Royal Bank of Scotland Branch Closures

Jim Shannon Excerpts

Tuesday 14th May 2024 Westminster Hall

[Deidre Brock]

I absolutely agree, and I will be making those points in my speech. The hon. Lady’s example perfectly illustrates exactly why branches need to remain open, and banks must be encouraged to do that.

These further closures from RBS are a particular disappointment, because that once-proud Scottish brand, which is now a subsidiary of NatWest, can trace its origins to Edinburgh in 1727, at the time of the Scottish enlightenment. It is credited with providing the world’s first overdraft—a mixed blessing, perhaps—and it created a wide branch network as part of Scotland’s successful and stable multi-bank system. Times may have changed, but the move towards more centralised control of banking does not seem like progress to me. For RBS to soon have just three city centre branches in Edinburgh is a sorry state of affairs.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for securing this debate. She is consistent, and I am here to support her. In my constituency, the Ulster Bank, which is a subsidiary of RBS, closed its Ballynahinch branch last February, and it now intends to close the neighbouring Downpatrick branch in November. Does she agree that the abdication of the duty of care to rural banks is unacceptable at a time when profits are so high? Legislation underlining that duty of care should come before this House, as the current guidelines are not providing safeguards.

[Sir Charles Walker (in the Chair)]

Order. Ms Brock, are you happy, as the mover of the motion in a half-hour debate, to take interventions? You do not have to.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 7th May 2024 Commons Chamber

[Laura Trott]

My hon. Friend is, as ever, a brilliant advocate for his local area. I note that West Dorset is getting £4.4 million from the UK shared prosperity fund, and the wider Dorset area is benefiting from a range of other significant investments, including £9.7 million from the future high streets fund, but I am happy to meet him to discuss the matter further.

[Jim Shannon (Strangford) (DUP)]

Like the hon. Member for West Dorset (Chris Loder), I represent a rural constituency. Strangford is the reason I am here, and I want to represent it well. What steps will the Minister take to ensure that all updates to and volumes of the Green Book apply to Northern Ireland as well as to other areas across this great nation?

[Laura Trott]

The hon. Gentleman raises an excellent point—one that I will be discussing with the Northern Ireland Finance Minister in a couple of weeks.

--- Later in debate ---

[Jeremy Hunt]

May I say what a pleasure it is to be asked a question by my hon. Friend? I think this is the first time it has happened since he has been back. There is no more formidable a champion for Romford. He speaks about business rates, and we have indeed been doing what we can to bring them down at every fiscal event.

[Jim Shannon (Strangford) (DUP)]

What steps have been taken to support pensioners to know what benefits they are possibly entitled to? I understand that 1.4 million people access pension credit, but a great many more are entitled to it.

Financial Conduct Authority: Accountability

Jim Shannon Excerpts

Wednesday 1st May 2024 Westminster Hall

[Mr Carmichael]

I absolutely agree with my hon. Friend. In fact, as I hope will become clear as my remarks develop, the way that the FCA is going about its duties at the moment is working for nobody. It is clearly not working for the communities most directly involved, for the financial services sector or for members of the public such as my constituents, who have been left to beat their head against a brick wall for years in their dealings with the FCA.

[Jim Shannon (Strangford) (DUP)]

I wholeheartedly endorse what the right hon. Gentleman has said. Does he agree that, for many of us who have brought constituents’ financial issues to the FCA over the years, the FCA often appears to be a barrier rather than a help for the ordinary man or woman? Let us be honest, that perception needs to be altered by a seismic shift in how the FCA engages. I know he feels the frustration that all hon. Members present feel.

[Mr Carmichael]

I am delighted and relieved to see the hon. Gentleman in his place; he is absolutely right. The engagement of the average constituent—I am legally qualified, but I include myself in that—with the financial services sector is often a matter of supreme consequence. Very often, they have to rely on the judgment and expertise of the people with whom they are dealing, who are regulated by the FCA. That is why this matters for all of us.

The parallels with the Post Office are unavoidable. It is the same situation time and again: a well-resourced public body decides to deny, deny, deny until eventually people have to give in. That worked for the Post Office, although we were able to break through it. That is just one of the most egregious examples. Lower down the food chain, where fewer people are affected, including my constituents, it is much more difficult for anybody to get justice.

That is how I became interested in the first place. As is often the case, when one starts to lift rocks, what is underneath takes one off in other directions. I am afraid that I have found little under any rock that I have lifted to make me think there is anything in the FCA at the moment about which we should be happy or optimistic.

The FCA is consulting on proposals to change its enforcement code. Essentially, it is talking about naming and shaming much earlier people who have become a subject of concern. That has to be viewed in the context of its performance: an average FCA investigation takes at least four years. In 65% of cases referred to it, no further action is taken. For such an industry, the reputational consequences of naming and shaming at such an early stage could be catastrophic. The people most directly affected are not the big City firms, because they are big enough to withstand the damage, but the small and medium-sized enterprises, for which the FCA does not demonstrate the level of concern that it should.

A report by Spotlight on Corruption in February showed that 90% of the value of fines against directors in the financial services sector was levelled against directors in SMEs, and only 2% against senior executives in large companies. It is part of the culture that the regulator seems to be staffed and driven by people in the big City firms, who seem to get a different level of service and, dare I say, protection than the SMEs. That matters in relation to the enforcement code changes because there is a real risk of undermining this country’s reputation for stable and predictable regulation. Given the importance of financial services to the economy as a whole, the wider national economic interest is clearly at play.

The culture also goes wrong when we look at the way in which the FCA runs itself. I have had the benefit of a briefing from Unite the Union, and will turn later to some questions it poses through me. Independently of that, I have spoken privately to a handful of people who work for the FCA. I am not going to tell the House what they told me, because even though what they told me was in general terms—just for my own background and understanding—they were concerned that if something I said allowed them to be identified within the organisation, it would be to their professional detriment. Just hold that thought for a second: they are so concerned, and the culture in the FCA is so poor, that they are not prepared, even anonymously, to speak to Members of Parliament. If anybody doubts that there is a cultural problem within the FCA, that should surely remove those doubts.

The morale among staff is pretty poor. I have to say, though, that the staff I met genuinely understand the importance of the work they do in the public interest; they value the role they play, but clearly feel undervalued by the senior executives and the people at the top—and, actually, they are undervalued. Sixty staff working at the FCA earn salaries of less than £29,500, which is the Joseph Rowntree Foundation’s minimum salary recommendation that is required for an acceptable living standard. In fact, that amount would not even allow someone to bring a spouse into the UK under immigration regulations these days.

Unite the Union has surveyed staff extensively and speaks about the toxic environment within the FCA for staff reps, who are given little assistance or support and minimal information. The FCA carries out a quite remarkable performance assessment framework, which is not a million miles removed from the one that I knew when I first became a civil servant at the start of my legal career 30 years ago. I thought we would have moved well away from that, because it was hopelessly inadequate—but no; it seems as if it is almost designed to encourage mediocrity. It is the sort of system that was used by a number of public sector and City companies for a long time, but I do not know of many companies that have used that sort of framework for the last 10 years. It has destroyed the collaborative working environment within the FCA, and 81% of respondents to the Unite survey identified it as being unfair to them.

Unite has posed some questions to me that I will read into the record. I do not expect the Minister to answer them all, but perhaps he could follow up in correspondence. Why does a public sector organisation that pays its chief executive over £450,000 a year find it acceptable to pay a large number of staff below the Joseph Rowntree Foundation’s minimum income standard? Why has the FCA not made any cost of living adjustments for its staff in the 2024 pay round, following a punishing cost of living crisis? Why has the FCA not delivered the resource and priority it has promised staff representation in the wake of recent failures? If the FCA is committed to “best in class” staff representation, as the FCA chair Ashley Alder told the Treasury Committee last year, why will it not recognise a trade union?

What are the Government doing to hold the FCA leadership to account for the problematic culture of fear and burnout, the high staff turnover and the sinking morale that Unite the Union has consistently reported over the years? Why has the FCA persisted with a severely outdated model of staff performance grading, long abandoned by the industry it regulates? Surely the FCA should be leading the sector as a role model, should it not? Finally, why has the FCA made no headway in its large disability pay gap? Unite the Union reports that staff with disabilities, neurodivergence or complex personal circumstances are simply getting poorer performance and pay outcomes than their peers.

The FCA as an organisation does massively important work in the public interest but as I said to my hon. Friend the Member for North East Fife (Wendy Chamberlain), it is surely clear that it is working for nobody. It is not working for members of the public who rely on the protection it might give them, as evidenced by my constituents and the impact they felt from the Midas Financial Solutions Ponzi scheme’s fraud. It is not working for the benefit of the sector that it regulates, as evidenced by its proposed changes to the enforcement code. It is not working for our communities, as evidenced by the work on access to cash referenced by my hon. Friend, and it is most certainly not working for the benefit of the people it employs.

It is apparent to me that the poor culture in the FCA is driven from the top and then bleeds into every aspect of its work. As an organisation, it has lost direction and lacks leadership from the top. However, we all remember why we have it and why it was set up. For the national economic interest of us all, it is too important to fail, but surely it is apparent that it is failing, and somebody needs to take control and change that.

Furnished Holiday Lettings: Taxation

Jim Shannon Excerpts

Wednesday 1st May 2024 Westminster Hall

[Peter Aldous]

My hon. Friend may have read my speech, because that is one of the issues that I will highlight, and I will mention some statistics that the Professional Association of Self-Caterers—PASC—kindly provided to me to make that point.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member on bringing the debate forward. I suspect that I might be about to add a controversial opinion, but we will see how it goes. As a representative of what I believe to be the most beautiful constituency in the United Kingdom, Strangford, it is my desire to attract more bed nights to the area, and the Airbnb-type scenario was one way in which we felt that could be done. Does the hon. Member agree that the removal of the tax incentive may prohibit people from doing up the old granny flat in the garden, and so prevent the local economy from benefiting from bed nights? I see the benefits of the incentive, and I think it could be to our advantage.

[Peter Aldous]

I thank the hon. Gentleman for that intervention. In certain parts of the country, the incentive’s removal might well have benefits, but I argue that it is a rather blunt instrument, which could have unintended consequences in other areas.

Access to Banking: Devon

Jim Shannon Excerpts

Wednesday 24th April 2024 Commons Chamber

[Simon Jupp (East Devon) (Con)]

I am delighted to have secured this important Adjournment debate on access to banking services and banking hubs in Devon. I welcome the Minister and colleagues to the debate.

Take a quick stroll down your nearest high street, Mr Deputy Speaker, and you will notice that there are fewer bank branches than there were in years gone by—far fewer. In 1992 there were 19,000 bank and building society branches in the UK. In 2022 the number of bank and building society branches had fallen from 19,000 to 8,000. That decline has not happened more quickly on any particular Government’s watch: the fall has been consistent and steady over the past 30 years. However, we have reached a tipping point; bank branches are getting scarce.

We notice when bank branches are gone altogether from our high streets. People cannot deposit cash or pay in cheques; businesses and charities cannot pop to the branch to refill their tills or bank their takings at the end of the day; and we no longer have friendly faces to talk to for financial advice. When bank branches are gone, people have to travel miles to apply for a loan or to arrange third-party access to start bereavement proceedings, for example. People tell me that when those branches are gone, managing their money becomes more difficult, if not impossible. People in my constituency travel to cities and towns such as Exeter or Honiton for their nearest branch. Every time a bank decides to shut its high street branch, my postbag fills up. I share those people’s frustration—I get it.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Member for securing the debate on this massive issue. Does he agree that banks’ abdication of their responsibilities to rural communities, which often have the worst transport, infrastructure and broadband connections, cannot be paved over with a users’ guide to online banking? At the very least, a hub that is accessible throughout the day and in the evening must be the minimum standard of service that any national bank must be required to provide for its customers.

[Simon Jupp]

The hon. Gentleman is absolutely right. I personally would benefit from a “how to bank online” guide, because it can be quite confusing, even for someone who is relatively technical. I thank him for his point.

It is not enough to say that bank branch closures are commercial decisions. Yes, the Government cannot intervene, and nor can I as an MP stop bank branches from closing, as much as I try. But we have reached a tipping point where enough is enough. Banks must provide core services to loyal customers on our high streets and stop washing their hands of their customers’ needs.

The banks claim that their branches on our high streets are increasingly outdated: they say that more customers are moving online and going cashless. That is broadly true, but it is not an excuse simply to pull up sticks and disappear. In fact, I believe that bank branch closures across the UK are forcing people to change their habits, but people still need access to cash and face-to-face banking services—the demand is definitely still there. To give a couple of statistics, 27% of over-65s and 58% of over-85s rely on face-to-face banking. Some among the older generation are not technophobes. In fact, they may have valid reasons for not wanting to do online banking. According to research by Age UK, fear of being defrauded and a lack of IT skills are common reasons why many people prefer face-to-face banking.

If the need for face-to-face banking is still there, what is the solution? That brings me to the second part of my speech.

Finance (No. 2) Bill

Jim Shannon Excerpts

2nd reading
Wednesday 17th April 2024 Commons Chamber

[Nigel Huddleston]

I thank my right hon. Friend for his comments. We have had a discussion about the loan charge previously. I do not believe an amendment would be in order on this Bill, but I say to my right hon. Friend and others that I am always open to hearing concerns about the loan charge. I have done previously and will happily continue to hear information, evidence and concerns from colleagues.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for coming to the House to present the Bill. Over the last six months, particularly the last few weeks, farmers have been under exceptional weather pressure, with the implication that they will be unable to cultivate or plough their land or sow their crops. The Minister referred to inflation coming down. By the way, I am glad that it is dropping; we all should be, and if we are not there is something wrong with us. At the same time, inflation cannot come down if the cost of foodstuffs starts to rise. Has the Minister had the opportunity to consider that issue? How can we help farmers to keep food prices down at this difficult time, and thereby ensure inflation continues to drop?

[Nigel Huddleston]

I thank the hon. Gentleman for his positive welcome of today’s news about inflation. He is right that it is welcome but we always need to keep an eye on it. I join him in thanking our farmers, who have played a pivotal role in helping food prices to come down. The supermarkets have a role in that area as well. He raises some points that are slightly outside the remit of the Bill, but I assure him I will continue to have conversations with ministerial colleagues and others, and I am sure he will as well. We always listen to the important farming community in this country, who do so much to create employment and provide us with food.

The Bill covers 24 different measures. I will not go through every single one of them, but want to focus on a few key areas. First, I turn to how the Bill rewards work. We all recognise the simple truth that work should pay. We understand how hard many people up and down the country work. This Government want to ensure they are recognised for that because that approach not only benefits individuals and families, but overall growth and the economy. As I mentioned, that is why we have already taken two Bills to cut national insurance through Parliament, but this Bill goes further.

A key measure in the Bill is to increase the high-income child benefit charge threshold from £50,000 to £60,000. In addition, the rate of the charge will be halved, so that individuals continue to receive child benefit until one household member earns £80,000, taking 170,000 families out of paying this tax charge. These changes are a well-earned reward for working families up and down the country and put pounds back into parents’ pockets.

HMRC Self-Assessment Helpline

Jim Shannon Excerpts

Wednesday 20th March 2024 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

First, let me thank the Minister for a positive response, and for trying to solve the problems; we appreciate that. Constituents have told my office about their struggle to get through to HMRC on the phone lines. There is no doubt that people still rely on services that allow them to speak to an individual. That is so important, as it is for us as MPs. We had 1 million calls unanswered in January alone, which illustrates clearly the problem that the Minister is trying to address. Does he not see that there must be an enhanced service for all of the United Kingdom of Great Britain and Northern Ireland, to ensure that all calls are answered and dealt with? The better option of a personal phone call is right, and we need a drastic change to be made.

[Nigel Huddleston]

It is important that HMRC commands respect—to a broad degree, it does—across the House and among our constituents, because that is how we can ensure that we comply with tax requirements. Where there is confusion, uncertainty or a valid question, it is important that people can get help, advice and support. For some people, it is appropriate to go online to get that, but that is not the case for everybody. As I said, the comments made today are very much appreciated. I suspect that the hon. Gentleman will recognise that, as I have said many times, it is important that all of us encourage and support the digitisation of these services, and the adoption of the app by our constituents, because that will help ensure that the time available is focused on those who most need help and support.

Royal Assent

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 19th March 2024 Commons Chamber

[Nigel Huddleston]

I thank my hon. Friend. It was a pleasure, as always, to meet him in his constituency on Friday, where we discussed this matter and many others. The Government will launch a consultation in due course on how to end this unfairness by administering the HICBC on a household rather than an individual basis. Doing so would require significant reform of the tax system, as our tax infrastructure does not currently have a mechanism to consider household income, but the Government plan to end the unfairness for single-earner families in the child benefit system by administering the HICBC on a household rather than an individual basis by April 2026.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for that. Child benefit income is an integral part of how families make their money last through the whole week. If there are any changes that will reduce it in any way, is it the Minister’s intention to ensure that those who have questions, difficulties or concerns have their concerns and wishes taken on board? It is really important that those facing financial changes can cope with the changes to come.

Wine Duty

Jim Shannon Excerpts

Tuesday 5th March 2024 Westminster Hall

[Will Quince]

My right hon. Friend and constituency neighbour is absolutely right to raise that issue, and she has long championed cutting the red tape and bureaucracy that British businesses face. As my right hon. Friend the Member for Stevenage (Stephen McPartland) said, this unintended consequence means that business faces not just extra cost but the significant administrative burden that comes with cost and time. My right hon. Friend the Member for Witham (Priti Patel) is right to point out that the new system is not simpler or fairer and that it has a huge cost implication.

[Jim Shannon (Strangford) (DUP)]

First, I commend the hon. Gentleman for securing this debate. James Nicholson Wine in Crossgar, which is in my constituency, is one of those excellent wine businesses that draws lots of people, not just because of the quality and wide variety of its wines but because it has also become a bit of a tourist attraction. It does lots of things. When it comes to the retention of jobs, does the hon. Gentleman share my concern that the Government’s proposed changes will undoubtedly—though I hope not—have an impact on job creation and job retention?

[Will Quince]

The hon. Gentleman is right to intervene on that point, because job creation and retention, including in his constituency, is important, as is our flourishing tourism sector. The growth in wine production across our country is something that we should celebrate; we should be proud of that and support it.

This debate is timely because we have some time on our hands. Obviously, the sooner we give notice to industry that the easement can continue, the lower the cost and administrative burden borne by industry. We have until 1 February 2025 to address this issue. I will have an ask for the Minister in a few moments, which I hope the hon. Gentleman will agree with.

I will just touch on one other element first, which is why wine is different. The easement recognises that wine is different from other categories of alcoholic drink. Wine cannot be made to a predetermined strength; the alcoholic strength of wine is determined by climate. I know that I do not need to teach anyone in this Chamber to suck eggs, but wine from warmer climates tends to be higher in alcohol than wine from cooler climates. Wine is not like beer or cider. And wine is subject to strict production rules, so in that respect it is also unlike beer and cider. As a consequence, there is very little that wine makers can do to lower the alcohol content.

It is estimated that there are over 100,000 different wines on the UK market. By comparison, there are less than 1,000 different ciders. Different vintages of wine can vary in strength, as is the case with some wines from the same year. Of course, that is one of the great pleasures of wine; wines from around the world are unique, while different vintages from the same vineyard can differ in strength and taste.

Taxing alcohol by strength, with lower rates for lower-strength products, might seem simpler on paper, but it takes absolutely no account of how different alcoholic products are consumed, including in what quantities and whether the product is diluted. This new system is much more complicated to administer for wine businesses and it penalises wine from warmer climates.

The differences between wine, spirits, beer and cider will remain if the easement ends. In practice, if the easement is abolished as planned, there will be 30 different payable amounts for wine in the 11.5% to 14.5% ABV range.

Coastal Tourism and Hospitality: Fiscal Support

Jim Shannon Excerpts

Thursday 22nd February 2024 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Mrs Cummins. I thank the hon. Member for North Devon (Selaine Saxby) for leading the debate. She is always very enthusiastic and zealous about her constituency. I always like to hear what other right hon. and hon. Members say about their constituencies, because I find it mirrors what I have to say about mine.

I am going to take a wee step down Strangford way, and talk about some of the good things we have back home. I also want to support the hon. Lady in what she put forward, because this issue is so important. She represents and clearly understands a coastal constituency, which she is so passionate about. It is fantastic to be here and support her, as all our constituencies have those similarities. In another debate, she mentioned the impact that the recent storms and weather have had on businesses in her constituency. I was there for that one as well, and that is certainly something that needs to be addressed.

We are here to discuss many things. We look to the Minister, as we always do. He is always receptive to our comments and has an ability to respond in such a way that we all feel encouraged. We will feel better encouraged, of course, if there is some help financially or some ideas at the end. I am sure the Minister will have those ideas; I have no doubt about that. I am also pleased to see the shadow Ministers for the SNP and the Labour party, the hon. Members for Coatbridge, Chryston and Bellshill (Steven Bonnar) and for Ealing North (James Murray), in their places. They are both committed to making lives better and to ensuring that help for tourism and hospitality in coastal areas becomes a reality.

Why do I enjoy these debates? I enjoy them because, right away, there is a subject matter that I can relate to. The hon. Member for North Devon spoke very well about her constituency. These debates give me an opportunity to understand other areas, but also to show off the beauty of my constituency of Strangford. What is known as the Ards peninsula consists of numerous villages such as Ballywalter, Portavogie and Portaferry, which have stunning scenery. Strangford lough is an area of outstanding natural beauty and a Ramsar-designated area as well, so it is really important. I am privileged to live on the edge of that area.

There are many tourism attractions and hospitality businesses that are pivotal to the local economy and play a huge role for local visitors. I will try to do as the hon. Member for North Devon did. The businesses in my constituency are often family run, so when I speak about the individual businesses, I speak with the knowledge of having known them for many years. There is such a variety on offer. What makes Strangford so special is all those businesses that come together in the tourism and hospitality sector along the coastal areas.

We have numerous tourist attractions, such as the National Trust grounds at Mount Stewart, between Carrowdore, Greyabbey and Newtownards. Mount Stewart really is the jewel of the crown for Strangford, with well in excess of six-figure sums of people coming to visit at all times of year. During covid, those numbers did not drop very much. It has fabulous walks and hosts events such as jazz nights in the summer, not to mention the fact that it is a much-used location for weddings.

Another example of what we are doing is the land in Ballywalter that was transformed into a minigolf course as part of the farm diversification scheme. Jim Davidson, the guy I sat beside in primary school—that was not yesterday—is in farm diversification, and that is one of the things he has come up with. It is much loved and visited by families and couples from all over. It is has become a fun day for families whenever they are about. The sheer volume of hospitality that is offered is just incredible. You can probably guess, Mrs Cummins, that I am very enthusiastic and proud to tell others about it. I have told some Ministers here. The Minister in his place will no doubt be booking his trip to Strangford before the day is out, as a former Minister did. She came to visit my constituency and she enjoyed her time across the water.

Glastry Farm ice cream is another example of farm diversification. One of the dairy farmers in that area realised that there was potential for his ice cream. He has been developing that over the years and has done exceptionally well. Echlinville gin distillery is one of many gin and whiskey distilleries that we have across the constituency. The owners of Harrisons of Greyabbey are family friends and my next-door neighbours. It came out of nowhere and they have built it up into a restaurant, a café and a garden centre. The hospitality costs are part of the problem for them. They have a lovely, visual venue that looks right over Strangford lough, which is quite an attraction.

Local DUP councillor, David Kerr, started his own fruit and veg shop from his farm in Kircubbin; fantastic B&Bs in the village of Ballywalter, and a hotel in Portaferry, provide warm and homely accommodation for tourists; and the window of the very much sought after Orange Tree wedding venue—where I attended my niece’s wedding just last year—has a view of Strangford lough, so is coastal in every sense of the word. All the businesses I have mentioned, like those in the hon. Lady’s constituency, create jobs, wage packets in people’s pockets and opportunities for young people who want to have a part-time job or to start off somewhere. It is vital that the tourism and hospitality issue in coastal areas is addressed so that those jobs and opportunities can be retained. The list of what is on offer is truly endless.

As the hon. Member for North Devon said, exceptional circumstances, such as weather conditions, ultimately play a massive role in footfall at coastal areas. Especially after covid, we have witnessed many places shutting down as they cannot sustain the lack of business; it is just impossible for them to carry on. Furthermore, the rise in the cost of living has had a significant impact on businesses’ ability to pay their bills. I know that is true of the retail trade and those involved in hospitality.

Colin Neill is one of those guys who represents the industry; he is always vocal, factual and evidence-based, and he tells us about the pressures these businesses are under. Some smaller and medium businesses were being charged thousands of pounds for electricity and severely struggling to pay their gas and oil bills. This is ultimately not sustainable—it was not for some of them, and unfortunately they had to close or sell on to new management.

I replicate what the hon. Member for North Devon has said, and other Members will do likewise. Although we represent different parts of this great United Kingdom of Great Britain and Northern Ireland, we are probably seeing the same issue. When we look to the Minister for a response, we do so from the basis of facts on the ground and what people are telling us. There is certainly a call for Government to better support local businesses, especially in the coastal constituencies that we all represent.

Government incentives for more local businesses that want to choose to open are crucial to sustain the livelihoods of these areas. Over the last few years—the last two in particular—I have seen quite a few smaller hospitality businesses, shops and venues in my area close; it is important that we keep what we have and that those opportunities are in place. The Government must do more to support local businesses, especially through the Barnett consequentials and the block grant. That is my request to the Minister.

The Northern Ireland Affairs Committee heard from the Secretary of State this week. To be fair, I think he clearly understands that the Barnett consequential for Northern Ireland has not been okay for the last few years, and because of that the Government are committed to a change in the Barnett formula to something more along the lines of the Welsh model. That is where we think we should be, because it would reflect better our population growth—which has jumped up to 1.95 million, whereas it was approximately 1.75 million about 10 years ago—and the peculiarities of costs for Northern Ireland. I am very encouraged by the Secretary of State for Northern Ireland and by the Government’s dedication to making those changes. Although the Secretary of State had outlined a timescale, he did say in answer to my question in the Select Committee that the Government were looking very much at how they could make the process quicker. That would bring substantial moneys in and give equality to the Barnett consequential.

I would greatly appreciate it if the Minister would look at the matter and discuss it with the Secretary of State for Northern Ireland—there is a commitment and I think an agreement can be reached—to see whether any more can be done to support local businesses in coastal areas, including in my constituency, because they need help. I am very pleased, as I think most people are, to have the Northern Ireland Assembly back, because it ultimately ensures accountability in the process, but for us to do well and deliver for our constituents—as a very much integral part of the United Kingdom of Great Britain and Northern Ireland—we need to have that Barnett consequential change, which will enable us to support our businesses across the whole of Northern Ireland.