Monday Volume 692 19 April 2021 No. 202

HOUSE OF COMMONS OFFICIAL REPORT

PARLIAMENTARY DEBATES (HANSARD)

Monday 19 April 2021 © Parliamentary Copyright House of Commons 2021 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 635 19 APRIL 2021 636

aluminium composite material-clad buildings. We are House of Commons clear that buildings below 18 metres also need help, which is why we have tabled this generous package of Monday 19 April 2021 support where otherwise there would be no support. It is also clear that developers and building owners are stepping up to the plate and remediating the buildings The House met at half-past Two o’clock for which they are responsible, and are providing funds so to do. PRAYERS Rushanara Ali [V]: Many leaseholders have spent [MR SPEAKER in the Chair] their third lockdown stuck in buildings with serious safety defects and are unsure when the works will be Virtual participation in proceedings commenced (Orders, completed. The Minister talks about providing a generous 4 June and 30 December 2020). scheme for blocks of 18 metres or less. Can he explain [NB: [V] denotes a Member participating virtually.] to the House how generous that programme is, how much is being committed and when our constituents can expect the works to be completed—both for blocks Oral Answers to Questions under 18 metres and blocks over 18 metres that require remedial works—so that people do not have to continue to live in potential death traps? HOUSING, COMMUNITIES AND LOCAL GOVERNMENT Christopher Pincher: With respect to buildings over 18 metres, the hon. Lady will know that we set aside The Secretary of State was asked— funds of £1 billion using the building safety fund in order to deal with properties with non-ACM dangerous Fire Safety: Buildings under 18 Metres cladding material. Some 106 buildings have already begun that work and we estimate that a further 338 will Janet Daby (Lewisham East) (Lab): What support he begin the work by September, which was the date that plans to provide to (a) leaseholders and (b) tenants we set for work using BSF funds to be undertaken. living in buildings under 18 metres of height with With respect to buildings below 18 metres, we want to flammable cladding. [914294] ensure that we are prioritising affordability and accelerating remediation where it is required. It is a complex set of Rushanara Ali (Bethnal Green and Bow) (Lab): What challenges, but we are determined to meet them and to steps he is taking to support leaseholders living in get this right, which is why we will bring forward further buildings under 18 metres in height with (a) dangerous information as soon as we are able to do so. cladding and (b) other fire safety defects. [914299] Mike Amesbury (Weaver Vale) (Lab): Can the Minister The Minister for Housing (Christopher Pincher): Buildings explain why three quarters of cladding systems on new below 18 metres in height will not carry the same medium-rise buildings have used combustible insulation inherent risk as a building above 18 metres. However, materials despite a proposed Government ban on them? some will need remediation. Togive residents in lower-rise That is 51 out of 66 residential blocks of 11 to 18 metres buildings peace of mind, we are establishing a generous in height built in 2019 and 2020 that are now liable for scheme to ensure that, where required, cladding can be the imposition of unwanted Government loans. There remediated on buildings between 11 metres and 18 metres. is the nightmare of EWS1 forms, inflated insurance Leaseholders will be asked to pay no more than £50 a premium costs, service charges and much, much more. month, protecting them against these unaffordable costs. At what stage are the ministerial team going to get a We will work at pace to develop the details of the grip of this chaos? scheme and communicate them to the House as quickly as possible. Christopher Pincher: The hon. Gentleman knows full well the work that the Government have undertaken to Janet Daby [V]: No one needs reminding that we are ensure that we address this complicated issue, which nearly at the four-year anniversary of the Grenfell involves buildings, building owners, warranty providers, disaster, yet many of my constituents remain trapped in insurers and leaseholders themselves. We have brought dangerous homes and, because of this Government’s forward a very generous set of schemes. More than arbitrary decision to only help those in buildings above £5.1 billion of public money has already been allocated 18 metres, they feel hopeless and invisible. Does the to remediate taller high-rise buildings. We have proposed Secretary of State agree that no leaseholder should have a generous scheme to support people living in leasehold to pay for fire safety problems that are simply not their properties between 11 and 18 metres. We will announce fault, and that people should not be required to pay further details of that scheme shortly so that the people even £50 or less a month, regardless of whether their living in them can have peace of mind that they have a building is 7 metres, 18 metres or even lower? way out too. Christopher Pincher: The hon. Lady is right; great progress has been made over the last four years to UK Shared Prosperity Fund ensure that the remediation of high-rise properties is undertaken, because that is where we have been guided Jessica Morden (Newport East) (Lab): What progress by official advice. I can tell the House that remediation his Department has made on the design of the UK has either been completed or is under way in 95% of shared prosperity fund. [914295] 637 Oral Answers 19 APRIL 2021 Oral Answers 638

The Minister for Regional Growth and Local Government The Minister for Housing (Christopher Pincher): In (Luke Hall): The UK shared prosperity fund will help 2018 and 2019 we saw the highest and the second-highest to level up and create opportunity across the United number of first-time buyers since 2007. With the effect Kingdom. The spending review 2020 set out the main of covid, 2020 saw a 14% decrease from the 2019 total. strategic elements of the UKSPF in the heads of terms, The Government are now redoubling their efforts to and we will publish a UK-wide investment framework assist first-time buyers. That is why today we launched in 2021 and confirm a multi-year funding profile at the themortgageguaranteeschemeofferinga95%loan-to-value next spending review. We are providing an additional mortgage, developing first homes and enabling first-time £220 million through the UK community renewal fund buyers to purchase new-build homes locally with at least to help those areas to prepare for the introduction of a 30% discount—a determined effort to support buyers. the UKSPF. Ms Buck [V]: For many first-time buyers, especially in Jessica Morden [V]: Wales received £375 million a cities, the options are mainly new-build and leasehold year under the EU structural funds but this Government’s properties, but many of them are walking into a new levelling-up fund is giving Wales only £30 million a nightmare of costs. Inside Housing is today reporting on year, while the community renewal fund’s pilot projects purchasers buying properties as safe only to discover split £220 million across the four nations. Can the almost immediately that the ratings are changing, leaving Minister see why my constituents are already sceptical them with huge bills for waking watch, and unsaleable that this Government will fulfil their promise that Wales properties. Does the Minister know how many first-time will receive “not a penny less”? buyers are affected by this, and why is the only truly blameless party, the purchaser, the one who is still left Luke Hall: Levels of investment from EU structural carrying the can and the risk? funds will be higher across the United Kingdom in Christopher Pincher: There are a suite of options for ’21-22 than they were in ’20-21. We are also finding first-time buyers. They can purchase a home using the additional UK funding to support our communities to Help to Buy scheme.They can take advantage of our shared pilot programmes and new approaches. The hon. Lady ownership scheme, whereby, under the new proposals, mentions the levelling-up fund. Her local authority will failings and defects will be fixed by the developer for the receive £150,000 capacity funding support with that first 10 years. As I said, the mortgage guarantee scheme bidding process. As we set out in the spending review, that we announced today allows first-time buyers and funding for the UKSPF will ramp up so that total others to purchase homes with as little as 5% deposit. domestic UK-wide funding will at least match EU receipts, reaching £1.5 billion a year. These funds will We are determined to ensure that first-time buyers are have a real, lasting impact on communities that will able to achieve their dream and get on to the property make a significant difference to tackling deprivation ladder. That is a world away from the campaign that the and inequality, and binding together our precious United hon. Lady chairs—the campaign of Sadiq Khan, who Kingdom. promised to build 116,000 homes in London but has thus far managed to deliver only 28,000. I wonder Kate Hollern (Blackburn) (Lab) [V]: I thank the whether that is why the housing pledge, which was at Minister for recognising when I met him last week that the top of his campaign in 2016, is now second from the UK shared prosperity fund will need to be more bottom in 2021. I think that that says a lot about transparent in a way that the towns fund clearly was Labour and its priority for housing. not. If he intends to keep this promise of more transparency, Thangam Debbonaire (Bristol West) (Lab): That was when will he consult on the UK shared prosperity fund quite staggering. I do not know whether the Minister was that his Department committed to three years ago, and listening to my hon. Friend the Member for Westminster will his Department publish how much funding English North (Ms Buck). He avoided answering her, and he regions will get? previously avoided answering my hon. Friend the Member for Weaver Vale (Mike Amesbury), so I will give him another Luke Hall: The point that I made to the hon. Lady go. Will the Minister please tell us what on earth the last week is that we have published all the details in the justification is for allowing new buildings to be built technical note that is set out on gov.uk. We thought that with dangerous cladding and other fire safety defects? was the right thing to do. At the spending review last What will he do to ensure that the number of first-time year, we set out the main strategic elements of the buyers moving into homes with dangerous cladding is UKSPF in the heads of terms. The funding profile will zero? be set out at the next spending review and we will publish further details in a UK-wide investment framework Christopher Pincher: I am grateful to the hon. Lady later this year. In the meantime, the community renewal for giving me a second go. I point out that she has no fund will deliver real, lasting change into communities policies of her own. We are quite prepared to let her right across the country. It will tackle inequality and borrow some of ours, because we have a lot of them. We deprivation in some of the communities that need it the are determined to make sure, through the building most and were neglected for so long by Labour, and of safety regime that we will introduce, that we have a course one of its key aims will be to work to bind world-class building safety programme. Wehave consulted together our precious Union. on the challenge of combustible products, which is a very complicated one,and we will make our announcements Housing Market: First-time Buyers on those in due course. But make no mistake, Mr Speaker: we are determined to support buyers, we are determined Ms Karen Buck (Westminster North) (Lab): What to get more people on to the property ladder and we are recent assessment he has made of trends in the number of determined to build better-quality homes—things that first-time buyers entering the housing market. [914296] the Labour party talks about, we are doing. 639 Oral Answers 19 APRIL 2021 Oral Answers 640

Shared Prosperity Fund/Levelling-up Fund: Net Zero Emissions: National Target Devolved Administrations Kirsten Oswald (East Renfrewshire) (SNP): What Fleur Anderson (Putney) (Lab): What discussions he recent discussions he has had with the devolved has had with the Secretary of State for Business, Energy Administrations on the (a) levelling-up fund and (b) and Industrial Strategy on the role of his Department UK shared prosperity fund. [914297] in meeting the national target of net zero emissions by 2050. [914298] The Minister for Regional Growth and Local Government (Luke Hall): Along with the Secretary of State, I met The Parliamentary Under-Secretary of State for Housing, the Minister for Trade, Innovation and Public Finance Communities and Local Government (Eddie Hughes): in the Scottish Government last month to discuss the The simple answer to the hon. Lady’s question is that levelling-up fund and the UK shared prosperity fund. lots of discussions have been had. This Department We will continue to engage with the devolved works very closely with the Department for Business, Administrations and, importantly, with local authorities Energy and Industrial Strategy to set us on the path to and communities in Scotland directly and wider public ensuring that all homes and buildings meet that national and private sector organisations to ensure that funding net zero target. As no doubt you know, Mr Speaker, this is used to best effect and to support citizens right across is part of the Prime Minister’s 10-point plan to build the country. back greener post pandemic and ensure we achieve net zero emissions by 2050. Kirsten Oswald [V]: A joint statement by Ministers from the Scottish, Welsh and Northern Irish Governments Fleur Anderson [V]: Heating the UK’s draughty homes criticised the UK Government for using the United makes up 14% of the country’s carbon emissions. Many Kingdom Internal Market Act 2020 to bypass devolved of my constituents in Putney wanted to apply for the Administrations.Is it not the case that the UK Government green homes grant, but cannot because it has been intend to use levelling-up funding to shore up support scrapped. The Labour Government set out the original for the Union and to undermine the very basis of plans for zero-carbon homes in 2006, which set a goal devolution? If not, what are the Minister’s plans to of achieving zero-carbon homes by 2016. Why was this devolve the funding within the framework of the devolution ambition abandoned by this Government in 2016, why settlement? was the green homes grant scrapped this month by this Luke Hall: I can confirm that we want to do everything Government and what will be replacing it? possible to enhance and protect our precious Union. We will work with communities directly in Scotland, Eddie Hughes: The green homes grant is of course a Wales and Northern Ireland to deliver this important BEIS initiative, but I can tell the hon. Lady that although funding. Wehave already committed to providing capacity it was making encouraging progress—with over 96,000 funding to local authorities in all the devolved applications, and 39,000 vouchers had been issued via Administrations, to get them started on preparing for the scheme—given the fact that it was not progressing these funds. We are excited about working with them, quickly enough, we have taken stock and decided to and they are excited about working with us on delivering reconsider our approach. Last month, the Secretary of these funds. We have had huge interest from councils State for BEIS announced £300 million of extra funding and communities that want to work with us to deliver for green home upgrades through the local authority real and lasting change for their communities, and that delivery element of the green homes grant scheme and is why there is such a high level of enthusiasm and the social housing decarbonisation fund. This brings engagement. the total spending on energy efficiency to £1.3 billion. Patricia Gibson (North Ayrshire and Arran) (SNP): Covid-19: Hospitality Venues and High Streets Sixty-six per cent. of Scots are deeply concerned about the way that the United Kingdom Internal Market Act Caroline Nokes (Romsey and Southampton North) seeks to undermine Scotland’s Parliament. Alongside (Con): What steps he is taking to support the re-opening the unilateral decision making of the UK Government of hospitality venues as the covid-19 lockdown restrictions regarding the shared prosperity fund and the levelling-up are eased. [914300] fund, despite what the Minister just said, this is being used to aggressively assert Unionism in Scotland and Matt Vickers (Stockton South) (Con): What steps he bypass Scotland’s Parliament. Meanwhile, 33 of the last is taking to help high streets recover from the covid-19 41 polls show majority support for independence in outbreak. [914307] Scotland. Does the Minister think that this aggressive and assertive Unionism, trampling all over Scotland’s The Secretary of State for Housing, Communities and Parliament, is endearing the people of Scotland to the Local Government (Robert Jenrick): Last week, we saw Union? friends and families reunited, our favourite shops, pubs and cafés reopened and an injection of sunny optimism Luke Hall: I urge the Scottish nationalist party to into hospitality and our high streets as we move to the trust their local councils and local communities, which next stage on our road map out of the lockdown. To are so passionately engaging in this project and working help these measures, my Department has introduced with us, using the capacity funding we have committed crucial planning easements, including fast-track pavement to them to start this process. They will work with us on licences, which are helping to make al fresco dining a delivering these funds, which will tackle deprivation reality, enabling communities to hold popular outdoor and enhance communities right across Scotland, and events such as markets and allowing pubs to set up we look forward to working with them with determination marquees in their gardens for the whole of the summer—all and enthusiasm in the weeks, months and years ahead. without the need for costly planning permissions. 641 Oral Answers 19 APRIL 2021 Oral Answers 642

Caroline Nokes [V]: In Romsey and the surrounding We made a number of changes, to protect, for example, villages,much use has been made of the planning easements nurseries and to provide further protections for conservation by pubs, cafés and restaurants to install temporary areas, but the Opposition’s approach, which could be awnings, marquees, gazebos and so on. Please can my characterised as the ostrich’s head in the sand, is not the right hon. Friend reassure me that plenty of time will be one that we have chosen to take. We think that high given to pubs and so on before these structures have to streets and town centres are undergoing the biggest be removed? In many cases, they will continue to provide transformation not just in our lifetime but at least since additional capacity even when indoor socialising is allowed, the second world war and that we need to introduce and our hospitality sector has had a very tough year. measures that are proportionate to the scale of the challenge. That is why we are making billions of pounds Robert Jenrick: I am delighted to hear that my right of investment through our towns and high streets and hon. Friend’s constituents, like millions of others across levelling-up funds, and that is why we are pursuing the the country, are making use of these easements to enjoy planning reforms that the hon. Lady refers to, and I the summer sunshine and to support local pubs, cafés think most reasonable people across the country would and restaurants. When the first lockdown began, we agree. I note that in her own constituency Mike Cartwright, inherited a planning rule called the 28-day rule, which who runs the Bradford chamber of commerce, seems to enabled a business to set up a marquee or another agree. He says: temporary structure for just one month without seeking “Having unused space is bad for the economy,” planning permission. We doubled that, and now we are and bringing forward the legislation to ensure that that will remain in place for at least the whole of the summer, and “buildings remaining empty for years is to no one’s benefit.” I hope perhaps significantly longer. That will enable We agree; that is why we are taking action. small businesses the length and breadth of the land, like those in my right hon. Friend’sconstituency,to put up those Social Housing marquees and gazebos, and get the full benefit of them.

Matt Vickers [V]: Our town centres lie at the heart of Justin Madders (Ellesmere Port and Neston) (Lab): our communities. They should be a source of pride and What recent estimate he has made of the number of be attractive to visitors, but vacant buildings have become additional council and housing association homes required a blight in many of them. Can my right hon. Friend to meet demand for social housing. [914301] confirm that he is taking steps to make it easier for vacant buildings to be repurposed or demolished, so The Minister for Housing (Christopher Pincher): Planning that we can make sure our town centres are attractive policy is clear: it is for local authorities to identify the places that people want to visit? size, type and tenure of the housing needed for different groups in the community, including those who require Robert Jenrick: My hon. Friend is absolutely right. affordable housing. We are committed to increasing the Our high streets have been hit hard by the pandemic, supply of affordable housing and are investing over but the market forces have been amplified and magnified. £12 billion in the affordable housing programme over These are very long-standing issues and ones that we the next five years, the largest investment in affordable have been focused on for some time. We need to make housing in over a decade. some fundamental changes to ensure that we have a flexible planning regime so that businesses can adapt Justin Madders: Many of my constituents cannot and evolve, for instance by turning a café into a hairdressers afford to buy a house of their own and are finding that or a yoga studio into an office, all without the need for private sector landlords are using various devices to costly planning permissions, and where businesses and block access to that market as well, such as through buildings are sat empty and derelict, then to be able do guarantees and bond requirements, so council housing the logical thing and turn them into something else, or social housing is the only option, but demand is particularly homes. That is exactly why a few weeks ago outstripping supply, and, according to the Chartered we brought forward the planning changes to do that, Institute of Housing, outside London only a third of all and I hope that will see hundreds, if not thousands, of the social housing needed will actually be built in the homes being created in our town centres and on our next five years. So what does the Minister say to my high streets over the course of this year. constituents who find themselves with no housing options at all at the moment? Naz Shah (Bradford West) (Lab): The Secretary of State’s Department is bringing forward further permitted Christopher Pincher: Over the last 10 years around development rights that will allow gyms, crèches and 150,000 new homes for social rent have been built. We offices, as well as shops, banks and restaurants, to be have made it easier for local authorities to build their converted into homes without going through planning own council homes by changing the rules around the permission. Has the Department conducted an impact housing revenue account and by making it easier for assessment of how many cafés, pharmacies and corner them to get cheap loans through the Public Works Loan shops will be lost from our high streets, never to return? Board. Our new affordable homes programme, investing £12 billion-plus in new homes over the next five years, Robert Jenrick: The hon. Lady will be aware that we will double the number of socially rentable homes built have approached this issue with great caution and due to 32,000. I rather hope the hon. Gentleman’s local consideration. We have consulted on those matters and authority will take advantage of the reforms that we received thousands of responses, and we have made our have undertaken and the powers we have given local proposals on the back of that, so they have been carefully authorities, because in 2019-20, before the covid emergency, thought out to consider some of the issues she has raised. it built no social houses at all. 643 Oral Answers 19 APRIL 2021 Oral Answers 644

Levelling-up Fund already receiving capacity funding, so it is not true in any way to infer that every single Scottish local authority Richard Thomson (Gordon) (SNP): What criteria the will not receive support through this initiative. We are Government used to determine the prioritisation of hugely excited about the opportunities this presents us areas for the allocation of levelling-up funding. [914302] with. Weare going to be investing directly into communities. There is huge support for this funding. I strongly urge Stephen Flynn (Aberdeen South) (SNP): What criteria the hon. Gentleman both to read the documentation the Government used to determine the prioritisation of on the website and to get involved in playing a full part areas for the allocation of levelling-up funding. [914303] in the process.

The Minister for Regional Growth and Local Government Energy-efficient House Building (Luke Hall): The levelling-up fund will be allocated competitively and is open to all local areas. As we set Jeremy Wright (Kenilworth and Southam) (Con): out in the prospectus published at Budget, the index What steps he is taking to promote energy-efficient used for the levelling-up fund places areas in category 1, house building. [914304] 2 or 3 based on their need for economic recovery and growth, improved transport connectivity,and regeneration. The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Eddie Hughes): Richard Thomson: If the Minister does not mind my The future homes standard will ensure that new homes saying so, that index seems to be working in a rather produce 75% less carbon than those being built today. curious way. It has not escaped anyone’s attention that Those properties will be future-proofed, with low-carbon some Tory target areas in England seem to have done heating and high levels of energy efficiency, and they extraordinarily well out of this fund, yet areas such as will not need any further retrofit to become net zero in mine in the north-east of Scotland—Aberdeen City line with the electricity supply. That is what building Council and Aberdeenshire Council—are languishing back greener looks like. in levels 2 and 3 of the fund, despite being forecast to be hit hardest by Brexit. We know there was a power grab Jeremy Wright: I am grateful to my hon. Friend for with the United Kingdom Internal Market Act 2020. Is what he has said. As he knows, building regulations are not the truth that we are now seeing a corresponding one tool we can use to improve the environmental cash grab, because the Conservative Government know performance of new homes, and I am conscious that the that not even all the rhetoric in the world about shared Government are consulting on how those regulations prosperity and precious Unions can spare their party might be reformed. However, as he also knows, the from the hiding it is set to get from Scottish voters on 6 regulations in place at the moment require compliance May? by developers to a design standard rather than a performance-in-use standard. Is his Department considering Luke Hall: It is hard to see how the £150,000 per local whether that should change? In any event, when does he authority that we have already committed to is a cash expect revised and improved building regulations to be grab from Scottish communities. We are investing directly in place to compel that improved environmental in Scottish communities, with £125,000 in capacity funding performance? already. This is a bidding process, and rightly so, but we are providing that capacity funding, and for the first Eddie Hughes: My right hon. and learned Friend will round of funding at least 9% of the UK allocations will be delighted to know that we will update the regulations be in Scotland. As I said earlier, we are hugely excited relating to fuel, power and ventilation this year, in about the opportunities we have now to work directly advance of the introduction of the future homes standard with communities in Scotland. We have already been in in 2025. But we are not waiting for 2025; in the short touch, of course, with Aberdeen City Council and term, our priority will be to implement an interim 2021 Aberdeenshire Council to ensure that they have a good part L uplift. That sounds a bit esoteric, but it means understanding of the levelling-up fund, including, that there will be a 31% reduction in carbon production importantly,securing support from Members of Parliament. compared with the 2013 standard. With regard to the I very much hope that the hon. Gentleman will play a point that he makes about performance standard versus full part in that process. design standard, I would be delighted to meet him and his constituent to discuss that further. Stephen Flynn: I am afraid that answer simply is not good enough. Not only are the Tories seeking to bypass Patricia Gibson (North Ayrshire and Arran) (SNP): devolution; they are also seeking to bypass the needs of The SNP plans, during the next Parliament, to put Aberdeen. One hundred and twenty-three local authorities £1.6 billion into decarbonising the way buildings are have been placed in pot 1, yet Aberdeen has been heated in Scotland. Ambitiously, that equates to one dumped in pot 2. The consequence of that is clear for third of homes by 2030. Why are the UK Government all to see: it means that we will not have access to the failing to match Scotland’slevel of ambition to decarbonise funding that we need at this moment in time. Aberdeen our homes? accounts for a third of all job redundancies in Scotland since the start of the pandemic. If that is not a criterion Eddie Hughes: I am grateful to the hon. Lady for her for funding, what is? question. I am slightly disappointed, though. I thought she was going to rise to congratulate us on the social Luke Hall: It is published fully and frankly on the housing decarbonisation demonstrator fund, which has Government website. The hon. Gentleman can have a three excellent projects that are being progressed in look at it; I would advise him to do so. Authorities are Scotland. We on the Government Benches have no 645 Oral Answers 19 APRIL 2021 Oral Answers 646 shortage of ambition to reach our net zero target by town with £24.1 million of Government investment. 2050. I look forward to working with Opposition Members However, there are other towns in my constituency, to ensure we achieve that. such as Penistone and Chapeltown, that would also benefit from a co-ordinated community-led approach. Local Infrastructure Investment What plans does my right hon. Friend have to encourage local councils to support communities to develop their Rob Butler (Aylesbury) (Con): What plans he has to own local infrastructure development strategies? increase investment in local infrastructure. [914305] Robert Jenrick: I enjoyed visiting Stocksbridge just over a year ago with my hon. Friend and was delighted Miriam Cates (Penistone and Stocksbridge) (Con): to see its £24.1 million town deal announced by my What plans he has to increase investment in local right hon. Friend the Chancellor at the Budget. I very infrastructure. [914309] much look forward to seeing its exciting proposals come to life, including a new visitor centre for a gateway Giles Watling (Clacton) (Con): What plans he has to to the Peak district. I recognise the point she makes. She increase investment in local infrastructure. [914311] represents many other towns, such as Penistone and Chapeltown. We want to ensure that they, too, can benefit Dr Kieran Mullan (Crewe and Nantwich) (Con): What from much needed regeneration funding. That is why plans he has to increase investment in local infrastructure. bidding is now open for our levelling-up fund, worth [914325] £4.8 billion, which will deliver genuine local priorities by putting local support, including that of a Member of The Secretary of State for Housing, Communities and Parliament, at the heart of its mission. When I visited Local Government (Robert Jenrick): Infrastructure Stocksbridge, the birthplace of the modern umbrella, underpins our economy and improves people’s everyday my hon. Friend kindly gave me an umbrella. With the lives. Over the next five years, the Government plan to new local town deal and an excellent MP, I am hopeful deliver over £600 billion in public investment, the highest that the sun will keep shining on her constituency for sustained level since the 1970s as a proportion of GDP. many years to come. My Department is playing a leading role in that mission by making the biggest changes in the way we support Giles Watling [V]: I thank my right hon. Friend for local economic growth in a decade, with around £5 billion his earlier answer. Back in 2017, a £200 million funding of investment through the levelling-up fund and community gap was identified for infrastructure projects in Tendring. renewal fund, and our ongoing investment through As the Secretary of State knows, there is ongoing work the £3.6 billion towns fund. At the same time, we are to address areas of greatest need, such as roads, hospitals reforming our planning system to build more homes, and a personal campaign of mine to upgrade rail services and ensuring that developers pay their fair share through to Clacton and Walton, but our most significant funding a simpler, faster and more transparent infrastructure gap, as we look to deliver new housing, remains the levy. reported £100 million hole in our adult social care budget. What is my right hon. Friend’s Department Rob Butler: Aylesbury has seen unprecedented housing doing to address that? growth over the past 25 years and we will see much more in the years to come. Our infrastructure is currently Robert Jenrick: I thank my hon. Friend for his question. at breaking point, with traffic congestion a real problem This year, local councils will have access to an additional for local people. One way of alleviating that would be £1 billion for social care, on top of continuing all approval of the Aylesbury spur of East West Rail. What existing social care funding. He is right to raise the steps can my right hon. Friend take to work across point that new housing requires new social infrastructure Government, in particular with the Treasury, to secure as much as it does hard infrastructure, in terms of roads funding for that vital link to ensure that housing and railways. That is why we are bringing forward the development is matched by the appropriate infrastructure? infrastructure levy, which will capture more of the land value uplift and ensure that developers pay a fair share. Robert Jenrick: My hon. Friend is right to highlight It is also why we are working with local authorities, the need for transport infrastructure investment in the including Essex County Council, to ensure that they Milton Keynes-Oxford-Cambridge arc, which is one of can access the housing infrastructure fund and our new the fastest growing and most economically dynamic house building fund to get billions of pounds of investment parts of the country. I understand how important the into their communities. connection is to his constituents. I know he has met the Chief Secretary of the Treasury and the rail Minister to Dr Mullan [V]: Along with the rest of the Crewe town make the case for connecting Aylesbury to East West board, I was very pleased to submit our bid for investment Rail, an overall project of which I have been a long-term earlier this year to help Crewe to build back better. I supporter. He is right that more homes require more campaigned for us to get a town deal and I know what a infrastructure. That is why we have a £7 billion national positive impact it can have. Will the Secretary of State homebuilding fund, alongside the new infrastructure update me on when we can expect to hear what I hope levy proposed to capture more of the land value uplift will be positive news for Crewe? and ensure that when homes are built, they are built with the appropriate infrastructure as well. Robert Jenrick: I was delighted to receive Crewe’s town investment plan in January. Having visited my Miriam Cates [V]: It has been a privilege to co-chair hon. Friend’s constituency many times over the years, I the Stocksbridge towns fund board and work with the am excited to see the ambitious plans that have been local community to develop our plans to regenerate the developed for the town centre to welcome visitors and 647 Oral Answers 19 APRIL 2021 Oral Answers 648 shoppers and creating an integrated High Speed 2 hub provide accommodation that is decent and safe for station. The plans are very well developed. My officials those living in it. Where HMOs may pose a risk to the are currently conducting assessments and I look forward wellbeing of their inhabitants or to the local area, we to making an announcement in due course. have given local councils robust powers to regulate standards and management of HMOs. If necessary, Covid-19: Support for Local Authorities local planning authorities can also limit the proliferation of HMOs by consulting to remove the national permitted John Howell (Henley) (Con): What steps his Department development right. is taking to support local authorities during the covid-19 outbreak. [914308] Nick Fletcher: I am sure my hon. Friend would agree that, while most residents in HMOs are law-abiding The Minister for Regional Growth and Local Government individuals, there is no escaping the fact that very often (Luke Hall): We have so far allocated over £9 billion the residents in such premises lead extremely different directly to councils since the start of the pandemic and lifestyles from those of their neighbours. This has been local authorities are expected to receive over £3 billion a particular issue in the towns of Rossington and of additional support in 2021-22, responding both to Conisbrough, where residents have complained that the expenditure pressures and loss of income. This takes the increase in the number of HMOs has caused a spike in total support that we have committed to councils in antisocial behaviour and a loss of community spirit. England to tackle the impacts of covid-19 to over Despite this, I have not seen the Government mention £12 billion. the necessity of combating this phenomenon in the Mr Clive Betts (Sheffield South East) (Lab): On planning White Paper. What reassurances can my hon. 11 November, I and other representatives from Sheffield Friend give my constituents that the Government recognise met the Minister to express concern that the loss of the issues caused by HMOs in small towns and villages, income to leisure centres in Sheffield was not being and what work is his Department doing, in conjunction refunded to the council because the centres are managed with local authorities, to ensure that such residents are by an arm’s length trust. I understand now from the located in more appropriate areas? council that the Government have recognised that the Eddie Hughes: I feel a huge degree of sympathy with extra expenditure given from the council to the leisure the constituents of Rossington and Conisbrough who trust to compensate for loss of income has been refunded may have suffered antisocial behaviour as a result of —at least significantly—by the Government. I thank HMOs in their area. I understand that my hon. Friend the Minister for that and for the help that he has given. is working assiduously on behalf of his constituents to Unfortunately, locally the Lib Dems have tried to claim tackle this. We have given local authorities robust powers that some of this money has gone from the council to to regulate the standards and management of existing the trust not to fund services in Sheffield, but to fund HMOs, including HMO licensing, penalties of up to leisure centres in Scarborough. Will the Minister reassure £30,000 for breaches of the lawand, for the worst offenders, me and residents in Sheffield that the money that he has banning orders. I urge my hon. Friend to press Doncaster given to Sheffield City Council has gone properly to Council to exercise those powers if appropriate. fund services in Sheffield and nowhere else, and indeed, as the chair of the trust has confirmed, that all the Topical Questions money given to the trust by Sheffield City Council is funding leisure centres in Sheffield and nowhere else? [914404] Dame Diana Johnson (Kingston upon Hull North) (Lab): If he will make a statement on his departmental Luke Hall: I thank the Chair of the Housing, responsibilities. Communities and Local Government Committee for that question. I was grateful to meet him and Julie Dore The Secretary of State for Housing, Communities and last year, and I know how important this matter is to Local Government (Robert Jenrick): One of the biggest the hon. Gentleman and his community in Sheffield. divides in our country has been between those who can We have provided councils with a range of support for afford their own home and those who cannot, and that covid pressures on local leisure services, including unring- is why I am pleased today to see the Government launch fenced grants, income compensation and the specific our new mortgage guarantee scheme as we strengthen national leisure recovery fund. In all cases, Sheffield will our commitment to build back better from this pandemic. comply with the funding conditions. My expectation Today’s 95% mortgages will help families and young would be that all that funding should be used locally to people to get on to the property ladder without the support local services in Sheffield and—he is absolutely excessive burden of a large deposit, helping to turn right—not be transferred to other areas. generation rent into generation buy. Houses in Multiple Occupation As we cautiously reopen the economy and return to a semblance of normality, we are ready to grasp the Nick Fletcher (Don Valley) (Con): What assessment economic lifeline that comes from getting out and his Department has made of the effect of homes of supporting local businesses, returning to pubs, restaurants multiple occupants on close-knit communities. [914310] and cafés and providing our local economies with the love and support that they need as we continue down The Parliamentary Under-Secretary of State for Housing, the recovery road map. As we seize this economic boost, Communities and Local Government (Eddie Hughes): we will ensure that prosperity is shared across all the Houses in multiple occupation are a valuable part of UK’s nations and regions, having announced the details the housing market and play an important role in of our landmark new levelling-up fund, the community delivering affordable accommodation, which is often ownership fund and the community renewal fund at vital in the communities that they serve. Most HMOs Budget. 649 Oral Answers 19 APRIL 2021 Oral Answers 650

Dame Diana Johnson [V]: Can the Secretary of State Steve Reed: The Campaign to Protect Rural England, explain why local people in Hull and the East Riding of the National Trust, the Town and Country Planning Yorkshire were not trusted to be asked about what they Association, the Royal Institute of British Architects, wanted devolution to look like locally and to help to the Royal Town Planning Institute and others have all shape those plans, rather than just being told by Whitehall condemned the Secretary of State’s planning reforms what they must have, with permanent changes to local for handing too much control to developers and blocking government in return for vague and, to date, unspecified communities from objecting to individual applications promises of regeneration? in areas zoned for growth or for renewal. Given their increased donations to the Conservative party, is he Robert Jenrick: I am not sure what the right hon. paying back developers by selling out communities? Lady is referring to there. When we approach the local government reorganisation, we do so only in circumstances Robert Jenrick: Once again, the hon. Gentleman where there is a good deal of local support. We have makes a low point. What we are doing is getting people taken forward a small number of proposals this year, on to the housing ladder. Once, the Labour party cared including in North Yorkshire. Those are then subject to about young people, people on low incomes and people a consultation exercise where we notify stakeholders on social housing waiting lists, but those days are long and take great care to take note of the opinions of the gone. The Conservative party is the party of home local population. It then comes to a Minister under the ownership. This is the party standing up for the millions Act for the ultimate decision. Were local government of people whose jobs depend on housing and construction. reorganisation or a devolution deal to be negotiated in This is the party supporting the brickies and the the right hon. Lady’s part of the world—I know that electricians—the people out there trying to earn a good there is some local interest—we would of course follow day’sliving. The hon. Gentleman needs to get his priorities all those legal requirements. straight and support people who are working hard, trying to get on the housing ladder and trying to get this country going again after the pandemic. [914408] Dr Kieran Mullan (Crewe and Nantwich) (Con): We are all making the most of our parks at the moment, but we have also seen a surge in littering. Will [914409] Peter Gibson (Darlington) (Con) [V]: Like many, the Minister join me in thanking groups including the I was glad to see our high streets begin to reopen last Crewe Clean Team, the Shavington Clean Team, week, with retail restarting and outdoor seating enabled Nantwich Litter Action and the Great British Spring for hospitality venues such as those on Coniscliffe Road Clean’s million mile mission campaign for playing their in Darlington, including the Hash bar,the ORB micropub part in battling this blight? Will he also remind councils and Number Twenty2. Does my right hon. Friend agree of the need to use their powers? InYourArea has found that, in order to support our high streets in the long that the number of fines issued in Cheshire East term and build on the success of the towns fund, we dropped last year for the third year in a row. need to reform planning restrictions to help revitalise our town centres?

Robert Jenrick: I am very happy to join my hon. Robert Jenrick: My hon. Friend is absolutely right. Friend in thanking all the volunteers he mentions for The changes being seen on our high streets up and their hard work. As lockdown lifts, we want the countryside down the country are seismic. They require fundamental to look its glorious best this spring and summer, and he reforms to our planning system and that is exactly what is absolutely right to say that councils should be using this Government are doing. What a contrast that is with the powers that are available to them. Littering not only what the Labour party is doing. As far as I can tell, its blights local communities but is ultimately a criminal only policy is to create a review led by somebody whom offence. We have raised the maximum penalty for littering we asked to do a review 11 years ago. I have a great deal to £150, and we have published guidance for local of respect for Mary Portas and I enjoy listening to her authorities on the use of their powers. views, but we have already taken forward most of her recommendations. We are taking action. The Labour Steve Reed (Croydon North) (Lab/Co-op): There has party is doing nothing and is letting the towns and cities been a 400% increase in donations to the Conservative across this country go into neglect. party from developers under the current Prime Minister. In the interests of transparency, and to allay growing [914405] Mr Virendra Sharma (Ealing, Southall) (Lab concerns about sleaze at the heart of government, will [V]): Last month, the Secretary of State appointed the Secretary of State publish notes of all the meetings two news members of his departmental board. Dame that he, his advisers or representatives of No. 10 have Alison Nimmo is a director at Berkeley Group—accused held with any of those developers about changing the of endangering the health of thousands in my constituency planning system and what they asked for? with the Southall gasworks development. How can I, or my constituents, have confidence in his Department’s Robert Jenrick: All ministerial engagements are already ability to regulate the Berkeley Group when, in the published through our regular official engagement words of the Cabinet Office, one of its own advisers notifications and all donations to political parties, whether leads that Department? that be the Labour party or the Conservative party, over the statutory amount are also published. Of course Robert Jenrick: I am disappointed to hear those planning decisions and the production of Government remarks from the hon. Gentleman. Casting aspersions policy have nothing to do with donations made to about the integrity of Dame Alison Nimmo is a new low political parties and there is a complete separation of for the Opposition. Alison is one of the most respected the two. women in business today. She led The Crown Estate 651 Oral Answers 19 APRIL 2021 Oral Answers 652 impeccably for many years, and now we are fortunate to continues to increase. How will the MHCLG strengthen benefit from her experience, commitment and public planning policy further to properly protect this irreplaceable service. I think it is completely wrong that the hon. habitat? Gentleman—no doubt handed a question by the Labour Whips that he does not know anything of— Robert Jenrick: I was pleased to read of the Woodland Trust’s recent campaign. My Department received over Mr Sharma indicated dissent. 10,000 postcards from supporters of the trust, which I have had the pleasure of looking over in recent months. Robert Jenrick: None the less, it is very poor that the We have proposed changes to the national planning hon. Gentleman would cast aspersions on a great public policy framework to set an expectation that all new servant, whom I am proud to have working with me at residential streets will be lined with trees. This builds on the Department. previous changes to the framework whereby we Mr Speaker: I do not think the Secretary of State strengthened protections for ancient woods and trees. needs to cast aspersions on where the hon. Gentleman My right hon. Friend the Environment Secretary will got his question from; I think it relates to his own shortly publish further details of our wider cross- constituency. Government commitment.

[914410] Andrew Percy (Brigg and Goole) (Con) [V]: [914418] Caroline Ansell (Eastbourne) (Con) [V]: The Councillor Anne Handley, other members of the town eviction ban instituted by my right hon. Friend last year deal board and I have submitted what we feel is a very and due to end in May has undoubtedly saved untold strong bid for Goole, which will include multimillion- misery.Now,covid-related rent arrears, built over successive pound regeneration of the town centre and a leisure lockdowns, are a very real danger. Will my right hon. centre, and bring gigabit-fast broadband to old Goole. Friend outline how measures will evolve to support We are keen to get on and get the projects delivered. individuals, families and landlords to sustain viable Can the Secretary of State provide any details of when tenancies as we move into recovery? Goole will know exactly how much it is getting from the Government in response to our bid? Robert Jenrick: My hon. Friend is a doughty campaigner for her constituency. If I heard her question correctly, Robert Jenrick: I was pleased to receive Goole’s town she asks about the support we provided for renters investment plan in January. It includes ambitious plans during the pandemic. We wanted to strike the right to diversify, to repurpose the town centre and to revitalise balance between helping tenants in need—that is why Goole’s economy. My officials are conducting their we increased the welfare provision, increased discretionary assessment in the usual way and I look forward to housing payments and increased the local housing allowance making an announcement in due course, which, if it is a to 30% of local market costs—and ensuring that landlords positive one, will build on the excellent news we had at have access to justice. As we transition out of the road the Budget of a freeport in the Humber, bringing jobs map to recovery, we will be providing some further and regeneration to the whole region. details on the next steps that we envisage to protect renters and ensure landlords get the best service and the [914406] Bambos Charalambous (Enfield, Southgate) help they need. (Lab): Homelessness is a big factor in ex-prisoners, particularly women, reoffending. In January, the Ministry [914411] Douglas Chapman (Dunfermline and West Fife) of Justice announced £20 million for five pilot schemes (SNP) [V]: In March, the Secretary of State told the of temporary accommodation; over three months on, House that he would reach out to the devolved Government there is still no evidence of how the service will account to help get more clarity on the organisation and delivery for the complex and specific needs of vulnerable women of the shared prosperity fund in Scotland. On this issue, leaving prison. How will the Department work with the when did he last meet with Scottish Ministers? What Ministry of Justice to ensure that support services for specific Scottish Government policy objectives will be women in impermanent accommodation on their release met by the shared prosperity fund? last more than 12 weeks? Robert Jenrick: I met representatives of the Scottish Robert Jenrick: The hon. Gentleman raises an extremely Government two weeks ago. important point, as 53% of people sleeping rough on our streets are ex-offenders, so a crucial component of [914420] Gareth Davies (Grantham and Stamford) (Con): our strategy to end rough sleeping must be ensuring I warmly welcome the recently announced package of that more offenders, whether male or female, leave prisons support for those arriving from Hong Kong on British to good-quality, secure accommodation, whether it is in national overseas status. Will my right hon. Friend the private rental sector or in social housing. I am confirm that all corners of the United Kingdom will working very closely with my right hon. and learned receive support to enable those who arrive to settle Friend the Lord Chancellor; we put in a bid together to where they wish and contribute to our economy through, the spending review, to which the hon. Gentleman for example, setting up a business? refers. I will be able to update him on those plans in due course. The Ministry of Justice will be an integral part Robert Jenrick: As champions of freedom and of our strategy. democracy,we are living up to our historical responsibilities to the people of Hong Kong. I have made it the mission [914416] Jason McCartney (Colne Valley) (Con) [V]: of my Department to ensure that all BNO status holders According to the Woodland Trust’s “State of the UK’s and their families have the very best start as soon as Woods and Trees” report, 1,225 ancient woods across they arrive here. That includes an additional £43 million the UK are under threat from development, and the package across all UK nations to provide targeted number of ancient woods being damaged by development support for new arrivals, including English language 653 Oral Answers 19 APRIL 2021 Oral Answers 654 tuition where necessary and help with housing costs for Mr Speaker: I am sorry to the Members who did not those who need it. We are creating 12 welcome hubs get in, but unfortunately the questions seem to have across the UK to give practical support for everything taken a long time to answer. I am now suspending the from applying for a school place and registering with a House for a few minutes to enable the necessary GP to setting up a business. This month, I met four arrangements for the next business. Hong Kong families who have recently arrived in the UK, and their profound sense of optimism about the future reaffirmed my belief that this programme will 3.31 pm enrich our country for generations to come. Sitting suspended. 655 19 APRIL 2021 Covid-19 Update 656

Covid-19 Update the greatest risk from this virus, and we have a duty of care to protect the most vulnerable, so we will consider all options to keep people safe. 3.35 pm As we deliver on stage 2 of the vaccination The Secretary of State for Health and Social Care programme—to vaccinate all remaining adults in the (Matt Hancock): With your permission, Mr Speaker, I UK—we must also turn our attention to what comes will make a statement on coronavirus. next. The biggest risk to our progress here in the UK is a new variant that the vaccine does not work as well This virus is diminished, but not defeated. Cases, against. We know from our response to other viruses, hospitalisations and deaths are back to the levels we saw such as flu, that we need updated vaccines to tackle in September. Throughout the crisis, we have protected mutated viruses. I can tell the House that as we complete the NHS, and there are now 2,186 people in hospital the programme for first and second jabs, we are ramping with covid across the UK—down 94% from the peak. up plans for a booster shot to make sure that our The average number of daily deaths is 25—down 98%. vaccines stay ahead of the virus. Wehave already procured Because of this brighter picture, we have been able to enough vaccine doses to begin the booster shots later take step 2 on our road map, and it is brilliant to see the this year. We will be working with our current vaccine high streets bustling with life once again and to hear a suppliers and new suppliers such as the CureVac partnership real-life crowd back in Wembley this weekend—especially to work out which vaccines will be effective as a booster if one is a Leicester City supporter. shot and to design new vaccines specifically targeted at Now, with fewer covid patients in hospital, the NHS the variants of concern, such as the variant first found is already turning to focus on the work to tackle the in South Africa. covid backlog. Step by step, we are returning this country Our goal is to ensure that the vaccine protects against towards normal life, and we are on track to meet the this dreadful disease whatever it throws at us, to keep us road map set out by the Prime Minister. Last week, we safe and protect our much cherished return to a normal hit our target to offer a vaccine to priority groups 1 to 9, way of life. The booster shot is important because it will and we are on track to offer a vaccine to all adults by help protect against new variants, but until then we the end of July. However, we must be vigilant, cautious must remain vigilant in case a new variant renders the and careful throughout, because we want this road to vaccines less protective. New variants can jeopardise the be a one-way street. progress that we have made here in the UK. The vaccine uptake has been astonishingly high. For all over-50s, uptake is 94%. Enthusiasm among those in Thanks to our early investment in covid genomic their late 40s was so high that they briefly overloaded sequencing, we have in this country one of the best the website when we opened up the booking system last systems to spot and supress new variants wherever we week. We can see the result of that uptake in the real find them through a combination of tough measures at world. The latest data show that 98% of people aged the border, our genomic sequencing capability and a between 70 and 84 now have covid-19 antibodies, which massive testing system. I would like to inform the are crucial to the body’s ability to fight the disease—98%. House of another new development in our testing system. That is the protection our vaccination programme is We have been piloting Pharmacy Collect, a system in spreading across the whole United Kingdom. Uptake which people can go and pick up tests for free from a among all ethnic minority groups continues to increase. pharmacy.I am delighted to tell the House that following Public Health England estimates that the vaccination the successful pilot, we have now rolled out Pharmacy programme prevented over 10,000 deaths up to the end Collect to over nine in 10 pharmacies, meaning that the of March, and it will protect many more as the roll-out universal testing offer, through which everyone can get continues. tested up to twice a week, is now freely and easily accessible to anyone who wants it. You just have to go We know that the first dose gives significant protection, to your local pharmacy, Mr Speaker. but the second dose is crucial to make people as safe as possible. On Friday and Saturday, we saw record numbers I would also like to update the House on our response of second doses—over 499,000 on each day—and I am to two new variants. One is the variant of concern first delighted to tell the House that, as of midnight last identified in South Africa. We have now detected a total night, we have now given second doses to over 10 million of 557 cases of this variant since it was first identified in people across the United Kingdom. Three quarters of December. We have seen a cluster of cases in south over-75s have now had both jabs, rising to four fifths of London, predominantly in the London Boroughs of over-80s. The vaccine is our way out of this pandemic, Wandsworth, Lambeth and Southwark, and identified and I am delighted that it is being taken up in such huge single cases over the last week in Barnet, Birmingham numbers. and Sandwell. Around two thirds of these cases are related to international travel and have been picked up We will do everything in our power to drive uptake, by the day two and day eight testing for international especially when it comes to protecting the most vulnerable. arrivals. However, we have seen a small amount of The vaccination rate among care home staff is currently community transmission, too. below 80% in over half of all local authority areas. Many care homes have called for vaccinations to be As soon as those cases were discovered, we acted required for those who work in such settings. We have quickly to put in place enhanced testing, tracing and therefore launched a consultation into whether we should sequencing in Lambeth and Wandsworth. Wehave brought require care home providers that care for older adults to in 19 mobile testing units in our largest surge-testing deploy only workers who have received their covid-19 operation to date, and we are distributing test kits to vaccination, unless they have a medical exemption. We housing estates, secondary schools, places of worship all know that older people living in care homes are at and workplaces. I would urge everyone who lives in 657 Covid-19 Update 19 APRIL 2021 Covid-19 Update 658

[Matt Hancock] us take each step safely. We must hold our nerve and follow the rules while the vaccinators do their vital these areas, whether they have symptoms or not, to get work. I commend this statement to the House. tested regularly and help us keep the variant under control. 3.46 pm Secondly, we have recently seen a new variant, first identified in India. We have now detected 103 cases of Jonathan Ashworth (Leicester South) (Lab/Co-op): I this variant, of which, again, the vast majority have thank the Secretary of State for advance sight of his links to international travel and have been picked up by statement. Let me start by saying that I have no doubt our testing at the border. We have been analysing samples that Downing Street was reluctant to cancel the Prime from those cases to see whether the variant has any Minister’s trip to India. As a Member of Parliament for concerning characteristics such as greater transmissibility Leicester, I am immensely proud of our deep ties and or resistance to treatments and vaccines, meaning that it bonds with India, but it was the correct thing to do in needs to be listed as a variant of concern. the circumstances, because we must always be vigilant and driven by the data, and variants are the biggest After studying the data and on a precautionary basis, threat to our progress. we have made the difficult but vital decision to add Tackling the variants demands that vaccination continues India to the red list. That means that anyone who is not to be rolled out successfully; I again pay tribute to all a UK or Irish resident or a British citizen cannot enter involved. Uptake levels are improving, as the Secretary the UK if they have been in India in the previous 10 of State said, but they are still too low in some minority days. UK and Irish residents and British citizens who ethnic communities. Will he provide extra resources to have been in India in the 10 days before their arrival will the local communities that need them to drive up need to complete hotel quarantine for 10 days from the vaccination rates? time of arrival. These rules will come into force at 4 am on Friday. India is a country I know well and love. We will look carefully at the details for vaccinating Between our two countries we have ties of friendship social care staff, but the Secretary of State will know and family. I understand the impact of this decision, that every attempt throughout history to force mandatory but I hope that the House will concur that we must act, vaccination has proved counterproductive. Why does he because we must protect the progress that we have made think this attempt will be any different? in this country in tackling this awful disease. Even with high levels of vaccination across the Another way that we have kept the country safe is population, there will be significant groups who are through maintaining a strong supply of personal protective unvaccinated—children, for example. The virus will be equipment. At a time of massive global demand, we endemic, as the chief medical officer has recently confirmed. secured supply lines, created a stockpile to see us through Papers from the Scientific Advisory Group for Emergencies the winter and created onshore manufacturing capacity model a third wave this summer. How do we avoid that? here in the UK. I am pleased to inform the House that May I suggest to the Secretary of State that one way since February last year, we have distributed more than that we could do that would be to pay higher sick pay 10 billion items of PPE to protect people working in the and expand its scope? Some of the poorest and the NHS, social care and public services right across the lowest paid will continue to suffer and be left exposed to country. Delivering so much PPE at such speed and the virus unless we fix that. We should not just glibly scale has been an extraordinary effort that has not only accept these health inequities; it could mean that urban helped us through the crisis, but provided a lasting areas are left behind, remaining under restrictions with legacy for the future. higher infection rates. For the millionth time of asking, will he please fix sick pay? Let me make two further points. I would like to inform the House that today we have appointed Professor Let me turn to India, which has the most cases in the Lucy Chappell as the chief scientific adviser to the world at the moment—more than 250,000 confirmed Department of Health and Social Care. Professor Chappell cases a day, I think, and going up. That is one of the has a stellar track record in science and research, including world’s steepest surges, right now. Uploads of Indian leading on the work on vaccinations in pregnancy. She sequencing to the global open access database show has worked closely with our National Institute for Health that the new double mutant B1617 variant has become Research, for which she will now be responsible. I am dominant in India in the past few weeks, out-competing sure that the whole House will join me in congratulating our home-grown Kent strain. As of today, COVID-19 Professor Chappell on her appointment. Genomics UK reports 135 cases of B1617 in the UK and 115 in the last 28 days. It has been the fastest Finally, last month we laid before the House our growing variant in the UK in the last three weeks. Most one-year status report on the Coronavirus Act 2020. I of those variants are imported, so we welcome the am sorry to say that the report contains an error relating Secretary of State’s announcement about adding India to section 24 of the Act, which concerns Home Office to the red list, although I hope that there will be support measures on data held for national security purposes. and help in place for constituents such as mine who are Full details are set out in a written ministerial statement legally in India and want to return. being laid today.The error does not change the substance We also now have cases in the community that are not of the report, as we will be laying the regulations to linked to international travel. I understand that the expire section 24 alongside other provisions as soon as Secretary of State is carrying out analysis of those samples, parliamentary time allows. but surely we now need to start surge testing and In summary, we are moving down our road to recovery, designate B1617 as a variant of concern. How long will vaccinations are rising and the pressure on our NHS is it take before we have more definitive evidence that it is falling. As we enjoy the freedoms that are returning, let more infectious or immune-escape? We already know 659 Covid-19 Update 19 APRIL 2021 Covid-19 Update 660 that this variant carries mutations of concern in other whether to take up offers of pay flexibilities, and Ministers variants. If we have learnt anything in the past 12 are not involved in decision taking in NHS Shared months, it is that this virus ruthlessly exploits ambiguity Business Services. When it comes to the other matter and that we must act fast when the situation is controllable, that the right hon. Gentleman raised in terms of my because in a few weeks’ time, it might not be. declarations—which are known to him and to everybody The Secretary of State did not mention vaccine passports else only because I have followed the rules in letter and in his statement. Does he anticipate that vaccine passports spirit and made that declaration—I agree with the Leader will soon be needed for football games or concerts? As of the Opposition, rather than him, who said that he he said, Leicester City have made it to the FA cup final, was not suggesting that any rules were broken. and they are a team challenging for Europe on merit I turn to the covid-related matters. I welcome the who always put fans first. Many who are anticipating right hon. Gentleman’s support of the decision to put going to a football match later this year will be wondering India on the red list, which is not one that we take this: if they need a vaccine passport, will it be based on lightly. He is right to ask about surge testing, to make one dose or two? He may have seen data from Israel or sure that we limit the spread as much as possible of the the Centres for Disease Control and Prevention in the variant first found in India, and I can confirm that we US which suggests that people are still infectious after will be doing that. one vaccine dose, so can he update us on that front? I welcome the right hon. Gentleman’s support for Finally, I turn to the latest Sunday Times revelations vaccinations, which he has demonstrated at all turns. It about the lobbying by Greensill and Cameron of the is partly because of the unanimity across the House Secretary of State and the very highest NHS officials among all parties on the importance of vaccination that about the payday financing scheme. This was not an act we have this absolutely spectacular level of uptake. He of altruism to staff in a pandemic but an investment says that every attempt at mandatory vaccination is plan to package up loans to sell to investors, with the counterproductive. I gently point him to the fact that former Prime Minister, not nurses, in line for a payday surgeons needs to have a vaccine against hepatitis B. windfall. Cameron wrote in one of his emails: Vaccination that is tied to work in fact has a longstanding “As you can imagine, Matt Hancock” precedent in this country. is The right hon. Gentleman asks many questions about “extremely positive about this innovative offer.” certification, but he knows that a review of it is under way at the moment, being led by my right hon. Friend They sought a partnership with NHS Shared Business the Chancellor of the Duchy of Lancaster, who I am Services, which is jointly owned by the Department. sure will have heard his representations and questions, They sought access to the personal and financial data of and will be able to address them in the review. thousands of NHS staff. They wanted their electronic Finally, the right hon. Gentleman says that we must records for their own commercial gain. Their plan was avoid a third wave by sticking to the rules, and he is to expand into the social care sector, where staff are on right. We should avoid a third wave if we can, and the low pay or zero-hours contracts, and because the market way that we can do it is by sticking to the rules and is fragmented and made up of private providers, the getting the jab. That is why the vaccination programme supposed non-profit offer would presumably not apply. is so important. It is why the road map is cautious and, There were meetings and communications with a we hope, irreversible. That is the plan, and with the 10 parade of the most senior NHS officials, including million second vaccines and the progress in the vaccination former Health Minister Lord Prior and Baroness Harding. programme that we have seen in the last few days, weeks At least 30 trusts may have spent valuable time considering and months, I am very pleased to say that we are on the adoption of this untested payday lending scheme, track. and it is all because the Secretary of State succumbed to the lobbying of his old boss Cameron. So again I ask Jeremy Hunt (South West Surrey) (Con): It is a him, will he publish all the text messages, all the emails pleasure to see you face to face, Mr Speaker, after some and all the correspondence with David Cameron? Can time. he tell us how many NHS leaders and officials Cameron The Health Secretary is absolutely right to put India and Greensill lobbied and met? How many NHS trusts on the red list and to explore mandatory vaccination of in total were approached about this expensive, unneeded certain frontline workers, however difficult and sensitive scheme? that decision may be, but he will know that in the last While we are on the issue of NHS Shared Business week NHS waiting lists have risen to nearly 5 million Services, can the Secretary of State also tell us why he people, which is nearly one in 12 of the population of never declared his own links to Topwood, the confidential England—the true cost of the pandemic. It is equally document shredding firm which was still on Friday true that we have had capacity problems in the NHS for night, until it was curiously taken down, using the NHS some time. That is partly why we have opened five new logo on its website to promote itself? With so many medical schools. accusations and allegations of sleaze and cronyism, Does my right hon. Friend agree with the letter that these are basic questions that deserve clear answers. he recently received from the three main health think-tanks, NHS staff deserve a pay rise and support, not these which says that Health Education England should be payday loan apps forced on the NHS by speculators given a statutory duty to publish regular, transparent, trying to make money out of the pandemic. How can he independent, objective workforce projections, so that we possibly defend it? can ensure that we really are training enough doctors and nurses? That approach is strongly supported by the Matt Hancock: Let me address the final point first. Health and Social Care Committee and the Academy of As I said to the House last week, my approach was and Medical Royal Colleges. I hope that he will support is that local NHS employers are best placed to decide it too. 661 Covid-19 Update 19 APRIL 2021 Covid-19 Update 662

Matt Hancock: We will certainly consider that. I have we have had surge testing because we have had a relatively seen the letter. We have discussed the question. I would small number of cases of the South African variant add that we have a record number of doctors in this country, discovered. Literally thousands of people have been in part thanks to the work that my right hon. Friend put tested, but one of the most frustrating things is that in place when he was in my shoes. Wehave a record number these tests then have to be sent off and there appears of nurses—more than 300,000 for the first time in the to be an extremely long turnaround time before we get history of the NHS. We do need, of course, to look to the results. What can the Secretary of State do to speed the future and ensure that we are preparing for it, as the up getting the results of these tests? Otherwise, people letter suggests. Wealso need to ensure that we keep driving will not be aware of whether they have the variant or the project of delivering 50,000 more nurses in the NHS whether they should take particular actions. over this Parliament. I look forward to giving him a more substantive response, but I hear his encouragement Matt Hancock: My hon. Friend is absolutely right to to ensure that we take steps in that direction. raise this important issue. I know that this is an important announcement for him and his constituents, representing Dr Philippa Whitford (Central Ayrshire) (SNP) [V]: as he does a significant number of constituents from the While the vaccine programmes across the UK are going Indian diaspora. We have managed to reduce somewhat well, vaccine-resistant variants remain a major threat. I the turnaround time for the sequencing of positive tests, welcome that the Prime Minister has now called off his but we are also introducing a new type of test that can visit to India due to its devastating surge in covid. Cases detect not just whether someone is positive but whether of the B1617 Indian variant in the UK are still very low, they have one of the known variants without having to but they have been doubling every week, despite lockdown, go through a full sequence. That can give us a snapshot suggesting that like the Kent variant it is much more much, much faster—within a matter of hours—of whether infectious than the original virus. I therefore welcome a positive result has one of the known variants, before India’s being added to the red list to reduce further sending it off to sequencing so that we can see any new importation. variant that we do not know about. We are introducing Will the Secretary of State not now consider extending that technology. It is starting in the Lighthouse lab hotel quarantine to all arrivals, as travellers from red list testing facility in Glasgow and we are rolling it out countries can currently avoid it by coming via a third across the system. It is an important tool to make sure country? We have already seen increased numbers of that we can get the turnaround time of spotting the the South African and Brazilian variants in European variants down faster. countries, from where travellers are not placed in hotel quarantine, and more infectious or vaccine-resistant Mr Alistair Carmichael (Orkney and Shetland) (LD): variants could emerge in any country. We simply would It is quite astonishing that the Secretary of State’s not know about it until it was too late. statement had absolutely nothing to say about the The pandemic is still accelerating, and as well as Government’s plans for vaccine ID cards—something causing appalling suffering and death in other countries that has apparently been trialled. Only last week, the it clearly poses a threat to the people of the UK. Does Equality and Human Rights Commission told us that the Secretary of State not recognise the need for a more vaccine ID cards, and possibly even the mandatory co-operative, global response to covid if we are to bring vaccination scheme that he is trumpeting today, could the pandemic under control and allow a safer return to be unlawful, yet this House has had no opportunity to international travel and commerce? express a view on them at all. When are the Government going to come clean and share their plans for vaccine Matt Hancock: I certainly agree with the hon. Lady ID cards with this House? on her final point, on international collaboration and working together,which, along with the Foreign Secretary Matt Hancock: I refer the right hon. Gentleman to and the Prime Minister, we are working incredibly hard my previous answer, which is that the Chancellor of the on. We are using the UK’s presidency of the G7 and the Duchy of Lancaster is leading a review on this area that enthusiasm of the new Administration in Washington will report in due course. to try to drive international collaboration, in particular collaboration among like-minded democracies in favour Mrs Pauline Latham (Mid Derbyshire) (Con): I of an open and transparent, science-led response to congratulate my right hon. Friend on the phenomenal pandemics. I hope that she will concur with that approach. roll-out of the vaccine programme, which has been On the new variants of concern, it is important when astonishing. I, too, have had my second vaccine, which looking at the numbers to distinguish between community makes me feel much happier. spread and spread connected to travel. By taking the We have been told regularly that we are following action that I have just announced to put India on the the data, not the dates, but sadly it seems to be the other red list, we are restricting yet further the likelihood of way round—that we are following the dates, not the data. incursion from India of somebody with a new variant. We know that in Derbyshire, for instance, there are huge However, the majority of the cases that we have seen swathes of villages and towns with no covid whatsoever, already in this country have been picked up by the and that is repeated over all sorts of areas of the country. testing that we have in place now for every single Last week I managed to go out on several nights because passenger entering this country. That is a sign of the I could—which was great, and the atmosphere was system working, and it is now being strengthened. fantastic—but we need to start getting businesses back to normal. Weneed to get hospitality businesses operating, Bob Blackman (Harrow East) (Con) [V]: I am delighted fully functioning, and using their indoor spaces. Some to say that I have had my second dose of the Oxford of the outdoor spaces I have been in are quite enclosed, AstraZeneca vaccine and, so far, no ill effects. In Harrow, so can we not go indoors as well now? 663 Covid-19 Update 19 APRIL 2021 Covid-19 Update 664

Matt Hancock: I am delighted that my hon. Friend, those in care homes are at the highest risk of all, but I along with my hon. Friend the Member for Harrow East would absolutely urge anybody who is a carer, whether (Bob Blackman), is among the 10 million who have had they work in social care or are an unpaid carer, who has their second jab; that is really good to see. The hope and not already got the jab to please do get it, to protect not cheer that the vaccine brings links to the second part of just them, but those to whom they have a duty of care. her question, about the speed of the road map. The reason for the timing set out in the road map is that we Debbie Abrahams (Oldham East and Saddleworth) want to see the impact of one step before we take the (Lab) [V]: As the UK rolls back lockdown restrictions, next step. We are but one week on since we took step 2. the global death toll has reached 3 million, and the That is a significant reopening, as we have no doubt all World Health Organisation is warning that the world is seen in our constituencies and around the country. We approaching the highest rate of infection so far. With want to see the impact of that on the data before taking three new variants in three continents, all these variants the next step, so we can have confidence that this is an now in the UK and the reduced efficacy of the different irreversible path—a one-way street, as I put it. That is covid vaccinations against these variants, it is clear that the reason for the way that we have set this out, and that the UK’s success in fully emerging from this pandemic is how we are planning to proceed. is co-dependent on how well the rest of the world is doing. I asked the Health Secretary about global Jim Shannon (Strangford) (DUP): Along with others, co-ordination of surveillance of new variants back in I welcome the roll-out of the vaccine, as that is very February, and the World Health Organisation is now important, but few would deny that it is now time to consulting on this, so can he update the House on our look at waiting lists, and I shall put one on record. What response to this consultation? steps have been taken to get routine operations such as Matt Hancock: This is an incredibly important subject. hip replacements and tonsil operations back on the I agree with the substance of what the hon. Lady asked table to address the eye-wateringly long waiting lists? in the question, and she is quite right to raise this. We That is vastly concerning, especially when we hear, for have put in place the new variant assessment platform, instance, of children who were on waiting lists for tonsils allowing any country around the world to use our and adenoids to be removed last year; due to dips in enormous genomic sequencing capability if they want oxygen levels they were considered urgent at that time, to sequence positive cases to discover what is happening but that now appears to be okay. That is very worrying. in their countries, but our borders testing system, in which all positives are sequenced, also means that we in Matt Hancock: The hon. Gentleman raises a very fact get a survey from around the world through those important point. The waiting list issue is very significant; who have travelled to the UK, and we can relay that it has built up because of covid, but we must tackle it data back to individual countries so that they understand and we are absolutely determined to do so. He, like me, that better. Of course, it would be far better if something will have seen the figures last week on the increase in the like the new variant assessment platform was run on a waiting list in England, but the waiting list has increased multilateral basis globally—for instance, by an organisation in all parts of the UK. We have put in extra funding, an such as the WHO. We are engaged with the WHO on extra £7 billion in total for next year in England and, making sure that it is available, but my view was that we through the Barnett consequentials, to the three devolved needed to get on and offer this to everybody and then Administrations. That is there to make sure we can get build a network of labs around the world that can make through this backlog while also of course dealing with such an offer so that sequencing can be available in covid and the infection prevention and control needed every country, because it is currently far too patchy. to tackle covid. This is a vital task, the hon. Gentleman is right to raise it, and we are working very hard to Harriett Baldwin (West Worcestershire) (Con) [V]: address it. May I add my congratulations to the team that has managed to give two vaccinations to over 10 million Damian Green (Ashford) (Con): My right hon. Friend people? That is fantastic news. Given the risk of variants, is rightly proud of the stunning performance of the I welcome the difficult decision that the Secretary of State vaccination teams across the country, and of course I has made to add India to the red list. What research he pay tribute to those who have been engaged in that in has commissioned on those, such as my hon. Friends and around Ashford. I am sure he agrees that it is the Members for Mid Derbyshire (Mrs Latham) and for particularly important for care workers to be vaccinated, Harrow East (Bob Blackman), who have had two and not just care home workers but domiciliary care vaccinations, and what possibility there might be that workers who go from house to house providing essential people who have had two vaccinations are able to go care. What is he doing to encourage take-up among care about their daily lives with fewer restrictions than those workers, to get as close to 100% as possible? who have not? Matt Hancock: It is incredibly important that all care Matt Hancock: The latter question is really a question workers take up the jab if they possibly can, unless they tied to the certification work. We have not hitherto, as have a vital medical reason not to, because the jab of my hon. Friend well knows, said that the rules for people course not only protects us, but protects people we are who are vaccinated should be different from those for close to, and care workers are close to people who are people who are non-vaccinated, but we know that some vulnerable—that is in the nature of the job. That is why other countries are proposing to say that that will be I think it is right to consider saying that people can be case for international travel, so we do need to have a deployed in a care home only if they have had the jab, way of showing or proving it. However, we have not yet and we are looking into that. We have not said that for come to any conclusions about how we should do that those who work in domiciliary care—caring for people and whether we should do that domestically. That is a in their own homes, rather than in a care home—because matter for the Chancellor of the Duchy of Lancaster. 665 Covid-19 Update 19 APRIL 2021 Covid-19 Update 666

[Matt Hancock] have both at the same time, which would obviously be logistically easier. Those matters need to be resolved. On measuring how effective a second dose is, we have The reason for the announcement today is that we want tests in the field right now to follow a sample of people to be absolutely clear that a booster shot programme who have had both tests, having them tested regularly— will happen this autumn—later this year—and we are weekly, typically—to check whether they test positive, determined to make it as efficacious as possible, because, and therefore testing the effectiveness of both of the ultimately, dealing with these new variants will require vaccines in the field. So far, we have published the results booster shots, especially for the most vulnerable. of that after one jab. Very early results are coming through after two jabs, and in the next couple of weeks we will Imran Hussain (Bradford East) (Lab) [V]: Over the have some really rich data on that, I should hope, because last week, several serious concerns have been raised we have now seen a significant number of second jabs— with me about the managed quarantine hotel system, 10 million as of midnight last night. with harrowing stories of families with young children stranded in airports because they cannot contact the Feryal Clark (Enfield North) (Lab) [V]: The vaccination booking provider to arrange accommodation, and others roll-out for the majority of the country has been nothing in quarantine hotels left without food for days on end. short of amazing, and I would like to thank the local Will the Health Secretary tell me just what he is doing NHS providers in Enfield and across the country for to urgently resolve the frankly shambolic situation with their herculean efforts. Sadly,for some parts of the country, the booking system, and what he is doing to end the including many parts of my constituency of Enfield North, inhumane treatment of quarantine hotel guests by ensuring a postcode lottery appears to be emerging, whereby that food is not only provided on time but meets the vaccination rates are stubbornly low and falling behind faith and dietary requirements of travellers, particularly the rest of the country. What is being done to combat those fasting during Ramadan? this, and what additional support will the Department Matt Hancock: I am afraid I do not agree with the be providing to areas with consistently low vaccine rates? prognosis. We are, of course, very careful to ensure that Matt Hancock: We have a huge amount of work on the vast majority of people who go through the managed to tackle exactly the phenomenon that the hon. Lady quarantine service—hotel quarantine—have a good describes. I thank people in Enfield who have been experience. Of course, they have to be in a hotel when working on the vaccination programme, because they often they would rather not be, so it is an unusual have done incredibly well, but there is much more to do. situation, but it has been put in place with great sensitivity We have to ensure that we make the vaccine more and I am very grateful to all those who have worked so accessible—that it is easy to access—and that people hard on it, not just in my Department but among the have reassurances if they are hesitant. The Minister for hotels, the airports and the carriers. However, the hon. Covid Vaccine Deployment, my hon. Friend the Member Gentleman clearly has some significant individual concerns, for Stratford-on-Avon (Nadhim Zahawi), is leading on and I would be very happy to ensure that the Minister these efforts, including with innovative approaches that for Public Health, my hon. Friend the Member for Bury we are currently trialling, such as allowing multigenerational St Edmunds (Jo Churchill), meets him to hear those households to be vaccinated at once, to see how we can individual concerns and to try to make sure that they drive up uptake in those groups in which we have not are resolved—in particular the point about ensuring seen such high uptake. As I said, overall uptake among that food provision is appropriate for those fasting at over-50s is 94%, which is far higher than my best Ramadan, which of course is very important. possible hopes just a couple of months ago, but if we Julian Sturdy (York Outer) (Con) [V]: Given that the can reduce that final 6%, for every percentage point that seven-day rolling average of covid deaths is now 24.9, comes off it, the safer we all get. with just 10 yesterday, and that in normal times the daily cancer death toll averages over 450—a figure sadly Stephen Hammond (Wimbledon) (Con) [V]: I refer likely to rise due to delayed treatment and the disruption the House to my entry in the Register of Members’ of the pandemic—what are the Government doing to Financial Interests. I thank my right hon. Friend for his catch up with the cancer screening and operations backlog statement and for the extraordinary roll-out, which is and get the health service back towards other medical still continuing, and I thank all the health workers conditions so that the death toll from non-covid cases across Wimbledon and south-west London. does not become the worst legacy of this emergency? In his statement, my right hon. Friend was right to identify the risk of new variants and to mention genomic Matt Hancock: My hon. Friend is quite right to ask sequencing and boosters. Will he confirm that there will about that; it is an incredibly important topic. I am pleased be availability of rapid testing, with tests that provide to say that, over the second peak this winter, the amount results quickly and identify new variants, and that the of cancer work—surgery and treatment—continued much booster programme will be rolled out on a similar basis closer to normal. He is quite right that, in the first peak, to the vaccine programme, which has been so successfully it was reduced significantly. We are very focused on the rolled out? backlog that has been created by the pandemic, but I am pleased that the death toll from covid is coming Matt Hancock: Yes, absolutely. The booster shot down. In fact, the very latest data, published today, shows programme will be rolled out in a similar way to the first that the number of deaths recorded with covid after two jabs. There will of course be some differences, not 28 days is four. Those numbers tend to be lower at the least because of the interaction of an autumn covid weekend, and we mourn each of them, but that nevertheless vaccination programme with the autumn-winter flu reinforces his point that it is vital that we get on with vaccination programme. We still need the final clinical getting through the backlog that has been created by the results on their interaction to see whether someone can pandemic. 667 Covid-19 Update 19 APRIL 2021 Covid-19 Update 668

Dave Doogan (Angus) (SNP): I want to challenge the no doubt about that. If there is an update to the clinical Secretary of State about the inexplicable delay in adding advice on prioritisation and whether those with ME India to the red list of countries. I welcome the need to be in category 6 or category 4, I will update the announcement that it will now be included on that list, hon. Lady. Thus far, however, we are following the and I hope very sincerely that this will not be another clinical advice and that is the approach we have taken stable door moment in the Government’s response to overall. the coronavirus pandemic. The Secretary of State knows that the SNP has committed to increase NHS funding Caroline Nokes (Romsey and Southampton North) in Scotland by 20%. Will he commit to a similar uplift (Con) [V]: I was really pleased to hear my right hon. for NHS England in order to help drive the recovery of Friend reference the appointment of Professor Lucy the NHS after coronavirus and truly build back better? Chappell and the work on vaccines in pregnancy. Will he please update the House on what is being done to Matt Hancock: I recently saw the figures for the reassure young women that there is no plausible way proposed increase for NHS spending in Scotland. The that vaccination can affect fertility? Will he also let us proposed increase is lower than in England; it is lower know how quickly he expects pregnant women, who we than the money that has been passed over to the Scottish know might be immunosuppressed, to be called forward Government from UK taxpayers to spend on the NHS for their vaccination, or will they have to wait for the in Scotland. My question is: what has happened to the age band that is appropriate? money for the NHS in Scotland that was given to the SNP Government in Holyrood? They have not spent it Matt Hancock: I was absolutely delighted that on on the NHS. We know that they have many wasteful Friday, following the work of Professor Chappell and projects. Thankfully, we work very closely together on others, we were able to make the announcement with important things such as the vaccination effort, which respect to the vaccination for those who are pregnant. has been a true UK success story, but this question of The prioritisation remains as with people who are not the missing millions for the NHS in Scotland is one that pregnant, so it will essentially be by age unless there is we need answers to from the Government in Holyrood. another reason that one might be in a higher group, for instance if you are a social care worker. It does not Robin Millar (Aberconwy) (Con) [V]: I thank my affect the prioritisation. Hitherto the advice had been right hon. Friend for the foresight and the early investment understandably cautious, because clinical trials are not decisions made on vaccines 12 months ago. Here in done on people who are pregnant. However, there is Aberconwy, the result is falling infection rates and a now very clear advice for those who are pregnant: when tangible sense of hope, albeit one coloured with frustration it is your turn, come forward and take advice. Have a as we watch businesses in England open ahead of us. discussion about your individual circumstances with We have the second-oldest demographic in Wales, and it your clinician. They can then, subject to that individual is right that their environment is protected to ensure circumstance, which is of course appropriate in pregnancy, their wellbeing. That is properly a priority. However, be vaccinated. I am grateful to my right hon. Friend for can my right hon. Friend give the elderly and the raising this issue. It was a really important announcement vulnerable, and their loved ones, assurances that they on Friday. Mr Speaker, I probably should have included will one day be able to leave their accommodation to it in my original statement, but unfortunately it was visit family, resume employment and otherwise pick up already rather long. I am absolutely delighted that their old routines? Professor Chappell and the whole team—it was a big team effort—were able to ensure we made this progress.

Matt Hancock: Yes, of course. We want to get back Lilian Greenwood (Nottingham South) (Lab) [V]: to normal for care home residents—of course we do. [Inaudible.] We are taking steps in the right direction in England. I cannot comment on the situation in Wales; that is Mr Speaker: I think we might have to move on. rightly a responsibility for the Cardiff Administration. As we progress down the road map, I hope we will be Sir Edward Leigh (Gainsborough) (Con): Scott Morrison, able to make further progress. the Australian Prime Minister, has just announced that he has no plans to open up his borders. Of course, he is Kerry McCarthy (Bristol East) (Lab) [V]: At today’s absolutely right. I am speaking—I apologise—completely meeting of the all-party group on myalgic encephalomyelitis, with the benefit of hindsight, but I am sure everybody we discussed the overlaps between ME and chronic would agree that if we had done what Australia had fatigue syndrome and long covid. Obviously, there are done, we could have opened up our economy months some striking similarities. What assessment has the ago. It has had only 910 deaths and only 29,000 infections. Secretary of State made of the impact that contracting What I want to hear from the Secretary of State is that covid can have on people with ME/CFS? Given their he will resist the very powerful lobbyists from the travel vulnerability, will he now do a bit of a U-turn and make and airline industries and from airports, and that he will them a priority for vaccination? be absolutely determined to follow the evidence, not allow unnecessary travel—we do not know what variants Matt Hancock: Of course, the prioritisation for are out there in the world—and be really tough with the vaccination when it comes to those who are vulnerable red list. is clinically determined. I know that this question has been looked into. We are also looking into work on the Matt Hancock: That is the approach we have taken so links between ME and long covid, which share some far since the introduction of the red list and the hotel similarities but are different conditions. It is an area quarantine. Through the testing of every single passenger that needs further work and further research—there is who comes here, we essentially now have a survey of 669 Covid-19 Update 19 APRIL 2021 Covid-19 Update 670

[Matt Hancock] we know it. That is the overall attitude and approach. My right hon. Friend mentions that four reviews were the world. We can see where the new variants are from set out as part of the road map and they will, of course, the people coming through the testing regime. I am have to conclude. But that is my hope because, as he grateful for my right hon. Friend’s wise counsel. knows, I very firmly believe that this vaccine is breaking that link. We can see it in the data every single day and Yvette Cooper (Normanton, Pontefract and Castleford) in the way that the country is responding. It is uplifting. (Lab): The Health Secretary is clearly right to put India on the red list and to safeguard the vaccine programme Barbara Keeley (Worsley and Eccles South) (Lab) [V]: from new variants. However, the India variant has been I add my praise to the team rolling out vaccines in under investigation for three weeks, and other neighbouring Salford, led by Salford Primary Care Together, which is countries with lower and slower covid rates were put on doing a remarkable job. The current guidance on visits the red list 10 days ago. This week, Hong Kong identified out from care homes says that any resident who makes a 47 covid cases on a single Delhi flight. Before Friday, we visit outside a care home must self-isolate for 14 days on still had 16 direct flights from India and many more their return, even if all they have done on their visit is to indirect ones. Can he explain, contrary to his previous sit outside with a family member. This is longer than answer, why India was not put on a red list 10 days ago, people have to quarantine when returning from red list when other countries were? Can he publish the Joint countries, including India, which has the most cases in Biosecurity Centre’s assessments, recommendations and the world. This is clearly disproportionate, so will the criteria and also publish a full genomic analysis of Secretary of State set out what he is doing to enable which countries all the new variant cases are arriving regular testing to be used to cut this self-isolation from, so that we can see where the border gaps still are requirement for care home residents? in the measures that he has in place and make sure that Matt Hancock: The hon. Lady raises an important we do not keep having these delays? point on a subject that she knows extremely well. If I Matt Hancock: We keep all these decisions for each may, could I give her the respect of considering the country under constant review. The challenge of the question and writing to her with a full reply, because it genomic data is that some countries have excellent is a very important question and I want to make sure coverage of genomic sequencing and others do not. that we get it right? Maybe we can then have a Actually, that is not particularly correlated with their correspondence to make sure that we get to the right income. For instance, South Africa, a middle-income result. country, has excellent genomic sequencing. We take the Dr Liam Fox (North Somerset) (Con): The UK’s decisions very rapidly when we need to. We keep all this vaccinationprogrammehasbeenaninternationaltrailblazer, under constant review and I am glad that she welcomes the strategic aim of preventing the NHS from being the decision to put India on the red list today. overwhelmed has clearly been met, and I am delighted that my right hon. Friend, who has done a tremendous Mr Mark Harper (Forest of Dean) (Con): May I add job as Secretary of State throughout the pandemic, my congratulations to all those who have been involved appears determined not to allow a shift in the goalposts in the fantastic vaccine roll-out that the Secretary of and to follow the cautious pathway out of lockdown. State set out in his statement? It is obviously breaking But can we please, and can he please, ensure that we the link between cases, hospitalisations and deaths, as have a rational and balanced discussion about viral we are seeing dramatically from the figures.Many members variants? Viruses always mutate and there will be an of the public and businesses, having looked at the road unavoidable level of risk that we will have to get used to map, which he also mentioned, will have seen that as of post pandemic, unless we are to become a perpetually 21 June, the Government and the public are expecting frightened, introspective nation—the opposite of global the country to be broadly back to normal, but, of Britain? course, there is the small print about the reviews on social distancing. Will he confirm to the House and the Matt Hancock: My right hon. Friend has deep experience public that as of 21 June, he expects us to be broadly in this area, and I am very grateful for what he said—that back to normal, without social distancing? If that is not was very kind. He is absolutely right about the fact that the case, will he set out what the evidence base will be viruses always mutate, and we can rise to that—we can for that decision? respond to that—as we do with flu. This is another area in which the parallel with how we manage flu as a Matt Hancock: Any decisions like that would be based country is the right one, because the flu virus mutates on the evidence, and we have far more evidence now most years. We work out, observing the Australian than we did when making these decisions previously. I winter, what is the most likely variant we will get in our fully expect that there will be some areas of life, without winter, we adjust the vaccines to that variant and then the need for laws in this place, where people will behave we roll them out over the autumn. That sort of programme more cautiously than previously. The wearing of masks is likely to be needed in this country for some time to is one—before this pandemic, wearing a mask in public come. We will start later this year with the booster in this country was extremely unusual. I imagine that shots, and we will make progress after that according to some people will wear masks, and choose to wear the evidence as we see it. I hope he was not trying to masks, for some time to come. Our goal is to manage make a point of something; I always try to be rational, this virus and the pandemic that it has caused more like but it is sometimes hard. flu—in fact, like flu. Flu comes through each year. We do take action to deal with flu—we take action on Lilian Greenwood (Nottingham South) (Lab) [V]: I nosocomial infection in hospitals and through the flu hope I do not still sound like a robot, Madam Deputy vaccine programme—but we do not stop normal life as Speaker. The gradual easing of restrictions in recent 671 Covid-19 Update 19 APRIL 2021 Covid-19 Update 672 weeks has come as a great relief and is very welcome, I am always happy to meet him, and with the recent but we know that the pandemic has caused a colossal announcement on the UK Health Security Agency, I backlog of unmet healthcare need, including dental think now is a good time to have a discussion on this care. Many people have been unable to access any topic. treatment for dental problems, and check-ups have simply not been happening for more than a year now. Will the Munira Wilson (Twickenham) (LD) [V]: I have been Secretary of State set out the steps he is taking to enable contacted by several constituents who ordered very dentists to begin to clear that backlog of treatment? expensive tests from companies recommended on the When there is already huge inequality in oral health and Government’s website as part of the test to release so many people are facing financial hardship, what is he scheme. Some never received their tests, some never doing to ensure that people do not miss out on vital received their results, and some received their tests late preventive check-ups because they cannot afford them? and feared being in breach of the rules. They have had to battle for refunds, and we have heard of others Matt Hancock: The hon. Lady is right to raise this having to leave home to get their tests, which undermines issue. Wehave maintained access to urgent dental treatment the whole scheme.What vetting, if any,does the Department throughout the pandemic. We put in place dental centres undertake before listing these companies, especially as to be able to do that in the first peak and dentistry was demand will no doubt increase, given that the Government not closed in the second peak—indeed, we have put in are so keen to open up international travel again? place an incentive to get dental practices really motoring. Of course there is infection prevention and control that Matt Hancock: The hon. Lady is quite right to raise needs to be updated as the prevalence of the disease this. We have kicked two suppliers off the list of approved comes down, but making sure that we have those check-ups suppliers for testing for international travel, and we are is incredibly important, because it is one of the most quite prepared to do more if suppliers do not meet the important preventive measures there is, especially for service obligations that they sign up to. If she wants to children. Given her interest in and enthusiasm for this send in the individual evidence, we will absolutely look subject, I hope she will support the proposals for much at it. We keep this constantly and vigilantly under more widespread fluoridation of water, which we are review. The companies that provide tests must meet proposing to put into legislation when parliamentary their obligations in terms of timeliness and of treating time allows and which was part of the White Paper we their customers fairly and reasonably. As I say, two of published in February, because that is one of the biggest them did not continue to meet those specifications, so steps we can take to protect dental health. we took them off the list of available testing suppliers. We are quite prepared to do more if that is what it takes. Ellie Reeves (Lewisham West and Penge) (Lab) [V]: The NHS has had its busiest and most crucial year ever, Madam Deputy Speaker (Dame Rosie Winterton): fighting the pandemic and delivering the vaccine roll-out, This session is supposed to finish in three minutes’ time, and all while continuing to provide routine care and but we have 12 more questioners. I would like to be able treatment. We owe our NHS workers so much, yet this to get everybody in, and a fair number are in the Government are proposing just a 1% pay increase, not Chamber. I am sure that everyone will be co-operative even the 2.1% previously promised. Can the Secretary in keeping their questions very short, and I ask the of State not see that after the year we have had, this is Secretary of State to be equally brief with his responses. an insult to their heroic efforts? Will he commit to getting a pay rise for staff that truly reflects the value of Angela Richardson (Guildford) (Con) [V]: Following their work? the important announcement last week, I know that Matt Hancock: The admiration in which I hold NHS many expectant mothers in Guildford and around the staff holds no bounds. The question of pay is rightly country will welcome the certainty that they can safely one for the independent pay review body, and I look come forward for a vaccine when it is offered. Can my forward to its publication. right hon. Friend confirm that he will continue to take every precaution to ensure that pregnant women have Robert Halfon (Harlow) (Con) [V]: On Friday I visited the support that they need to make an informed decision the vaccination centre at the Harlow Leisurezone to see about what is right for them and their health? the extraordinary work it is doing. Will my right hon. Friend thank the remarkable NHS staff and volunteers Matt Hancock: Absolutely. This decision was taken at the Harlow Leisurezone and at Lister House for on the basis of the best possible science and significant vaccinating 40,000 residents in Harlow with their first amounts of data from pregnant women who have already jab? Given what he has said previously about Public been vaccinated, so people can have the confidence to Health England and the move to Harlow, will he meet come forward and get the advice that they need for their me and colleagues to discuss the move and the exciting specific circumstances and then get the protection of proposals for Public Health England, to ensure that the jab. Harlow and the surrounding area of west Essex becomes the public health science capital of England? Patricia Gibson (North Ayrshire and Arran) (SNP) [V]: The Scottish Government and the First Minister Matt Hancock: May I add my praise for those at the have commitment to a full public inquiry later this year vaccination centre at Harlow Leisurezone? They have into all aspects of the handling of the pandemic, including been working incredibly hard and we are all very grateful. care homes. Will the Secretary of State confirm that he I would add Essex County Council to my right hon. supports a full public inquiry into the UK Government’s Friend’s long list, which I fully endorse. The council has handling of all aspects of the pandemic in England as leaned into the vaccination effort right across Essex. well? 673 Covid-19 Update 19 APRIL 2021 Covid-19 Update 674

Matt Hancock: This is obviously a matter for powers yesterday published an email between David Cameron greater than the Health Department. It is something and Matthew Gould, the head of NHSX, on 23 April. that the Prime Minister has clearly set out his views on, It reads: and that is what I will stick by. “As you can imagine, Matt Hancock, David Prior [NHS England chairman], Simon Stevens [NHS chief executive], as well as the Holly Mumby-Croft (Scunthorpe) (Con): Along with many trust CEOs, are extremely positive about this innovative offer.” the chair of the all-party parliamentary group on brain Is that email correct? Was the Secretary of State “extremely tumours, my hon. Friend the Member for St Ives (Derek positive” about the Greensill app? Does he not think Thomas), I have previously raised the issue of residents there is something morally wrong with using poorly who travel abroad for medical treatment having to pay paid and struggling NHS staff to allow a private company hundreds of pounds for covid tests to travel out and to to construct a financial bond to be traded on the return. This is affecting my constituent, David Hopkins, international money markets? and others across the country. Will the Health Secretary work with the Secretary of State for Transport urgently Matt Hancock: As I said to the right hon. Member to find a way to allow patients such as David to use free for Leicester South (Jonathan Ashworth), my approach NHS tests for medical travel purposes? was and is that local NHS employers are best placed to decide.

Matt Hancock: My hon. Friend raises an important Mark Pawsey (Rugby) (Con) [V]: Rugby’s primary point, and I am happy to look into it. I am also pleased care network-led vaccination centre at Locke House has that the cost of the tests that are needed for travel is provided over 34,000 first and 11,000 second doses to coming down, and an important piece of work is under JCVI groups 1 to 9 through a fantastic team of staff and way to see how we can get that down further. Nevertheless, volunteers. The GPs, however, have chosen not to take my hon. Friend makes a strong case for her constituent. part in phase 2 of the programme, and the centre is expected to close in mid-July as a consequence. Our local doctors Bambos Charalambous (Enfield, Southgate) (Lab): would prefer to vaccinate groups 10 to 12 in their own Face coverings are likely to remain a feature to protect surgeries, although that option is not currently available against covid-19, but people with hidden disabilities to them. What can the Secretary of State do to facilitate who cannot wear such coverings will face abuse. Despite that approach to the important task of vaccinating the raising the matter on previous occasions, including under-50s? once with the Prime Minister, and having been promised an awareness campaign, nothing has happened. Will Matt Hancock: I will look into that question, which the Secretary of State tell me when that campaign will has not been raised before. Generally, the use of a happen? primary care network—a group of GP practices—to come together to offer one centre has worked really Matt Hancock: Yes, an awareness campaign is under well. That is the first I have heard of that concern, so I way, and I am grateful for advance notice of this question. will take it away and ensure that it is looked at properly. I will write to the hon. Gentleman with the full details. He may say to me, “Sorry, Matt; more needs to be Mr Tanmanjeet Singh Dhesi (Slough) (Lab): The Prime done,” in which case I will look into it, but he makes an Minister today cancelled his planned trip to India this important point on which I essentially agree with him. week, and the Health Secretary has just announced that India has been placed on the Government’s travel red John Redwood (Wokingham) (Con) [V]: I congratulate list amid a devastating surge in coronavirus cases, with my right hon. Friend on the big reductions, based on well over 200,000 detected on a daily basis. A new the vaccinations, in case and death numbers. Will he double-mutation variant is reportedly more potent, and briefly update us on better air extraction, cleaning and dozens of cases have been detected here in the UK, too. other measures to control infection in hospitals to reassure Toassuage community concerns, will the Health Secretary the many patients who now need non-covid treatment? clarify that our vaccines are effective against this new variant?

Matt Hancock: My right hon. Friend has asked about Matt Hancock: We simply do not know that. We are this many times, and he is quite right to, because it is acting on a precautionary basis. I cannot give the hon. not just about cleaning. We have learned a lot during Gentleman that assurance, but we are looking into that the pandemic about the importance of good ventilation, question as fast as possible. The core of my concern and that is now embedded in infection prevention and about the variant first found in India is that the vaccines control. As cases in hospitals come down, hospitals may be less effective in terms of transmission and of across the country are separating, as much as is possible, reducing hospitalisation and death. It is the same concern those who might or do have covid from people who are that we have with the variant first found in South Africa coming to hospital having been tested and knowing that and is the core reason why we took the decision today. they do not have covid. That is incredibly important to reassure people that if they are asked to come to hospital Nigel Mills (Amber Valley) (Con) [V]: May I add my by a clinician, it is the best place for them. thanks to the NHS in Amber Valley, which has been moving through the vaccines so fast that it had even Mr Kevan Jones (North Durham) (Lab): In response done more than 70% of the 40 to 50 age group by last to my right hon. Friend the Member for Leicester South week? What is my right hon. Friend’s message, though, (Jonathan Ashworth), the Secretary of State said that it to those who are saying that, based on media reports, was up to local NHS trusts to decide whether to take up we have now reached the herd immunity level and the Greensill payday loan app, but The Sunday Times therefore this problem has all gone away? 675 Covid-19 Update 19 APRIL 2021 676

Matt Hancock: We do not think that that is true. European Football Proposal

Rob Butler (Aylesbury) (Con) [V]: Stoke Mandeville 4.55 pm Hospital in my constituency is home to the National Spinal Injuries Centre. Despite continuing to do excellent The Secretary of State for Digital, Culture, Media and work throughout the pandemic, a particular challenge Sport (Oliver Dowden): With permission, Madam Deputy arose when it came to providing support to relatives of Speaker, I should like to make a statement. Football is patients who need to learn together how to adapt when in our national DNA. We invented it, we helped to back at home. Can my right hon. Friend assure me that export it around the world, and it has been at the heart planning for a third wave of covid-19 will give full of British life for over a century. Football clubs, of consideration to the needs of spinal injuries patients course, are not just businesses but define communities and their families? across the country, so along with almost every Member of the House,I suspect, I was appalled by the announcement Matt Hancock: Yes, of course, I will give that matter made late last night that a handful of clubs are proposing consideration. I also make the case that while, as we to form their own breakaway European league. open up, there may be more transmission, I very much These six clubs announced that decision without any hope that that does not lead—in fact we know from the consultation with football authorities or with Government. data that that is highly unlikely to lead—to the same Worst of all, they did it without any dialogue whatsoever impact in terms of hospitalisations and deaths, because with their own fans. It was a tone-deaf proposal, but the we know that the vaccine is incredibly effective against owners of those clubs will not have been able to ignore the variants that are at large here in this country. That is the near universal roar of outrage from all parts of the another reason to be cautious against the incursion of football community over the past 24 hours. new variants for which we cannot give that assurance. This move goes against the very spirit of the game. This is a sport where a team such as Leicester City can Dr James Davies (Vale of Clwyd) (Con): Lateral flow ascend from league one to the premier league title in testing is really important in our continued fight against under a decade, earning the right to go toe to toe the pandemic. I am really pleased that many of my against European heavyweights in the champions league. constituents have been able to access asymptomatic Instead, a small handful of owners want to create a testing since Friday of last week, but, for residents in closed shop of elite clubs at the top of the game—a Wales, these tests are not yet available to order online league based on wealth and brand recognition rather through the gov.uk portal. Will my right hon. Friend than merit. We will not stand by and watch football be confirm whether that will be the case shortly? cravenly stripped of the things that make millions across the country love it. Matt Hancock: We are working closely with the Welsh Government to ensure that the testing offer in Wales is As a Conservative, I believe passionately in defending as rich and as easily accessible as the testing offer in our nation’s institutions and our rich heritage. They are England. Testing has been a UK-wide programme, but, central to our identity and help to build a sense of of course, the more we get it into local communities, the solidarity between people of every generation and every more it must be delivered through the NHS locally—for background. Just as the Government would not hesitate instance, through pharmacies, as announced today. That to act when other treasured areas of our national life needs to be done by the Welsh Government. We are are under threat, nor will we hesitate to protect one of working closely together to try to make sure that people our greatest national institutions: football. can get access to these tests as easily as saying “Jack This is, of course, for football authorities to handle rabbit”, wherever they live in the United Kingdom. first, and today I have met with the Premier League, the Football Association and the president of UEFA, while Madam Deputy Speaker (Dame Rosie Winterton): I the Sports Minister has had another series of meetings thank the Secretary of State for his statement. We will with the Football Supporters’ Association. The football now have a three-minute suspension for cleaning purposes. authorities have robust rules in place to deal with this, and I know from my conversations with them today 4.53 pm that they are rightly considering a wide range of sanctions Sitting suspended. and measures to stop this move in its tracks. My message to them was clear: they have our full backing. However, be in no doubt that if they cannot act, we will. We will put everything on the table to prevent this from happening. We are examining every option, from governance reform to competition law and mechanisms that allow football to take place. Put simply, we will review everything that the Government do to support these clubs to play. I have discussed those options with the Prime Minister this morning, and we are working at pace across Government and with the football authorities. I reassure this House of a very robust response. We will do whatever it takes to protect our national game. However, it is clearer than ever that we need a proper examination of the long-term future of football. To many fans in this country, the game is now almost unrecognisable from a few decades ago. Season after 677 European Football Proposal19 APRIL 2021 European Football Proposal 678

[Oliver Dowden] manifestos going back to 2010 to take action, and it is why I and the shadow Sports Minister, my hon. Friend season, year after year, football fans demonstrate the Member for Wirral South (Alison McGovern), unwavering loyalty and passion by sticking by their repeatedly urged the Government to get on with their clubs, but their loyalty is being abused by a small promised fan-led review of football—a promise that number of individuals who wield an incredible amount they made in 2019. It is nearly a year since our letter to of power and influence. If the past year has taught us the Sports Minister offering support and help with anything, it is that football is nothing without its fans. 16 questions that the review should focus on. We know These owners should remember that they are only that Members across the House have supported reform temporary custodians of their clubs, and they forget for the past 11 years of Conservative-led Governments, fans at their peril. That is why, over the past few months, so it is time for the Government to get off the subs I have been meeting with fans and representative bench and show some leadership on the pitch, because organisations to develop our proposals for a fan-led we need reform of football. review. I had always been clear that I did not want to It is not as if there has been a blockage in Parliament launch this until football had returned to normal following preventing the Government from taking action to sort the pandemic. Sadly, these clubs have made it clear that out the problems. Former Conservative Sports Minister, I have no choice. They have decided to put money before the hon. Member for Maidstone and The Weald fans, so today I have been left with no choice but to (Mrs Grant), has said: formally trigger the launch of our fan-led review of football. “no one is speaking for the football world with the independence and authority needed to address the big issues.”—[Official Report, The review will be chaired by my hon. Friend the 26 January 2021; Vol. 688, c. 207.] Member for Chatham and Aylesford (Tracey Crouch) She is right. The former Conservative Chair of the and will be a root-and-branch examination of football Digital, Culture, Media and Sport Committee, the hon. in this country. It will cover the financial sustainability Member for Folkestone and Hythe (Damian Collins), of the men’sand women’sgame, governance and regulation has said: and the merits of an independent regulator. Crucially, in the light of this weekend’s proposal, it will also “We should have long ago reformed the governance of football”. consider how fans can have an even greater say in the He is right as well. The current Conservative Chair of oversight of the game and the models that might best the Select Committee, the hon. Member for Solihull achieve that. (Julian Knight), has said: We are the people’s Government. We are unequivocally “What’s needed is a fan-led review of football with real teeth on the side of fans, and their voices have to be heard and here we have more evidence to strengthen the case for it.” when it comes to the future of our national game. It I welcome the review, but why the long delay? Why starts with fans, and it ends with fans. In the meantime, create the vacuum that has allowed these super-league we have thrown our full weight behind the football proposals the space and ability to become a reality? authorities and stand ready to do whatever is necessary Eleven years have been wasted when a small amount of to represent fans and protect their interests. I commend Government time could have been found to bring primary this statement to the House. legislation to the House to sort out the problems. Instead, it has been all punditry and no progress on the pitch, 5.1 pm and in that time, clubs and fans have suffered disasters. Jo Stevens (Cardiff Central) (Lab): I thank the Secretary Fans in Bury know only too well the importance of of State for advance sight of parts of his statement. reforming the way in which football is governed, and This is a watershed moment for our national game, and supporters in Liverpool, Edinburgh, Manchester, my this statement is welcomed, as is the chair of the review, city of Cardiff, Portsmouth and most football towns but it is short on detail and on the urgency that this and cities have seen the damage done to clubs when situation merits; fans will have noted that. The Secretary profit outstrips the role of supporters in our game. of State tweeted last night extolling the virtues of the We are in a global pandemic and the owners of the football pyramid, but if anything exposed the Government’s six clubs behind this proposal think that now is the time lack of understanding of our broken football system, to ride roughshod over their fans and endanger the that tweet summed it up. Tory trickle-down economics future of football, on the back of a year when fans have does not work, and it especially does not work in been at the heart of supporting communities up and football. down the country. What a contrast! These proposals Football governance is broken, football finance is have been carved out behind closed doors without broken and football fans, whichever club we support, consultation with fans or players, and they have at their are ignored. The hedge fund owners and billionaires heart a plan that is anti-football—a super league from who treat football clubs like any of their other commodities which teams can never be relegated and in which they have no care for the history of our football, for the role are always guaranteed a place because of their wealth. it plays in villages, towns and cities up and down our That represents a fundamental attack on the integrity country, and especially for the fans who are the beating of sporting competitions. heart of it. They should understand their role as custodians, It is very rare that an issue unites football fans and rather than cartel chiefs. The future of our national organisations across the rivalries and divides, but this game and all our clubs depends on it. super league proposal has managed to do just that. Labour has repeatedly called for the reform of the From supporters trusts and groups, including the Football governance and finances of football by the Government. Supporters’ Association, to the Professional Footballers’ Government intervention is needed to fix this broken Association, the Football Association, UEFA, the Premier system. That is why we pledged in all four of our League, the League Managers Association and the 679 European Football Proposal19 APRIL 2021 European Football Proposal 680

European Clubs Association—I could go on—it has will command support from both sides of the House; been universally rejected as the greedy, obscene and she was an excellent sports Minister, is a fan and is selfish proposal that it is. passionately committed to the game. We will shortly Let us act urgently. It is already too late for some publish the terms of reference for the review and will clubs and their supporters, so I ask the Secretary of work at speed. As the hon. Lady will have seen from my State when the review will be launched, what the terms statement—I am happy to repeat it from the Dispatch of reference will be, who will take part and when it will Box—we will do whatever it takes to protect our game report. What exactly will the Government do to stop and we will examine every single option. We are doing the European super league decimating our national that right now. game? They should explore every option, and I hope Julian Knight (Solihull) (Con) [V]: Just when we that they will, whether that is a super-tax on revenue or thought the beautiful game could not get any uglier, investigating whether the proposal breaches the clear along come the big six and show that they could not rules that govern markets and competition in this country. care less for the fans up and down the country. Will the For football fans up and down the country, our Secretary of State please outline to the House what message is clear: Labour stands ready to do whatever it specific levers he can pull to ensure that football authorities takes to stop this plan, and I hope that the Government come to the negotiating table rather than indulge in this will make exactly the same commitment. unseemly civil war? Does this involve, for example, a windfall tax on these clubs? I welcome my right hon. Oliver Dowden: I thank the hon. Lady for her questions Friend’scommitment to a fan-led review and pay testament and I think hidden in there somewhere was a welcome to the work that he has done in order to ensure that for the approach the Government are taking and for the football was one of the first sports to return last year. I fan-led review. also welcome the further meat on the bones. But will he The hon. Lady asks what we have been doing for the tell the big six today that this review will have the power past year, and I will tell her a few of things we have been to recommend that their nascent super league could be doing. We have been working to get football back behind given the red card and be legislated out of existence if closed doors, and we were one of the first leagues in they insist on pressing ahead? Europe to achieve that. We acted to get a third of games free to view with Project Restart, including the first ever Oliver Dowden: It is worth bearing in mind that there premier league games on the BBC. We acted to stop are two parts to this. In the medium term, we are clubs going bust, with hundreds of millions of pounds working on the fan-led review that has been launched, through covid support schemes, and ensured that the but that should not prevent us from us taking action big clubs looked after the smaller ones with the £250 million now to stop this proposal going ahead. My hon. Friend boost from the Premier League. We acted to keep highlighted some of the measures that we might consider football going through the pandemic, including through taking. I assure him that we are looking at all those secure protocols to enable travel between the UK and options and at competition law. In essence, we are elsewhere. Indeed, that was sometimes in the face of looking at what the Government do to facilitate matches opposition from Labour, saying that we should stop the and those clubs, and asking whether we should continue sport behind closed doors. Now, crucially, we are working to provide that support, because it does not strike me to get fans back into stadiums. This weekend, Members that the Government should be providing that support will have seen that for the first time, which was very in the face of this proposal. welcome, at the FA cup semi-finals. We are working and Gavin Newlands (Paisley and Renfrewshire North) making good progress towards a further return of fans (SNP) [V]: I thank the Secretary of State for advance at stage 3 of the road map. sight of his statement. I think it is the first time that I Alongside all that, we have continued to engage on have agreed with every single word of his statement— the fan-led review. The Minister responsible for sport, provided, of course, that he meant Scotland when he my hon. Friend the Member for Mid Worcestershire said, “We invented it.” (Nigel Huddleston), and I have engaged extensively with, It must be made clear to the clubs and owners involved to list a few names, Anton Ferdinand, Jordan Henderson, that no quarter will be given and that there will be no Karen Carney, the FA, the Premier League, the English concessions whatever in the current arrangements. It is Football League, the PFA, the national league, the well past time that a line was drawn in the sand. There is Football Supporters’ Association, Kick It Out, Women already a huge and unhealthy imbalance in the game, in Football, David Bernstein and Gary Neville. The with the big clubs in the big leagues with the big TV hon. Lady referred to my hon. Friends the Members for deals holding huge sums. This insatiable thirst for more— Folkestone and Hythe (Damian Collins) and for Maidstone this greed—must not stand. and The Weald (Mrs Grant), and I have discussed the Club football in countries beyond England, Spain matter with them and with the Chair of the Select and Italy faces being left even further behind. Clubs in Committee. All this work has been essential in ensuring Scotland—such as Rangers, Celtic, and league cup winners that we get to the point where we can launch the review and Scotland’s second most successful club in the last today. decade, St Johnstone—are not involved, but this has As I said in my statement, I would much rather that not stopped the widespread condemnation. Scottish we had waited until fans were fully back and the game Professional Football League chief exec Neil Doncaster had been stabilised, but because of the actions that took said: place over this weekend we have launched the review “These proposals, or any like them, would have an enormously now. The hon. Lady will have seen from my statement damaging impact on the very fabric of our sport at all levels… We that it will be led by my hon. Friend the Member for believe that any such ‘competition’ would dramatically undermine Chatham and Aylesford. I hope that my hon. Friend the global appeal of football and would be financially catastrophic 681 European Football Proposal19 APRIL 2021 European Football Proposal 682

[Gavin Newlands] new league to first ballot its fans and be mandated to abide by the outcome of the ballot; and will he make for all but a very tiny minority. The proposals…assembled by a sure that the legislation is retrospective and active from small, self-selected group of very wealthy clubs, appear to be a the beginning of the current football season? Those cynical and very worrying attempt to thwart the core principle of who wish to steal and destroy the English game must be sporting merit which rightly underpins European football. They stopped. English football must be saved. This Parliament represent a clear and present danger to the sport we all love.” has the power to do it, not just to review it. The public are exhausted by the sleaze and greed associated with the elites at the top of our society. How Oliver Dowden: I assure the hon. Gentleman that we do this Tory Government plan to eradicate greed and will be doing three things. First, we are backing the corruption at the heart of politics and business, and, in actions by the football governing authorities. Secondly, doing so, to protect football for the fans? Or does the at the same time, we are looking at all options—he Secretary of State agree with the Prime Minister that raised some important further options—and we will greed is good? Some overseas owners are from countries proceed at the fastest pace required to deliver a result. with concerning human rights records and links to Thirdly, these events give rise to major questions, which dubious regimes, and may use their ownership of popular have become ever more apparent to me. We had the teams to sportswash their image. What actions do the promise in our manifesto. My dealings with football Government plan to counter this? over the past years, as we have sought to negotiate the support that the game requires, have demonstrated again Oliver Dowden: I am tempted to thank the hon. the need for governance reform and the need to look at Gentleman for the first line of his question and then to finance and whether an independent regulator is required. stop there; from my perspective, it all went a bit downhill All these things will now be examined by my hon. after that. He is absolutely right to say that we should—and Friend the Member for Chatham and Aylesford. the Government will—stand up to greed and stand up for the fans, and to identify that even though it is Alun Cairns (Vale of Glamorgan) (Con) [V]: I English teams that are proposed for this league, it will congratulate the Secretary of State on his statement and have a severely damaging effect on all clubs in all parts on the announcement of the fan-led review. Does he of our United Kingdom. The game is, of course, as agree that the pyramid structure of the English football central to Scottish, Welsh and Northern Irish identity league gives focus to football clubs right across the as it is to English identity. It is a sport for the whole of country to compete and progress to the highest level our United Kingdom and it is right that we work based on performance and competition? Does he recognise together as a United Kingdom to stop this dreadful that it also provides the opportunity for community proposal. links and rivalry across the country, even between Wales and England, when clubs such as Swansea, Cardiff, Damian Collins (Folkestone and Hythe) (Con) [V]: I Newport and Wrexham choose to compete in and are welcome the Secretary of State’sstatement and the decision welcomed into the English football structure? Will the to launch the fan-led review but, as he said, this is a review he has announced also consider the interests of review for the medium term, and decisions about the those clubs that are not in England but compete in the super league will need to be taken in the coming weeks English football league? and months. If, judging by what he said today, it is clear that, under existing competition law and existing powers Oliver Dowden: As almost always, I agree with every of the premier league and the FA, nothing can be done word that my right hon. Friend has said. I am happy to to stop these six clubs joining the super league, are the give him precisely that assurance. He is absolutely right Government prepared to amend the law to give those to highlight the two biggest problems with this super bodies the powers they need, in particular to prevent league: it removes a large element of the competition clubs from joining competitions that have not been and the joy of the game, and it risks taking money away sanctioned by either the FA or UEFA? from grassroots football, which is central to the game.

Oliver Dowden: I pay tribute to my hon. Friend for all Lucy Powell (Manchester Central) (Lab/Co-op) [V]: I the work he has done, which has helped to shape the thank the Secretary of State for his clear statement. It fan-led review we have announced. On competition law, was not that long ago that I watched my club, Manchester we are already engaging with BEIS on our response. As City, which I now represent, beat Gillingham in the I said, we rule out nothing. I know from my conversations second division playoff final. We are now in what might with the premier league and UEFA that they are already be called our glory days, but those of us who remember proposing to take some pretty draconian steps to stop the Gillingham game know that the glory days do not this, but we stand ready to act. We will not allow always last. Does the Secretary of State agree that a anything to stop us in terms of timing; we will get on closed-shop league, where there are no bad days and no with it as soon as we need to. glory days, is no league at all and has no place in our national game? British football fans are rightly outraged Tim Farron (Westmorland and Lonsdale) (LD) [V]: by that notion, which goes against our deeply held This is a devastating attack on the English game, as a culture of fair and open competition and backing the shameless, arrogant and desperate elite seek to make underdog. It is an American export that we just do not millions at the expense of the millions of us who love want. the game and love our clubs. The statement contained some rhetoric that I found good and urgent, and detail Oliver Dowden: I completely agree with the hon. that was ponderous and thin, so as well as a lengthy Lady. We cannot have money and brand triumphing review, will the Secretary of State fast-track legislation and trumping the colour and joy of the game. Football that will force any club seeking to break away and join a would be massively damaged by this move. 683 European Football Proposal19 APRIL 2021 European Football Proposal 684

Gareth Bacon (Orpington) (Con): I have been a supporter These clubs are as much a part of our heritage as the of Manchester United for 42 years and held a season great castles, stately homes, cathedrals and orchestras ticket at the club for more than a decade, so I am aghast of England and the rest of the United Kingdom. We that the owners of my club have signed up to this proposal. stand ready to do whatever it takes to support this. On It is wholly unnecessary and will be deeply damaging, the fit and proper person test, that is precisely why we on the altar of pure greed. It betrays the management, have set up the fan-led group and it will be one of the players, fans, history and tradition of not just my club things my hon. Friend will be looking at as we go but the wider game as a whole. So I congratulate my forward. In the short term, we need to stop this in its right hon. Friend on his statement today and the tone tracks. We do that by working with the leagues—I gave of the statement he made yesterday. Will he reassure us the president of UEFAmy 100% support for the measures that the Government will move at speed to do everything that he outlined today, and similarly we will see measures within their legal power to prevent this ghastly plan coming forward from the Premier League—and then, if from seeing light? that does not work, the Government themselves stand ready to take steps to prevent this from happening. Oliver Dowden: I thank my hon. Friend for his question. His reaction, as a loyal fan of that club, has been Huw Merriman (Bexhill and Battle) (Con) [V]: Down replicated: I have heard messages from many loyal fans here on the Sussex south coast, we are very proud of of all six of those clubs, who share the same sense of Brighton and Hove Albion. Ten years ago, it was playing deep frustration. I assure him not only that we will act at the local athletics stadium; tomorrow it plays in our at speed but that we have acted at speed. All of Sunday, world-leading premier league against Chelsea, one of I had meetings on actions and today we are moving at the six clubs that are doing their best to destroy it. pace. I am engaging closely with No. 10 Downing Street These six clubs are not currently or historically the most and the Prime Minister to make sure we do whatever is successful six clubs, yet, acting as a cartel, they use their required. clout to undermine competition. If the six clubs refuse to back down in totality, will the Secretary of State look Ian Byrne (Liverpool, West Derby) (Lab): In the light to introduce legislation to immediately break up their of the shocking news that six of our national football ownership structures and bring in the German model, clubs—it is heartbreaking to see Liverpool football club where 51% of the club is owned by the fans and custodians among them—are looking to break away from the of their club? football pyramid in England at a time when, collectively, we should be working together to rebuild our football communities from the ravages of covid, the anger across Oliver Dowden: My hon. Friend is absolutely right to the country is palpable. I welcome the long overdue highlight the central risk, which is that this creates a closed fan-led review, but can the Secretary of State outline shop—it freezes in perpetuity what is only a snapshot of how the Government will act to stop capitalism and the game at this moment and makes the game so much corporate greed destroying a game that millions in this poorer for it. We have examined the German model country love, and economically many communities rely on? very closely. It is interesting to note that German teams are not participating in this. That rather makes the case Oliver Dowden: The hon. Gentleman is absolutely for the fan-led review looking at the German model and right to highlight that. It seems extraordinary, at a time I can assure him that it will do so. In terms of other when most stadiums remain completely empty and measures we may take, we have not ruled out legislative clubs are under tremendous financial pressure, that, measures, if those are required, but the first line of rather than focusing on the rebuilding of the game and action needs to be with the football leagues themselves. getting fans back into stadiums, these six clubs are distracted by something that is not in the interests of the game. It is right that we look at competition law. We Tony Lloyd (Rochdale) (Lab) [V]: People like my own need to look at the range of things that Government do father, who was one of those who supported Manchester to help games happen, to help clubs participate in the United in the ’20s and the ’30s, would not have recognised league, and say, “Why should we be doing this anymore the stranglehold that the corporate greedy have got for those six clubs?” That is precisely the work that we around the windpipe of football already. The words that are undertaking. the Secretary of State has spoken today are very helpful, but the corporate greedy have corporate lawyers, and he needs to guarantee that they will not tie the Government Chi Onwurah (Newcastle upon Tyne Central) (Lab) —and, in the end, football and its supporters—in knots, [V]: Newcastle United fans have long suffered from the so we need to see action from him quickly if legislation greed and self-interest that drive premiership owners, is needed. Is he talking to his opposite numbers in Spain but this attempt to turn our national game into the cash and in Italy, because it is important that we have not cow of a narrow elite shows just how morally bankrupt just a global response but a European response to what the premiership has become and how little Government is not simply an English or a British problem? care. There seem to be more rules to prevent the removal of a window frame in a listed building than the wholesale destruction of this jewel of working-class culture. Can Oliver Dowden: I can assure the hon. Gentleman that the Secretary of State believe that the owners of these those meetings will be happening this week; we are in six clubs meet the fit and proper person test? the process of setting them up. I have already discussed with Her Majesty’s ambassador to Paris having a meeting Oliver Dowden: The hon. Lady will have seen from with my French opposite number later this week, and I my statement—I am happy to repeat it—that I completely will be seeking meetings with my Spanish and Italian agree with her. This is absolutely central to our heritage. opposite numbers as well. 685 European Football Proposal19 APRIL 2021 European Football Proposal 686

Antony Higginbotham (Burnley) (Con): In forming it with the Premier League and the FA. We are well these proposals, the six premier league clubs involved aware that competition is going to come into play in this have shown no regard for the impact on clubs such as scenario, and we stand ready to work with them and Burnley in my constituency, but also no regard for the take measures that may be required. fans who offer their unwavering loyalty season after season. I therefore welcome the Secretary of State’s Kevin Brennan (Cardiff West) (Lab): My hon. Friend announcement of a fan-led review that will put supporters the Member for Pontypridd (Alex Davies-Jones), who is front and centre. Will he confirm that the Government my constituency neighbour, can always come next door will do everything possible to protect top-flight football and support Cardiff City if she wants a real club. in this country, which provides so many economic benefits This super league proposal is the sporting equivalent to communities, including in Burnley and Padiham? of a billionaires’ gated community, with a football favela for everyone else on the other side of the fence. Oliver Dowden: I am happy to give my hon. Friend Could the very robust response that the Secretary of that assurance. I often say, as Secretary of State for State says he wants from the Government include the Digital, Culture, Media and Sport, that the two things Prime Minister ringing up, or perhaps even texting, the that people around the world know about the United former No. 10 spin doctor Katie Perrior, who also Kingdom and instantly mention, whether I am speaking worked on his mayoral campaign and whose public to an opposite number in east Asia, in North America affairs agency is promoting the super league launch? or in Europe, are the royal family and the premier Will the Prime Minister tell her that this is one occasion league. It is a jewel in the crown of the United Kingdom when insider connections will not win any traction with and we will do what is required to defend it. the Government, and that this betrayal of football fans and the ethos of fair competition in sport will be Alex Davies-Jones (Pontypridd) (Lab): As a football blocked by the UK Government using urgent legislation fan and a usually proud Liverpool supporter, I am now in the forthcoming Queen’s Speech? ashamed of my club and heartbroken at this outrageous European super league proposal, which is just another Oliver Dowden: I am very happy to give the hon. example of the fundamental structural flaws at the Gentleman an assurance that we will take the robust heart of our beautiful game. It is clear from contributions action that is necessary. In fact, I think the best place to here today that our country’s proud and rich history start—it is where I started—is speaking to the president and love of the game cut across the political divide, and of UEFA and the leadership of the Premier League and I am gutted that we find ourselves coming together to the FA. I hope that their actions can stop the proposal push the Secretary of State, once again, for some urgent in its tracks, and I think we will see some very robust answers. It is also concerning to note that we have heard action from them. I have been clear, and I am happy to nothing from the Government on the potential impact be clear again, that if that does not work, the Government of these proposals on the women’s game. The strength stand ready to act. We will not wait for it not to work; of feeling across the House and across the country we are working through the options for measures now could not be clearer. Time and again, this Government and stand ready to take them at the appropriate juncture. have failed football fans. Will the Secretary of State do whatever it takes to stop the European super league Jack Brereton (Stoke-on-Trent South) (Con) [V]: I from going ahead? very much support what my right hon. Friend has said. Does he agree that the survival of clubs such as Stoke Oliver Dowden: The short answer is yes. The hon. City in my constituency is the No. 1 priority for fans, Lady is absolutely right to highlight the impact on the and that Labour’s cynical move to try to stop football women’s game, which I mentioned in my statement. carrying on behind closed doors twice over recent months That is part of how the pyramid works, as she will well would have been catastrophic for clubs and therefore know. The finances that have helped the women’s game fans? Will he confirm that sport continuing throughout to go from strength to strength in recent years—it is the pandemic has been, and always will be, a priority for wonderful to see the strength of the game—come from this Government? the pyramid supporting it. If that failed to happen, that would be another big cost of this proposal. Oliver Dowden: My hon. Friend is absolutely right. We have worked tirelessly to ensure that the game has James Cartlidge (South Suffolk) (Con): This is an continued behind closed doors, and I am happy to give outrageous proposal, so I strongly welcome the robust the assurance that I will work tirelessly until we reach set of measures that my right hon. Friend has announced the end of the road map and we have every single seat today. On the point of competition law, these clubs will taken in stadiums so that we can get football back on its have very powerful legal teams, and they have huge feet. It is only at that point that we should be considering financial resources. Whatever the current legal advice, those wider questions of the governance of the game. It does he accept in principle that, where a league operates is a source of deep sadness to me that we are having this on the basis of not having relegation and is basically distraction rather than getting on with getting the game based on the wealth that the clubs have, it must be a back. cartel? Mr Gregory Campbell (East Londonderry) (DUP) Oliver Dowden: My hon. Friend raises a very important [V]: The Northern Ireland women’s football team, with point. That is a very valid interpretation of the effect of amateur players, qualified for the Euros for the first time this proposal. Clearly, I will be working with BEIS and ever. That demonstrates what football is about. Many competition lawyers to get greater clarity and definition people regard the announcement today as a tactical on that, but I can tell him that I have already discussed move against UEFA. Whatever it is, will the Secretary 687 European Football Proposal19 APRIL 2021 European Football Proposal 688 of State back up his rhetoric today, which I welcome, have the brother of the ex-Labour leader talking nonsense with action, along with the football authorities, to about vaccinations while fellow protestors shout abuse ensure that the views of billions of fans worldwide at genuine football fans. I have a simple solution: keep prevail over the views and tactics of the billionaire these greedy football club owners as far away from our financiers? football grounds as possible, and the same goes for Piers Corbyn. Please will my right hon. Friend tell the Oliver Dowden: May I begin by sharing in the hon. football fans in Ashfield what the Government’s plans Gentleman’s congratulations to the Northern Ireland are to protect our beautiful game inside and outside the women’s football team? That was a fantastic result and I stadiums? was very cheered to see it. The hon. Gentleman is absolutely right that this is Oliver Dowden: I do not think I can add a great deal not confined to the UK. The premier league and English to my hon. Friend’s remarks. I was somewhat bemused football are loved globally, and we can see the reactions when observing the protest outside the game yesterday, in France, Spain and Italy: it is not just here in the and I can also assure my hon. Friend and all his United Kingdom that we feel dismayed at the proposals constituents that the Government will not hesitate in that have been put forward—that feeling is near-universal. taking robust action to ensure this does not happen.

James Daly (Bury North) (Con) [V]: Does my right Jeff Smith (Manchester,Withington) (Lab): My 50-plus hon. Friend agree that this proposal is motivated by years of watching Man City has brought me a lot of greed and shows contempt for fans and the footballing emotions—pain, despair, misery and, more recently, a pyramid? Does he also find it sad that while the boards lot of elation and joy—but always pride, whatever tier at Manchester United and Manchester City were we were in, until last night, when the overriding emotion negotiating this proposal to make millions of pounds was shame and anger at my club being part of this. In, for their owners, they and others did nothing to save in effect, ending competition by merit at the top of the their local neighbour Bury FC, whose fans were also pyramid, this ends hope for clubs throughout the pyramid, betrayed by an owner who had attempted to profit from and it is absolute anathema to the values of a lot of its heritage and history? sport in this country. So I welcome the tone of the Secretary of State’s statement, and I want to ask him Oliver Dowden: I am sympathetic to the concerns three things. When he speaks to the clubs, will he try to raised by my hon. Friend, and I would also note that convey the anger in this Parliament and across the many clubs, including some that are seeking to break country at this proposal? When he speaks to the Premier away with the announcement last night, have benefited League, will he encourage it to take the strongest possible enormously from Government and taxpayer support, action against these clubs, including my beloved Man and they should think carefully about the duty they owe City? Finally, a review will take time, but does he to taxpayers in return and whether they are discharging recognise that there is a will in this Parliament to take it with these proposals. strong action quickly, if necessary?

Chris Stephens (Glasgow South West) (SNP) [V]: I Oliver Dowden: I think the hon. Gentleman spoke thank the Secretary of State for his statement and the very eloquently. Indeed, what he has said is shared by, announcement of a review. Do the Government agree sadly, so many supporters of those six clubs. I will of that tougher rules are now needed on who can buy course be conveying that anger, and I am sure that that major sports clubs in the United Kingdom? May I add will be reflected in the coverage of this statement. I have my voice to those of other colleagues in the House already met the Premier League, and I have said that we asking for the Government to look at the German will support it in taking the strongest possible action. I model, because it is vitally important that we have a can also give the hon. Gentleman the assurance that if model of pre-agreed conditions requiring a minimum the actions by the Premier League and UEFA are not percentage of each club to be owned by everyday supporters sufficient to stop this in its tracks, I have noted the level and fans? of support in the House for taking further measures, and it gives me confidence that we will be able to get any Oliver Dowden: The hon. Gentleman is right to highlight measures through should those be necessary. the German model; it has merits and it is right that the fan-led review should look at it. I should also note, Damian Hinds (East Hampshire) (Con): Being a top however, on the flip side of this that foreign investment premiership club is not a franchise; it is to be part of the in the Premier League and the English Football League contestable apex of the whole sport. In turn, that whole has brought tremendous benefits to the game: it has sport is part of our culture, part of our heritage and meant that we have had very strong games played up part of who we are. So I strongly welcome my right hon. and down the country every night of the week with Friend’s robustness in his statement and in bringing some of the finest players in the world. I am not against forward the fan-led review. Can he assure me that both foreign investment in our game per se, but that cannot his immediate response and the fan-led review will be be against the wider interests of the competition and far-ranging, with nothing off the table? ensuring that we have a rich and diverse game, and these proposals are, at their heart, putting that at risk. Oliver Dowden: Yes, I am very happy to give my right hon. Friend that assurance: nothing will be off the Lee Anderson (Ashfield) (Con) [V]: Football fans in table. He is absolutely right when he talks about the Ashfield think that common sense in football is in short heritage of these clubs. The owners are but temporary supply these days: inside grounds we have billionaire custodians of something that is precious to our national bosses plotting to sell our beautiful game to the highest identity, and they really should take that responsibility bidder, and meanwhile, outside Wembley stadium, we seriously. 689 European Football Proposal19 APRIL 2021 Finance (No. 2) Bill 690

John Spellar (Warley) (Lab): Interestingly, only one (2) In the section 61A of the Finance Act 2003 (relief for of these six clubs has always been in the top division in freeport tax sites) inserted by paragraph of that Resolution, in English football, and now they want permanent status. subsection (2), after paragraph (c) (but before the “and” at the The Secretary of State’s announcement of a review is end) insert— welcome, if slightly overdue, but, frankly, has been met “(ca) Part 3A makes provision about cases involving by contemptuously indifference by these arrogant oligarchs. alternative finance arrangements,”. The only thing they understand is power, and the (3) In section 81(1A) of that Act (further return where relief withdrawn), in the paragraph (aa) inserted by paragraph (3)(a) of Government should be using the power of the state that Resolution, at the end insert— with full force and co-ordinating with other countries. Will he rapidly refer them to the competition authorities, “other than in a case to which paragraph 10A of that Schedule (alternative finance arrangements) applies,”. cut them off from any further public funds and look at the tax status of image rights—just for a start—and, (4) In section 81ZA of that Act (alternative finance arrangements: return where relief withdrawn)— quite frankly, drive these sharks out of British football? (a) in subsection (1), after “arrangements)” insert— Oliver Dowden: Somewhat unusually—although not “or under Part 3 of Schedule 6C (relief for freeport tax that unusually, to be fair to the right hon. Gentleman—I sites) in a case to which paragraph 10A of that agree with pretty much everything he said, and I can assure Schedule (alternative finance arrangements) applies”, him that we will be looking at all of those options. To (b) in subsection (3), at the end insert— reassure the House, we will take robust action when it is “(c) where the relief was given under Part 2 of Schedule 6C, required. We will not wait for the outcome of the fan- the last day in the control period on which the led review, and all the things he is talking about are the qualifying freeport land is used exclusively in a qualifying manner.”, sort of things we are discussing internally in Government. and Clive Efford (Eltham) (Lab): Football’s governing (c) after subsection (6) insert— bodies must stand firm against this European super “(6A) Terms used in paragraph (c) of subsection (3) league, and I welcome the statement from the Secretary which are defined for the purposes of Schedule 6C of State that he is not going to leave any stone unturned have the same meaning in that paragraph as they in assisting with that. We now control our own borders, have in that Schedule (as modified by paragraph having left the European Union, so this will be a major 10A of that Schedule). (6B) Paragraph 10 of Schedule 6C (as modified by test for our new powers over our borders, whereby we paragraph 10A of that Schedule) applies for the can prevent people from entering the country if they are purposes of subsection (3)(c) as it applies for the not playing matches sanctioned by the sport’s governing purposes of paragraph 8 of that Schedule.” bodies. On the fans’ review, will the fans be able to lead (5) In section 85 of that Act (liability for tax), after “arrangements)” it wherever they wish to go—for instance, on the right insert— to buy shares at a time of transfer of ownership or on “or under Part 3 of Schedule 6C (relief for freeport tax sites) in a fans being elected to the boards of football clubs? Will case to which paragraph 10A of that Schedule (alternative finance the fans really be able to lead and to go where they want arrangements) applies”. to go with this review? (6) In section 86 of that Act (payment of tax)— Oliver Dowden: The hon. Gentleman is right to highlight (a) in subsection (2), in the paragraph (zb) inserted by the point about controlling our borders. I can assure paragraph (4) of that Resolution, at the end insert— him that we will be considering those powers if it is “other than in a case to which paragraph 10A of that Schedule (alternative finance arrangements) applies,” necessary, and those discussions are happening. The review will be able to go wherever it needs to go. My and hon. Friend the Sports Minister and I have already (b) in subsection (2A), after “arrangements)” insert— engaged a lot with fans, and indeed it is worth noting “or under Part 3 of Schedule 6C (relief for freeport tax that, at the Budget recently, the Chancellor announced sites) in a case to which paragraph 10A of that Schedule (alternative finance arrangements) applies”. proposals to allow fans to take stakes in and take control of their own clubs, so we are already moving in (7) In section 87 of that Act (interest on unpaid tax)— that direction. (a) in the paragraph (azaa) inserted by paragraph (5) of that Resolution, after “sites),” insert— Madam Deputy Speaker (Dame Rosie Winterton): I “other than in a case to which paragraph 10A of that thank the Secretary of State for his statement. I suspend Schedule (alternative finance arrangements) applies,”, the House for three minutes for cleaning purposes. and (b) after that paragraph insert— 5.44 pm “(azab) in the case of an amount payable because relief Sitting suspended. is withdrawn under Part 3 of Schedule 6C (relief for freeport tax sites) in a case to which paragraph 10A 5.47 pm of that Schedule (alternative finance arrangements) applies, the date which is the date of the disqualifying On resuming. event for the purposes of section 81ZA (see subsection (3) of that section);”. FINANCE (NO. 2) BILL: (FREEPORTS (STAMP (8) In the Schedule 6C to that Act (relief for freeport tax sites) DUTY LAND TAX)) (WAYS AND MEANS) inserted by paragraph of that Resolution, after Part 3 insert— Resolved, “Part 3A That— Alternative finance arrangements (1) The provision made by Resolution 65 of the House of Cases involving alternative finance arrangements 9 March 2021 (freeports (stamp duty land tax)) be varied and 10A (1) This paragraph applies where either of the following supplemented as follows. applies— 691 Finance (No. 2) Bill 19 APRIL 2021 692

(a) section 71A (land sold to financial institution and Finance (No. 2) Bill leased to person), or (b) section 73 (land sold to financial institution and re-sold to person). (Clauses 1 to 5; Clauses 6 to 14 and Schedule 1; Clauses 24 to 26; Clause 28; Clause 30 and Schedule 6; (2) This paragraph applies for the purposes of determining— Clauses 31 to 33; Clause 36 and Schedule 7; Clause 40; (a) whether relief is available under Part 2 of this Schedule Clause 41; Clause 86; Clauses 87 to 89 and Schedules 16 for the first transaction, and and 17; Clauses 90 and 91; Clauses 92 to 96 and (b) whether relief allowed for the first transaction is Schedule 18; Clause 97 and Schedule 19; Clauses 109 to withdrawn under Part 3 of this Schedule. 111 and Schedules 21 and 22; Clause 115 and (3) For those purposes this Schedule has effect as if— Schedule 27; Clauses 117 to 121 and Schedules 29 to 32; (a) references to the purchaser were references to the Clauses 128 to 130; any new Clauses or new Schedules relevant person, and relating to: the impact of any provision on the financial (b) the reference in paragraph 3(2)(d) to land held (as resources of families or to the subject matter of stock of the business) for resale without development or redevelopment were a reference to land held in Clauses 1 to 5, 24 to 26, 28, 31 to 33, 40 and 86; the that manner by the relevant person. subject matter of Clauses 6 to 14 and Schedule 1; the impact of any provision on regional economic (4) The first transaction does not qualify for relief under Part 2 of this Schedule except where it does so by virtue of this paragraph. development; tax avoidance or evasion; the subject matter of Clauses 87 to 89 and Schedules 16 and 17 and (5) In this paragraph— Clauses 90 and 91; the subject matter of Clauses 92 to “the first transaction” has the same meaning as in section 71A or 73 (as appropriate); 96 and Schedule 18, Clause 97 and Schedule 19 and Clauses 128 to 130) “the relevant person” means the person, other than the financial institution, who entered into the arrangements [1ST ALLOCATED DAY] mentioned in section 71A(1) or 73(1) (as appropriate).” Considered in Committee And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.—(Jesse Norman.) [DAME ROSIE WINTERTON in the Chair]

The First Deputy Chairman of Ways and Means (Dame Clause 1 Rosie Winterton): Before I ask the Clerk to read the title INCOME TAX CHARGE FOR TAX YEAR 2021-22 of the Bill, I should explain that in these exceptional circumstances although the Chair of the Committee Question proposed, That the clause stand part of the would normally sit in the Clerk’s Chair during Committee Bill. stage,in order to comply with social distancing requirements The First Deputy Chairman of Ways and Means (Dame I will remain in the Speaker’s Chair, even though I will Rosie Winterton): With this, it will be convenient to be carrying out the role not of Deputy Speaker but of discuss the following: Chairman of the Committee. We should be addressed Clauses 2 to 4 stand part. as Chairs of the Committee, rather than as Deputy Speakers. Amendment 2, in clause 5, page 2, line 16, leave out “2022-23”. This amendment would mean that the freezing of tax thresholds at 2021-22 levels did not apply until 2023-24. Amendment 3, page 2, line 18, leave out “2022-23”. See the explanatory statement for Amendment 2. Amendment 4, page 2, line 25, leave out “2022-23”. See the explanatory statement for Amendment 2. Clause 5 stand part. Clauses 24 and 25 stand part. Amendment 93, in clause 26, page 19, line 3, at end insert— “, or for the presence of antibodies to SARS-CoV-2”. This amendment would extend the income tax exemption for payments to employees in respect of the cost of obtaining antigen coronavirus tests to cover antibody coronavirus tests too. Clause 26 stand part. Clause 28 stand part. Amendment 92, in clause 31, page 20, line 13, at end insert— “, where the person who received the payment is not a qualifying person by virtue of Paragraph 5 of the direction given by the Treasury under section 76 of the Coronavirus Act 2020”. This amendment would ensure that the one-off £500 payment to certain working households in receipt of tax credits could only be recovered where it is found that the individual was not entitled to the payment because they were knowingly concerned in underlying fraud either in relation to their tax credit award or the one-off payment. 693 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 694

Amendment 15, page 20, line 13, at end insert— This new clause would require a report comparing the effect of (a) “(4) The Chancellor of the Exchequer must, no later than the coronavirus job retention scheme and the self-employment 5 April 2022, lay before the House of Commons an equalities income support scheme being continued until 30 September 2021, impact assessment of the provisions of this section, which must and (b) the coronavirus job retention scheme and self-employment cover the impact of the provisions on— income support scheme being continued until 31 December 2021 on various economic indicators (a) households at different levels of income, (b) people with protected characteristics (within the New clause 11—Review of changes relating to cycles meaning of the Equality Act 2010), and cyclist’s safety equipment— (c) the Treasury’s compliance with the public sector equality “(1) The Chancellor of the Exchequer must review the impact duty under section 149 of the Equality Act 2010, on investment in parts of the United Kingdom and regions of (d) equality in different parts of the United Kingdom and England of the changes made by section 25 and lay a report different regions of England, and of that review before the House of Commons within six months of the passing of this Act. (e) child poverty.” (2) A review under this section must consider the effects of the Clauses 31 to 33 stand part. provisions on— Clause 40 stand part. (a) business investment, Clause 86 stand part. (b) employment, New clause 7—Assessment of revenue effects of (c) productivity, supplementary income tax rate— (d) GDP growth, “(none) The Chancellor of the Exchequer must, no later than (e) poverty, and 31 October 2021, lay before the House of Commons an assessment (f) carbon emissions. of the effects on tax revenues of introducing a supplementary rate of income tax, charged at a rate of 55%, above a threshold of (3) A review under this section must consider the following £200,000.” scenarios— This new clause would require the Government to publish an (a) the cost of a cycle is made an allowable expense on assessment of the effect on tax revenues of introducing a self-assessment tax return forms, and 55% income tax rate on income over £200,000. (b) the cost of a cycle is not an allowable expense on New clause 8—Equalities impact assessment and self-assessment tax return forms. distributional analysis of tax thresholds— (4) In this section— “parts of the United Kingdom” means— “The Chancellor of the Exchequer must, no later than 5 April 2022, lay before the House of Commons an equalities impact (a) England, assessment of existing income tax thresholds and a distributional (b) Scotland, analysis of— (c) Wales, and (a) the effect of reducing the income tax threshold for the (d) Northern Ireland; additional rate to £80,000, and and “regions of England” has the same meaning as (b) the effect of introducing a supplementary rate of income that used by the Office for National Statistics.” tax, charged at a rate of 50%, above a threshold of This new clause would require a report comparing the impact of the £125,000.” impact of (a) making the cost of a cycle an allowable expense on New clause 10—Review of changes to coronavirus self-assessment tax return forms and (b) not doing so on various support payments etc— economic indicators. “(1) The Chancellor of the Exchequer must review the impact New clause 12—Review of impact of section 40 on on investment in parts of the United Kingdom and regions of equalities— England of the changes made to coronavirus support payments “(1) The Chancellor of the Exchequer must conduct an etc by sections 31, 32 and 33 of this Act and lay a report of that equality impact assessment of section 40 and lay this before the review before the House of Commons within six months of the House of Commons within six months of Royal Assent. passing of this Act. (2) This assessment must consider the expected impact (2) A review under this section must consider the effects of the of section 40 on individuals and groups with protected provisions on— characteristics under the Equality Act 2010.” (a) business investment, This new clause would require the Chancellor of the Exchequer to (b) employment, review the impact of Clause 40 on equalities. (c) productivity, New clause 22—Review of impact of section 40— (d) GDP growth, and “(1) The Chancellor of the Exchequer must review the impact (e) poverty. of section 40 and lay a report of that review before the House of (3) A review under this section must consider the following Commons within six months of the passing of this Act. scenarios— (2) A review under this section must consider the effects of the (a) the coronavirus job retention scheme and the self- provisions on— employment income support scheme are continued (a) the regional distribution of capital gains in the UK, until 30th September 2021, and and (b) the coronavirus job retention scheme and self- (b) projected receipts. employment income support scheme are continued until 31st December 2021. (3) A review under this section must consider the following scenarios— (4) In this section— (a) capital gains tax rates are changed so as to be equal to “parts of the United Kingdom” means— those of income tax, and (a) England, (b) Scotland, (b) capital gains tax rates remain at the level in this Act.” (c) Wales, and This new clause seeks a report on the impact of equalising capital (d) Northern Ireland; gains tax and income tax on (a)the regional distribution of capital and “regions of England” has the same meaning as gains in the UK, and (b) projected receipts. that used by the Office for National Statistics.” New clause 23—Equality impact analysis— 695 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 696

“(1) The Chancellor of the Exchequer must review the equality I come now to the clauses that legislate to maintain impact of sections 1 to 5, 24 to 26, 28, 31 to 33, 40 and 86 of this thresholds. These clauses are an essential part of a fair Act and lay a report of that review before the House of and responsible fiscal approach to fixing the public Commons within six months of the passing of this Act. finances. Clause 5 maintains the income tax personal (2) A review under this section must consider— allowance and the basic rate limit at their 2021-22 levels (a) the impact of those sections on households at different from April 2022 until April 2026. This is a universal, levels of income, progressive and fair measure being taken to fund public (b) the impact of those sections on people with protected services and rebuild the public finances, and it ensures characteristics (within the meaning of the Equality that the highest-earning households will contribute more. Act 2010), Indeed, the top 20% of highest-income households will (c) the impact of those sections on the Treasury’s compliance contribute 15 times that of the bottom 20% of lowest- with the public sector equality duty under section 149 of the Equality Act 2010, and income households. (d) the impact of those sections on equality in different I shall now respond to amendments 2 to 4 and new parts of the United Kingdom and different regions of clause 7, which relates to clause 5. Amendments 2, England. 3 and 4 seek to delay the decision to maintain the (3) A review under this section must give a separate analysis in income tax personal allowance and higher rate threshold relation to the following matters— until April 2023. The Office for Budget Responsibility (a) income tax, forecast that UK GDP will reach its pre-virus peak by (b) employment income, the second quarter of 2022. The Bank of England (c) coronavirus support payments, forecast that it will happen at the beginning of 2022. In (d) pension schemes, the light of those estimates, it is reasonable and fair for (e) investments, and the Government to uphold the start of this policy from (f) inheritance tax. April 2022. Nobody’s take-home pay will be less as a (4) In this section— result of this decision. For most taxpayers, any real-terms “parts of the United Kingdom” means— loss will be very small in 2022-23. I therefore urge the right (a) England, hon. Member for Hayes and Harlington (John McDonnell) (b) Scotland, not to press the amendments to a vote. (c) Wales, and New clauses 12 and 23 would require the Government (d) Northern Ireland; to publish equalities impact assessments for all the and “regions of England” has the same meaning as that used by the Office for National Statistics.” measures in this debate, and new clause 8 would require the Government to publish an equalities assessment of This new clause requires the Chancellor of the Exchequer to carry out and publish a review of the effects of clauses 1 to 5, 24 to 26, existing income tax thresholds. New clause 8 would also 28, 31 to 33, 40 and 86 of the Bill on equality in relation to require the Government to publish distributional analysis households with different levels of income, people with protected on two changes that do not constitute Government characteristics, the Treasury’s public sector equality duty and on a policy—namely, reducing the additional rate threshold regional basis. to £80,000 and introducing a supplementary 50% rate of income tax for income above £125,000. 5.48 pm The Financial Secretary to the Treasury (Jesse Norman): The Treasury carefully considers the equality impacts The Government have delivered an unparalleled package of the individual measures announced at fiscal events of support during the covid-19 pandemic, providing on those who share protected characteristics, in line over £352 billion for public services, workers and businesses. with both its legal obligations under the public sector This response has been fair and balanced, with the equality duty and its strong commitment to issues of poorest households benefiting the most from the equality. The Treasury already publishes comprehensive Government’s interventions. It is now necessary to take assessments of income tax threshold changes. Alongside steps to ensure the sustainability of the public finances the Budget, the Government have published detailed and continue to fund our excellent public services. Our distributional analysis of the decision to maintain income approach to fixing the public finances will therefore tax thresholds, both at a household and on an individual also be fair and balanced. The fairest way to put the basis. The new clauses therefore do little to provide public finances on a more sustainable footing is to ask meaningful additional analysis further to the Government’s all taxpayers to play their part, as well as asking those existing comprehensive publications, and I therefore people able to contribute more to do so. That is why, in urge Members not to press them to a vote. these parts of the Bill, the Government are legislating Clause 28 makes changes to maintain the pensions for freezes to the personal allowance, higher rate thresholds, lifetime allowance at £1,073,100 until April 2026. This the inheritance tax thresholds, the pensions lifetime will limit the pensions tax relief available to those with allowance and the annual exempt amount in capital the largest pension pots and supports the Government’s gains tax. The Government are also making sensible objective of a system of pensions tax relief that is fair, changes to the tax treatment of coronavirus support affordable and sustainable. Clause 40 maintains the payments and exemption-related adjustments to account capital gains tax annual exempt amount at its 2020-21 for the impact of the pandemic. level of £12,300 for individuals and personal representatives Given the number of speakers and amendments, I and £6,150 for most trustees of settlements for the tax will try to keep my remarks relatively brief. Before I turn years 2021-22 up to and including 2025-26. Maintaining to the changes announced at Budget, let me touch on the annual exempt amount at a 2020-21 level is a clauses 1 to 4. These are legislated for every year and are responsible decision, consistent with the decisions that essential for the Government to be able to collect the the Government have taken to maintain the value of the right amount of income tax for the tax year 2021-22. other main allowances over the same period. 697 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 698

[Jesse Norman] put the public finances on a sustainable footing as we continue to move out of the pandemic. I therefore ask Clause 86 maintains inheritance tax thresholds at that clauses 1 to 5, 24 to 26, 28, 31 to 33, 40 and 86 their 2020-21 levels until April 2026. This means that stand part of the Bill. the nil rate band will remain at £325,000 and that the residence nil rate band will remain at £175,000. The James Murray (Ealing North) (Lab/Co-op): I rise to tapering of the residence nil rate band will continue to speak to the provisions standing in my name and those start when the net value of an estate is more than of the Leader of the Opposition and my right hon. and £2 million. Maintaining these thresholds is forecast to hon. Friends. On behalf of the Opposition, I will begin contribute almost £1 billion over the next five years to our detailed scrutiny of this Bill today by considering help to rebuild the public finances, but this approach the impact it will have most immediately and most still ensures that more than 94% of estates will not be widely on people across the UK through its cuts to the liable for inheritance tax in each of the next five years. money that families, in all their many forms, have in Taken together,this Government’s approach to thresholds their pockets. across the tax system is clear evidence of a fair and The opening clauses, 1 to 5, focus on income tax, with consistent fiscal strategy to repair the public finances clause 5 freezing the personal allowance from 2022-23 while continuing to invest in public services. through to 2025-26. That is no small change; the effect Clauses 24 to 26 make minor adjustments to exemptions of the clause will be to make half of all people in the to account for the impact the coronavirus pandemic has UK pay more tax from next year, and that is not the had on businesses and workers. Let me also address one only measure the Government are taking that raids proposal relating to clauses 25 and 26. New clause 11 their pockets. We know that this Bill will make families would commission a review of the changes relating to pay more through the income tax changes next year, but the employer-provided cycles exemption. I am happy to it also does nothing to stop the sharp council tax rise reassure the Committee that the terms of that exemption that the Government are forcing councils to implement have not changed and only a minor time-limited easement right now, it supports the Chancellor’s plan to cut £20 a is introduced by this Bill. It is not therefore necessary to week from social security this autumn for some of those review the changes. Clauses 31 to 33 relate to the who need help most, and of course it comes as the Government’spackage of support payments for individuals Government are choosing, in this year of all years, to and businesses during the pandemic. Clause 31 makes take money from the pockets of NHS workers. changes to ensure that the one-off £500 payment to Sammy Wilson (East Antrim) (DUP): Does the shadow eligible working tax credit claimants announced at Budget Minister accept that the total take in income tax from 2021 is not subject to income tax. This will ensure that individuals across the United Kingdom as a result of the recipients of the tax credit benefit in full and that that one measure in one year will be £10 billion, and the the payment meets its objective of providing additional total take over the next five years will increase by 25%? support to low-income working households. On the basis of the tax paid now, 25% more income tax Jim Shannon (Strangford) (DUP): Has the Minister will be paid collectively by individuals as a result of had any discussion with the Low Incomes Tax Reform simply freezing thresholds. Group, which has indicated to me some of its concerns 6 pm about how Her Majesty’s Revenue and Customs required claims from individuals? It is a delicate matter, but there James Murray: I thank the hon. Member for setting is problem there. Has he had an opportunity to discuss out some of the figures about the impacts of the Bill. I it with the LITRG? can add to that by saying that if we take the freezes to the personal allowances, along with the cuts to NHS Jesse Norman: The hon. Gentleman will be pleased workers’ pay, the council tax hike and the cut to universal to know that I maintain a strong dialogue, through credit, the real scale of the impact of the Government’s officials, and from time to time in person, with the decisions becomes clear. A newly qualified nurse living LITRG and I have no doubt that the input it has given with their partner and two children in rented has been carefully considered in this regard. If he would accommodation will lose more than £1,100 a year. It is care to write to me with his specific concern, I would be plain wrong to hit families across the country in that happy to pick that up as well. way, but that sense of injustice is made all the more It is right that HMRC has powers to tackle fraud and acute by the fact that that increase of costs to families abuse of the self-employment income support scheme comes years before any rise in corporation tax. At the and that the Government provide legal clarity that same time, through the Bill the Government are letting SEISS grants are liable for income tax in the year of tech giants stop paying tax altogether. receipt. Clauses 31 and 32 will allow payments made in Last week, we voted against the Bill on Second support of individuals and businesses by the Government Reading. Our reasoned amendment made it clear that to meet their objectives as far as is possible. Opposition key to the decision was its effect on family finances, amendments 15 and 92 are already comprehensively through what it does and what it does nothing to stop. addressed by existing policy, and I ask that Members do Today, we have the chance to stop the measure in the not press them to a vote. Clause 33 makes changes to Bill that will make every income tax payer in the country ensure that the repayments of business rates relief are pay more next year. We will seek a vote on clause 5, and deductible for corporation tax and income tax purposes. I urge Conservative Members to join us in knocking This ensures that any repayments of support are dealt this attack on families out of the Bill. By doing so, we with appropriately. would allow the Government to come back in their next Taken together,these measures will help the Government Finance Bill with a fairer approach—one that does not to continue to support individuals and businesses through put a misguided tax break for big business ahead of the the coronavirus pandemic, and they will also begin to money that families have in their pockets. 699 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 700

The other clauses that are being debated concern a James Murray: The hon. Gentleman spoke about the range of other matters. Clauses 24 to 26 relate to the super-deduction, but as that will be picked up in the next impact of covid on those benefiting from enterprise debate, I will focus now on the changes that are the management incentives, cycle-to-work schemes and subject of this debate. employer-provided coronavirus tests. Meanwhile, clause Although we know that the Government will be 31 exempts those receiving tax credits from paying making changes that affect different communities differently, income tax on the one-off covid-19 support scheme the crucial point is that we know already what impact payment. Clause 32 clarifies the tax treatment of payments the Government’s policies will have this month, this made under the self-employed income support scheme. autumn and next year. This month, households will feel Clause 33 provides for a relief where businesses repay the hit as the Government force local authorities to covid support payments that are no longer required. raise council tax in the middle of a pandemic, having Finally, clause 28 freezes the standard lifetime allowances broken their promise to give councils whatever was for pensions immediately until 2025-26, while clause 40 needed to help support people through the covid crisis. does the same for the capital gains tax annual exempt This autumn, some of those families who need help amount and clause 86 does the same for inheritance tax will see the Government cut £20 a week off their universal thresholds. credit, hitting them just as other covid support schemes Through our new clause 23, we ask that all the are due to be winding down. This hit will come just measures being considered today are considered for when the Office for Budget Responsibility has predicted their effects on the finances of different households that unemployment will peak at 6.5%—2.2 million across the UK. We want to see a fair, progressive tax people—and this cut takes out-of-work support to its system in this country, so we want the Government to lowest level since the 1990s. be transparent about the effect that their changes will Next year, more than 30 million people in this country, have on people’s lives. The question of how changes including those earning only just enough to pay tax at affect the people of this country should always be the all, will be forced to pay more as the freeze to income Government’soverriding concern when introducing changes tax and personal allowances kick in. It tells us all we to the tax system. need to know about this Chancellor’s priorities that That is why our new clause would require that the families will feel the impact of the Government’s choices Government analyse, review and be transparent about years before businesses face an increase in corporation how their changes will affect households at different tax and at the very same time that some of the biggest levels of income. It would further require Ministers to firms in this country are offered a tax break that the set out how the changes would affect people on the Chancellor himself has boasted represents the biggest basis of age, disability, race, sex and other protected tax cut in modern British history. characteristics, and how they would affect people living We on the Labour Benches believe that our country in different nations and regions of the UK. There is needs a fair progressive tax system. We want to see significant evidence that women, those from black, greater investment in jobs, growth and addressing the Asian and ethnic minority communities, young people long-term challenges that we face. We want to see and disabled people have been disproportionately affected families protected, not forced by this Government to throughout the pandemic. The Budget report itself shoulder the burden while tech giants see their tax bills says: reduced to nil. It is not just the Opposition who oppose “The economic impact of restrictions has not been felt equally. the Government’sapproach. Major international economic Staff in the hardest hit, largely consumer-facing sectors, such as bodies such as the International Monetary Fund and hospitality, are more likely to be young, female, from an ethnic the OECD agree that these tax rises on families are minority, and lower paid.” wrong. The hit to household finance is not only unfair It is therefore indefensible that not one of many supporting but economically illiterate. Taking money out of people’s documents to last month’s Budget statement, nor the pockets now means that they will not spend it in small Bill, was an equality impact assessment. businesses or in local high streets, damaging the prospect Our new clause gives the Government a chance to of a recovery. right that wrong, but while that analysis is vital in We will be voting for the Government to be clear and setting out how different people will be affected by the transparent about the effects of the measures in this Bill Government’s choices, we know already that the biggest on all the different families and households across this and most immediate impact of the changes in the country. While Conservative Members may not want to Bill—and of the Government’s wider policy choices, on support all of our points, I would not be surprised if which the Bill is silent—will be to take money from the some did not feel deeply uncomfortable at the prospect pockets of people across the country this month, this of making families pay more through this Bill. We autumn and next year. therefore hope to offer them a chance to join us in rejecting clause 5, halting this Bill’s plans to make all Andrew Griffith (Arundel and South Downs) (Con): income tax payers pay more from next year and forcing We hear from the hon. Gentleman that his party seeks the Government to think again about the fairer tax to strike out the single largest intervention that will help system our country needs. the recovery, in the form of the super-deduction, which businesses have already told me is mobilising incremental Andrew Jones (Harrogate and Knaresborough) (Con): investment. I would be fascinated to hear his view of I am aware that time is short, so I will keep my remarks new clause 7, which was put forward by many of his brief. recent colleagues, including many of those who were on All of us will have been dealing with constituents the Front Bench, to increase the rate of income tax to facing real financial challenges over the past year. The 55%. What does he think of that? past months have been unprecedented in their impact 701 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 702

[Andrew Jones] draw is that financial responsibility allows Governments to respond to crises at scale. That is what we have just on family finances. People have lost jobs, been on seen here, and that has helped the finances of families furlough, and faced great uncertainty.It has been genuinely across our nation when they needed it most. hard. Yet some sectors have done very well and seen That is also why the economic recovery, with its focus growth, so the economic impact of the pandemic has on growth and investment and on households and fallen very unevenly. The economic consequences have Government, cannot be put off. The personal allowance also landed very quickly, but the response from the measure in the Bill should proceed. We should not listen Treasury was equally quick. We are now facing the next to the Labour party because, quite frankly, its Members stages of the crisis. Over the months ahead, we will be have voted against all the personal allowance increases getting the economy moving again as quickly as possible, in Budget measures over the past 10 years. We need to safely, so that we can get people back into work, and get the focus that we have had on saving lives back on to considering how the Government will pay for all the recovering livelihoods. extra costs they have incurred. As my right hon. Friend the Financial Secretary to Alison Thewliss (Glasgow Central) (SNP): I will speak the Treasury said, economists have predicted that the to new clause 10. This UK Government said they would economy will have fully restarted by April next year. I be led by data, not dates, and the Chancellor has stood think that that is right, based on my own business in the Chamber on several occasions and said he will do experience and on conversations with businesses in my whatever it takes to ensure recovery, yet in this Finance constituency and beyond. It therefore makes sense to Bill he has seen fit to put an arbitrary date on ending start the recovery of the public finances then, and that the furlough scheme. The Labour shadow Chancellor is what some of the measures in this Bill do. The has been critical of the Government’s previous dithering question for me, though, is how to do this fairly and on extending the job retention scheme, so I hope her without choking off the recovery. colleagues will support the SNP’s new clause, which will Let me focus on one measure: personal allowances. protect jobs and workers across the UK. The increases that we have seen in personal allowances New clause 10 would introduce a reporting requirement over the past decade have been a key ingredient in to compare the effect of continuing the coronavirus job helping some of the least well-off in our society. The retention scheme and the self-employment income support allowance has nearly doubled and is one of the most scheme until both 30 September 2021 and 31 December generous in the world. It has been part of the broader 2021. Reports would be required on the specific impacts initiative, which has been a hallmark of the past 10 years, of continuing to both dates on business investment, about making work pay. It is with some caution that we employment, productivity, GDP growth, and poverty. should consider changes, but I will be backing these SNP Members believe that the furlough and self- changes and urge Members to reject the Opposition employment support schemes should be continued for amendment on this measure. It is worth remembering as long as our economy requires them. It is economic that nobody’s take-home pay will be less than it is now, recklessness to confidently predict the end of a pandemic and that this is a measure that builds over time, as will that has thrown us curveballs time and again. Any the pace of the recovery. I note that the right hon. winding down of support schemes should be linked to Member for Wolverhampton South East (Mr McFadden), the numbers of covid cases in the population, with who is not in his place, commented that it is a fairer way proper care taken to make sure that no badly hit areas to raise revenue than some others, and I agree with his are left behind. analysis. We have seen the potential of new variants such as The crisis support packages have been necessary and the Kent and South African variants, with the Indian welcome, but they come with a huge cost. There is no variant causing the country to be added to the red list compassion in letting debts build up for future generations and prompting the Prime Minister to cancel his travel to pay off. There is no stability for Governments in plans just this week. On the variants and support for people failing to tackle deficits. who need tests,I welcome the change to exempt coronavirus tests from income tax, but SNP amendment 93 would Sammy Wilson: While I think we all accept that the seek to extend the income tax exemption for payments current level of debt cannot continue, does the hon. to employees in respect of the cost of obtaining antigen Gentleman accept that, first, by taking £10 billion from coronavirus tests to cover specific antibody coronavirus consumers in the next year as a result of these tax tests, too. There is a wider argument for broadening the allowance freezes and, secondly, because we do not provision to future proof the Bill for future pandemics know what will happen to unemployment once the and other such incidents, so I hope Ministers will give furlough scheme finishes, there is a risk that the freezes the proposal some consideration. this year will impact on the short-term recovery of the Businesses have found themselves in a position of economy? Are they not therefore inappropriate, and having to make payments on VAT deferred last year in ought not the Government to wait to see what happens? the first week of the crisis while we are still in lockdown Andrew Jones: The right hon. Gentleman makes a in the second peak of the crisis, and now the biggest good point, as he always does. I have considered that lifeline supporting our economy is being pulled away point, and I know that the Government have also without any due consideration for the impact on jobs. considered it, but this is about striking a balance between encouraging the recovery and choking it off. Part of 6.15 pm that recovery is ensuring that we have sound public Not only does the SNP want to see a continuation of finances. We have had two supposed once-in-a-century the job retention scheme and the self-employment income events in just over 10 years, and the lesson we should support scheme; we want to see those gaps filled that 703 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 704 the Chancellor knows fine well about. SEISS grants will have stayed the same offer little comfort. This is the be extended to September and extended to cover 600,000 same old Tories returning to form and making brazen more self-employed people, which we welcome, but this spending cuts on the back of the poorest and the most still leaves behind the 2.4 million people who have vulnerable. received zero support from this Government. They should I have said on many occasions that Finance Bills get a never have been left behind. bad rep. They are not boring technical things; instead, People on precarious contracts are in many cases they are an opportunity to take steps towards the type those who can least afford to be without support. I have of society we want. A green recovery and the chance to recently been contacted by constituents who are entitled do things differently are at the heart of our approach to the fourth and fifth rounds of the SEISS but have and our amendments. The SNP’s new clause 11 would been asked to wait, with no money in the bank. I urge require a report comparing the impact of making the Ministers to accelerate this entitlement, to help those cost of a bicycle an allowable expense on self-assessment struggling to get by. Repeatedly and knowingly leaving tax returns, on business investment, employment, large chunks of the population with little or no support productivity, GDP growth, poverty and carbon emissions. is an unacceptable dereliction of duty from this UK This policy proposal makes perfect sense,as it encourages Tory Government in the worst crisis our generation has active travel and reduces carbon emissions. It comes seen, and I am sure that history will not remember them from the Cycle to Work Alliance’sreport on future-proofing kindly for it. the cycle to work scheme, “Unlocking Access for All We have also tabled amendment 92 to clause 31, Workers”. This is the type of policy that sends a clear because we agree that people should not be taxed on the message: if someone wants to take steps to reduce their £500 payment. Incidentally, this also shows, in respect carbon footprint and improve their health, their of the money the Scottish Government wanted to provide Government should support them all the way. Currently to thank health and care workers, that it is possible to the Government provide support only for employees do these kinds of things when the UK Government and not for self-employed people. The new clause would decide that they want to help and make exemptions. We rectify that anomaly and make it fair for everybody. share the concerns of the Low Incomes Tax Reform HMRC could include the cost of a bike as an allowable Group that the rules on this are not yet clear enough, expense on self-assessment forms, to ensure that all and I urge Ministers to provide that clarity and reassurance. workers could participate, regardless of their employment This payment is made automatically by HMRC, but the status. In Scotland we have seen a manifesto commitment provision talks of a clawback where someone who is from the SNP to provide free bikes for school pupils not entitled to it receives it. It is unclear exactly how this who cannot afford them, and to provide grants to will work. Our amendment would ensure that the one-off others. This will give every child the opportunity to £500 payment to certain working households in receipt engage in active travel. The new clause asks the UK of tax credits could be recovered only where it was Government to do their bit by making the cost of a bike found that the individual was not entitled to the payment an allowable tax expense. because they were knowingly concerned in underlying Finally, our new clauses 12 and 22 seek to get more fraud, in relation either to their tax credit award or to evidence on the impact of changes to capital gains tax. the one-off payment. There is very little done to drill into the impact of I do not want to be relentlessly negative in my criticisms decisions made through the Finance Bill. Again, evidence of the Bill, and it is true that there are some details sessions beforehand might be useful, but assessing the which are to be welcomed. For example, I welcome the effectiveness afterwards—particularly the impact in different fact that the UK Government will adopt the Scottish parts of these islands and on the people who live Government’spolicy of increasing the higher rate threshold here—is vital. These assessments are not an add-on or a to ensure that nobody pays more than they would next nice-to-have; they are essential. If the UK Government year. In such uncertain times, any small piece of certainty truly believe their measures to be fair, they should have we can give people is a comfort. The UK Government no fear of that evidence. should follow the Scottish Government’s lead and take Mrs Flick Drummond (Meon Valley) (Con) [V]: Like the extra measure of freezing income tax rates and all Conservative Governments, this is one who believe bands over the next five years. that people should be encouraged to create wealth and Scotland has the most progressive income tax system invest it wisely without undue interference from the in the UK, with more than half of taxpayers paying less state, bureaucracy or taxation for taxation’s sake. The than they would if they lived elsewhere in the UK. By fundamentals of our economy were strong nationally asking those who earn the most to pay a little bit more, and in the Meon Valley as we headed into the coronavirus Scotland has been able to invest more in public services pandemic, and I am confident enough that we are well and deliver a range of benefits such as free prescriptions, set to emerge from it and carry on with good growth. free university tuition and concessionary bus travel. I Although it is not the topic of this segment of the am proud to be part of a party that in Government has debate, I must welcome the announcement in the Budget put public services first and ensured that those who can of the Solent freeport, which will bring jobs and investment least afford it pay less tax. to the whole region, which includes my constituency. In contrast, this UK Tory Government are peering I want to speak to clauses 5 and 28. The pandemic down the barrel of a return to austerity. We are looking has created a major challenge for state finances, and I at a freezing of the personal allowance, which is a tax recognise that the Treasury must cover the cost of the cut by stealth. The lowest earners will be the hardest hit measures it has taken to support jobs and society. The by this policy, and at the same time the Chancellor is two long-running strands of policy covered in these handing super deduction tax breaks to big business. So clauses are the reform of personal income tax allowances much has changed in the last year, but the things that and the lifetime allowance in pension fund accrual. 705 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 706

[Mrs Flick Drummond] and that “500,000 more people could end up in deep poverty (more than The commitment to a £12,500 personal allowance 50% below the poverty line).” featured in the Conservative party’s2015 election manifesto, It goes on to explain that and I am pleased that we are achieving it a year early. “people who were already more likely to be in poverty were most Since 2010, the personal allowance has grown more affected by the economic storm caused by COVID-19: workers in quickly than average earnings, and a huge number of low-wage sectors or part-time jobs, people living in areas with workers have benefited. In announcing a freeze between higher rates of deprivation, families with children, disabled people, now and 2026, we will see some of that eroded—around or those from BAME backgrounds…around 60% of the families £8 billion of income flowing back into the Treasury by who lose out being in the bottom 30% of the income distribution.” 2025-26—and I hope that Ministers will ensure that we It goes on to say that direct the benefits of recovery at the groups on the “60% of all single parent families in the UK will experience this lowest incomes, whom we have done so much to help in overnight cut to their incomes” government already.Needless to say,I will not be supporting when the £20 a week is removed. the Opposition amendment to clause 5. Under the Government’s plans, the cut will happen Another area where I hope Ministers can keep an just as unemployment is forecast to peak. The last time open mind is simplification of our pensions system in anything like this happened in such circumstances was the future, but today I would like to concentrate on the 90 years ago under the national Government of Ramsay lifetime allowance in clause 28. As many other Members MacDonald. It will devastate the finances of a large will have seen in their postbag, this has been affecting number of struggling families. Ministers will find it doctors in the NHS, senior teachers and others in the extremely hard to justify, so I particularly welcome public sector who have taken or considered early retirement today’s reported call by more than 100 Conservative to avoid breaching the cap. As well as creating a situation MPs to make the £20 a week uplift permanent. where the Treasury does not see some of its forecast tax take coming in, it means that in some cases, people have The Resolution Foundation’s“Living Standards Outlook gone back to work as contractors or locums, sometimes 2021” in January said that rising unemployment and filling gaps that have been created by this policy on removing the £20 uplift would push 800,000 adults and pensions. 400,000 children into relative poverty—the biggest annual poverty rise since the 1980s. A Northern Ireland woman The intention behind the lifetime allowance when it told the Joseph Rowntree Foundation: was introduced in 2006 was to simplify a large number of regimes. However, freezing it at just over £1 million “The £20 uplift to Universal Credit has meant I have just about managed to keep my head just above water. I’m living day to day without the tie to the consumer prices index means that trying to pay my bills and keep my house warm for my child. we are seeing some complex reworkings of remuneration Taking this away now or in six months means I will be drowning schemes, and we will see more unintended consequences in debt.” as growing numbers of people look to find ways to A London woman said: avoid the cap. The British Medical Association’s survey … of GPs indicated that almost half of doctors would “We’ve relied heavily on food banks That £20 is often the difference between light and heat or no light and heat. If you consider early retirement to protect their earnings after don’t have gas, you can’t cook.” retirement. While the Budget forecast states that by 2025-26 there will be an additional £300 million of A Leeds man said: revenue, it does not account for other costs that the “I am aware of the extra—if it wasn’t for that I don’t know policy could contribute to. how I would survive. Living on Universal Credit is hard; it’s extremely hard. It is literally living day to day and working out Pension policy generally encourages people to forego where my next food is coming from.” current consumption, so that they can enjoy a higher standard of living later in life. However, the trade-off Twenty pounds a week should not be taken away here is different, and we risk public services having to from people like that just as unemployment peaks. Iain cope without staff or pay for them because they are Porter of Joseph Rowntree told the Select Committee contractors or locums if we carry on eroding the value that the current benefit level without the £20 uplift is of the lifetime allowance. I hope the Treasury will look “at the lowest level since around 1990 in real terms”, creatively at how we can balance ensuring that people and that as a proportion of average earnings, it is the on higher incomes pay their rightful share of tax with lowest ever. Inflicting that just as unemployment is the need to ensure that skilled and experienced workers peaking is indefensible. continue to contribute to the wider public good throughout The principal policy manager at Citizens Advice told their working lives. the Select Committee: Stephen Timms (East Ham) (Lab) [V]: Clause 31 “At the very least, if the uplift is not made permanent, we think relates to the decision to cut the £20 a week uplift in it needs to be in place for at least 12 months while we go through universal credit and working tax credit in six months. I the tricky part of recovery from this crisis.” want to focus my brief remarks on that decision, highlighted I hope Ministers will reflect and, having done so, by my hon. Friend the Member for Ealing North (James decide after all not to make this cut in September. Murray), because it will be key in the impact analyses in new clause 23 and amendment 15. A Work and Pensions Huw Merriman (Bexhill and Battle) (Con) [V]: Thank Committee report in February drew attention to the you very much indeed for allowing me to contribute to Joseph Rowntree Foundation’s finding that withdrawing this afternoon’s proceedings, Dame Rosie. I want to talk the temporary increase about clause 5, on the freezing of personal allowance “will risk sweeping 700,000 more people, including 300,000 more for four years from 2021-22, the resulting amendments, children, into poverty”, which would push the freeze back by a year, and the 707 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 708 general position across the proceedings this afternoon tabled amendments that perhaps owe more to politics with regard to allowances and the freezing or otherwise than to a desire to manage the economy properly will of them. reflect and withdraw them. In the six years that I have been a Member of Parliament, it has been a matter of great pride that we have reduced John McDonnell (Hayes and Harlington) (Lab): With the personal tax allowance. It was half the level that it is the greatest respect for the previous speaker, I think now, since it was raised to £12,500. That is the highest there is a view across the House and in all parties that basic personal tax allowance across all G20 countries we need to manage the economy effectively in the and means that a typical taxpayer is saving £1,200 in interests of everybody. That means addressing the debt tax. More importantly, it has really sent out the message to GDP ratio—of course it does—but the question that work pays. It is no coincidence that, as well as the always arises, “Who bears the burden? Who carries the increase in personal allowance and the introduction of heaviest burden?” I believe that the Bill shifts too much the national living wage levels that we have, we have of the burden on to those who are the least able to bear seen record levels of employment and record lows in it. That is where we disagree, and it is an honest unemployment. It is a great success story. The covid disagreement. pandemic has put all that at risk, though,which is why I I will speak to oppose clause 5 standing part and to find myself in the bizarre position of supporting the support amendment 2, and consequential amendments 3 personal allowances freeze and intending to vote against and 4, which stand in my name and those of a number any amendment tabled by those on the left to delay that of my colleagues. Some of this is about confidence in freeze for a year. Ultimately, if we do not do something politics, which at the moment is receiving a bit of a about our finances, we will do the country a great disservice drubbing. and end up costing individual taxpayers—or non-taxpayers —even more by mismanaging our national debt. In the last general election, the Conservative manifesto pledged: 6.30 pm “We promise not to raise the rates of income tax…This is a tax To be clear, our national debt now stands at £2 trillion guarantee that will protect the incomes of hard-working families —a position never seen outside the two world wars, and across the next Parliament.” the equivalent of £30,000 for every man, woman and Clause 5 breaches that pledge; incomes are not protected. child in the UK. That is the highest debt to GDP ratio More of people’s incomes will be hit by income tax. It is since 1962. Some on my side of my party think that especially harsh on the millions of public sector workers does not matter, because rates are low and we can just who have faced from this Government: first, a pay keep on borrowing at those levels; indeed, their opinion freeze; a 5% rise in council tax; and now a stealth rise in is shared by some on the other side of the House. We their income tax. These people are low earners who struggle have to be incredibly careful, though, because we are to make ends meet as it is. Low earners are heavily very vulnerable to surprise rises in interest rates and indebted. Some have been furloughed, losing 20% of their inflation. In a recent analysis of manufacturers in our income for a year. Now they are being hit by a stealth rise supply chains, 47% said that they expected the cost of in income tax that was not pledged at the last election materials to rise this year. That could lead to inflationary and that any fair reading of the Conservative manifesto pressures. A rise of 1 percentage point across all interest would have thought was completely ruled out. rates would add £25 billion to the servicing of our debt. That is what concerns me the most, because ultimately The Labour party also stood on a manifesto that said that debt has to be paid back. It already exceeds the there would be no rise in income tax for 90% of earners, amount we spend on schools, and if it increases we will and has recently said that now is not the time for tax spend less on schools, less on our hospitals, and we rises. I hope that Members across the whole House will could end up with taxes rising even higher. The freezes stand by their commitments at the last general election introduced by the Government have been recognised by and oppose clause 5. This would allow the threshold to the Institute for Fiscal Studies as a sound way to deliver rise with inflation, as legislated for way back under the without causing so much hurt to the wider economy last Labour Government in the Income Tax Act 2007. and to the individuals who have an unwelcome freeze Low pay is endemic in our society. In 2015, the then put upon them. Chancellor, George Osborne, promised a £9 minimum For those of us on the Government Benches who wage by 2020. It is 2021 and the minimum wage is still have always been proud as we reduced the tax take and below that level. Let us look at an example. We know increased personal allowances, and saw increased that half of all care workers earn less than the real living employment and economic growth, this goes against wage and the majority of children are living in working the flow, but the most important thing for me and the households. What does that say about low wages? The reason I came into politics is to make sure the Government last thing any Government should be doing is raising run the economy well, so that everyone benefits and we taxes on low-paid workers,especially when that Government achieve stable economic output, which allows our public have broken their promises on raising wages and have services to expand as well. If we do not do something failed to reach the target they set for the minimum wage. along the lines that the Chancellor has set out and make Some Members may recall the Rooker-Wise amendment; these brave calls, which are absolutely necessary although it was a long time ago—44 years ago. That amendment of course they are not popular, we will not only put at overturned a similar proposal from the Callaghan risk the national interest but lose our party’s reputation Government. With many low-paid workers not getting for economic management. a pay rise and facing mounting household debts, we I support the Government’s measures. I hope that, should not be taking more of their income in tax. given time, they work and we can get back to where we With high street retail needing an urgent stimulus, there were in past years. I hope also that those who have cannot be a worse policy than removing demand from 709 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 710

[John McDonnell] of those who found their revenues increased as a result of the unusual trading conditions of the last year. This the economy at this time. That demand is really created would have been a far more equitable route to raising by the people—these are the people who will spend, not income than putting the burden on hard-working families. hoard. On clause 28, I urge the Chancellor to carefully If the House is not minded to leave out clause 5, consider the impact on NHS pensions of freezing the perhaps the Government can compromise and accept lifetime pension allowance. I have heard a few stories amendments 2, 3 and 4 in my name and those of other from constituents about how this measure interacts hon. and right hon. Members. These amendments would with their final salary scheme. While a figure of a little ensure that the stealth tax on working people was over £1 million would rightly strike most as more than delayed until 2023-24—the same year that the corporation sufficient as a tax-free pension pot, senior doctors in the tax rise kicks in. Low-paid workers should not be hit NHS are finding it extremely difficult to assess whether with an extra year of tax that the corporations are not or not their overtime will result in their yearly calculation hit with. of their lifetime allowance being tipped over the threshold Another point that I hope the Government will consider and result in a current tax bill. The British Medical incorporating into the Bill before Report stage is the Association estimates that the number of GPs taking case for equalising capital gains tax rates with income early retirement has tripled over the past decade and tax rates. Ahead of the Budget, I was heavily briefed puts this down partly to the uncertainty about their tax that this was being considered by the Chancellor. It is bills. manifestly unfair that income derived from wealth is It is worth noting that when the lifetime allowance taxed at a lower level than income derived from work. I was first introduced in 2006, it was set at £1.5 million, hope that the Government will look at this issue ahead rising to £1.8 million in the financial year 2010-11. of Report stage. I urge the Government to consider Since the Conservatives came to power, it has reduced accepting amendments 2, 3 and 4 at a bare minimum— every year to the current level of only just above £1 million. better still, leave out clause 5 altogether. Do not force Like the freezing of the personal allowance, this has the the lowest paid in our economy to shoulder what could impact of catching more ordinary people in the taxation be the heaviest burden. net, and again we see that the Chancellor wants to raise money off the back of hard-working NHS frontline Sarah Olney (Richmond Park) (LD) [V]: I wish to workers while protecting profitable corporations. speak to clause 5 relating to the changes in personal This issue has been a problem for doctors for the last income tax allowances and to clause 28 relating to the few years, so the Government have no excuse for not freezing of the lifetime allowance on pension pots. knowing that the freezing of the pension lifetime allowance There is no doubt that the last year has made would make the situation worse. Have the Government unprecedented demands on the public purse, and it is carried out an impact assessment of the measure on right that the Government should be prepared to take NHS retention of senior staff? I am extremely concerned, difficult decisions on taxation as we move forward, as at this time when our senior NHS staff are exhausted we all very much hope, out of the pandemic and into and facing a huge backlog of elective surgery, that the changed world beyond. However, the Government skilled staff should not feel compelled to take early made clear commitments in their 2019 manifesto that retirement because of an unintended and avoidable tax they would not raise income tax on working families consequence. and they have broken that commitment in this Bill. The The Finance Bill seeks to tax hard-working families freezing of the personal allowance and the higher tax and penalise those who have been working so hard to bands means that more working people will pay tax and keep us all safe this year, and the Liberal Democrats at higher rates than they would otherwise have expected. cannot support these measures. Clearly the Government are banking on a consumer-led recovery and this tax burden on working families will Matt Rodda (Reading East) (Lab): I want to offer my reduce the amount of discretionary spend available to support to the shadow Minister, my hon. Friend the households, limiting their ability to spend on consumer Member for Ealing North (James Murray), who put his goods. As housing costs increase to their highest ever case very fairly. I want to illustrate what that means in levels, household budgets will continue to be squeezed, my constituency of Reading East and perhaps develop and piling additional tax charges on top will create an some of the points he made. enormous burden for those who are already struggling I particularly want to raise the growth in the use of to make ends meet. It is a particular insult to those in food banks, which has been very significant across the our NHS, who have sacrificed so much to keep us all country, and our area is typical in so many ways, as safe this year and have been told to expect only a 1% indeed it is in many instances. The growth in the use of pay increase for their trouble. Our nurses will have to food banks illustrates why the Budget was such a complete give back more of that 1% in tax than previously failure, because the Government failed to offer real help despite all that they have already given. This is particularly to many families. In particular they offered very little to galling when compared with the Government’s decision those in the greatest need, as we heard from the shadow to delay a corporation tax increase. The Government Minister, and very little to those who are self-employed have chosen to tax hard-pressed frontline workers first and have recently set up a small business.Indeed, the3million and large, profitable corporations later. Only those campaign group rightly pointed out that, although a companies that have remained profitable throughout small number will benefit from some measures offering the pandemic would be paying corporation tax next further support for recently set-up small businesses, year, which is why an immediate increase in corporation most will not, and that has been widely recognised in tax could have captured the windfalls or excess profits my constituency. 711 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 712

Before going into the detail of local food banks, I when it is really impossible for their expert advisers and want to thank all the volunteers at our local council in other economic forecasters to give them a clear steer of Reading and many others, both businesses and individuals, what the public finances will look like in two years’ who have helped support food banks by generously time, let alone in three or four years’ time. giving their time and putting the community and others The Government seem to think that their experts can first at what is a very difficult time for so many people. I define a given amount of money that will be a shortfall have tried to keep in touch with the pressures by going in order to hit their longer-term Government targets, to help myself and to receive regular briefings from and therefore say that we need to make these tax changes food banks and other charities, and I want to describe for the next few years in order to fill the alleged black to colleagues what this is like. hole. It may be that they are trying to fill a hole that does not exist. It may be that we will have a much better 6.45 pm recovery than the forecasters are thinking. It may be that the economy responds much better over the next As many people know, Reading is a town in the south two or three years or, indeed, over the next two or three of England. It is relatively well-off; we are lucky to be in months, as the relaxations kick in. an area with quite a high level of employment and many advanced industries, such as IT. It is fairly safe to We can see the difficulty that the official forecasters say that lots of people have fairly good jobs, but many have if we look at the numbers they gave us as recently people are under great pressure. I have helped in a as November 2020. Then, the OBR, forecasting the number of food banks, and I want to draw the attention budget deficit—the amount of extra borrowing—for of the House to one in particular. It is in the suburb of the year 2020-21, said that it would be £394 billion, an Woodley, a typical suburb on the edge of a large town, enormous amount. Bear in mind that it was having to full of relatively well-off families. I had to deliver food forecast for only four months, as two thirds of the year parcels; behind the front door of neat houses in suburban had already gone. When we got the 11-month figures, areas was real poverty caused by the pandemic. Families up to February, recently, we discovered that they had are under real pressure and the gratitude that people come in at just £278 billion and so, subject to what have when they receive food parcels is quite overwhelming. happened in March, it may be that the OBR was the I want to make that point, because it is important that best part of £100 billion out on the deficit for the year in people across the House understand what the pandemic question when it tried to forecast, already knowing is like for ordinary people around the country. Indeed, quite a lot of what had happened. It was, of course, this is just one example. There are people in far greater massively too pessimistic. It is great news that we will need who need greater help. have borrowed so much less than we feared, although clearly we are still borrowing far too much on an I wanted to make that point and express my own unsustainable basis, which is why we need to promote a gratitude to those who help in the voluntary sector, and strong recovery to get the deficit down. to remind people what clause 5 and the other clauses are really about. They are about families struggling in I therefore say to the Government: let us show a little trying and difficult circumstances through no fault of humility. The experts and advisers are not able to give their own. I know that the Minister is a very decent us anything like accurate figures—I can sympathise man, and I urge him to rethink and lobby his colleagues, with them, because extreme things have happened in particularly the Chancellor, who, I am afraid, has a bit response to the pandemic—so are we sure that we need of a habit of dashing in with some very warm words but to make these moves over the next three or four years? could perhaps look further at some of the detail. Families There is also a case for showing a bit of humility and need that help at this difficult time. thinking ahead about whether we might need to show a bit more flexibility because the Government themselves Seema Malhotra (Feltham and Heston) (Lab/Co-op) have rightly said, now that we are out of the European [V]: [Inaudible.] Union and the economic world has been stood on its head, that they want to set out a new framework for The First Deputy Chairman: We are having some guiding the economy. I encourage them to do that, and difficulty hearing Seema Malhotra, I am afraid. Do you I hope it is a framework that promotes growth and want to try again, Seema? considers real issues such as the increase in the number of jobs, the rise in real incomes and the productivity Seema Malhotra: [Inaudible.] growth that can be achieved. We need to get away from the Maastricht criteria, The First Deputy Chairman: I think what we should which have governed our policy for many years and still probably do is go to our next speaker and come back to seem to be behind the architecture of this Bill. We seem Seema. We will go now to Sir John Redwood. to be driven by the need to get state debt falling as a percentage of our national output by the end of the John Redwood (Wokingham) (Con) [V]: Dame Rosie, period that we are talking about today for the tax I have declared my business interests in the register. changes. State debt is now a pretty useless figure to try Of course, I am not going to vote against this Budget to target in the way that the Maastricht criteria did. We and I wish the Government well with it, but I would like now live in this age of monetary experimentation, where them to pause a little, think through where we are and great banks such as the Bank of England, as well as the recognise that they may need to revisit some of these European Central Bank, have bought in very large decisions in the months ahead. My worry is that they quantities of state debt—indeed, they still are doing so. are being too tough in their tax measures and too tough Surely, where that happens in a single sovereign country on people’s incomes at a time when we need to build with its own central bank, owned on behalf of the confidence and recovery, and they are doing so at a time taxpayers by the state, we should treat the debt that we 713 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 714

[John Redwood] In short, trickle-down economics has been a lie. Now is the time to acknowledge that and address it by have bought back in rather differently from the debt on creating a fairer tax system. My amendment calling for which we owe money by way of interest to people a new 55% income tax rate would target those on very outside—some our own citizens, some foreigners—who high incomes of over £200,000 per year—the richest have been financing the Government. That makes state part of the top 1%, or about 300,000 people. The debt a very difficult number to use to guide the economy. current highest income tax rate is just 45% for those Of course, the future system must have some control earning above £150,000—not much more than for those over the build-up of actual interest charges that we have earning £50,000. Yet 40 years ago the average top to pay to third parties, but it should concentrate much income tax rate for the wealthy OECD member countries more on promoting growth. was 62%. The top income tax was 60% even under May we therefore have just a few words from the Margaret Thatcher, so perhaps even the Thatcherites on Government, accepting that these numbers are very the Government Benches will consider offering their difficult and that the current forecasts are likely to be support for the amendment. This increase would affect very wrong? No one can say exactly how wrong they are less than 1% of the population—about 200,000 people, going to be, because so many things will happen over according to HMRC. the next two or three years and nobody has been There has been huge suffering in our society over the through a bounce back of the kind of pace that is past year, yet the very wealthiest in our society—the possible from such a big hole in our economy, created billionaires and the super-rich—have exploited this crisis by necessary health measures to cure the pandemic. to further line their pockets. We cannot go on layering We need a policy that is very supportive of more jobs, inequality on top of inequality. Now is the time to act. of higher incomes and of encouraging investment, Publishing an assessment of the effect on tax revenues enterprise, saving and, above all, self-employment and of introducing a 55% income tax rate on income over more small business activity. My worry is that the £200,000 would be an important stepping-stone towards Government are being a bit mean with people and with building a fairer and better society. That is why I would small businesses in the name of controlling state debt at like to press my new clause 7 to a vote. a time when we have no idea what the state debt will be in two or three years’ time, and when the state debt number is now very different because of the purchase of Bell Ribeiro-Addy (Streatham) (Lab) [V]: I speak in state debt by the state itself. support of amendment 15 and new clause 8 in my name, and amendments and new clauses in the names I would hope that the Government recognise that we of my right hon. Friend the Member for Hayes and may need to revisit all this, and I would want them to be Harlington (John McDonnell) and my hon. Friend the on the side of people keeping more of the money they Member for Leeds East (Richard Burgon). earn and, above all, of a much better deal for small business and the self-employed, where I think they are My amendment 15 is tabled with the aim of highlighting too tough. the importance of the so-called £20 uplift for tax credit recipients from the covid-19 support scheme, and the damage that the Government’s decision to not continue The First Deputy Chairman: We are having one or this beyond September will cause. In March 2020, the two technical issues, so we will go straight to Richard Chancellor announced a temporary uplift of £20 per Burgon. week to universal credit via the standard allowance of the working tax credit basic element for the 2020-21 Richard Burgon (Leeds East) (Lab) [V]: I wish to financial year. A one-off payment is being made to tax speak to my new clause 7, which would require the credit recipients to cover a six-month period from April Government to publish an assessment of the effect on to September 2021 to continue this support. tax revenues of introducing a 55% income tax rate on As Members will know, payments from the covid-19 income over £200,000. support scheme for working households receiving tax The coronavirus crisis has not only shone a spotlight credits are being introduced under the Coronavirus Act on the deep inequalities in our society and their deadly 2020. Clause 31 introduces an exemption from income consequences, but deepened them. Deep inequalities tax for payments made to tax credit recipients. My scar our nation. As we come out of this pandemic, if we amendment 15 would require the Government to publish are to learn the lessons and build a more equal, less an equalities impact assessment of the provisions of divided and more inclusive society, then we need to clause 31, which must cover the impact of the provisions address decades of failing tax policy. Ensuring higher on households at different levels of income, people’s taxes on those on the very highest incomes has an protected characteristics, equality in different parts of important role to play in building that fairer society. the United Kingdom and regions of England, and child Since Thatcher, the Tory mantra has been that low taxes poverty. That is because while the £20 per week top-up on the rich benefit everyone, but years of keeping taxes will temporarily be retained, helping some 6.5 million low for the very rich did not in fact boost economic families for a further six months, this does not allay the growth; instead, it allowed inequality to run completely fears that families will have going into next winter. out of control. That has been proven by new research Rather,it is clear to almost everyone—Action for Children, by the London School of Economics and King’s College Child Poverty Action Group, Save the Children, the London showing that reducing taxes on the rich leads Joseph Rowntree Foundation, the trade union movement to higher income inequality that has an insignificant and so on—apart from the Government that the effect, in any positive fashion, on economic growth or £20 increase and the associated tax relief, as per clause 31, unemployment. should be made permanent and paid to all claimants, 715 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 716 given that poverty levels were already too high pre- pandemic. The top fifth of earners saved money at a pandemic. Extending the £20 uplift is vital because faster rate than before lockdown after their outgoings struggling families cannot keep afloat without it, but reduced by 41%. Truly progressive taxation that ensures that will be as true in six months as it is now. the rich pay their fair share is crucial for the delivery of equalities and women’s rights in particular, as women 7 pm tend to rely more on public services that are funded by Action for Children estimates that 2.5 million families taxes. Because of women’s and men’s different income with children currently on universal credit and working and spending patterns, regressive taxes tend to hit women tax credit will miss out on a combined total of £1.3 billion the hardest. across the next financial year. Statistics from March Similarly, given that deep economic inequalities persist show that just over half of all children in poverty were between white and black, Asian and minority ethnic in families with the youngest child under the age of five people and their households, we have to ensure that our and 47% of children in poverty were in families with tax system is not a driver of racial injustice. Unfortunately, three or more children. According to those figures, the the pay gap between white and black and Asian number of children living in relative poverty after housing communities is entrenched in the UK approach to tax, costs rose from 4.1 million in 2018-19 to 4.3 million in which on the whole favours higher earners. To tackle 2019-20. That amounts to 31% of all children in the this inequality in our society we need to look at addressing UK. In comparison, 3.6 million children were in poverty the fact that, as previous research has shown, top earners just 11 years ago. Deprived families have fallen deeper are overwhelmingly white and male and more likely to into poverty, with 2.9 million children considered to be be based in London and the south-east. We need to in deep poverty. address those inequalities sooner rather than later. What an indictment of this Government’s economic record. Years of austerity, welfare cuts, benefit changes Seema Malhotra [V]: In my limited remarks, I want to and cuts to public services have disproportionately affected support the arguments made by my hon. Friend the children, women, disabled people, and black, Asian and Member for Ealing North (James Murray), and to minority ethnic communities, a fact repeatedly outlined speak in support of Labour’s new clause 23, to which I by many civil society organisations. On top of that, have added my name,seeking an equality impact assessment experts have warned that child poverty will rise even of the measures in the Bill that affect family incomes. further after the pandemic. What has the Government’s This includes the impact of specified sections of the response been? An offensive and factually redundant legislation on households at different levels of income, report on race and ethnicity that on people with protected characteristics, and across the “repackages racist tropes and stereotypes into fact, twisting data regions and nations of the UK. and misapplying statistics and studies”. About 700,000 people have lost their jobs since February Those are not my words, but the shocked comments of last year, and many more families have seen a drop in a United Nations working group. their household income. Over 39,000 are now on universal It is therefore no surprise that the Bill falls short on credit in Hounslow alone, and we have seen a huge rise tackling poverty and inequality. This is why it is crucial in the use of food banks. There is no doubt about the that we make sure we have a fair and equal recovery importance of financial inclusion at this time. The coming out of the pandemic, with those with the broadest Financial Inclusion Commission, on which I sit, has shoulders paying their fair share. Progressive and fair highlighted how there are now millions more people taxation, as evoked by new clause 7 in the name of my facing economic hardship as a result of the covid-19 hon. Friend the Member for Leeds East and new clause 8 pandemic. However, the UK entered the crisis with half in my name, is crucial to that fairness. These progressive its population financially vulnerable: 12 million categorised tax new clauses are about encouraging a discussion on as financially struggling or generally on low incomes, the kind of society we want to be in. My new clause 8 would and 13 million as financially squeezed. Covid has laid require the Government to publish an assessment of bare existing weaknesses, vulnerabilities and structural “the effect of reducing the income tax threshold for the additional inequalities, and StepChange research shows that 10% rate to £80,000”. of people say they will certainly or probably be unable This is a reference to commitments in the 2019 Labour to pay for essentials in the next 12 months. party manifesto to reduce the 45p additional rate threshold We know child poverty, already extremely high, is to £80,000, covering the top 5% of income tax payers, rising, so it is inexplicable,when the Government themselves raising billions but not increasing further the burdens have said in the Budget report that the on the majority of people.With the International Monetary Fund now arguing for increases in taxation for those “economic impact of restrictions has not been felt equally”, who have made huge profits from the pandemic, this is that they have not themselves published an impact yet another area in which the Labour party manifesto assessment. It should not be for the Opposition to table has been shown to have been leading the way politically. this vital amendment. It seems that instead of taking Fair taxation is one of the building blocks of communities, action to boost our community recoveries,the Conservatives in part because it supports investment in the public are choosing to reward families up and down the country infrastructure and services on which we all rely.Progressive for their sacrifices with council tax hikes, the freeze to taxation means, plain and simple, that those with more the personal allowance from next April a whole year means contribute relatively more. before corporation tax rises kick in, a real-terms pay cut Last October, IFS research revealed that the wealth for key workers and cuts to universal credit later this gap between poor and rich families in the UK has been year, a move now even opposed 100 Tory MPs. exacerbated by the pandemic, and that owing to their Even when the Chancellor has done the right thing, higher incomes and higher spending habits richer such as extending furlough, as Labour called for, these households have invariably become richer during the moves need to be underpinned by a strong social security 717 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 718

[Seema Malhotra] Further councils, whose budgets have been decimated over recent years, will be forced to increase council tax system that provides support when people need it. People by up to 5%, pressuring household budgets even further, need to be protected from financial exclusion and families so the Bill is already sorely deficient in honouring the need a clear route out of financial difficulty when they Chancellor’s original promise. However, in clause 5—the are struggling. The Chancellor could also look at how proposal to freeze the personal tax allowance—the promise Sadiq Khan is working to promote financial inclusion is sadly contradicted entirely. The reality of the clause is through partnership with the financial sector, social that, if there is wage inflation over the next five years, enterprises and credit unions, and at his plans for a new someone earning just under the threshold now, for team dedicated to economic fairness. example, who then receives an inflationary pay increase But instead of economic fairness, what we know is for 2022-23 will start to pay tax. coming is the £20-a-week cut to universal credit for As the Resolution Foundation has found, the poorest millions of families within six months, just when the fifth of households are twice as likely to have seen their OBR predicts that unemployment will peak. It is a cut debts rise rather than fall during the crisis, so taking that takes out-of-work support to its lowest levels since the some of those lowest earners beyond the personal allowance 1990s. That is why Labour has also called for urgent social threshold as their wages might slightly increase with security measures, including converting universal credit inflation could result in their financial devastation. I advances to grants instead of loans, ending the five-week therefore supported calls to remove clause 5, or at the wait, suspending the benefits cap and uprating legacy very least for the Government to compromise and delay benefits to match the increase in universal credit. About the changes. 2.2 million people on legacy benefits have been deprived I will also briefly mention clause 32 on self-employment of the uplift, and given that three quarters of those income support. I do not disagree with the sentiment of claimants are disabled and on employment and support the clause but, as the Government know, the support allowance, this has created a two-tier social security still does not go far enough. More than 2 million remain system that has left many struggling to cope. Evidence excluded from any Government support at all and, as I from the Disability Benefits Consortium found that have repeatedly told this House, some have sadly taken 67% of disabled claimants have had to go without some their own lives as a result. I once again urge the Government essential items at points during the pandemic. to provide an immediate emergency grant to those Minority ethnic communities have been hardest hit affected, install new monthly arrangements while restrictions by both the health and economic crisis. The Resolution remain in place in complete parity with the extension of Foundation found that, at the end of last year, the coronavirus job retention scheme and the self- unemployment among young black graduates had risen employment income support scheme, and remove the to 34%, up from 22% before the pandemic, and almost hard edges to eligibility criteria. Finally, they should three times that of young white graduates during the backdate payments for a full and final settlement to same period. StepChange research also shows that those deliver parity and fairness for those excluded from from an ethnic minority are twice as likely, compared meaningful support. with the GB average, to say that they have experienced hardship, borrowed to make ends meet or have run Jim Shannon: It is a pleasure to serve under your down savings. chairmanship, Ms McDonagh. I very much welcomed In conclusion, the Chancellor is hitting families up the Minister’s response when I asked him about the and down the country, with a quadruple hammer blow Low Incomes Tax Reform Group. I will send him all the of council tax rises, cuts to universal credit, real pay information that I am concerned about, which I hope cuts for key workers and the freeze to the personal he will be able to answer. allowance. If the Chancellor wants to work for a fairer Clause 31 ensures that the one-off £500 payment for Britain and build a more inclusive and financially inclusive certain working households receiving tax credit is not economy, he needs to know who his policies are helping taxable, which is welcome. The problem arises when a and who they are not. That is why we need an impact person receives a payment that they were not entitled to assessment, as called for in new clause 23, and the under the rules. As the payment is made automatically Government should support it today. by HMRC without requiring a claim from the individual, if HMRC mistakenly makes a payment to someone Rebecca Long Bailey (Salford and Eccles) (Lab) [V]: I who is not entitled to one under the direction and it is speak to oppose clause 5 stand part, and in support of not subsequently repaid, it appears that the tax credit amendments 2, 3 and 4 in the name of my right hon. Friend claimant will automatically be subject to a tax charge the Member for Hayes and Harlington (John McDonnell) under the Finance Act 2020. That triggers notification and others, as well as amendments in the name of my requirements for the individual, assessing powers for hon. Friend the Member for Streatham (Bell Ribeiro-Addy) HMRC and potential penalties. and amendments from the Labour Front Bench. I would like to understand whether consideration has The Chancellor committed to doing whatever is necessary been, or will be, given to ensuring that HMRC will set to support people and businesses through the coronavirus the bar high in terms of what constitutes fraud, and pandemic. I want to believe him, but the £20 a week whether it will be limited to those people who fall under covid uplift to universal credit will be cut just at the time section 35 of the Tax Credits Act 2002, in relation to when the OBR has predicted that unemployment will their underlying tax credit award. Over the last period, peak. There has been no uplift at all, as we have heard, you, Ms McDonagh, I and everyone in this House has in covid support for those on legacy benefits or affected seen young families on the brink of financial collapse—in by the benefit cap. At the same time, an equivalent cut particular, in my office, due to the inconsistencies of the in working tax credit for households that have not yet working tax credit as between those who are self-employed made the move to universal credit will be imposed. and those whose annual pay packs are constant. 719 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 720

Briefly on clause 32, I highlight the fact that taxpayers The right hon. Member for Hayes and Harlington who have made amendments to their self-assessment (John McDonnell) described the tax measures in the tax returns on or after 3 March 2021 may have to pay Bill as a stealth tax rise. It is an interesting version of a back some or all of the grants that they have claimed. stealth tax rise that is announced in a Budget statement There is a real concern, which I share, that unrepresented at the Dispatch Box in the House of Commons. He was taxpayers may not be aware of their obligations to right when he said earlier that there was an honest notify HMRC and, accordingly, may face penalties, disagreement here, and that is what there is. The inadvertently and perhaps without right. Minister, how Government’s view is that there should be a progressive, will we ensure that HMRC will take steps to ensure that broad-based approach to fixing the public finances that taxpayers become aware of any obligation to repay in begins at an appropriate time once the recovery is under time to avoid such penalties? In particular,it is unsatisfactory way, and that remains the case. that taxpayers who have made amendments on or after The hon. Member for Richmond Park (Sarah Olney) 3 March 2021 but prior to the date of the claim appear declaimed the delay in the corporate tax rise. I remind to be obliged to pay back some or all of the grant her, since everyone is widely quoting the Resolution immediately upon receipt. Some may be unaware that Foundation, that it said that the Government they have to do so, but they face harsh penalties, which were originally aimed at fraudulent claims or for failing “rightly sought to boost the recovery before turning to fixing the to do this on a timely basis. So I am concerned that public finances”— innocent participants in this process may find themselves and it was right. She was opposed to the measures in difficult times. relating to the freeze on pensions in the Bill and appealed to the experience of ordinary people. Since the amount 7.15 pm in question is over £1 million and the average financial At this time, we are often telling people to be patient savings in this country are something under £7,000, and with our schemes to give us time to put them together since the lifetime allowance is itself seven times the and to be understanding as we iron out the kinks. We median pension pot, I think that she is not using a are in unprecedented times, but we need to get it right definition of ordinary people that will be shared by for all taxpayers. I am concerned that this Bill does not Members of this House. give the ordinary person the benefit of the doubt enough My right hon. Friend the Member for Wokingham in the matters I have referred to. It does not allow them (John Redwood) talked about the uncertainty involved, time to understand the obligations and know what the and he is right. We are coming out of a pandemic. next steps to take are. In this House, we must legislate to There is a degree of uncertainty in the economic situation. ensure that the ordinary taxpayer knows where they That is why the Government have delayed, in the way stand, what direction to take next and the advice that is that the Resolution Foundation has applauded, raising necessary, which they need to have available, too. There tax on corporations in order to start to restore the needs to be greater clarity on those matters in the Bill. public finances. That is why it is right that we have taken a fair and balanced approach to this topic. Jesse Norman: It has been a good debate and I thank all Members who have taken part. Let me pick up some The hon. Member for Leeds East (Richard Burgon) of the key themes that were described, one of which is spoke in support of his 55% tax rate—not a view shared the impact on taxpayers of the measures the Government by the Labour Front Bench. I remind him that HMRC have taken to address and fix concerns about the public ran a study of the 50% tax rate a few years ago and finances. discovered that it was inefficient, raised far less than The hon. Member for Ealing North (James Murray) had been expected and was distorting tax behaviour. raised this issue.As he will be aware from wider conversation That is not a good recipe. and scrutiny, the Bill places a burden of £40 a year on The hon. Member for Streatham (Bell Ribeiro-Addy) the average basic rate taxpayer and no increment in take was concerned about the progressivity of these measures, home pay. We think that a balanced and fair approach but, as she will see if she looks closely, both the UK tax is one that is widely based and progressive. As I indicated, system at the moment and the changes themselves are the top 20% of tax-paying households pay 15 times that highly progressive. of the bottom 20%. He was asked by my hon. Friend the Member for Arundel and South Downs (Andrew The hon. Member for Strangford (Jim Shannon) raised Griffith) whether he supported new clause 7, which the question about the risk of fraud in schemes. Of would raise tax to 55%, and his was an eloquent silence course, he is right to note that. He had some concerns in response. I would be interested to hear in the next about reclaims in the self-employment income support debate whether he does support new clause 7’s bid to scheme. All I would say is that the scheme is well raise the top rate of income tax to 55%, but I will come understood. It is very widely publicised. Guidance has to that later. been available on the internet and in many independent bodies for many months. If people have claimed income The hon. Member for Glasgow Central (Alison Thewliss) support through that scheme for which they are in fact raised the question of antibody tests. As she will be not eligible, it is appropriate to reclaim the sum overpaid. aware, antigen tests, which are subject to the relief in the That is the principle that we seek to apply elsewhere in Bill, are connected to employment, whereas antibody the tax system because it, too, is a fair and equitable tests are not, which is why the relief does not extend to one. them. It is, however,fully open to the Scottish Government, who have capacity to raise tax revenue themselves, to Question put and agreed to. fund antibody tests if they so choose. She has raised the Clause 1 accordingly ordered to stand part of the Bill. issue and we can assess whether the Scottish Government wish to follow her lead in funding those tests. Clauses 2 to 4 ordered to stand part of the Bill. 721 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 722

Clause 5 Garnier, Mark Kwarteng, rh Kwasi Ghani, Ms Nusrat Lamont, John BASIC RATE LIMIT AND PERSONAL ALLOWANCE FOR Gibb, rh Nick Largan, Robert FUTURE TAX YEARS Gibson, Peter Latham, Mrs Pauline Question put, That the clause stand part of the Bill. Gideon, Jo Leadsom, rh Andrea Glen, John Leigh, rh Sir Edward The Committee divided: Ayes 356, Noes 224. Goodwill, rh Mr Robert Levy, Ian Division No. 261] [7.23 pm Gove, rh Michael Lewer, Andrew Graham, Richard Lewis, rh Brandon AYES Grant, Mrs Helen Lewis, rh Dr Julian Adams, Nigel Clarke, Theo Gray, James Liddell-Grainger, Mr Ian Afolami, Bim Clarke-Smith, Brendan Grayling, rh Chris Loder, Chris Afriyie, Adam Clarkson, Chris Green, Chris Logan, Mark Ahmad Khan, Imran Cleverly, rh James Green, rh Damian Longhi, Marco Aiken, Nickie Coffey, rh Dr Thérèse Griffith, Andrew Lopez, Julia Aldous, Peter Colburn, Elliot Griffiths, Kate Lopresti, Jack Allan, Lucy Collins, Damian Grundy, James Lord, Mr Jonathan Amess, Sir David Costa, Alberto Gullis, Jonathan Loughton, Tim Anderson, Lee Courts, Robert Halfon, rh Robert Mackinlay, Craig Anderson, Stuart Coutinho, Claire Hall, Luke Mackrory, Cherilyn Andrew, Stuart Cox, rh Mr Geoffrey Hammond, Stephen Maclean, Rachel Ansell, Caroline Crabb, rh Stephen Hancock, rh Matt Mak, Alan Argar, Edward Crosbie, Virginia Hands, rh Greg Malthouse, Kit Atherton, Sarah Crouch, Tracey Harper, rh Mr Mark Mangnall, Anthony Atkins, Victoria Daly, James Harris, Rebecca Mann, Scott Bacon, Gareth Davies, David T. C. Harrison, Trudy Marson, Julie Bacon, Mr Richard Davies, Gareth Hart, Sally-Ann May, rh Mrs Theresa Badenoch, Kemi Davies, Dr James Hart, rh Simon Mayhew, Jerome Bailey, Shaun Davies, Mims Hayes, rh Sir John Maynard, Paul Baillie, Siobhan Davies, Philip Heald, rh Sir Oliver McCartney, Jason Baker, Duncan Davis, rh Mr David Heappey, James McCartney, Karl Baker, Mr Steve Davison, Dehenna Heaton-Harris, Chris McPartland, Stephen Baldwin, Harriett Dinenage, Caroline Henderson, Gordon McVey, rh Esther Barclay, rh Steve Dines, Miss Sarah Henry, Darren Menzies, Mark Baron, Mr John Djanogly, Mr Jonathan Higginbotham, Antony Mercer, Johnny Baynes, Simon Docherty, Leo Hinds, rh Damian Merriman, Huw Bell, Aaron Donelan, Michelle Hoare, Simon Metcalfe, Stephen Benton, Scott Dorries, Ms Nadine Holden, Mr Richard Millar, Robin Beresford, Sir Paul Double, Steve Hollinrake, Kevin Miller, rh Mrs Maria Berry, rh Jake Dowden, rh Oliver Hollobone, Mr Philip Milling, rh Amanda Bhatti, Saqib Doyle-Price, Jackie Holloway, Adam Mills, Nigel Blackman, Bob Drax, Richard Holmes, Paul Mitchell, rh Mr Andrew Blunt, Crispin Drummond, Mrs Flick Howell, John Mohindra, Mr Gagan Bone, Mr Peter Duddridge, James Howell, Paul Moore, Damien Bowie, Andrew Duguid, David Huddleston, Nigel Moore, Robbie Bradley, Ben Duncan Smith, rh Sir Iain Hudson, Dr Neil Mordaunt, rh Penny Bradley, rh Karen Dunne, rh Philip Hughes, Eddie Morris, Anne Marie Brady, Sir Graham Eastwood, Mark Hunt, Jane Morris, David Braverman, rh Suella Edwards, Ruth Hunt, rh Jeremy Morrissey, Joy Brereton, Jack Ellis, rh Michael Hunt, Tom Morton, Wendy Bridgen, Andrew Ellwood, rh Mr Tobias Jack, rh Mr Alister Mullan, Dr Kieran Brine, Steve Elphicke, Mrs Natalie Javid, rh Sajid Mumby-Croft, Holly Bristow, Paul Eustice, rh George Jayawardena, Mr Ranil Mundell, rh David Britcliffe, Sara Evans, Dr Luke Jenkin, Sir Bernard Murray, Mrs Sheryll Brokenshire, rh James Evennett, rh Sir David Jenkinson, Mark Murrison, rh Dr Andrew Browne, Anthony Everitt, Ben Jenkyns, Andrea Neill, Sir Robert Bruce, Fiona Fabricant, Michael Jenrick, rh Robert Nici, Lia Buchan, Felicity Farris, Laura Johnson, rh Boris Nokes, rh Caroline Buckland, rh Robert Fell, Simon Johnson, Dr Caroline Norman, rh Jesse Burghart, Alex Fletcher, Katherine Johnson, Gareth O’Brien, Neil Burns, rh Conor Fletcher, Mark Johnston, David Offord, Dr Matthew Butler, Rob Fletcher, Nick Jones, Andrew Opperman, Guy Cairns, rh Alun Ford, Vicky Jones, rh Mr David Parish, Neil Carter, Andy Foster, Kevin Jones, Fay Patel, rh Priti Cartlidge, James Fox, rh Dr Liam Jones, Mr Marcus Paterson, rh Mr Owen Cash, Sir William Francois, rh Mr Mark Jupp, Simon Pawsey, Mark Cates, Miriam Frazer, Lucy Kawczynski, Daniel Penning, rh Sir Mike Chalk, Alex Freeman, George Kearns, Alicia Penrose, John Chishti, Rehman Freer, Mike Keegan, Gillian Percy, Andrew Churchill, Jo Fuller, Richard Knight, rh Sir Greg Philp, Chris Clark, rh Greg Fysh, Mr Marcus Knight, Julian Pincher, rh Christopher Clarke, Mr Simon Gale, rh Sir Roger Kruger, Danny Poulter, Dr Dan 723 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 724

Pow, Rebecca Stuart, Graham Davey, rh Ed Lake, Ben Prentis, Victoria Sturdy, Julian David, Wayne Lammy, rh Mr David Pritchard, Mark Sunak, rh Rishi Davies, Geraint Lavery, Ian Pursglove, Tom Sunderland, James Davies-Jones, Alex Lewell-Buck, Mrs Emma Quin, Jeremy Swayne, rh Sir Desmond De Cordova, Marsha Lewis, Clive Quince, Will Syms, Sir Robert Debbonaire, Thangam Lloyd, Tony Raab, rh Dominic Thomas, Derek Dhesi, Mr Tanmanjeet Singh Lockhart, Carla Randall, Tom Throup, Maggie Dodds, Anneliese Long Bailey, Rebecca Redwood, rh John Timpson, Edward Donaldson, rh Sir Jeffrey M. Lynch, Holly Rees-Mogg, rh Mr Jacob Tolhurst, Kelly Doughty, Stephen Madders, Justin Richards, Nicola Tomlinson, Justin Dowd, Peter Mahmood, Mr Khalid Richardson, Angela Tomlinson, Michael Dromey, Jack Mahmood, Shabana Roberts, Rob Tracey, Craig Duffield, Rosie Malhotra, Seema Robertson, Mr Laurence Trevelyan, rh Anne-Marie Eagle, Ms Angela Maskell, Rachael Robinson, Mary Trott, Laura Eagle, Maria Matheson, Christian Rosindell, Andrew Truss, rh Elizabeth Eastwood, Colum McCabe, Steve Ross, Douglas Tugendhat, Tom Edwards, Jonathan McCarthy, Kerry Rowley, Lee Vara, Mr Shailesh Efford, Clive McDonald, Andy Russell, Dean Vickers, Martin Elliott, Julie McDonnell, rh John Rutley, David Vickers, Matt Elmore, Chris McFadden, rh Mr Pat Sambrook, Gary Villiers, rh Theresa Eshalomi, Florence McGinn, Conor Saxby, Selaine Wakeford, Christian Esterson, Bill McGovern, Alison Scully, Paul Walker, Mr Robin Evans, Chris McKinnell, Catherine Seely, Bob Wallace, rh Mr Ben Farron, Tim McMahon, Jim Selous, Andrew Wallis, Dr Jamie Farry, Stephen McMorrin, Anna Shapps, rh Grant Warburton, David Ferrier, Margaret Mearns, Ian Sharma, rh Alok Warman, Matt Fletcher, Colleen Miliband, rh Edward Shelbrooke, rh Alec Watling, Giles Fovargue, Yvonne Mishra, Navendu Simmonds, David Webb, Suzanne Foxcroft, Vicky Moran, Layla Skidmore, rh Chris Whately, Helen Foy, Mary Kelly Morden, Jessica Smith, Chloe Wheeler, Mrs Heather Gardiner, Barry Morgan, Stephen Smith, Greg Whittaker, Craig Gill, Preet Kaur Morris, Grahame Smith, Henry Whittingdale, rh Mr John Girvan, Paul Murray, Ian Smith, rh Julian Wiggin, Bill Glindon, Mary Murray, James Smith, Royston Wild, James Green, Kate Nandy, Lisa Solloway, Amanda Williams, Craig Greenwood, Lilian Nichols, Charlotte Spencer, Dr Ben Williamson, rh Gavin Greenwood, Margaret Norris, Alex Spencer, rh Mark Wood, Mike Griffith, Nia Olney, Sarah Stafford, Alexander Wragg, Mr William Gwynne, Andrew Onwurah, Chi Stephenson, Andrew Wright, rh Jeremy Haigh, Louise Oppong-Asare, Abena Stevenson, Jane Hamilton, Fabian Osamor, Kate Young, Jacob Stevenson, John Hanna, Claire Osborne, Kate Zahawi, Nadhim Stewart, Bob Hardy, Emma Owatemi, Taiwo Stewart, Iain Tellers for the Ayes: Harman, rh Ms Harriet Owen, Sarah Streeter, Sir Gary Maria Caulfield and Harris, Carolyn Paisley, Ian Stride, rh Mel James Morris Hayes, Helen Peacock, Stephanie Healey, rh John Pennycook, Matthew NOES Hendrick, Sir Mark Perkins, Mr Toby Hillier, Meg Phillips, Jess Abbott, rh Ms Diane Burgon, Richard Hobhouse, Wera Phillipson, Bridget Abrahams, Debbie Butler, Dawn Hodge, rh Dame Margaret Pollard, Luke Ali, Rushanara Byrne, Ian Hodgson, Mrs Sharon Powell, Lucy Ali, Tahir Byrne, rh Liam Hollern, Kate Qureshi, Yasmin Allin-Khan, Dr Rosena Cadbury, Ruth Hopkins, Rachel Rayner, Angela Amesbury, Mike Campbell, rh Sir Alan Howarth, rh Sir George Reed, Steve Anderson, Fleur Campbell, Mr Gregory Huq, Dr Rupa Rees, Christina Antoniazzi, Tonia Carden, Dan Hussain, Imran Reeves, Ellie Ashworth, Jonathan Carmichael, rh Mr Alistair Jardine, Christine Reeves, Rachel Barker, Paula Chamberlain, Wendy Jarvis, Dan Reynolds, Jonathan Beckett, rh Margaret Champion, Sarah Johnson, Dame Diana Ribeiro-Addy, Bell Begum, Apsana Clark, Feryal Johnson, Kim Rimmer, Ms Marie Benn, rh Hilary Cooper, Daisy Jones, Darren Robinson, Gavin Betts, Mr Clive Cooper, Rosie Jones, Gerald Rodda, Matt Blake, Olivia Cooper, rh Yvette Jones, rh Mr Kevan Russell-Moyle, Lloyd Blomfield, Paul Corbyn, rh Jeremy Jones, Ruth Saville Roberts, rh Liz Brabin, Tracy Coyle, Neil Jones, Sarah Shah, Naz Bradshaw, rh Mr Ben Creasy, Stella Kane, Mike Shannon, Jim Brennan, Kevin Cruddas, Jon Keeley, Barbara Sharma, Mr Virendra Brown, Ms Lyn Cryer, John Kendall, Liz Sheerman, Mr Barry Brown, rh Mr Nicholas Cummins, Judith Khan, Afzal Siddiq, Tulip Bryant, Chris Cunningham, Alex Kinnock, Stephen Slaughter, Andy Buck, Ms Karen Daby, Janet Kyle, Peter Smith, Cat 725 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 726

Smith, Nick Twigg, Derek The Committee divided: Ayes 261, Noes 367. Smyth, Karin Twist, Liz Division No. 262] [7.35 pm Sobel, Alex Vaz, rh Valerie Spellar, rh John Webbe, Claudia Starmer, rh Keir West, Catherine AYES Stevens, Jo Western, Matt Abbott, rh Ms Diane Docherty-Hughes, Martin Stone, Jamie Whitehead, Dr Alan Abrahams, Debbie Dodds, Anneliese Streeting, Wes Whitley, Mick Ali, Rushanara Doogan, Dave Stringer, Graham Whittome, Nadia Ali, Tahir Dorans, Allan Sultana, Zarah Williams, Hywel Allin-Khan, Dr Rosena Doughty, Stephen Tami, rh Mark Wilson, Munira Amesbury, Mike Dowd, Peter Tarry, Sam Wilson, rh Sammy Anderson, Fleur Dromey, Jack Thomas, Gareth Winter, Beth Antoniazzi, Tonia Duffield, Rosie Thomas-Symonds, Nick Yasin, Mohammad Ashworth, rh Jonathan Eagle, Dame Angela Thornberry, rh Emily Zeichner, Daniel Bardell, Hannah Eagle, Maria Timms, rh Stephen Tellers for the Noes: Barker, Paula Eastwood, Colum Beckett, rh Margaret Edwards, Jonathan Trickett, Jon Jeff Smith and Begum, Apsana Efford, Clive Turner, Karl Bambos Charalambous Benn, rh Hilary Elliott, Julie Betts, Mr Clive Elmore, Chris Question accordingly agreed to. Black, Mhairi Eshalomi, Florence The list of Members currently certified as eligible for a Blackford, rh Ian Esterson, Bill proxy vote, and of the Members nominated as their Blackman, Kirsty Evans, Chris proxy, is published at the end of today’s debates. Blake, Olivia Farron, Tim Clauses 24 to 26, 28, 31 to 33, 40 and 86 ordered to Blomfield, Paul Farry, Stephen Bonnar, Steven Fellows, Marion stand part of the Bill. Brabin, Tracy Ferrier, Margaret Bradshaw, rh Mr Ben Fletcher, Colleen New Clause 10 Brennan, Kevin Flynn, Stephen Brock, Deidre Fovargue, Yvonne REVIEW OF CHANGES TO CORONAVIRUS SUPPORT Brown, Alan Foxcroft, Vicky PAYMENTS ETC Brown, Ms Lyn Foy, Mary Kelly ‘(1) The Chancellor of the Exchequer must review the impact Brown, rh Mr Nicholas Gardiner, Barry on investment in parts of the United Kingdom and regions of Bryant, Chris Gibson, Patricia England of the changes made to coronavirus support payments Buck, Ms Karen Gill, Preet Kaur etc by sections 31, 32 and 33 of this Act and lay a report of that Burgon, Richard Glindon, Mary review before the House of Commons within six months of the Butler, Dawn Grady, Patrick passing of this Act. Byrne, Ian Grant, Peter (2) A review under this section must consider the effects of the Byrne, rh Liam Green, Kate provisions on— Cadbury, Ruth Greenwood, Lilian (a) business investment, Callaghan, Amy Greenwood, Margaret (b) employment, Cameron, Dr Lisa Griffith, Nia Campbell, rh Sir Alan Gwynne, Andrew (c) productivity, Carden, Dan Haigh, Louise (d) GDP growth, and Carmichael, rh Mr Alistair Hamilton, Fabian (e) poverty. Chamberlain, Wendy Hanna, Claire (3) A review under this section must consider the following Champion, Sarah Hardy, Emma scenarios— Chapman, Douglas Harman, rh Ms Harriet (a) the coronavirus job retention scheme and the self- Charalambous, Bambos Harris, Carolyn employment income support scheme are continued Cherry, Joanna Hayes, Helen until 30th September 2021, and Clark, Feryal Healey, rh John (b) the coronavirus job retention scheme and self- Cooper, Daisy Hendrick, Sir Mark employment income support scheme are continued Cooper, Rosie Hendry, Drew until 31st December 2021. Cooper, rh Yvette Hillier, Meg Corbyn, rh Jeremy Hobhouse, Wera (4) In this section— Cowan, Ronnie Hodge, rh Dame Margaret “parts of the United Kingdom” means— Coyle, Neil Hodgson, Mrs Sharon (a) England, Crawley, Angela Hollern, Kate (b) Scotland, Creasy, Stella Hopkins, Rachel (c) Wales, and Cruddas, Jon Hosie, rh Stewart (d) Northern Ireland; Cryer, John Howarth, rh Sir George and “regions of England” has the same meaning as Cummins, Judith Huq, Dr Rupa that used by the Office for National Statistics.’— Cunningham, Alex Hussain, Imran (Richard Thomson.) Daby, Janet Jardine, Christine This new clause would require a report comparing the effect of (a) Davey, rh Ed Jarvis, Dan the coronavirus job retention scheme and the self-employment David, Wayne Johnson, rh Dame Diana income support scheme being continued until 30 September 2021, Davies, Geraint Johnson, Kim and (b) the coronavirus job retention scheme and self-employment Davies-Jones, Alex Jones, Darren income support scheme being continued until 31 December 2021 on Day, Martyn Jones, Gerald various economic indicators. De Cordova, Marsha Jones, rh Mr Kevan Brought up, and read the First time. Debbonaire, Thangam Jones, Ruth Question put, That the clause be read a Second time. Dhesi, Mr Tanmanjeet Singh Jones, Sarah 727 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 728

Kane, Mike Phillips, Jess Anderson, Lee Davies, David T. C. Keeley, Barbara Phillipson, Bridget Anderson, Stuart Davies, Gareth Kendall, Liz Pollard, Luke Andrew, rh Stuart Davies, Dr James Khan, Afzal Powell, Lucy Ansell, Caroline Davies, Mims Kinnock, Stephen Qureshi, Yasmin Argar, Edward Davies, Philip Kyle, Peter Rayner, rh Angela Atherton, Sarah Davis, rh Mr David Lake, Ben Reed, Steve Atkins, Victoria Davison, Dehenna Lammy, rh Mr David Rees, Christina Bacon, Gareth Dinenage, Caroline Lavery, Ian Reeves, Ellie Bacon, Mr Richard Dines, Miss Sarah Law, Chris Reeves, Rachel Badenoch, Kemi Djanogly, Mr Jonathan Lewell-Buck, Mrs Emma Reynolds, Jonathan Bailey, Shaun Docherty, Leo Lewis, Clive Ribeiro-Addy, Bell Baillie, Siobhan Donaldson, rh Sir Jeffrey M. Linden, David Rimmer, Ms Marie Baker, Duncan Donelan, Michelle Lloyd, Tony Rodda, Matt Baker, Mr Steve Dorries, Ms Nadine Long Bailey, Rebecca Russell-Moyle, Lloyd Baldwin, Harriett Double, Steve Lucas, Caroline Saville Roberts, rh Liz Barclay, rh Steve Dowden, rh Oliver Lynch, Holly Shah, Naz Baron, Mr John Doyle-Price, Jackie MacNeil, Angus Brendan Sharma, Mr Virendra Baynes, Simon Drax, Richard Madders, Justin Sheerman, Mr Barry Bell, Aaron Drummond, Mrs Flick Mahmood, Mr Khalid Sheppard, Tommy Benton, Scott Duddridge, James Mahmood, Shabana Siddiq, Tulip Beresford, Sir Paul Duguid, David Malhotra, Seema Slaughter, Andy Berry, rh Jake Duncan Smith, rh Sir Iain Maskell, Rachael Smith, Cat Bhatti, Saqib Dunne, rh Philip Matheson, Christian Smith, Jeff Blackman, Bob Eastwood, Mark Mc Nally, John Smith, Nick Blunt, Crispin Edwards, Ruth McCabe, Steve Smyth, Karin Bone, Mr Peter Ellis, rh Michael McCarthy, Kerry Sobel, Alex Bottomley, Sir Peter Ellwood, rh Mr Tobias McDonald, Andy Spellar, rh John Bowie, Andrew Elphicke, Mrs Natalie McDonald, Stewart Malcolm Starmer, rh Keir Bradley, Ben Eustice, rh George McDonald, Stuart C. Stephens, Chris Bradley, rh Karen Evans, Dr Luke McDonnell, rh John Stevens, Jo Brady, Sir Graham Evennett, rh Sir David McFadden, rh Mr Pat Stone, Jamie Braverman, rh Suella Everitt, Ben McGinn, Conor Streeting, Wes Brereton, Jack Fabricant, Michael McGovern, Alison Stringer, Graham Bridgen, Andrew Farris, Laura McKinnell, Catherine Sultana, Zarah Brine, Steve Fell, Simon McLaughlin, Anne Tami, rh Mark Bristow, Paul Fletcher, Katherine McMahon, Jim Tarry, Sam Britcliffe, Sara Fletcher, Mark McMorrin, Anna Thewliss, Alison Brokenshire, rh James Fletcher, Nick Mearns, Ian Thomas, Gareth Browne, Anthony Ford, Vicky Miliband, rh Edward Thomas-Symonds, rh Nick Bruce, Fiona Foster, Kevin Mishra, Navendu Thompson, Owen Buchan, Felicity Fox, rh Dr Liam Monaghan, Carol Thornberry, rh Emily Buckland, rh Robert Francois, rh Mr Mark Moran, Layla Timms, rh Stephen Burghart, Alex Frazer, rh Lucy Morden, Jessica Trickett, Jon Burns, rh Conor Freeman, George Morgan, Stephen Turner, Karl Butler, Rob Freer, Mike Morris, Grahame Twigg, Derek Cairns, rh Alun Fuller, Richard Murray, Ian Twist, Liz Campbell, Mr Gregory Fysh, Mr Marcus Murray, James Vaz, rh Valerie Carter, Andy Gale, rh Sir Roger Nandy, Lisa Webbe, Claudia Cartlidge, James Garnier, Mark Newlands, Gavin West, Catherine Cash, Sir William Ghani, Ms Nusrat Nichols, Charlotte Western, Matt Cates, Miriam Gibb, rh Nick Nicolson, John Whitehead, Dr Alan Chalk, Alex Gibson, Peter Norris, Alex Whitford, Dr Philippa Chishti, Rehman Gideon, Jo O’Hara, Brendan Whitley, Mick Churchill, Jo Girvan, Paul Olney, Sarah Whittome, Nadia Clark, rh Greg Glen, John Onwurah, Chi Williams, Hywel Clarke, Mr Simon Goodwill, rh Mr Robert Oppong-Asare, Abena Wilson, Munira Clarke, Theo Gove, rh Michael Osamor, Kate Winter, Beth Clarke-Smith, Brendan Graham, Richard Osborne, Kate Wishart, Pete Clarkson, Chris Grant, Mrs Helen Oswald, Kirsten Cleverly, rh James Gray, James Yasin, Mohammad Owatemi, Taiwo Clifton-Brown, Sir Geoffrey Grayling, rh Chris Zeichner, Daniel Owen, Sarah Coffey, rh Dr Thérèse Green, Chris Peacock, Stephanie Tellers for the Ayes: Colburn, Elliot Green, rh Damian Pennycook, Matthew Alyn Smith and Collins, Damian Griffith, Andrew Perkins, Mr Toby Richard Thomson Costa, Alberto Griffiths, Kate Courts, Robert Grundy, James NOES Coutinho, Claire Gullis, Jonathan Adams, Nigel Aiken, Nickie Cox, rh Sir Geoffrey Halfon, rh Robert Crabb, rh Stephen Hall, Luke Afolami, Bim Aldous, Peter Crosbie, Virginia Hammond, Stephen Afriyie, Adam Allan, Lucy Crouch, Tracey Hancock, rh Matt Ahmad Khan, Imran Amess, Sir David Daly, James Hands, rh Greg 729 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 730

Harper, rh Mr Mark Malthouse, Kit Sambrook, Gary Tomlinson, Justin Harris, Rebecca Mangnall, Anthony Saxby, Selaine Tomlinson, Michael Harrison, Trudy Mann, Scott Scully, Paul Tracey, Craig Hart, Sally-Ann Marson, Julie Seely, Bob Trevelyan, rh Anne-Marie Hart, rh Simon May, rh Mrs Theresa Selous, Andrew Trott, Laura Hayes, rh Sir John Mayhew, Jerome Shannon, Jim Truss, rh Elizabeth Heald, rh Sir Oliver Maynard, Paul Shapps, rh Grant Tugendhat, Tom Heappey, James McCartney, Jason Sharma, rh Alok Vara, Shailesh Heaton-Harris, Chris McCartney, Karl Shelbrooke, rh Alec Vickers, Martin Henderson, Gordon McPartland, Stephen Simmonds, David Vickers, Matt Henry, Darren McVey, rh Esther Skidmore, rh Chris Villiers, rh Theresa Higginbotham, Antony Menzies, Mark Smith, Chloe Wakeford, Christian Hinds, rh Damian Mercer, Johnny Smith, Greg Walker, Mr Robin Hoare, Simon Merriman, Huw Smith, Henry Wallace, rh Mr Ben Holden, Mr Richard Metcalfe, Stephen Smith, rh Julian Wallis, Dr Jamie Hollinrake, Kevin Millar, Robin Smith, Royston Warburton, David Hollobone, Mr Philip Miller, rh Mrs Maria Solloway, Amanda Warman, Matt Holloway, Adam Milling, rh Amanda Spencer, Dr Ben Watling, Giles Holmes, Paul Mills, Nigel Spencer, rh Mark Webb, Suzanne Howell, John Mitchell, rh Mr Andrew Stafford, Alexander Whately, Helen Howell, Paul Mohindra, Mr Gagan Stephenson, Andrew Wheeler, Mrs Heather Huddleston, Nigel Moore, Damien Stevenson, Jane Whittaker, Craig Hudson, Dr Neil Moore, Robbie Stevenson, John Whittingdale, rh Mr John Hughes, Eddie Mordaunt, rh Penny Stewart, rh Bob Wiggin, Bill Hunt, Jane Morris, Anne Marie Stewart, Iain Wild, James Hunt, rh Jeremy Morris, David Streeter, Sir Gary Williams, Craig Hunt, Tom Morrissey, Joy Stride, rh Mel Williamson, rh Gavin Jack, rh Mr Alister Morton, Wendy Stuart, Graham Wilson, rh Sammy Javid, rh Sajid Mullan, Dr Kieran Sturdy, Julian Wood, Mike Jayawardena, Mr Ranil Mumby-Croft, Holly Sunak, rh Rishi Wragg, Mr William Jenkin, Sir Bernard Mundell, rh David Sunderland, James Wright, rh Jeremy Jenkinson, Mark Murray, Mrs Sheryll Swayne, rh Sir Desmond Young, Jacob Jenkyns, Andrea Murrison, rh Dr Andrew Syms, Sir Robert Zahawi, Nadhim Jenrick, rh Robert Neill, Sir Robert Thomas, Derek Johnson, rh Boris Nici, Lia Throup, Maggie Tellers for the Noes: Johnson, Dr Caroline Nokes, rh Caroline Timpson, Edward Maria Caulfield and Johnson, Gareth Norman, rh Jesse Tolhurst, Kelly James Morris Johnston, David O’Brien, Neil Jones, Andrew Offord, Dr Matthew Question accordingly negatived. Jones, rh Mr David Opperman, Guy Jones, Fay Paisley, Ian The list of Members currently certified as eligible for a Jones, Mr Marcus Parish, Neil proxy vote, and of the Members nominated as their Jupp, Simon Patel, rh Priti proxy, is published at the end of today’s debates. Kawczynski, Daniel Paterson, rh Mr Owen Kearns, Alicia Pawsey, Mark New Clause 23 Keegan, Gillian Penning, rh Sir Mike Knight, rh Sir Greg Penrose, John EQUALITY IMPACT ANALYSIS Knight, Julian Percy, Andrew ‘(1) The Chancellor of the Exchequer must review the equality Kruger, Danny Philp, Chris impact of sections 1 to 5, 24 to 26, 28, 31 to 33, 40 and 86 of this Kwarteng, rh Kwasi Pincher, rh Christopher Act and lay a report of that review before the House of Lamont, John Poulter, Dr Dan Commons within six months of the passing of this Act. Largan, Robert Pow, Rebecca (2) A review under this section must consider— Latham, Mrs Pauline Prentis, Victoria (a) the impact of those sections on households at different Leadsom, rh Andrea Pritchard, rh Mark levels of income, Leigh, rh Sir Edward Pursglove, Tom (b) the impact of those sections on people with protected Levy, Ian Quin, Jeremy characteristics (within the meaning of the Equality Lewer, Andrew Quince, Will Act 2010), Lewis, rh Brandon Raab, rh Dominic (c) the impact of those sections on the Treasury’s compliance Lewis, rh Dr Julian Randall, Tom with the public sector equality duty under section 149 Liddell-Grainger, Mr Ian Redwood, rh John of the Equality Act 2010, and Lockhart, Carla Rees-Mogg, rh Mr Jacob (d) the impact of those sections on equality in different Loder, Chris Richards, Nicola parts of the United Kingdom and different regions of Logan, Mark Richardson, Angela England. Longhi, Marco Roberts, Rob (3) A review under this section must give a separate analysis in Lopez, Julia Robertson, Mr Laurence relation to the following matters— Lopresti, Jack Robinson, Gavin (a) income tax, Lord, Mr Jonathan Robinson, Mary (b) employment income, Loughton, Tim Rosindell, Andrew (c) coronavirus support payments, Mackinlay, Craig Ross, Douglas Mackrory, Cherilyn Rowley, Lee (d) pension schemes, Maclean, Rachel Russell, Dean (e) investments, and Mak, Alan Rutley, David (f) inheritance tax. 731 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 732

(4) In this section— Grady, Patrick McLaughlin, Anne “parts of the United Kingdom” means— Grant, Peter McMahon, Jim (a) England, Green, Kate McMorrin, Anna (b) Scotland, Greenwood, Lilian Mearns, Ian (c) Wales, and Greenwood, Margaret Miliband, rh Edward (d) Northern Ireland; Griffith, Nia Mishra, Navendu and “regions of England” has the same meaning as Gwynne, Andrew Monaghan, Carol that used by the Office for National Statistics.’— Haigh, Louise Moran, Layla (James Murray.) Hamilton, Fabian Morden, Jessica Hanna, Claire Morgan, Stephen This new clause requires the Chancellor of the Exchequer to carry Hardy, Emma Morris, Grahame out and publish a review of the effects of clauses 1 to 5, 24 to 26, 28, 31 to 33, 40 and 86 of the Bill on equality in relation to Harman, rh Ms Harriet Murray, Ian households with different levels of income, people with protected Harris, Carolyn Murray, James characteristics, the Treasury’s public sector equality duty and on a Hayes, Helen Nandy, Lisa regional basis. Healey, rh John Newlands, Gavin Hendrick, Sir Mark Nichols, Charlotte Brought up, and read the First time. Hendry, Drew Nicolson, John Question put, That the clause be read a Second time. Hillier, Meg Norris, Alex Ayes 269, Noes 358. Hobhouse, Wera O’Hara, Brendan The Committee divided: Hodge, rh Dame Margaret Olney, Sarah Division No. 263] [7.43 pm Hodgson, Mrs Sharon Onwurah, Chi Hollern, Kate Oppong-Asare, Abena AYES Hopkins, Rachel Osamor, Kate Abbott, rh Ms Diane Corbyn, rh Jeremy Hosie, rh Stewart Osborne, Kate Abrahams, Debbie Cowan, Ronnie Howarth, rh Sir George Oswald, Kirsten Ali, Rushanara Coyle, Neil Huq, Dr Rupa Owatemi, Taiwo Ali, Tahir Crawley, Angela Hussain, Imran Owen, Sarah Allin-Khan, Dr Rosena Creasy, Stella Jardine, Christine Paisley, Ian Amesbury, Mike Cruddas, Jon Jarvis, Dan Peacock, Stephanie Anderson, Fleur Cryer, John Johnson, rh Dame Diana Pennycook, Matthew Antoniazzi, Tonia Cummins, Judith Johnson, Kim Perkins, Mr Toby Ashworth, rh Jonathan Cunningham, Alex Jones, Darren Phillips, Jess Bardell, Hannah Daby, Janet Jones, Gerald Phillipson, Bridget Barker, Paula Davey, rh Ed Jones, rh Mr Kevan Pollard, Luke Beckett, rh Margaret David, Wayne Jones, Ruth Powell, Lucy Begum, Apsana Davies, Geraint Jones, Sarah Qureshi, Yasmin Benn, rh Hilary Davies-Jones, Alex Kane, Mike Rayner, rh Angela Betts, Mr Clive Day, Martyn Keeley, Barbara Reed, Steve Black, Mhairi De Cordova, Marsha Kendall, Liz Rees, Christina Blackford, rh Ian Debbonaire, Thangam Khan, Afzal Reeves, Ellie Blackman, Kirsty Dhesi, Mr Tanmanjeet Singh Kinnock, Stephen Reeves, Rachel Blake, Olivia Docherty-Hughes, Martin Kyle, Peter Reynolds, Jonathan Blomfield, Paul Dodds, Anneliese Lake, Ben Ribeiro-Addy, Bell Bonnar, Steven Donaldson, rh Sir Jeffrey M. Lammy, rh Mr David Rimmer, Ms Marie Brabin, Tracy Doogan, Dave Lavery, Ian Robinson, Gavin Bradshaw, rh Mr Ben Dorans, Allan Law, Chris Rodda, Matt Brennan, Kevin Doughty, Stephen Lewell-Buck, Mrs Emma Russell-Moyle, Lloyd Brock, Deidre Dowd, Peter Lewis, Clive Saville Roberts, rh Liz Brown, Alan Dromey, Jack Linden, David Shah, Naz Brown, Ms Lyn Duffield, Rosie Lloyd, Tony Shannon, Jim Brown, rh Mr Nicholas Eagle, Dame Angela Lockhart, Carla Sharma, Mr Virendra Bryant, Chris Eagle, Maria Long Bailey, Rebecca Sheerman, Mr Barry Buck, Ms Karen Eastwood, Colum Lucas, Caroline Sheppard, Tommy Burgon, Richard Efford, Clive Lynch, Holly Siddiq, Tulip Butler, Dawn Elliott, Julie MacNeil, Angus Brendan Slaughter, Andy Byrne, Ian Elmore, Chris Madders, Justin Smith, Alyn Byrne, rh Liam Eshalomi, Florence Mahmood, Mr Khalid Smith, Cat Cadbury, Ruth Esterson, Bill Mahmood, Shabana Smith, Nick Callaghan, Amy Evans, Chris Malhotra, Seema Smyth, Karin Cameron, Dr Lisa Farron, Tim Maskell, Rachael Sobel, Alex Campbell, rh Sir Alan Farry, Stephen Matheson, Christian Spellar, rh John Campbell, Mr Gregory Fellows, Marion Mc Nally, John Starmer, rh Keir Carden, Dan Fletcher, Colleen McCabe, Steve Stephens, Chris Carmichael, rh Mr Alistair Flynn, Stephen McCarthy, Kerry Stevens, Jo Chamberlain, Wendy Fovargue, Yvonne McDonald, Andy Stone, Jamie Champion, Sarah Foxcroft, Vicky McDonald, Stewart Malcolm Streeting, Wes Chapman, Douglas Foy, Mary Kelly McDonald, Stuart C. Stringer, Graham Cherry, Joanna Gardiner, Barry McDonnell, rh John Sultana, Zarah Clark, Feryal Gibson, Patricia McFadden, rh Mr Pat Tami, rh Mark Cooper, Daisy Gill, Preet Kaur McGinn, Conor Tarry, Sam Cooper, Rosie Girvan, Paul McGovern, Alison Thewliss, Alison Cooper, rh Yvette Glindon, Mary McKinnell, Catherine Thomas, Gareth 733 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 734

Thomas-Symonds, rh Nick Whitford, Dr Philippa Fabricant, Michael Jenrick, rh Robert Thompson, Owen Whitley, Mick Farris, Laura Johnson, rh Boris Thomson, Richard Whittome, Nadia Fell, Simon Johnson, Dr Caroline Thornberry, rh Emily Williams, Hywel Fletcher, Katherine Johnson, Gareth Timms, rh Stephen Wilson, Munira Fletcher, Mark Johnston, David Trickett, Jon Wilson, rh Sammy Fletcher, Nick Jones, Andrew Turner, Karl Winter, Beth Ford, Vicky Jones, rh Mr David Twigg, Derek Wishart, Pete Foster, Kevin Jones, Fay Twist, Liz Fox, rh Dr Liam Yasin, Mohammad Jones, Mr Marcus Vaz, rh Valerie Francois, rh Mr Mark Jupp, Simon Zeichner, Daniel Webbe, Claudia Frazer, rh Lucy Kawczynski, Daniel West, Catherine Tellers for the Ayes: Freeman, George Kearns, Alicia Western, Matt Bambos Charalambous and Freer, Mike Keegan, Gillian Whitehead, Dr Alan Jeff Smith Fuller, Richard Knight, rh Sir Greg Fysh, Mr Marcus Knight, Julian NOES Gale, rh Sir Roger Kruger, Danny Garnier, Mark Kwarteng, rh Kwasi Adams, Nigel Cartlidge, James Ghani, Ms Nusrat Lamont, John Afolami, Bim Cash, Sir William Gibb, rh Nick Largan, Robert Afriyie, Adam Cates, Miriam Gibson, Peter Latham, Mrs Pauline Ahmad Khan, Imran Chalk, Alex Gideon, Jo Leadsom, rh Andrea Aiken, Nickie Chishti, Rehman Glen, John Leigh, rh Sir Edward Aldous, Peter Churchill, Jo Goodwill, rh Mr Robert Levy, Ian Allan, Lucy Clark, rh Greg Gove, rh Michael Lewer, Andrew Amess, Sir David Clarke, Mr Simon Graham, Richard Lewis, rh Brandon Anderson, Lee Clarke, Theo Grant, Mrs Helen Lewis, rh Dr Julian Anderson, Stuart Clarke-Smith, Brendan Gray, James Liddell-Grainger, Mr Ian Andrew, rh Stuart Clarkson, Chris Grayling, rh Chris Loder, Chris Ansell, Caroline Cleverly, rh James Green, Chris Logan, Mark Argar, Edward Clifton-Brown, Sir Geoffrey Green, rh Damian Longhi, Marco Atherton, Sarah Coffey, rh Dr Thérèse Griffith, Andrew Lopez, Julia Atkins, Victoria Colburn, Elliot Griffiths, Kate Lopresti, Jack Bacon, Gareth Collins, Damian Grundy, James Lord, Mr Jonathan Bacon, Mr Richard Costa, Alberto Gullis, Jonathan Loughton, Tim Badenoch, Kemi Courts, Robert Halfon, rh Robert Mackinlay, Craig Bailey, Shaun Coutinho, Claire Hall, Luke Mackrory, Cherilyn Baillie, Siobhan Cox, rh Sir Geoffrey Hammond, Stephen Maclean, Rachel Baker, Duncan Crabb, rh Stephen Hancock, rh Matt Mak, Alan Baker, Mr Steve Crosbie, Virginia Hands, rh Greg Malthouse, Kit Baldwin, Harriett Crouch, Tracey Harper, rh Mr Mark Mangnall, Anthony Barclay, rh Steve Daly, James Harris, Rebecca Mann, Scott Baron, Mr John Davies, David T. C. Harrison, Trudy Marson, Julie Baynes, Simon Davies, Gareth Hart, Sally-Ann May, rh Mrs Theresa Bell, Aaron Davies, Dr James Hart, rh Simon Mayhew, Jerome Benton, Scott Davies, Mims Hayes, rh Sir John Maynard, Paul Beresford, Sir Paul Davies, Philip Heald, rh Sir Oliver McCartney, Jason Berry, rh Jake Davis, rh Mr David Heappey, James McCartney, Karl Bhatti, Saqib Davison, Dehenna Heaton-Harris, Chris McPartland, Stephen Blackman, Bob Dinenage, Caroline Henderson, Gordon McVey, rh Esther Blunt, Crispin Dines, Miss Sarah Henry, Darren Menzies, Mark Bone, Mr Peter Djanogly, Mr Jonathan Higginbotham, Antony Mercer, Johnny Bottomley, Sir Peter Docherty, Leo Hinds, rh Damian Merriman, Huw Bowie, Andrew Donelan, Michelle Hoare, Simon Metcalfe, Stephen Bradley, Ben Dorries, Ms Nadine Holden, Mr Richard Millar, Robin Bradley, rh Karen Double, Steve Hollinrake, Kevin Miller, rh Mrs Maria Brady, Sir Graham Dowden, rh Oliver Hollobone, Mr Philip Milling, rh Amanda Braverman, rh Suella Doyle-Price, Jackie Holloway, Adam Mills, Nigel Brereton, Jack Drax, Richard Holmes, Paul Mitchell, rh Mr Andrew Bridgen, Andrew Drummond, Mrs Flick Howell, John Mohindra, Mr Gagan Brine, Steve Duddridge, James Howell, Paul Moore, Damien Bristow, Paul Duguid, David Huddleston, Nigel Moore, Robbie Britcliffe, Sara Duncan Smith, rh Sir Iain Hudson, Dr Neil Mordaunt, rh Penny Brokenshire, rh James Dunne, rh Philip Hughes, Eddie Morris, Anne Marie Browne, Anthony Eastwood, Mark Hunt, Jane Morris, David Bruce, Fiona Edwards, Ruth Hunt, rh Jeremy Morrissey, Joy Buchan, Felicity Ellis, rh Michael Hunt, Tom Morton, Wendy Buckland, rh Robert Ellwood, rh Mr Tobias Jack, rh Mr Alister Mullan, Dr Kieran Burghart, Alex Elphicke, Mrs Natalie Javid, rh Sajid Mumby-Croft, Holly Burns, rh Conor Eustice, rh George Jayawardena, Mr Ranil Mundell, rh David Butler, Rob Evans, Dr Luke Jenkin, Sir Bernard Murray, Mrs Sheryll Cairns, rh Alun Evennett, rh Sir David Jenkinson, Mark Murrison, rh Dr Andrew Carter, Andy Everitt, Ben Jenkyns, Andrea Neill, Sir Robert 735 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 736

Nici, Lia Stafford, Alexander Clause 8 stand part. Nokes, rh Caroline Stephenson, Andrew Amendment 11, in clause 9, page 3, line 35, leave out Norman, rh Jesse Stevenson, Jane O’Brien, Neil Stevenson, John “130%” and insert “18%”. Offord, Dr Matthew Stewart, rh Bob This amendment would reduce the level of the capital allowance Opperman, Guy Stewart, Iain super-deductions to the current rate of 18%. Parish, Neil Streeter, Sir Gary Amendment 79, page 4, line 2, at end insert— Patel, rh Priti Stride, rh Mel “provided that any such company which has more than £1 million Paterson, rh Mr Owen Stuart, Graham in qualifying expenditure must also— Pawsey, Mark Sturdy, Julian (i) adhere to International Labour Organisation convention Penning, rh Sir Mike Sunak, rh Rishi 98 on the right to organise and collective bargaining, Penrose, John Sunderland, James (ii) be certified or be in the process of being certified by Percy, Andrew Swayne, rh Sir Desmond the Living Wage Foundation as a living wage Philp, Chris Syms, Sir Robert employer, and Pincher, rh Christopher Thomas, Derek (iii) not be liable to the digital services tax”. Poulter, Dr Dan Throup, Maggie This amendment would, in respect of companies with qualifying Pow, Rebecca Timpson, Edward expenditure of over £1 million, add conditions relating to ILO Prentis, Victoria Tolhurst, Kelly convention 98, the living wage and the digital services tax. Pritchard, rh Mark Tomlinson, Justin Pursglove, Tom Tomlinson, Michael Amendment 80, page 4, line 2, at end insert— Quin, Jeremy Tracey, Craig “provided that any such company which has more than £1 million Quince, Will Trevelyan, rh Anne-Marie in qualifying expenditure must also make a climate-related financial Raab, rh Dominic Trott, Laura disclosure in line with the recommendations of the Task Force on Randall, Tom Truss, rh Elizabeth Climate-related Financial Disclosures within the 2021/22 tax year”. Redwood, rh John Tugendhat, Tom This amendment would, in respect of companies with qualifying Rees-Mogg, rh Mr Jacob Vara, Shailesh expenditure of over £1 million, add a condition relating to Richards, Nicola Vickers, Martin climate-related financial disclosure to the conditions that must be Richardson, Angela Vickers, Matt met in order for expenditure to qualify for super-deductions. Roberts, Rob Villiers, rh Theresa Amendment 66, page 4, line 6, at end insert “, except Robertson, Mr Laurence Wakeford, Christian general exclusion 6”. Robinson, Mary Walker, Mr Robin Rosindell, Andrew Wallace, rh Mr Ben This amendment would remove leased assets from the list of assets Ross, Douglas Wallis, Dr Jamie excluded from the super-deduction and special rate allowance introduced by Finance (No. 2 Bill). Rowley, Lee Warburton, David Russell, Dean Warman, Matt Amendment 67, page 4, line 21, at end insert “, except Rutley, David Watling, Giles general exclusion 6”. Sambrook, Gary Webb, Suzanne See the explanatory statement for Amendment 66. Saxby, Selaine Whately, Helen Scully, Paul Wheeler, Mrs Heather Amendment 53, page 5, line 15, at end insert— Seely, Bob Whittaker, Craig “(11) The Chancellor of the Exchequer must, no later than Selous, Andrew Whittingdale, rh Mr John 5 April 2022, lay before the House of Commons a report— Shapps, rh Grant Wiggin, Bill (a) analysing the fiscal and economic effects of Government Sharma, rh Alok Wild, James relief underthecapitalallowancessuper-deductionscheme Shelbrooke, rh Alec Williams, Craig since the inception of the scheme, and the changes in those effects which it estimates will occur as a result of Simmonds, David Williamson, rh Gavin the provisions of this section, in respect of— Skidmore, rh Chris Wood, Mike (i) each NUTS 1 statistical region of England and Smith, Chloe Wragg, Mr William Smith, Greg England as a whole, Wright, rh Jeremy Smith, Henry (ii) Scotland, Young, Jacob Smith, rh Julian (iii) Wales, and Zahawi, Nadhim Smith, Royston (iv) Northern Ireland, Solloway, Amanda Tellers for the Noes: (b) assessing how the capital allowance super-deduction Spencer, Dr Ben James Morris and scheme is furthering efforts to mitigate climate change, Spencer, rh Mark Maria Caulfield and any differences in the benefit of this funding in respect of— (i) each NUTS 1 statistical region of England and Question accordingly negatived. England as a whole, The list of Members currently certified as eligible for a (ii) Scotland, proxy vote, and of the Members nominated as their (iii) Wales, and proxy, is published at the end of today’s debates. (iv) Northern Ireland.” This amendment would require the Chancellor of the Exchequer to Clause 6 analyse the impact of changes proposed in Clause 9 in terms of impact on the economy and geographical reach and to assess the CHARGE AND MAIN RATE FOR FINANCIAL YEARS 2022 impact of the capital allowances super-deduction scheme on efforts AND 2023 to mitigate climate change. Question proposed, That the clause stand part of the Amendment 78, page 5, line 15, at end insert— Bill. “(11) Expenditure shall not be qualifying expenditure under The Temporary Chair (Siobhain McDonagh): With this section if it is incurred by a member of a group which is this it will be convenient to discuss the following: required to publish a tax strategy in compliance with Schedule 19 of the Finance Act 2016, unless any tax strategy published in Clause 6 stand part. compliance with that Schedule after the coming into force of this Clause 7 stand part. Act includes any relevant country-by-country report. 737 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 738

(12) ‘Country-by-country report’ has the meaning given by the (b) the report has been debated and approved by the Taxes (Base Erosion and Profit Shifting) (Country-by-Country House of Commons. Reporting) Regulations 2016. (2) The report in subsection (1) must consider what the (13) A country-by-country report is relevant if it— economic and social benefits would be of making the capital (a) was filed or required to be filed by the group in allowance super-deductions contingent on employers meeting compliance with those Regulations on or before the criteria relating to— date of publication of the tax strategy, or would have (a) reducing their carbon emissions, been so required if the head of the group were resident (b) tackling the gender pay gap, in the United Kingdom for tax purposes, and (c) paying the right amount of tax and not using (b) has not already been included in a tax strategy avoidance schemes, published by the group.” (d) paying the living wage to all directly employed staff, This amendment would require large multinationals accessing super- and deductions to make their country-by-country reporting public. (e) recognising trade unions for the purposes of collective Clause 9 stand part. bargaining.” Clause 10 stand part. This new clause would mean that sections 9 to 14 could not come Clause 11 stand part. into force until the Government had published a report examining the economic, social and environmental effect of the capital Clause 12 stand part. allowance super-deductions and that report had been agreed by the Clause 13 stand part. House of Commons. Clause 14 stand part. New clause 6—Commencement of super-deduction Amendment 55, page 85, line 10, in schedule 1, leave provisions (report on existing capital allowances)— out from “period if it is” to the end of line 30 and “(1) Sections 9 to 14 shall not come into force until the insert— conditions in subsection (2) are met. “a related 51% group company of that company in the accounting (2) The conditions are— period as defined by section 279F of CTA 2010.” (a) the Public Accounts Committee has reported on the This amendment would prevent the introduction of a new definition effectiveness of the existing capital allowances listed of “associated companies” for the purposes of the small profits in section 2(3) of the Capital Allowances Act 2001, rate and uses an existing provision instead. and Amendment 56, page 93, line 29, leave out paragraph 11. (b) at least one week after the publication of the report in paragraph (a) both Houses of Parliament have agreed See the explanatory statement for amendment 55. that sections 9 to 14 shall come into force.” Amendment 57, page 94, line 5, leave out sub-sub- This new clause would set the following conditions before clauses 9 paragraph (a). to 14 of the Bill come into force: that the Public Accounts See the explanatory statement for amendment 55. Committee prepares a report on the effectiveness of existing capital Amendment 58, page 94, line 14, leave out sub- allowances, and then that both Houses of Parliament approve the clauses coming into force. paragraph (3). New clause 9—Equalities impact assessment of capital See the explanatory statement for amendment 55. allowance super-deductions— Amendment 59, page 94, line 22, leave out paragraphs 15 “(none) The Chancellor of the Exchequer must, no later than to 17. 5 April 2022, lay before the House of Commons an equalities See the explanatory statement for amendment 55. impact assessment of the provisions sections 9 to 14 of this Act, Amendment 60, page 95, line 5, leave out paragraphs 20 which must cover the impact of those provisions on— and 21. (a) households at different levels of income, See the explanatory statement for amendment 55. (b) people with protected characteristics (within the Amendment 61, page 96, line 44, leave out paragraph 30. meaning of the Equality Act 2010), (c) the Treasury’s compliance with the public sector equality See the explanatory statement for amendment 55. duty under section 149 of the Equality Act 2010, Amendment 62, page 97, line 22, leave out sub-sub- (d) equality in different parts of the United Kingdom and paragraph (e). different regions of England, and See the explanatory statement for amendment 55. (e) child poverty.” New clause 1—Eligibility for super-deduction— New clause 13—Review of impact of sections 6 to 14— “(1) Only employers that meet the criteria in subsection (2) “(1) The Chancellor of the Exchequer must review the impact shall benefit from the provisions relating to capital allowance on investment in parts of the United Kingdom and regions of super-deductions in sections 9 to 14. England of the changes made by sections 6 to 14 and schedule 1 (2) The criteria are that the employer— and lay a report of that review before the House of Commons within six months of the passing of this Act. (a) recognises a trade union for the purposes of collective bargaining with its workforce, and (2) A review under this section must consider the effects of the (b) is certified by the Living Wage Foundation as a living provisions on— wage employer.” (a) business investment, This new clause would ensure that only employers that pay their (b) employment, staff the living wage and recognise trade union(s) would be eligible (c) productivity, to receive the capital allowance super-deductions. (d) GDP growth, and New clause 2—Commencement of super-deduction (e) poverty. provisions (report on the benefits)— (3) A review under this section must consider the following “(1) Sections 9 to 14 shall not come into force until— scenarios— (a) the Secretary of State has commissioned and published (a) the United Kingdom reaches an agreement with a report that sets out the expected benefits of the OECD countries on a minimum international level of capital allowance super-deductions in this Act, and corporation tax, and 739 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 740

(b) the United Kingdom does not reach an agreement with New clause 21—Review of impact of sections 6 to 14 OECD countries on a minimum international level of (No. 3)— corporation tax. “(1) The Chancellor of the Exchequer must review the impact (4) In this section— on investment in parts of the United Kingdom and regions of “parts of the United Kingdom” means— England of the changes made by sections 6 to 14 and schedule 1 (a) England, and lay a report of that review before the House of Commons (b) Scotland, within six months of the passing of this Act. (c) Wales, and (2) A review under this section must consider the effects of the (d) Northern Ireland; provisions on— and “regions of England” has the same meaning as (a) progress towards the Government’s climate emissions that used by the Office for National Statistics.” targets, and This new clause would require a report comparing scenarios in (b) capital investment in each of the next five years. which (a) the United Kingdom reaches an agreement with OECD (3) A review under this section must include— countries on a minimum international level of corporation tax, and (b) the United Kingdom does not reach an agreement with OECD (a) the distribution of super-deduction claims by company countries on a minimum international level of corporation tax on size, and various economic indicators. (b) estimated tax fraud. New clause 17—Review of impact on corporation tax (4) In this section— revenues of global minimum rate of corporation tax— ‘parts of the United Kingdom’ means— (a) England, “The Chancellor of the Exchequer must within six months of Royal Assent lay before the House of Commons an assessment (b) Scotland, of the effect on corporation tax revenues in 2022 and 2023 of a (c) Scotland, global minimum corporation tax rate set at 21%.” (d) Wales, and This new clause would require the Government to publish an (e) Northern Ireland; assessment of the revenue effect of a global minimum corporation and ‘regions of England’ has the same meaning as that tax rate of 21%. used by the Office for National Statistics.” New clause 19—Review of impact of sections 6 to 14 This new clause seeks a report on the impact of the super deduction (No. 2)— on (a) progress towards the Government’s climate emissions targets, and (b) capital investment in each of the next five years. A review “(1) The Chancellor of the Exchequer must review the impact under this section must include (a) the distribution of super-deduction on investment in parts of the United Kingdom and regions of claims by company size, and (b) estimated tax fraud. England of the changes made by sections 6 to 14 and schedule 1 and lay a report of that review before the House of Commons New clause 24—Review of super-deductions— within six months of the passing of this Act. “(1) The Chancellor of the Exchequer must review the impact (2) A review under this section must consider the effects of the of sections 9 to 14 and schedule 1 of this Act and lay a report of provisions on— that review before the House of Commons within six months of (a) business investment, the passing of this Act, and then annually for five further years. (b) employment, (2) A review under this section must estimate the expected (c) productivity, impact of sections 9 to 14 and schedule 1 on— (d) GDP growth, and (a) levels of artificial tax avoidance, (e) poverty. (b) levels of tax evasion, reducing the tax gap in each tax year from 2021–22 to 2025–26, and (3) A review under this section must compare the estimated impact of corporation tax rate changes in this Act with the (c) levels of gross fixed capital formation by businesses in impact on investment from the changes to the corporation tax each tax year from 2021–22 to 2025–26. rate in each of the last 12 years. (3) The first review under this section must also consider levels (4) In this section— of usage of the recovery loan scheme in 2021.” ‘parts of the United Kingdom’ means— This new clause would require the Government to review the impact (a) England, of the provisions relating to super-deductions and publish regular (b) Scotland, reports setting out their findings. (c) Wales, and (d) Northern Ireland; Jesse Norman: Clauses 6 to 14 and schedule 1 establish the and “regions of England” has the same meaning as charge and set the rate of corporation tax at 19% for the that used by the Office for National Statistics” financial year beginning in April 2022, and establish This new clause seeks a review of the estimated impact of the charge and increase the rate of corporation tax to corporation tax rate changes in this Act with the impact on 25% for the financial year beginning in April 2023. investment from the changes to the corporation tax rate in each of They also introduce a small profits rate at 19% for the last 12 years on various economic indicators. companies with profits of £50,000 or less, with marginal New clause 20—Review of impact of section 7— relief for companies with profits between £50,000 and “(1) The Chancellor of the Exchequer must review the impact £250,000; and they increase the diverted profits tax rate of section 7 and lay a report of that review before the House of by 6 percentage points, in line with the increase in the Commons within six months of the passing of this Act. main rate of corporation tax. Finally, they introduce a (2) A review under this section must consider the effects of the capital allowance super-deduction for investments in provisions on— plant and machinery. (a) the link between corporate profit rates and ownership, At 19%, the current rate of corporation tax is the and lowest headline rate in the G20 and significantly lower (b) the cost of re-introducing a small profits rate.” than in the rest of the G7. However, given that the This new clause seeks a review of corporation tax provisions on (a) Government have used the full weight of the public finances the link between corporate profit rates and ownership, and (b) the to support businesses during the pandemic, protecting cost of re-introducing a small profits rate. thousands of businesses with more than £100 billion-worth 741 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 742

[Jesse Norman] The measure will greatly benefit British companies of all sizes, including those investing more than the £1 million of support, it is right that, as the economy rebounds annual investment allowance threshold, which are and businesses return to profit, they share in the burden responsible for around 80% of total plant and machinery of restoring the public finances to a sustainable footing. capital expenditure. The changes made by clauses 9 to That is why the Chancellor announced at Budget that 14 will allow all companies to reduce their taxable the rate of corporation tax will increase to 25% from profits by 130%, or 50% up front, all in the first year—a April 2023, after the economy is forecast to recover to cash-flow benefit powerful enough to encourage businesses its pre-pandemic level. to invest now. We expect the measure to cost around While many businesses are struggling now and the £25 billion over the scorecard period. Government are continuing to provide support for them, Opposition Members have tabled a number of others are sitting on large cash reserves. To unlock those amendments to clauses 6 to 14. Amendments 55 to 62 funds and support an investment-led economic recovery, propose the removal of the associated companies rules from April 2021 until the end of March 2023 companies that apply to the small profits rate. The rules will affect will be able to claim a 130% capital allowance super a small proportion of companies, but they are an essential deduction on qualifying plant and machinery investments. feature of the regime to prevent profitable businesses This super-deduction makes the UK’s capital allowance from fragmenting in order to take advantage of a lower regime truly world-leading, lifting the net present value rate or creating unfair outcomes, and they were a feature of our plant and machinery allowances from 30th in the of the previous regime on which these rules are based. OECD to first. In the absence of the rules, a consultant, for example, Given the number of amendments and the number of could provide his or her services through five companies speakers, I will try to keep my remarks relatively brief. with profits of £40,000 each and benefit from the small Clause 6 sets the main rate of corporation tax at 25% from profits rate. I cannot believe that Opposition Members, April 2023. The OBR forecasts that this will raise over or indeed any Member, would support that form of £45 billion in the next five years. It should be noted that avoidance: restructuring in order not to pay the tax. 25% is still the lowest headline rate in the G7—lower Several of the new clauses call on the Government to than in the United States, Canada, Italy, Japan, Germany publish a review of the impact of these clauses and and France. The clause also sets the main rate of potential alternative policy approaches. The Office for corporation tax at 19% for the financial year beginning Budget Responsibility considers the impact of policy on 1 April 2022. That means the higher rate will not changes in its fiscal forecasts and sets them out in its come into force until well after the point when the OBR “Economic and fiscal outlook”, which is published expects the economy to have recovered to its pre-pandemic alongside the Budget. Therefore, I can reassure Opposition level. Members that new clauses 17 and 20, which request To protect businesses with small profits from a rate reviews into the revenue impacts of a potential global increase, clause 7 and schedule 1 introduce a small profits minimum tax rate and the impact of the small profits rate for non-ring fence profits for the financial year rate, are not necessary. beginning 1 April 2023. As a consequence, only around New clauses 13, 19 and 21 request reviews into the 10% of actively trading companies will pay the full investment and various economic impacts of clauses 6 main rate. to 14 across the UK. The economic impacts of the Clause 8 makes changes to increase the rate of diverted clauses have been reflected in the OBR’sforecasts published profits tax to 31% from 1 April 2023, along with in its “Economic and fiscal outlook”, as were the impacts apportionment provisions for accounting periods straddling of reductions in the rate of corporation tax. The fiscal the commencement date. This will maintain the current impact of any future agreement on international tax differential between the main rate and ensure the diverted reform will be reflected in subsequent “Economic and profits tax remains an effective deterrent against profits fiscal outlook” documents. being diverted out of the UK. Opposition Members have also tabled several Clauses 9 to 14 make changes to encourage firms to amendments relating specifically to clauses 9 to 14. invest in productivity-enhancing plant and machinery Amendment 11 would reduce the level of the super assets that will help them grow, and to make those deduction to the current writing down allowance of investments now.Clause 9 introduces new capital allowances 18% for main rate assets. That would have the effect of available for expenditure incurred by companies between removing all the benefit conveyed by this groundbreaking 1 April 2021 and 31 March 2023. These include a new policy for shorter-life assets, while the benefit of a 130% super deduction for new main rate plant and 50% first-year allowance for longer-life assets would machinery and a 50% special rate first-year allowance remain. That would distort investment behaviour in for new special rate plant and machinery favour of longer-life assets and reduce the positive benefits of the policy. Business investment fell by a record £12 billion between the first and second quarters of last year. Making Various other amendments seek to restrict the relief capital allowances rates for plant and machinery investments only to certain companies, or require companies that more generous has the effect of stimulating business claim the super deduction to meet more burdensome investment and enhancing productivity. As firms invest, conditions than would be required for other first-year they create new, or substitute better, assets for use in allowances. The super deduction is an intentionally production. That increases labour productivity,as workers broad-based tax relief, designed to ensure that as many produce more output per hours worked through the use companies as possible are able to benefit from this very of new equipment that enables faster, higher-quality generous policy, in order that they can invest in their outputs. own future to drive the economic recovery. 743 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 744

Regarding a new requirement for country-by-country corporation tax and that at the same time, through this reporting, I am pleased to say that this Government have Bill, the Government are letting tech giants stop paying championed tax transparency both at home and abroad. tax altogether. That is demonstrated by the requirement introduced in Clauses 6 to 8 make it clear that the proposed changes 2016 for large businesses to publish their annual tax to corporation tax will come after increases to the income strategy, containing detail on the business’s approach to tax personal allowances, while clauses 9 to 14 centre on tax and how it works with HMRC. However, the the so-called super deduction, a £25 billion tax break Government continue to believe that only a multilateral targeted at big corporations that the Chancellor has approach to public country-by-country reporting with said represents wide international support would be effective in achieving “the biggest two-year business tax cut in modern British history”. transparency objectives and avoiding disproportionate impacts on the UK’s competitiveness, or distortions That tax break forms the centre of the Chancellor’s regarding group structures. The Government firmly strategy set out at the Budget, and it comes with a huge believe that that should remain voluntary and that no cost attached to it. We need to be absolutely clear who further legislation is needed unless and until public will benefit from it. country-by-country reporting is agreed on a multilateral One thing is clear: that tax break is not targeted at basis. small and medium-sized businesses. The truth is that New clauses 2 and 6 would have the effect of delaying such businesses can already benefit from the annual the super deduction, but to delay the policy now would investment allowance, a 100% tax break on investment be highly irresponsible and would risk holding up the up to £1 million, which clause 15 extends to the end of economic recovery that the policy will help to stimulate. this year. The Financial Secretary was very clear in his The likely real-world effect of delaying the implementation written statement of 12 November 2020, which announced of the super deduction would be that businesses would the extension, that it: delay investment until they had certainty on whether “Simplifies taxes for the 99% of businesses investing up to the super deduction would be available. At a time when £1 million on plant and machinery assets each year.” investment is most needed, delaying the implementation Indeed, the Treasury Committee concluded in its report of the super deduction would thus have negative impacts published in February, “Tax after coronavirus”, that the on employment, growth and wages. Various other annual investment allowance amendments would delay the measure, narrow its scope “appears well targeted to promote growth in small and medium-sized or replicate existing analysis and safeguards, and I urge enterprises.” the Committee to reject them. The existing allowance is said to be well targeted at the growth of small and medium-sized businesses and, 8 pm by the Financial Secretary’s own admission, it already benefits 99% of businesses, which will benefit only The Government continue to provide unprecedented marginally from the new super deduction. Who does support for small businesses in response to covid-19, as that leave? It is very clear who will be the main beneficiaries evidenced by many new measures announced at this of the Chancellor’s new scheme. It will be a tax break Budget. That includes over 350,000 business properties for the 1%. paying no business rates for a further three months, with the vast majority of eligible businesses receiving a Sammy Wilson: Does the shadow Minister not accept, 75% relief across the year. Many small businesses will first, that large businesses are an important component also benefit from the freeze in fuel duty. The new small of our economy and we need to increase productivity in profits rate of 19% for businesses with profits of £50,000 those businesses as well as in small businesses, and or under means that around 70% of active trading secondly, that many large industries, such as the aviation companies will benefit from no increase in their corporation industry, have been badly hit by the pandemic and tax rate. These smaller companies will benefit from all would benefit from the kind of tax allowances proposed the policies I have set out, as well as the super deduction, in the Bill? in line with the rules that operate regardless of the size of the business. James Murray: I thank the right hon. Gentleman for Clauses 6 to 14 and schedule 1 raise revenue by his comments, but as I have set out, the annual investment increasing the main rate of corporation tax while keeping allowance already appears to serve small and medium-sized that rate competitive relative to our international peers enterprises well. The super deduction that we are debating and supporting an investment-led recovery through the now is designed to help companies such as Amazon, introduction of a super deduction that is unprecedented which do not need any help with their investment. It is in its generosity, and they should therefore stand part of important that we see this in the context of those the Bill. companies that have done well throughout the outbreak and are already avoiding much of the tax they should be James Murray: I rise to speak to the amendments and paying. It is no wonder that Tax Watch has nicknamed the new clause in my name, that of the Leader of the this the “Amazon Tax Cut”. This giveaway from the Opposition and those of my other right hon. and hon. Chancellor could wipe out Amazon’s UK tax bill entirely. Friends. Analysis of Amazon’s accounts from 2019 shows that In the preceding debate, we saw how this Finance Bill the corporation’s UK operations made pre-tax profits will hit families, in all their many forms across the of £102 million. In the same year, it spent £67 million country, by making half of all people in the UK pay on plant and machinery, £80 million on office equipment, more tax from next year. As I made clear, the sense of and £15 million on computer equipment. The super injustice is made all the more acute by the fact that that deduction would have enabled Amazon to deduct increase in costs for families comes before any rise in £211 million from the calculation of its taxable profits— 745 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 746

[James Murray] of the Resolution Foundation has made clear, investment incentives have been abused for tax avoidance purposes more than enough to wipe out its entire tax liability in the past, yet the Government have failed to say or do twice over. It is truly astonishing that, faced with all the anything to address widespread concerns that the super challenges of this outbreak, the Government see their deduction is open to fraud and abuse. priority as giving Amazon a tax break. As I mentioned on Second Reading, economists from Here and around the world, people agree with us that the Institute for Fiscal Studies have said that the super investment in jobs and growth is what is needed. A tax deduction will break for tech giants that already fail to pay what they “create a risk of tax avoidance and even potentially fraud as should is not the answer. That is why our amendment 79 companies essentially try to find ways to dress things up as plant would explicitly prevent the biggest tech firms from and machinery investment”. taking advantage of the Chancellor’s tax break, as well as other big firms that do not support workers’ rights Minsters were unable to reassure us on this point when I and the living wage. raised it last week, so we are asking for the levels of tax avoidance and evasion arising from the super deduction The Government should be improving the lives of to be reviewed and put transparently before this House. Amazon workers, who have helped so many people with deliveries throughout the pandemic, not giving a huge It tells us everything about the Conservatives’ priorities tax break to their bosses. Amendment 79 would prevent that they are taking money from people’s pockets at the Amazon and other tech giants from accessing the super very same time as letting tech giants off paying tax deduction by preventing firms from doing so if they are altogether. This Government are proposing to wipe out liable for the digital services tax. When the Government some of the biggest corporations’ tax bills through a set out their plans for the digital services tax, they £25 billion boon, aimed at the biggest corporations, made it clear that it would apply to businesses that that the Chancellor has called provide social media platforms, search engines, or online “the biggest two-year business tax cut in modern British history.” marketplaces to UK users. The detail of that tax means In the face of a struggling economy, a tax break for that businesses will be liable when the group’s worldwide tech giants that already do not pay enough tax should revenues from these digital activities are more than be the last thing on the Government’s mind. Instead, it £500 million, and when more than £25 million of these is top of their list. They are wrong. revenues are derived from UK users. We are clear that those big corporations that should be caught by the digital services tax are among those Richard Fuller (North East Bedfordshire) (Con): Will that absolutely should not be benefiting from the the hon. Gentleman give way? Government proclaim as the biggest business tax cut in modern British history. We know that Amazon has James Murray: No, let me make some progress. brazenly made it clear that it will dodge the bill from the digital services tax by passing the cost on to its marketplace The Government are wrong, and that is why we will sellers. The fact that it is not even paying the tax that be voting to stop the Chancellor’s tax break going to the was designed for it to pay makes the prospect of a biggest tech firms or other big corporations that do not further massive tax cut from the Chancellor even more support workers’ rights and the living wage. We need a galling. fairer tax system and we need investment in jobs and growth. This Government’s Finance Bill fails on both Furthermore, as well as excluding big corporations fronts. I urge Conservative Members to show that they on the basis of their being liable for the digital services understand this, support our amendments today and tax, we are seeking to use our amendment to stop those take a stand against the Amazon tax cut. big businesses that do not support workers’ rights and the living wage from accessing the tax break. Both conditions would also catch Amazon and would also Felicity Buchan (Kensington) (Con): I speak in support require other big businesses—those that are not liable of clauses 6 to 14 and against the amendments. This for the digital services tax—to respect the right to Finance Bill needs to be a delicate balancing act. It organise and collective bargaining, and to be certified, needs to give immediate support to businesses and or be in the process of being certified, by the Living individuals while setting a path to rebalance our books Wage Foundation as a living wage employer. in the medium to long term. In my view, these provisions When firms stand to benefit from what the Chancellor on corporate taxation and the super deduction get that has called the biggest business tax cut in modern British balance exactly right. The Bill defers the increase in history, the very least the Government should require of corporation tax for two years and applies to only one in them is that they pay their workers the living wage and 10 businesses at 25%, but at the same time it turbocharges respect workers’ basic rights to organise. Alongside this, the incentives to invest in business now. we propose in amendment 80 that the Government This country has had a perennial problem with require big firms benefiting from the Chancellor’s tax productivity.Weneed to incentivise and encourage business break to make a climate-related financial disclosure, in investment. That business investment will help productivity, line with the recommendations of the Task Force on growth and innovation, and that is exactly what we Climate-related Financial Disclosures. need. The OBR has said that it anticipates that business Beyond the specific issue of how the biggest corporations investment will go up by a massive 10% as a result of are set to benefit from this tax break the most, we have this measure and, as my right hon. Friend the Minister also tabled new clause 24 to reflect the widely-held mentioned in his introductory remarks, we will go from concerns about the impact of the super deduction on No. 30 in the OECD rankings for attractiveness for levels of tax avoidance and evasion. As the chief executive business investment to No. 1. That is what we need over 747 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 748 the course of the next two years as we turbocharge this First, I will start with the positives. We very much economic recovery. We need the economic recovery to welcome the planned increase in corporation tax rates. be strong. For a number of years, there has been an orthodoxy that lower corporation tax rates are one way to economic Sammy Wilson: Does the hon. Lady accept that many growth. There was a period in the 1980s through to about of our large companies will lead the way in our export the 2000s when it was possible to make the argument, as growth as we seek to capitalise on the new markets many did, that lower taxes could be a route to securing that will open to us as a result of Brexit, and that to an increased level of foreign and direct investment, and capitalise on that we need new, competitive products that the resulting increase in economic activity could and to be productive and competitive on the world result in higher tax revenues than might otherwise have stage, which is why we need to encourage investment in been the case. I would like to think that we are all just a firms both large and small? bit wiser and more savvy now, given that, in the growth of that period, it is impossible to properly separate out Felicity Buchan: The right hon. Gentleman makes a the increase in corporation tax take and the general very good point. We need to encourage investment growth in activity that took place independently. across the board in large, medium-sized and small firms. Given that we did not see conspicuously high levels of Productivity has lagged and we need to correct that, so I investment or wage growth over that period, except absolutely agree. perhaps in boardrooms, and given the condition of our Let me move on to corporation tax. As I have said, public finances and the importance of public goods as a we will increase corporation tax but that is delayed for driver of wellbeing and sustainable growth and prosperity, two years. Corporation tax, by definition, is paid only we consider that this increase, which will apply a new by profitable companies. I am a low-tax Conservative, 25% rate on the top 10% of firms, is fully justified. We so I do not normally advocate increasing taxes, but are relieved that firms will have until 2023 to plan for given the exceptional amount of debt that we have this move. We believe it was misguided for the Chancellor rightly accrued and taken on, we need to be fiscally to try to increase it from 19% to 20% in September, prudent and look to balance our books in the medium ahead of any recovery starting, beyond the anticipated to long term. The reality is that we are very sensitive to return-to-trend growth that we are seeing anyway. interest rates and inflation, given the debt we have; so yes, I do think we need to do this, although it goes The SNP firmly believes that it is important that our against the grain. However, as my right hon. Friend the corporate citizens pay their share towards the maintenance Minister has said, even with the increase to 25% we still and good functioning of the market and the public have the lowest headline corporation tax rate in the G7. goods that allow them to flourish. However, domestic corporation tax is only part of that story. If re-elected— I also want to point out that the measure applies only obviously, we have elections coming up in Scotland, to the most profitable businesses, those that make £250,000- which I am sure hon. Members are focused on avidly—the plus. A small business that makes profits of up to SNP Government will be looking to explore the possibility £50,000 will have no change whatsoever in its corporation of levying a higher poundage on properties where the tax, and businesses in between will have a tapered rate. I owner is registered in a tax haven. That is part and believe that this is an unavoidable increase in corporation parcel of the package of measures that is needed to tax, but it still leaves us incredibly competitive on the ensure that everyone who benefits from participation in international stage, and it applies to only one out of the market is making a suitable contribution towards it. 10 businesses. Further, we believe that the UK must seize the 8.15 pm opportunity that this moment presents to work closely Sammy Wilson: Does the hon. Lady accept that, with the Biden Administration in the USA. We must despite the impression being given tonight that we are heed the call of that Administration’s Treasury Secretary, going to tax firms less and take less money off them, the Janet Yellen, to set a global minimum tax take for Red Book indicates that corporation tax take in the companies to ensure the global economy can thrive, economy as a whole will escalate from £40 billion this based on a more level playing field and the taxation of year to £85 billion by the end of the Budget period? The multinational corporations, and help spur innovation, result will be that we take more tax from firms. Hopefully, growth and prosperity. those firms will become more profitable and will therefore New clause 13 would oblige the Government to review be paying more tax. the impact of the changes made by clauses 6 to 14 in all parts of the UK, particularly in respect of business Felicity Buchan: I completely agree with the right investment, employment, productivity, GDP growth and hon. Gentleman that all the forecasts show a very poverty, and to compare the difference in actual and substantial increase in the tax take by virtue of this forecast outcomes between having a deal in place with move in corporation tax. other OECD countries on a minimum level of corporation I believe that we have the right balance. We are tax and not. increasing corporation tax, but only for 10% of our Similarly, new clause 19 asks the Government to review businesses and only in two years’ time. Importantly, we these changes but in a way that looks both forwards and are also accelerating and incentivising investment in backwards. As I said earlier, orthodoxies may change in businesses, which will be critical to our economic recovery. economics, and the Chancellor’scommitment to increasing Richard Thomson (Gordon) (SNP): I want to speak the headline rate seems to mark the end of a protracted to the amendments and, in particular, the new clauses period of a race to the bottom on corporation tax rates. that have been tabled in my name and those of my The Chancellor himself said on 3 March that cuts colleagues. “might not be the most effective way to drive capital investment up”. 749 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 750

[Richard Thomson] doubt that this will prompt investment. Investment is a driver of economic growth. While the UK has performed On that basis, it is very important that the Government well on growth over the last decade, it has lagged on should compare the estimated impact of corporation investment, so if investment rates can be improved, the tax changes in the Bill with the impact of the changes in UK will do even better. corporation tax rates that we have seen in each of the The Office for Budget Responsibility estimates that past 12 years. the UK will rise from 30th to first in the OECD world New clause 20 seeks a review of corporation tax rankings for business investment. That is a very positive provisions on the link between corporate profit rates thing. Being a beacon for investment is a positive, not a and ownership, and the cost of reintroducing a small negative; we should not listen to Opposition Members profits rate. We believe that the lower small profits rate on this. However, such a rise in the world rankings will introduces an unnecessary degree of complexity into not be achieved unless there is real scale to this measure. the tax system. We were unable to find specific costings For the two years that it is in place, it is estimated to for the reintroduction of the small profits rate in the amount to £25 billion. It would therefore be the largest OBR policy costings. Instead, they appear to have been business tax cut in modern British history, so there is rolled into the costings for the overall rate increase. The indeed real scale to it. Treasury should publish details of the revenue forgone through this measure for the purposes of proper scrutiny. When we talk about productivity in this place, there is a danger of speaking in jargon. What people could New clause 21 seeks a report on the impact of the take away is the message that they will have to work super deduction on progress towards the Government’s harder, do 40 hours per week instead of 38, or work in a climate emissions targets and capital investment in each team of six rather than eight but still do the same work. of the next five years. It is important that we understand What I know we mean, and what I am talking about, is properly not just the impact that the super deduction is working smarter, so that there is more economic output expected to have but the impact it actually has, because for the same input. Investment in new machinery and it is one of the most significant spending measures in the latest technology is one way to increase productivity, the Budget and a very significant giveaway to big business. and the super deduction will increase investment. The super deduction is poorly targeted, since it applies There are amendments ahead of us this evening to physical assets rather than investments in software, about measuring the impact of those policies. Those for example, and seems to mostly benefit larger companies. amendments are not necessary as the Treasury always Smaller investments are already tax-deductible under reviews the impact of its policies, but as the Treasury the annual investment allowance. OBR analysis suggests does its work it will be interesting to see the impact of that some £5 billion of the super deduction will, in any the super deduction on different parts of the country. It event, be spent on previously planned investments. It is will simply reflect the different economic mix that we hard to avoid the conclusion that this measure will have in different areas, and some will benefit more benefit larger companies in a way that does not necessarily significantly than others. I think the policy will be very drive growth in the way that the Chancellor would hope helpful in the levelling-up agenda. and certainly does not target the small and medium-sized enterprises that benefited from those deductions anyway and are the engine of growth in most parts of these Dame Margaret Hodge (Barking) (Lab) [V]: With the islands. support of a wide range of Members from across the When setting policy, it is always a good idea to know House, I tabled amendment 78. Although we will not what we are doing and why and to have the most solid put it to a vote tonight, we intend to return to the evidential base for doing so. The fact that we will not subject on Report. Sadly, I cannot look the Minister in put these measures to a vote does not diminish the the eye, but I strongly and sincerely urge him to give the significance and importance of what we propose. I can matter proper and serious consideration. A knee-jerk assure the Minister that we will return to these matters rejection to a practical idea simply because it is proposed and will look to the Government to act, even if these by Back Benchers from across Parliament would confirm matters are not addressed in the final version of the Bill. yet again that the Government listens only to the few—the powerful corporations and influential tax advisers—and Andrew Jones: One of the biggest challenges that the ignores the views of most taxpayers in Britain today. UK economy has faced for many years is its productivity. Boosting investment to stimulate growth is a vital The UK has some of the highest-calibre companies in and shared objective, especially as we emerge from the the world, among the smartest and most productive on shadows of the pandemic, but the super deduction is the planet, but outside the south-east, there are areas of both hugely expensive and poorly targeted. With a cost the UK where productivity matches parts of southern of £25 billion over two years—nearly half the total Europe. For many years there has been a long tail of annual defence budget—the Government must ensure companies whose productivity is very poor. There are proper value for hard-working taxpayers. Our amendment many causal factors in that, including skills—particularly seeks to target taxpayers’ money more effectively. Every digital—and infrastructure challenges, which I have focused new tax relief, as the Minister well knows, provides a a fair amount of my time on. One of the key issues is a new opportunity for the unscrupulous to identify loopholes lack of business investment, and one element of the and then to shirk their responsibilities and avoid paying Bill, which I shall focus upon in my few words, goes their fair share of taxes. Capital allowances have long right to the heart of tackling that: the super deduction. been fertile ground for tax avoidance. Anybody looking Until March 2023, companies can claim 130% capital online will find an army of people advertising expertise allowances, which basically means that for every £1 a in classifying expenditure to help companies to exploit company invests, its taxes are cut by up to 25p. I have no the eligibility criteria and so avoid tax. 751 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 752

With a super deduction, the opportunities for exploitation objectives and, worse, that they have often had unintended are obvious. The tax relief will last for only two years, consequences through the creation of perverse incentives. so it is unlikely to fund the aviation industry or genuinely Members have raised example after example in recent new capital investment, which takes time to plan and to years, including the entrepreneurs allowance, the patent implement. It will mainly be used to cut taxes for companies box and the tonnage tax, all of which have not only that were investing anyway, and those that will benefit failed in their objectives but lined the pockets of company most are those that have prospered the most during the directors and shareholders, exactly as my right hon. pandemic. They are the companies with oven-ready capital Friend said. Accountants, lawyers and others have been investment plans, benefiting from the increased demand using them effectively for tax avoidance. The scope for that they have enjoyed over the last torrid year—companies perverse incentives and unintended consequences is even such as BT, whose share price rose by 7% on the day the greater with these super deductions. If the Chancellor super deduction was announced, or, as others have wants a sweetener to go alongside his corporation tax mentioned, the notorious tax avoider Amazon. rises, surely at a time of rising unemployment it is more In 2019, Amazon’s UK turnover was £13.7 billion, urgent to incentivise job retention through a temporary but by claiming that its UK sales took place in Luxembourg cut to employers’ national insurance contributions rather it exported its profits and avoided corporation tax. It than introduce what has been described as this dog’s declared only a bit of profit in the UK, as the shadow dinner of untargeted super deductions in clauses 9 Minister said, on its warehousing and logistics activities. to 14. Its corporation tax contribution was less than 0.1% of Unlike Ministers,in dealing with business,I do not believe its turnover. Analysis by TaxWatch shows that even that in a something-for-nothing culture. If the Government miserly contribution would be wiped out with super are giving tax breaks to businesses, the Government, as deductions. It would write off its investment in IT guardians of the public purse and the public interest, equipment and machinery against its deliberately should demand something in return. New clause 1, in understated profits. 8.30 pm my name and those of other hon. and right hon. Members, Does the Minister really intend to fritter taxpayers’ asks simply that, in return for companies being eligible money away on bungs for global companies that do not for these super deductions, they should pay their workers pay fairly into the system? Jeff Bezos, whose personal the real living wage and should recognise trade unions fortune rose to $200 billion during the pandemic, and for collective bargaining purposes—two simple things his $1 trillion company are pocketing money from the that reflect that they are responsible employers. British taxpayer and flagrantly refusing to pay back I regret very much the Minister’s reference to these as into the system. Does the Minister really think that “burdensome” requirements. Paying a decent wage and taxpayers support this sort of daylight robbery? Our recognising trade unions are not a burden, but actually amendment would provide a straightforward way for things that enhance the role of an individual company. the Government to ensure that this did not happen. It As has been said in debate after debate,even by Government would require proper transparency, with multinational Ministers, in many instances the greater involvement of corporations showing where they undertake their economic the workers in a company increases productivity. These activity and where they make their profits as a condition are just low barriers for companies to pass. It does not of eligibility for super deductions. take long to recognise a trade union or to be accredited The House voted in favour of country-by-country as paying the living wage. Companies that do not currently reporting in 2016, as the Minister said, but that power meet these extra criteria could easily do so during the has never been enacted. Our amendment urges the passage of this Bill and its enactment. Government to use that power to ensure that this egregious I also back the Front-Bench amendments in the behaviour by companies is visible for all to see, and to name of the Leader of the Opposition, and I pay ensure that taxpayers’ money is not wasted on those tribute to my hon. Friend the Member for Ealing North who greedily grasp the nation’s money and assiduously (James Murray). He is right that companies such as avoid contributing to the public purse. Accepting our Amazon that dodge their taxes and evade their amendment would achieve two important objectives. responsibilities to their workers should not be given tax First, it would stop taxpayers’ money being squandered. breaks on top. The Chancellor of the Exchequer made Secondly, with President Biden pioneering a new global much of his compact with unions and business groups settlement for corporation tax and the EU reaching over the furlough scheme. This modest new clause 1 agreement on country-by-country reporting, it would puts in legislation the approach I am putting forward. I ensure that Britain played a leading role in developing a believe that it is within the spirit of that relationship fair and responsible global system of taxation. between Government, trade unions and employers, and John McDonnell: Following on from my right hon. I just urge the Government to think again about accepting it. Friend the Member for Barking (Dame Margaret Hodge), New clause 2, in my name and those of other hon. and I find it almost incredible that we are having this debate right hon. Members, combines a request for an evidence at all, given what we know about the track record of base for super-deductions in respect of capital allowances abuse of this type of tax deduction, as she so eloquently and to explore what economic benefits could be derived pointed out. The Minister is right to suggest that from attaching social and environmental conditions to amendment 11, tabled in my name and those of other the receipt of super deductions. I heard one hon. Member right hon. and hon. Friends, would have the effect in this debate say that the Treasury monitors these of removing the provision of capital allowance super policies and does indeed review them; unfortunately, it deductions. does not. There has been considerable evidence, and concern, Historically, tax reliefs have been introduced, and from economic think-tanks and Committees of this over the years an accumulation of tax reliefs have never House that tax reliefs have failed to deliver their stated been reviewed and never really been tested for their 753 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 754

[John McDonnell] taxpayers in a blanket way regardless of personal financial circumstances, corporation tax is only paid when profits effectiveness in the way they should be. The Office for are made—no profit, no tax due. And where profits are Budget Responsibility stated in its March “Economic made, it is of course absolutely right that a proportion and fiscal outlook” that the super deductions, as others of those profits is returned to the taxpayer, because have said, are expected to cost at least £25 billion in without the infrastructure, education, security and health total between 2021-22 and 2023-24. This is a huge services that the state provides, those businesses would commitment, and it is surely in the public interest that clearly be much less profitable. we have an assessment of policies’ effectiveness and also ensure they deliver on social and environmental goals. Members across the House like to champion small and local businesses, and rightly so. These businesses will, In new clause 6, I seek to create an evidence base on in the vast majority of cases, continue to pay the lower which this House can assess the merits and drawbacks rate of corporation tax. In my constituency, we have of the super deduction policy. The Public Accounts 2,890 registered businesses, with 88% having fewer than Committee has previously looked into the operation of 10 employees. These are not the kind of companies that UK tax reliefs, and its findings painted a worrying generally make profits exceeding a quarter of a million picture. These reliefs already cost more than £100 billion pounds a year. The corporation tax rise will only affect a year in forgone tax, and HMRC does not even know the very largest and most profitable businesses. In fact, how many reliefs exist or monitor their cost, let alone only 10% of businesses will pay the new higher rate. The their effectiveness. Let me quote my right hon. Friend Government are right to delay the increase until 2023, the Member for Barking, who is the former Chair of the as it gives companies time to plan as we emerge from a Committee. She said: period of uncertainty, but it is wrong to say that the “HM Treasury and HM Revenue and Customs…do not keep impact of the pandemic means that the change should track of those tax reliefs intended to influence behaviour. They do not take place at all. Yes, many businesses have struggled not adequately report to Parliament or the public on whether reliefs are working as intended and what they cost and whether during the pandemic, but some businesses have prospered they represent good value for money.” hugely, often due to circumstances for which they can take no credit. Online traders and the big supermarkets She went on: have seen their revenues increase substantially purely “HMRC does not effectively monitor changes in the cost of because other retailers have been legally forced to close. tax reliefs so is slow in identifying instances where a relief is being It is therefore right for the Exchequer to recoup some of exploited for a purpose” those additional revenues through taxation. These measures beyond what Parliament intended. I think that is an must therefore pass without the proposed amendments, accurate but damning indictment and one that should some of which could allow large businesses to restructure concern the whole House, but especially Treasury Ministers. to avoid the high rates of tax. New clause 6 specifically recommends that the Public Accounts Committee is tasked with reviewing the We all want UK businesses to be profitable, but we effectiveness of existing capital allowances and that this also want those profits to result in higher wages, better House then votes on the clauses that provide for super training and reinvestment in our economy so that profits deductions in the light of that evidence. I urge the can be shared fairly across society and not just concentrated Government to get a grip on the whole process of tax among shareholders or the most highly paid executives. reliefs. We have seen how they can be abused. We have In other words, we need businesses to be more productive. seen how ineffective they can be. We have also seen an Low productivity has been a thorn in the flesh of the industry develop, with accountants and lawyers who UK economy for some time.The proposed super deduction have profiteered from tax reliefs that the Government is therefore exactly the measure we need to encourage have introduced over decades. To add now to that abuse the reinvestment of profits through large-scale investment, of taxpayers’ money in this way, I deeply regret. I urge turning crisis into opportunity and setting UK businesses the Government to think again. I give the Government on a new path to innovation, productivity and growth. this warning: in a few years’ time, if the Bill goes The OBR has predicted that this will increase business through as it is now, I bet we will be returning to this investment by 9% and lift us from 30th in the OECD’s debate with example after example of how this system world rankings for business investment to first. This is has been abused, to all our cost. the right moment for this incentive, when many businesses have been forced to pivot or have seized opportunities presented by the pandemic, and now is the time to Miriam Cates (Penistone and Stocksbridge) (Con) invest. That is why I oppose the amendments to the [V]: I wish to speak to the numerous amendments and super deduction clauses, which would ultimately delay new clauses relating to corporation tax changes and the and reduce its effectiveness. new super deduction. As the previous speaker, the right hon. Member for Our economy is an ecosystem, with the private sector, Hayes and Harlington (John McDonnell), will no doubt the public sector, our communities, individual employees keenly remember, raising corporation tax was one of and employers existing interdependently in a multitude the pillars of Labour’s 2019 manifesto. We frequently of symbiotic relationships. Each element of this ecosystem hear Labour Members expressing the view that big has obligations and responsibilities to the other parts. businesses should pay their fair share of tax. I completely For businesses, these responsibilities include paying fair agree, and that is why I fully support the Government’s levels of tax and making investment decisions in the proposals to increase corporation tax with a new maximum best interests of our whole society. It is the Government’s rate of 25% for those businesses with profits of over a role to encourage businesses to act for the common quarter of million pounds from April 2023. Unlike a good. The unamended measures in this Bill will be rise in income tax or national insurance, which affects successful in doing just that. 755 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 756

8.45 pm will not make a big change to investment plans. Thirdly, a great deal of equipment is leased rather than bought Sarah Olney [V]: I wish to speak to clauses 6 and 7 outright, so investment incentives like these will make relating to the rates of corporation tax and also to the no difference. super deduction. It would have been a better policy if the expenditure Businesses everywhere, of all sizes and in many different recovered could have included measures to get our sectors, have had an extremely challenging year. As we economy to achieve net zero carbon emissions or have hopefully move into a time when business as usual can included expenditure on training and development to return, I know that Members in all parts of this House help us to build the high-skill economy that we need. are united in wanting to support businesses to flourish These expenses could then have been claimed by a far once more. But this has also been a year of unprecedented wider number of businesses in many different sectors demand on the public finances. Much of that money and made a genuine contribution to future prosperity has been directed towards households in the shape of and green growth. our furlough and SEISS schemes to ensure that incomes The Government need to be clear about their business can be sustained and, in turn, to maintain revenue for tax policy so that businesses have time to plan and an those businesses providing essential services. Many understanding of how tax policy interacts with an businesses have seen increases in revenue this year as overall strategy to support enterprise and productivity. indirect competitors have been forced to close or prevented Many of our business owners feel a real loyalty to their from making their goods and services available. Any communities and will maintain those connections regardless business that provided a digital or delivery service found of the tax rates, but they need to know that this continues an unexpected increase in demand compared with those to be a country that welcomes entrepreneurs and supports that provided an in-person service. small businesses. Much more can be done in our tax Why should the businesses that have profited from system to support small and medium-sized enterprises, the pandemic not pay their share in restoring the public and I regret that the Government have not taken the finances that have been expended on supporting us all opportunity to do this. The Liberal Democrats would through this difficult time? The Liberal Democrats have introduce a tax cut for SMEs and quadruple the annual called for an excess profits, or windfall tax so that those employment allowance to allow small businesses to businesses that have done well can contribute their employ up to five people without paying any national share to the recovery. This could most easily be done by insurance contributions. The Government have shown an immediate increase in corporation tax whereby only a lack of commitment to small and growing businesses those companies that have remained profitable would in this Bill and no strategy for private sector growth. pay it. Instead, the Government propose a sharp rise in The Liberal Democrats oppose the corporation tax corporation tax in 2023. This delayed increase will give clauses in the Bill because they mean that profitable larger companies time to rearrange their affairs, potentially corporations are not paying their fair share as we recover limiting the amount of revenue that can be captured by from this pandemic and the overall provisions do not the planned rise. It will create an artificial boost to the provide the support we need for small businesses. economy in the short term as profits are brought forward, to be reported against the lower tax rates of the next Bell Ribeiro-Addy [V]: I shall speak in favour of new couple of years. clause 9 in my name, and the amendments and new The Government’s changes to corporation tax rates clauses in the names of my right hon. Friend the Member come when the global nature of trade presents a major for Hayes and Harlington (John McDonnell) and the challenge to national autonomy on tax rates. The Liberal Labour Front Bench. Democrats are in favour of higher corporation tax rates The thread that weaves through these amendments to ensure that businesses are paying their fair share. The and new clauses is utter outrage at plans for big challenge to implementing this has always been that we corporations, including big firms that do not support are in competition with other countries attracting investment trade union rights, that pay below the living wage or by setting lower tax rates. I am interested to hear how that avoid tax, to benefit from the Chancellor’sastonishing the Government plan to react to the plans by the new super deduction tax break giveaway. In particular, new Biden Administration in the United States to set a clause 9 would require a meaningful equality impact global floor for corporation tax rates. This is a fantastic assessment of capital allowance super deductions that opportunity to introduce a fairer and more progressive must cover the impact of those provisions on households tax regime in all nations and reduce the options for at different levels of income; people with protected corporations to reduce tax. I very much hope that the characteristics; the Treasury’s compliance with the public Government will sign up to the Biden plan and set an sector equality duty; and equality in different parts of example to the rest of the world. the UK and different regions of England. The Chancellor’s most eye-catching announcement For most of us, one of the key consequences of the in the Budget was the super deduction available to pandemic has been to illuminate far-reaching health businesses over the next two years to get back 130% of and socioeconomic inequalities in many countries.However the cost of new plant and machinery.I know that this will much this Government try to conjure otherwise, it is benefit many businesses, but I fear that the impact will just a statistical and factual truth that, as a result of years be more limited than at first appears. First, it creates a of cruel Conservative austerity followed by the callous cliff edge in investment, especially when coupled with the Conservatives’handling of the covid crisis, the pandemic’s tax increase in the third year.Secondly,manymanufacturing impact has fallen disproportionately on the most vulnerable businesses invest for the long term and plan their capital individuals and along gendered, ethnic, occupational expenditure in 10-year cycles, so a two-year incentive and socioeconomic lines. 757 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 758

[Bell Ribeiro-Addy] the Financial Secretary noted in November 2020 that the existing annual investment allowance already covers Inequalities in people’s protection from and ability to 99% of all UK businesses. The House has heard this cope with this pandemic and its tremendous societal evening that the super deduction is a major tax break costs have stressed the importance and urgency of the for the top 1% of UK businesses. We have also heard societal changes needed to protect population health many concerns that it is a blunt tool in need of significant and wellbeing. According to the statement issued by refinement if its perceived benefits are to be targeted to independent experts of the special procedures of the those in greatest need of support. I also point to concerns United Nations Human Rights Council, condemning that the super deduction will disproportionately benefit the Commission on Race and Ethnic Disparities’ report: London and the south-east of England and that it flies “The reality is that People of African descent continue to in the face of the Government’s commitment to level up experience poor economic, social, and health outcomes at vastly the UK economy. disproportionate rates in the UK.” I draw the House’s attention to a finding from the Women—particularly the poorest women, black, Asian Centre for Progressive Policy, which has calculated that, and minority ethnic women, disabled women, lone parents although the super deduction could amount to a tax and young women—not only have been badly hit by the break worth up to £513 for London residents, it would pandemic, but have suffered for years under this be worth only half as much in Wales, whose sum benefit Government’s brutal austerity onslaught. Yet, coming is the second lowest of the UK nations and regions, in at an enormous £12 billion for 2021-22, the Chancellor’s with only Northern Ireland benefiting less on this measure. announcement of a super deduction on purchases of I am afraid that I disagree with other hon. Members capital goods by businesses was one of the largest who have suggested that the super deduction might, on spending items in the spring Budget. In fact, some the contrary,actually benefit and address regional inequality. argue that it is one of the largest single-year tax giveaways My fear is the opposite—that the super deduction will, ever enacted by a Government. And who will it benefit? at best, lock in existing regional inequalities and, at Although the Chancellor claimed in his speech that the worst, exacerbate rather than address the UK’sgeographical Government’s response to covid had been “fair”, women, economic imbalance. That is why Plaid Cymru wishes those on low incomes and those from BAME backgrounds to amend the Bill to require that the Chancellor considers stand to benefit the least from the untargeted tax breaks the impact and geographical extent of the super deduction for large companies through the super deduction. We across all the UK’s nation and regions and would know that more businesses—and larger ones—are owned support calls made by other hon. Members this evening by men than by women. As such, it is important to that measures should be introduced to establish a deeper recognise there are many potential equalities impacts to evidence base for these changes. Similarly, given the business taxation. urgent need for climate action and the retooling of the Incentives such as the super deduction are biggest for economy for a net zero future, this amendment also large firms and the Financial Secretary to the Treasury requires the UK Government to consider the super has admitted that only 1% of firms will benefit this year, deduction’s impact on efforts to mitigate climate change. as the rest are within the annual investment allowance. I hope that the Government will incorporate guarantees How can the Government justify the fact that under such as these into the Bill to ensure that we truly do this Bill the rich and big business will be treated to rebuild back better from the pandemic, rather than mouth-watering tax giveaways and reliefs, despite unclear resuscitate the UK’sdeeply flawed pre-pandemic economy. evidence about whether that will actually create the Failure to do so would make it clear that their rhetoric investment needed? of support for all nations, for the levelling-up agenda The Women’s Budget Group argues that this provision and for climate action are no more than fine words and is likely to have “substantial deadweight costs”, bringing lofty intentions. forward investment rather than generating new investment. The group also raised the point that it is unnecessarily Richard Fuller: It is right, as our hard-working business limited to investment in “plant and machinery”, thereby leaders emerge from the most torrid 12 months, that the excluding training and other human capital investments, Government set a clear course for their understanding and missing opportunities regarding the transition to a of how those businesses will be taxed in future. I would lower-carbon economy that recognises the economic have hoped that it would have been heartening for the benefits of spending on the social infrastructure that people who have been running businesses through these our public services provide. This goes to the crux of the most difficult times to listen in to this debate to hear problems with this Finance Bill, and with the Government’s what Members of Parliament have to say on their lack of vision for a green recovery based on intersectional behalf. However, personally speaking, I think that most socialist economics and progressive taxation. people who run businesses will be rather saddened by what they have heard—largely, a perspective that it is Ben Lake (Ceredigion) (PC): It is a pleasure to speak wrong for people to run businesses that are profitable, in this debate, Sir Charles. I rise to speak in support of that there is sin in becoming rich by creating a business amendment 53, which I hope will encourage the that creates products that people want, rather than Government to bring some rigour and meaning to their virtue,and a complete lack of understanding that businesses rhetoric of levelling up and the use of taxpayers’ money. that make profits are a sign of success, rather than a In a Budget that confirmed £17 billion of spending sign of failure. cuts, relative to March 2020 plans, the Chancellor’s Personally, I am rather in favour of us increasing decision to announce the super deduction, equivalent to taxes. When this or any Government seek to increase forgoing approximately 20% of the UK’s corporation tax on corporations, I wonder whether they realise that, tax revenues, was certainly a bold one, particularly as essentially, they are putting a tax on success—that every 759 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 760 pound that we take away from a business, from its profits, innovations from that which are profitable for it, yet we is a pound taken away from things that the business will never see any tax coming to this country from that owner may do him or herself. They might be radical practice. I therefore say to the Treasury that it is time things, such as investing in and expanding the number that we started looking at how we can place ownership of people who work for the businesses, investing in of data, like we place ownership of land and other machinery that will make their business more competitive assets, so that it is located within the realm of this in terms of exports, or lowering their debt so that they country; only then will there be an effective answer as to are on a more substantial and more stable footing for why a global corporation minimum tax from President the long term. Every time a state takes away money from Biden is on the same basis as modern digital taxes. enterprise it is putting at risk the resources those companies My final point is on an issue raised a number of times have to do those things, and the future success of this in this debate: the environmental goals we rightly wish country.Therefore the Government were right to consider from our corporations. The Department for Business, carefully how to balance a change in corporation taxes, Energy and Industrial Strategy and the Treasury are and given what has happened subsequently to the Budget, leading in the country so that the United Kingdom can the Chancellor deserves a bit of a pat on the back for be a centre for green finance and green investment, and understanding what would be going on in the global that is entirely correct. Parliament has passed a law to realm of corporation tax, as well as the crucial importance achieve net zero within a certain time frame, but we of providing some short-term incentive for businesses have not really been explicit with the public about what to invest as we emerge from the recession. the costs of that may be, although I think we understand that substantial investments will be required to achieve 9 pm it. I gently prod my right hon. Friend the Minister: in the longer term, beyond the five-year frame that we I always like to be as honest as I can, particularly have right now, my expectation is that there will be a having been a Member of Parliament on and off for the need to provide additional incentives in the form of past 10 years. I have stood on a platform where we have capital allowances or other allowances to enable the private argued for a reduction in corporate tax rates, saying sector to achieve the net zero goals and the investments that if we reduce corporate tax rates the corporate tax required for that if we proceed with the increase, as we take will go up; and now I am looking at measures in will, in overall headline corporation tax. I leave him to this Budget that say that as we increase corporate tax mull over that point. rates the overall corporate tax take will go up. It is a miraculous tax that goes up whether we cut it or increase Antony Higginbotham (Burnley) (Con): I agree with it, but such are the vagaries of public finances. almost everything my hon. Friend the Member for North East Bedfordshire (Richard Fuller) said about I listened with great interest when the shadow spokesman corporation tax. It is a tax on success, and on this side the hon. Member for Ealing North (James Murray) was of the House we are all naturally low-tax Conservatives—we speaking, and then I looked at the number of amendments believe fundamentally that businesses are most successful that have been tabled. It seems that his boss’s predecessor, when they are left to innovate and grow, and can keep the right hon. Member for Hayes and Harlington (John more of the money they earn. However, we also have to McDonnell), has a much greater active understanding accept that that is not the only thing that drives businesses. of Labour party policy on corporation tax than the Globally adaptable businesses that look around the world current Opposition Front-Bench team, and I was just at where they are going to locate their next manufacturing wondering why the name of the Leader of the Opposition plant or innovation look at myriad factors: the support was not attached to the former shadow Chancellor’s available; the skills of the local population; and the amendments. Is it because there is somehow a loss of infrastructure in place. All of those things cost money. radicalism on the Labour Front Bench—have they got As we have seen during the past 12 months,the Government frit in terms of some of the policies that their Back have gone to great lengths to support businesses. In my Benchers or former leadership wanted? constituency, 11,000 jobs have been supported by the On our Benches, it is important for us to respond to furlough scheme. That is money that has helped businesses the proposals that the United States seems to be putting across Burnley and Padiham prepare and stay ready for forward for a global minimum tax. That is not in when the economy reopens. We are also talking about essence completely wrong in principle, although I would £20 million in grants so that those same businesses can be interested if my right hon. Friend the Minister could restart as soon as the economy opens up. All businesses say if there is any precedent for UK tax policy, in this understand that; they understand that responsibility case providing for a minimum tax, to be struck in comes with this and the taxation they pay enables them international treaties, and whether the Treasury has to take part in society in a meaningful way. assessed what the implications of that would be. With all that in mind, I agree with the measures my I also urge the Treasury to realise that the crux of our right hon. Friend the Chancellor set out on corporation approach to relations with the global multinationals, tax, as a low-tax Conservative. I do so because the particularly the digital multinationals, is that a substantial Chancellor has struck exactly the right balance in making amount of the wealth created and the profits generated sure we secure the economic recovery first: we do not is not directly associated with or tied to the sales in any look at businesses now as they are just starting to one country. Therefore, there is a bit of bait and switch reopen and get trading again and say, “Just because you with the US proposing a global minimum tax as somehow are profitable, we are going to increase your tax rate a solution to the need for a digital sales tax. For immediately”; we look ahead and say,“When the economy example, Google makes tremendous amounts of profits has recovered and you are trading as you were pre- from having access to how people look at things online. pandemic, that is when we will look for you to make a It does not necessarily sell that in terms of ads, which fair contribution to repay some of the support we have could be taxed locally, but it can derive products and been able to put in place.” 761 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 762

[Antony Higginbotham] I would have no problem if such businesses desperately required the relief in order to protect jobs or to invest in In Burnley and Padiham, we are heavily reliant on small our local economies, but let us look at some of the and medium-sized enterprises—those small innovators. potential beneficiaries. Amazon has benefited from the As we recover from the pandemic, we often see the most pandemic, seeing its sales jump by 50%. According to SMEs and new businesses start up; people who used to TaxWatch, the company’s latest accounts show that work for one company and who may have been made they spent £66.8 million on plant and machinery, redundant—something may have happened—then start £80.4 million on office equipment and £15.3 million on their own businesses. That is why the small profits rate computer equipment in the same year, so the 130% super of corporation tax is so important, because it is the deduction could entirely account for the pre-tax profits incentive those innovators and entrepreneurs need to of the company even before any deductions of staff pay start their business, to grow, to employ someone else. awards. We also have to recognise that one thing we have Similarly, many energy and water companies find suffered from historically in the UK, for many, many themselves also able to wipe out their tax bill. United years, is low productivity, and that has come from a Utilities spent £1.275 billion on property, plant and huge lack of investment from businesses. If we are equipment in the past two years, compared with a really going to level up across the country, we need to current tax liability of just under £89 million. Electricity drive investment in growth and utilise the power the North West stated that covid has had a limited impact, private sector has through whatever means are available and it had a tax bill of £45 million for 2019-20 while to us. We know that since 2007-08 there has been a investing £449 million in property, plant and equipment. systemic lack of investment, driven by the uncertainty For both companies, it would only take a small proportion we have had, so that there is a pot of money that so of the capital investment to be spent on plant and many businesses are sitting on, waiting to be unlocked. equipment to use the super deduction to eradicate their That is where the super deduction will prove so important, tax bill, too. because it encourages those businesses that have had a stockpile—that have lived with uncertainty for the best Do these buoyant companies really need a super part of a decade and so have not been able to invest, as deduction? The answer is no. In the absence of any clear they have not had that confidence. As we emerge from conditions specifying the use of such savings or providing the pandemic, the super deduction gives them the confidence a wider social benefit, such as increasing salaries for to invest. workers, investing in decarbonisation or reducing costs for end consumers, I struggle to see the benefits being In Burnley,we are talking about aerospace manufacturers, passed on to anyone other than shareholders. automotive manufacturers and textile makers. The super deductionwillhelpbusinessestransitiontogreentechnology, I hope that the Government support amendment 11 as we have spoken about. It will help aerospace businesses and new clauses 1, 2 and 6 in the name of my right hon. to move into HS2 and textile companies to move into Friend the Member for Hayes and Harlington and weaving—we do still make textiles here in the UK. others, as well as the Labour Front-Bench amendments, because there are companies that do need support to All of these things will result in a high-skill, high-wage help them recover from the pandemic. There is a real manufacturing economy here in the UK. So, yes, we need to support long-term, patient investment by industry, need to keep the UK attractive to investment, job but the untargeted nature of this relief, without conditions, creation and new businesses, but we do that through a is not the best use of public money. In fact, it borders on fair corporation tax system, lower rates for new businesses the obscene. and using schemes such as the super deduction to drive investment into manufacturing jobs, which are going to be so vital for our future. Rachel Hopkins (Luton South) (Lab) [V]: I shall speak in support of the amendments in the name of the Rebecca Long Bailey [V]: I will limit my comments to Leader of the Opposition and those in the name of my the super deduction which, as we have already heard right hon. Friend the Member for Hayes and Harlington today, will be one of the largest single-year tax giveaways (John McDonnell). The Budget and Finance Bill ever enacted in the UK. Arguably, some companies’ represent the Government taking steps towards further corporation tax bills will be wiped out entirely for a structuring our economy on insecure, precarious work couple of years. and deregulation, which will widen income and wealth My right hon. Friend the Member for Hayes and inequality. Harlington (John McDonnell) has already said that the The Government’s unambitious plan provides neither Public Accounts Committee found that tax reliefs cost a foundation for rebuilding our economy nor a plan to more than £100 billion a year in forgone tax, but tackle the climate emergency that my constituents have HMRC does not know how many reliefs exist; nor does called for. They have announced a future cut to social it monitor the efficacy of such reliefs. That is staggering. security and a real-terms pay cut for public sector Can we be confident that HMRC will know what effect workers at the same time as introducing a super deduction the super deduction will have, and who will actually tax cut for big businesses, allowing firms to write off benefit from it? Many of my small and medium-sized 130% of the value of qualifying capital investment enterprises in Salford would love a super deduction, but against their taxes. sadly it will not benefit them. The Financial Secretary to the Treasury told the House last year that the enhanced When we look across the Atlantic to the US, we see a annual investment allowance of £1 million already covers stark contrast. The Biden Administration have committed the capital expenses of 99% of businesses in the UK, so to fast-tracking a $1.9 trillion Government-led stimulus it seems that this super-relief will overwhelmingly benefit package, which is about 10% of the annual output of only 1% of extremely large businesses. the US economy and which contained no promises of 763 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 764 future deficit reduction. That is alongside a forward-looking The hon. Member for Salford and Eccles (Rebecca Long plan to spend a further $2 trillion on infrastructure. Bailey) put the matter at its most plain when she argued Biden’s spending plan, in proportion to GDP, is three that because 99% of businesses benefit from the annual times the size of the UK’s. investment allowance, it meant the super deduction benefited only the remaining 1%. Of course, that is completely wrong. The super deduction benefits all 9.15 pm businesses that are in a position to take advantage of The economic consensus is changing, but the Budget the eligible deduction it provides, and that is better than shows that the Government have not caught on. Instead, the annual investment allowance. The whole premise of they have made it clear that low pay and increasing the arguments advanced by the Opposition is wrong. inequality are central parts of the UK’s future under The fact is that tax reliefs are an understood and the Conservative party. The so-called super deduction established part of tax policy; they are not to be thought tax cut will completely wipe out the corporation tax bill of merely as giveaways. A raft of international authorities for big businesses. It will cost £12.2 billion and £12.7 billion have testified to the benefits of greater investment in the 2022 and 2023 financial years, the equivalent of allowances, including full expensing, and our proposal giving up 20% of the UK’s corporation tax revenues, goes some way beyond that. We need to see it in that and it comes after a year in which many of these context. companies have profited hugely. The UK already has a rather competitive intangibles The policy’s rationale is fundamentally flawed. It will regime, and the productivity challenge that we face as a make no difference to investment in the long run. It just country is focused on the tangible assets and therefore it influences when businesses decide to invest, rather than is on those that this super deduction is aimed. encourages them to invest more, and it relinquishes tax The hon. Member for Ealing North repeated the line revenue in doing so. Treasury Ministers have openly about small businesses, but also asked whether the admitted that only 1% of businesses will benefit fully super deduction was somehow extremely vulnerable to from the super deduction this year. So a small number exploitation by malfeasant tax actors. I can tell him that of businesses, including Amazon, will get a tax giveaway the deduction has been very carefully assessed and that could result in rebates being handed out for investing includes important exclusions, including as to related in, say, swimming pools or jacuzzis. The policy also flies party transactions and second-hand assets. It also includes in the face of any credible levelling-up strategy, as it will a new anti-avoidance provision, which is designed to exacerbate regional inequality. As we heard, the Centre give it additional protections. for Progressive Policy has found that the super deduction tax cut will benefit London the most, with a tax break It is true that this is a country that takes the question of £513 per head compared with £371 per head in the of tax avoidance and tax manipulation extremely seriously. east of England. The right hon. Member for Barking (Dame Margaret The policy is wasteful and wide open to abuse, and Hodge), who has been a great campaigner in this area, fails to understand the rebuilding challenge before us. focused on that. Of course I cannot discuss individual Even the US is moving away from this under Biden, and taxpayers. No one knows what an individual company’s the public agree with us. Weneed Government investment taxpaying arrangements are. She purported to know—that in jobs and growth, not tax giveaways. The Government is her privilege—but I am not in a position to discuss must publish a report examining the policy’s economic, that. None the less, I can tell her that it would be very social and environmental impact. While it is unlikely bad policy indeed for any Government to base tax the Government will change tack, at the very minimum policy on a single employer or taxpayer. If she thinks there must be strict criteria for access to the scheme. that this country has been soft in any respect on tax, let Workers need a cast-iron commitment that only employers me remind her that we have led the international charge that recognise a trade union for the purposes of collective on base erosion and profit shifting, on diverted profits bargaining and that are certified by the Living Wage taxes, and on the corporate interest tax restriction. We Foundation as a living wage employer can access the have put into law a digital services tax and are consulting scheme. It is not a big ask to expect big businesses to be on an online sales tax. That is not the action of a decent employers, and it would at the very least ensure Government who take these things in any way other that workers receive some benefit from this giveaway than very seriously. scheme. I join my hon. Friend the Member for North East We need a Government who are on the side of Bedfordshire (Richard Fuller) in emphasising, as he working people, not on the side of big businesses enforcing rightly did, that we need businesses to be as productive, low pay and poor working conditions.I hope the Chancellor effective and successful as possible, because they are the and Ministers will seriously consider the super deduction anchors of successful and effective employment and of tax cut and instead ensure that increased public spending the profit generation on which our tax base, and therefore directly benefits workers, who are the driving force of the funding we need to support public services, rely. It our recovery. does not follow from the fact that the Labour party is confused on corporate taxation that we should not have a policy that supports business in developing, investing Jesse Norman: I am grateful for the contributions and building our collective economic future. that have been made to this debate. It saddened me, however, that Labour Members seemed to be reading Question put and agreed to. off a single piece of paper in so many of their speeches. Clause 6 accordingly ordered to stand part of the Bill. I encourage them not to follow the script slavishly but to actually think about what they say. Clauses 7 and 8 ordered to stand part of the Bill. 765 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 766

Clause 9 Glindon, Mary McLaughlin, Anne Grady, Patrick McMahon, Jim SUPER-DEDUCTIONS AND OTHER TEMPORARY FIRST- Grant, Peter McMorrin, Anna Green, Kate Mearns, Ian YEAR ALLOWANCES Greenwood, Lilian Miliband, rh Edward Amendment proposed: 79, in clause 9, page 4, line 2, at Greenwood, Margaret Mishra, Navendu end insert: Griffith, Nia Monaghan, Carol “provided that any such company which has more than £1 million Gwynne, Andrew Moran, Layla in qualifying expenditure must also— Haigh, Louise Morden, Jessica (i) adhere to International Labour Organisation convention 98 Hamilton, Fabian Morgan, Stephen on the right to organise and collective bargaining, Hanna, Claire Morris, Grahame (ii) be certified or be in the process of being certified by the Hardy, Emma Murray, Ian Living Wage Foundation as a living wage employer, and Harman, rh Ms Harriet Murray, James Harris, Carolyn Nandy, Lisa (iii) not be liable to the digital services tax”.—(James Murray.) Hayes, Helen Newlands, Gavin This amendment would, in respect of companies with qualifying Healey, rh John Nichols, Charlotte expenditure of over £1 million, add conditions relating to ILO Hendrick, Sir Mark Nicolson, John convention 98, the living wage and the digital services tax. Hendry, Drew Norris, Alex Question put, That the amendment be made. Hillier, Meg O’Hara, Brendan Hobhouse, Wera Olney, Sarah The Committee divided: Ayes 260, Noes 365. Hodge, rh Dame Margaret Onwurah, Chi Division No. 264] [9.22 pm Hodgson, Mrs Sharon Oppong-Asare, Abena Hollern, Kate Osamor, Kate AYES Hopkins, Rachel Osborne, Kate Hosie, rh Stewart Oswald, Kirsten Abbott, rh Ms Diane Corbyn, rh Jeremy Howarth, rh Sir George Owatemi, Taiwo Abrahams, Debbie Cowan, Ronnie Huq, Dr Rupa Owen, Sarah Ali, Rushanara Coyle, Neil Hussain, Imran Peacock, Stephanie Ali, Tahir Crawley, Angela Jardine, Christine Pennycook, Matthew Allin-Khan, Dr Rosena Creasy, Stella Jarvis, Dan Perkins, Mr Toby Amesbury, Mike Cruddas, Jon Johnson, rh Dame Diana Phillips, Jess Anderson, Fleur Cryer, John Johnson, Kim Phillipson, Bridget Antoniazzi, Tonia Cummins, Judith Jones, Darren Pollard, Luke Ashworth, rh Jonathan Cunningham, Alex Jones, Gerald Powell, Lucy Bardell, Hannah Daby, Janet Jones, rh Mr Kevan Qureshi, Yasmin Barker, Paula Davey, rh Ed Jones, Ruth Rayner, rh Angela Beckett, rh Margaret David, Wayne Jones, Sarah Reed, Steve Begum, Apsana Davies, Geraint Kane, Mike Rees, Christina Benn, rh Hilary Davies-Jones, Alex Keeley, Barbara Reeves, Ellie Betts, Mr Clive Day, Martyn Kendall, Liz Reeves, Rachel Black, Mhairi De Cordova, Marsha Khan, Afzal Reynolds, Jonathan Blackford, rh Ian Debbonaire, Thangam Kinnock, Stephen Ribeiro-Addy, Bell Blackman, Kirsty Dhesi, Mr Tanmanjeet Singh Kyle, Peter Rimmer, Ms Marie Blake, Olivia Docherty-Hughes, Martin Lake, Ben Rodda, Matt Blomfield, Paul Dodds, Anneliese Lammy, rh Mr David Russell-Moyle, Lloyd Bonnar, Steven Doogan, Dave Lavery, Ian Saville Roberts, rh Liz Brabin, Tracy Dorans, Allan Law, Chris Shah, Naz Bradshaw, rh Mr Ben Doughty, Stephen Lewell-Buck, Mrs Emma Sharma, Mr Virendra Brennan, Kevin Dowd, Peter Lewis, Clive Sheerman, Mr Barry Brock, Deidre Dromey, Jack Linden, David Sheppard, Tommy Brown, Alan Duffield, Rosie Lloyd, Tony Siddiq, Tulip Brown, Ms Lyn Eagle, Dame Angela Long Bailey, Rebecca Slaughter, Andy Brown, rh Mr Nicholas Eagle, Maria Lucas, Caroline Smith, Alyn Bryant, Chris Eastwood, Colum Lynch, Holly Smith, Cat Buck, Ms Karen Edwards, Jonathan MacNeil, Angus Brendan Smith, Nick Burgon, Richard Efford, Clive Madders, Justin Smyth, Karin Butler, Dawn Elliott, Julie Mahmood, Mr Khalid Sobel, Alex Byrne, Ian Elmore, Chris Mahmood, Shabana Spellar, rh John Byrne, rh Liam Eshalomi, Florence Malhotra, Seema Starmer, rh Keir Cadbury, Ruth Esterson, Bill Maskell, Rachael Stephens, Chris Callaghan, Amy Evans, Chris Cameron, Dr Lisa Farron, Tim Matheson, Christian Stevens, Jo Campbell, rh Sir Alan Farry, Stephen Mc Nally, John Stone, Jamie Carden, Dan Fellows, Marion McCabe, Steve Streeting, Wes Carmichael, rh Mr Alistair Ferrier, Margaret McCarthy, Kerry Stringer, Graham Chamberlain, Wendy Fletcher, Colleen McDonald, Andy Sultana, Zarah Champion, Sarah Flynn, Stephen McDonald, Stewart Malcolm Tarry, Sam Chapman, Douglas Fovargue, Yvonne McDonald, Stuart C. Thewliss, Alison Cherry, Joanna Foxcroft, Vicky McDonnell, rh John Thomas, Gareth Clark, Feryal Foy, Mary Kelly McFadden, rh Mr Pat Thomas-Symonds, rh Nick Cooper, Daisy Gardiner, Barry McGinn, Conor Thompson, Owen Cooper, Rosie Gibson, Patricia McGovern, Alison Thomson, Richard Cooper, rh Yvette Gill, Preet Kaur McKinnell, Catherine Thornberry, rh Emily 767 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 768

Timms, rh Stephen Whitley, Mick Fletcher, Mark Johnson, Gareth Trickett, Jon Whittome, Nadia Fletcher, Nick Johnston, David Turner, Karl Williams, Hywel Ford, Vicky Jones, Andrew Twigg, Derek Wilson, Munira Foster, Kevin Jones, rh Mr David Twist, Liz Winter, Beth Fox, rh Dr Liam Jones, Fay Vaz, rh Valerie Wishart, Pete Francois, rh Mr Mark Jones, Mr Marcus Webbe, Claudia Yasin, Mohammad Frazer, rh Lucy Jupp, Simon West, Catherine Zeichner, Daniel Freeman, George Kawczynski, Daniel Western, Matt Tellers for the Ayes: Freer, Mike Kearns, Alicia Whitehead, Dr Alan Mark Tami and Fuller, Richard Keegan, Gillian Whitford, Dr Philippa Bambos Charalambous Fysh, Mr Marcus Knight, rh Sir Greg Gale, rh Sir Roger Knight, Julian Garnier, Mark Kruger, Danny NOES Ghani, Ms Nusrat Kwarteng, rh Kwasi Adams, Nigel Cates, Miriam Gibb, rh Nick Lamont, John Afolami, Bim Chalk, Alex Gibson, Peter Largan, Robert Afriyie, Adam Chishti, Rehman Gideon, Jo Latham, Mrs Pauline Ahmad Khan, Imran Churchill, Jo Girvan, Paul Leadsom, rh Andrea Aiken, Nickie Clark, rh Greg Glen, John Leigh, rh Sir Edward Aldous, Peter Clarke, Mr Simon Goodwill, rh Mr Robert Levy, Ian Allan, Lucy Clarke, Theo Gove, rh Michael Lewer, Andrew Amess, Sir David Clarke-Smith, Brendan Graham, Richard Lewis, rh Brandon Anderson, Lee Clarkson, Chris Grant, Mrs Helen Lewis, rh Dr Julian Anderson, Stuart Cleverly, rh James Gray, James Liddell-Grainger, Mr Ian Andrew, rh Stuart Clifton-Brown, Sir Geoffrey Grayling, rh Chris Lockhart, Carla Ansell, Caroline Coffey, rh Dr Thérèse Green, Chris Loder, Chris Argar, Edward Colburn, Elliot Green, rh Damian Logan, Mark Atherton, Sarah Collins, Damian Griffith, Andrew Longhi, Marco Atkins, Victoria Costa, Alberto Griffiths, Kate Lopez, Julia Bacon, Gareth Courts, Robert Grundy, James Lopresti, Jack Bacon, Mr Richard Coutinho, Claire Gullis, Jonathan Lord, Mr Jonathan Badenoch, Kemi Cox, rh Sir Geoffrey Halfon, rh Robert Loughton, Tim Bailey, Shaun Crabb, rh Stephen Hall, Luke Mackinlay, Craig Baillie, Siobhan Crosbie, Virginia Hammond, Stephen Mackrory, Cherilyn Baker, Duncan Crouch, Tracey Hancock, rh Matt Maclean, Rachel Baker, Mr Steve Daly, James Hands, rh Greg Mak, Alan Baldwin, Harriett Davies, David T. C. Harper, rh Mr Mark Malthouse, Kit Barclay, rh Steve Davies, Gareth Harris, Rebecca Mangnall, Anthony Baron, Mr John Davies, Dr James Harrison, Trudy Mann, Scott Baynes, Simon Davies, Mims Hart, Sally-Ann Marson, Julie Bell, Aaron Davies, Philip Hart, rh Simon May, rh Mrs Theresa Benton, Scott Davis, rh Mr David Hayes, rh Sir John Mayhew, Jerome Beresford, Sir Paul Davison, Dehenna Heald, rh Sir Oliver Maynard, Paul Berry, rh Jake Dinenage, Caroline Heappey, James McCartney, Jason Bhatti, Saqib Dines, Miss Sarah Heaton-Harris, Chris McCartney, Karl Blackman, Bob Djanogly, Mr Jonathan Henderson, Gordon McPartland, Stephen Blunt, Crispin Docherty, Leo Henry, Darren McVey, rh Esther Bone, Mr Peter Donaldson, rh Sir Jeffrey M. Higginbotham, Antony Menzies, Mark Bottomley, Sir Peter Donelan, Michelle Hinds, rh Damian Mercer, Johnny Bowie, Andrew Dorries, Ms Nadine Hoare, Simon Merriman, Huw Bradley, Ben Double, Steve Holden, Mr Richard Metcalfe, Stephen Bradley, rh Karen Dowden, rh Oliver Hollinrake, Kevin Millar, Robin Brady, Sir Graham Doyle-Price, Jackie Hollobone, Mr Philip Miller, rh Mrs Maria Braverman, rh Suella Drax, Richard Holloway, Adam Milling, rh Amanda Brereton, Jack Drummond, Mrs Flick Holmes, Paul Mills, Nigel Bridgen, Andrew Duddridge, James Howell, John Mitchell, rh Mr Andrew Brine, Steve Duguid, David Howell, Paul Mohindra, Mr Gagan Bristow, Paul Duncan Smith, rh Sir Iain Huddleston, Nigel Moore, Damien Britcliffe, Sara Dunne, rh Philip Hudson, Dr Neil Moore, Robbie Brokenshire, rh James Eastwood, Mark Hughes, Eddie Mordaunt, rh Penny Browne, Anthony Edwards, Ruth Hunt, Jane Morris, Anne Marie Bruce, Fiona Ellis, rh Michael Hunt, rh Jeremy Morris, David Buchan, Felicity Ellwood, rh Mr Tobias Hunt, Tom Morrissey, Joy Buckland, rh Robert Elphicke, Mrs Natalie Jack, rh Mr Alister Morton, Wendy Burghart, Alex Eustice, rh George Javid, rh Sajid Mullan, Dr Kieran Burns, rh Conor Evans, Dr Luke Jayawardena, Mr Ranil Mumby-Croft, Holly Butler, Rob Evennett, rh Sir David Jenkin, Sir Bernard Mundell, rh David Cairns, rh Alun Everitt, Ben Jenkinson, Mark Murray, Mrs Sheryll Campbell, Mr Gregory Fabricant, Michael Jenkyns, Andrea Murrison, rh Dr Andrew Carter, Andy Farris, Laura Jenrick, rh Robert Neill, Sir Robert Cartlidge, James Fell, Simon Johnson, rh Boris Nici, Lia Cash, Sir William Fletcher, Katherine Johnson, Dr Caroline Nokes, rh Caroline 769 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 770

Norman, rh Jesse Stephenson, Andrew (2) A review under this section must estimate the expected O’Brien, Neil Stevenson, Jane impact of sections 9 to 14 and schedule 1 on— Offord, Dr Matthew Stevenson, John (a) levels of artificial tax avoidance, Opperman, Guy Stewart, rh Bob (b) levels of tax evasion, reducing the tax gap in each tax Parish, Neil Stewart, Iain year from 2021–22 to 2025–26, and Patel, rh Priti Streeter, Sir Gary (c) levels of gross fixed capital formation by businesses in Paterson, rh Mr Owen Stride, rh Mel each tax year from 2021–22 to 2025–26. Pawsey, Mark Stuart, Graham Penning, rh Sir Mike Sturdy, Julian (3) The first review under this section must also consider levels of usage of the recovery loan scheme in 2021.”—(James Murray.) Penrose, John Sunak, rh Rishi Percy, Andrew Sunderland, James This new clause would require the Government to review the impact Philp, Chris Swayne, rh Sir Desmond of the provisions relating to super-deductions and publish regular Pincher, rh Christopher Syms, Sir Robert reports setting out their findings. Poulter, Dr Dan Thomas, Derek Brought up, and read the First time. Pow, Rebecca Throup, Maggie Question put, That the clause be read a Second time. Prentis, Victoria Timpson, Edward The Committee divided: Ayes 260, Noes 365. Pritchard, rh Mark Tolhurst, Kelly Pursglove, Tom Tomlinson, Justin Division No. 265] [9.33 pm Quin, Jeremy Tomlinson, Michael AYES Quince, Will Tracey, Craig Abbott, rh Ms Diane Cruddas, Jon Raab, rh Dominic Trevelyan, rh Anne-Marie Abrahams, Debbie Cryer, John Randall, Tom Trott, Laura Ali, Rushanara Cummins, Judith Redwood, rh John Truss, rh Elizabeth Ali, Tahir Cunningham, Alex Rees-Mogg, rh Mr Jacob Tugendhat, Tom Allin-Khan, Dr Rosena Daby, Janet Richards, Nicola Vara, Shailesh Amesbury, Mike Davey, rh Ed Richardson, Angela Vickers, Martin Anderson, Fleur David, Wayne Roberts, Rob Vickers, Matt Antoniazzi, Tonia Davies, Geraint Robertson, Mr Laurence Villiers, rh Theresa Ashworth, rh Jonathan Davies-Jones, Alex Robinson, Gavin Wakeford, Christian Bardell, Hannah Day, Martyn Robinson, Mary Walker, Mr Robin Barker, Paula De Cordova, Marsha Rosindell, Andrew Wallace, rh Mr Ben Beckett, rh Margaret Debbonaire, Thangam Ross, Douglas Begum, Apsana Dhesi, Mr Tanmanjeet Singh Rowley, Lee Wallis, Dr Jamie Benn, rh Hilary Docherty-Hughes, Martin Russell, Dean Warburton, David Betts, Mr Clive Dodds, Anneliese Rutley, David Warman, Matt Black, Mhairi Doogan, Dave Sambrook, Gary Watling, Giles Blackford, rh Ian Dorans, Allan Saxby, Selaine Webb, Suzanne Blackman, Kirsty Doughty, Stephen Scully, Paul Whately, Helen Blake, Olivia Dowd, Peter Seely, Bob Wheeler, Mrs Heather Blomfield, Paul Dromey, Jack Selous, Andrew Whittaker, Craig Bonnar, Steven Duffield, Rosie Shannon, Jim Whittingdale, rh Mr John Brabin, Tracy Eagle, Dame Angela Shapps, rh Grant Wiggin, Bill Bradshaw, rh Mr Ben Eagle, Maria Sharma, rh Alok Wild, James Brennan, Kevin Eastwood, Colum Shelbrooke, rh Alec Williams, Craig Brock, Deidre Edwards, Jonathan Simmonds, David Williamson, rh Gavin Brown, Alan Efford, Clive Skidmore, rh Chris Wilson, rh Sammy Brown, Ms Lyn Elliott, Julie Smith, Chloe Wood, Mike Brown, rh Mr Nicholas Elmore, Chris Smith, Greg Wragg, Mr William Bryant, Chris Eshalomi, Florence Smith, Henry Wright, rh Jeremy Buck, Ms Karen Esterson, Bill Smith, rh Julian Young, Jacob Burgon, Richard Evans, Chris Smith, Royston Zahawi, Nadhim Butler, Dawn Farron, Tim Solloway, Amanda Byrne, Ian Farry, Stephen Spencer, Dr Ben Tellers for the Noes: Byrne, rh Liam Fellows, Marion Spencer, rh Mark James Morris and Cadbury, Ruth Ferrier, Margaret Stafford, Alexander Maria Caulfield Callaghan, Amy Fletcher, Colleen Cameron, Dr Lisa Flynn, Stephen Question accordingly negatived. Campbell, rh Sir Alan Fovargue, Yvonne The list of Members currently certified as eligible for a Carden, Dan Foxcroft, Vicky proxy vote, and of the Members nominated as their proxy, Carmichael, rh Mr Alistair Foy, Mary Kelly is published at the end of today’s debates. Chamberlain, Wendy Gardiner, Barry Champion, Sarah Gibson, Patricia Clause 9 ordered to stand part of the Bill. Chapman, Douglas Gill, Preet Kaur Clauses 10 to 14 ordered to stand part of the Bill. Cherry, Joanna Glindon, Mary Schedule 1 agreed to. Clark, Feryal Grady, Patrick Cooper, Daisy Grant, Peter New Clause 24 Cooper, Rosie Green, Kate Cooper, rh Yvette Greenwood, Lilian REVIEW OF SUPER-DEDUCTIONS Corbyn, rh Jeremy Greenwood, Margaret “(1) The Chancellor of the Exchequer must review the impact Cowan, Ronnie Griffith, Nia of sections 9 to 14 and schedule 1 of this Act and lay a report of Coyle, Neil Gwynne, Andrew that review before the House of Commons within six months of Crawley, Angela Haigh, Louise the passing of this Act, and then annually for five further years. Creasy, Stella Hamilton, Fabian 771 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 772

Hanna, Claire Morris, Grahame Whitford, Dr Philippa Wishart, Pete Hardy, Emma Murray, Ian Whitley, Mick Yasin, Mohammad Harman, rh Ms Harriet Murray, James Whittome, Nadia Zeichner, Daniel Harris, Carolyn Nandy, Lisa Williams, Hywel Tellers for the Ayes: Hayes, Helen Newlands, Gavin Wilson, Munira Mark Tami and Healey, rh John Nichols, Charlotte Winter, Beth Bambos Charalambous Hendrick, Sir Mark Nicolson, John Hendry, Drew Norris, Alex Hillier, Meg O’Hara, Brendan NOES Hobhouse, Wera Olney, Sarah Adams, Nigel Clarke, Mr Simon Hodge, rh Dame Margaret Onwurah, Chi Afolami, Bim Clarke, Theo Hodgson, Mrs Sharon Oppong-Asare, Abena Afriyie, Adam Clarke-Smith, Brendan Hollern, Kate Osamor, Kate Ahmad Khan, Imran Clarkson, Chris Hopkins, Rachel Osborne, Kate Aiken, Nickie Cleverly, rh James Hosie, rh Stewart Oswald, Kirsten Aldous, Peter Clifton-Brown, Sir Geoffrey Howarth, rh Sir George Owatemi, Taiwo Allan, Lucy Coffey, rh Dr Thérèse Huq, Dr Rupa Owen, Sarah Amess, Sir David Colburn, Elliot Hussain, Imran Peacock, Stephanie Anderson, Lee Collins, Damian Jardine, Christine Pennycook, Matthew Anderson, Stuart Costa, Alberto Jarvis, Dan Perkins, Mr Toby Andrew, rh Stuart Courts, Robert Johnson, rh Dame Diana Phillips, Jess Ansell, Caroline Coutinho, Claire Johnson, Kim Phillipson, Bridget Argar, Edward Cox, rh Sir Geoffrey Jones, Darren Pollard, Luke Atherton, Sarah Crabb, rh Stephen Jones, Gerald Powell, Lucy Atkins, Victoria Crosbie, Virginia Jones, rh Mr Kevan Qureshi, Yasmin Bacon, Gareth Crouch, Tracey Jones, Ruth Rayner, rh Angela Bacon, Mr Richard Daly, James Jones, Sarah Reed, Steve Badenoch, Kemi Davies, David T. C. Kane, Mike Rees, Christina Bailey, Shaun Davies, Gareth Keeley, Barbara Reeves, Ellie Baillie, Siobhan Davies, Dr James Kendall, Liz Reeves, Rachel Baker, Duncan Davies, Mims Khan, Afzal Reynolds, Jonathan Baker, Mr Steve Davies, Philip Kinnock, Stephen Ribeiro-Addy, Bell Baldwin, Harriett Davis, rh Mr David Kyle, Peter Rimmer, Ms Marie Barclay, rh Steve Davison, Dehenna Lake, Ben Rodda, Matt Baron, Mr John Dinenage, Caroline Lammy, rh Mr David Russell-Moyle, Lloyd Baynes, Simon Dines, Miss Sarah Lavery, Ian Saville Roberts, rh Liz Bell, Aaron Djanogly, Mr Jonathan Law, Chris Shah, Naz Benton, Scott Docherty, Leo Lewell-Buck, Mrs Emma Sharma, Mr Virendra Beresford, Sir Paul Donaldson, rh Sir Jeffrey M. Lewis, Clive Sheerman, Mr Barry Berry, rh Jake Donelan, Michelle Linden, David Sheppard, Tommy Bhatti, Saqib Dorries, Ms Nadine Lloyd, Tony Siddiq, Tulip Blackman, Bob Double, Steve Long Bailey, Rebecca Slaughter, Andy Blunt, Crispin Dowden, rh Oliver Lucas, Caroline Smith, Alyn Bone, Mr Peter Doyle-Price, Jackie Lynch, Holly Smith, Cat Bottomley, Sir Peter Drax, Richard MacNeil, Angus Brendan Smith, Nick Bowie, Andrew Drummond, Mrs Flick Madders, Justin Smyth, Karin Bradley, Ben Duddridge, James Mahmood, Mr Khalid Sobel, Alex Bradley, rh Karen Duguid, David Mahmood, Shabana Spellar, rh John Brady, Sir Graham Duncan Smith, rh Sir Iain Malhotra, Seema Starmer, rh Keir Braverman, rh Suella Dunne, rh Philip Maskell, Rachael Stephens, Chris Brereton, Jack Eastwood, Mark Matheson, Christian Stevens, Jo Bridgen, Andrew Edwards, Ruth Mc Nally, John Stone, Jamie Brine, Steve Ellis, rh Michael McCabe, Steve Streeting, Wes Bristow, Paul Ellwood, rh Mr Tobias McCarthy, Kerry Stringer, Graham Britcliffe, Sara Elphicke, Mrs Natalie McDonald, Andy Sultana, Zarah Brokenshire, rh James Eustice, rh George McDonald, Stewart Malcolm Tarry, Sam Browne, Anthony Evans, Dr Luke McDonald, Stuart C. Thewliss, Alison Bruce, Fiona Evennett, rh Sir David McDonnell, rh John Thomas, Gareth Buchan, Felicity Everitt, Ben McFadden, rh Mr Pat Thomas-Symonds, rh Nick Buckland, rh Robert Fabricant, Michael McGinn, Conor Thompson, Owen Burghart, Alex Farris, Laura McGovern, Alison Thomson, Richard Burns, rh Conor Fell, Simon McKinnell, Catherine Thornberry, rh Emily Butler, Rob Fletcher, Katherine McLaughlin, Anne Timms, rh Stephen Cairns, rh Alun Fletcher, Mark McMahon, Jim Trickett, Jon Campbell, Mr Gregory Fletcher, Nick McMorrin, Anna Turner, Karl Carter, Andy Ford, Vicky Mearns, Ian Twigg, Derek Cartlidge, James Foster, Kevin Miliband, rh Edward Twist, Liz Cash, Sir William Fox, rh Dr Liam Mishra, Navendu Vaz, rh Valerie Cates, Miriam Francois, rh Mr Mark Monaghan, Carol Webbe, Claudia Chalk, Alex Frazer, rh Lucy Moran, Layla West, Catherine Chishti, Rehman Freeman, George Morden, Jessica Western, Matt Churchill, Jo Freer, Mike Morgan, Stephen Whitehead, Dr Alan Clark, rh Greg Fuller, Richard 773 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 774

Fysh, Mr Marcus Knight, rh Sir Greg Percy, Andrew Streeter, Sir Gary Gale, rh Sir Roger Knight, Julian Philp, Chris Stride, rh Mel Garnier, Mark Kruger, Danny Pincher, rh Christopher Stuart, Graham Ghani, Ms Nusrat Kwarteng, rh Kwasi Poulter, Dr Dan Sturdy, Julian Gibb, rh Nick Lamont, John Pow, Rebecca Sunak, rh Rishi Gibson, Peter Largan, Robert Prentis, Victoria Sunderland, James Gideon, Jo Latham, Mrs Pauline Pritchard, rh Mark Swayne, rh Sir Desmond Girvan, Paul Leadsom, rh Andrea Pursglove, Tom Syms, Sir Robert Glen, John Leigh, rh Sir Edward Quin, Jeremy Thomas, Derek Goodwill, rh Mr Robert Levy, Ian Quince, Will Throup, Maggie Gove, rh Michael Lewer, Andrew Raab, rh Dominic Timpson, Edward Graham, Richard Lewis, rh Brandon Randall, Tom Tolhurst, Kelly Grant, Mrs Helen Lewis, rh Dr Julian Redwood, rh John Tomlinson, Justin Gray, James Liddell-Grainger, Mr Ian Rees-Mogg, rh Mr Jacob Tomlinson, Michael Grayling, rh Chris Lockhart, Carla Richards, Nicola Tracey, Craig Green, Chris Loder, Chris Richardson, Angela Trevelyan, rh Anne-Marie Green, rh Damian Logan, Mark Roberts, Rob Trott, Laura Griffith, Andrew Longhi, Marco Robertson, Mr Laurence Truss, rh Elizabeth Griffiths, Kate Lopez, Julia Robinson, Gavin Tugendhat, Tom Grundy, James Lopresti, Jack Robinson, Mary Vara, Shailesh Gullis, Jonathan Lord, Mr Jonathan Rosindell, Andrew Vickers, Martin Halfon, rh Robert Loughton, Tim Ross, Douglas Vickers, Matt Hall, Luke Mackinlay, Craig Rowley, Lee Villiers, rh Theresa Hammond, Stephen Mackrory, Cherilyn Russell, Dean Wakeford, Christian Hancock, rh Matt Maclean, Rachel Rutley, David Walker, Mr Robin Hands, rh Greg Mak, Alan Sambrook, Gary Wallace, rh Mr Ben Harper, rh Mr Mark Malthouse, Kit Saxby, Selaine Harris, Rebecca Mangnall, Anthony Scully, Paul Wallis, Dr Jamie Harrison, Trudy Mann, Scott Seely, Bob Warburton, David Hart, Sally-Ann Marson, Julie Selous, Andrew Warman, Matt Hart, rh Simon May, rh Mrs Theresa Shannon, Jim Watling, Giles Hayes, rh Sir John Mayhew, Jerome Shapps, rh Grant Webb, Suzanne Heald, rh Sir Oliver Maynard, Paul Sharma, rh Alok Whately, Helen Heappey, James McCartney, Jason Shelbrooke, rh Alec Wheeler, Mrs Heather Heaton-Harris, Chris McCartney, Karl Simmonds, David Whittaker, Craig Henderson, Gordon McPartland, Stephen Skidmore, rh Chris Whittingdale, rh Mr John Henry, Darren McVey, rh Esther Smith, Chloe Wiggin, Bill Higginbotham, Antony Menzies, Mark Smith, Greg Wild, James Hinds, rh Damian Mercer, Johnny Smith, Henry Williams, Craig Hoare, Simon Merriman, Huw Smith, rh Julian Williamson, rh Gavin Holden, Mr Richard Metcalfe, Stephen Smith, Royston Wilson, rh Sammy Hollinrake, Kevin Millar, Robin Solloway, Amanda Wood, Mike Hollobone, Mr Philip Miller, rh Mrs Maria Spencer, Dr Ben Wragg, Mr William Holloway, Adam Milling, rh Amanda Spencer, rh Mark Wright, rh Jeremy Holmes, Paul Mills, Nigel Stafford, Alexander Young, Jacob Howell, John Mitchell, rh Mr Andrew Stephenson, Andrew Zahawi, Nadhim Howell, Paul Mohindra, Mr Gagan Stevenson, Jane Huddleston, Nigel Moore, Damien Stevenson, John Tellers for the Noes: Hudson, Dr Neil Moore, Robbie Stewart, rh Bob James Morris and Hughes, Eddie Mordaunt, rh Penny Stewart, Iain Maria Caulfield Hunt, Jane Morris, Anne Marie Hunt, rh Jeremy Morris, David Question accordingly negatived. Hunt, Tom Morrissey, Joy Jack, rh Mr Alister Morton, Wendy The list of Members currently certified as eligible for a Javid, rh Sajid Mullan, Dr Kieran proxy vote, and of the Members nominated as their Jayawardena, Mr Ranil Mumby-Croft, Holly proxy, is published at the end of today’s debates. Jenkin, Sir Bernard Mundell, rh David Jenkinson, Mark Murray, Mrs Sheryll Clause 109 Jenkyns, Andrea Murrison, rh Dr Andrew Jenrick, rh Robert Neill, Sir Robert DESIGNATION OF FREEPORT TAX SITES Johnson, rh Boris Nici, Lia Ben Lake: I beg to move amendment 54 in clause Johnson, Dr Caroline Nokes, rh Caroline 109, page 63, line 14, at end insert— Johnson, Gareth Norman, rh Jesse “(1A) An area may be designated as a special area under Johnston, David O’Brien, Neil subsection (1) only when a motion approving the creation of Jones, Andrew Offord, Dr Matthew freeport tax sites has been agreed by— Jones, rh Mr David Opperman, Guy (a) Senedd Cymru, Jones, Fay Parish, Neil Jones, Mr Marcus Patel, rh Priti (b) the Scottish Parliament, and Jupp, Simon Paterson, rh Mr Owen (c) the Northern Ireland Assembly.” Kawczynski, Daniel Pawsey, Mark This amendment would require the Treasury to have received consent Kearns, Alicia Penning, rh Sir Mike from the devolved parliaments on proposed freeport measures before Keegan, Gillian Penrose, John introducing the changes proposed by Clause 109. 775 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 776

The Chairman of Ways and Means (Dame Eleanor Laing): Ben Lake: It is a pleasure to have the privilege of With this it will be convenient to discuss the following: opening the debate on this clause. I rise to speak in Clause 109 stand part. support of amendment 54 in my name, which would require the Treasury to have received consent from the Clauses 110 and 111 stand part. devolved Parliaments before it could designate freeport That schedule 21 be the Twenty-first schedule to the tax sites as outlined in clause 109. Bill. Although the amendment will not be pushed to a Government amendments 43 to 52. vote, the very need for an amendment requiring democratic That schedule 22 be the Twenty-second schedule to safeguards and devolved consent is sadly indicative of the Bill. the Government’sdisregard for devolution and the interests, New clause 4—Eligibility for capital allowances and rights and ambitions of the devolved nations. It is stamp duty land tax relief for freeport tax sites— jarring that today’s debate, and its pursuit of powers, paid for by taxpayers across the UK, is happening “No company shall benefit financially from the provisions of sections 110 or 111 unless the company— despite the Government’s failure to achieve consensus across all four nations of the UK. (a) recognises a trade union for the purposes of collective bargaining with its workforce, That unilateralism by the Government is not only (b) is certified by the Living Wage Foundation as a living disappointing but, I would argue, economically self- wage employer, defeating, as the overwhelming body of evidence, some of which has been gathered by Committees of this (c) is taking steps to reduce its carbon emissions, and place, including the Welsh Affairs Committee, of which (d) publishes details of its equality pay gap and has a I am a member, suggests that freeports will lead to the published plan to reduce disparities.” redistribution of jobs and investment, rather than their This new clause would ensure that the benefits of capital allowances creation across the UK, unless the policy is very closely and relief from stamp duty land tax for freeport sites apply only to and carefully co-ordinated. companies that meet certain criteria relating to employment and environmental credentials. Jim Shannon: The hon. Gentleman is absolutely right: New clause 5—Economic impact of freeport tax sites— one of the prerequisites of the opportunity for freeports “(1) Sections 109 to 111 shall not come into force until— is to ensure that every part and every region of the (a) the Secretary of State has published a report, commissioned United Kingdom of Great Britain and Northern Ireland from the Office for Budget Responsibility, and benefits. Although every hon. Member is right to claim (b) the report has been debated and approved by both it for themselves, it is important that we all benefit. Houses of Parliament. Does he agree? (2) The report in subsection (1) must forecast the impact of sections 109 to 111 on— Ben Lake: I agree with the point that the hon. Member (a) Government and local council tax revenues, makes. If the freeport policy is to have real benefit and (b) economic activity in areas directly adjacent to ring true to the rhetoric of levelling up every single proposed freeports, nation and region of the United Kingdom, it is clear (c) UK productivity, and that no port—or no nation or region—should be disadvantaged by the location of any other. In effect, we (d) the provision of jobs paid at more than the median wage.” cannot have a situation whereby the Government are asking for Welsh, Scottish or Northern Irish taxpayers, The new clause would make the commencements of sections 109 to along with English taxpayers, to pay for freeports in 111 dependent on the Secretary of State publishing a report that would allow Members of Parliament to assess the economic case certain parts of England that may actively disadvantage for freeports, and on both Houses agreeing that report. those in Wales, Scotland or Northern Ireland. If they did, it would appear that the Prime Minister and his New clause 25—Review of freeports— Chancellor would be willing to trample over the devolution “(1) The Chancellor of the Exchequer must review the impact settlements in pursuit of this freeport master plan. of sections 109 to 111 and schedules 21 and 22 of this Act and lay a report of that review before the House of Commons within The Wales Act 2017 largely devolved the regulation six months of the passing of this Act and once a year thereafter. and supervision of ports and harbours in Wales to the (2) A review under this section must estimate the expected Welsh Government, while economic development is impact of sections 109 to 111 and schedules 21 and 22 on— also of course a devolved competence. UK Government (a) job creation within the sites designated as freeports demands, such as capping the number of Welsh freeports and across the UK as a whole, to one—an outcome that would likely lead to an overall reduction in the number of Welsh ports—are direct (b) revenue from corporation tax and stamp duty land tax within the sites designated as freeports and across the infringements on the Welsh Government’s responsibility UK as a whole, for the Welsh economy. (c) levels of artificial tax avoidance and tax evasion across It is therefore especially dangerous that Wales cannot the UK as a whole, count, it would seem, on its Secretary of State to defend (d) levels of criminal activity, its interests at the Cabinet table. Instead, rather than side with Wales’s democratic institutions, the Secretary (e) the necessary level of staffing for HMRC and the UK Border Force, and of State for Wales has threatened that a freeport will be implemented in Wales come what may, including if (f) departmental spending by HMRC and other Wales’s Parliament were to reject such a measure. departments on enforcement.” This new clause would require the Government to review the impact I am conscious that there are others who wish to of the provisions of the Act introducing freeports and publish make perorations on this topic this evening, so I will regular reports setting out the findings. draw my remarks to a close. I look forward to summing 777 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 778

[Ben Lake] Jesse Norman: The right hon. Gentlemen raised a very similar question with me on Second Reading and, up at the end. Although I will not press the amendment as he knows, the Government are engaging very closely to a vote this evening, I hope that the Minister will consider with the Northern Ireland Executive. I am not in a my remarks and ensure that freeports are established position to second-guess what the EU may or may not with the consent of all four nations and supported by do in that regard, but we have been very clear that we an engaged public debate. Refusal to do so would be a want to put a freeport in Northern Ireland and we want tacit admission that this Government will not hesitate it to be a strong offer comparable to the freeports to trample over Wales’s economic interests and aspirations available elsewhere in the United Kingdom. That is if they run contrary to the plans drawn up in London. what we will be seeking to achieve.

9.45 pm Sir Bernard Jenkin (Harwich and North Essex) (Con): Jesse Norman: I rise to speak in support of clauses 109 In passing, I thank the Government for designating to 111, schedules 21 and 22 and amendments 43 to 52. Freeport East, which includes Harwich in my constituency, as one of the freeports. I am struggling to find how the The clauses will act in support of the Government’s tax concessions in this Bill avail us of the new freedoms freeports programme, which is designed to unlock outside the European Union. Will my right hon. Friend investment in eight regions of England so far, with identify how the freedoms in this Bill are in contention more to follow in the devolved Administrations. At with the EU state aid rules on tax subsidies? Of course, Budget, following an open and transparent bidding that would not apply in Northern Ireland, where the process, the Chancellor announced the locations successful EU state aid rules still apply. The Government might as in securing freeport status: East Midlands airport, well be completely honest about this: if there are advantages Felixstowe and Harwich, Humber, Liverpool city region, for England of being outside the EU that we do not Plymouth and South Devon, Solent, Teesside, and Thames. have because Northern Ireland is still effectively inside Freeports will be national hubs for international trade, the EU, let us hear about them, because we want to innovation and commerce, regenerating communities know that we have those advantages in England. across the UK by attracting new businesses and spreading jobs, investment and opportunity.They will bring together Jesse Norman: I think my hon. Friend has erred in his ports, local authorities, businesses and other key local logic. It is perfectly possible for us to benefit from the stakeholders to achieve a common goal of shared prosperity flexibility of setting taxes, as we are, while being able to and opportunity for their regions. In doing so, they will have a strong agreed offer that satisfies whatever rules help in the Government’s ambition—indeed, all of our may apply in Northern Ireland with the Northern Ireland ambition—to level up areas that have been left behind. Executive. They will be of different characters, but there The Government’s freeports model enables the UK is no reason to think that neither is possible. to take advantage of the benefits of leaving the European Clauses 109 to 111 give the Government the power to Union. The Government have drawn on examples of designate tax sites and, once sites have been designated, successful freeport programmes all over the world to to provide relief within them for the acquisition of develop freeports that will attract significant new investment commercial purpose property and new plant and machinery and encourage development across the UK. The model assets, as well as relief on the construction or renovation will enable businesses in freeports to draw on benefits of buildings. These powers will enable the Government relating to customs, planning, regeneration and innovation, to move quickly to enable businesses to begin accessing as well as the offer of targeted tax reliefs supported by the benefits of freeports as soon as is feasible. the clauses in the Bill. The Government have engaged extensively with ports, The Government are committed to tackling non- local authorities and industry, including through a compliance in the tax system, and freeports are not an consultation on the wider programme running between exception to that. Anti-avoidance and evasion provisions 10 February and 13 July 2020. We have also listened to are included in the Bill, and will be taken across further feedback from a wide range of stakeholders to inform legislation for the individual tax reliefs. In addition, the the development of an effective model that will benefit Government will take further powers to create a robust port areas across the UK. system of monitoring in freeports and enable HMRC to request relevant information from businesses. This will For the reasons already outlined in the earlier debates, ensure that public money is being used effectively in I will confine my remarks to the key points at issue. pursuit of the regeneration and development of freeport Clauses 109 to 111 give the Government the power to locations. designate tax sites and, once sites have been designated, to provide relief within those sites for the acquisition of Clause 109 will enable the Government to designate commercial purpose property and new plant and machinery the location of tax sites connected to any freeport in assets, as well as relief on the construction or renovation Great Britain. The tax reliefs made available as part of of buildings. the Government’s freeports programme will apply only in these sites, and the Government intend to bring Sammy Wilson: So far, no freeport has been designated forward legislation to apply these reliefs in Northern in Northern Ireland, but one of the great fears is that Ireland at a later date. because Northern Ireland remains within the single Bidders submitted initial proposals for their tax sites market rules of the EU, any such measures to set up a during the bidding process. The Government allowed freeport could be contested by the EU and the Irish up to 600 hectares of tax site space to be proposed, Government because they might give Belfast an advantage across a maximum of three separate sites per freeport. over Dublin, for example. How will that issue be resolved, Tax site proposals were also judged against a set of given the terms of the Northern Ireland protocol? criteria relating to existing deprivation and unemployment, 779 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 780 to ensure tax measures will have maximum impact in clauses would potentially delay the implementation of regenerating those areas. The Government will now these measures by making freeports more complicated work with the successful locations to approve their tax for businesses to navigate, and therefore reducing their site proposals. Once the successful bids have completed impact and effectiveness. In any case, the Government the full tax site assessment process, the Government will have a very strong commitment to reducing carbon designate the agreed areas as tax sites. From that point emissions, which is why this country was the first major forwards, businesses will be able to claim and benefit economy to implement a legally binding net zero greenhouse from the tax reliefs. gas emissions target by 2050. The Government will continue to ensure that the role of tax is considered alongside other Sir Bernard Jenkin: I am most grateful to my right policy measures needed to meet environmental goals. hon. Friend; he is being very generous, though whenever As I have already indicated, freeports will also have I am tackled on a point of logic by a professor of an important role in reducing regional disparities. The philosophy, I wonder what is going on. But my question rigorous assessment of bids that has been undertaken is quite an innocent one in this case. In Harwich, there has ensured that tax benefits are available only in areas are some businesses very near the tax sites which have that require regeneration and would benefit from being been affected by Brexit and would benefit greatly from a tax site, helping the Government to level up those that being included in the tax site. To what extent are the have been left behind. boundaries still adjustable, and is there an issue of principle regarding included businesses that could expand New clauses 5 and 25 as tabled would have the following much more effectively? I am thinking of the particular effect. New clause 5 would make the commencements example of a petrochemicals processing business, which of clauses 109 to 111 dependent on the Secretary of exports substantially and would benefit very greatly by State publishing a report that would allow Members to being in the tax site. It would generate many more jobs assess the economic case for freeports, and on both and much more wealth for the United Kingdom. Houses agreeing that report. New clause 25 contains a similar request for a review of the impact of clauses 109 Jesse Norman: Of course, the circumstances for each to 111 and schedules 21 and 22, and for a report of that individual freeport site will be, and I am sure are, very review to be laid before the House within six months of different. I cannot comment on the site my hon. Friend the passing of this Bill and once a year thereafter. A describes, but in general the emphasis of the legislation robust and transparent bid assessment process, using is very much on new investment and new development, the criteria set out in the bidding prospectus, ensured rather than on existing or dead-weight investment. It that the eight English freeports so far granted all may well be the case that there are businesses that would demonstrated a good or better economic case, including propose to make substantial new investments and, a strong economic rationale for their proposed tax site depending on the freeport in question, it may be possible locations. for them to qualify for some of the benefits associated In the interest of transparency and accountability, with that, but, again, it is not possible for me to comment the Government have also published a decision-making on individual cases. note that clearly sets out how sustainable economic Clause 110 and schedule 21 will allow businesses in growth and regeneration were prioritised in this process freeport tax sites in Great Britain to benefit from two of assessment. The Government will publish costings of new capital allowances: enhanced capital allowances the freeports programme at the next fiscal event, in line and an enhanced structures and buildings allowance. with conventional practice. Imposing an additional On clause 111 and schedule 22, the clause makes economic incentive on top of what has been outlined changes to provide for a new relief from stamp duty would only risk delaying the delivery of the programme land tax for acquisitions of land and buildings situated and therefore the associated benefits of the increased in freeport tax sites in England that are used for qualifying investment and employment. commercial purposes. Relief will be available for purchases Amendment 54 would make the commencement of a made from the date a freeport tax site is formally freeport tax site in any UK nation subject to approval designated until 30 September 2026. by the three devolved Administrations. The hon. Member Amendments 43 to 52 amend the provisions introduced for Ceredigion (Ben Lake) has already introduced that. by clause 111 and schedule 22 to provide certainty that Let me say to him that tax is first and foremost a property investors using sharia-compliant alternative reserved matter unless it is specifically devolved. The finance are able to benefit from stamp duty land tax UK Government have the power to set tax sites that relief in the same way as investors using conventional offer reserved tax reliefs across the UK, and Ministers finance. That will be done by taxing the alternative for the devolved Administrations have the power to set finance intermediary’s acquisition as though it were an devolved tax reliefs.Devolved Ministers will be accountable acquisition by the investor. The amendments ensure to their Parliaments for the use of tax instruments that the tax payable by someone using alternative finance under their control in a freeport tax site within their is the same as that which would be payable were the nation under the proposed plans. property purchased using a conventional financial product. The Government are determined to establish Opposition Members have tabled two new clauses freeports across the UK, not just in England. That is relating to clauses 109 to 111. Among other things, they why we are committed to continuing discussions with would place additional eligibility criteria in respect of the Administrations in Scotland and Wales, when their employment rights, equalities and the environment on new Governments have been established, and with the the claiming of capital allowances and stamp duty land Northern Ireland Executive. The Government intend to tax relief in freeports. It is important to say that freeports have a freeport in each nation, and are determined to will deliver tangible benefits that will help to level up deliver that as soon as practicable. They will be national areas. By imposing those additional criteria, the new hubs for trade, innovation and commerce, regenerating 781 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 782

[Jesse Norman] money, only to find that Conservative Ministers overruled officials and handed funding to already wealthy areas. communities across the country. They can attract new We have seen nothing to make up for the 11 years of a businesses and spread jobs, investment and opportunity Conservative Government who have sucked funding to towns and cities up and down the UK, which will and opportunities out of areas that they now say need boost international trade and economic growth. levelling up. We have seen a total lack of ambition from the Government on supporting a recovery from the Sir Bernard Jenkin: Wil my right hon. Friend give coronavirus crisis to build a stronger and more resilient way? economy. That brings me to freeports and the clauses that we are considering today. Jesse Norman: I am happy to take a third intervention I think we were all a little underwhelmed when the from my hon. Friend. rabbit pulled from the hat at the end of the Chancellor’s Budget speech last month was the reannouncement of Sir Bernard Jenkin: I am most grateful. Well, it is the his freeports policy. The Opposition simply do not Committee stage of a Bill. The hon. Member for Ceredigion believe that freeports are the silver bullet for our post-Brexit (Ben Lake) raised an issue that I had not considered economy that the Chancellor clearly hopes they are. In before, which is that the provision of a freeport in a fact, the evidence is that freeports are likely to have devolved nation might actually reduce the revenue being relatively little impact on overall job creation and are collected by that devolved Government. Has my right far more likely to move jobs from one place to another. hon. Friend given consideration to that? I cannot see We want every area to flourish, whether or not they how that would actually happen, but will he give an have a freeport. We know that Ministers are aware of assurance that there is a means of addressing that if it this problem because they asked potential freeports were to occur? operators to address it in their bids. Our new clause 25 would require the Government to produce an annual Jesse Norman: As far as I am aware, this is a very review of the impact of the freeports policy on job remote contingency and I see no evidence to suggest creation in freeport sites and across the country as a that it might be the case in the context that has been whole. described, but I can certainly tell my hon. Friend that, when the Government engage with the Welsh Government, Jesse Norman: I would be grateful if the hon. Lady we will be sensitive and open to discussion of the could tell us whether the Labour party’s position is to potential economic effects of a freeport in Wales, as one support freeports or not to support freeports. might expect. Abena Oppong-Asare: I thank the Minister. I will 10 pm approach that later in my speech, so I thank him for Clauses 109 to 111, schedules 21 to 22, and already guessing what I was going to say. amendments 43 to 52 will support the development of We really need some honesty and transparency from freeports by encouraging new private investment in the Government on this. The estimates of the job creation each of the eight freeport locations in England. These benefits of freeports made by their advocates so far constitute major aspects of the Government’s freeports have been flimsy to say the least. We also need a proper programme, which will attract large-scale investment assessment of the risk of job displacement. If freeports across every region of the UK and make significant simply move existing economic activity around, they contributions to the recovery from the pandemic and to risk doing harm to the economic fortunes of neighbouring levelling up across the regions. I therefore move that areas, with no net benefit to the country as a whole. these clauses, schedules and amendments stand part of Indeed, a 2019 report by the UK Trade Policy Observatory the Bill. found that the main effect of freeports was to divert businesses into a port from a surrounding area, rather Abena Oppong-Asare (Erith and Thamesmead) (Lab): than creating new jobs, so it is not just Labour saying It is a pleasure to speak for the Opposition on the clauses this; it is the experts saying it too. That may be especially relating to freeports. I will speak to new clause 25 in my problematic in areas where freeports are situated near a name and the names of my hon. and right hon. Friends. local authority, or regional or even national borders. Before I turn to the detail of our new clauses in this Our new clause would require the Government to group, I would like to say a little about Labour’s position report on tax avoidance and evasion and criminal activity on freeports and regional economic policy more generally. in freeports and to set out the level of additional Labour wants to see good new jobs created in every staffing and resources required by HMRC and other region and nation of the United Kingdom. We want to Government bodies. There are long-standing concerns see genuine levelling up that hands power and opportunity that freeports allow or encourage tax avoidance and to areas that have been deprived of them for too long. evasion, and there is international evidence that freeports Wewant an economic policy that addresses the fundamental have been used for criminal activity. For example, the challenges facing our country and our constituents: OECD has stated that there is ever widening regional inequality, low productivity and “clear evidence that free trade zones are being used by criminals low wages in too many places; a social care crisis that to traffic fake goods”. threatens the dignity of older people; and an environmental The Financial Action Task Force has said that the lack crisis that threatens us all. of scrutiny can facilitate trade-based money laundering I am afraid that the Government’s approach to levelling through relaxed oversight and a lack of transparency. up has been far less ambitious. We have seen regions The TUC and others have warned of the dangers to and areas pitted against each other to bid for pots of workers’ rights from deregulation in freeports. We need 783 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 784 to take these concerns seriously. As a minimum, the result of joining the EEC, because the EEC prevented it Government should commit to trade union representation from providing those freedoms. That is why we are in the governance of freeports at local and national discussing the question as to whether or not we are levels. using the new freedoms we have, but the fact is we have I will now make a few points about the clauses we are much more tax freedom outside the EU for freeports considering. First, on the cost of the tax reliefs being than we had when we were in the EU, and hopefully introduced, the Government have provided some Scotland will benefit from that. information on the expected operational costs of HMRC but, as recently as last month, they were unable to Richard Thomson: I thank the hon. Gentleman for estimate the reduced revenue that the Exchequer will that intervention, but I think my point still stands. No receive as a result of these reliefs. I hope the Minister matter what the spirit of truth might be in his remarks can address that. Clause 110 includes the enhanced about how constraints were placed on the Shannon free capital allowance for plant and machinery spending at zone, there are freeports in the European Union. Freeports 100%, but that is less generous than the 130% super are not something that intrinsically require Brexit of deduction. Presumably, for the period that they overlap, itself in order to be able to be pursued. But certainly I companies will need to consider whether they can claim hope there are benefits for Scotland from this. I think the super deduction rather than this allowance. those benefits can be manifested best perhaps through The Chartered Institute of Taxation has raised a the greenports approach, which I would like to expand number of concerns about the operation of the stamp upon. duty relief in clause 111. One issue is how exactly As I say, the Scottish Government have developed freeport tax sites will be designated and whether particular their own version, the greenports, which seeks to embrace buildings can be identified as either in or out the boundary all the potential benefits that could come through freeports, of the tax site. Can the Minister provide some clarity on while aligning that with ensuring the principles of fair joint ventures where there is both commercial and residential work are enshrined, ensuring that workers within the development? The Chartered Institute of Taxation points greenports are paid a real living wage and that the out that the clause, as currently drafted, excludes a reduction of carbon emissions is embedded at the heart common commercial arrangement from that relief. Finally, of those developments. A re-elected Scottish National there is the issue of withdrawal of relief for subsequent party Government will seek to implement those greenports, non-qualifying activity.A small amount of non-qualifying making public sector support contingent on businesses use can potentially lead to withdrawal of all the relief. Is complying with that fair work first agenda, paying that the Minister concerned that the risk of loss of the full real living wage and implementing the Scottish business relief in such circumstances could discourage investment? pledge: our values-led partnership between Government To conclude, the Opposition have real concerns about andbusinessbasedonboostingproductivitycompetitiveness the Government’s freeports policy. If it is going to through fairness, equality and sustainable employment, succeed and bring the sorts of benefit that those on the and on delivering on concrete plans to reduce carbon Government Benches claim, we need to see more detail emissions in line with supporting the Scottish Government’s on the operation of freeports and how the Government ambition to reach net zero by 2045. plan to mitigate the risks. We need regular monitoring The Scottish Government proposals for these economic of the effectiveness and the impact on the country as a development zones already have widespread buy-in from whole over the years to come, which is exactly what new stakeholders, who are desperate to start bidding to run clause 25 would require the Government to do. If the the greenports. It was heartening to hear from the Government are confident in their policy, they should Minister his commitment to seeing freeports in all parts be confident in allowing scrutiny of how it works in of the UK. Nevertheless, if the people of Scotland practice. I call on them to support our new clause. choose to re-elect a Scottish National party Government, the Government need to accept the mandate that comes Richard Thomson: I would like to add my support for from that and, if there has been an element of heel the Opposition amendments and to seek a commitment dragging, to hasten the process of coming to an agreement from the Government, while the Minister is here, to on the rules around these proposed greenports so that allow the Scottish Government after the Scottish elections the bidding can begin immediately. to move ahead with their greenports adaptation of the Having taken positive steps to end the race to the freeports concept. Freeports do not require Brexit in bottom on corporate taxation, as we heard in an earlier order to be brought about, and legitimate questions debate, I think it is important that the UK Government remain about how much additional economic activity do not allow those who take advantage of freeport they will actually generate, rather than simply displace status to neglect or otherwise elude their obligations to from other areas of the economy. the workforce, to the environment and to the building of long-term, sustainable value in the regions where Sir Bernard Jenkin: Will the hon. Gentleman give way? they are located and the wider economy. In the year that the world is coming to Scotland to Richard Thomson: It is very early but yes, of course. plan our future at the COP summit, I think it is absolutely fitting that we should be able to develop greenports to Sir Bernard Jenkin: I am most grateful to the hon. demonstrate our ambitions on sustainable, inclusive Gentleman for allowing me to intervene. There was a economic growth as we transition to a net zero economy. freeport in Shannon in the Republic of Ireland before A fair, sustainable greenport model can be an exemplar the Republic of Ireland joined the European Economic of those values, while adding value to Scottish goods, Community. The tax freedoms that it was granting at services and the country’s brand. The UK Government, the Shannon freeport were significantly curtailed as a once the Scottish elections are over, need to get on 785 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 786

[Richard Thomson] could do. Now, as an independent country, we have control over our trade and customs policy. We can board with this and back the innovative approach of design more flexible rules that are closer to World Trade the Scottish Government model so that we can get the Organisation equivalents. bidding process under way. We need to look to the example of US foreign trade zones—the US equivalent of freeports. Using these Ruth Edwards (Rushcliffe) (Con) [V]: The east midlands zones, companies such as Pfizer were able to ensure the is one of the regions that was fortunate to benefit from swift, competitive roll-out of its vaccine. The foreign a new freeport in this Budget. Spread across three sites trade zones model helps to cut costs on various in Leicestershire, Derbyshire and my own constituency pharmaceutical ingredients and allowed Pfizer to store of Rushcliffe, we hope to establish a green technology its vaccine in the zones indefinitely until it was approved park on the site of one of the UK’s last coal-fired power by the US regulator before being shipped for use stations, at Ratcliffe-on-Soar. immediately.Ultimately,that flexibility not only supported Hearing contributions from the Labour party in recent American jobs, but saved lives all over the world, including weeks, and from the shadow Minister just now, we here in the UK. would be forgiven for thinking that, with the arrival of a In conclusion, freeports are a hugely important tool freeport, Rushcliffe will become some sort of wild west, for rebalancing our economy across the regions and with disputes over stolen art, organised crime activity restructuring it in the face of the huge changes it faces and tax avoidance settled with a shoot-out in the drinking in the coming years. They are not a silver bullet, but establishments of Ratcliffe-on-Soar. Quite a picture, they are a key part of a strategic set of policies that my but one that ignores the extensive steps the Government right hon. Friend the Chancellor has set out in this have taken to prevent illicit activity, such as background Budget, an alternative set of which we are still waiting checks for businesses that want to locate in a freeport, for from the Labour party.What are its ideas for rebalancing including their beneficial owners,and a register of businesses our economy? How will it increase prosperity and operating in each freeport site, to which HMRC, the opportunity for communities across our country? Who National Crime Agency and Border Force will all have knows? The plans remain shrouded in mystery, or maybe access. Successful freeport bids also had to demonstrate they just do not exist. their approach to inventory systems, physical security, personnel security, cyber-threats and international regulations. John McDonnell [V]: New clause 4 stands in my name and those of several right hon. and hon. Members. As I said in the debate on the provisions for super deductions, 10.15 pm if the Government are giving tax breaks to businesses, Opposition Members also argue that, rather creating then the Government, as guardians of the public interest, new jobs, freeports will suck in jobs and investment should demand something in return. The provisions in from other areas, like some avaricious black hole. We new clause 4, listed as (a) to (d), are modest demands already know that that is not the case. We have companies that many Members, especially those on the Opposition such as Intelligent Energy, based in the constituency Benches, think should be required of all businesses of my hon. Friend the Member for Loughborough anyway. It is important that public money supports (Jane Hunt), bidding for Government support from the public goods and good public outcomes, like a fair day’s automotive transformation fund to build the UK’s first pay for a fair day’s work, like tackling climate change, in hydrogen cell gigafactory, and where do they want to which we all—individuals, Government and businesses— locate it? The east midlands freeport. It could create must play a role, and like eradicating the gender pay around 600 jobs, and I ask my right hon. Friend the gap, a process this House began over 50 years ago with Secretary of State for Business, Energy and Industrial Barbara Castle’s groundbreaking Equal Pay Act 1970. Strategy to look kindly on the bid, which would ensure The Minister referred to those as “complications”. I that the east midlands, a region set to be disproportionately do not believe that paying decent wages, tackling climate affected by our transition to a low-carbon economy, change or overcoming the gender paygap are complications. will also benefit. I believe they are essential criteria for any policy for the The businesses and universities that back the east future.If we are to tackle rising poverty—if the Government midlands freeport believe that it will generate up to want to do that—there is an opportunity here to end 60,000 new jobs across the region—not just at the in-work poverty by guaranteeing the real living wage in freeport site, but in local supply chains and service companies locating to freeports. We have 4.3 million industries. Raw materials, warehousing, distribution, children in poverty, and most are living in households construction, logistics, engineering, IT—I could go on. where at least one parent is in work. Government policy The potential for new jobs and training opportunities must act to tackle low pay. across the region is enormous. Currently only 17% of Low pay holds people back and is often linked to graduates stay in the east midlands after university. We insecure work, which is why the Government should are clearly experiencing a brain drain, and policies such also act to end zero-hours contracts. Insecure and low-paid as freeports, which encourage new businesses and industries work means insecure housing and instability for children. to cluster around sites, will help to address that. The Government should put down a marker in this Finally, we have heard that we have had freeports for policy for the society we want to be. As things stand, years, and that they have been ineffective, but did we from what we have heard in the debate so far, it is a really, or did we have them in name only? I would say society for a few to profit and the rest to struggle. This the latter. Bound by the tight regulations around state new clause is about hardwiring fairness and justice into aid and trade policy, which were central to our EU our economic system, and about levelling up. It should membership, we were severely hampered in what we not be in conflict with any stated aim of the Government, 787 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 788 and I hope that they accept the new clause or at least Jane Hunt (Loughborough) (Con): I rise to speak in consider the issues about how we tackle this range of favour of the Bill. policies and use the state to enable that to happen. Freeports will play an important role in the Government’s New clause 5 also stands in my name. In its analysis levelling-up agenda, bringing much needed opportunities of the Chancellor’s Budget, the Office for Budget for economic growth and social mobility to areas that Responsibility said of freeports: have historically seen low levels of investment and less “Further details have been announced in the Budget but came opportunity. That is why, over the past year, I and my too late to be incorporated into our forecast. We will return to this fellow east midlands MPs from both sides of the House in our next” have worked hard, alongside our local enterprise economic and fiscal outlook. So this is policymaking as partnerships, businesses, local authorities and educational a leap in the dark. It is not evidence-based, but done on establishments for the east midlands, to become a freeport the basis of supposition and, largely, ideology, given site. I was delighted by the announcement at the Budget what we have heard so far. What I seek to do in new that East Midlands airport will be one of eight ambitious clause 5 is create an evidence base for policy, on which new sites across the UK. This decision will ensure that this House can assess the merits and drawbacks of such the east midlands cements itself as a hothouse for a policy. There are reasons to be concerned. Many innovation and becomes a dynamic environment for Members of this House will recall the debates about innovators, businesses and regulators to generate and enterprise zones in the 1980s. Those zones did little to test new ideas and technologies. benefit local workers and simply transferred jobs and Crucially, the freeports will be vital to the development investment, rather than stimulating it. In an assessment and expansion of local businesses that are the driving of the enterprise zone policies of the 1980s, the Centre force of the east midlands economy, and of the green for Cities think tank found: agenda for the nation. The east midlands, being part of “The first two rounds…created 58,000 additional jobs (directly the midlands engine, is also the heartland of the and indirectly), but over 40 per cent of those jobs were created by UK’s manufacturing sector, and the freeport will help businesses that had relocated to enjoy the tax cuts”. to transform this manufacturing base through new It also found that each job technologies, creating a whole new industrial sector “cost the public purse £26,000 (in 2010-11 prices), which was locally. The extended supply chain across the country significantly more expensive than other policies” will also fully benefit from this through products and for job creation that we were being pursued at that time. services being fed into the business base at the freeport. The same policy was brought back under the Government The impact of this decision will not only be seen in the of David Cameron, championed by the then Chancellor basic mechanics of what a freeport does to act as a George Osborne. Analysis of those zones by the Centre customs hub for imports and exports; it will also create for Cities showed the jobs supposedly “created” in these a highly skilled ecosystem, becoming a magnet for zones were often just relocated from elsewhere. inward investment and business expansion, and acting Unfortunately, the evidence showed that they were also as a springboard for opportunity throughout the region, overwhelmingly low-skilled and low-paid. Tax breaks in creating an estimated 60,000 new skilled jobs. As such, underinvested areas are not an industrial strategy. New new businesses will be attracted to Loughborough and clause 5 is a simple plea for evidence-based policy its surrounding towns, seeking to reap the benefits of making, and one I hope the Government will accommodate being situated close to a freeport. Indeed, interest has in their future discussions. already been expressed by several organisations in taking I hope the Government will also accept new clause 25 advantage of the benefits a freeport would bring, either in the name of the Opposition Front-Bench team, because by moving to the area or expanding locally. it too demonstrates that evidence-based policy requires Loughborough is already home to a flourishing life policies to be reviewed, and that the evidence base has sciences sector. We have the education powerhouses of to be assessed throughout implementation of any particular Loughborough College with its new T-level centre and policy. The case for freeports has not been made and the thriving apprenticeship scheme, as well as Loughborough risks are significant. There are risks of accelerating tax University with its degree and above level skills that avoidance, and actually doing economic damage to areas support business start-up and expansion, often through neighbouring freeports is a real concern. To leap into a research and subsequent development of spin-off businesses. policy with such a lack of evidence and of account We have the physical infrastructure required for incoming taking of past practice is worrying, to say the least. businesses at Loughborough University’s science and This is the last time I will speak at this stage of the enterprise park and Charnwood campus, and the passage of the Bill, so I would like to place on record educational expertise required to provide both a skilled that, after listening to the debates on Second Reading local workforce ready to take up the new employment and today, even I am shocked at the undeniable evidence opportunities created by the freeport and the research of the scale of corporate capture of this Government, base to drive innovation. going well beyond anything we have seen under the last This is about jobs and livelihoods. It is not a reaction two Tory Prime Ministers. The central purpose of this to covid. Freeports were in our manifesto, and I fully Government, on the basis of these policies—both the support the idea. super deduction and holding back the corporation tax increase, as well as the freeports—appears to be simply to line the pockets of corporations with taxpayers’ 10.30 pm money and to render them free of any effective regulation that would make them accountable to a wider community. Sarah Olney [V]: I wish to speak to clauses 109 to 111 I therefore honestly and fervently fear for the future of relating to the powers to designate sites as freeports and this country in the hands of this Government. associated provisions. 789 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 790

[Sarah Olney] at the outset. We can agree that freeports are necessary but not sufficient to deal with regional disparities and This has been a turbulent year for the UK economy, levelling up. with the expected disruption of Brexit and the unexpected I am none the wiser from the contribution by the and unprecedented impact of the coronavirus pandemic. hon. Member for Erith and Thamesmead (Abena Oppong- Now that we can, hopefully, look forward to the end of Asare) whether the Labour party is in favour of freeports the pandemic and its associated lockdowns, it is time for or against them. I would just point out to her that I the Government to put forward their bold and radical spent a certain amount of my period in opposition, plans for kickstarting the UK economy to enable growth which was a miserable 13 years, as shadow Secretary of and skilled employment in all corners of the country. State for the regions, and though the Labour party was The Government have had plenty of time to think elected in 1997 with a very sincere determination to reduce about how they plan to deliver the benefits of Brexit economic disparities between London and the other that we have all been promised. I expected the Chancellor regions of England and the other parts of the United to jump at the chance to realise those benefits through Kingdom, it failed, and those disparities got wider. the Budget and this Bill—and he has delivered freeports. This is a very difficult thing to address, and the This is it: the big idea, the bold move, the economic leap answer is that we should use every tool in the box. We forward that our freedom from EU shackles has finally should use every tool we possibly can. It is also perfectly granted us. Except, of course, we have always had the clear that all the tools are not available if a country freedom to initiate freeports in this country. We last had stays in the European Union. Some of the tools were them in 2012. The reason we have not had them since is taken away from the Republic of Ireland at its Shannon that their economic impact has previously proved to be freeport when it joined the European Economic negligible. Community,and it got worse; the notion that tax advantages Research into freeports in other countries has shown or tax incentives were artificial tax subsidies was extended. that they do little to boost exports as opposed to Of course, we want to see other tax advantages imports, and there is very little evidence that they create extended to other parts of the United Kingdom, such new economic activity as opposed to redirecting existing as differential rates of corporation tax, which we have economic activity from elsewhere. This risks trappings extended to Northern Ireland, but only with the permission thousands of workers in insecure work with reduced of the European Union to treat Ireland as a separate rights, in areas with reducing opportunities for alternative entity—which has a double edge to it that we perhaps employment. Any increased economic performance do not want to pursue. We should be able to do that on arising from freeports is therefore unlikely to trickle a sovereign basis and to bring Ireland into the sovereignty down to higher living standards in local households and of the rest of the United Kingdom in the longer term. communities. I wish to emphasise that the freeport east was very What is the plan for economic growth in areas of the much driven by the need for levelling up. I see my hon. UK that are not lucky enough to have been awarded a Friend the Member for Thurrock (Jackie Doyle-Price) freeport? The Budget and this Bill are silent on that nodding in sympathy, because she shares this problem. matter. Elsewhere, the Government have scrapped their The perception is, “Oh, you’re in the rich south-east. industrial strategy, replacing it with a glossy brochure You don’t need any help. It all needs to be directed to full of photographs but very little content. More seriously, other parts of the United Kingdom.” Well, I can tell the there has been no real attempt to quantify the impact of House that I have red wall voters in my own constituency. leaving the EU on UK business and trade, and what Places like Clacton, Jaywick and Harwich are hard that might mean for our economy as a whole. bitten by economic decline. Average weekly earnings in Tendring district, which is Clacton and Harwich, are We have already seen a big short-term impact on the £556, compared with a GB average of £587, and incidentally level of trade across the channel. It will take a while for below the rate in Liverpool, which is historically regarded the full picture to emerge, clouded as it is at the moment as deprived. We have a project that could generate, we by the pandemic and the unwinding of pre-Brexit stockpiles, hope, 13,500 jobs. The hon. Member for Richmond but there is no doubt that the increased paperwork is an Park and others are right: we have to make sure that the expensive burden on our small businesses—and that is minimum is substitution and the maximum is additionality. before import controls are introduced and the impact of That is the challenge of making sure this works. the scrapping of mutual recognition of professional qualifications has been fully realised. I will concentrate on what is in the Bill. I very much welcome the tax provisions in clauses 109 to 111, but The UK economy has a difficult road ahead, and there are bits missing from the Government’s additional nothing in the Budget or this Bill demonstrates that the proposals. Not mentioned in the Bill are the enhanced Government have a plan to lead us to new sources of structures and buildings allowances, or the lower national productivity or prosperity. The Liberal Democrats are insurance contributions,or the business rate reliefs proposed not opposed in principle to freeports, but they are not a in freeport sites, or the local retention of business rates, sufficient solution to the current challenges of our so I remain concerned that we are offering only what is economy. They fall a long way short of what is required allowed under EU state aid rules. I will be grateful if the to compensate for our leaving the EU and to restart our Minister, when he replies to the debate, addresses those economy in the wake of the pandemic. Thank you, points and says how those other tax reliefs will be Madam Chair. provided. It is worth mentioning that the Shannon freeport Sir Bernard Jenkin: I am very pleased, Dame Eleanor—if zone was regarded as such a success that it was imitated I may address you correctly—to make common cause and adopted by China, which now has a freeport zone with the hon. Member for Richmond Park (Sarah Olney) programme that it regards as an important enhancement 791 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 792 of its economic competitiveness. I ask those who are The job creation numbers are equally sketchy. The cynical about freeports to open their minds, to look at Chancellor argued back in 2016 that if the UK’s approach the successful freeports and free trade zones around the performs as well as that in the USA, freeports would world, and to learn from them, as well as listening to create more than 86,000 jobs, but as the Centre for what one might call the “economic statics”—the people Progressive Policy found, this figure was a cut-and-paste who think everything is about substitution and nothing job, being simply the number of people employed in the is about releasing additional creativity. US free zones adjusted for the relative size of the UK I take seriously the points raised by the hon. Member population. There was no data on the labour market for Erith and Thamesmead about compliance with the impact on specific regional economies or industries, nor necessary conventions, such as authorised economic any mention of the need for bespoke local skill strategies operator certification, World Free Zones Organisation to feed into this. safe zones rules and the OECD code of conduct for On workers’ rights, the TUC has repeatedly warned clean free trade zones. Those are all important, but let about the gradual erosion of workers’ protections in us recognise that, unless we avail ourselves of all the these zones. It stated: freedoms available to freeports, they will not deliver the “Free ports are a Trojan Horse to water down employment benefits we want. I am reminded that when he was a protections”— Back-Bench Member of Parliament, the current Chancellor in a “race to the bottom”. produced a very interesting report, “The Free Ports Finally, as we have heard tonight, there are real Opportunity”, which was published by the Centre for concerns that freeports could create a bonanza for Policy Studies, price £10, which was rather more radical money launderers and tax evaders. Indeed, the EU than the Treasury’s current offering. Some of us are a reported in 2018 that freeports were little worried that we will not see that enthusiasm and radicalism. Let us go step by step, let us work incrementally “conducive to secrecy. With their preferential treatment, they resemble offshore financial centres, offering both high security —that is not a criticism, but this is something to build and discretion and allowing transactions to be made without on for the future. attracting the attention of regulators or direct tax authorities.” Let us also recognise that the real benefit of freeports The Government must address these concerns before is not the tax incentives, but the customs facilitation. pressing ahead. To that end, new clauses 5 and 25 would We must have really modern electronic customs systems allow the Government to create an evidence base for to make the customs advantages of being in what is freeports, which the House can then examine, and new called a customs inversion zone real. Otherwise, it becomes clause 4 would impose standards and protections. If the a bureaucratic nightmare and we will not get the advantages Government are serious about addressing these concerns we should get from it. Also, if it is a bureaucratic and building in clear legal protections, they will support nightmare, it is the less savoury elements who benefit, these new clauses tonight. not the legitimate businesses. That is the challenge. We have a great opportunity, Jackie Doyle-Price (Thurrock) (Con): I commend the for which I really thank the Government in respect of Government on the ambitious agenda running through my constituency and others. Incidentally, I think the this Finance Bill. It needs to be ambitious because the freeports around the United Kingdom—this is a United last year has been a very painful one for us economically. Kingdom policy—should be working together. I wonder We must do everything we can to foster renewed growth, whether the MPs who represent the freeports that have renewed job creation and, indeed, renewed wealth creation. been designated should get together, stop this mutual I have listened to the speeches from Labour Members. suspicion—which is understandable, as we have been They raise some important things, but if I seriously competing for designation—and start working together believed that this freeport policy was going to undermine to press the Government for the positive changes that workers’ rights and lead to massive non-compliance will benefit all our freeports in the future. with health and safety and tax legislation, I would not support it. I am supporting it because I have real Rebecca Long Bailey [V]: I will limit my brief comments ambition for my local community and my area, and I to freeports. Detailed Government assessments on the am very proud and pleased that the Thames freeport operation and impact of freeports are sadly not yet has been chosen as one of the eight. I assure the House available. As we have heard tonight, the OBR has stated that this is going to be the transformation of Thurrock that the announcements made in the Budget came too after a very long time. late to be incorporated into its forecast. If the Government My hon. Friend the Member for Harwich and North recognise this, they must understand that they have a Essex (Sir Bernard Jenkin) referred to the fact that duty to provide such evidence and legislative reassurance people often see levelling up in terms of north versus in response to legitimate and wide-ranging concerns on south and we have heard that a lot, but nothing could the operation and impact of freeports. be further from the truth; in fact some of the most There are concerns that, rather than complementing deprived areas in our nation are our coastal communities, a local economy by stimulating the growth of new so it is absolutely right that freeports should be one of business, existing businesses may simply opt to relocate the headline levelling-up policies. to freeports. Certainly, the Government have not made it clear how they will mitigate against the significant geographic movement of jobs away from one area and 10.45 pm into a freeport—how they will avoid a wild-west scenario Although my constituency sits alongside our great of pitting regions against each other, nor the prospect capital city of London that everyone sees as wealthy, I of lost revenue for local authorities from business rates, represent three of the 100 poorest towns in this country: for example, if businesses opt to relocate to such a zone. Tilbury, Chadwell St Mary and South Ockendon. 793 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 794

Tilbury will be the heart of our freeport; I have been recovery plans in the coming months and years. Freeports very keen to champion that, and am so pleased to hear are intended to be national hubs for global trade and it. My right hon. Friend the Minister will be pleased to investment across the UK, and to promote regeneration hear that we have hit the ground running in Tilbury and and job creation as part of our levelling-up agenda. Thurrock, and with London Gateway and indeed with Post-Brexit Britain stands to benefit hugely from being our friends in Barking and Dagenham at Ford, in able to compete more effectively in a global market and starting to realise the impacts of freeport status. to offer UK-based businesses the chance to take full I hope the Treasury can keep up with us; it is not advantage of new trading opportunities, to expand and usual for Governments to keep up with the innovation to innovate within the UK. of private-sector employers, but I commend the speed As a Nottinghamshire MP, I want to refer specifically with which the Treasury has pushed forward with this to the freeport based around East Midlands airport, in policy. If we are to realise the impact and dynamism of conjunction with local plans for a development corporation driving economic activity we have to be fleet of foot in at the Ratcliffe power station, which is shortly to be responding to current circumstances, not least given the decommissioned and the site put to this new use. Taken year we have been through. together, these proposals present a huge opportunity Our ambition for the Thames freeport is to create for bringing investment and employment to our region 25,000 new jobs. I remind the House that one of the sites and to my Mansfield constituency. The site at East included in the Thames freeport is the old Petroplus oil Midlands airport has a unique mix of logistics and refinery.It basically fell out of use because of overcapacity transport connections, with an inter-modal hub bringing in petrol production as we moved to diesel. We are together air freight with major road and rail arteries seeing the same with the Ford site; as diesel engines right in the centre of the UK. become less productive that site will fall vacant, too. They are both brownfield sites that could not legitimately This is a chance for the east midlands and this unique be used for housing, so it is absolutely right to do what inland freeport model at the UK’s largest pure cargo we can to foster business investment in them, and that is airport to take full advantage of the Government’s exactly what we are doing. And I look forward to agenda for growth through a green recovery—we hope welcoming young people as they leave their schools and that green energy can form a big part of the east colleges in my area and throughout the rest of south midlands’ future—and through new technical skills. It Essex taking advantage of what will be skilled, productive can play a key part in our levelling-up agenda and, as jobs that contribute to the wealth creation of our nation. my hon. Friend the Member for Rushcliffe (Ruth Edwards) explained, it can help us keep talented people working Only this week we heard of a new partnership as part in our constituencies in the east midlands instead of of the Thames freeport, with Tarmac for a dedicated feeling that they have to disappear to the major cities to aggregates facility for import and export on the River find opportunities. The partnership between Nottingham Thames, and it will include investment in manufacturing Trent University and West Nottinghamshire College in capability. So within weeks of the freeport designation my constituency can support this development with being announced, we are seeing new investment—and skills development while equally benefiting from it that is new investment, not displacement. themselves. This is all about taking advantage of the real advantages that accrue to areas like mine—coastal communities As the Minister explained, clauses 109 to 111 give the that have hitherto not had their ambitions realised. In Government the ability to designate sites and offer tax my constituency of Thurrock, however, we have made incentives and reliefs at those sites. The sites are fairly the most of what advantages we have. We are within one and openly assessed, and across the east midlands my hour’s travel of 27 million people; anyone investing in colleagues and I are delighted that our area has been production or import or export at Thurrock is right successful. We estimate that these plans could bring up next to the majority of England’s marketplace. to 60,000 jobs to the region over the coming years, and So I say to the Labour party and any naysayers that my constituents stand to benefit from that in a big way. this is all about opportunity. This is all about making We are most grateful to the local authorities, the local the best use of our ambition for post-Brexit Britain—being enterprise partnerships and the businesses involved in able to take advantage of the fact that we will have putting the bid together. I ask the Minister to ensure fewer rules governing how we do things and that we will that as much support as possible is available for our have the ability to make links across the world. region to be able to put together the best possible business case,with advice and support from the Government There is little more I could say in support of this. I and from his Department during the next phase. welcome the speed with which the Treasury has embraced it, and there will probably be more details to ensure that It is telling that, before the freeports have even been set we fully realise the customs capabilities, as my hon. up, Labour’s amendments are already seeking to restrict Friend the Member for Harwich and North Essex said. and limit the benefits for businesses that invest in these This is a policy whose time has come; this is a policy sites, thereby limiting the potential for growth and job that is rooted in Britain’s status as a maritime nation, creation for my constituents. The point of these sites is and it is exactly the sort of approach that we should be to encourage innovation and investment, but it is typical approving now that we have left the European Union. of Labour Members to put ideology before jobs and livelihoods in working-class communities. They would Ben Bradley (Mansfield) (Con) [V]: I wish to speak in rather fight for more power for their trade union bosses support of the new clauses and amendments listed than for more wealth creation for our region and jobs for earlier by the Minister and in support of the plans to my constituents. In fact, it sounded a lot like the shadow deliver freeports, and the benefits they can bring, across Minister, the hon. Member for Erith and Thamesmead the United Kingdom. This Finance Bill is vital for our (Abena Oppong-Asare), did not really want to see this 795 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 796 investment happen at all, despite offering no other Ian Paisley (North Antrim) (DUP): I thank the hon. suggestions for how Labour would regenerate these Member for giving way. I did not want to cut her off in communities. The right hon. Member for Hayes and mid-flow; she is making a brilliant speech. I hope that, Harlington (John McDonnell), despite all his experience when the Government respond to the points being in this place, still has not worked out that it is businesses made tonight, they will take the opportunity—I agree that create jobs, and that helping business is not an end absolutely with what she has just said about Anglesey—to in itself but a means by which to create more of the jobs affirm that Northern Ireland will be entitled to a freeport that are so vital for areas such as mine that have needed and that it will not be blocked because of the arrangements them for a long time, and for our economic recovery that we have with the protocol and the EU. after covid. Maybe he will get it one day, but I doubt it. I support the Minister and the Government’s approach Virginia Crosbie: I thank the hon. Gentleman. to delivering the new freeports. I am grateful that they Unfortunately, despite all the good reasons I have for have chosen the east midlands as one of the sites, with bringing a freeport to Anglesey, the Welsh bidding its unique location right at the heart of the country and process has not yet started. The Welsh First Minister all the potential that that brings for our region, and I has cited concerns about economic displacement, but will be supporting the Bill in its entirety. my biggest concern is the economic displacement that will occur when trade that could have come to Anglesey goes instead to one of the eight English freeports announced Virginia Crosbie (Ynys Môn) (Con): This Finance in the Chancellor’s Budget. Ports such as Liverpool are Bill gives us the freedom to look at freeports around the already six months ahead of us in this process. world and to propose innovative and exciting new possibilities for the UK. Last year I set up the Anglesey I absolutely support the Finance Bill and the freeport bidding consortium, which includes Stena, opportunities that it gives the UK now that we are free Anglesey County Council, Bangor University and the from the shackles of Europe. I look forward to seeing North Wales Economic Ambition Board. We have Anglesey become a freeport, attracting new investment approached our bid by asking the question: what problems and creating the good, quality jobs that the island so could a freeport on Anglesey solve? By looking at the desperately needs and deserves. problems, we are building a freeport model that will offer benefits not just locally but globally. Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con) [V]: I am absolutely delighted to take part in this Our first problem is local. After almost two decades debate and also to follow my hon. Friend the Member of disinvestment under the Welsh Labour Government, for Ynys Môn (Virginia Crosbie). We share a nuclear Ynys Môn’s gross value added is now among the lowest power station. I look forward to the fantastic day that in the UK. With large employers such as Anglesey we build at Wylfa. Aluminium and Rehau closing down, it is highly dependent on seasonal tourism. Our island haemorrhages young I must say that the Chancellor has done a remarkable people every year because there are no quality jobs for job in supporting the economy during this pandemic. them locally. What better place for the Government to He has also kickstarted the economy without a shadow use their freeport model to create jobs and opportunity? of a doubt. Economic regeneration and regional economic How better to show levelling up at its most effective? regeneration does have to come with various—dare I say it?—caveats. I advise extreme caution when shelling Our second problem is national. Brexit has impacted out any extra cash to Somerset County Council. I the flow of trade across the central corridor from Holyhead would not spend a penny on it. Somerset County Council to Dublin. A collaboration between a freeport in Northern is incompetent, profligate and, worst of all, unbelievably Ireland and a freeport on Anglesey would create a pompous. It has failed to get broadband working. It has virtual special economic zone corridor and significantly signed contracts that it does not understand, which has improve the customs and trade route between Great cost the tax payers millions of pounds. It adds absolutely Britain and Northern Ireland. nothing to the development of the local economy, except, Our third problem is global. How will we hit our 2050 unfortunately, hot air. Oh yes, Somerset County Council net zero carbon target, as energy island Anglesey is loves to claim credit for everything, but that is either already leading the way in green energy: we have on and exaggeration or lies. offshore wind farms, tidal energy, solar farms and we Somerset is run dishonestly and it does not deserve to are about to establish a hydrogen production plant in be taken seriously. My constituency has the biggest Holyhead. We also have the best nuclear site in the infrastructure project in the whole of Europe. Hinkley UK—Wylfa Newydd. The UK needs innovative solutions, Point C nuclear power station is taking shape. Who large-scale infrastructure and significant investment to masterminded this local planning? Who carried the achieve its 2050 target. The exemptions, tax and tariffs burden? It was Sedgemoor District Council. Sedgemoor incentives, customs facilities and regulatory easements is one of the four districts that Somerset wants to available to freeports would make Anglesey a global, gobble up in its greedy ambition to become a unitary sustainable energy investment base of choice. authority. Why? It is because the district councils do not Our final problem is that of re-establishing the UK’s squander public money. They save it and have shown place on a global stage outside of the EU. The competition that they do so year after year. What does Somerset for global capital is fierce and UK freeports are in County Council bring to the party? They bring nothing competition with those all over the world. Ambitious but trouble and, I am afraid, waste. It pleads poverty, and forward-looking proposals such as ours will future- and begs for more, but it does not deserve a bean. proof the UK’s position as a world player. By holistically Across the country, our secondary school head teachers applying the levers available, the freeport of Anglesey are furious with the council for ordering extra cuts that could become the jewel in the UK’s crown. will hurt the most vulnerable children in our society 797 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 798

[Mr Ian Liddell-Grainger] The hon. Member for Salford and Eccles (Rebecca Long Bailey) argued—indeed, it was a recurrent theme—that who desperately need all our help. The heads have no freeports would have the effect of watering down confidence in the overpaid oaf in charge of Somerset employment protections. The Opposition have no evidence schools. I do not think that I have confidence in any of for that viewpoint at all. There is no deregulatory them in the council, and I am not sure that I ever had. agenda whatever with freeports. Businesses and freeports The staff of Chief Executive Pat Flaherty call him “flat will have to abide by UK worker and environmental battery”, which is a little worrying. He actually could regulations, national minimum wage standards, workers’ not start a Dinky toy, let alone regenerate the economy. rights and the rest of it, just as any other company Most people say the council is a waste of space and would anywhere else in the UK. money—this has been going right across Somerset for The hon. Member for Gordon (Richard Thomson) the past few months.The public is not being fairly consulted raised the topic of freeports in Scotland. He did not about the unitary dream, which is, I am afraid, a remind the Committee, but he will be aware, that the scandal that lies at the door of the Secretary of State of Scottish Government originally rejected the idea of a Housing, Communities and Local Government. This is freeport, then rather changed their tune when they saw at the heart of the problem. The county chose to bid for the local reaction. I encourage him and the Scottish change, just as the pandemic started. It is crazy timing. Government, whatever their complexion after the election, Why the rush? It should have waited. People have to step forward and engage with the Government so suffered because of this, but the Government danced to that we can agree a freeport in Scotland. its tune and postponed the county elections, which were My hon. Friend the Member for Harwich and North meant to take place next month, depriving the voters of Essex (Sir Bernard Jenkin) talked about the different a democratic say. I worry about the state that we are in. elements, and was worried that somehow the offer had been watered down. I reassure him that, although he 11 pm did not notice that the structures and buildings allowance Instead, a pathetic online consultation has been offered. is legislated for in the Bill, the employer national insurance What help is that to us anywhere across the county? It contributions relief will be legislated for in a forthcoming ends tonight, and is still open, believe it or not, to Bill and the business rates relief will follow in due course. Vladimir Putin, Kim Jong-un, and any other tinpot My hon. Friend the Member for Thurrock dictator who wants to take part. People can do so from (Jackie Doyle-Price) rightly talked about the magnificent anywhere in the world. The consultation, I am afraid, is port at Tilbury. I have visited it myself, and a thoroughly a con. The district councils want Sedgemoor people to splendid and impressive thing it is too. Finally, my hon. help the Government to choose. They are ready to run Friend the Member for Bridgwater and West Somerset the legal referendum, which they will do, but my right put in what I think we can all agree was a typically hon. Friend the Secretary of State for Housing, low-key and restrained performance, for which we very Communities and Local Government says that it is too much thank him. He put me ineffably in mind of a great late for the decision. He even sent them a letter that I moment in a work of literature and film with which I believe was threatening—a grave mistake. am sure the House will be familiar: “Animal House”. Somerset people are proud. The last battle on British There is a marvellous moment where John Belushi’s soil was here. They take their democratic rights very future senator John Blutarsky says, “Was it over when seriously, and they will be determined to win—make no the Germans bombed Pearl Harbor?” There is a pause, bones about it. It is the people, not a pathetic county and someone says, “Leave him, he’s rolling.” That is council, who hold the key to economic regeneration in what I felt we should do with our dear friend the Somerset. They are the hard workers. They are the people Member for Bridgwater and West Somerset. With that, who go out every day and strive to push our county I will sit down. forward, be it at Hinkley Point or any of the other massive companies that we have down there. As long as the Ben Lake: It is a pleasure to close the debate this Chancellor remembers that, I will always support economic evening. We have had a very beneficial debate on two regeneration, provided that the money goes to the people, main points about freeports and regional economic districts and others who we know will spend it carefully development. We had a very good discussion about the and wisely, and ensure that we can be proud of Somerset, merits or otherwise of freeports for the areas in which not embarrassed by a bunch that do not care. they are located, and although I think we will continue to discuss whether any growth of investment generated Jesse Norman: I thank colleagues, not least my hon. by the sites will be new, partially new or a substitute for Friend the Member for Bridgwater and West Somerset or displacement of economic activity elsewhere, it has (Mr Liddell-Grainger), for a very entertaining and rowdy been a good debate nevertheless. end to the debate. Let me pick up some of the points My final point leads on from the question of whether that have been raised on this important subject. any growth in investment would be new or a reflection The hon. Member for Erith and Thamesmead (Abena of displacement of activity from elsewhere. That is Oppong-Asare) asked about expected revenue for freeports. particularly important when it comes to the question of As she will be aware, it is not really appropriate to levelling up and addressing regional inequalities and comment on that at the moment. These tax sites have disparities. We still need to discuss that further. One not yet been agreed. The revenues, or at least the associated potential solution in Wales’s case, for example, may be tax costs, are very much site-specific. I am therefore not to look again at the cap of just one freeport in Wales. in a position to comment on that, but of course once Perhaps we should have at least two. I am looking to the sites have been agreed, the appropriate estimates other Members—perhaps that is one way to address the will be brought forward. disagreements we have had tonight. 799 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 800

Either way, we have had a very good and beneficial Amendment 49, page 231, line 41, at end insert “, and debate and although I do not want to press my amendment (b) in subsection (2A), after “arrangements)” insert “or to a vote, I hope that the Minister will consider how the under Part 3 of Schedule 6C (relief for freeport tax Government can better work with the devolved sites) in a case to which paragraph 10A of that Governments to address some of these concerns and Schedule (alternative finance arrangements) applies”.” the need to co-ordinate policies for our economic This amendment makes provision about the payment of SDLT in development. I beg to ask leave to withdrawthe amendment. cases in which relief under Schedule 6C to the Finance Act 2003 Amendment, by leave, withdrawn. (freeport tax sites, inserted by Schedule 22 to the Bill) is withdrawn in cases involving certain alternative finance arrangements. Clauses 109 to 111 ordered to stand part of the Bill. Amendment 50, page 231, line 44, after “sites),” Schedule 21 agreed to. insert Schedule 22 “other than in a case to which paragraph 10A of that Schedule (alternative finance arrangements) applies,” RELIEF FROM STAMP DUTY LAND TAX FOR FREEPORT This amendment is consequential on Amendment 51. TAX SITES Amendment 51, page 232, line 2, after “81(1A);” Amendments made: 43, page 231, line 8, at end insert— insert— “(ca) Part 3A makes provision about cases involving “(azab) in the case of an amount payable because relief is alternative finance arrangements,” withdrawn under Part 3 of Schedule 6C (relief for This amendment is consequential on Amendment 52. freeport tax sites) in a case to which paragraph 10A of Amendment 44, page 231, line 26, after “sites),” that Schedule (alternative finance arrangements) applies, insert the date which is the date of the disqualifying event “other than in a case to which paragraph 10A of that Schedule for the purposes of section 81ZA (see subsection (3) (alternative finance arrangements) applies,” of that section);” This amendment is consequential on Amendment 45. This amendment makes provision about interest on unpaid SDLT in cases in which relief under Schedule 6C to the Finance Act 2003 Amendment 45, page 231, line 39, at end insert— (freeport tax sites, inserted by Schedule 22 to the Bill) is withdrawn “3A In section 81ZA (alternative finance arrangements: return in cases involving certain alternative finance arrangements. where relief withdrawn)— Amendment 52, page 235, line 25, at end insert— (a) in subsection (1), after “arrangements)” insert “or under Part 3 of Schedule 6C (relief for freeport tax sites) in a case to which paragraph 10A of that “PART 3A Schedule (alternative finance arrangements) applies”, (b) in subsection (3) (as substituted by Schedule 17 to this ALTERNATIVE FINANCE ARRANGEMENTS Act), at the end insert— Cases involving alternative finance arrangements “(c) where the relief was given under Part 2 of Schedule 6C, the last day in the control period on which the 10A (1) This paragraph applies where either of the following qualifying freeport land is used exclusively in a applies— qualifying manner.”, and (a) section 71A (land sold to financial institution and (c) after subsection (6) insert— leased to person), or “(6A) Terms used in paragraph (c) of subsection (3) (b) section 73 (land sold to financial institution and which are defined for the purposes of Schedule 6C re-sold to person). have the same meaning in that paragraph as they have in that Schedule (as modified by paragraph 10A of (2) This paragraph applies for the purposes of determining— that Schedule). (a) whether relief is available under Part 2 of this Schedule (6B) Paragraph 10 of Schedule 6C (as modified by for the first transaction, and paragraph 10A of that Schedule) applies for the (b) whether relief allowed for the first transaction is purposes of subsection (3)(c) as it applies for the withdrawn under Part 3 of this Schedule. purposes of paragraph 8 of that Schedule.” (3) For those purposes this Schedule has effect as if— “3B In section 85(3) (liability for tax), after “arrangements)” insert “or under Part 3 of Schedule 6C (relief for freeport tax (a) references to the purchaser were references to the sites) in a case to which paragraph 10A of that Schedule relevant person, and (alternative finance arrangements) applies”.” (b) the reference in paragraph 3(2)(d) to land held (as This amendment makes provision about returns, and liability to stock of the business) for resale without development SDLT, in cases in which relief under Schedule 6C to the Finance or redevelopment were a reference to land held in Act 2003 (freeport tax sites, inserted by Schedule 22 to the Bill) is that manner by the relevant person. withdrawn in cases involving certain alternative finance arrangements. (4) The first transaction does not qualify for relief under Part 2 Amendment 46, page 231, line 40, leave out “86(2)” of this Schedule except where it does so by virtue of this paragraph. and insert “86” (5) In this paragraph— This amendment is consequential on Amendment 49. “the first transaction” has the same meaning as in Amendment 47, page 231, line 40, after “tax)” insert section 71A or 73 (as appropriate); “— “the relevant person” means the person, other than the (a) in subsection (2),” financial institution, who entered into the arrangements mentioned in section 71A(1) or 73(1) This amendment is consequential on Amendment 49. (as appropriate).”—(Jesse Norman.) Amendment 48, page 231, line 41, after “sites),” This amendment makes provision about the operation of insert Schedule 6C to the Finance Act 2003 (relief from SDLT for “other than in a case to which paragraph 10A of that Schedule freeport tax sites, inserted by Schedule 22 to the Bill) in cases (alternative finance arrangements) applies,” involving certain alternative finance arrangements. This amendment is consequential on Amendment 49. Schedule 22, as amended, agreed to. 801 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 802

New Clause 25 Efford, Clive MacNeil, Angus Brendan Elliott, Julie Madders, Justin REVIEW OF FREEPORTS Elmore, Chris Mahmood, Mr Khalid Eshalomi, Florence Mahmood, Shabana “(1) The Chancellor of the Exchequer must review the impact Esterson, Bill Malhotra, Seema of sections 109 to 111 and schedules 21 and 22 of this Act and Evans, Chris Maskell, Rachael lay a report of that review before the House of Commons within Farron, Tim Matheson, Christian six months of the passing of this Act and once a year thereafter. Farry, Stephen Mc Nally, John (2) A review under this section must estimate the expected Fellows, Marion McCabe, Steve impact of sections 109 to 111 and schedules 21 and 22 on— Ferrier, Margaret McCarthy, Kerry (a) job creation within the sites designated as freeports Fletcher, Colleen McDonald, Andy and across the UK as a whole, Flynn, Stephen McDonald, Stewart Malcolm (b) revenue from corporation tax and stamp duty land tax Fovargue, Yvonne McDonald, Stuart C. within the sites designated as freeports and across the Foxcroft, Vicky McDonnell, rh John UK as a whole, Foy, Mary Kelly McFadden, rh Mr Pat (c) levels of artificial tax avoidance and tax evasion across Gardiner, Barry McGinn, Conor the UK as a whole, Gibson, Patricia McGovern, Alison (d) levels of criminal activity, Gill, Preet Kaur McKinnell, Catherine (e) the necessary level of staffing for HMRC and the UK Glindon, Mary McLaughlin, Anne Border Force, and Grady, Patrick McMahon, Jim (f) departmental spending by HMRC and other departments Grant, Peter McMorrin, Anna on enforcement.”—(Abena Oppong-Asare.) Green, Kate Mearns, Ian Greenwood, Lilian Miliband, rh Edward This new clause would require the Government to review the impact Greenwood, Margaret Mishra, Navendu of the provisions of the Act introducing freeports and publish regular reports setting out the findings. Griffith, Nia Monaghan, Carol Gwynne, Andrew Moran, Layla Brought up, and read the First time. Haigh, Louise Morden, Jessica Question put, That the clause be read a Second time. Hamilton, Fabian Morgan, Stephen Hanna, Claire Morris, Grahame The Committee divided: Ayes 260, Noes 366. Hardy, Emma Murray, Ian Division No. 266] [11.8 pm Harman, rh Ms Harriet Murray, James Harris, Carolyn Nandy, Lisa AYES Hayes, Helen Newlands, Gavin Healey, rh John Nichols, Charlotte Abbott, rh Ms Diane Carmichael, rh Mr Alistair Hendrick, Sir Mark Nicolson, John Abrahams, Debbie Chamberlain, Wendy Hendry, Drew Norris, Alex Ali, Rushanara Champion, Sarah Hillier, Meg O’Hara, Brendan Ali, Tahir Chapman, Douglas Hobhouse, Wera Olney, Sarah Allin-Khan, Dr Rosena Cherry, Joanna Hodge, rh Dame Margaret Onwurah, Chi Amesbury, Mike Clark, Feryal Hodgson, Mrs Sharon Oppong-Asare, Abena Anderson, Fleur Cooper, Daisy Hollern, Kate Osamor, Kate Antoniazzi, Tonia Cooper, Rosie Hopkins, Rachel Osborne, Kate Ashworth, rh Jonathan Cooper, rh Yvette Hosie, rh Stewart Oswald, Kirsten Bardell, Hannah Corbyn, rh Jeremy Howarth, rh Sir George Owatemi, Taiwo Barker, Paula Cowan, Ronnie Huq, Dr Rupa Owen, Sarah Beckett, rh Margaret Coyle, Neil Hussain, Imran Peacock, Stephanie Begum, Apsana Crawley, Angela Jardine, Christine Pennycook, Matthew Benn, rh Hilary Creasy, Stella Jarvis, Dan Perkins, Mr Toby Betts, Mr Clive Cruddas, Jon Johnson, rh Dame Diana Phillips, Jess Black, Mhairi Cryer, John Johnson, Kim Phillipson, Bridget Blackford, rh Ian Cummins, Judith Jones, Darren Pollard, Luke Blackman, Kirsty Cunningham, Alex Jones, Gerald Powell, Lucy Blake, Olivia Daby, Janet Jones, rh Mr Kevan Qureshi, Yasmin Blomfield, Paul Davey, rh Ed Jones, Ruth Rayner, rh Angela Bonnar, Steven David, Wayne Jones, Sarah Reed, Steve Brabin, Tracy Davies, Geraint Kane, Mike Rees, Christina Bradshaw, rh Mr Ben Davies-Jones, Alex Keeley, Barbara Reeves, Ellie Brennan, Kevin Day, Martyn Kendall, Liz Reeves, Rachel Brock, Deidre De Cordova, Marsha Khan, Afzal Reynolds, Jonathan Brown, Alan Debbonaire, Thangam Kinnock, Stephen Ribeiro-Addy, Bell Brown, Ms Lyn Dhesi, Mr Tanmanjeet Singh Kyle, Peter Rimmer, Ms Marie Brown, rh Mr Nicholas Docherty-Hughes, Martin Bryant, Chris Dodds, Anneliese Lake, Ben Rodda, Matt Buck, Ms Karen Doogan, Dave Lammy, rh Mr David Russell-Moyle, Lloyd Burgon, Richard Dorans, Allan Lavery, Ian Saville Roberts, rh Liz Butler, Dawn Doughty, Stephen Law, Chris Shah, Naz Byrne, Ian Dowd, Peter Lewell-Buck, Mrs Emma Sharma, Mr Virendra Byrne, rh Liam Dromey, Jack Lewis, Clive Sheerman, Mr Barry Cadbury, Ruth Duffield, Rosie Linden, David Sheppard, Tommy Callaghan, Amy Eagle, Dame Angela Lloyd, Tony Siddiq, Tulip Cameron, Dr Lisa Eagle, Maria Long Bailey, Rebecca Slaughter, Andy Campbell, rh Sir Alan Eastwood, Colum Lucas, Caroline Smith, Alyn Carden, Dan Edwards, Jonathan Lynch, Holly Smith, Cat 803 Finance (No. 2) Bill 19 APRIL 2021 Finance (No. 2) Bill 804

Smith, Nick Turner, Karl Drummond, Mrs Flick Holmes, Paul Smyth, Karin Twigg, Derek Duddridge, James Howell, John Sobel, Alex Twist, Liz Duguid, David Howell, Paul Spellar, rh John Vaz, rh Valerie Duncan Smith, rh Sir Iain Huddleston, Nigel Starmer, rh Keir Webbe, Claudia Dunne, rh Philip Hudson, Dr Neil Stephens, Chris West, Catherine Eastwood, Mark Hughes, Eddie Stevens, Jo Western, Matt Edwards, Ruth Hunt, Jane Stone, Jamie Whitehead, Dr Alan Ellis, rh Michael Hunt, rh Jeremy Streeting, Wes Whitford, Dr Philippa Ellwood, rh Mr Tobias Hunt, Tom Stringer, Graham Whitley, Mick Elphicke, Mrs Natalie Jack, rh Mr Alister Sultana, Zarah Whittome, Nadia Eustice, rh George Javid, rh Sajid Tarry, Sam Williams, Hywel Evans, Dr Luke Jayawardena, Mr Ranil Thewliss, Alison Wilson, Munira Evennett, rh Sir David Jenkin, Sir Bernard Thomas, Gareth Winter, Beth Everitt, Ben Jenkinson, Mark Thomas-Symonds, rh Nick Wishart, Pete Fabricant, Michael Jenkyns, Andrea Thompson, Owen Yasin, Mohammad Farris, Laura Jenrick, rh Robert Thomson, Richard Zeichner, Daniel Fell, Simon Johnson, rh Boris Thornberry, rh Emily Tellers for the Ayes: Fletcher, Katherine Johnson, Dr Caroline Timms, rh Stephen Mark Tami and Fletcher, Mark Johnson, Gareth Trickett, Jon Bambos Charalambous Fletcher, Nick Johnston, David Ford, Vicky Jones, Andrew Foster, Kevin Jones, rh Mr David NOES Fox, rh Dr Liam Jones, Fay Adams, Nigel Buckland, rh Robert Francois, rh Mr Mark Jones, Mr Marcus Afolami, Bim Burghart, Alex Frazer, rh Lucy Jupp, Simon Afriyie, Adam Burns, rh Conor Freeman, George Kawczynski, Daniel Ahmad Khan, Imran Butler, Rob Freer, Mike Kearns, Alicia Aiken, Nickie Cairns, rh Alun Fuller, Richard Keegan, Gillian Aldous, Peter Campbell, Mr Gregory Fysh, Mr Marcus Knight, rh Sir Greg Allan, Lucy Carter, Andy Gale, rh Sir Roger Knight, Julian Amess, Sir David Cartlidge, James Garnier, Mark Kruger, Danny Anderson, Lee Cash, Sir William Ghani, Ms Nusrat Kwarteng, rh Kwasi Anderson, Stuart Cates, Miriam Gibb, rh Nick Lamont, John Andrew, rh Stuart Chalk, Alex Gibson, Peter Largan, Robert Ansell, Caroline Chishti, Rehman Gideon, Jo Latham, Mrs Pauline Argar, Edward Churchill, Jo Girvan, Paul Leadsom, rh Andrea Atherton, Sarah Clark, rh Greg Glen, John Leigh, rh Sir Edward Atkins, Victoria Clarke, Mr Simon Goodwill, rh Mr Robert Levy, Ian Bacon, Gareth Clarke, Theo Gove, rh Michael Lewer, Andrew Bacon, Mr Richard Clarke-Smith, Brendan Graham, Richard Lewis, rh Brandon Badenoch, Kemi Clarkson, Chris Grant, Mrs Helen Lewis, rh Dr Julian Bailey, Shaun Cleverly, rh James Gray, James Liddell-Grainger, Mr Ian Baillie, Siobhan Clifton-Brown, Sir Geoffrey Grayling, rh Chris Lockhart, Carla Baker, Duncan Coffey, rh Dr Thérèse Green, Chris Loder, Chris Baker, Mr Steve Colburn, Elliot Green, rh Damian Logan, Mark Baldwin, Harriett Collins, Damian Griffith, Andrew Longhi, Marco Barclay, rh Steve Costa, Alberto Griffiths, Kate Lopez, Julia Baron, Mr John Courts, Robert Grundy, James Lopresti, Jack Baynes, Simon Coutinho, Claire Gullis, Jonathan Lord, Mr Jonathan Bell, Aaron Cox, rh Sir Geoffrey Halfon, rh Robert Loughton, Tim Benton, Scott Crabb, rh Stephen Hall, Luke Mackinlay, Craig Beresford, Sir Paul Crosbie, Virginia Hammond, Stephen Mackrory, Cherilyn Berry, rh Jake Crouch, Tracey Hancock, rh Matt Maclean, Rachel Bhatti, Saqib Daly, James Hands, rh Greg Mak, Alan Blackman, Bob Davies, David T. C. Harper, rh Mr Mark Malthouse, Kit Blunt, Crispin Davies, Gareth Harris, Rebecca Mangnall, Anthony Bone, Mr Peter Davies, Dr James Harrison, Trudy Mann, Scott Bottomley, Sir Peter Davies, Mims Hart, Sally-Ann Marson, Julie Bowie, Andrew Davies, Philip Hart, rh Simon May, rh Mrs Theresa Bradley, Ben Davis, rh Mr David Hayes, rh Sir John Mayhew, Jerome Bradley, rh Karen Davison, Dehenna Heald, rh Sir Oliver Maynard, Paul Brady, Sir Graham Dinenage, Caroline Heappey, James McCartney, Jason Braverman, rh Suella Dines, Miss Sarah Heaton-Harris, Chris McCartney, Karl Brereton, Jack Djanogly, Mr Jonathan Henderson, Gordon McPartland, Stephen Bridgen, Andrew Docherty, Leo Henry, Darren McVey, rh Esther Brine, Steve Donaldson, rh Sir Jeffrey M. Higginbotham, Antony Menzies, Mark Bristow, Paul Donelan, Michelle Hinds, rh Damian Mercer, Johnny Britcliffe, Sara Dorries, Ms Nadine Hoare, Simon Merriman, Huw Brokenshire, rh James Double, Steve Holden, Mr Richard Metcalfe, Stephen Browne, Anthony Dowden, rh Oliver Hollinrake, Kevin Millar, Robin Bruce, Fiona Doyle-Price, Jackie Hollobone, Mr Philip Miller, rh Mrs Maria Buchan, Felicity Drax, Richard Holloway, Adam Milling, rh Amanda 805 Finance (No. 2) Bill 19 APRIL 2021 806

Mills, Nigel Shannon, Jim Wilson, rh Sammy Zahawi, Nadhim Mitchell, rh Mr Andrew Shapps, rh Grant Wood, Mike Mohindra, Mr Gagan Sharma, rh Alok Wragg, Mr William Tellers for the Noes: Moore, Damien Shelbrooke, rh Alec Wright, rh Jeremy James Morris and Moore, Robbie Simmonds, David Young, Jacob Maria Caulfield Mordaunt, rh Penny Skidmore, rh Chris Morris, Anne Marie Smith, Chloe Question accordingly negatived. Morris, David Smith, Greg Morrissey, Joy Smith, Henry Morton, Wendy Smith, rh Julian The list of Members currently certified as eligible for a Mullan, Dr Kieran Smith, Royston proxy vote, and of the Members nominated as their Mumby-Croft, Holly Solloway, Amanda proxy, is published at the end of today’s debates. Mundell, rh David Spencer, Dr Ben To report progress and ask leave to sit again.— Murray, Mrs Sheryll Spencer, rh Mark (James Morris.) Murrison, rh Dr Andrew Stafford, Alexander Neill, Sir Robert Stephenson, Andrew The Deputy Speaker resumed the Chair. Nici, Lia Stevenson, Jane Nokes, rh Caroline Stevenson, John Progress reported; Committee to sit again tomorrow. Norman, rh Jesse Stewart, rh Bob O’Brien, Neil Stewart, Iain Business without Debate Offord, Dr Matthew Streeter, Sir Gary Opperman, Guy Stride, rh Mel Paisley, Ian Stuart, Graham DELEGATED LEGISLATION Parish, Neil Sturdy, Julian Motion made, and Question put forthwith (Standing Patel, rh Priti Sunak, rh Rishi Order No. 118(6)), Paterson, rh Mr Owen Sunderland, James Pawsey, Mark Swayne, rh Sir Desmond Penning, rh Sir Mike Syms, Sir Robert EXITING THE EUROPEAN UNION Penrose, John Thomas, Derek (COMPANIES) Percy, Andrew Throup, Maggie That the draft International Accounting Standards (Delegation Philp, Chris Timpson, Edward of Functions) (EU Exit) Regulations 2021, which were laid before Pincher, rh Christopher Tolhurst, Kelly this House on 1 February, be approved.—(James Morris.) Poulter, Dr Dan Tomlinson, Justin Question agreed to. Pow, Rebecca Tomlinson, Michael Prentis, Victoria Tracey, Craig Motion made, and Question put forthwith (Standing Pritchard, rh Mark Trevelyan, rh Anne-Marie Order No. 118(6)), Pursglove, Tom Trott, Laura Quin, Jeremy Truss, rh Elizabeth CLIMATE CHANGE Quince, Will Tugendhat, Tom That the draft Greenhouse Gas Emissions Trading Scheme Raab, rh Dominic Vara, Shailesh Auctioning Regulations 2021, which were laid before this House Randall, Tom Vickers, Martin on 11 February, be approved.—(James Morris.) Redwood, rh John Vickers, Matt Question agreed to. Rees-Mogg, rh Mr Jacob Villiers, rh Theresa Richards, Nicola Wakeford, Christian Motion made, and Question put forthwith (Standing Richardson, Angela Walker, Mr Robin Order No. 118(6)), Roberts, Rob Wallace, rh Mr Ben Robertson, Mr Laurence Wallis, Dr Jamie EXITING THE EUROPEAN UNION Robinson, Gavin Warburton, David (FINANCIAL SERVICES) Robinson, Mary Warman, Matt That the draft Recognised Auction Platforms (Amendment Rosindell, Andrew Watling, Giles and Miscellaneous Provisions) Regulations 2021, which were laid Ross, Douglas Webb, Suzanne before this House on 8 March, be approved.—(James Morris.) Rowley, Lee Whately, Helen Russell, Dean Wheeler, Mrs Heather Rutley, David Whittaker, Craig DELEGATED LEGISLATION (COMMITTEES) Sambrook, Gary Whittingdale, rh Mr John Ordered, Saxby, Selaine Wiggin, Bill Scully, Paul Wild, James That the Heather and Grass etc. Burning (England) Regulations 2021 (S.I. 2021, No. 158), laid before this House on 16 February, Seely, Bob Williams, Craig be referred to a Delegated Legislation Committee.—(James Morris.) Selous, Andrew Williamson, rh Gavin 807 19 APRIL 2021 Gender Pension Gap 808

Gender Pension Gap obligation to deliver for them and that the WASPI women in our constituencies who have contacted us That this House Motion made, and Question proposed, deserve to know that the battle has not ended for them? do now adjourn.—(James Morris.) Patricia Gibson: The hon. Gentleman is absolutely 11.19 pm right. It is impossible, in all conscience, to have any Patricia Gibson (North Ayrshire and Arran) (SNP): I debate about pensions and not mention the plight and am delighted to have secured this important debate on difficulties into which the WASPI women have been the gender pension gap, which stands at a shameful thrust. Indeed, it would be remiss not to mention them 40.3%—more than double the gender pay gap of 17.3%. and to pay tribute to the dignified campaign that they That is truly shocking, and I hope that the debate will have fought and continue to fight. both highlight this terrible inequality and perhaps persuade Let us take pension credit as an example. The uptake the UK Government to take some fairly straightforward of pension credit is only around 60%—a matter that I measures to address it if they are truly committed to have raised repeatedly over the years in the House, pension justice and equality. urging the UK Government to do more to improve uptake. We are all aware of the justifications for women’s Doing so could play an important part in helping to state pension age being raised, but equalising state close the gender pension gap, since women are much pension ages is very different from pension equality. We more likely to need to rely on pension credit, which is could simply throw our hands in the air and exclaim additional support for the poorest pensioners, as their that women have always had lower pensions than men, lifetime earnings tend to be lower than men’s. However, and that is just the way it is, but it need not be this way. the so-called triple lock on state pensions does not It is simply unacceptable that all types of pension apply to pension credit. This means that the poorest provision—whether state pensions, workplace pensions pensioners, who tend to be women, do not have the same orprivatepensions—inherentlydiscriminateagainstwomen. income protection as those pensioners who are better off. If they choose to do so, the UK Government could In addition to this gender penalty, the very lowest tackle this and thereby tackle the poverty that too many earners, who we know tend to be women—I keep saying women face in old age. This can wait no longer, as an it because it bears repeating—are excluded from building increasing proportion of women are simply not able to credit on their state pension. Those who have a job rely on their partner’s income in retirement, and nor earning below the lower earnings threshold get no credit should they be required to. for their state pension at all, and that applies even if a person has more than one job. This exclusion David Linden (Glasgow East) (SNP): I congratulate disproportionately hits women hard as they are more my hon. Friend most sincerely on securing the debate. likely to be in part-time work. When the Minister gets The average woman in her 20s in the UK will have to to his feet, I hope that he will explain why this stubborn work almost 40 years longer than her male counterpart inflexibility in the national insurance system has not to build up the same pension. Indeed, a female saver been addressed and when we can expect this pitfall—that can expect to have £100,000 less in retirement savings is what it is—to be removed, as it contributes to the thanks to time taken out of the workplace to raise impoverishment of women in retirement. The lower children. In the previous debate, the Government spoke earnings threshold should be abolished so that all workers an awful lot about levelling up. Does she agree that, if can claim credit for state pension, no matter the level of the Government are serious about levelling up, the first their earnings. thing they could do is tackle the injustice of the gender The gender pension gap is exacerbated in all sorts of pension gap? sneaky and labyrinthine ways, some of which most Patricia Gibson: Absolutely. I know that the Minister women do not know about due to the arcane nature of will be listening intently, and I hope he will take away the system. The UK Government could fix many of the reasonable and straightforward suggestions that I these problems almost at a stroke; why this has not will make this evening, so that we can truly level up in happened is curious. the way that the Government say they want to. For example, even if a woman is not currently in paid Women born in the 1950s—WASPI women, or Women work, if she claims child benefit for a child under 12, Against State Pension Inequality—have suffered hugely she will get national insurance credit towards her state as their state pension age was accelerated, giving them pension, and is treated as though she has contributed to insufficient time to prepare for retirement. Despite the national insurance while she claims that child benefit, clamour of outrage, the Government have refused to do when her state pension is calculated. Even if her partner’s anything to address the hardship caused to the women earnings deem her ineligible for child benefit, she needs affected. I wish I could say that that policy decision was to apply in order to get national insurance credit. Who the only one that targets women in retirement. I wish knew? this was the only measure I could find that has transformed If a woman finds out subsequently about this rather retirement into a time of financial uncertainty and silly and pointless method of gender discrimination—well, fiscal pressure for women. Sadly, it is a mere continuation too bad. She cannot backdate her claim. In addition, of policy choices that have contributed to—indeed, research has shown that huge numbers of women simply exacerbated—the gender pension gap under which too do not know how child benefit claims affect their state many women now labour. pension calculation. And who could blame them? It would be fairly simple for the UK Government to address Jim Shannon (Strangford) (DUP): The hon. Lady, this by allowing all women who are looking after their myself and others in this Chamber have supported the children to claim state pension credit. Why not? What is WASPI women the whole way through. Does she agree the obstacle to this change, which could play a part in that there is not only a legal obligation but a moral reducing the shameful gender pension gap? 809 Gender Pension Gap 19 APRIL 2021 Gender Pension Gap 810

[Patricia Gibson] If that was not bad enough, those who are auto-enrolled into their workplace pension are often forced to pay an Let me turn to the issue of temporarily leaving the additional 25% for their pensions if they earn between workforce to look after children adversely impacting on £10,000 and £12,000. Again, that situation tends to a woman’s pension. Workplace pensions discriminate affect women disproportionately and is due to the type against women, who tend to earn less and to have of pension an employer may use, which operates on a interrupted careers, meaning that they are active in the net pay basis. That means that the employee has to pay workplace for fewer years than men. This means that extra to their pension provider instead of receiving the their workplace pensions are lower, as well as their state tax relief they could have in a different type of pension pensions. This could be mitigated if the Government scheme, such as a relief at source scheme. Sadly, it seems introduced a family carer’stop-up, whereby the Government that most employers use the net pay scheme, so would paythe equivalent of the employer’scontribution—at contributions are collected before tax. least at the level of minimum wage—into women’s However, if the relief at source scheme were used, pensions if they are taking time out as carers. This women would benefit from an additional £8,000 in their would equate to around £820 per year and would boost pensions over their working lives. We have, quite frankly, pension outcomes for women by 20% if they took a disgraceful situation in which women, who are most 10 years out of the workforce to undertake caring in need of help in building up their pension pots, are responsibilities and return to the workforce thereafter. forced to pay more, usually without knowledge of how Importantly, research shows that this could close half they are being financially penalised. If we want pension the pension wealth gap that is created by taking time equality, why are the Government not legislating so that out of work to care for others—so far, so good. employers and pension providers ensure workers are It was always traditionally the case that women were enrolled into schemes that will qualify for tax relief? forced to leave company pensions if they married or If, after all that, a woman finds herself widowed, her switched to part-time working. I have lost count of the late husband’s life annuity will probably not provide her number of WASPI women who have told me that they with any income, meaning that after the shock of being were forced out of occupational pension provisions widowed many women are thrown into poverty,financially when they married. However, we know that women also unprotected. Similarly, if a woman is divorced, she may tended to be less likely even to be offered an occupational find herself in poverty in retirement. Indeed, she is pension in the first place due to the types of jobs more likely to do so. It seems clear that there are women traditionally did. Again, we have inherent bias institutional, inherent, ingrained and unfair barriers to against women’s workplace pensions. women being able properly and fairly to build up a pension pot that will offer them protection from poverty We also need to remember that some workplace in their later years. pensions do not aggregate women’s pensions following maternity leave. Not merging periods of pension service The obstacles, problems and barriers have been set means that women have a reduced pension when they out clearly tonight, and the Minister has been listening retire, relative to their male counterparts. Surely it to the potential solutions. I urge him to respond to each cannot be beyond the wit of this Government to regulate barrier and to indicate what his Government will do to pension provision so that women’s pension rights address the shocking and unacceptable gender pension can be preserved whilst caring responsibilities are gap that exposes women to poverty and hardship in attended to? their later years, because it does not have to be this way. If this litany of how women get a raw pension deal 11.34 pm and suffer institutional bias seems to be long, I am afraid it is set to become longer still, because we have The Parliamentary Under-Secretary of State for Work not yet considered auto-enrolment. This much-heralded and Pensions (Guy Opperman): It is my mission as programme to ensure all employers provide workplace pensions Minister to make the UK pensions system pensions leaves out, ignores and simply does not take safer, better and greener. We are doing that in a variety into account millions of women. of ways, ranging from our world-leading climate change and environmental, social and governance reforms, which How can that be? It is actually very simple. Those positively impact pension investments, to taking tough who earn less than £10,000—again, disproportionately action on scams and unscrupulous bosses, and through women of course—do not benefit from auto-enrolment our work to make pensions simpler and more easily and therefore do not benefit from their employer’s understood with dashboards, and to tackle inequality. pension contribution. Again, it does not matter if someone I congratulate the hon. Member for North Ayrshire has two part-time jobs, because if each pays below and Arran (Patricia Gibson) on securing this important £10,000, they miss out on auto-enrolment and the debate. This Government, like previous Governments, employer’s contribution to the pension. recognise that this is an important issue—one that we New research from the Pensions Policy Institute shows remain committed to addressing. It is one of the key that almost half of single mothers are currently ineligible drivers of the automatic enrolment reforms and the for auto-enrolment—almost half. Does the Minister 2016 new state pension reforms, both of which help to think that is acceptable? What will he do to persuade his address the issue raised. Through automatic enrolment Government to remove the £10,000 earnings limit for and the new state pension, we are enabling more women auto-enrolment so that the threshold can be reduced to to build up pension provision in their own right, reducing the very first pound earned? When one considers the historical inequalities in the pension system. part that that measure alone could play in helping to With respect to the hon. Lady, I submit that automatic reduce the gender pay gap, I can think of no good enrolment has been a genuine game changer in workplace reason not to do it. savings. It has happened over the past nine years, but 811 Gender Pension Gap 19 APRIL 2021 Gender Pension Gap 812 the work has been done by successive Governments, closed and the Treasury is continuing to analyse the including a Labour Government, who set up the Turner responses to it. The Treasury will, in the usual way, commission. Automatic enrolment was commenced by respond and publish its response shortly. Although the the coalition Government in 2012, before the original hon. Lady legitimately and rightly raises a matter that, blueprint was fully rolled out by this Conservative to be fair, is also in the Conservative party manifesto as Government in 2018-19. Savings of 8% are now the an issue to be addressed, the Treasury is addressing and norm, and 10.5 million employees have been automatically has the matter in hand. enrolled by more than 1 million employers. I will briefly touch on the very important issue of the Overall workplace pension participation for eligible self-employed. Weremain committed to developing effective, employees has increased by 44 percentage points since durable retirement solutions for the self-employed. We 2012, reaching 86% in 2019. It has been especially commenced trialling a research programme in 2019-20 transformative for women, low earners and young people, to test differing approaches aimed at improving retirement who have historically been poorly served by or excluded savings for self-employed people, looking at the role of from workplace pensions. The proportion of women behavioural messages and saving mechanisms using participating in a workplace pension reached 86% in financial digital platforms. Some of those trials were 2019, which is double what it was in 2012. Some 79% of paused during the covid pandemic for obvious reasons, low earners now save into a workplace pension, which is but the work is done such that we hope to recommence more than double what it was in 2012. Finally, 85% of trials this summer. We are also specifically working with young people now save into a workplace pension, which, Her Majesty’s Revenue and Customs to incorporate again, is well over double what it was in 2012. self-employed pension solutions into the Making Tax Digital programme that HMRC is rolling out, which I David Linden: I do not think anybody in this House believe will genuinely assist the issue in relation to the would quibble with the fact that automatic enrolment self-employed. has been a success story, but the point outlined by my Turning to the desire to make pensions simpler, more hon. Friend the Member for North Ayrshire and Arran understandable and more practical, we are taking several is that the £10,000 trigger in place discriminates against measures to address that. In particular, the House will women. Why do the Government have such an objection be aware of the pensions dashboard, which we took to making sure that the trigger kicks in at the first through in the Pension Schemes Act 2021. We are also pound, rather than waiting until £10,000, which is so driving forward the two-page annual pensions benefit disadvantageous to women? statement, which will take the dozens of pages that were very hard to comprehend and make them into a simple Guy Opperman: I am grateful to the hon. Gentleman two-page statement. We believe simplicity is key. We for raising that point, because I am coming to that want all savers to be easily able to understand their specific issue. He will be aware that we conducted a pensions savings, so they can plan for the retirement review of automatic enrolment and that we are committed they want. We believe that communications should be to implementing its findings by the mid-2020s. We designed with savers’ needs in mind to encourage intend to remove the lower earnings limit, which will such engagement. Effective engagement will require a benefit low earners, and for the first time everyone will continued partnership between the various providers—the get an employer contribution from their very first pound Government, the advisory community and the savers in of earnings if they are enrolled or opt in. That will the longer term. improve the incentive to save, especially for women and those individuals working part-time in multiple jobs. In I also want to outline to the House—I believe it is addition, the review also proposed extending eligibility relevant to this debate—the pilot projects that we are to those aged 18, which will support younger people conducting up and down the country on the midlife with the opportunity to start saving earlier for a more MOT. This builds on the work of the private sector, in secure retirement. Clearly, there is a benefit in the hon. particular Aviva and others, looking particularly at Gentleman’s constituency. In the constituency of the interventions between the ages of 45 to 50. Effectively, it hon. Member for Strangford (Jim Shannon), for example, is looking at wealth, work and wellbeing. We have 7,000 people are currently automatically enrolled, and committed several hundred thousand pounds to a number thanks are due to the thousands of employers who are of pilot projects from Cornwall to the north-east and supporting them in that process. all across the country to ensure that there is a piloting of particular interventions to try to get people engaged Patricia Gibson: While the Minister is talking about with their pensions at an earlier stage and to see whether auto-enrolment, will he say whether he has any concerns real differences can be made. I thank the Financial about the issue I outlined about the employer using the Conduct Authority for meeting me on this issue today net pay basis, instead of the relief at source scheme, so as we try to drive forward this innovative change. that tax relief can be earned? The hon. Lady also raised the state pension and a number of issues in respect of it. She will be aware that Guy Opperman: The hon. Lady raised the RAS—relief the state pension has never been higher in this country. at source—issue, which is a legitimate one. It is a matter When we came into government, it was barely £66 billion governed by the Treasury. Obviously, I speak for all the in 2009-10. It is now approximately £100 billion-plus. Government, so I can try to address that point. She may There is a well over £1,000 real-terms increase by reason have missed it, but in the Budget the Government of the triple lock. Clearly, pension credit has increased announced a call for evidence on pensions tax relief as well. She will also be aware that our reforms have administration, in line with the Conservative Government’s seen the gap reduced between the state pensions of men manifesto commitment to review comprehensively relief and women. The new state pension system, introduced at source tax arrangements. The call for evidence is now by one of my predecessors, corrects some of the historic 813 Gender Pension Gap 19 APRIL 2021 Gender Pension Gap 814

[Guy Opperman] were decisions made in the early 1990s and then legislated for, fundamentally on grounds of equality, in 1995. The inequalities of the previous system. Over 3 million notice period, I suggest, was several decades. Whatever women stand to receive an average of £550 more per the hon. Lady’s views or mine, this matter was then year by 2030. The state pension outcomes are expected taken to the courts, and both the High Court and the to equalise more than a decade earlier than they would Court of Appeal rejected all legal claims of the state have under the old system. We believe that the new state pension age campaigners comprehensively, in highly pension, introduced from 2016, gives equal value to detailed judgments. national insurance contributions and credits, providing This Government, at the same time, have raised the access to the same level of entitlement for all. There is living wage, increased the personal allowance to £12,570, also a comprehensive framework of credits available introduced free childcare, introduced the returners when people are out of the workforce, for example programme and addressed shared parental leave, and caring for children or elderly relatives. This will protect spent record sums already on universal credit, disability people’s state pension position for those periods. support and, as I say, state pension. We have introduced the “Check your state pension I thank all hon. Members for participating in this forecast” service, which I strongly recommend. There is debate and showing a clear passion for improving pension also a desire for everyone to find out whether filling any outcomes for women. I believe that this Government gaps will increase their payments when they reach state and previous Governments have made progress. I accept pension age. In particular, that should be done in respect that there is more to do and that closing the gender of gaps since 2016, because filling in the gaps, by either pension gap remains a priority for all. receiving credits or making voluntary national insurance Question put and agreed to. contributions, could increase state pension. The hon. Lady raised a number of additional points that I want to try to address. She raised the campaign 11.46 pm on the women’s state pension age increase. Clearly, these House adjourned. 815 19 APRIL 2021 Members Eligible for a Proxy Vote 816

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The following is the list of Members currently certified Scott Benton (Blackpool South) (Con) Stuart Andrew as eligible for a proxy vote, and of the Members nominated Sir Paul Beresford (Mole Valley) (Con) Stuart Andrew as their proxy: Jake Berry (Rossendale and Darwen) Stuart Andrew (Con) Member eligible for proxy vote Nominated proxy Clive Betts (Sheffield South East) (Lab) Chris Elmore Ms Diane Abbott (Hackney North and Bell Ribeiro-Addy Saqib Bhatti (Meriden) (Con) Stuart Andrew Stoke Newington) (Lab) Mhairi Black (Paisley and Renfrewshire Owen Thompson Debbie Abrahams (Oldham East and Chris Elmore South) (SNP) Saddleworth) (Lab) Ian Blackford (Ross, Skye and Owen Thompson Nigel Adams (Selby and Ainsty) (Con) Stuart Andrew Lochaber) (SNP) Bim Afolami (Hitchin and Harpenden) Stuart Andrew Bob Blackman (Harrow East) (Con) Stuart Andrew (Con) Kirsty Blackman (Aberdeen North) Owen Thompson Adam Afriyie (Windsor) (Con) Stuart Andrew (SNP) Imran Ahmad Khan (Wakefield) (Con) Stuart Andrew Olivia Blake (Sheffield, Hallam) (Lab) Chris Elmore Nickie Aiken (Cities of London and Stuart Andrew Paul Blomfield (Sheffield Central) Chris Elmore Westminster) (Con) (Lab) Peter Aldous (Waveney) (Con) Stuart Andrew Crispin Blunt (Reigate) (Con) Stuart Andrew Rushanara Ali (Bethnal Green and Chris Elmore Peter Bone (Wellingborough) (Con) Stuart Andrew Bow) (Lab) Steven Bonnar (Coatbridge, Chryston Owen Thompson Tahir Ali (Birmingham, Hall Green) Chris Elmore and Bellshill) (SNP) (Lab) Andrew Bowie (West Aberdeenshire Stuart Andrew Lucy Allan (Telford) (Con) Stuart Andrew and Kincardine) (Con) Dr Rosena Allin-Khan (Tooting) (Lab) Chris Elmore Tracy Brabin (Batley and Spen) (Lab/ Chris Elmore Mike Amesbury (Weaver Vale) (Lab) Chris Elmore Co-op) Sir David Amess (Southend West) Stuart Andrew Ben Bradley (Mansfield) (Con) Stuart Andrew (Con) Karen Bradley (Staffordshire Stuart Andrew Fleur Anderson (Putney) (Lab) Chris Elmore Moorlands) (Con) Lee Anderson (Ashfield) (Con) Stuart Andrew Ben Bradshaw (Exeter) (Lab) Chris Elmore Stuart Anderson (Wolverhampton Stuart Andrew Suella Braverman (Fareham) (Con) Stuart Andrew South West) (Con) Kevin Brennan (Cardiff West) (Lab) Chris Elmore Caroline Ansell (Eastbourne) (Con) Stuart Andrew Jack Brereton (Stoke-on-Trent South) Stuart Andrew Tonia Antoniazzi (Gower) (Lab) Chris Elmore (Con) Edward Argar (Charnwood) (Con) Stuart Andrew Andrew Bridgen (North West Stuart Andrew Jonathan Ashworth (Leicester South) Chris Elmore Leicestershire) (Con) (Lab) Steve Brine (Winchester) (Con) Stuart Andrew Sarah Atherton (Wrexham) (Con) Stuart Andrew Paul Bristow (Peterborough) (Con) Stuart Andrew Victoria Atkins (Louth and Stuart Andrew Sara Britcliffe (Hyndburn) (Con) Stuart Andrew Horncastle) (Con) Deidre Brock (Edinburgh North and Owen Thompson Gareth Bacon (Orpington) (Con) Stuart Andrew Leith) (SNP) Mr Richard Bacon (South Norfolk) Stuart Andrew James Brokenshire (Old Bexley and Stuart Andrew (Con) Sidcup) (Con) Kemi Badenoch (Saffron Walden) Stuart Andrew Alan Brown (Kilmarnock and Loudon) Owen Thompson (Con) (SNP) Shaun Bailey (West Bromwich West) Stuart Andrew Ms Lyn Brown (West Ham) (Lab) Chris Elmore (Con) Anthony Browne (South Stuart Andrew Siobhan Baillie (Stroud) (Con) Stuart Andrew Cambridgeshire) (Con) Duncan Baker (North Norfolk) (Con) Stuart Andrew Fiona Bruce (Congleton) (Con) Stuart Andrew Harriett Baldwin (West Worcestershire) Stuart Andrew Chris Bryant (Rhondda) (Lab) Chris Elmore (Con) Steve Barclay (North East Stuart Andrew Felicity Buchan (Kensington) (Con) Stuart Andrew Cambridgeshire) (Con) Ms Karen Buck (Westminster North) Chris Elmore Hannah Bardell (Livingston) (SNP) Owen Thompson (Lab) Paula Barker (Liverpool, Wavertree) Chris Elmore Robert Buckland (South Swindon) Stuart Andrew (Lab) (Con) Mr John Baron (Basildon and Stuart Andrew Alex Burghart (Brentwood and Ongar) Stuart Andrew Billericay) (Con) (Con) Simon Baynes (Clwyd South) (Con) Stuart Andrew Richard Burgon (Leeds East) (Lab) Bell Ribeiro-Addy Margaret Beckett (Derby South) (Lab) Chris Elmore Conor Burns (Bournemouth West) Stuart Andrew Apsana Begum (Poplar and Bell Ribeiro-Addy (Con) Limehouse) (Lab) Dawn Butler (Brent Central) (Lab) Bell Ribeiro-Addy Aaron Bell (Newcastle-under-Lyme) Stuart Andrew Rob Butler (Aylesbury) (Con) Stuart Andrew (Con) Ian Byrne (Liverpool, West Derby) Chris Elmore Hilary Benn (Leeds Central) (Lab) Chris Elmore (Lab) 817 Members Eligible for a Proxy Vote19 APRIL 2021 Members Eligible for a Proxy Vote 818

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Jack Dromey (Birmingham, Erdington) Chris Elmore Mary Kelly Foy (City of Durham) Bell Ribeiro-Addy (Lab) (Lab) Mrs Flick Drummond (Meon Valley) Stuart Andrew Mr Mark Francois (Rayleigh and Stuart Andrew (Con) Wickford) (Con) James Duddridge (Rochford and Stuart Andrew Lucy Frazer (South East Stuart Andrew Southend East) (Con) Cambridgeshire) (Con) Rosie Duffield (Canterbury) (Lab) Chris Elmore George Freeman (Mid Norfolk) (Con) Stuart Andrew David Duguid (Banff and Buchan) Stuart Andrew Mike Freer (Finchley and Golders Stuart Andrew (Con) Green) (Con) Sir Iain Duncan Smith (Chingford and Stuart Andrew Richard Fuller (North East Stuart Andrew Woodford Green) (Con) Bedfordshire) (Con) Philip Dunne (Ludlow) (Con) Stuart Andrew Marcus Fysh (Yeovil) (Con) Stuart Andrew Ms Angela Eagle (Wallasey) (Lab) Chris Elmore Sir Roger Gale (North Thanet) (Con) Stuart Andrew Maria Eagle (Garston and Halewood) Chris Elmore Barry Gardiner (Brent North) (Lab) Chris Elmore (Lab) Mark Garnier (Wyre Forest) (Con) Stuart Andrew Colum Eastwood (Foyle) (SDLP) Ben Lake Ms Nusrat Ghani (Wealden) (Con) Stuart Andrew Mark Eastwood (Dewsbury) (Con) Stuart Andrew Nick Gibb (Bognor Regis and Stuart Andrew Jonathan Edwards (Carmarthen East Stuart Andrew Littlehampton) (Con) and Dinefwr) (Ind) Patricia Gibson (North Ayrshire and Owen Thompson Ruth Edwards (Rushcliffe) (Con) Stuart Andrew Arran) (SNP) Clive Efford (Eltham) (Lab) Chris Elmore Peter Gibson (Darlington) (Con) Stuart Andrew Julie Elliott (Sunderland Central) (Lab) Chris Elmore Jo Gideon (Stoke-on-Trent Central) Stuart Andrew Michael Ellis (Northampton North) Stuart Andrew (Con) (Con) Preet Kaur Gill (Birmingham, Chris Elmore Mr Tobias Ellwood (Bournemouth Stuart Andrew Edgbaston) (Lab/Co-op) East) (Con) Paul Girvan (South Antrim) (DUP) Sammy Wilson Mrs Natalie Elphicke (Dover) (Con) Stuart Andrew John Glen (Salisbury) (Con) Stuart Andrew Florence Eshalomi (Vauxhall) (Lab/Co- Chris Elmore Mary Glindon (North Tyneside) (Lab) Chris Elmore op) Mr Robert Goodwill (Scarborough and Stuart Andrew Bill Esterson (Sefton Central) (Lab) Chris Elmore Whitby) (Con) George Eustice (Camborne and Stuart Andrew Michael Gove (Surrey Heath) (Con) Stuart Andrew Redruth) (Con) Patrick Grady (Glasgow North) (SNP) Owen Thompson Chris Evans (Islwyn) (Lab/Co-op) Chris Elmore Richard Graham (Gloucester) (Con) Stuart Andrew Dr Luke Evans (Bosworth) (Con) Stuart Andrew Mrs Helen Grant (Maidstone and The Stuart Andrew Sir David Evennett (Bexleyheath and Stuart Andrew Weald) (Con) Crayford) (Con) Peter Grant (Glenrothes) (SNP) Owen Thompson Ben Everitt (Milton Keynes North) Stuart Andrew James Gray (North Wiltshire) (Con) Stuart Andrew (Con) Chris Grayling (Epsom and Ewell) Stuart Andrew Michael Fabricant (Lichfield) (Con) Stuart Andrew (Con) Laura Farris (Newbury) (Con) Stuart Andrew Damian Green (Ashford) (Con) Stuart Andrew Tim Farron (Westmorland and Mr Alistair Kate Green (Stretford and Urmston) Chris Elmore Lonsdale) (LD) Carmichael (Lab) Stephen Farry (North Down) (Alliance) Mr Alistair Lilian Greenwood (Nottingham South) Chris Elmore Carmichael (Lab) Simon Fell (Barrow and Furness) (Con) Stuart Andrew Margaret Greenwood (Wirral West) Chris Elmore Marion Fellows (Motherwell and Owen Thompson (Lab) Wishaw) (SNP) Andrew Griffith (Arundel and South Stuart Andrew Margaret Ferrier (Rutherglen and Stuart Andrew Downs) (Con) Hamilton West) (Ind) Nia Griffith (Llanelli) (Lab) Chris Elmore Colleen Fletcher (Coventry North East) Chris Elmore Kate Griffiths (Burton) (Con) Stuart Andrew (Lab) James Grundy (Leigh) (Con) Stuart Andrew Katherine Fletcher (South Ribble) Stuart Andrew Jonathan Gullis (Stoke-on-Trent Stuart Andrew (Con) North) (Con) Mark Fletcher (Bolsover) (Con) Stuart Andrew Andrew Gwynne (Denton and Chris Elmore Nick Fletcher (Don Valley) (Con) Stuart Andrew Reddish) (Lab) Stephen Flynn (Aberdeen South) Owen Thompson Louise Haigh (Sheffield, Heeley) (Lab) Chris Elmore (SNP) Robert Halfon (Harlow) (Con) Stuart Andrew Vicky Ford (Chelmsford) (Con) Stuart Andrew Luke Hall (Thornbury and Yate) (Con) Stuart Andrew Kevin Foster (Torbay) (Con) Stuart Andrew Fabian Hamilton (Leeds North East) Chris Elmore Yvonne Fovargue (Makerfield) (Lab) Chris Elmore (Lab) Dr Liam Fox (North Somerset) (Con) Stuart Andrew Stephen Hammond (Wimbledon) Stuart Andrew Vicky Foxcroft (Lewisham, Deptford) Chris Elmore (Con) (Lab) Matt Hancock (West Suffolk) (Con) Stuart Andrew 821 Members Eligible for a Proxy Vote19 APRIL 2021 Members Eligible for a Proxy Vote 822

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Mr Barry Sheerman (Huddersfield) Chris Elmore Alison Thewliss (Glasgow Central) Owen Thompson (Lab/Co-op) (SNP) Alec Shelbrooke (Elmet and Rothwell) Stuart Andrew Derek Thomas (St Ives) (Con) Stuart Andrew (Con) Gareth Thomas (Harrow West) (Lab/ Chris Elmore Tommy Sheppard (Edinburgh East) Owen Thompson Co-op) (SNP) Nick Thomas-Symonds (Torfaen) (Lab) Chris Elmore Tulip Siddiq (Hampstead and Kilburn) Chris Elmore Emily Thornberry (Islington South and Chris Elmore (Lab) Finsbury) (Lab) David Simmonds (Ruislip, Northwood Stuart Andrew Maggie Throup (Erewash) (Con) Stuart Andrew and Pinner) (Con) Stephen Timms (East Ham) (Lab) Chris Elmore Chris Skidmore (Kingswood) (Con) Stuart Andrew Edward Timpson (Eddisbury) (Con) Stuart Andrew Andy Slaughter (Hammersmith) (Lab) Chris Elmore Kelly Tolhurst (Rochester and Strood) Stuart Andrew Cat Smith (Lancaster and Fleetwood) Chris Elmore (Con) (Lab) Justin Tomlinson (North Swindon) Stuart Andrew Chloe Smith (Norwich North) (Con) Stuart Andrew (Con) Greg Smith (Buckingham) (Con) Stuart Andrew Craig Tracey (North Warwickshire) Stuart Andrew Henry Smith (Crawley) (Con) Stuart Andrew (Con) Jeff Smith (Manchester, Withington) Chris Elmore Anne-Marie Trevelyan (Berwick-upon- Stuart Andrew (Lab) Tweed) (Con) Julian Smith (Skipton and Ripon) Stuart Andrew Jon Trickett (Hemsworth) (Lab) Bell Ribeiro-Addy (Con) Laura Trott (Sevenoaks) (Con) Stuart Andrew Nick Smith (Blaenau Gwent) (Lab) Chris Elmore Elizabeth Truss (South West Norfolk) Stuart Andrew Royston Smith (Southampton, Itchen) Stuart Andrew (Con) (Con) Tom Tugendhat (Tonbridge and Stuart Andrew Karin Smyth (Bristol South) (Lab) Chris Elmore Malling) (Con) Alex Sobel (Leeds North West) (Lab) Chris Elmore Karl Turner (Kingston upon Hull East) Chris Elmore Amanda Solloway (Derby North) Stuart Andrew (Lab) (Con) Derek Twigg (Halton) (Lab) Chris Elmore Dr Ben Spencer (Runnymede and Stuart Andrew Liz Twist (Blaydon) (Lab) Chris Elmore Weybridge) (Con) Mr Shailesh Vara (North West Stuart Andrew Alexander Stafford (Rother Valley) Stuart Andrew Cambridgeshire) (Con) (Con) Martin Vickers (Cleethorpes) (Con) Stuart Andrew Keir Starmer (Holborn and St Pancras) Chris Elmore Matt Vickers (Stockton South) (Con) Stuart Andrew (Lab) Theresa Villiers (Chipping Barnet) Stuart Andrew Chris Stephens (Glasgow South West) Owen Thompson (Con) (SNP) Christian Wakeford (Bury South) (Con) Stuart Andrew Andrew Stephenson (Pendle) (Con) Stuart Andrew Mr Robin Walker (Worcester) (Con) Stuart Andrew Jo Stevens (Cardiff Central) (Lab) Chris Elmore Mr Ben Wallace (Wyre and Preston Stuart Andrew Jane Stevenson (Wolverhampton North Stuart Andrew North) East) (Con) Dr Jamie Wallis (Bridgend) (Con) Stuart Andrew John Stevenson (Carlisle) (Con) Stuart Andrew David Warburton (Somerset and Stuart Andrew Bob Stewart (Beckenham) (Con) Stuart Andrew Frome) (Con) Iain Stewart (Milton Keynes South) Stuart Andrew Matt Warman (Boston and Skegness) Stuart Andrew (Con) (Con) Jamie Stone (Caithness, Sutherland and Mr Alistair Giles Watling (Clacton) (Con) Stuart Andrew Easter Ross) (LD) Carmichael Suzanne Webb (Stourbridge) (Con) Stuart Andrew Sir Gary Streeter (South West Devon) Stuart Andrew (Con) Claudia Webbe (Leicester East) (Ind) Bell Ribeiro-Addy Wes Streeting (Ilford North) (Lab) Chris Elmore Catherine West (Hornsey and Wood Chris Elmore Green) (Lab) Mel Stride (Central Devon) (Con) Stuart Andrew Matt Western (Warwick and Chris Elmore Graham Stringer (Blackley and Chris Elmore Leamington) (Lab) Broughton) (Lab) Helen Whately (Faversham and Mid Stuart Andrew Graham Stuart (Beverley and Stuart Andrew Kent) (Con) Holderness) (Con) Mrs Heather Wheeler (South Stuart Andrew Julian Sturdy (York Outer) (Con) Stuart Andrew Derbyshire) (Con) Zarah Sultana (Coventry South) (Lab) Bell Ribeiro-Addy Dr Alan Whitehead (Southampton, Chris Elmore Rishi Sunak (Richmond (Yorks)) (Con) Stuart Andrew Test) (Lab) James Sunderland (Bracknell) (Con) Stuart Andrew Dr Philippa Whitford (Central Owen Thompson Sir Desmond Swayne (New Forest Mr William Wragg Ayrshire) (SNP) West) (Con) Mick Whitley (Birkenhead) (Lab) Chris Elmore Sir Robert Syms (Poole) (Con) Stuart Andrew Craig Whittaker (Calder Valley) (Con) Stuart Andrew Sam Tarry (Ilford South) (Lab) Chris Elmore John Whittingdale (Malden) (Con) Stuart Andrew 829 Members Eligible for a Proxy Vote19 APRIL 2021 Members Eligible for a Proxy Vote 830

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Nadia Whittome (Nottingham East) Chris Elmore Beth Winter (Cynon Valley) (Lab) Bell Ribeiro-Addy (Lab) Pete Wishart (Perth and North Owen Thompson Bill Wiggin (North Herefordshire) Stuart Andrew Perthshire) (SNP) (Con) Mike Wood (Dudley South) (Con) Stuart Andrew James Wild (North West Norfolk) Stuart Andrew (Con) Jeremy Wright (Kenilworth and Stuart Andrew Southam) (Con) Craig Williams (Montgomeryshire) Stuart Andrew (Con) Mohammad Yasin (Bedford) (Lab) Chris Elmore Hywel Williams (Arfon) (PC) Ben Lake Jacob Young (Redcar) (Con) Stuart Andrew Gavin Williamson (Montgomeryshire) Stuart Andrew Nadhim Zahawi (Stratford-on-Avon) Stuart Andrew (Con) (Con) Munira Wilson (Twickenham) (LD) Mr Alistair Daniel Zeichner (Cambridge) (Lab) Chris Elmore Carmichael 125WH 19 APRIL 2021 Trespass 126WH

thanks go to the petition’s originator, Guy Shrubsole; Westminster Hall Gemma Cantelo, representing the views of the Ramblers; Abbey Kirkby, for sharing her thoughts from the Traveller Monday 19 April 2021 community; as well as George Dunn, from the Tenant Farmers Association; Sam Durham, from the National Farmers Union; and Andrew Gillett, from the Country [MR PETER BONE in the Chair] Land and Business Association. With those thanks over, let me take a step into the Trespass detail of this debate. My right hon. Friend the Minister [Relevant documents: Written evidence to the Petitions has stated that the Government Committee, on public engagement on e-petitions, reported “made a clear manifesto commitment to act on the issue of to the House on 26 January, HC 546.] unauthorised encampments and…remain determined to ensure police have the powers they need.” Virtual participation in proceedings commenced (Order, 25 February). As a result, the Police, Crime, Sentencing and Courts Bill introduces intentional trespass as a criminal offence. [NB: [V] denotes a Member participating virtually.] The “Don’t criminalise trespass” petition was set up by Guy as he has a series of concerns about unintended 4.30 pm consequences for countryside lovers and those who seek Mr Peter Bone (in the Chair): I remind hon. Members to reside in it. In his view, criminalising intentional that there have been some changes to normal practice in trespass could lead to, although not exclusively: prosecuting order to support the new hybrid arrangements. Timings ramblers who stray from the path by accident—I am of debates have been amended to allow technical sure that is something that the Minister, the Chair and arrangements to be made for the next debate. There will all of us in this room have done, although I confess that also be suspensions between each debate. I remind I am normally in possession of a mountain bike and a Members participating physically and virtually that they rucksack when issuing unfettered apologies for being in must arrive for the start of the debate in Westminster the wrong part of the countryside—preventing participation Hall. Members are expected to remain for the entire in wild camping, even for personal safety or enjoyment; debate. limiting the right to peaceful protest; and forging new paths in the countryside. Guy is also keen to highlight I must also remind Members, particularly those the wider implications of criminalising intentional trespass participating virtually, that they are visible at all times, on the lives of Traveller communities across the country. both to each other and to us in the Boothroyd Room. If Members attending virtually have any technical problems, Through an online survey, the Petitions Committee they should email the Westminster Hall Clerks’ email sought the opinions of affected groups and forums. A address. Members attending physically should clean remarkable 84% of respondents felt that criminalisation their spaces before they use them and before they leave of intentional trespass would have major or moderate the room. I would also like to remind Members that effects on how they live their lives. Further conversations Mr Speaker has stated that masks must be worn in with representatives of the Ramblers regarding access Westminster Hall. Members attending physically who and right of way suggest that they share similar concerns are in the latter stages of the call list should use the seats about the criminalisation of those who have become in the Public Gallery and move on to the horseshoe lost or strayed from the footpath. They argue that the when seats become available. Members can speak only likelihood of becoming lost with unkempt footpaths from the horseshoe, where the microphones are. and limited signage—and, in my case, a lack of capability —inhibits visitors from venturing out and exploring 4.31 pm our beautiful countryside. Discouraging rambling should not be a consequence of the legislation, and nor should Katherine Fletcher (South Ribble) (Con): I beg to be it threatened. move, Respondents to the Petitions Committee survey also That this House has considered e-petition 300139, relating to suggested that urban dwellers—I was most definitely trespass. one in my youth—include higher levels of minorities It is an honour to serve under your chairmanship, and the economically disadvantaged, who already have Mr Bone. I have demonstrated that not all talents are less access to outdoor spaces in England. They could be distributed equally, as I have managed to pour water all disproportionately affected through either the reality or over my speaking notes. If there is any disintegration of the perception that they will be criminalised for accessing these words, I beg your forgiveness. the countryside, and the petitioners feel extremely strongly This debate is about how we access the countryside, that this should not be the case. how much we value it and what laws should govern that There were concerns that the proposed changes in the access.The petition proposes changes to legislation currently law would add further barriers to outdoor access. I am going through Parliament. In short, it asks that we do proud that we are a country with 140,000 miles of public not criminalise trespass. Before its closure in September rights of way, mainly founded through public footpaths last year, the petition had been signed by 134,932 people, and bridleways. Such routes to access to the countryside, 185 of whom are from my own fabulous patch of South nature and wildlife are here to stay, and they are extremely Ribble. important as an outlet for our educational, mental and In seeking to represent fairly the different sides of physical needs. Like the petitioners, I use them regularly this complex debate, I met a number of individuals and on my bike and on foot, and I would be deeply concerned organisations to hear their views. I am particularly if new legislation were to deter others from enjoying the grateful for their time and expert insight. My sincere beauty of England—north or south. 127WH Trespass 19 APRIL 2021 Trespass 128WH

[Katherine Fletcher] Owing to the delay caused by covid, since the petition’s inception and our meetings, the Police, Crime, Sentencing Many robust concerns were raised about the unintended and Courts Bill—the subject of the petition—received consequences of the legislation. Crucially, such opinions its Second Reading in the House of Commons on were mirrored in the conversations that I have had with 16 March. The Bill contains provisions on unauthorised rambler groups, farmers and landowners. During those encampments, including the creation of an offence discussions, it became clear that at the heart of the “relating to residing on land without consent in or with a vehicle”. debate is a key phrase: “to intentionally reside”. It many My understanding is that that phrasing is intended in cases, a lost walker has no intent to reside unlawfully on part to address the concerns raised by the petitioners. a farmer’s field. When discussing this further, Guy’s The new offence has been phrased in such a way as to experience of wild camping in Dartmoor is a potential ensure that the right of ramblers and others to enjoy the model. Stays there are restricted to a maximum of two countryside is not affected. Despite that, under the nights, which prevents a camper from establishing intent definition provided, a bicycle could constitute a vehicle, to reside, and arguably they are at no risk of committing which could put me and my haphazard mountain biking trespass by that account. at risk. The inclusion of bicycles in the definition has The legislation that sparked the petition is aimed at been highlighted as a concern of many of those who tackling illegal encampments, where visitors occupy have signed the petition. I look forward to hearing the land and do not leave when asked. In representing the Minister’s response to those points. petitioners, I felt it appropriate to speak to those whom the legislation seeks to support. Within my constituency The petitioners are worried about the introduction of of South Ribble, there have been a series of trespass a barrier to their access to the wonderful British countryside, issues for landowners. As trespass is currently a civil and about the idea that it would put others off accessing offence, returning access to landowners’ property can our bridleways and footpaths for recreation and enjoyment, be a lengthy process with temporary results. According good mental health, and engagement with nature—all to my local landowners who have reported back to me, those amazing things. Although farmers and landowners the current reprimands for trespass do not equal the are experiencing difficulty with unlawful encampments, financial and environmental cost. Despite the focus on with which they believe the current statute cannot assist, unauthorised encampments, petitioners are concerned they are mindful of the unintended consequences of that under the proposed changes to the law, there is a legislation. real possibility that the legislation will be manipulated The Traveller community have concerns about their to criminalise participants in wild camping, mountain way of life, and about being judged by the actions of a biking and rambling who get lost. I look forward to minority, which is a concern shared by the petitioners. I hearing from the Minister what he can do to assuage the repeat my grateful thanks to all those who signed the extremely valid concerns. petition, and to those who took the time to meet me in Representatives of the National Farmers Union, the the run-up to the debate. I look forward to hearing Country Land and Business Association and the Tenant colleagues’responses on this difficult and nuanced subject. Farmers Association were keen to highlight that farmers The petition says, “Don’t criminalise trespass”, but is and landowners are delighted to share the countryside that the same as residing on land without consent in or with others, as long as visitors are respectful. That with a vehicle? means steering clear of livestock and crop production, and adhering to the countryside code. However, they were keen to speak to the points in the petition. In their 4.42 pm view, instances of trespass with residency have become Andy Slaughter (Hammersmith) (Lab): It is a pleasure a larger problem, with the use of intimidation, violence to be before you in Westminster Hall, Mr Bone. I thank and environmental destruction being reported to them. the Petitions Committee for facilitating the debate, which They felt that current legislation is not a useful tool to has come slightly later than we envisaged—it was due to take prevent such issues. In order to best prevent and discourage place in January. If anything, it is now more relevant, as intentional and destructive trespass, it seems logical to the hon. Member for South Ribble (Katherine Fletcher) them to make it a criminal offence. said. I discussed these points with Abbie from Friends, Families and Travellers during a really brilliant conversation. We have had Second Reading of the Police, Crime, She expressed the importance of not associating certain Sentencing and Courts Bill, and we heard the arguments behaviours with all members of the Traveller community. put forward then. I must compliment the hon. Lady on Given the authorised Traveller sites in South Ribble, I putting forward a balanced argument, but in her effort must wholeheartedly agree with her. She recognised a to do that, what shone through was how strong the persistent problem with unlawful encampments, but she arguments are on the side against this wholly unnecessary has huge concerns that further legislation compounds provision, which is being included in the Bill for reasons the inequalities experienced by the Traveller community. on which I will speculate in a moment. The Bill strengthens police powers, including the ability There is no reason for the provision. If the petition to seize a vehicle, for example. For those in the Traveller had not been closed, as they are after six months, I am community, that could mean the seizure of their home sure that we would by now have had many more than and possessions. The number of lawful sites in which the 135,000 signatures. Lots of groups are threatened by the Traveller community can reside is limited, so Abbie the criminalisation of trespass: ramblers, who have been and the petitioners argue strongly that improved site mentioned; off-road cyclists; canoeists; wild campers; provision, not further legislation, is key to preventing those who are forced to live in a vehicle because of issues. On behalf of the Traveller community, she says homelessness or other circumstances; and those who quite clearly: “Don’t criminalise trespass.” care about and want access to the countryside. 129WH Trespass 19 APRIL 2021 Trespass 130WH

In their response to the consultation on the Bill, the Over the past two decades, law enforcement and nomadic Government have implied that many of those groups communities have tried to make the current law work by are not the target. Two questions spring from that. guidance, negotiation and compromise. The police Bill First, the Government have not persuaded anyone. As strips away all of that experience and sets up confrontation, the Ramblers said in the briefing for this debate, the arbitrary use of power, and the threat of arrest, legislation is vaguely drafted and many of the proposals imprisonment, loss of home and perhaps of families. are unclear in both scope and reach, which risks For what purpose? So that the Home Secretary can criminalising activities such as wild camping when accessed indulge in a bit of dog-whistle politics. by a motor vehicle or bicycle, as well as the legitimate If people think I am exaggerating, I chaired a seminar right to protest. The Bill would allow the police to take earlier today, organised by the all-party parliamentary action on an officer’s suspicion that someone might group on Gypsies, Travellers and Roma, to hear the intend to reside. It would give the minority of landowners real-life experiences of Gypsies and Travellers, and to who might wish to make the countryside a hostile place hear from their advocates in the Friends, Families and for those seeking to enjoy it for recreation a powerful Travellers movement who were loyally supporting those new tool to deter users. The potential for abuse of the communities. They all do an excellent job. We heard legislation is obvious and significant. The Bill would stories of Traveller families who had booked official send a signal that the countryside is not an open resource caravan sites, only to be turned away on arrival. The that is accessible to all, but a place of complex rules and racism of Pontins in refusing access on the grounds of regulations, with criminal sanctions for breaching them. ethnicity is far from rare. If the Government did succeed in so limiting the Bill Without access to legal sites, where are families supposed by a further amendment in Committee or at a later to go? Under the current law, there was at least a chance stage, the issue of who is primarily the target would of negotiating an organised departure, and the discretion become clearer: Gypsy and Traveller communities, and lies with the police whose guidance says that only where those who adopt a nomadic lifestyle through choice or there is “damage”, “abusive behaviour” or multiple necessity. I say this regretfully: I can only reach the vehicles should precipitous action be taken. Under the conclusion that it is a rather nasty racist little attempt to new law, we apparently need to address the sense of attack minority ethnic communities already suffering “unease” that local residents might feel, an “intention severe discrimination, and other socially marginalised to reside”or the likelihood of causing “damage, disruption groups. I will repeat something I said when speaking or distress”. about the Bill on Second Reading, that Has there ever been a law so disingenuously or vaguely “no family willingly stops somewhere they are not welcome, and worded? It is clear why, because in their frequently which has no running water,waste disposal or electricity”—[Official answered questions, the Government give the explanation Report, 15 March 2021; Vol. 691, c. 88.]— that “strengthened police powers” and the new offences and where they will be harassed. “could also deter unauthorised encampments from being set The reason for unauthorised encampments is the lack up in the first instance.” of authorised sites, be they permanent or transit sites. This is designed to frighten people into taking no action The number of permanent or transit sites on aggregate at all. It is designed to attack the principles of nomadic has gone down over the past ten years by several hundred, life, which the Government have already attacked by and by over 8% in total. Gypsies and Travellers are changing the definition of what Gypsies and Travellers among the most marginalised and discriminated against means. groups in the country.Their outcomes in health, education If the legislation is passed unamended, it will have a and life expectancy are the worst of any ethnic minority rough ride in the courts. It is already clear that it group, and proper provision is simply not made. There violates important principles of the Human Rights Act are 354 transit pitches across the whole of England, and and the Equality Act 2010. No one with any sense only 29 local authorities provide them. If there is nowhere supports this unnecessary and vindictive provision— to go that is of an authorised nature, then what alternative certainly not the police. Only 21% of police organisations is there but to use unauthorised sites? There are 1,696 responded positively to the proposals and the consultation, households on the waiting list for pitches, with only while 94% called for more site provision. 59 vacant pitches on permanent sites and 42 on transit sites. I know that other Members are waiting to speak and that I have taken my allotted time. I simply say to the In responding to the petition, the Government said: Minister that this is the time to consider what changes “The law of trespass is largely one of common law, with the will be made to the detail of the Bill. Part 4 adds courts developing the law and resolving disputes based on the nothing useful to the current law. It will do huge damage circumstances of the case. However, following the ‘Powers for Dealing with Unauthorised Development and Encampments’ to relations between settled communities and Gypsies consultation in 2018, it was clear”— and Travellers. It will put the police in an extremely difficult position. It will suck in whole groups of other clearly it was not clear, because most people opposed people who, whether this is the intention or not, are also the provision responding to that consultation— severely worried about the consequences. Let us have a “that action is needed to address the sense of unease and intimidation sensible and mature rethink and let us drop these invidious residents feel when an unauthorised encampment occurs.” proposals now. That is an insidious piece of text. First, it is good that the control of trespass is brought up by the common 4.51 pm law over the centuries. Secondly, there is plenty of legislation on the matter, notably the Criminal Justice David Simmonds (Ruislip, Northwood and Pinner) and Public Order Act 1994. That legislation was seen as (Con) [V]: It is a pleasure to serve under your chairmanship, draconian at the time, and this goes much further. Mr Bone. As we consider the important matter of 131WH Trespass 19 APRIL 2021 Trespass 132WH

[David Simmonds] the temporary residents of local caravan sites, which are made available for public use, would agree, because they illegal encampments and unauthorised access to land, pay council tax to clear up that kind of mess, too. may I commend my hon. Friend the Member for South Breaking into other people’s property, causing misery Ribble (Katherine Fletcher) for her eloquent and balanced and stress at a massive cost is simply unacceptable. It is introduction to the debate? It is important that I be not a lifestyle; it is straightforward criminality, and it clear from the outset that I and my constituents strongly must be robustly dealt with when it occurs. support the introduction of tougher measures to protect Clearly, there is a balance to be struck. At the moment, land and property from trespass, whether it belongs to the balance weighs too heavily against the landowner private individuals or the taxpayer in the form of central and the taxpayer, and in favour of the small minority of Government or local authorities. criminals who choose to exploit the fact. It is absolutely I pay tribute to the work of Councillor John Warmisham, right that the Government take heed of the concerns of the Labour leader of the UK delegation at the Congress communities across London and the rest of the country, of Local and Regional Authorities in the Council of and enact the measures. Europe,who has led work for many years at an international level to improve the way in which human rights law, as 4.57 pm administered by local authorities and regional governments, Margaret Greenwood (Wirral West) (Lab) [V]: It is a treats Gypsy, Roma and Traveller people. His work has pleasure to serve under your chairmanship this afternoon, been very important in informing my thinking on the Mr Bone. I am pleased to have the opportunity to speak subject and my approach to the petition today. in this important debate. There seems to be no evidence that the proposed I would like to begin by paying tribute to the more strengthened measures would deter anyone from lawful than 134,000 people, including 149 of my constituents, access to private land. Ramblers, walkers and riders do who signed the petition “Don’t criminalise trespass”. not see their legitimate and time-honoured access restricted The petition set out that the Government’s manifesto by what the Government propose. It is very clear, as my stated that the Conservative party hon. Friend the Member for South Ribble said, that “will make intentional trespass a criminal offence”. powers to prosecute are triggered only in circumstances It pointed out that it is where someone is present where they have no right to “an extreme, illiberal & unnecessary attack on ancient freedoms be, and when they refuse to leave when asked. that would threaten walkers, campers, and the wider public.” In my constituency, on the edge of London, we have It expressed concern that that would, among other many popular walking and rambling paths, mountain things, bike routes and bridleways. The users of these amenities, “Criminalise ramblers who stray even slightly from the path many of which are maintained by private landowners as …Criminalise wild camping, denying hikers a night under the part of the good husbandry of their holdings, should stars”. have no fear that they will be negatively impacted. It is The petition shows great strength of feeling on this also clear that the law in Scotland might offer a model issue, which is part of our great tradition in this country to consider, and I know that the Government have been of securing access to the countryside through protest. consulting on that. Trespass is a criminal offence, but We have an incredibly important tradition of accessing legitimate use of the property is included. Other Members the great outdoors, and are richly blessed with the may disagree with that, but that is the legal interpretation diversity of landscapes that we can enjoy. That tradition that I saw in the briefing note. I look forward to being is in activities such as walking, cycling, kayaking and enlightened. mountaineering; it is in the activities of brownies, girl Many communities have suffered significant blight guides, cubs and scouts, and it is in our culture through from unauthorised encampments for too long. I live the poetry of Wordsworth and the paintings of Turner, opposite a green space owned and maintained by the to name just two of the many artists and writers who London Borough of Hillingdon, and it was the subject have found inspiration in the power and grandeur of of one such incursion. Like many people across the the natural world. country, other residents and I were treated to the sight We have wonderful national parks, such as Snowdonia, of people defecating publicly opposite our homes, with the Lake District and the Peak District. The last one rubbish strewn around and extensive vandalism. Normal became the first national park in the UK almost exactly activities such as children’s football, outdoor exercise 70 years ago, on 17 April 1951. Our national parks give and dog walking all had to stop while the legal process us access to breath-taking coastal scenery, such as that was followed. in Pembrokeshire, the south downs and the North York Once that notice was served, I watched alongside Moors.In my constituency,there is Caldy Hill, Thurstaston those other residents as campers gathered all the glass Common, Irby Hill and Harrock Wood, all owned and that they had accumulated during their stay, smashing it cared for by the National Trust, which does such an to fragments and scattering it across the whole area, to important job preserving such areas for the benefit of maximise the harm and inconvenience that their illegal local people and visitors. incursion caused the community. When they finally When we reflect on all that we have to enjoy, it is departed, they left a massive clean-up job and, for that important to consider the invaluable work of individual season, a bill in excess of £300,000 for council tax conservationists, campaigners and protest groups that payers to meet. I speak from personal experience when I have delivered such riches to us, and have ensured that say that the measures are long overdue. we can access those beautiful places. I am thinking of Some will argue that legitimate lifestyles are at risk of people such as Beatrix Potter, who bought large tracts being criminalised. I wholly disagree. Not one moment of land in Cumbria specifically to preserve the landscape, of what I witnessed was legitimate. Both the settled and and who left 4,000 acres of countryside to the National 133WH Trespass 19 APRIL 2021 Trespass 134WH

Trust, as well as 14 farms, when she died in 1943. merely for existing nomadically. It has pointed to an Millions of people enjoy that countryside, in what we absence of places where Gypsies and Travellers are know as the Lake District national park. permitted to stop or reside. One of my constituents Hundreds of ramblers from Manchester and elsewhere wrote to me to say that she is took part in the mass trespass on Kinder Scout in 1932. “from one of the many Gypsy, Traveller and nomadic communities Knowing our history is important: the mass trespass is who will be directly and harmfully affected by the criminalisation widely credited with leading the Labour Attlee Government of trespass put forward in the Bill.” to pass legislation in 1949 to establish the national She said that parks, playing a part of the development the Pennine “We need more sites and stopping places where Gypsies and Way and many other long-distance footpaths, and securing Travellers are allowed to be. Nobody should be made a criminal walkers’ rights over open country and common land in or punished for living a nomadic way of life.” the Countryside and Rights of Way Act 2000. In 2007, What is the Minister’s response to my constituent? Lord Hattersley described it as What would he say to her about how this Government “the most successful direct action in British history.” are treating Gypsy, Traveller and other nomadic In January this year, a number of organisations— communities? including the Campaign to Protect Rural England, Friends The petition also raises concerns about the Government’s of the Earth and the Ramblers Association—wrote to proposals to the Home Secretary, arguing that making trespass a “clamp down on peaceful protest, a fundamental right and essential criminal offence is part of our democracy”. “an extreme, illiberal and unnecessary attack on ancient freedoms.” Numerous organisations have drawn attention to how They warned that the Bill threatens the right to peaceful protest. Three “It would send a signal that the countryside is not an open years ago this month, many of us gathered to see the resource accessible to all, but a place of complex rules and unveiling of the first statue of a woman in Parliament regulations, where stepping off a public path could lead to a Square, which was of the suffragist Millicent Fawcett. criminal sentence.” She holds a banner that reads, “Courage calls to courage Recently,the Government published their Police, Crime, everywhere”. That unveiling was an historic moment Sentencing and Courts Bill, and Labour opposed it on for us democratically. Second Reading. The proposals in part 4 of the Bill, on Protests and demonstrations have forged positive change unauthorised encampments, create a new offence of in our country over generations, whether they were the “residing on land without consent in or with a vehicle”. actions of the suffragettes tackling the grotesque injustice However, more than 250 civil society groups are still of women not even having the right to vote, or, more concerned that the Bill threatens our right of access to recently, the actions of anti-fracking protesters who set the countryside, as they made clear in their letter to the up camp at places such as Preston New Road in Lancashire. Home Secretary and the Secretary of State for Justice The actions of those campaigners helped to achieve a last month. Liberty has pointed out that the provisions moratorium on fracking, and now the Government say of the Bill will that fracking is over in the UK. “impact access to the countryside and affect the enjoyment of The numerous demonstrations for employment rights British land for recreational activities.” that have been spearheaded by the trade union movement Can the Minister tell us how the Bill is consistent with have been crucial in furthering the rights of working the Government’s commitment to people, and the protests of people up and down the country against the Conservative Government’s plans “opening up the natural world”, to privatise the national health service continue, showing as they stated in their 25-year environmental plan? The the passion with which people believe in a national countryside should always be accessible to everyone health service that is paid for through direct taxation and it is incredibly important that we follow in the and free to all at the point of need. tradition of those who have gone before us to secure Without people being able to gather and show their rights of access. opposition to issues of social injustice and attacks on The petition that is the subject of today’s debate also the environment, the Government would feel as though raisesimportantconcernsthatlegislationmakingintentional they could do whatever they pleased. No Government trespass a criminal offence could impact on Gypsy, should ever be given that opportunity. It is as important Roma and Traveller communities, and I have to say that now as it has ever been to make it clear that we demand I was very shocked by the comments of the previous the right to protest. Any attempt to curtail that right speaker. The Bill includes a new criminal offence of strikes at the heart of our democracy. trespass with the intent to reside; until now, trespass has been a civil offence. The National Police Chiefs Council 5.4 pm and the Association of Police and Crime Commissioners have stated quite clearly that Catherine West (Hornsey and Wood Green) (Lab): “trespass is a civil offence and our view is that it should remain It is a pleasure to serve under your chairmanship, so” Mr Bone, and to contribute to this important debate. It is also a pleasure to highlight the 600 signatures from and that Hornsey and Wood Green on the petition—clearly my “no new criminal trespass offence is required”. constituents are concerned about their ability to go Why have the Government ignored that viewpoint? about in and enjoy the great outdoors. The charity Friends, Families and Travellers has warned We are blessed with parks and walks in Hornsey and that making trespass a criminal offence would push Wood Green, but none as lovely as being outside London Gypsies and Travellers into the criminal justice system and enjoying a quiet walk. During the pandemic the 135WH Trespass 19 APRIL 2021 Trespass 136WH

[Catherine West] of policing. In particular, some schools say that they miss the friendly bobby on the beat who drops in. A lot desire to be outdoors has been heightened because of of that policing in schools has disappeared from the the impact of the loneliness of coronavirus on mental budget, and that is a real pity. That is the sort of issue health. It has been lovely for our friends and families to that we want to get down to—not high-level mudslinging walk in and explore the countryside. I hope that the at minority communities. Government will have a rethink on the matter, and I I urge the Government to pull back from what is a note a number of campaigns and newspaper articles dangerous, illiberal and unnecessary step. If they really calling for that. The Ramblers Association, which is a want to protect landowners, Ministers should heed the well established group, is one of those calling for a calls from the police and campaigners to provide access rethink so that we can fully enjoy the outdoors—particularly to well-maintained walking paths and sites for Travellers, in the summer months as we go towards another year, rather than continuing down this thinly veiled attack on possibly, of holidays at home—without the fear of rights and livelihoods, which will deny so many the being told we are trespassing. chance to explore our beautiful countryside. The proposals risk putting a stop to some of the walks that we enjoy so much, with landowners closing off swathes of remote countryside. Furthermore, some 5.10 pm local authorities do not look after paths and maintain Barbara Keeley (Worsley and Eccles South) (Lab) [V]: tracks; the measures will be a disincentive to them when I am glad to speak in this debate with you in the Chair, it comes to doing that and showing signage. The enjoyment Mr Bone. This debate is important and timely as we of a walk can be slightly spoiled by getting lost, which await the Committee stage of the Police, Crime, Sentencing can lead to trespass, and that can happen if local and Courts Bill. The proposals around the criminalisation authorities do not look after paths well. I hope that the of trespass are deeply concerning, and I want to focus Minister, who, of course, has a background in local today on an area of them. There is real concern that government, will take note and perhaps send round a these proposals will have the effect of deterring people little note to local government leaders asking for paths from accessing the countryside for recreation. to be looked after, so that there is not a risk of trespass We have seen during the pandemic that access to and so that people can walk with proper signage, and green space and the countryside is central to promoting enjoy their ramble. people’s physical and mental wellbeing, but access to I emphasise that there are some naturalists who desire green space has too often been the preserve of a small to carry out wildlife surveys. Some scientists have warned number of more privileged groups. Over the past year, that the measure we are debating could prevent some of we have begun to see a broadening of access as more the basic science through which we get our love of people seek out green spaces and visit the countryside. science and nature. It cannot be stressed enough how It is vital that this is promoted, rather than suppressed. vital it is for people to have access to nature and the I am concerned that the provisions in the Bill could open countryside. deter people who seek to access green spaces for entirely Sales of camping equipment have soared, which is legitimate reasons. great for the economy. British Canoeing has had a Key to the issue is the provision that allows people to 40% jump in membership and our national parks have be stopped by the police if they are suspected of intending had huge numbers of visitors. I am not sure whether the to reside on land without consent. This power is so broadly Government have yet got round to implementing Labour’s defined that it could cover people on wild cycling trips suggestion, from the last manifesto, of bringing in some who intend to camp on open land such as moors or more national parks; but certainly the experience of hillsides. It would give the small number of landowners camping and visiting a national park should not be determined to discourage public access to the countryside underestimated. a powerful tool to make it a hostile place. I want to highlight concerns about some of the The potential for abuse of this legislation is obvious. debate on Second Reading. It was disheartening when The impact of this measure on trespass would be to Member after Member stood up to criticise, in demeaning create an image of the countryside as a place governed terms, the Gypsy and Traveller community going about by complex rules and regulations, with criminal sanctions their travelling, and some of the challenges that that for breaching them. This will particularly deter people community faces. Statistics show us that the Gypsy and who already have more negative experiences of the Traveller community is probably the one most discriminated criminal justice system, especially people from diverse against in Europe. It was dispiriting to hear, in this communities who already face more structural barriers wonderful Parliament, Member after Member having a to accessing the countryside. The end effect of these go at that community on Second Reading. That is not proposals is likely to be fewer people accessing the what the House of Commons should be about. countryside. The police have made it clear that they believe that The Government have claimed that they want to do the powers they have are sufficient—75% of police more to promote access to nature for everyone, but their responses to the proposals show that they believe that. actions say otherwise. From a delayed Environment Bill Additionally, 84% did not support the criminalisation that makes no firm commitments on access to nature, to of unauthorised encampments, and 65% said that lack this retrograde proposal that could actively deter people of site provision was the real problem. In my view, from getting out into the countryside, we are seeing a some of the problem with policing is the closure of 50% Government that are putting up barriers, rather than of police stations since 2010 and the drop in the number breaking them down. If the Government choose to of police. Hundreds of police have been taken off the criminalise trespass, they would also be completely out street since 2010 and that is the real problem with much of touch with the public mood. More people are visiting 137WH Trespass 19 APRIL 2021 Trespass 138WH the countryside and green spaces due to covid-19. Visits to but we have a racism problem whereby one section of our parks and green spaces have doubled in the past 10 years, society is blamed and targeted relentlessly, and others are and more people are taking part in outdoor activities. excused or ignored. The double standard of that targeting Despite this, the number of people who spend little should be scrutinised, not fuelled, by this House. or no time in natural spaces is still too high. Evidence We should be honest about what this is: a political shows that access to good-quality green space such as attack on Gypsy, Roma and Traveller communities. It is parks, woodlands, fields and allotments varies greatly kicking a community that has very few self-defence depending on where people live. The most economically mechanisms at its disposal. The key thing is that there deprived areas often have less available public green are other solutions. Abbie Kirkby of Friends, Families space, meaning that people in those communities have and Travellers has said: fewer opportunities to reap the benefits to their health “The Government should not imprison people, fine them and and wellbeing. I join the Ramblers and other groups in remove their homes for the ‘crime’ of having nowhere to go. urging the Government to reconsider and to drop these Another way is possible. Through negotiated stopping and by damaging proposals, so that people are free to enjoy the identifying land where Traveller sites can be built, councils can countryside without the threat of criminalisation hanging ensure nomadic families have a safe place to stop, save money on over them. evictions and improve relations between travelling and settled communities.” 5.13 pm Giving all people dignity and respect is a fundamental duty for anyone who calls themselves an anti-racist or Mary Kelly Foy (City of Durham) (Lab) [V]: It is a who understands the concept of human rights. It is easy pleasure to serve under your chairmanship this afternoon, to scapegoat a community—sometimes it is done Mr Bone. It is with great sadness that I speak to the unconsciously, but it is just as damaging—and all because House on this subject again—it seems that when it we do not take the time to listen, understand and find comes to Gypsy, Roma and Traveller communities, the solutions. Tony Benn once said: Government never learn. The Police, Crime, Sentencing “The way a Government treats refugees is very instructive and Courts Bill contains many authoritarian measures, because it shows you how they would treat the rest of us if they but none so pernicious as those aimed at GRTcommunities. thought they could get away with it.” I was saddened to come across the most awful racism The same could be said for the way in which our on Twitter this week in relation to the Channel 5 programme Government treat the Traveller community. That is our “Here Come the Gypsies!” It was sickening to read the challenge: if we want to live in a decent, respectful and way in which people were displaying their prejudices, fair society, we should think about what that means in many without any challenge, but of course there is a practice and look for the answers that are already out political context to this hatred. As we know, the Police, there in the provision of adequate sites, services and Crime, Sentencing and Courts Bill includes measures to facilities. “Strengthen police powers to tackle unauthorised encampments, where trespassers cause distress and misery to local communities and businesses.” 5.18 pm Of course, as Members have mentioned, the criminalisation Olivia Blake (Sheffield, Hallam) (Lab) [V]: It is a of trespass is a direct attack on the nomadic lifestyle of pleasure to serve under your chairmanship, Mr Bone. I many Gypsies and Travellers. Police forces across the speak not only as someone who supports the right to country have specifically asked not to be given these roam freely, but as a Sheffield MP standing in a long powers on trespass, as they realise that such powers and proud tradition of Sheffielders who fought for the attack the lifestyles of groups who are often voiceless right to roam. Many constituents have contacted me and who do not have a choice over where to stop. about this issue, with 713 signing the petition and many When the measures to criminalise trespass were consulted others emailing me about today’s debate. on by the Government, over 90% of police bodies said Our debate on the petition is well timed, although that the provision of additional legal sites for encampments, delayed. It takes place between two dates that are important rather than additional criminal powers, should be the to my city and my constituency,and which have significance approach taken by the Government, so why are seeing for the whole country. The first date fell on Saturday this unthinking and vicious anti-Traveller legislation 17 April, which marked the 70th anniversary of the once again? It starts from a lack of education: politicians Peak District national park, which was the first such and legislators do not understand and, worse still, do park in the UK. The foundations of the park were built not try to understand the problems faced by Gypsy, by my constituent Ethel Haythornthwaite, who was Roma and Traveller communities trying to balance born in 1894. After falling in love with the beauty of the their nomadic traditions with the need for services and countryside surrounding our city,she founded the Sheffield the constant hostility wherever they settle. At the heart Association for the Protection of Local Countryside, of this is a form of racism. which would later become the Peak district and South I know it has been said before, but there is a reason Yorkshire branch of the Campaign to Protect Rural why anti-Gypsy, Roma and Traveller prejudice is called England. Throughout her life, she directed a host of the last acceptable face of racism. It is because politicians campaigns to defend the use by everyone of the green do not stop and think before they paint whole communities spaces in and around Sheffield. as the problem, as perfectly demonstrated by the The second important date is this Saturday, 24 April, hon. Member for Ruislip, Northwood and Pinner which will be the 89th anniversary of the Kinder Scout (David Simmonds) a few moments ago. Communities mass trespass mentioned by my hon. Friend the Member all over the country have issues with rubbish, antisocial for Wirral West (Margaret Greenwood), one of many behaviour and small-time criminality. Nobody should regular trespasses into moorland estates organised by excuse such behaviour or pretend that it does not exist, workers from northern industrial towns and cities, such 139WH Trespass 19 APRIL 2021 Trespass 140WH

[Olivia Blake] over the last couple of months leading up to the police Bill and debates on it in Parliament. It has been quite as the Sheffield Clarion Ramblers. Before the founding horrific to hear some of the dreadful instances of racism of the national parks, these workers were forced to and bigotry that our Gypsy, Traveller and Roma trespass because moorland estates were privately owned communities face. by the landed gentry. Their demand was simple: that That is not to say that things are in any way perfect in everyone should be able to access the moors. In 1945, Scotland, in terms of reflection, but there has been an their efforts were recognised when a Government were opportunity to learn and to move forward. That is for elected who shared the views not only of Ethel but of all parties, I have to say, and not only in the Scottish the Kinder trespassers as well. Ethel was actually appointed Parliament; before the break-up of the last Session of to the National Parks Committee and helped the new the Holyrood Parliament, my colleagues in local Government to deliver the National Parks and Access government, through the Convention of Scottish Local to the Countryside Act 1949. Authorities, co-signed Scotland’s national plan for the Ministers now propose to turn back the clock and Gypsy and Traveller community. That was signed by my make trespass a criminal offence. They attack not only colleagues, the Minister the Minister for Older People the right to roam but the right of the Gypsy, Roma and and Equalities, Christina McKelvie, and Councillor Traveller community to live as they wish. If the Government Kelly Parry of COSLA. The aim has been to secure were serious about addressing unauthorised encampments, political support across all parties so that they work they would increase funding for more legal sites and together to improve the lives of Scotland’s Gypsies and more places to legally stop, not pass new laws that Travellers; and to formally recognise the right to travel. attack an already persecuted community and force more There has been a commitment to finding ways to map people into our criminal justice system. We should look and, where possible, reopen traditional and, as I often to extend our right to green spaces, not deter people say, ancient stopping places across the nation of Scotland, from accessing our precious countryside, nor should we used since at least the 12th century. The Scottish criminalise those whose culture is based around the Government and COSLA, representing all parties, right to roam. announced a shared commitment with Police Scotland As a Sheffield MP, I am proud to stand on the to work together to challenge discrimination and promote shoulders of Ethel Haythornthwaite, the Sheffield Clarion equality for Gypsies and Travellers—people who have Ramblers and the Kinder Scout trespassers in demanding been economically, socially and politically excluded from that everyone should enjoy, as Ethel put it, the “peace, our country. That has been brought forward with a freedom, solitude, excitement”that comes with the escape package of investment—up to £20 million, announced into the clean air and the gradual return to nature. through the action plan—and critically for the issue of housing, they are linking it to Scotland’s national housing 5.22 pm strategy, to ensure that Gypsy and Traveller communities, whether living on official or new sites or in their nomadic Martin Docherty-Hughes (West Dunbartonshire) (SNP) lifestyles, have access to that investment. [V]: It is good to see you in the Chair, Mr Bone. I hope that you and the Clerks are well in these difficult times. Wehave even recently seen here in Scotland some rather I thank those who brought forward the petition, and I unfortunate terminology from the UK Government’s am grateful to those Members who opened the debate, party and the way in which some of its members have which I will now respond to on behalf of the Scottish utilised the debate to marginalise, yet again, the Gypsy and National party. There will of course be those who ask Traveller community in Scotland. I am glad that no one else why I am participating in the debate, given that the here is participating in the use of that type of language. trespass in England and Wales comes under the remit of Will the Minister consider that this may be an opportune the UK Parliament. However, the debate also relates to time to reflect on what is happening in Scotland? I am the police Bill, which will have ramifications for Scots law. referring to the right-to-roam legislation and the working May I first of all, if you will forgive me, Mr Bone, with the Gypsy and Traveller community. As Members clarify some points on the law in Scotland? At this from across England have already mentioned, there is a moment in time, trespass in both England and Scotland requirement not only to invest in existing sites, but to is a civil wrong but not a criminal act. I can say on open up England’s ancient and historic Traveller sites, behalf of my party that, if we are re-elected to government which are as much a part of England’s heritage as any in May, we will certainly not bring forward any legislation other element of it. It is very important, I think, that at Holyrood to follow the police Bill, which seeks to that should be done. Will the Minister recognise the criminalise trespass, at least from our perspective. I also recommendation not to criminalise trespass? Because highlight that it seemed as if some points made during of the existing legislation, police forces across not only the debate suggested that all members of the Gypsy and England but Wales and Scotland say that there is no Traveller community,owing merely to their being members need for new legislation. of those ancient and historic communities, commit criminal There is also a requirement to understand infrastructure. acts. My own window was smashed at the weekend, and I happen to be the Member of Parliament for West I can tell hon. Members that it was certainly not by Dunbartonshire, in which are found the national park members of the Gypsy and Traveller community; it was headquarters for Loch Lomond and the Trossachs. I am clearly by somebody who probably had too much wine afraid we have to say that the vast majority of trespass, in the sun at the weekend during a global pandemic. I vandalism and the lighting of fires has never traditionally do not assume for one minute that it was a member of been by the Traveller or Gypsy community; it has been the Gypsy, Roma and Traveller community. These by those of us who went out and utilised that lovely part extraordinary statements are entrenched in a lot of the of the world. Through the right to roam and working narratives and debates and discussions we have had with people, working with communities, the national 141WH Trespass 19 APRIL 2021 Trespass 142WH park as a body has reduced those elements: fires, litter Other people who have a nomadic lifestyle have told and antisocial behaviour. It has done so by ensuring me that they feel that they will no longer be able to live that we work together. I hope that the Government and on the road in the way that we have seen in this country the Minister will reflect on the lived experiences and since the 16th century, and that the Bill risks criminalising also the policy experiences across these islands, and I their way of life. Failure to comply with a police direction look forward to hearing their answers. to leave land occupied as part of an unauthorised encampment is already a criminal offence, but the proposals Mr Peter Bone (in the Chair): I call the shadow create a new offence of residing on land without consent Minister, Sarah Jones. in, or with, a vehicle. The broad way in which the definition is drafted seems to capture the intention to 5.28 pm do this as well as actually doing it—the intention can be Sarah Jones (Croydon Central) (Lab) [V]: It is a criminalised as well—with penalties of imprisonment pleasure to serve under your chairmanship, Mr Bone. I of up to three months or a fine of up to £2,500, or both. want to begin by thanking everyone who signed the The loose drafting of the wording in the legislation petition and all the individuals and organisations that invites problems with its interpretation, and it is simply have spent a lot of time, in the various consultations not fair to put that on the police. If someone were to and processes around this issue, giving their views. It is drive in a car, park it and walk somewhere in order to clear that there is a very strong community of organisations, wild camp beneath the stars, what does “with a vehicle” from all kinds of backgrounds and interests, that are cover in the legislation? How far away from the vehicle coming together to give their view and to oppose what would the campers have to be in order to escape carrying the Government are seeking to do. I thank those individuals out a potential criminal offence? and organisations. The major concern that the Opposition have with this I thank the hon. Member for South Ribble (Katherine part of the Bill, and that is articulated in the petition, is Fletcher), who I thought gave a very balanced view, as that it is clearly targeted at Gypsy, Roma and Traveller my hon. Friend the Member for Hammersmith (Andy communities, and such criminalisation could breach the Slaughter) said; and I thank my hon. Friend, who is so Human Rights Act 1998 and the Equality Act 2010. principled and so practical in everything that he says—I When the powers in the Criminal Justice and Public hope that the Minister was paying close attention. Indeed, Order Act 1994 were first debated in Parliament, it was I thank all colleagues who spoke in the debate. We have stated that the powers were intended to deal with “mass heard about both the importance of keeping our trespass”. In the new Bill, however, even a single Gypsy countryside open as much as possible for as many or Traveller travelling in a single vehicle will be caught people as possible and about the other side of this issue, by the offence. What constitutes which is the prejudice and harm that the legislation will do to the Gypsy, Traveller and Roma communities. “significant damage, disruption or distress” That was very well articulated by several hon. Members, is subjective, particularly as there needs to be only one including my hon. Friend the Member for City of vehicle, and what constitutes the intention to cause Durham (Mary Kelly Foy), who made a really powerful “significant damage, disruption or distress” case. I thank everyone for their contributions. As we have heard, over 140,000 people signed the petition is even more subjective. That is in part why the measures against the Government’sproposals. That is not surprising, to increase police powers on unauthorised encampments given the moral and practical problems that the Government are not backed by the police, as we have heard. When are introducing with the proposals. The Petitions Friends, Families and Travellers researched the consultation Committee’s online survey was really interesting and responses that the Government received, it found that asked petitioners for their views. As has been said, over 84% of the police responses did not support the 84% of respondents told the Petitions Committee that criminalisation of unauthorised encampments. “the criminalisation of trespass would have a ‘major’ or ‘moderate’ In her opening speech, the hon. Member for South effect on how they live their lives as they do today…Many Ribble quoted the Minister as saying he wants to ensure respondents were concerned that criminalising trespass could that the police have the powers they need. Actually, they increase pre-existing tensions, mistrust, and lack of understanding believe that they already have the powers they need. between their local community and Travellers. There was consensus Senior police are telling us that the changes in the Bill that more needs to be done to provide authorised sites for relating to unauthorised encampments would only make Travellers.” matters worse. They would add considerable extra cost As I mentioned, a broad coalition—from the NSPCC to the already overstretched police and risk potentially to Liberty, from the Gypsy, Roma and Traveller breaching the Human Rights Act. communities to the Ramblers Association, and from the police to Shelter—is united in the view that the The views of the National Police Chiefs Council and proposals put forward by the Government would be the Association of Police and Crime Commissioners wrong and unhelpful and would go against our basic were clearly put in their joint submission to the 2018 rights. The Police, Crime, Sentencing and Courts Bill is Government consultation. designed to criminalise the act of trespassing when They state: making an unauthorised encampment. What is proposed in the Bill on the trespassing of unauthorised encampments “Trespass is a civil offence and our view is that it should remain so. The possibility of creating a new criminal offence of ‘intentional is deeply concerning and unnecessary. As one of the trespass’…has been raised at various times over the years but the responders to the Petitions Committee’s survey put it: NPCC position has been—and remains—that no new criminal “The criminalisation of trespass will simply exacerbate an trespass offence is required. The co-ordinated use of the powers already fraught relationship. Gypsies and Travellers will still already available under the Criminal Justice and Public Order camp but there’ll be more prosecutions, more distrust, more Act 1994 allows for a proportionate response to encampments public money spent on legalities”. based on the behaviour of the trespassers.” 143WH Trespass 19 APRIL 2021 Trespass 144WH

[Sarah Jones] and antisocial behaviour, which we all abhor and which the Government claim they seek to address. I urge the Why are the Government determined to lock up Gypsies Government to rethink these harmful proposals. and Travellers against even the advice of our own This debate has been a good opportunity to raise police? concerns about the forthcoming Bill, which we will The police already have extensive powers in the Criminal discuss in more detail in Committee. I end by asking the Justice and Public Order Act 1994 to move on unauthorised Minister to answer the following questions in his response. encampments. As of January 2020, just 3% of Gypsy Can he provide an update on the progress of the national and Traveller caravans in England were on unauthorised strategy to tackle Gypsy, Roma and Traveller inequalities, encampments. Some 419 of those caravans were on sites which was announced by the Government in June 2019? not tolerated and 275 were on tolerated sites. Police and We have heard nothing since then. Under the provisions campaigners tell us that the evidence is not there for in the Police, Crime, Sentencing and Courts Bill, what these new powers to be necessary at all and that many would happen to a Traveller family in a single vehicle who more authorised encampment sites should be provided are residing on a highway and have nowhere else to go? instead. In their joint response to the Government’s Can the Minister clarify the Home Secretary’s claim consultationonunauthorisedencampments,theAssociation that there has been a 41% increase in site provision? of Police and Crime Commissioners and the National Can he confirm that that applies only to transit provision Police Chiefs’ Council called for the shortage of transit and that permanent site provision has significantly sites and the lack of accommodation provision to be decreased? Can he confirm that the provisions in the addressed. Police, Crime, Sentencing and Courts Bill on unauthorised In a ministerial statement on 8 March 2021, the encampments are not in breach of the Human Rights Home Secretary stated: Act 1998 and the Equality Act 2010? “As of January 2020, the number of lawful traveller sites Will the Minister look at different approaches, such increased by 41% from January 2010.”—[Official Report, 8 March as that of the Welsh Labour Government, who have 2021; Vol. 690, c. 22W.] placed a legal duty on local authorities to ensure that Friends, Families and Travellers has pointed out that the accommodation needs of Gypsies and Travellers are “this is a gross misrepresentation of the facts.” properly assessed and that the needs for pitches are met? As an example of the current lack of provision for It says that the 41% referred to by the Home Secretary Gypsies and Travellers, only eight of 68 councils in is in fact south-east England have identified enough land in their “an increase in transit provision and the Ministerial Statement areas for Travellers to live on. Will the Minister tell us fails to include this key component of referencing ‘transit’.” where those Gypsy and Traveller families, who will That amounts to about 101 additional transit pitches, otherwise be criminalised, are supposed to go? which is 10 a year over 10 years, whereas the number of Finally, does the Minister agree with the multiple permanent pitches has gone down by over 500 since concerns raised by the police, and what is he doing 2010. Friends, Families and Travellers goes on to say: about them? What is he doing to ensure that the Bill, if “This misrepresentation of the figures leads people to believe passed, does not damage our rights as British people there has been a much greater increase in site provision than there and cause more harm than good? has. In fact, the Government published figures show there has been an overall 8.4% decrease of pitches on local authority Traveller sites.” 5.40 pm The Government should be focusing on ensuring that The Minister for Crime and Policing (Kit Malthouse): local authorities have the resources they need to provide It is a great pleasure to appear under your beneficent more space for Traveller communities to legally reside. hand on this beautiful spring day, Mr Bone. As I am By taking an enforcement approach to addressing the sure colleagues are aware, the debate was convened on number of unauthorised encampments, they are the strength of an online petition submitted on 5 September overlooking the lack of site provision. Friends, Families last year. Since then, the Government have published and Travellers notes: our response to the public consultation “Strengthening “There are other solutions to managing unauthorised Police Powers to Tackle Unauthorised Encampments”, encampments, such as negotiated stopping, whereby arrangements and we have introduced the Police, Crime, Sentencing are made on agreed permitted times on stopping and to ensure and Courts Bill, which sets out our measures to introduce the provision of basic amenities such as water, sanitation and the new criminal offence. I am grateful to my hon. refuse collection.” Friend the Member for South Ribble (Katherine Fletcher) The Conservative party manifesto commitment and for her introduction to the debate, and to all hon. the Government response to the consultation refer to Members who have participated. littering as a problem. Why do the Government not I understand that those who signed the petition were consider providing more authorised camping sites with primarily concerned about the impact that the new proper refuse facilities? If a family are asked to move offence might have on the ancient freedoms of walkers on, where are they supposed to go if there is no authorised and the wider public to access the countryside. As encampment in their area? Why do the Government somebody who represents 220 square miles of beautiful think that confiscating someone’s home, putting them chalk downland in the northern part of Hampshire, I in prison and fining them is the answer? am pleased to be able to say that those who wish to The legislation that the Government seek to introduce enjoy the countryside, including in my constituency, would cause harm to Gypsy and Traveller communities will not be prevented from doing so by the offence. We for generations and threaten their very way of life. It is made that clear in our response to the consultation, and impractical, misleading and adds nothing useful to the the clauses currently before Parliament set out the law that already exists to tackle problems such as rubbish circumstances in which the new powers can be used. 145WH Trespass 19 APRIL 2021 Trespass 146WH

Our proposals, which were included in our manifesto, more of the proposed amendments. The Criminal Justice are aimed squarely at unauthorised encampments. For and Public Order Act, to which the hon. Gentleman many of our constituents, and for landowners, those referred in his speech, will extend the powers of the cause damage, destruction or distress, as well as causing police to direct trespassers away from land. significant cost to local authorities. Residents often feel During the passage of the Bill, I hope we will be able helpless as their local amenities are damaged or disrupted, to reassure the groups that have perhaps taken alarm at and for some councils, such as in Birmingham in 2016, these measures that they will not be affected. Let us with £700,000 of clean-up costs, the bills can be huge. I remember that there is the lock that significant harm have seen that repeatedly in my own constituency. and disruption must be under way and that people must It is only right, then, that the Government seek to be residing with a vehicle, so this does not cover ramblers, protect citizens and strike a balance for those who are who, presumably, are without a vehicle—I am not sure adversely affected by unauthorised encampments. The whether a canoe counts as a vehicle or indeed whether measures that we are introducing in the Bill will give the one can reside in a canoe. Therefore, those who are wild police the powers to bring an end to the misery caused camping or enjoying the countryside will be unaffected. by some unauthorised encampments. The new criminal Hopefully, that will come as a relief. offence will apply where a person who resides on land I now turn to the impact on Traveller communities set with a vehicle causes significant damage, disruption or out in the petition statement. The legislation is not distress and does not leave when asked to do so. That anti-Traveller and it would be wrong to portray it as means that the powers will not apply to people camping such. We know that a small minority of people in in tents in the countryside or to others who inadvertently unauthorised encampments cause harm, disruption and stray on to private land. distress, but the vast majority of Travellers are law-abiding The Government have also amended the Criminal citizens, and unauthorised sites can often give an unfair Justice and Public Order Act 1994, which gives police and negative image of their communities. Enforcement the power to direct people away from land in the first will obviously not be based on ethnicity. Rather, anyone instance when they are causing lower levels of harm, who causes significant harm, disruption or distress disruption or distress. We will broaden the types of under the specified conditions and who refuses to leave harm that can be caught under that provision to include when asked to do so will be caught by the offence. The physical damage to the land and non-physical damage, Government want to ensure fair and equal treatment such as damage to the environment, which includes for all travelling communities. Settled and travelling excessive noise and litter.Disruption includes an interference communities should be able to live side by side with a person’s ability to access any facilities located on harmoniously, and indeed integrate. We hope that the the land or otherwise make lawful use of the land, or clear rules and boundaries that we are putting in place with a supply of water, energy or fuel. Offensive conduct, will facilitate that. The police are fully trained, and we such as threats or abuse, is also covered. We will also expect that their actions will continue to be compliant increase from three months to 12 months the period for with equality and human rights law. which trespassers directed away from the land must not The Government remain committed to developing a return. We will enable police to direct people away from cross-Government strategy, as mentioned by my shadow, land that forms part of a highway. the hon. Member for Croydon Central (Sarah Jones), to I reassure hon. Members again that those who wish tackle the inequalities faced by Gypsy,Roma and Traveller to access the countryside to walk, hike, climb or cycle—as communities. We are also committed to supporting the many of us love to do—will not be caught by the provision of Traveller sites via the new homes bonus. measures. We all have the right to enjoy the beautiful This provides an incentive for local authorities to encourage national parks and green spaces that this country has to housing growth in their areas and rewards net increases offer, and we will be able to continue to exercise that in effective housing stock, including the provision of right, even when the Bill is passed. I am sure that that authorised Traveller pitches. will come as welcome relief to those clubs, associations and individuals who have taken the time to write to In addition, the £11.5 billion affordable homes their MPs or the Home Office about the issue. programme will deliver a wide range of affordable homes to meet the housing needs of people in different Andy Slaughter: Will the Minister explain why he circumstances and different housing markets, and will thinks that the organisations that he indicates, such as include funding for new Traveller pitches. Data shows the Ramblers Association, whose comments I read out, that we have seen an increase in the number of caravans are not at all persuaded by the Government’s view? Will on authorised sites from 14,498 in July 2010 to 20,043 in he, the Minister for Policing, address the police’sconcerns? July 2019, showing that this locally led planning system They do not believe that the provisions are sensible. works. We expect that local planning authorities should Will he also address what the shadow Minister, my hon. assess the need for Traveller sites in their areas and Friend the Member for Croydon Central (Sarah Jones), make provision accordingly. Local authorities are best said about equalities and human rights law? He must be placed to make decisions about the number and location familiar with the leading cases of Chapman v. UK and of such sites locally, having due regard to national Bromley v. Persons Unknown. Does he think he will policy and local circumstances. face legal challenges if this goes through? Finally, I note that the e-petition refers to the impact that the new offence will have on clamping down on Kit Malthouse: I will come on to many of those issues peaceful protest. Of course, the right to protest is a later in my speech if the hon. Gentleman will be patient. fundamental human right and is central to our democracy. We received significant support in the consultation Although the new offences do not apply to protests, we for some of these measures. Some 94% of local authorities are introducing other measures in the Bill that will that responded to the consultation supported one or enable the police to better manage highly disruptive 147WH Trespass 19 APRIL 2021 Trespass 148WH

[Kit Malthouse] was very obvious that the acts of that minority of individuals are a cause of personal pain to him, as well protests, striking a better balance between the rights of as—being a serving council officer—a significant financial protestors and the rights of others to go about their disruption. business unhindered. We heard from the hon. Member for Hammersmith (Andy Slaughter) about how important it is to make Andy Slaughter: Will the Minister give way? sure we have a complete lack of discrimination and the extra sites to provide for a unique part of our heritage, Kit Malthouse: I will not. I hope this Chamber is which as one Member mentioned—forgive me, I have reassured that the measures the Government are taking forgotten which—has been part of our lives since the are right, balanced and measured. We are delivering on 16th century. The hon. Member for City of Durham one of the manifesto commitments that we were elected (Mary Kelly Foy) made a hugely important plea to on. I commend the Government’sresponse to the e-petition. ensure that we always bear in mind that racism, in all forms, is abhorrent. I am quite happy with that, as I 5.49 pm am—on a personal note—with the fact that so many Katherine Fletcher: What an interesting debate. We Members from urban constituencies have attended this have heard from passionate enjoyers of the countryside, debate to talk about something that is fundamentally including from the city of Sheffield—I particularly enjoyed about access to the countryside, such as the wonderful the description of Manchester and Sheffield as one city areas within South Ribble and those within the Minister’s with a massive park in the middle of it. That is how constituency. much the countryside is valued on both sides, and what I will draw my remarks to a conclusion there. I hope has come across very clearly in the contributions of the the petitioners feel that we have done them justice with hon. Members for Wirral West (Margaret Greenwood), today’s debate, and let them draw their own conclusions for Hornsey and Wood Green (Catherine West), for from what the Government and Opposition spokesmen Worsley and Eccles South (Barbara Keeley) and for have said. Thank you, Mr Bone; it has been a pleasure Sheffield, Hallam (Olivia Blake) is the idea that access to serve under your chairmanship. to the environment is a fundamentally British right, Question put and agreed to. provided that we stick within the rules of the countryside. Resolved, I was delighted to hear that. That this House has considered e-petition 300139, relating to We have also heard some powerful testimony about trespass. the harms that illegal encampments can cause from my hon. Friend the Member for Ruislip, Northwood and 5.51 pm Pinner (David Simmonds), to give him his full title. It Sitting suspended. 149WH 19 APRIL 2021 Black Maternal Healthcare and 150WH Mortality Black Maternal Healthcare and Mortality very small proportion of all pregnancies. The situation has also improved slightly over the last 10 years. Those figures mask the underlying, long-standing and shocking [SIR GARY STREETER in the Chair] inequalities in maternal mortality, yet we do not have a [Relevant documents: Oral evidence taken before the Health base of research and evidence to fully explain their root and Social Care Committee on 15 December 2020, on causes and to point the way forward. There is still no Safety of maternity services in England, HC 677; Eleventh Government target to eliminate the gap. That needs to Report of the Joint Committee on Human Rights, Black be addressed urgently. people, racism and human rights, HC 559.] What do we know about women who die during or 6.15 pm shortly after pregnancy? Pregnancy alters the way the body works. Two thirds of all pregnant women who die Sir Gary Streeter (in the Chair): Welcome, everyone, fall victim to complications such as heart disease or the to this important debate. I remind hon. Members that care they receive while pregnant. Most do not die some changes have been made to normal practice, to during childbirth itself. Dr Christine Ekechi, co-chair of support the new hybrid arrangements. Timings of debates the race equality taskforce at the Royal College of have been amended to allow technical arrangements to Obstetricians and Gynaecologists, points out that black be made for the next debate. There will be a suspension women are more likely to have pre-existing health conditions between each debate. I remind Members participating that lead to greater risks during pregnancy. However, physically and virtually that they must arrive for the she also highlights that the obvious question to ask is start of debates. Members are expected to remain for why black non-transmissible health issues such as cardiac the entire debate. disease and high blood pressure are more prevalent in I remind Members participating virtually that they the first place. If it is a result of existing social and are visible at all times, both to one other and to us in the economic inequalities, that must be addressed. Boothroyd Room. If Members attending virtually have any technical problems, they should email the Westminster Across all ethnicities, most pregnant women who die Hall Clerks’ email address. Members attending physically have complex medical needs, but leading maternal health should clean their spaces before they use them and researchers such as Professor Marian Knight have expressed before they leave. I would also like to remind Members concerns that our health and social care system is just that Mr Speaker has stated that masks should be worn not set up to deal with that complexity. Clinics are often in Westminster Hall. basedatdifferenthospitals,requiringseparateappointments. Communication between them does not seem to happen Before I call Catherine McKinnell to move the motion, in the way it should. Women are often expected to I must say that we have 12 Back-Bench speakers. We juggle other childcare and work commitments while normally allow 10 minutes for each Front-Bench speaker. attending myriad appointments at a range of different If Catherine speaks for about 10 minutes, that should institutions. Not all women have the same support and allow for in the region of four minutes for each Back-Bench security at home and at work, and the system does not speaker. I will not impose a formal time limit, but I ask account for that. everyone to try to deliver your speech within four minutes. That would be most helpful. Accounts have shown that the symptoms that pregnant women present with are too often dismissed and attributed 6.16 pm to pregnancy itself, when they could be indicators of Catherine McKinnell (Newcastle upon Tyne North) serious underlying medical complications.Pregnant women (Lab) [V]: I beg to move, from all backgrounds report not being listened to despite That this House has considered e-petition 301079, relating to the fact that that is crucial to the physical and mental Black maternal healthcare and mortality. wellbeing of both mother and child. Professor Knight It is an honour to speak under your chairmanship, points to what she calls the “constellation of biases” Sir Gary. I am also honoured to open this debate on that black and Asian women are subject to. Those range behalf of the Petitions Committee and the more than from lack of listening, learning and nuance around 187,000 people who signed the petition organised by women’s backgrounds and the most appropriate care, to campaigners Tinuke Awe and Clo Abe. micro-aggressions, all the way to completely unacceptable race-related perceptions such as the entirely unsubstantiated The petition highlights the shameful fact that in notion that black women have higher pain thresholds. If 21st-century Britain, the colour of a woman’s skin pregnant women are not being listened to and their affects how safe she and her child are during pregnancy symptoms are not taken seriously, or if they feel that and birth. That is one of the starkest examples of racial they will not be, that is a recipe for tragedy. health inequalities in this country. As Tinuke and Clo have pointed out, the latest data show that black women It is important that public awareness of that issue has are more than four times more likely than white women finally begun to increase, which is in no small part to die during pregnancy or in the six weeks after giving thanks to the work of such campaigners as Tinuke and birth. Women from Asian backgrounds are twice as Clo and the initiatives that they have launched, such as likely as white women to die during pregnancy. To put Black Women’s Maternal Health Awareness Week, which that into context, I should state from the outset that the was first held last September, and the petition that we UK is one of the safest countries in the world to give are debating. More women are now coming forward birth. Deaths during pregnancy are very rare. I am sure with their experiences, and five times more have shared the Minister will reiterate that in her response. their stories. One woman recounted: Around one in 10,000 pregnant women dies every “As soon as the second midwife was on shift she just seemed to year from causes related to their pregnancy. Every have one goal in mind and that was delivering my baby as soon as single one of those deaths is a tragedy, but they are a possible, she didn’t seem to care about easing any part of my pain 151WH Black Maternal Healthcare and 19 APRIL 2021 Black Maternal Healthcare and 152WH Mortality Mortality [Catherine McKinnell] That truly is a source of shame for this country, which is why today must mark the day that future generations or reassuring me for the many worries I had at the time—she start to look back and wonder how on earth this situation rushed my labour along and as a result almost cost me my sons was ever tolerated for so long. life.” Another said: 6.25 pm “I already seemed like that hyper-emotional black woman worried about nothing and I let that silence me. I really wish in Ms Harriet Harman (Camberwell and Peckham) (Lab): this moment I expressed my concern or spoke up, because I I thank the members and Chair of the Petitions Committee honestly couldn’t have fathomed that what happened next would for choosing this subject for debate. My constituency come.” contributed the second highest number of signatures to The reaction on social media to Channel 4’s recent this petition, which reflects the concerns of both black “Dispatches” documentary was also very telling. One and white people in my constituency. Twitter user said: It is particularly tragic when a new mother dies. She “For many Black women ‘The Black Maternity Scandal’ on will die early in life, leaving behind a newborn or other Ch 4 is sadly not shocking or eye opening at all. Not being children. Everyone in maternity services wants maternity listened to in times of pain has become far too normal and it has care to be a properly resourced and highly professional to change.” team. A black woman is four or five times more likely Another wrote: than a white woman to die during childbirth or shortly “For many of us Black and Brown women, this felt like the thereafter, and nobody wants that to be the case. It is a first time our stories and traumatic, hurtful experiences got a dreadful situation and it must be addressed. I have four small hearing on national TV.” proposals for the Minister. I know that she understands Pregnancy can be a special and exciting time, but it this issue very well, having worked in the health service. can also be exhausting and terrifying. For any woman She cares about it, so I look forward to hearing her to have to spend it not being listened to or not receiving response. the most appropriate care because of the colour of her First, the monitoring must be clear and publicly skin is nothing short of appalling, so it is unsurprising accessible. The publication of covid statistics has provided that there is now an increasingly vocal consensus on the a real example of this. It has shown how,when information urgent need for more research and evidence, and for needs to be brought into focus and targeted at the firm commitments from the Government and the NHS public and everybody in the health service, the regular to end the scandal. We need to address the under- and consistent publication of statistics can enjoin us all researching of health issues that black women face, and in a public effort. Coherent statistics must, therefore, be get a clear picture of the data on maternal deaths published. among different ethnic groups. Many different ethnicities Secondly, as my hon. Friend the Member for Newcastle are grouped together under broad categories, which upon Tyne North (Catherine McKinnell) has said, we risks missing cultural nuances, misrepresenting experiences must have a target to end this black maternal mortality and leading us to the wrong conclusions. gap, with milestones set for progress year by year. The Maternal deaths are just the tip of the iceberg. For Joint Committee on Human Rights, which I chair, every woman who dies, many more will have severe heard evidence from the chief midwifery officer that pregnancy complications,and there is evidence of disparities there is a great deal of concern about this issue but no between ethnic groups in that respect, too. However, the targets have been set. We know that the NHS works to number of those cases and the impact on their families targets and to milestones. Good intentions are not and lives is not recorded. Lack of research on those enough. so-called near misses is a gap in the knowledge base that Thirdly, we have to reduce health inequalities—this is must be urgently and proactively corrected. a general but important point—and income inequalities, Tinuke and Clo are asking MPs to act by signing up which mean that if someone is black they are more to the Five X More black maternal health pledge, which likely to have a low income, and if they are on a low I know many colleagues who have spoken today have income they are more likely to have poorer health. already supported. One of the asks is that the Government Finally, we must recognise that this is not just about implement the recommendations of the Joint Committee the health status of the mother; it is also about the on Human Rights, including the introduction of a firm delivery of care. We have to face up to a difficult truth. target to end the disparity in maternal deaths. I would Polling by the Joint Committee on Human Rights found be grateful if the Minister would tell us whether the that 60% of black people felt that they were not likely to Government agree with the Joint Committee on Human get equal care in the NHS, and 78% of black women felt Rights, the chief midwifery officer and the petitioners that the NHS would not give them equal treatment. For that such a target must be put in place. It would also be white people, those are shocking statistics, particularly useful to know whether the Government intend to as so many black women and men play such a crucial address the data gap in medical research in the upcoming part in providing NHS services. Those figures are based women’s health strategy. on the experiences and expectations of black women in I want to end by quoting what Tinuke said in an a society where black people are not treated equally. interview with The Guardian last year: This is a matter for the consideration not only of everyone in every part of our society, but of everyone in “In 1991 when my mum gave birth to me she was at greater risk of dying. In 2020 when I gave birth to my daughter that risk had every part of the NHS and everyone involved in maternity increased and I was five times more likely to die…I’ll be damned care. Like the Chair of the Petitions Committee, I hope if my daughter, whenever she decides to give birth, is 25 times that this debate will mark the start of rapid and transparent more likely to die.” progress towards ending this egregious inequality. 153WH Black Maternal Healthcare and 19 APRIL 2021 Black Maternal Healthcare and 154WH Mortality Mortality 6.29 pm suffered from a disease called fibroids until I had my first maternal scan. That brought additional fear and Kate Osamor (Edmonton) (Lab/Co-op) [V]: It is an anxiety around my childbirth, but for far too many honour to serve under your chairmanship, Sir Gary. women, pregnancy and childbirth can be complicated First, I congratulate Tinuke and Clo, the co-founders of and dangerous. When I got pregnant, I also realised Five X More, on working tirelessly to change black that I was a sickle cell carrier. women’s maternal health outcomes, and on putting forward this petition, which gained over 187,000 signatures. We have known for some time that maternal and The racial disparities in maternal mortality rates are perinatal mortality rates are significantly higher for completely unacceptable. A black woman is four times women of black, Asian and mixed heritage and their more likely than a white woman to die in the UK due to babies. That is why we have to do everything we can to pregnancy or childbirth. Just think about that—that is ensure that pregnancy and childbirth is as safe as it can four times as many women passing away well before be for all women in this country. We have the data. We their time, and four times as many families suffering the know that the death rate in childbirth for black women pain and grief of losing a loved one. is five times that for white women. In 2021, that cannot be acceptable. It is not just those women who have sadly died who have been victims of this disparity. Research by the To tackle the problem, we must first acknowledge the Nuffield Department of Population Health has shown structural and institutional racism that exists in our that women of black African and black Caribbean healthcare system. We know that black and minority heritage are, respectively, 83% and 80% more likely than ethnic women are sometimes not listened to during the white European women to suffer a near miss of maternal course of their care, and this can be subject to unconscious death. That reflects, and is the consequence of, the bias and microaggression. As a result, their symptoms wider disparities in care, which countless women have are dismissed as normal during pregnancy, whereas recounted from their experiences. As well as the they should be investigated a lot further. socioeconomic inequality that disproportionately affects The NHS is aware of the disparity, but it has no black people, a study by MBRRACE-UK showed that target to end it. I hope that by raising awareness of this only 29% of women who died during pregnancy and issue, we will help to kickstart a national debate that childbirth were deemed to have received good care, with will lead to the Government taking real action to address improvements in care being judged to have potentially it. My colleagues have already asked the Minister to made a difference to the outcome in 51% of those respond by looking at those key targets. We need to cases—evidence that there are clearly improvements to work with the NHS to implement the Joint Committee be made. on Human Rights’ recommendations, which are clear. The attention shone on this issue in recent months, They are about reducing racial disparities in black and and highlighted by the sheer number of people who minority ethnic maternal health outcomes, and specifically have signed the petition, must be used as a spur for the about introducing those targets, so that we can measure Government and the NHS to develop a clear action those protections. plan. Furthermore, it highlights the damaging nature of the Government’s recent race report, which sought to 6.35 pm sideline almost any suggestion that racism could be a Sarah Owen (Luton North) (Lab) [V]: It is a pleasure factor in the different outcomes experienced by people to serve under your chairship, Sir Gary. I thank the right in Britain today. Racism is not just a perception or hon. Member for South West Surrey (Jeremy Hunt), the historical experience, as Tony Sewell wrote in his foreword Chair of the Health and Social Care Committee, for to the recent report. asking me to respond on behalf of the Committee. Too This is not about a chip on our shoulder; it is about often our Parliament is viewed as old, with blind spots addressing the real inequality of black maternal mortality on issues such as the health inequalities that affect black rates, which result in women unnecessarily passing away. people, and black women in particular, so I am grateful It is a disparity that requires the Government to take to each of the nearly 200,000 people who signed the seriously racial and ethnic disparities. Therefore, what petition. we are asking today, and what the campaigners have We have already heard that black women in the UK been asking the Government to do, is to listen and to are four times more likely to die during pregnancy or really take the data seriously. I hope the Minister will childbirth than other women, and up to twice as likely introduce an NHS target to end this disgusting disparity. to experience a stillbirth than white women. This is not coincidence or fluke. We see in the available data and in 6.32 pm people’s experiences how health services, designed Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]: It is a disproportionately by non-black people, fail to meet the pleasure to serve under your chairmanship, Sir Gary. I needs of black people. It is an institutional problem. thank the campaigners for bringing this really important The Select Committee is currently looking into the issue to Parliament and for raising awareness on behalf safety of maternity services in England. The brilliant of all women. Over 1,186 Vauxhall constituents signed Tinuke and Clo from Five X More came to speak to us the petition that has led to this important debate. and share their experiences, and I thank them for leading As the mother of two young children born just over this petition and for their campaigning work. Clo told the road from Parliament, at St Thomas’Hospital, I know the Committee that there needs to be greater investment that giving birth should be one of the most natural and to understand the huge disparity in health outcomes for exciting experiences that any mother can have. I think black women. We currently do not collect data on near back to my first pregnancy—the fear, excitement and misses, morbidity, illnesses or poor outcomes for black mixture of emotions. Like many women from a black or women. I hope the Minister announces some changes minority ethnic community, I was not aware that I to that. 155WH Black Maternal Healthcare and 19 APRIL 2021 Black Maternal Healthcare and 156WH Mortality Mortality [Sarah Owen] They said that my pregnancy had become very dangerous and there were only two outcomes: my child would die, Clo also told us that only once we uncover the or both myself and my child would die. My diagnosis experiences of black women going through maternity was too late for any intervention, and simple steps—which services and set targets to do better will we have better I soon found were simple things such as taking aspirin— outcomes for all black women. The same sentiment was were no longer an option for me. The consultants’ advice echoed when I met Mars Lord, a doula and birth was for a late termination and a delivery to save myself. activist working on the Black Mums Matter Too campaign, They also explained that my condition was deteriorating which is not only highlighting the shocking inequality so quickly that I would immediately have to nominate facing black women and their children relating to maternal someone to make the decision for me if I should become mortality, but taking action to save lives. Mars is working unconscious. with Peppy Baby, which gives black birth parents free expert support, delivered remotely via an app. Some 83% of women of African origin, like myself, and 80% of Caribbean women suffer a near miss in In my own constituency, I have been doing my best to pregnancy and childbirth. Not only do we not have a support my constituent Ernest Boateng. His wife, Mary target to end this, but we do not have information about Agyeiwaa Agyapong, sadly lost her life to covid-19. the health issues that black women go on to face. I did Mary was pregnant, and a nurse at Luton and Dunstable not have to make this decision, because a scan scheduled University Hospital in my constituency. Shortly after the day after that meeting showed that my baby’s heart undergoing a C-section, Mary sadly died. I have been so had stopped beating. I was induced, and after something moved by Ernest’s resolve and commitment over the like 18 hours of labour, she was born. As a person of last year to seek answers and to make sure that no other faith, even then, I still had faith that maybe the doctors family faces such a tragic loss in the same way. I were wrong and everything would be okay, but she did presented Ernest’s petition for greater protections for not move, she did not cry, and there was no miracle. pregnant women during the pandemic to Parliament Black babies have a 50% increased risk of neonatal earlier this year. This is hugely important, especially as death, and a 121% increased risk of stillbirth, like my 55% of pregnant women hospitalised during the first own daughter. With figures like that, I wonder how months of the pandemic were from black, Asian and much of a chance she really had. We know this, and we minority ethnic backgrounds. have no target to end it. I have written to the Minister multiple times to ask her to meet Ernest. He is the father of two children, and When I talk about this, I am asked how long ago it his one-year-old, little Mary, will never get to meet her was and how far along I was. I just want to say that mum. He is campaigning to make things better and when any woman loses a baby, however her pregnancy safer for other expectant parents, but sadly every time I ends—miscarriage, stillbirth, or even an abortion if she have asked, the Minister has responded that she is too had to have one—it is not for anyone else to quantify busy to meet me and Ernest, so I use this opportunity to how much pain she must feel, as if to decide how much ask for even just 20 minutes of her time. I am sure that empathy to show, and it is certainly not for them to she will stand up and say the right things, and I know decide how much care she should be shown. that her heart is in the right place. I am more than I would like people to stop blaming black women—that happy to assist, if she is willing to listen to the experiences is all I have heard in response to some of the messages of Ernest, so that no family has to face the devastating that have been put out. So often, black women are loss that his has. viewed as the problem, but we could be the solution if people would just listen to us, respect us and care for us. 6.38 pm We are not a lump of comorbidities—some of us who go on to have these tragic experiences did not even have Bell Ribeiro-Addy (Streatham) (Lab) [V]: It is a pleasure any comorbidities. Weare black women who have decided to serve under your chairmanship, Sir Gary. I start by to bring life into this world, and that choice has become paying tribute to Tinuke and Clo from Five X More, a matter of life and death and health. The inequality we who have been leading the charge in calling for action face is not our fault. Inequality is an institutional and on black maternal health. Black women are four times political outcome—an institutional and political choice— more likely to die in pregnancy and childbirth—we have and it is the duty of the Government to end it, not to heard that many times today, and we will probably hear outsource responsibility and blame those who are suffering. it some more, but I really want it to hit home. We know this, but we have no target to end it. In the US, they have just had a Black Maternal Health Week, and $200 million were put towards ending During my own pregnancy, it was not hard to find this disparity in training clinicians. In the UK, we have instances where, as a black woman, how I was perceived a Government who have ordered reports saying that or believed drastically impacted the care I received, institutional racism does not exist. So when the Minister from complaints about how I was feeling to being responds today,I do not want to hear what the Government denied scans. We know that black women are perceived think is wrong with women who look like me; I want to to experience less pain. We know this, and we have no hear what they will do to protect women who look like target to end it. me, and the children we have. I want to hear that this Things went from bad to worse for me. I was swollen. Government realise that if they are not part of the My blood pressure would get so high that I would feel solution, they are part of the problem, and I want them dizzy and my nose would bleed. My doctor eventually to acknowledge the institutional racism that we face had me rushed to the hospital for further tests and and to have a target to end it. The colour of a woman’s scans,and I was admitted to the hospital with pre-eclampsia. skin should have no bearing on whether she or her child My last conversation with the consultants was harrowing. live or die. 157WH Black Maternal Healthcare and 19 APRIL 2021 Black Maternal Healthcare and 158WH Mortality Mortality 6.43 pm for Streatham (Bell Ribeiro-Addy) for sharing such Abena Oppong-Asare (Erith and Thamesmead) (Lab) a personal, moving story that is so relevant to the [V]: It is a pleasure to serve under your chairmanship, debate. Sir Gary. I thank my hon. Friend the Member for Every death in maternity is a tragedy, but it is wrong Newcastle upon Tyne North (Catherine McKinnell) for that we are having to speak on the issue of black women bringing this e-petition debate on black maternity healthcare dying during pregnancy or soon after giving birth in the and mortality before the House. I also thank Tinuke UK. It is unacceptable that the disparity exists between and Clo, the founders of the Five X More campaign, women from different ethnic backgrounds. It is most who have been fighting to get this issue taken seriously. distressing that when a mother dies, a child or children Other Members have touched on these heartbreaking are left motherless, not to mention the loss to their and stark statistics, but they bear repeating: black women partner or spouse and to the wider community. Too are four times more likely to die during pregnancy or up many unanswered questions need to be asked, and too to six weeks postpartum, women of mixed heritage are many changes need to be made, and that is why we three times more likely to die, and Asian women are request that the Government work with the NHS to twice as likely to die. Each loss of life is a tragedy, and improve maternal health outcomes of black women, that disparity is unacceptable. It needs to be understood women of mixed heritage and Asian women. and it needs to change. As we have already heard, compared with white I also want to mention the Royal College of Obstetricians European women, black women in the UK are four and Gynaecologists’ term “near misses”. The numbers times more likely to die in pregnancy and childbirth, of women who survive childbirth and are left with women of mixed heritage are three times more likely to long-term morbidity are currently not recorded, but are die, and Asian women are two times more likely to die. part of a wider health picture. They must be taken into African women are 83% more likely to suffer a near account. For the past year, covid has exacerbated many miss in childbirth, and black Caribbean women are of these issues. In fact, even when other factors such as 80% more likely to do so. That is all happening in the age, obesity and location were taken into account, black UK. It is shameful and outrageous. How and why is it and Asian women are more likely than white women to happening? It is a huge concern regarding equality of be hospitalised. We need to understand why that is the care. Why are non-white women’s experiences so different case, because the statistics can only tell us so much. A compared with those of white women? Change needs to commitment to looking into how and why that is the happen, and it is this Government’s responsibility to case is urgently needed. I am sure that all of us in the make the change happen. debate today would welcome that. These babies are 121% more at risk of stillbirth. These tragic deaths are part of a wider picture, a Their life chances are limited before they are even born. story of health inequality, with black women facing Do these little black lives matter? I think they do, and I disparities when it comes to stillbirths, cancer diagnoses know that many Members in this Chamber agree with and outcomes, and access to fertility treatment, among that. Immediate interim changes and safeguards need other things. We must recognise that disparities in health to be put in place now for these vulnerable women to outcomes are driven by social factors—poverty, education protect their lives: the lives of the mothers and children. and housing—as well as discrimination. None of that is I call on the Government to implement the new. It is not earth-shattering. It is not changing, either. recommendations in the Joint Committee on Human That simply is not good enough. So we need action, and Rights report on black maternal health, “Black people, we need action now. racism and human rights”, to ensure that all health The Government must commit to a target to reduce the professionals record and identify those who are most at disparity in mortality rates. The Government must support risk of poor outcomes, so that protective factors are Five X More pledges, including the recommendations implemented. I also call on the Government to ensure that relating to black maternity health in the report “Black there is increased support for at-risk pregnant women. I people, racism and human rights” produced by the ask the Secretary of State for Health and Social Care to Joint Committee on Human Rights. There needs to be a introduce a plan and target to improve maternal outcomes full and independent review that seeks to end the disparity for black women. Professor Maggie Rae, president of once and for all. The NHS must commit to robust data the Faculty of Public Health, has said: collection to aid the understanding of these outcomes. “This year’s coronavirus pandemic has brought this For a start, we need to move beyond the term BME. disparity even more starkly to the fore, and we must not When women are dying, it is not good enough use data lose sight of the actions that are required to address catch-all terms. Weneed to do more to deliver a workforce systemic biases that impact on the care we provide for that reflects the diversity of the communities it serves. ethnic minority women.” On a final and quick point, I have not mentioned “no recourse to public funds”. That is, of course, the huge 6.50 pm elephant in the room when it comes to health outcomes. Some women face costs of £7,000 or more for essential Naz Shah (Bradford West) (Lab) [V]: It is a pleasure maternity care. These are the very women who are to serve under your chairmanship, Sir Gary. May I at risk of increased mortality. It is time for that practice associate myself with all the comments that have been to end. made? I commend in particular my hon. Friend the Member for Streatham (Bell Ribeiro-Addy) for the 6.47 pm courage and bravery with which she spoke. Janet Daby (Lewisham East) (Lab) [V]: I am pleased The disparity of maternity care outcomes in England to be speaking today on such an important but also is already well known. Black women are four to five times disturbing issue. I commend my hon. Friend the Member more likely than white women to die during pregnancy, 159WH Black Maternal Healthcare and 19 APRIL 2021 Black Maternal Healthcare and 160WH Mortality Mortality [Naz Shah] The maternal mortality for women from Asian backgrounds is double that for white women. There is birth and the postpartum period, while our Asian women, also a concerning increase in the maternal mortality most of whom are from Pakistani and Bangladeshi rate for women from mixed ethnic backgrounds, who backgrounds, are two to three times more likely than now have a three times higher risk compared with white white women to die during those periods. Those statistics women, yet there is no target to end any of this. There is have been known for many years, but in the last 20 years no doubt that health disparities within maternity care or so they seem to have gone the wrong way and got settings have been amplified by the coronavirus pandemic. worse. Indeed, African, African-Caribbean, Asian and minority We must find out why black and south Asian women ethnic women made up 56% of all pregnant women and their babies are more likely to die. In addition, we hospitalised in the early months of the pandemic. need to find out why black women and then south Discrimination is ingrained in the social, political Asian women are most likely have an emergency C-section. and economic structures of our economic system. Why are black women and then south Asian women According to the Office for National Statistics, key most likely to have excessive bleeding? Are those factors workers are more likely to be from black, Asian or contributing to their deaths? Are those women receiving minority ethnic communities, to be women, to be born the right care at the right time? We need to look further outside the UK and to be paid less than the average UK into all those questions, because most of the deaths are income. These inequalities are grounded in class inequality likely to be preventable. and reflect the severe racial disparities in our economy. Why do racial and ethnic variations in health outcomes African, Asian and minority ethnic women are also occur? The Government’s latest report suggests that more likely to be in insecure work, which can leave them institutional or structural forms of racism just do not without basic maternity rights and more exposed to exist, and that, in fact, they are just in our minds, or discrimination when it comes to hospital treatment. they are narratives pushed by groups that lobby on That said, we cannot ignore the issue of racism and racism. I would be really grateful if the Minister explained implicit racial bias in our healthcare system, which can why, if there is no racism, those disparities exist. negatively influence diagnosis and treatment options I am co-chair of the all-party parliamentary group provided by clinicians, including pain management, and on Muslim women, which is currently conducting research indirectly affect medical interactions, through loss of to find out about Muslim women with babies and patient-centredness in treatment and the removal of maternity care, so that lessons can be learned to mitigate patient autonomy. That has a corrosive effect on trust in existing inequalities. Muslim women are from diverse services, which creates a downward spiral of healthcare ethnicities, and in the UK they are mostly from black outcomes. and south Asian backgrounds, but we wanted to take The demonisation and mistreatment of migrants and an intersectional approach to find out how overlapping those with unsettled status must also end. Migrant factors, such as ethnicity and faith, could affect their women with insecure status face charges of £7,000 or healthcare. The aim is to find out why those women more for NHS maternity care, which can deter women have poor health outcomes, and to understand their from accessing essential services. The Government cannot perspectives and experiences of the healthcare during be serious about reducing maternal health inequalities and after pregnancy. The findings of the inquiry are set unless they abolish the “no recourse to public funds” to be published in the autumn. policy. This debate signifies just how important such an There is also a significant gap in the medical research inquiry is, so I will end by expressing my gratitude to the community, contributing to disparity of access in the whole team in the APPG on Muslim women, to the UK. Latest figures show that 0.7% of professors employed Muslim Women’s Network UK, and to all colleagues at UK universities are black. In 2018, there were just across the House who raise this important issue. 25 black British female professors in UK universities. Much more must be done to invest in research and researchers who can help combat those unacceptable 6.53 pm health inequalities. Claudia Webbe (Leicester East) (Ind) [V]: It is a I finish by saying how callous, how cruel and how pleasure to serve under your chairmanship, Sir Gary. I ignorant the Government’srecent race and ethnic disparities congratulate the campaign group Five X More, and the report is in the context of this debate. The Government’s hon. Member for Newcastle upon Tyne North (Catherine crusade to deny the existence of institutional racism McKinnell) on securing this hugely important debate, means that the disproportionate suffering of pregnant as well as the nearly 200,000 UK residents who signed women of African, Asian and minority ethnic backgrounds the petition. The debate could hardly be more important, is ignored. This must change. The UK Government as it shines a light on a devastating and long-neglected must urgently set a target to abolish racial disparity to area of institutional racism. combat maternal mortality, so that we can all hold them The latest UK data shows that black women are five to account and work towards long-lasting change. times more likely to die in pregnancy, or up to six weeks after giving birth, compared with white women, yet 6.58 pm there is no target to end that. This difference has almost Wera Hobhouse (Bath) (LD): I am grateful that we doubled since 2011, with a 121% increased risk for are debating this important petition today and pay tribute stillbirth and a 50% increased risk for neonatal death, to the women who have bravely shared their stories, but there is no target to end this. It is not true that black from those involved in the “Dispatches” documentary women are superhuman. They do not have a higher to the Five X More campaigners to some of my own pain threshold. constituents in Bath. 161WH Black Maternal Healthcare and 19 APRIL 2021 Black Maternal Healthcare and 162WH Mortality Mortality The disparity in maternal health outcomes between The statistics on maternal mortality are truly shocking. black and Asian women and white women is one of the Skin colour should have no correlation with maternal most frightening elements of systemic racism in today’s health, yet in the UK, black women are over four times society. The statistics revealed in the MBRRACE report more likely than white women to die during pregnancy should shock and horrify us all. It should go without or childbirth; women of mixed heritage are three times saying that health outcomes should never be determined more likely; and Asian women are twice as likely. What by race, but for too many women this is the awful reality is even more shocking is that the gap has been widening— when accessing healthcare. One of my constituents said: not for a short period of time, but for more than a “I have two dual heritage daughters. As things stand, they are decade. three times more likely to die during pregnancy and childbirth The factors contributing to maternal mortality rates than my white friends’ daughters.” are complex and multiple. Social and economic factors Another wrote to me to share her concern that her race have a strong influence on underlying health. Pressures affected the way she was treated. such as insecure work, low income and fear of losing She felt she was not properly informed about the employment force some women into unsafe situations. options open to her,her concerns were not taken seriously, Implicit racial bias in healthcare can lead to assumptions and she could not say no when she felt uncomfortable. being made and some women not being listened to. The Closing the gap between maternal health outcomes extent to which women are listened to, respected and for white women and for women of colour must be a empowered throughout pregnancy and childbirth has a priority for the Government. It is not enough merely to vital bearing on ultimate outcomes. recognise the disparity; we need a specific target to The most shocking aspect is that every organisation dramatically cut the rate of maternal deaths among concerned with maternal mortality says that more research black women. I urge the Minister to ensure that targets is needed to understand why black women are at greater are in place to halve the disparity in the next five years. risk of death. After a decade of increasing black maternal We need more and properly funded investigations into health disparity, we still need more action to understand maternal death, with recommendations that are actioned. why there is such appalling racial healthcare inequality, We need national accreditation for those who provide so that action can be taken to stop it. That means better language support in maternity care, and we need to data collection, clear and measurable targets, and more look at health outcomes for those new mothers who funding for research. have no recourse to public funds because of insecure immigration status. We have to ask why those appalling statistics have been of so little concern to the Government that they On top of that, if we are serious about eliminating have failed to undertake any major inquiry or fund maternal health inequalities, we must tackle the inequalities significant research. There is a gender and ethnicity gap that exist in all areas of society. We know that the in medical research, and that must change.The Government pandemic has made all inequalities much worse. Women must now commission an independent review of the from ethnic minority backgrounds made up 56% of all ethnic disparity in maternal mortality, looking in detail pregnant women having to go to hospital in the early at the data and capturing the lived experience of black months of the pandemic. Women from ethnic minority women, Asian women and women of mixed heritage. backgrounds are more likely to be key workers, giving them an increased risk of contracting the virus. They I want to highlight in particular some of the things are more likely to be in insecure employment, which that are known and on which action could be taken leaves them without basic maternity rights. They are at right away to make a difference, even as further research risk of higher exposure to discrimination and poor is commissioned. We know that women from black and treatment at work, affecting their mental health. Once Asian backgrounds are more likely to be key workers in again, I urge the Treasury to look at Maternity Action’s frontline roles and physical roles such as social care. proposals for amending the furlough scheme. It would Many of those women are on low pay and in insecure allow employers to claim 100% of the cost of maternity work. Maternity rights and health and safety protections suspension for women who are over 28 weeks pregnant, at work must be extended to all women, whatever their or pregnant women with underlying health conditions—we employment status or job role. It must not be the case have heard today that underlying health conditions that fear of losing pay or losing work forces pregnant make it much more risky for pregnant women from women to risk their health, either through the work different ethnic backgrounds. itself or through being unable to attend essential healthcare I hope that the powerful personal stories shared by so appointments. many brave women will spur urgent action from the The barriers to accessing healthcare that face some Government. We need to listen to black women, to black and Asian women, particularly asylum seekers ensure that pregnancy and childbirth are safe for all. and women with no recourse to public funds, must be removed. In maternity care, relationships really matter. 7.2 pm Women’s experiences during pregnancy and childbirth are far too inconsistent across the country, but often, Helen Hayes (Dulwich and West Norwood) (Lab) the best care is delivered by community-based midwifery [V]:It is a pleasure to serve under your chairmanship, teams, working across both community and hospital Sir Gary. I pay tribute to Tinuke and Clo for their vital settings and enabling women to get to know and trust work campaigning on black maternal health under the the midwives who will eventually deliver their babies. banner Five X More . I also pay tribute to my hon. Dealing with a birth is not like other forms of healthcare. Friend the Member for Streatham (Bell Ribeiro-Addy) Women in childbirth should feel that they are equal for sharing her devastating experience so bravely and partners with midwives, doctors and the wider professional powerfully. team to deliver their baby safely. 163WH Black Maternal Healthcare and 19 APRIL 2021 Black Maternal Healthcare and 164WH Mortality Mortality [Helen Hayes] We are now a year into a pandemic that has laid bare the pervasive health inequalities that exist in our country. Finally, the racial disparities in maternal health further We have seen clearly that race, class, housing, education, serve to underline the nonsense of the report by the income and employment all directly define someone’s Commission on Race and Ethnic Disparities. That report chances of survival. More than half of pregnant women straightforwardly denies the lived experience of many admitted with covid-19 in the first two months of the black people and people of colour living in the UK. pandemic were black, Asian or from another minority Addressing structural racism, shown so clearly in the ethnic group. Black women have been eight times more health data we have been discussing today, must start likely to be admitted to hospital as a result of coronavirus. with listening to and taking seriously the experiences of These inequalities are widening and will become more black people and people of colour in the UK, not profound as deprivation and disadvantage continue to denying those experiences. That report will not even be fuelled by the pandemic and women continue to help to get off the blocks the work that needs to be done suffer. to iron out and remove racial disparities in maternal The recent Sewell report, backed by the Government, health. who allegedly had a hand in doctoring its findings, had the gall to assert that structural racism no longer exists 7.7 pm as a dominating force in Britain today. The figures and the stories that we have heard today tell a very different Kim Johnson (Liverpool, Riverside) (Lab) [V]: It is a story, so will the Minister go back to the Government pleasure to serve under your chairship, Sir Gary. I, too, and appeal to them to rectify the report, given the would like to begin by thanking the Five X More undeniable evidence we have heard today? This must be campaign for raising awareness and bringing this important a turning point. The Government must commit today debate to Parliament, and my hon. Friend the Member to a national strategy to tackle health inequality, which for Streatham (Bell Ribeiro-Addy) for her bravery in must include a road map and a timeframe for the sharing her devastating story with us all tonight. eradication of the racial injustice in maternity care. I am a black mother of twins and I had a very positive experience, but sadly, too many black women 7.11 pm are dying needlessly in childbirth. In today’s historic Anne McLaughlin (Glasgow North East) (SNP) [V]: I debate, we have already heard incredibly personal and am happy to speak under your chairmanship today, Sir heartfelt stories, and I pay tribute to my sisters’ strength Gary, although what we are discussing is a very unhappy and bravery in sharing their experience to help to bring set of circumstances. I thank Five X More for the about change. petition and the debate, and the hon. Member for The rate for black mothers dying during or just after Newcastle upon Tyne North (Catherine McKinnell) for childbirth is five times that of white mothers in the UK; leading it. I confess—I know I am not alone in this—I and black babies have a 121% increased risk of a knew very little about this subject until hearing from stillbirth. It is estimated that for every instance of Five X More , and I am someone with a long-term maternalmortality,thereare100severematernalmorbidities interest in racial inequality, so I thank it sincerely. Many or near misses. Behind every one of these statistics is a hon. Members have spoken powerfully today. I pay story, and behind every one of these mothers who dies particular respect to the courage of the hon. Member is a group of women who had a near miss. for Streatham (Bell Ribeiro-Addy). The report by the Joint Committee on Human Rights, In the UK, almost 800,000 women give birth every which was published last year, highlighted the lack of year. That is 800,000 interactions with their national an NHS target to end this obscene disparity and urged health service, making childbirth the No. 1 reason for the Government to introduce one.I call on the Government engagement with the NHS. For a large proportion of today to rectify that urgently and set ambitious targets women, it is their first adult contact with health services, to address and eliminate these inequalities, including to and maternity care should be a unique opportunity to halve the number of black maternal deaths by 2023. mitigate some of the factors that perpetuate health The 2019 MBRRACE-UK report revealed that almost and social inequalities. I have no doubt that for many all those who died during or after pregnancy had multiple it is, regardless of ethnicity. I also have no doubt that issues such as mental or physical health problems or the vast majority of healthcare workers care deeply were victims of domestic abuse or were living in a about the people they work with. This debate is deprived area. More than half of those who died were more about the system itself and the structural inbuilt overweight or obese. Black women are more likely to inequalities. have conditions that can put them at greater risk, including We are hearing through heartbreaking testimony and cardiac disease, diabetes and high blood pressure. We alarming reports that these inequalities are very much must ask the deeper question of why black and Asian there, putting black mothers and babies at a significantly women are more likely to have those pre-existing health higher risk of maternal and perinatal death. It is worth conditions in the first place. There is no specific genetic repeating again and again that black women are four connection between all black people. Many of these times more likely to die during pregnancy or shortly pre-existing conditions are non-communicable diseases after giving birth than white women. Women from that are driven by social determinants of health, such as mixed-race backgrounds are three times as likely and poverty, education and housing. Women living in the Asian women twice as likely. Most alarming to me is the most deprived areas were three times more likely to fact that this inequality and disparity in maternal die than those living in more affluent areas. Social and newborn health has been highlighted for several services were involved in the lives of 20% of the women years, yet there is still no target to end this. Why on who died. earth not? 165WH Black Maternal Healthcare and 19 APRIL 2021 Black Maternal Healthcare and 166WH Mortality Mortality I want to pay tribute to MBRRACE-UK for the the role of ethnicity and racism in our society—the work that it has done in the confidential inquiry into everyday acts of discrimination, the unconscious and maternal deaths. There is a coldness to research and implicit biases, and the cultural and structural racism statistics that often lets us forget what MBRRACE-UK that we are now being told does not exist. points out: behind each number is a mother, a father, a I do not have the time or expertise to delve deeply baby, a family and a community left devastated by these into this issue, so I am glad that others are speaking events. Five X More has published a comprehensive list about it. One of those is Dr Christine Ekechi, who is the of suggestions for the Government to act on, as many spokesperson for racial equality at the Royal College of hon. Members have noted today. I will note just one: the Obstetricians and Gynaecologists. She said: advice to listen to the voices and experiences of black women. Listen! “it’s important for us to acknowledge that we are still humans, and so there are lots of things that can operate at a conscious Maternity Action notes that a reason for the disparity, level, but there are many things that operate at a subconscious as the hon. Member for Erith and Thamesmead level.” (Abena Oppong-Asare) has noted, is that migrant women Dr Ekechi has suggested that we need more diversity in with insecure status face charges of £7,000 or more for healthcare systems and that healthcare professionals essential NHS maternity care. That will clearly deter should check themselves for whatever biases they may lots of these women from attending for care. Maternity have. I expect the vast majority would want to do that, Action has rightly called for an end to no recourse to public and we should be supporting them. It is one of the funds rules, as others have today. The rules exclude things that we will be looking at on the all-party some migrants from access to top-up payments such as parliamentary group on unconscious bias, because it housing benefit, universal credit, child benefit and other does exist. We should be finding ways to help people critically important benefits. Many working people are unravel their biased thinking, because it has a massive paid so little that they require those top-ups just to survive, impact on people’s lives. but many migrant women with work visas and jobs and others with limited leave to remain do not have the right I want to add to some of what others have said about to what is considered essential for everybody else. the Commission on Race and Ethnic Disparities report. Finally, Maternity Action and others are calling for a Rather than focusing on structural inequalities, it attempted welfare safety net for all pregnant women. I will add to to explain them by talking about economics, geography that by talking about how important universality can and family units. Academics have accused the report of be.In Scotland, there is universal access to free prescriptions, cherry-picking data to reach predetermined conclusions. but even more relevant to this debate is universal access They say it is littered with mistakes and selective quoting, to the baby box. It is not a poor baby’sbox, but a “welcome in an attempt to tell us that to the world” baby box. It is free to all new parents and “the British discourse on race is obsessed with victimhood when it is based on the Finnish model, which has a proven should be celebrating progress.” record of decreasing infant mortality. The box includes That is not surprising, given that the author has already essential items for a baby’s first weeks and months, and said many times in the past that he does not believe it provides a safe space for babies to sleep near their structural inequality exists, but it also chimes with a parents. However, one of the most important aspects of growing trend among Conservative politicians to claim the baby box is that it brings women in touch with that there is no such thing as structural racism in the healthcare workers before and after the baby is born. UK. However, even the Prime Minister now seems to be Those workers can then support the mother and baby. distancing himself from the report, saying recently: Every baby should be born with an equal start in life, “I’m not going to say we agree with every word.” and the SNP Government are exploring even more ways in which the baby box can be used to promote For those who may not know and who may be women’s health and support mental health. I mention watching, if we say the health service is structurally the baby box not to say that Scotland does everything racist, it does not mean that it is populated by racists. It so much better than the rest of UK, but it is something means that the way it is structured is for white people that I would love to see the rest of the UK adopt. It is and that it takes into consideration their needs—culture, not just about health and being in touch with health language, health trends and so forth—with very little services; it is about the psychological impact of the flexibility to take account of anyone else’s. We need to Government telling people, particularly migrants to change the structures and make them more flexible, this country, that their babies are welcome and loved. which is what this debate is calling for. After all, our So much work was done on ensuring that it was not NHS is not a national white person’s health service; it is seen as a poor baby’s box that, in 2019, 47,000 baby supposed to be for everybody equally. boxes were delivered to new parents in Scotland—a This is a moral issue. As Alexandre Dumas wrote: 93% uptake.That is what happens when there is universality. “Moral wounds have this peculiarity—they may be hidden, but As we know, the mortality risk from covid-19 among they never close; always painful, always ready to bleed when ethnic minority groups is twice that for white patients, touched, they remain fresh and open in the heart.” and that is after potential confounding factors such as I will end with the words of Amy Gibbs, the chief age, sex, income, education, housing tenure and area executive of Birthrights: deprivation have been taken into account. A recent report found that black pregnant women are eight times “A lot of black and brown people in the birthing world are more likely to be admitted to hospital with coronavirus, understandably frustrated by calls for more research when what’s and Asian women are four times more likely. There is needed is action.” simply no hiding from this issue. If we are to fully I think she is right. We need to act now. No more understand race and health, we have to fully understand endless research: let us just do something about this. 167WH Black Maternal Healthcare and 19 APRIL 2021 Black Maternal Healthcare and 168WH Mortality Mortality 7.20 pm and it is a missed opportunity that the Commission on Race and Ethnic Disparities chose to sideline that important Marsha De Cordova (Battersea) (Lab): It is a pleasure issue. I hope the Minister will choose to ignore and to serve with you in the Chair, Sir Gary. I am grateful to reject that view. my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) for leading the debate on Black and Asian women, and their partners, regardless behalf of the Petitions Committee. I also congratulate of their socioeconomic status, are not being listened to, the formidable campaigners Tinuke and Clo, the founders not being respected and not being cared for. When they of the Five X More campaign, who got the petition voice pain or concern during pregnancy or childbirth, debate in Parliament today. The petition received more they are branded as “aggressive” or “angry”, while than 180,000 signatures. It is not before time that such a dangerous stereotypes about “strong black women” huge injustice is finally receiving the attention it deserves. mean that black women are often not offered the same treatment as white women. We have heard some powerful contributions from right hon. and hon. Members this evening, including It is outrageous that racist myths about black women my right hon. and learned Friend the Member for having higher pain thresholds than other women continue Camberwell and Peckham (Ms Harman), the Chair of to affect their treatment. Meanwhile, the lack of cultural the Joint Committee on Human Rights. Just last year, competency in medical training means that complications the Committee published its report “Black People, Racism experienced by black women are not spotted early enough. and Human Rights”, which contains shocking findings, For example, black women have shared accounts of particularly that the care that many black people receive how their anaemia was not picked up soon enough is unequal to what is given to white people. I urge the because of the colour of their skin. Minister to accept all the recommendations of that So I ask the Minister what action she is taking to report. tackle structural racism and to build trust in maternity My hon. Friend the Member for Edmonton services for black, Asian and ethnic minority mothers (Kate Osamor) highlighted, as others have done, the and their partners and for healthcare professionals, choice made in the report of the Commission on Race including midwives, as many have shared their experiences and Ethnic Disparities to sideline the institutional and of occupational discrimination, as was highlighted in structural racism that exists across society, but more so the Public Health England report last year. I would in the health service. My hon. Friend the Member for really like the Minister to address this issue. Additionally, Streatham (Bell Ribeiro-Addy) made a powerful cultural competency and unconscious bias training is contribution sharing her lived experience. I thank her an essential part of ending these inequalities, so will she for doing so, but also for her tireless campaigning on commit to improving training in the health service and the issue. She has been brave, and I thank her for that. in medical schools? More importantly, my hon. Friend the Member for We are all aware of the importance of data, which as Vauxhall (Florence Eshalomi) highlighted some of the we have heard is central to closing the maternal mortality issues related to underlying health conditions in her gap. Many mothers and medical professionals have own experience of being diagnosed with fibroids and shared accounts of how pregnant women are recorded also of being a sickle cell carrier. I also urge the Minister as being white if they do not disclose their ethnicity, to listen to my hon. Friend the Member for Luton meaning that it is difficult to track complications.Therefore, North (Sarah Owen), to give 20 minutes of her time to the recording of data is essential, so will the Minister her and her constituent and to hear their experiences. commit to ensuring that all maternity services record I also want to mention the contribution of my hon. the specific ethnicity of all mothers? Friend the Member for Dulwich and West Norwood It is clear that fatalities are just the tip of the iceberg, (Helen Hayes), who highlighted the fact that we need to with many women speaking of the near-misses and focus more on issues relating to research. Unless we do poor treatment they have experienced. I have heard the work, we will not move forward and bring an end to from many medical professionals that data on near-misses this crisis. could easily be made available, but it is not being. Will As we have heard, it is absolutely shameful that black the Minister therefore commit to collecting and publishing women continue to be four times more likely to die in data on maternal near-misses by ethnicity, and, if so, childbirth and pregnancy than white women. That can she set a timeline for that commitment, with some inequality has existed for decades, with little action clear milestones? being taken to address it. [Interruption.] Midwives consider the continuity-of-care model as a way to help bridge some of these inequalities. A 2016 Sir Gary Streeter (in the Chair): Order. Does any study found that women who see the same midwife Member present have to go to vote physically, or is throughout their pregnancy are 16% less likely to lose everyone on a proxy vote? If everyone is happy, let us their baby. The NHS standard contract for 2019-20 continue. stipulated that 35% of women will be booked on to a continuity-of-care pathway by March 2020. Can the Marsha De Cordova: Last week I met campaigners, Minister confirm whether that target was met? Can she obstetricians, midwives and black, Asian and ethnic also say what is being done to meet that target in the minority women with lived experience of maternal health NHS long-term plan, which aims to provide continuity complications. They were very clear that socioeconomic of care for 75% of black, Asian and ethnic minority determinants such as income, housing and occupation women by 2024? and comorbidities only partially explain the inequalities Before I close, I want to mention how the hostile affecting black maternal health. It is absolutely clear environment is exacerbating this problem, as mentioned that structural racism is a driver of disparities in treatment, by my hon. Friends the Members for Erith and 169WH Black Maternal Healthcare and 19 APRIL 2021 Black Maternal Healthcare and 170WH Mortality Mortality Thamesmead (Abena Oppong-Asare) and for Dulwich learned Member for Camberwell and Peckham and West Norwood. Charging for maternity services and (Ms Harman). We need to fundamentally understand no recourse to public funds conditionality mean that why this issue occurs and why we have these disparities. many women are either becoming indebted as a result The statistics tell only part of the story: the lived of their pregnancy or are turning away from health experiences of black women need to be understood, services all together for fear of being reported to the appreciated and heard for us to really gain an understanding Home Office.Many women subject to charging are destitute of the full picture. I think it was the hon. Member for and unable to pay, and three of the 209 women whose Liverpool, Riverside (Kim Johnson) who read out some deaths were investigated in the 2019 MBRRACE-UK of the reasons for these disparities that are given in the report were affected by charging for NHS maternity report. As we know, and as we could tell from that care. Does the Minister agree that charging women for report and from the list that she read, which was just the maternity care is cruel and dangerous during this pandemic? tip of the iceberg, the reasons are incredibly complex. I want to make it clear that black maternal health and That is why, last month, I announced that the mortality is an avoidable inequality, and it is scandalous Government are embarking on the first women’s health that the Government have not yet set a target to end this strategy for England. That strategy is, first and foremost, injustice in the NHS long-term plan, so will the Minister about listening to women’s voices. The call for evidence commit to doing so today? The NHS long-term plan that launched on International Women’s Day seeks to sets many targets for other issues, so why not for black understand women’s experience of the health and care maternal health? system, and we have already seen an incredible response Let me be absolutely clear that a Labour Government to it. Many thousands of women across the country would be committed to ending the crisis in black maternal have come forward to share their experiences through health and mortality, and that the Government must the online survey, which takes just a few minutes to take urgent action now. We need a national strategy to complete, so I will unashamedly make another call in tackle health inequalities as a matter of urgency, which this debate for any woman who has not yet completed must include a target and a commitment to end the the online survey to do so. mortality gap between black, Asian and ethnic minority However, women from black and other ethnic minority women and white women and to tackle structural racism groups are under-represented in the responses we have once and for all, not deny its existence. We cannot received so far, and today’s debate has reiterated just afford for this not to be a priority. how important it is to ensure that the health and care system is listening to women of all backgrounds. I 7.30 pm encourage any woman listening to this debate, and in The Minister for Patient Safety, Suicide Prevention particular women from black and ethnic minority groups, and Mental Health (Ms Nadine Dorries): I thank all to come forward and have their voice heard. By better Members of the House who have taken the time to understanding women’s experiences, we can ensure that attend and speak in today’s debate, and particularly the health system truly meets the needs of women as the hon. Member for Newcastle upon Tyne North they should be met. The complaint that women’s voices (Catherine McKinnell) for having secured the debate. are not heard—that women are not listened to and are Along with everyone else, I also thank the co-founders spoken down to in the healthcare sector—is a common of the Five X More campaign, Clo and Tinuke, for their one across the board from women, and was highlighted incredible work. Their petition to Parliament has generated in Baroness Cumberlege’s recent “First Do No Harm” a huge amount of interest and support, and their work report. to improve maternity mortality rates and healthcare Disparities in maternal mortality rates among women outcomes for black British women is inspiring and from different ethnic groups have been well documented brings this deeply important issue the attention it deserves. for many years. The numbers are just not acceptable, Every woman deserves to have safe care, to feel that and the Government are committed to reducing those her voice has been heard and to be an informed decision inequalities. The charity Five X More has campaigned maker in her own care. The NHS is one of the safest to make the NHS commit to a target to reduce inequalities places in the world to have a baby. Few women in the and close the current gap in maternal mortalities. There UK die during childbirth. Between 2016 and 2018, are considerable limitations on producing an England-level 217 out of 2.2 million women died during, or up to indicator of maternal mortality by ethnicity. Many six weeks after, pregnancy from causes associated with Members raised that point. The fact is that maternal their pregnancy. That equates to 9.7 maternal deaths deaths are rare, even among women from black ethnic per 100,000 pregnancies. We also know from the groups. Because of the very low numbers, even a large MBRRACE-UK maternal mortality reports that some reduction in mortality rates for a particular ethnic of these deaths could have been prevented. Sadly,evidence group would not necessarily be attributable to a genuine shows that, currently, there remains a more than fourfold improvement in the quality of care. difference between maternal mortality rates among women from black ethnic backgrounds and among white women Marsha De Cordova: The issue is that there is a need in England. There also remains an almost twofold for a target. When a target is set, work can take place difference between women from Asian ethnic backgrounds towards a reduction. The Minister says it might be and white women. Those disparities are worrying and difficult to record the figures by ethnicity. Could she must be addressed, and I have heard all of the calls to explain why it would be difficult? do that today. However, let me address the points that have been Ms Dorries: I will go further and explain what we are raised by speakers today—many of which have been hoping to do to make a difference. We know that for raised repeatedly—beginning with the right hon. and every woman who dies, 100 women have a severe pregnancy 171WH Black Maternal Healthcare and 19 APRIL 2021 Black Maternal Healthcare and 172WH Mortality Mortality [Ms Dorries] we need to do the research on the near misses, to understand what the problems are. We cannot set targets complication or a near miss. That has been mentioned a until we know what we are trying to achieve through number of times. When that woman survives, she will those targets and what we need to address. Five X More often have long-term health problems. Disparities in the has asked for that research to be done. It needs to be number of women experiencing a near miss also exist done, and it will be done. between women from different ethnic groups. Because We are committed to reducing inequalities and to near misses are more common than maternal deaths, we improving outcomes for black women—we work at that can investigate those disparities at local and regional daily. I established the maternity inequalities oversight level, to better understand the reasons for disparity, to forum to focus on inequalities so that we in Government assess local variation and to identify areas with less understand what the problems are. The forum also disparity and, hence, best practice. brings together experts from across the UK—we have met MBRRACE-UK and Maternity Voices—who have Wera Hobhouse: Is it not clear from everything we done their own research and studied this problem, to hear that black women and women from ethnic minorities hear their findings and recommendations. Professor feel that the health system does not communicate Jacqueline Dunkley-Bent, the chief midwifery officer appropriately, so they do not understand all the choices for England, is leading the work to understand why available to them? Is that not a way of getting to the mortality rates are higher, to consider the evidence on bottom of what is going wrong? reducing mortality rates, and to take action to improve Ms Dorries: That is certainly one of the many issues the outcomes for mothers and their babies. highlighted in the report, but it is not the only one. We NHS England is working with a range of national have commissioned the policy research unit in maternal partners, led by Jacqueline Dunkley-Bent and the national and neonatal health and care at the University of Oxford speciality adviser for obstetrics, to develop an equity to undertake research into the disparities in the near strategy that will focus on black, Asian and mixed-race misses, and to develop an English maternal morbidity women and their babies, and on those living in the most outcome indicator. The research will explore whether deprived areas. The Cabinet Office Race Disparity Unit the indicator is sufficiently sensitive to detect whether has also supported the Department of Health and the changes made to clinical care are resulting in better Social Care in driving positive actions through a number health outcomes. Five X More called for that in its list of interventions on maternity mortality from an equalities of 10 requests. perspective. The Royal College of Obstetricians and We are putting the research in. We have found a way Gynaecologists has established— to look at the research in order to make the differences that need to be made. We can do that by examining the Sir Gary Streeter (in the Chair): Order. Will the near misses. What happened in those cases and in those Minister kindly leave two minutes for Catherine McKinnell women’s experiences? What went wrong? Do the women at the very end? feel that they were not listened to? Was it a matter of treatment? Was it a lack of understanding? We need to Ms Dorries: I will end there, but if any hon. Members understand that by looking at the near misses. The wish to speak with me about the work we are doing and research is being undertaken, but it will take some time. the research we have undertaken with Oxford University, Hopefully, when that is reported, we will be able to we are happy to share more. I say in response to the make progress on the issue of setting targets. hon. Member for Luton North (Sarah Owen) that very This Government are no strangers to setting targets. few personal meetings have taken place, but I would be On the very sad issue of baby loss, we set a target to happy to meet her and her constituent. reduce neonatal stillbirth and neonatal mortality rates by 20% by 2020. We have reached almost 25%. We have Sir Gary Streeter (in the Chair): Thank you very smashed that target and are still pushing forward to much, Minister. It is very important that Catherine improve that situation even more. We are not afraid of McKinnell has the final word. setting targets, but when we are setting them we have to know how to achieve better outcomes. The hon. Member for Battersea (Marsha De Cordova) mentioned continuity 7.43 pm of carer. She is absolutely right about those figures. We know that continuity of carer works incredibly well, Catherine McKinnell [V]: Thank you, Sir Gary. I particularly for black women and women from ethnic thank the Minister for her response, and everybody minorities. Having the same midwife throughout the who has contributed to the debate, which has been very process of pregnancy makes a huge difference. That is moving and powerful, and also very painful. I thank in being rolled out across the country. I am sure that the particular my hon. Friend the Member for Streatham hon. Lady has spoken to the chief midwifery officer, (Bell Ribeiro-Addy) for sharing such a powerful personal who is a huge supporter of the policy. We are continuing story. to roll it out and make progress with it. It has been I hope that the debate has helped to raise awareness slightly more difficult during the 12 months of the covid and understanding of why the issue must be urgently pandemic, particularly because many trusts did not addressed, and I hope that we have done justice to the continue with home births. passionate and powerful campaigning of Clo and Tinuke. We are not afraid of setting targets, however. Setting I know that they and we all want to see change, so I targets in maternity units is what we are about, to make hope that the Government and NHS leaders have heard them safer places in which to give birth and in order to that call today. I urge the Minister to meet those who reduce both neonatal and maternal mortality rates, but are affected, to continue to listen and to ensure that 173WH Black Maternal Healthcare and 19 APRIL 2021 Black Maternal Healthcare and 174WH Mortality Mortality data continues to be collected and that changes are That this House has considered e-petition 301079, relating to made to put an end to the five times more statistic for Black maternal healthcare and mortality. good. Question put and agreed to. 7.44 pm Resolved, Sitting adjourned.

19WS Written Statements 19 APRIL 2021 Written Statements 20WS

It is an important point of principle that Government Written Statements do not step in to pay compensation in respect of failed financial services firms that fall outside the FSCS. Doing Monday 19 April 2021 so would create the wrong set of incentives for individuals and an unnecessary burden on the taxpayer. However, the situation regarding LCF is unique and exceptional. After considering the issues in detail, the Government TREASURY have decided to establish a compensation scheme for LCF bondholders. The scheme I am announcing today appropriately balances the interests of both bondholders Contingencies Fund Advance and the taxpayer and will ensure that all LCF bondholders receive a fair level of compensation in respect of the financial loss they have suffered. The Financial Secretary to the Treasury (Jesse Norman): LCF’s business model was highly unusual, both in its Her Majesty’s Revenue and Customs will incur new scale and structure. In particular, it was authorised by expenditure in connection with the Government’sresponse the FCA despite generating no income from regulated to the covid-19 pandemic in 2021-22. activities. This allowed LCF’s unregulated activity of Parliamentary approval for additional resources of selling mini-bonds to benefit from the “halo effect” of £6,065,000,000 for this new expenditure will be sought being issued by an authorised firm, helping LCF gain in a main estimate for Her Majesty’s Revenue and respectability and grow to an unprecedented scale before Customs. Pending that approval, urgent expenditure it failed, resulting in losses for thousands of bondholders. estimated at £6,065,000,000 will be met by repayable A complex range of interconnected factors contributed cash advances from the Contingencies Fund. to the scale of losses for LCF bondholders. Clearly Further requests to the Contingencies Fund may be individuals have responsibility for choosing investments made as necessary to fund covid-19 activity delivered by that are suitable for their risk profile. The high interest Her Majesty’s Revenue and Customs. rates on offer from LCF, particularly when compared [HCWS921] with deposit accounts, should have prompted questions from potential bondholders about the risks. While some may have understood those risks and invested anyway, London Capital & Finance LCF’s disclosure materials and marketing strategy may have led others to believe they were investing in a product that was far safer than it was. The Economic Secretary to the Treasury (John Glen): Bondholders have reported LCF using a range of On 17 December 2020, I announced that the Treasury dishonest tactics to persuade them to invest. For example, would set up a compensation scheme for bondholders some novice investors have said they were encouraged who suffered losses after investing in London Capital & [1] to declare themselves to be sophisticated and experienced, Finance (LCF) (HCWS678) . This statement provides thereby enabling them to access products that should an update on the Government’s approach, including the have been out of reach. Furthermore, LCF appears to details of the scheme and the next steps for bondholders. have adopted flawed investment and marketing strategies LCF was a Financial Conduct Authority (FCA) and paid high commissions of up to 25% to the sales authorised firm which issued unregulated non-transferable agent. debt securities, commonly known as “mini-bonds”, to investors and then speculatively invested the funds received Bondholders have been badly let down by LCF, but in a number of underlying businesses. LCF went into they have also been let down by the regulatory system that is designed to protect them. The independent administration in January 2019 and at the point of [2] failure 11,625 bondholders had invested around investigation led by Dame Elizabeth Gloster , which £237 million. the Government published at the end of last year, concluded that the FCA did not discharge its functions This has been a very difficult time for LCF bondholders, in respect of LCF in a manner which enabled it to many of whom are elderly and have lost their hard-earned effectively fulfil its statutory objectives during the relevant savings. As I noted in my last statement, for some, this period. will have formed part of an investment portfolio, but for others, it will have represented a significant portion While I have not seen evidence that would indicate of their savings. that the regulatory failings at the FCA were the primary cause of the losses incurred by LCF bondholders, they One of the key purposes of regulation is to ensure are a significant factor that the Government have taken that investors have the right information to understand into account when deciding to establish this scheme. their risk. Within this system even a regulator doing Indeed, the Government do not ordinarily step in to everything right will not be able to, and should not be pay compensation to consumers in relation to allegations expected to, ensure a zero-failure regime. That is why of fraud, investment losses, mis-selling or mis-buying of statute has established the Financial Services Compensation investments. I would, however, like to make it clear that Scheme (FSCS), which is the compensation scheme for neither the Government nor the FCA accept any legal customers of failed financial services firms in the UK. liability for the failure of LCF or the losses incurred by Its scope is strictly limited and it is only able to pay out its bondholders. when a relevant regulated activity has been undertaken. The FSCS has considered LCF claims in detail and has In these extraordinary circumstances, the Government been able to protect around 2,800 bondholders, paying have decided to establish a compensation scheme. However, out over £57 million in compensation. it is imperative to avoid creating the misconception that 21WS Written Statements 19 APRIL 2021 Written Statements 22WS

Government will stand behind bad investments in future, [1] A link to the previous WMS can be found via: even where FSCS protection does not apply. That would https://www.parliament.uk/written-statements/detail/ create a moral hazard for investors and potentially lead 2020-12-17/HCWS678. individuals to choose unsuitable investments, thinking [2] The full report can be found at: the Government will provide compensation if things go https://www.gov.uk/assets.publishing.service/ wrong. The ultimate responsibility for choosing suitable government/uploads/system/attachmentdata/file/ investments must remain with individuals. 945247/GlosterReportFinal.pdf. To avoid creating this misconception, and to take [HCWS922] into account the wide range of factors that contributed to the losses that Government would not ordinarily compensate for, the Government will establish a scheme UK Listings Review: Government Response that provides 80% of LCF bondholders’initial investment up to a maximum of £68,000. Where bondholders have received interest payments from LCF or distributions The Chancellor of the Exchequer (Rishi Sunak): In from the administrators, Smith & Williamson, these will November last year, I asked Lord Hill of Oareford CBE be deducted from the amount of compensation payable. to carry out an independent review of the UK’s listing The scheme will be available to all LCF bondholders arrangements.Strong public markets are a vital component who have not already received compensation from the FSCS of the UK economy and the Government are committed and represents 80% of the compensation they would to ensuring that the UK’s markets are as competitive as have received had they been eligible for FSCS protection. possible, and to supporting the many different companies Around 97% of all LCF bondholders invested less that use markets to raise capital, including technology than £85,000 and therefore will not reach the compensation firms as mentioned in Lord Hill’s report. cap under either the Government scheme or the FSCS. At Budget last month, Lord Hill published his UK The Government expect to pay out around £120 million listing review1. It made 14 recommendations. Today, I in compensation in total and the scheme to have paid all am pleased to set out how the Government intend to bondholders within six months of securing the necessary take forward each of the recommendations made. primary legislation, which the Government will bring Seven of the recommendations are directed towards forward as soon as parliamentary time allows. the Financial Conduct Authority (FCA), our independent Bondholders do not need to do anything at this stage regulator. As the FCA set out in its public response on and Government will provide further details on how the 3 March, it welcomes the report and intends to consider scheme will operate in due course. The scheme will be all the relevant recommendations carefully, including simple and straightforward to navigate. Bondholders on free float, dual class share structures, and special will not need to use a claims management company, purpose acquisition companies (SPACs). It has committed solicitor or any other organisation to help them claim. to acting quickly where appropriate,including by publishing a consultation by the summer, and a specific consultation I am mindful that some individuals may be anxious on SPACs before that. to receive their compensation and I urge bondholders to be vigilant to the risk of scammers posing as services Six key recommendations are directed towards HM to help them claim. To reiterate, the scheme has not Treasury (HMT), and I outline how we will be taking opened yet and bondholders should await further forward each recommendation, in turn, below. announcements from the Government on next steps. First, I agree to present an annual “State of the City” report to Parliament (recommendation 1). I am grateful One of the challenges highlighted by Dame Elizabeth for the suggestions provided as to what this report Gloster’s report is that, despite exhibiting many of the could cover, and I believe this would benefit the UK’s characteristics of other regulated financial services activities, capital markets. I will present the first of these reports the issuance of mini-bonds is not currently a regulated in 2022. activity. The Government are committed to ensuring the financial services sector is well regulated and consumers Lord Hill recommended that HMT considers an are adequately protected, and the Treasury is therefore additional “growth” or “competitiveness” objective for today launching a consultation on proposals to bring the FCA, as part of the future regulatory framework the issuance of mini-bonds into FCA regulation. This (FRF) review (recommendation 2). The first consultation consultation is the culmination of a review into the on the FRF review closed on 19 February. This review regulation of mini-bonds that I announced in May 2019 seeks to ensure the UK’s regulatory framework is fit for and delivers on one of the recommendations made in our future outside the EU and the first consultation Dame Elizabeth Gloster’s report. welcomed stakeholder views on the current set of statutory objectives. It also sought views on the future overall In addition, the FCA is continuing its work to address accountability framework for the FCA (and PRA). The the recommendations in Dame Elizabeth Gloster’s report, Government are currently considering the 120 stakeholder including through its ongoing transformation programme. responses received in relation to this consultation and A number of important steps have already been taken will use these to inform a second consultation later this and I welcome the FCA’s commitment to report publicly year. I will carefully consider this recommendation as on the progress of these vital reforms. part of that process. Finally, I wish to reiterate my sympathy for LCF Three of the recommendations, on reviewing the UK’s bondholders. I hope the compensation offered by the prospectusregime(recommendation7),consideringwhether Government scheme will offer some relief to the distress prospectuses drawn up under other jurisdictions’ rules and hardship suffered and provide closure on this difficult can be used to facilitate secondary listings in the UK matter. (recommendation 8) and facilitating the provision of 23WS Written Statements 19 APRIL 2021 Written Statements 24WS forward-looking information by issuers in prospectuses around seven strategic outcomes where we expect to see (recommendation 9), all deal with the UK’s prospectus progress over the five year duration of the NAP. regime. Again, I strongly welcome this, and agree we The progress report will be published on www.gov.uk. need to consider reforms to ensure these documents are Copies will be placed in the Libraries of both Houses. fit for purpose. I can confirm that the Government will [HCWS920] bring forward a public consultation on the UK’sprospectus regime later this year. Lord Hill also raised the issue of improving the efficiency of further capital raising by listed companies HEALTH AND SOCIAL CARE (recommendation 13). This is a highly technical area, and I agree that bringing together expertise specifically Non-devolved Provisions of the Coronavirus Act 2020: on this issue will be helpful to consider what more can One Year Report be done to improve capital raising processes and I am happy to help convene such a group. My officials will be considering what form this will take over the coming weeks. The Parliamentary Under-Secretary of State for Health One of the recommendations, concerning how and Social Care (Jo Churchill): On 22 March 2021, the technology can be used to improve retail investor One-Year Status Report on the non-devolved provisions involvement in corporate actions and their undertaking in the Act was laid in Parliament. The report provided a of an appropriate stewardship role, is directed towards thorough assessment of whether the provisions within the Department for Business, Energy and Industrial the Act remained necessary and proportionate to support Strategy (BEIS). As such, this recommendation will be the response to the pandemic. taken forward by BEIS as part of its wider consideration The report highlighted an intention to expire of the findings from the Law Commission’s recent 12 provisions and suspend a further three. The cautious scoping study on intermediated securities. BEIS expects expiration and suspension of these provisions reflects to announce a response to the study later this year. the progress made in tackling the pandemic. Progress Finally, Lord Hill concluded by drawing the along the roadmap and continued success with the Government’s attention to other issues raised with the vaccine rollout, show we are moving in the right direction review illustrating how the wider financial ecosystem towards the national recovery. may impact UK listings. I would like to thank Lord Hill for bringing these issues to my attention. Following the publication of the One-Year Status Report, the Government identified that it contained a I would like to conclude by again thanking Lord Hill factual error. This relates to text on pages 14, 30 and for his work, and I look forward to taking forward his 31 of the report, regarding section 24 of the Act, which recommendations. covers Home Office responsibilities relating to the retention 1 https://www.gov.uk/government/publications/uk-listings-review of biometrics—fingerprints and DNA profiles—that [HCWS919] are being retained for national security purposes. I would like to apologise and address the error. The report, laid in Parliament last month, stated that FOREIGN, COMMONWEALTH AND the regulations made under section 24 would expire in DEVELOPMENT OFFICE March 2021. However, it emerged that the second regulations made under this power,Coronavirus (Retention Women Peace and Security: Annual Report 2020 of Fingerprints and DNA Profiles in the Interests of National Security) (No. 2) Regulations 2020, are extant The Minister for the Middle East and North Africa and will continue to have effect until 24 September (James Cleverly): I wish to inform the House that the 2021. This does not affect the substance of the report Foreign, Commonwealth and Development Office,together because the Government will shortly bring forward with the Ministry of Defence, are today publishing the regulations to expire section 24, alongside other provisions 2020 annual report on progress against the UK’s fourth set out in the One-Year Report. National Action Plan on Women, Peace and Security. We have taken the appropriate steps to rectify this Published on 18 January 2018, the National Action error, and the corrections can be found at the end of Plan (NAP) sets out the Government’s objectives on the this statement. An un-numbered Command paper will Women, Peace and Security agenda for the period 2018- be laid before Parliament and published today setting 2022. This is the UK Government strategy for how we out the changes. The published One-Year Report will will meet our Women, Peace and Security commitments also be updated on www.gov.uk to reflect those changes. under UN Security Council Resolution 1325 to reduce Since gaining Royal Assent on 25 March 2020, the the impact of conflict on women and girls and to Coronavirus Act has been an essential legislative tool in promote their inclusion in conflict resolution and in the Government response, enabling effective action to building peace and security. reduce the impact of the pandemic. The Government The report published today outlines our progress remain committed to keeping the powers in the Act against the National Action Plan over the last 12 months, under review and to retaining powers only where they including our work in our nine focus countries of continue to be necessary and proportionate. Afghanistan, the Democratic Republic of Congo, Iraq, This table highlights the changes made to the One-Year Libya, Myanmar, Nigeria, South Sudan, Somalia and Report. The bold text represents additional text in the Syria, and Yemen as a priority country. It is centred report compared to the previous version. 25WS Written Statements 19 APRIL 2021 Written Statements 26WS

Amendments to the One-Year Report Page Revised Text Original Text p.14 Section 24 (applies to UK): Extension of time limits for retention of fingerprints Section 24 (applies to UK): Extension of and DNA profiles. time limits for retention of fingerprints and This provision established a regulation-making power so that biometrics DNA profiles. (fingerprints and DNA profiles) held for national security purposes could be This provision established a regulation- retained for up to an additional six months beyond normal statutory retention making power so that biometrics deadlines (with the possibility of a further six month extension; enabling retention (fingerprints and DNA profiles) held for for up to a maximum of 12 months). This provision has successfully mitigated the national security purposes can be retained risk of a critical national security capability being compromised because of the for up to an additional six months beyond pandemic, including the risk of losing the biometrics of up to 150 individuals normal statutory retention deadlines. This per month (many of whom could be subjects of national security interest). provision has successfully mitigated the risk However, this power was exercisable only in relation to biometrics that would of a critical national security capability (ignoring the effect of regulations made under it) need to be destroyed within 12 being compromised because of the months of the Act being passed. Regulations have been made to cover this pandemic, including the risk of losing the 12-month period. A further extension beyond the second set of regulations made biometrics of up to 150 individuals per under this power was not necessary and therefore section 24 will be expired as part month (many of whom could be subjects of of the one-year review as it has served its original purpose. The second set of national security interest). However, this regulations made under this power - the Coronavirus (Retention of Fingerprints and power cannot be extended beyond the point DNA Profiles in the interests of National Security) (No 2) Regulations 2020 -will the Regulations expire in March without be saved as they provide the current basis for retention of certain biometrics held in primary legislation and therefore it will be the interest of national security that [would otherwise would have fallen to be expired as part of the one-year review as it destroyed between 1 October 2020 and 24 March 2021]. has served its original purpose. p.30 Counter-Terrorism Policing has confirmed that a further extension beyond that As the regulations under these provisions provided by the Coronavirus (Retention of Fingerprints and DNA Profiles in the have expired, and cannot be extended under Interests of National Security) (No 2) Regulations 2020 is not necessary and the Act, the decision has been made to therefore a decision has been made to expire this provision. expire these provisions as part of the one- year review. p.30-31 This provision established a regulation-making power so that biometrics This provision established a regulation- (fingerprints and DNA profiles) held for national security purposes could be making power so that biometrics retained for up to an additional six months beyond normal statutory retention (fingerprints and DNA profiles) held for deadlines (with the possibility of a further extension of up 31 to six months - for a national security purposes could be total extension of up to 12 months). This power could only be exercised in relation retained for up to an additional six months to biometrics that would (ignoring the effect of regulations made under it) need to beyond normal statutory retention be destroyed within 12 months of the Act being passed. deadlines. A further extension beyond the Coronavirus (Retention of extend these under the The Regulations laid under this power have Act. Fingerprints and DNA Profiles in the interests of National Therefore, if the now expired, and there is no legislative powers were p.31 Security) (No 2) Regulations 2020 was not necessary and needed means to extend these under the Act. in the future primary therefore this section will be expired under the UK-wide SI Therefore, if the powers were needed in the legislation would be required, which will be laid after Easter recess. As such, the future primary legislation would be powers will be expired under the UK wide SI which will be laid after Easter required. As such, the powers will be expire recess. under the UK wide SI which will be laid after Easter recess.

[HCWS923] 7P Petitions 19 APRIL 2021 Petitions 8P

year in the form of £140 rebates taken directly off Petition electricity bills. The Government are expanding the Warm Home Discount to around three million homes Monday 19 April 2021 to provide £150 a year off electricity bills, representing £1.9 billion of extra support for households in fuel OBSERVATIONS poverty. In recognition of the fact that families should not have to bear all of the VAT costs they incur to meet TREASURY their needs, domestic energy such as gas and electricity Reduction in VAT for home energy bills is already subject to the reduced rate of 5% of VAT. Going further would impose significant additional The petition of residents of the constituency of Glasgow pressure on the public finances, to which VAT makes a East, significant contribution. VAT raised around £130 billion Declares that there is widespread public support and in 2019-20, and helps to fund key spending priorities acknowledgement of the need for countries across the including on health, schools, and defence. Any loss UK to lockdown to suppress the spread of coronavirus; in tax revenue would have to be balanced by a reduction notes that in doing so many constituents are experiencing in public spending, increased borrowing or increased greatly increased energy costs as a result of staying at taxation elsewhere. home; and declares that people should not have to bare Moreover, this request to lower the rate further should unfairly the financial burden of complying with stay-at- be viewed in the context of over £50 billion of requests home guidance in the height of a pandemic and during for relief from VAT received since the EU referendum. cold winter weather when energy bills are typically Again, such costs would have to be balanced by increased higher. taxes elsewhere, or reductions in Government spending. The petitioners therefore request that the House of Therefore, while all taxes are kept under review, there Commons urge the Government to bring forward measures are currently no plans to change the VAT treatment of to temporarily reduce VAT liability for home energy domestic energy. bills. To keep costs down for families, the Government And the petitioners remain, etc.—[Presented by David have extended the energy price cap until the end of Linden, Official Report, 19 January 2021; Vol. 687, 2021, ensuring 15 million British households are still c. 918.] protected from being overcharged, saving them between [P002644] £75 and £100 a year each on dual fuel bills. Observations from The Financial Secretary to the Treasury Under plans announced as part of the Energy White (Jesse Norman): Paper, the Government will be introducing new measures to prevent companies from taking customers’ loyalty The Government thank the hon. Member for Glasgow for granted. It will be introducing opt-in switching, East (David Linden) for submitting the petition on where consumers are offered a simple method of switching behalf of his constituents about temporarily reducing to a cheaper tariff if their initial contract has ended, VAT liability for home energy bills. and they are testing opt-out switching, where, unless The Government are committed to tackling fuel poverty. they choose not to be, consumers are automatically Energy efficiency is the most sustainable long term switched to a competitive new contract if their initial solution to fuel poverty. contract has ended. The current Energy Company Obligation (ECO) has Winter Fuel Payments provide every pensioner household installed 2.8 million energy efficiency and heat measures across Britain with between £100 and £300 towards in over 2.1 million homes, saving households up to £300 their fuel bills over the winter,and Cold Weather Payments each on their energy bills.The Government have announced provide vulnerable households on qualifying benefits that ECO will be extended to 2026 and increase in value with financial support when the weather has been, or from £640 million to £1 billion a year. is forecasted to be, unusually cold. A sum of £25 is While the Government are working to upgrade the available for eligible households for each seven day energy efficiency of homes, the Warm Home Discount period of very cold weather between 1 November and supports over two million low income households each 31 March.

ORAL ANSWERS

Monday 19 April 2021

Col. No. Col. No. HOUSING, COMMUNITIES AND LOCAL HOUSING, COMMUNITIES AND LOCAL GOVERNMENT...... 635 GOVERNMENT—continued Covid-19: Hospitality Venues and High Streets...... 640 Local Infrastructure Investment...... 645 Covid-19: Support for Local Authorities...... 647 Net Zero Emissions: National Target...... 640 Energy-efficient House Building ...... 644 Shared Prosperity Fund/Levelling-up Fund: Fire Safety: Buildings under 18 Metres ...... 635 Devolved Administrations ...... 639 Houses in Multiple Occupation...... 647 Social Housing...... 642 Housing Market: First-time Buyers ...... 637 Topical Questions ...... 648 Levelling-up Fund...... 643 UK Shared Prosperity Fund ...... 636 WRITTEN STATEMENTS

Monday 19 April 2021

Col. No. Col. No. FOREIGN, COMMONWEALTH AND TREASURY ...... 19WS DEVELOPMENT OFFICE...... 23WS Contingencies Fund Advance ...... 19WS Women Peace and Security: Annual Report 2020... 23WS London Capital & Finance ...... 19WS UK Listings Review: Government Response...... 22WS HEALTH AND SOCIAL CARE...... 24WS Non-devolved Provisions of the Coronavirus Act 2020: One Year Report...... 24WS PETITION

Monday 19 April 2021

Col. No. TREASURY ...... 7P Reduction in VAT for home energy bills...... 7P No proofs can be supplied. Corrections that Members suggest for the Bound Volume should be clearly marked on a copy of the daily Hansard - not telephoned - and must be received in the Editor’s Room, House of Commons,

not later than Monday 26 April 2021

STRICT ADHERENCE TO THIS ARRANGEMENT GREATLY FACILITATES THE PROMPT PUBLICATION OF BOUND VOLUMES

Members may obtain excerpts of their speeches from the Official Report (within one month from the date of publication), by applying to the Editor of the Official Report, House of Commons. Volume 692 Monday No. 202 19 April 2021

CONTENTS

Monday 19 April 2021

Oral Answers to Questions [Col. 635] [see index inside back page] Secretary of State for Housing, Communities and Local Government

Covid-19 Update [Col. 655] Statement—(Matt Hancock)

European Football Proposal [Col. 676] Statement—(Oliver Dowden)

Finance (No. 2) Bill: (Freeports (Stamps Duty Land Tax)) (Ways and Means) [Col. 689] Motion—(Jesse Norman)—agreed to

Finance (No. 2) Bill [Col. 692] Considered in Committee

Gender Pension Gap [Col. 807] Debate on motion for Adjournment

Westminster Hall Trespass [Col. 125WH] Black Maternal Healthcare and Mortality [Col. 149WH] General Debates

Written Statements [Col. 19WS]

Petition [Col. 7P] Observations

Written Answers to Questions [The written answers can now be found at http://www.parliament.uk/writtenanswers]