the frontline throughout the pandemic. It does not say much either to people whose economic precarity has really been exposed over the past 12 or 15 months, or to young people who have missed so many experiences and opportunities and who need to see an economy in which they can have some hope—an economy that focuses on opportunities and wellbeing rather than on an obsession with growth. They need something that offers them more than just personal debt and insecurity in the years ahead This year, the UK hosts COP26, which provides even greater impetus than ever to be a leader in climate action, with meaningful cross-governmental action right at the very heart of the Bill and right at the very heart of this global inflection point that we are experiencing at the moment We have been doing things differently necessarily for the past year and we should continue to do that and to follow a different ecological and economic course from the one that we would otherwise be on. The Government have repeatedly highlighted the importance of net zero, which is welcome, but the Bill does not reflect the urgency of what we are experiencing here and what we are seeing around the world. We cannot keep putting the meaningful actions into the “too difficult” piles. Recent moves by the Government, including approving a mine, granting new licences for oil and gas exploration, scrapping the green homes grant and cutting overseas aid to countries that are dealing with the impact of climate change and removing funding at a time when they need to transition to less carbon-intensive measures, is going in the wrong direction. These are not the signals of a Government who are serious about a green recovery or serious about the wellbeing of the planet or of future generations. There needs to be consistency in domestic policies and international objectives that we are not seeing here I am pleased also to co-sponsor the Climate and Ecology Bill, which would have provided some signals for the actions that this Government could have chosen to take in this Bill if they were serious about the environmental urgency and dynamism that we need to see, so we will be opposing the Bill on that basis.
I draw attention to my entry in the Register of Members’ Financial Interests. I also want to highlight, as other Members have done, the tribute from my constituents following the death of His Royal Highness, Prince Philip, the Duke of Edinburgh. I know that the thoughts of so many have been with Her Majesty the Queen over the past few days I speak today in huge support of the Finance Bill. It is absolutely fundamental in the steps that we are taking for constituencies such as mine both in the short and the long term. I would like to associate myself with the comments of my hon. Friend the Member for Hertford and Stortford (Julie Marson). She made a really fundamental point, which is that we politicians in Westminster do not create the wealth; that is down to the businesses, entrepreneurs and workers in North West Durham and across the country, but we can help to set the pitch and enable them to succeed. The Government’s work recently, particularly in relation to continuing the business rate holiday and the VAT holiday, has been helpful and will really help some of my businesses rebound The broader point is that this Budget sets out some really good things for the long term, particularly around productivity, as highlighted by my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami). Technology adaptation, along with the Help to Grow scheme, needs to happen for those productivity gains in businesses. The super deduction gives a real opportunity, particularly for the manufacturing centre, which is so capital intensive, to invest for the long term, knowing that that cash will be repaid in spades and also that there will be a tax break. That will also help to counter some of the issues that we are bound to see around unemployment because of the covid pandemic More broadly, we are now seeing the levelling up start to take shape. The finance for lifelong learning is provided for in the Bill. That is hugely important for constituencies such as mine, where a far higher than average number of people do not have the level 3 skills that we know make the real difference to people’s earning capacity. Last year, we saw the great motor homes tax cut from the Chancellor in the Budget. That has had a real, direct impact on my constituents this year in our manufacturing centre On the levelling-up fund, it has been great to see that £4.6 billion was announced. The Treasury need to be aware that I will be putting in bids for both Consett and the three-town area of Crook, Willington and Tow Law. I have already had conversations with some of the other council candidates and the local council about that, so I am really hoping that we can get some of that cash into our areas to help to boost them and the towns that have felt left behind for too long I felt that a couple of comments from the Opposition on higher council tax being forced on to councils did beggar belief to a degree, especially when, in Durham, we are seeing our Labour-controlled council—Labour-run for 102 years—spending £50 million on a new county hall on a floodplain with a roof terrace, at the same time as raising council tax, which is currently the eighth highest in the country out of 340 councils I would particularly like to pick up on one other thing, as mentioned by my hon. Friend the Member for Redcar (Jacob Young): the really great news about the freeport. It just goes to show what great local MPs working with the superb Mayor of Teesside, Ben Houchen, can do. That is exactly what we need to see in County Durham as well—great, entrepreneurial, business-focused local government working with local MPs. I was somewhat alarmed by the comments from the hon. Member for Ealing North (James Murray) from the Opposition Front Bench. He suggested that these freeports would be places for smuggling and organised crime to thrive. He made it sound a bit like “Pirates of the Caribbean” is coming to Teesside, when the truth is actually quite different. We have already seen thousands of jobs being created locally and huge numbers of Government jobs both from the Treasury and the Department for International Trade moving to the north-east. That is incredibly welcome not just for Teesside and the constituents there, but the entire north-east region There is a lot to commend in this Budget, but the financial responsibility and the need for fiscal responsibility have not gone away. It really matters in the long term, as my right hon. Friend the Member for Central Devon (Mel Stride), the Chair of the Treasury Committee, said at the start. We have to ensure that we maintain that financial responsibility because any rise in interest rates will see serious issues for the economy and Government spending in the long term. I think this is a really balanced approach. It has some short-term measures in there to restart the economy and some of the long-term measures that my constituents voted for at the general election. And crucially, it is a proper Conservative Budget, because at the heart of it is long-term fiscal responsibility.
The Government’s mishandling of the pandemic and an inadequate social security system have caused widespread financial hardship, unemployment and debt, yet the Finance Bill falls short in tackling poverty, low pay, insecure work and the ever-deepening divisions in our society. Instead, it includes a whole host of damaging measures, such as cutting working tax credit to its lowest level in decades Action for Children estimates that 2.5 million families with children currently on universal credit and working tax credit will miss out on a combined total of £1.3 billion across this financial year when these cuts are implemented in October. Today, the Child Poverty Action Group’s new report looking into the Government’s two-child tax credit limit estimates that at least 350,000 families, including 1.25 million children, have now been affected by the policy since it started four years ago; a far cry from the Government’s so-called levelling-up agenda when those in the poorest parts of the country—children—will suffer even more But should we be surprised when the austerity policies pursued by this Conservative Government continue to have widespread and devastating impacts on the most disadvantaged? Years of austerity, welfare cuts, benefit changes and cuts to public services have disproportionately affected women, disabled people and black, Asian and minority ethnic people—a fact that has been repeatedly outlined by the TUC, the Runnymede Trust, the Joseph Rowntree Foundation and many more. That is why it was so utterly astounding and offensive that the report of the Government’s Commission on Race and Ethnic Disparities sought to downplay the existence of institutional racism, against all the evidence and facts showing that economic outcomes in our country are rife with racial disparities. Equally, the covid-19 pandemic is widely noted to have exacerbated these trends. It is disingenuous and misleading to seek to divide ethnic minority working-class communities and white working-class communities, which is what the report did. The same issues affect all our working-class communities. Opportunistically cherry-picking figures cannot alter what is clearly laid out in extensive research by a wide range of credible researchers and actual experts over a number of years When it comes to such legislation, as the Women’s Budget Group has rightly argued, meaningful equality impact assessments should consider cumulative impact, intersectional impact, the impact on individuals as well as households, impact over a lifetime, and the impact on unpaid care. Conversations about sexism, ableism, racism, poverty and the economy must go hand in hand. That is why I have consistently called on the Government to carry out and publish equality impact assessments, and I will be tabling an amendment to insist that they do so for this Bill Tax Justice UK and the Women’s Budget Group rightly argue that taxation and wealth is an equality issue. On average, women not only earn less than men, but they own less wealth than men, with women in the UK owning approximately 40% of the country’s total personal wealth. Coupled with the very obvious way in which the pandemic has hit women the hardest, it is clear that the Government should really be publishing equality impact assessments. Equality is our law, yet the Government refuse again and again to do that, and they have not done so for the 2021 Budget or for this Finance Bill, either measure by measure or cumulatively. While tax information and impact notes for each tax measure are available, they lack detail and quantitative estimates of impact, or simply state that no equality impacts are anticipated. That is not good enough for legislation that will so fundamentally impact on our society. I hope that the Minister will confirm why the Government have not published the information needed for Members to fully assess how the Bill impacts people right across the country Incentives such as the super deduction are biggest for larger firms, and the Financial Secretary to the Treasury has admitted that only 1% of firms will benefit this year, as the rest are within the annual investment allowance. How can the Government justify the fact that, under this Bill, the rich and big business are being treated to mouth-watering tax giveaways and reliefs despite unclear evidence about whether that will actually create the investment needed? For example, who benefits from Amazon paying no corporation tax in the UK as a result of the super deduction This Bill is a missed opportunity for a green recovery based on intersectional economics and progressive taxation to create decent, well-paid, unionised jobs and address our care crisis. It has the wrong priorities, it will create further inequality and it has unfairness and injustice rooted at its very core, so I will be voting against it today.
An unprecedented time calls for an unprecedented Budget, and that is exactly what the Chancellor delivered, which is now set out in this Bill. The Budget had at its heart a focus on supporting people and businesses as we begin to emerge from the pandemic, and it laid out how, through fair taxation measures, not austerity, we can begin to rebuild and fix the public finances. Even the latest figures, published this morning, show an economy recovering, with exports, imports and GDP all improving. We already have a vaccination policy that, thanks to this Government, has been world-beating, and we now have an economy repairing itself faster than we all expected Not only can North Norfolk celebrate the fact that its economy, which is driven by leisure and tourism, will no doubt boom this summer, but my constituents have even more to celebrate, North Norfolk being in the top 100 places for the UK community renewal fund. Contrary to some beliefs, this is a Government reaching out to every corner of the UK, and I thank the Chancellor for putting North Norfolk on the map You might expect that a chartered accountant would want to talk about the taxation measures in this Bill, and I would hate to disappoint you, Madam Deputy Speaker. There are undoubtedly those who have prospered in lockdown from a sense of a captive market, and thus the taxation policy to increase corporation tax not now but in a couple of years’ time is sensible and proportionate. Equally, our rates will still be some of the lowest in the G7. Those making the lowest profits—under £50,000—will be largely unaffected and only those earning over £250,000 will pay the top rate. The vast majority of limited companies in the UK will see little tangible difference. However, I would like the Minister to explain why the super deduction is only applicable to limited companies. I acknowledge that it is a superb incentive for investment, as it is designed to be, but why not broaden the scope? Imagine farmers in my constituency parting with the best part of half a million pounds to buy farm machinery such as combine harvesters, as many of them may do, but because they operate as partnerships they are ineligible for the tax break As I repeatedly and relentlessly mention in this place, my fears for the overall UK high street still remain. Yes, our high streets will have the rates reprieve for nearly another year, but in the long term they will suffer as those who have converted to shopping online continue to operate under that trend. The Government must look at modernising the rates system and consider how we level up the disparity in competition between those bricks-and-mortar stores that now face online competition. I certainly look forward to perhaps seeing more of this in the autumn. But I take nothing away from the tax breaks. The confidence that the Government have injected into the economy is working and the green shoots of a post-crisis recovery are already germinating.
Today I will vote against this Bill’s Second Reading, and I will focus on three reasons why Reason No. 1 is that I genuinely believe that our NHS and key workers deserve a decent pay rise, not just platitudes—the clapping of hands every Thursday some time ago, the selfies and the video clips. A vote for this Bill today is a vote to cut, in real terms, the salaries of those heroes, our key workers Reason No. 2 is that the regressive council tax bombshell of 5% imposed by the Chancellor on councils up and down this land is classed as spending power in his Budget—a Budget of smoke and mirrors—while ushering in a new era of austerity, with billions of pounds taken from the public sector providing vital services for the most vulnerable and the most needy, whether children or adults, in our society Reason No. 3 is that I and others are making a stand for the millions excluded from financial help and business support, whether freelancers in the Northwich part of my constituency or care workers from Frodsham who deserve a fair level of sick pay when they have to self-isolate in this covid pandemic My constituents may not have a direct line to the Chancellor, Ministers or leading civil servants, and they certainly do not have share options worth millions of pounds. However, 305 of my constituents in the Daresbury area of Weaver Vale have just lost their jobs—former employees of Greensill. That is the bulk of the UK employees; they are 305 of the 400 or so who have lost their jobs in the UK. Of course, there are thousands in associated industries, whether that is at Liberty Steel or further afield. They are victims of an unregulated shadow banking crisis and the new episode of Tory sleaze. I want to see a Chancellor who pushes his team not to support his old boss, the former Prime Minister, but to give our key workers a decent pay rise and fully fund our councils, as promised, to help the many who have been excluded from business and personal support. That is how we build forward fairer for all. It is certainly not through supporting this Bill, which I and those on the Opposition Benches will oppose.
I welcome and endorse all the points made by my hon. Friend the Member for Ealing North (James Murray) about the Opposition’s deep concerns about the Finance Bill; I will be voting against it I want to focus on measures relating to contractors. The all-party parliamentary loan charge group has just published a comprehensive report, “How Contracting Should Work”, which found that the unintended consequences of IR35 or off-payroll legislation has been a proliferation of umbrella companies, some of which have pushed people into disguised remuneration schemes. The report also exposed significant malpractice, including withholding of holiday pay, kickbacks for recommending or passing on contractors, and even the provision of fitted kitchens and holidays for recruitment agency directors. We concluded that we need legislative changes in and beyond the Bill, including aligning tax and employment law. There is a real opportunity in this Finance Bill to address some specific concerns Clause 21 deals with “Workers’ services provided through intermediaries”. It has been described in the explanatory notes as addressing “an unintended widening of the conditions which determine when a company is an intermediary” But, actually, this is a change following lobbying efforts by umbrella companies. The legislation as originally drafted would have meant that recruitment agencies had to put workers on their own payroll, where they would also have enjoyed the protections offered by existing agency legislation. That would also have meant closing the door on tax avoidance schemes. Now that door has swung wide open again, which is a very odd thing for the Government to be doing when at the same time they claim they intend to clamp down on tax avoidance schemes The Government could simply strike out clause 21. Doing so would ensure that workers got the agency rights they should be getting. Agencies can run their own payroll; they do for their own staff anyway. They do not need umbrella companies and neither do their contractors. Alternatively, the Government could redraft clause 21 to seek to stop the exploitation. They must do one or the other As the Government and HMRC are well aware, schemes are still being sold—mis-sold—to people including mid and low-paid public sector workers, nurses, NHS doctors and other clinical specialists, teachers and social workers. Such schemes are also being sold to many in the private sector, including in IT, business services and so on. We in the APPG support more action through the Bill against promoters of such schemes, but we want to see some detail in this legislation. Schemes must be stopped now, rather than trying to go after promoters when the damage has been done—many are offshore anyway. I urge the Government to accept that there still needs to be a fair resolution for those facing the loan charge. The vast majority of people facing the loan charge and those duped into schemes since 2017—often lower-paid people—are victims of mis-selling by promoters and operators who gave and still give assurances of compliance and legitimacy, and did not make any mention of the risk of being pursued by HMRC. The reality is that people are simply not able to pay the loan charge, and enforcing it will lead to bankruptcy, hardship and worse. It is time that the Government and HMRC sought a compromise—a way to resolve this without destroying lives and families, and without making people unable to work through their being declared bankrupt. I urge the Government to look again at the APPG’s proposal last year for a final settlement opportunity We in the all-party parliamentary loan charge group welcome action to tackle promoters of schemes, but we want to see the details from the Government. We have seen very little so far. At the same time, we need legislative action to stop these schemes in the first place and the misery that they cause, and we want a fair resolution for those facing the loan charge. The Finance Bill gives the Government an opportunity do this, to clean up the supply chain, and to stamp out tax avoidance schemes and other malpractice. Given the importance of these workers to the economy and our public services, this is an opportunity that the Government must take now.
It is a pleasure to speak in support of my colleagues in our opposition to the Finance Bill on Second Reading. This might be the Finance Bill that we have, but it is certainly not the Finance Bill that we need right now. Despite warnings and despite the damage to employment that was caused by previous hard deadlines that the Chancellor set himself on furlough—which turned out not to be such hard deadlines after all—we once again face just such a set of cliff edges with these measures come September. We face a cliff edge with the ending of the support for the self-employed, the ending of furlough and the non-continuation of the equivalent of the £20 universal credit uplift—a policy that has done so much to get families on low incomes through the pandemic, making sure that food was on the table, bills could be paid and the wolf was kept from the door. We will also face a cliff edge in key elements of the Scottish economy thanks to the removal of the 5% VAT rate for hospitality. As things stand, all these cliff edges will be encountered irrespective of the condition of the economy come September or, indeed, the progress that we continue to make in suppressing the virus This Bill fails to get to grips with the big issues of ensuring a green recovery and fails when it comes to dealing with the much-vaunted levelling-up agenda. In the time I have left, I wish to highlight two points of particular interest to my constituents and to wider society across the north-east of Scotland: the recently announced sector deal for the North sea and the levelling-up agenda First, lest there be any doubt, the sector deal is absolutely welcome. It has been called for for a long time and I know that the Government and industry have been working together closely to deliver the package. Although it might be a sector deal, whatever else it might be it is emphatically not a fiscal deal. There are big numbers in respect of the amounts of investment money that might potentially come in, but the Government are not putting a huge amount of money on the table to achieve that. It may help—I hope it does—to drive the objectives of a just transition and to boost the skills and retain human capital in the north-east of Scotland, but we need to be prepared for the possibility that further incentivisation might be needed Secondly, on levelling up, people who listened to my good friends and colleagues from neighbouring constituencies who represent the Conservative and Unionist party would believe that the levelling-up fund was going to leave not a single pothole unfilled, not a bridge unrepaired and not a single social project unfunded in the north-east of Scotland. Instead, when the prospectus was unveiled, the city of Aberdeen was in level 2 and Aberdeenshire was languishing in the lowest level, level 3, despite the urgent need to address the hit that the oil and gas sector has taken and tackle the impact of Brexit on our exporters. It seems that the post-Brexit power grab on Scotland’s devolved Government has morphed into a cash grab on the north-east of Scotland In conclusion, this is the Bill that we have but it is not the Bill that we need. Along with my colleagues, I look forward to exposing more of its shortcomings as we see them, as the Bill progresses.
My contribution will not be long, Madam Deputy Speaker; I just wish to make a few points As on several other occasions over the past year, I have looked to ascertain whether we are doing our best to offer support to help to sustain businesses and then encourage regrowth. I put on record my thanks to the Government for all that they have done, but I must also put something on the record on behalf of the aviation sector. I hope the Minister will forgive me for putting this on the record, but it is important that I do so Although I accept the difficult nature of presenting a Budget at this time and the immense pressure on the Chancellor, there were a number of gaps in the Budget, one of which was support for the aviation sector. The temporary extensions of the job retention scheme and the limited business rates relief for airports were welcome, but there was palpable disappointment in the sector that the Government failed to recognise in their Budget the impact of covid-19 on aviation The only aviation-specific clause in the Bill is one to increase the tax burden on international travel through air passenger duty—this at a time when the Government should be putting all their efforts behind the recovery of the UK’s lost aviation connectivity. As a member of the Democratic Unionist party, I have long opposed APD on internal travel—I believe it is a factor in the growing feeling of isolation that Northern Ireland is going through—but that is for another debate in which the Unionist voice must be heard and acknowledged much more than it is being currently The covid-19 pandemic is the worst crisis in the history of aviation. Last summer, passenger numbers travelling through UK airports were at their lowest level since 1975. Office for National Statistics data shows that aviation was the worst-hit sector of 2020 and will continue to be the worst-affected sector in 2021. That tells me that we need to look at how we can encourage and build the sector. Not just the Airport Operators Association’s airport recovery plan but the Office for Budget Responsibility downgraded their estimations of the recovery of levels of air passenger duty until as far away as 2024 and 2025. The Government need to acknowledge that other European countries are giving substantial grant-based funding to airports. The UK Government’s lack of support, other than limited rates relief and access to loans, risks UK aviation falling behind our European competitors. That cannot be allowed to happen given our vision of global Britain Instead of supporting the sector, the Finance Bill includes rises in air passenger duty that will harm the recovery of an industry that has largely been shut down for over a year. Added to that, there is the blow of the removal of airside VAT-free shopping at the end of 2020. That is another hit for airports, which rely heavily—up to 40% of their income—on retail and require a firm financial footing to successfully recover throughout the rest of the decade. The Finance Bill, unfortunately, fails to reverse that damaging decision, or put compensation in place such as arrivals duty-free shopping I conclude with this comment. In an intervention at the beginning of the debate, I made a comment about insurance companies. Some companies are unfairly using business interruption insurance premiums to punish businesses that had the foresight to take out said insurance before the pandemic. I believe there is a chance with this Bill— insurance companies are notorious for finding a loophole—to address this issue. I ask the Minister to do that.
I would like to begin by echoing the tributes made from all sides of the House in recent days to the Duke of Edinburgh, Prince Philip. It is a testament to the endurance of his public life that you would have to be almost 80 years old to have any real memory of a time when both he and Her Majesty the Queen were not at the pinnacle of the monarchy. On behalf of my constituents, I would like to send Her Majesty and the royal family our deepest condolences at this most difficult time Turning to the debate, it is a pleasure for me to respond on behalf of the Opposition. I thank all Members on all sides of the House, who made very wide-ranging contributions today, and some of them, Madam Deputy Speaker, related to the Bill before us. We have heard excellent contributions on a wide range of issues, including the move away from diesel, climate change, local recovery bonds, the taxation of covid tests, those excluded from Government help schemes, the arts and cultural sector, the aviation sector, the Help to Grow scheme, freeports and regional inequality—or, as the Government call it, levelling up On the latter, we heard of the urgent need for action because of years of neglect. Now, I hate to pose an awkward question, but I have been scratching my head and I have to ask: who has actually been in power for the past 11 years? Who presided over that neglect? Who was it who cut billions of pounds from local authority budgets over the past decade? Who was it that abolished the regional development agencies that were responsible for regional development in the first place? Who was it that downgraded Sure Start, and attacked the opportunities and life chances of some of the lowest-income children in the country? I really think that we should be told who it was who presided over the neglect that has spurred the Government to these policies today. I admit that it is a neat trick to pretend that you have only been in power for a year, but the truth is that it has been 11 years. What the Government are now trying to do is fix their own mistakes to repair damage that they caused in the first place Now, I admit it must be a relief to the Treasury Ministers to attend the debate today and to be able to shelter on the Front Bench for a few hours, to get some respite from calls from David Cameron. They can tell him that they were in the Chamber and they had their mobiles switched off as he worked his way through the whole Department. If I am right, the Minister responding is one of the few people in the Treasury who has not yet received a call from the former Prime Minister, but he might still be working his way through the list. Right now in the Treasury there are no doubt officials cowering behind doors, hoping that the former Prime Minister does not have their phone number. If he does get through, they can give him the new excuse we heard today: that the new Government loan schemes on which he has been lobbying have nothing to do with the Treasury. Ignore all the press releases, ignore all the tweets, ignore the Instagram videos, ignore the invitations to “Ask Rishi”. It turns out that the case for the defence is that it is all somebody else’s responsibility. But that will not wash—it will not wash at all At the heart of the Finance Bill are the tax changes set out in the Budget. As we established during the Budget debates a few weeks ago, those tax changes turn on its head decades-long conservative orthodoxy, not just because tax rates are going up but because the expectation is that alongside rising tax rates will come rising revenues. The projections are set out in the Red Book on corporation tax, thresholds for income tax and the other measures laid out in the Bill The Red Book estimates and the Bill lay to rest the argument set out by Conservative politicians from Margaret Thatcher to George Osborne that cutting rates rather than raising them leads to an overall rise in revenues. Indeed, the argument advanced at the core of this Finance Bill—that corporation tax rates should rise and businesses should be compensated by an increase in investment allowances—is the exact mirror image of the argument used by the previous Chancellor to justify the cuts he made to corporation tax. At that time, we were told that all those reliefs and allowances were too complex and that they could be cut to help fund a cut in corporate tax rates; now, the opposite argument is being advanced. Osbornomics are officially buried by Rishnomics in this Finance Bill That is all, of course, at the level of policy and ideology. What about the practical level—the practical effect? The freezing of personal allowances will bring an extra 1.3 million taxpayers into the system over the next few years. I thought it might be helpful to illustrate the effect of some of the proposals on a particular constituency, so I picked one at random: Hartlepool. The proposals mean that 34,000 basic rate taxpayers in Hartlepool will face a tax increase before corporations have had to pay a single extra penny toward the costs of the pandemic. In Hartlepool, there are 11,732 households on universal credit. The decision to withdraw the £20 a week uplift from them later this year will cost them collectively almost £12 million extra over the following 12 months. That is what these changes mean in one constituency. That is what they mean to families around the country The Bill also sets out plans for the new system of investment allowances, which are related to the recovery loan scheme recently launched—I underline this—by the Treasury. The Treasury cannot escape ownership of this one. What will the Treasury system be to accredit lenders under the new recovery loan scheme? Will it just be for regulated lenders? How will it test the capital adequacy of the institutions involved? How will it avoid a repeat of accrediting for the scheme a lender who is on the brink of collapse Of course, the overall judgment on the Budget and the Finance Bill must be by the test of how it gets us through what is happening now and the foundations it lays for the future, and the Bill deals with only one phase of that. On the extension of many of the emergency measures put in place since the beginning of the pandemic, we called for many of those measures in the first place, and they are obviously necessary while we are still in the teeth of the fight against the virus. By that, I mean of course the extension of the furlough scheme, the help for the self-employed and so on. Those interventions cost considerable sums of money, but the social and economic cost of not doing them would have been far, far greater. Governments can act in times of crisis to help the country through. Indeed, if a Government did not do so, we would have to wonder what they were for. But in addition to that immediate crisis help, there is a longer-term rebuilding job to be done. We are going to need strong, job-creating growth if we are to recover from the past year. The economy will not come back exactly as it was before the first lockdown. The pandemic has exposed deep inequalities in society. It has shown the stark reality of what many key workers are paid. It has laid bare the vulnerabilities of our society and the very different circumstances of those who could work from home and those who had no choice but to go to work day after day, no matter the risk to themselves and their families In terms of other changes, the pandemic has been described as the “great acceleration”—10 years’ change crammed into one. The way we shop, work, pay for things, educate children, deliver healthcare and much else has been changed, probably forever. Technology and change apply to everyday life as never before. How do we make the most of these trends? How do we ensure that people are equipped for the economy that comes out of this pandemic and that these changes do not simply exacerbate existing inequalities? Those are the urgent questions facing politics today Expectations have been changed about what Governments can do, not only here but in the United States, as we have seen in recent weeks, and across the world. This will change the shape of the political argument in the future—not a return to the same old argument about tax and spend, but an argument instead about who can best equip the country for the future, who can rebuild the best and who can deliver the transition to greener jobs, heal the inequalities that have been exposed by the pandemic and help children to recover from the education that has been lost. The Finance Bill is silent on those challenges, as was the Budget. That is why it is a job only half done. It puts tax increases in place for the next few years that hit family finances before corporations, and it does so with no plan for the recovery that the country needs or one to rebuild the public realm—the public square—to make it more resilient in the future. That is why we have tabled the reasoned amendment on the Order Paper. The second half of that job—what the country has to do—is still to come, and that will be where the argument over the best economic future for the country and how we truly recover from the events of the past year is played out.
On behalf of my constituents, I join Members across the House in expressing my deepest sympathies to Her Majesty the Queen and the royal family on the death of His Royal Highness the Prince Philip, the Duke of Edinburgh. I would also like to briefly take the opportunity to pay tribute to my colleague, Dame Cheryl Gillan, who passed away over the recess. We worked closely together on the 1922 committee between 2017 and 2019. She was an unflappable lady and always good humoured. I cannot quite believe that she has left us, and it goes to show that we often do not know how much people mean to us until they are gone I turn to the matter of today’s debate, which it is a privilege to close on behalf of the Government. I thank all Members for their contributions. We have heard some excellent speeches, and in particular, I thank Members such as my right hon. Friend the Member for Wokingham (John Redwood) and my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) for the many deeply considered reflections they have shared based on the significant knowledge and experience they have gained outside the House. I will address as many points as I can, and I am sure we will consider in Committee those that I do not get to The Bill’s first purpose is to protect jobs and livelihoods threatened by covid-19 by providing tax support to businesses and individuals. It boosts some of the hardest hit industries through extending the VAT reduction for the hospitality and tourism sectors. It provides extra security for workers in the housing sector by maintaining the temporary cut in stamp duty until the end of June. My hon. Friend the Member for Wimbledon (Stephen Hammond) raised the issue of businesses that are ineligible for support, such as English language schools in his constituency. The Finance Bill supports struggling businesses by allowing them to carry back up to £2 million of losses and receive refunds for tax paid in additional previous years further to the one year provided at present In addition, the Bill contains a number of other measures that will provide a helping hand to businesses and individuals at this most difficult of times. I thank the hon. Member for Weaver Vale (Mike Amesbury), my hon. Friend the Member for North Norfolk (Duncan Baker), the hon. Members for Brentford and Isleworth (Ruth Cadbury), for Belfast South (Claire Hanna), for Bethnal Green and Bow (Rushanara Ali) and for Gordon (Richard Thomson), and all other Members who raised points on their constituents’ behalf on this issue The Bill has a second important purpose: to support the Government’s efforts to rebuild the nation’s finances, as eloquently expressed by my right hon. Friend the Member for Central Devon (Mel Stride), so that we have the fiscal flexibility to respond to new crises. As the Chancellor said at the Budget, “our approach to fixing the public finances will be fair”, asking those who can afford to contribute to play their part, while “protecting those who cannot.”—[Official Report, 3 March 2021; Vol. 690, c. 256.] That is why the Bill maintains the income tax personal allowance and the higher rate threshold at their current levels from next year, and why it maintains the pensions lifetime allowance, the threshold for capital gains tax and the threshold for inheritance tax at 2020-21 levels As my right hon. Friend the Financial Secretary to the Treasury said, businesses have received over £100 billion of support through this crisis; it is only right that we ask the firms with the broadest shoulders to support our recovery. Therefore the rate of corporation tax will increase to 25%, but only from 2023. I was very pleased to hear the faintest of praise for that measure from the hon. Member for Walthamstow (Stella Creasy). Those Members who have reservations about the impact on small businesses should know that small businesses with profits of £50,000 or less, which make up 70% of actively trading companies, will be protected from that rise. Let me also remind the House that a 25% corporation tax rate is still the lowest in the G7 My right hon. Friend the Member for Central Devon asked why the diverted profits tax is maintained, not widened. This tax is charged at a higher rate than corporation tax to discourage the diversion of profits that should be taxed in the UK to another country. The six-point differential between the main rate and the DPT rate has proven an effective deterrent, and that is why the diverted profits tax is being increased from 25% to 31% from April 2023 to maintain the current differential My hon. Friend the Member for Mid Norfolk (George Freeman), the hon. Member for Richmond Park (Sarah Olney) and my hon. Friend the Member for Hertford and Stortford (Julie Marson) all raised the important issue of investment and productivity, and I thank my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) for praising our Help to Grow scheme The measures in the Bill support the Government’s goal of an investment-led recovery from coronavirus. Our super deduction will allow companies to claim 130% capital allowances on qualifying plant and machinery investment from this month until 2023. That is the biggest two-year business tax cut in modern history, and it will support firms to make a transformative investment in the UK’s future growth and prosperity HMRC assessed the potential for fraud and tax avoidance—something which some Members raised. There are a number of safeguards in the legislation to prevent such abuse, such as the exclusions of connected party transactions and second-hand assets. The legislation introduces a new anti-avoidance provision that applies to counteract arrangements that are contrived, abnormal or lacking a genuine commercial purpose In addition, the Bill enables the Government to designate tax sites in freeports in Great Britain, as referenced by the hon. Members for Glenrothes (Peter Grant) and for Bootle (Peter Dowd) and my hon. Friends the Members for Redcar (Jacob Young) and for North West Durham (Mr Holden), where, once approved, eligible businesses will be able to benefit from a number of tax reliefs, including capital allowances and relief from stamp duty. I am particularly grateful to my hon. Friend the Member for North West Durham for his rebuttal to the hon. Member for Ealing North (James Murray), who sought to link, incredibly, freeports to organised crime. I reassure my hon. Friend the Member for Waveney (Peter Aldous) that we do expect freeports to enhance the incentives in place in areas like his that already have enterprise zones I acknowledge the issues raised by the right hon. Member for East Antrim (Sammy Wilson), including about steel imports into Northern Ireland under the Northern Ireland protocol, and I welcome his remarks on clause 97. He is right to point out what the effect of 25% tariffs would be on engineering firms in Northern Ireland. The Government have been working closely with the steel sector to address that issue, and clause 97 is an example which shows that we are very much committed to ensuring that the protocol works for the people of Northern Ireland Let me remind the House that the Finance Bill also has a number of purposes beyond this crisis. As the Financial Secretary outlined earlier, it continues the Government’s work of building a fairer and sustainable tax system. The hon. Member for Strangford (Jim Shannon) raised air passenger duty. The Bill seeks to set air passenger duty rates for April 2022, and so will not take immediate effect. It will only increase long-haul APD rates in nominal terms, while short-haul rates will remain frozen at current rates, which will benefit over 75% of passengers. Long-haul economy rates, for example, will increase by only £2 The Bill improves tax transparency by paving the way for the UK to implement the OECD’s international reporting rules for digital platforms, stops tax cheats by strengthening our existing anti-avoidance regimes and tightening the rules designed to tackle promoters and enablers of tax avoidance schemes, and provides even more certainty to taxpayers by setting out a more consistent, fairer penalty regime across VAT and income tax self-assessment. In addition, it will help to deliver a low-carbon future, as highlighted by my hon. Friends the Members for Arundel and South Downs (Andrew Griffith) and for Stoke-on-Trent Central (Jo Gideon) and the hon. Member for Ceredigion (Ben Lake), with the introduction of a plastic packaging tax and by removing most sectors’ entitlement to use red diesel from April next year. I know that my hon. Friend the Member for St Austell and Newquay (Steve Double) raised concerns about the policy. I will ensure that officials continue to engage with the sector, and he should receive a letter from me shortly. We recognise that it will be a big change for some businesses. They have another year before changes take effect, and we are doubling the funding provided for energy innovation through the new £1 billion net zero innovation portfolio, which will support the development of alternatives that businesses can switch to As every Member of the House will be all too aware, the past year has been a time of deep economic challenge. The Bill plays a major part in allowing us to meet those challenges today while readying the country for a better tomorrow. For that reason, I cannot support the reasoned amendment, and I commend the Bill as it stands to the House Question put, That the amendment be made.
I rise to speak about the use of “Do not attempt cardiopulmonary resuscitation” notices during the pandemic. Last year, the health service was hit by the worst crisis in its history. The whole country was told to stay at home for one simple reason: to save the NHS. That meant not overwhelming the system with too much demand—too many people needing care. We faced a real nightmare scenario of the NHS not being able to treat people who were sick and dying. The horrific idea emerged of doctors or local health managers or the NHS itself having to play God to decide who should live and who should die by deciding who should get treatment and who should not. Thankfully, the NHS was not overwhelmed. This, of course, was mostly due to the heroic work of frontline staff. It is also because every measure possible was put in place to reduce pressure on hospitals. That included people staying at home, building new hospitals at record speed and getting people out of hospital as fast as possible, including to care homes. This is where the occasion for the DNACPR notices came about Care homes found themselves under enormous pressure, too. Stories emerged last spring of blanket DNACPR policies being put in place in care settings. They were for people with certain characteristics—people with learning disabilities, people with certain complex needs, and people with life-limiting illnesses. This was done, the report said, without consultation with patients themselves or with families. All this was quite wrong and against all the guidance. Indeed, in April last year, the Care Quality Commission issued a joint statement with the British Medical Association, the Care Provider Alliance and the Royal College of GPs, reminding all providers that it is unacceptable for advanced care plans with or without DNAR notices to be applied to groups of people of any description. I am pleased that they did it. I am particularly pleased that the Department of Health and Social Care— I understand that the Minister herself was responsible—asked the CQC to investigate these reports and to review how DNAR orders were used during the pandemic. I will come to its findings in a moment I want to make it clear that DNACPR orders are an appropriate part of our health and care system and can be a right and proper part of an individual’s care plan. We need to distinguish between what might be called beneficial and futile uses of CPR. An obvious example of beneficial CPR is for young people with neuro-degenerative conditions. Respiratory arrest is common for these patients, but with CPR they have an almost 100% survival rate. For them, it is essential and necessary. If a patient’s other vital organs are shutting down—if they are dying—CPR can do little.
The hon. Gentleman and I share a very common cause, and I appreciate him bringing this debate forward. Does he not agree that for families such as mine who, last year, lost a loved one—my mother-in-law—we would like to believe that any and every measure was taken to save life. The stories that we have heard and that he has referred to are certainly heartbreaking. I very much share his concern.
I thank the hon. Gentleman for his intervention and I extend my condolences to him and his family for the loss that they have suffered. I absolutely agree with him. The value of this debate is perhaps to help communicate the expectation that all patients receive the care that they need right up until the moment of death CPR can greatly distress the patient and their family in the last moments. CPR involves a team rushing to the bedside, shoving aside any family members who are gathered around and using what is basically a violent procedure, sometimes involving the breaking of ribs to try to restart the heart. As one doctor interviewed about CPR described it, it can be chaotic, traumatic and brutal. That is not what any of us would wish when our death is imminent, even if it extends life for a few minutes or hours. I have every sympathy with doctors and care home staff who want patients who are approaching death and their families to consider using DNACPR notices, but we have to be really careful about how they are used. That is not just because of the obvious immorality of a blanket policy that effectively judges some people as worth saving and some people as better off dead without consideration for their circumstances or their wishes, but because having a DNACPR notice influences the care people get more generally. There is anecdotal evidence from care homes that patients who have requested they are not resuscitated are not cared for as well as others. They might miss out on antibiotics for a chest infection, for example, or some other treatment for a reversible condition The essence of the responsibility of doctors and care staff is that care should persist for all, whatever their condition or capacity. That responsibility is well established in law and guidance, and I particularly value the principles in the Mental Capacity Act 2005, which seeks fundamentally to honour the dignity of the individual, no matter their capacity or condition. The 2005 Act also sets out guidance on best interests, which is the test that should be used to determine medical treatment in the event of the individual being unable to decide for themselves. Crucially, a best interests consideration requires decision makers to take a view as if they were the patient. It is not about what they think is best, but what they think the patient would want, and that is vital The CQC review concluded in February, and I am greatly relieved by some of its findings and very concerned by others. I am relieved that it did not find evidence of blanket DNACPR policies being applied as official practice by any health or care provider. It also found evidence of really good care being provided, including with the use of DNACPR orders on an individual case-by-case basis, with proper consultation and consideration of the patient’s best interests The CQC report also causes me concern that de facto blanket policies may have been in operation largely because we simply cannot tell everything that has been going on. The report highlights some very serious failings. Of the 166 care records that the CQC reviewed, 103 should have included a best interests assessment. In only 33 of these cases is there evidence of an assessment being carried out. Talking to patients and their families, the CQC found that 30% of patients with a DNACPR decision and 43% of families and carers did not feel that the patient’s best interests were fully considered. I am glad to say that the opinion of people with learning disabilities and their families was more positive about best interests considerations in their DNACPR decisions I do not believe that providers have been applying blanket policies, but what I am concerned about is the potential for such a thing. I am concerned that not all health and care providers are properly applying best interests considerations in the advance care planning they do with patients As the CQC said, we need to take a number of essential steps to prevent the possibility of abuse. There are three main practical recommendations, and I hope the Minister can confirm that her Department is working to implement all of them. The first is that we need a more consistent national approach to the use of these notices. That emphatically does not mean a blanket policy for which patients should receive them, but the opposite: a process to ensure that all patients are treated as individuals. The CQC report particularly highlighted the recommended summary plan for emergency care and treatment—or ReSPECT—process, which helps everyone involved to make informed decisions about an individual’s future care and treatment Secondly, we need to enable these conversations through proper investment in the training and support of the staff who will have them. Thirdly, and crucially, we need proper oversight and assurance that the decisions made have proper record-keeping. It really is scandalous that that was not in place already last year. We need comprehensive records of conversations and decisions. Integrated care systems should be responsible for monitoring the use of DNACPR notices, and the CQC should be responsible for investigating anomalies, such as particularly high or low numbers of orders in particular places I conclude with a final and more general observation about what we need, which goes beyond these vital but ultimately technical remedies to the potential for abuse. We need a moral framework that honours the dignity of sick, disabled, elderly or dying people. That is not something that the CQC or the DHSC or this Parliament can simply draw up on a piece of paper. Indeed, I am nervous about the idea of over-regulating end-of-life care and reducing it to a process, because at the end of that road lies the awful scenario we are trying to avoid—a blanket rule on who should live and who should die We are never going to be able to write the rules of life and death and every attempt to do so is ultimately dystopian. That is why the ultimate locus of decision making should be in the conversations between doctors and patients, and those who know and love them. We cannot regulate for good conversations, but we can certainly do our best to facilitate them, and the CQC recommendations will help that. The only way to ensure good conversations is to ensure that doctors and families have at heart the best interests of patients. We in this place can encourage good conversations and the right decisions by stating as clearly as we can that human life is infinitely precious, right until the end.
I thank my hon. Friend the Member for Devizes (Danny Kruger) for securing this debate on the important issue of the use of “Do not attempt cardiopulmonary resuscitation” orders and the decisions that were taken during the pandemic. We remain crystal clear that the blanket application of DNACPR decisions is unacceptable, and that standards and quality of care should be maintained even in pressurised circumstances such as we have had over the past year with the recent pandemic. Reports of inappropriate or blanket application of DNACPR decisions across groups of people, particularly our most vulnerable, have been—I think my hon. Friend used this word himself—shocking, and failure to consult people and their families on decisions around CPR causes significant distress My hon. Friend mentioned that the review undertaken by the CQC also saw examples of good practice. Much work has taken place over the past year, and I would like to take this opportunity to update the House on the action that the Department, the NHS and clinical leaders have taken to tackle this issue and to ensure that excellent patient-centred care is maintained In April and May last year, clinical leaders issued a number of joint statements and letters to health and care providers and professional bodies, making it clear that there has never been an instruction or a directive issued by the NHS to put in place blanket DNACPR orders. Those communications also directly addressed and clarified best practice around the use of DNACPRs for people with learning disabilities, and rightly challenged assumptions about clinical frailty regarding that particular group of people Clear messages on the use of DNACPR decisions were also reinforced in our adult social care winter plan in September last year. We made it crystal clear that any advanced care decision, including DNACPR decisions, should be fully discussed with the individual and their family, where possible and appropriate, and signed by the clinician responsible for their care I have personally been through this process recently. It is true, as my hon. Friend mentioned, that every end-of-life scenario is different. No two cases are ever the same. In my particular case, it was someone with very late stage 4 cancer, and the discussion was very simple and very easy and took a matter of moments. It involved family and clinician, but the person making that decision was very precise about what they wanted. That scenario exists frequently, but there are also people who may not have the full capacity or may require further input and discussions around the decisions that are being taken To ensure that we could take early learnings and address directly concerns about inappropriate DNACPR decisions, because we are aware of the variation, I commissioned the CQC to review how DNACPR decisions were being made during the pandemic. The CQC worked at pace to gather insight from across the health and care system. It took in views from experienced staff, and from patients, their families and representatives, to produce an in-depth thematic review of such an important yet complex—and it is complex—issue. I thank the CQC once again for its work, which was speedily and efficiently completed, as well as all those who participated in the review and shared their valuable insight and experience The review shone a light on what good conversations around end-of-life care should look like, illustrating examples of clinicians and care staff going above and beyond to deliver these conversations in a caring and compassionate way, despite the pressures posed by the pandemic. However, it also drew a worrying picture of the reasons that some of those conversations fell short of the high-quality and personalised care that people deserve. As my hon. Friend mentioned, the report identified three key areas where improvements must be made First, the CQC found a greater need for information, training and support for health and care professionals to hold DNACPR conversations. In particular, the report raised concerns that a range of equality groups, including “older people, people with dementia and people with a learning disability,” were not being supported in the right way Secondly, the report found that there lacked a consistent national approach to advanced care planning. The language used in holding DNACPR conversations was often complex, with many different types of advanced care plans in use. Clearly, this lack of consistency runs the ongoing risk of affecting the quality of care that people receive Finally, the report found that the right processes were not always in place to ensure that people experienced personalised, compassionate care in relation to DNACPR decisions. Poor record keeping and inconsistency in how DNACPR decisions were reviewed, as well as a lack of system oversight, meant that it was not always possible to understand how effective these conversations actually were Over the last year, our NHS and adult social care sectors have truly been the backbone of our nation, and staff have worked tirelessly to deliver outstanding care. Nevertheless, we must use these learnings as an opportunity to do better in areas where we can do more. Going forward, we must ensure that staff across health and social care have the tools required to hold these conversations appropriately and compassionately. We must also begin the journey towards normalising these conversations and giving patients, their families and representatives the knowledge to truly be equal partners in their care When staff, patients and their families have concerns, we must put in place the best processes to ensure that people feel supported to speak up. That is why we strongly recommend the findings of the review and, as the Minister responsible for this, why I am personally committed to driving forward its recommendations. To that end, I will be heading up a ministerial oversight group that will bring together partners from across the health and social care system, as well as the voluntary and advocacy sector, ultimately to ensure that everyone experiences the compassionate care that they deserve Sensitive and well communicated DNACPRs can and should be an important part of patient care. I am not sure whether my hon. Friend is aware that nhs.uk has now put up a public facing message to explain the process of DNACPRs, how those decisions should be taken and how those conversations should happen, so that everybody who wants to know what the process is can go to the website and see it for themselves. We deliberately made it a public facing message and wanted it to be part of the general conversation around this issue. We are committed to taking continued action to ensure that these decisions are managed and communicated well in all settings Question put and agreed to. 9.3 pm House adjourned.