John Grogan debates involving HM Treasury during the 2017-2019 Parliament

Christmas Adjournment

John Grogan Excerpts
Thursday 21st December 2017

(6 years, 4 months ago)

Commons Chamber
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John Grogan Portrait John Grogan (Keighley) (Lab)
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It is a great pleasure to follow the wide-ranging speech of the hon. Member for Harrow East (Bob Blackman). He mentioned the Christmas No. 1, among other things, and I just want to mention three things that all have a Christmas link.

The first is the near-complete absence of trains on Boxing day in the United Kingdom outside Scotland. This situation does not exist in the rest of Europe, where a comprehensive train service is provided throughout the Christmas holiday period. In the UK, outside Scotland, if anything, the situation is worse this year than in previous years.

The great airports of Heathrow and Gatwick are served by buses this year, rather than trains, although Stansted does have some trains. The only other line in England that has a train service is Marylebone to Oxford on the Chiltern service, aside from in the enlightened area of Merseyside, where Merseyrail for the past three years has run a service—not to all stations but to selected stations. Each year that is going from strength to strength. For example, this year, Liverpool football club are at home at Anfield in the early evening on Boxing day, and a service will run well into the evening to allow fans of Liverpool football club not only to get to the game, but to get home. They are almost unique among English football fans in being able to do that.

The House of Commons Library tells me that it was not always like this in Christmases past. Until 1975, a Sunday service was provided on most of the rail network, but that was gradually run down until it all but disappeared in 1980. Members may well ask why this is a particular problem. It is because it means that some people cannot go home for Christmas; people who have to be at work first thing on 27 December would have to travel back on 26 December and they just cannot do that.

I have already mentioned sporting events. On Boxing day, I will be at my beloved Valley Parade watching Bradford City take on Peterborough, but in my charity bet in my constituency I have gone for an accumulator of Bradford City, Leeds and Burnley all winning that day, in order to cover all my bases in the constituency. As well as the sport, the sales are taking place, as are all sorts of events—at theatres and so on. We also often talk in this House about loneliness, so we can see that closing down this network for nearly 60 hours is just too long—that is to leave aside what this does for the environment.

There is, however, some hope in the north of England. In its rail franchise, Northern will have to provide 60 services on Boxing day 2018.We hope that those will be the first trains in Yorkshire on this day—I suggest they be on the Airedale and Wharfedale line—since 1980. TransPennine Express is also obliged to make suggestions to the Government on Boxing day services, which it has done. I hope that the Government will discuss funding those with TransPennine Express, and that with the necessary funding in place Manchester airport will be served for the first time ever on Boxing day. That is its busiest day of the year and there should be trains running. If it is good enough for Stansted, it is certainly good enough for Manchester.

We need to stop the blame game between the two Front-Bench teams on this issue. When the Conservatives were in opposition, they drew attention to it, and now my beloved Labour party draws attention to it around 26 December each year. Whether the railways are in public or private hands, the House must unite in insisting that a basic service is provided on Boxing day.

Let me quickly move on to discuss food. I am looking forward to my Christmas dinner, but can we trust the food on the table? We have seen a report by The Guardian and ITN about chicken processing plants, particularly those of the 2 Sisters Food Group, which initially came out in September. It suggested that standards were well below what we should expect at the group’s West Bromwich plant. There was chicken on the floor and production was suspended. But the situation has got even worse in recent days, with ITN and The Guardian having now revealed that Tesco gave a red warning to 2 Sisters Food Group about another of its 12 plants, the one at Coupar Angus, in Scotland, at about the same time—this was in September or October. In that case, the labelling was almost non-existent in some cases. Some chicken had been condemned as unfit for human consumption; it was not clear what had happened to it. It is extremely worrying that Tesco knew this, yet its chief executive, David Lewis, no less, did a press conference in October and, when he was asked whether he had any knowledge that the problems extended beyond the West Bromwich plant, he said that Tesco

“didn’t find anything that would indicate that what was seen in West Bromwich was present in any of the other factory sites”.

Yet Tesco had just given a red warning to the Coupar Angus plant. Mr Lewis has some explaining to do. Why did Tesco not provide this information to the public or to the Food Standards Agency? All supermarkets should definitely do that in future. There should be CCTV in all cutting plants, as there is in abattoirs, so that at Christmas time and throughout the year we can trust the food on our table.

We have already heard a couple of references to the importance of churches at Christmas. In Yorkshire, we are particularly proud that the live midnight mass on BBC 1 this year comes from the Catholic cathedral in Leeds, which has a magnificent choir. In recent years, Members from different parties have occasionally been critical of the BBC’s commitment to religious broadcasting. In the past few days, the BBC has responded with a rather good report. I commend it to the House. I think it is recognised that the BBC alone of the public service broadcasters now has a responsibility to bring religious broadcasting to the country. Among other things, the BBC has committed to having a religious affairs editor backed by a religious team. I commend that report to the House.

All that remains is for me to wish you, Madam Deputy Speaker, and the House a merry Christmas and, having mentioned my football bet, to reveal that I placed my accompanying charity bet at Ladbrokes in Keighley on Thistlecrack in the King George VI chase, the big horse race on Boxing day and another part of sporting Christmas.

HMRC Closures

John Grogan Excerpts
Thursday 2nd November 2017

(6 years, 6 months ago)

Westminster Hall
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John Grogan Portrait John Grogan (Keighley) (Lab)
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I want to make one central point, which is to do with the eight location principles that the Revenue used to decide where the regional hubs should go. All of the proposed regional hubs will be in big, successful cities, such as Leeds, Glasgow, Birmingham and Cardiff. One could argue that, in those cities, a big HMRC office will crowd out private investment. Alternative choices would have been a lot cheaper and would have pump-primed the local economies. In west Yorkshire, if the regional centre had gone to Bradford, rather than Leeds, where there is a severe danger of crowding out, it would have acted as a pump-primer, boosting the local economy.

I do not know whether management consultants or HMRC bosses thought up the eight principles, but they include sustainable large sites, a talent pipeline, single location career paths, a catchment for a mix of business activity, digital infrastructure, facilities for HMRC’s people and robust long-term infrastructure. Only one of the eight—market rates—has anything to do with cost and savings to the HMRC. Obviously, in some of the smaller towns, rents are a lot cheaper. Given that the driving force of the review is meant to be to reduce costs, that seems odd.

Chris Stephens Portrait Chris Stephens (Glasgow South West) (SNP)
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Does the hon. Gentleman agree that there should have been an assessment of the social and economic impact that the office closures will have on the local economy? In many towns and cities in the UK, the HMRC office is the largest employer.

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John Grogan Portrait John Grogan
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That was going to be my next central point. It seems very negligent that such social and economic impact assessments have not been carried out. It is no secret that one of the long-standing offices is in your constituency of Shipley, Mr Davies, which neighbours my constituency of Keighley. When we met the bosses of the Revenue, we were shocked that no such assessment had been made.

David Drew Portrait Dr Drew
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I thank my hon. Friend for being so generous in giving way. The Government and the previous Government always said that rural proofing would be part of policy making. Was there was any attempt to rural-proof this decision?

John Grogan Portrait John Grogan
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I have studied the eight points carefully, and there does not seem to be any rural proofing, which one would expect of this exercise.

There is a relatively new boss at HMRC. It will be interesting to see how much the Government will own this process and how much they will say that it is all to do with HMRC. I think the call for a moratorium is very reasonable, as it would allow us to go back and carry out some economic impact assessments. If the Government press ahead with the broad policy of regionalisation—there are many question marks against that—at the very least they should locate these offices, which are big economic drivers, in areas that would benefit from the boost that they would bring.

I join many other Members in saying that there is still time to halt this process and in asking HMRC to look again. That needs to be done, and only the Government can give those instructions to HMRC.

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Mel Stride Portrait Mel Stride
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The hon. Gentleman has asked precisely the same question that the hon. Member for Bootle (Peter Dowd) asked, so I have already dealt with that.

John Grogan Portrait John Grogan
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The Minister is being extraordinarily generous in giving way. Is he not at all concerned about crowding out private sector investment in some of the big cities? To follow on from the powerful speech of my hon. Friend the Member for Oldham West and Royton (Jim McMahon), is the Minister not in danger of putting himself on the side of big city United Kingdom and ignoring smaller towns and cities? Is that not a bad political move to make?

Mel Stride Portrait Mel Stride
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The hon. Gentleman raises the issue of crowding out private sector investment, but I am primarily concerned about the possibility of crowding out tax collection. If we do not have hubs that are fit for the 21st century, that are bristling with new technology, talent, and well-qualified, well-trained individuals working collaboratively from those units, we will be less effective at bringing the money in.

The tax gap was mentioned; it stands at 6%, a record low. Under Labour in 2005 it was around 8%. If it was 8% today, we would have £11.8 billion less coming into the Treasury, which is enough to pay for all the police forces in England and Wales, so these things matter. I understand why Members here are vexed about their constituency—I totally get it—but we cannot allow that to trump the really important job of bringing our tax collection into the 21st century, and making sure that it is effective, so that we keep our public services going.

Taxation: Beer and Pubs

John Grogan Excerpts
Tuesday 31st October 2017

(6 years, 6 months ago)

Westminster Hall
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John Grogan Portrait John Grogan (Keighley) (Lab)
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I think that the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) has tempted many of us to renew our acquaintance with pubs in the borders. It is a particular pleasure to take part in the debate, as it was secured by a true champion of the pub—the hon. Member for Dudley South (Mike Wood).

Having retired in 2010 from chairmanship of the all-party group on beer and from Parliament, I might have thought that my days of speaking in such debates were long gone; so I am delighted to say a few words today. In those days I represented the constituency of Selby, which included Tadcaster—still the only town in England that can boast three major brewers. In Keighley, which I now represent, there is one major brewer—Timothy Taylor’s, which dates back to 1858. It is a byword for quality in the beer industry, with brewers who trained at that icon of higher education in brewing, Heriot- Watt University—perhaps the leading university in the field. There was a minor hiccup in relations between Timothy Taylor’s and the all-party group when I voted—it seems so long ago—to ban fox hunting. The then managing director, Charles Dent, promptly resigned his involvement with the group. I can assure the House that this summer in typical Yorkshire fashion, over a pint at Headingley, we let bygones be bygones. I am very much in dialogue with Timothy Taylor’s. There are also breweries such as Wharfedale, Bridgehouse, Wishbone, Haworth steam brewery, Ilkley and, just outside the constituency, Goose Eye.

There has been a lot of talk about statistics; I want to underline just two. One in seven of all the jobs created since 2010 have been in this sector. What has not so far been expressed is how quickly people can rise up this industry; it is, if not unique, then certainly renowned for that. Some £1 billion from Yorkshire goes in taxation from the pubs and brewing industry to the Exchequer—about the same amount that goes from Northern Ireland, as the hon. Member for Strangford (Jim Shannon) said. If only we had a Yorkshire Mayor spending that money! We truly would have devolution.

I want to make four quick points. We should encourage beer exports, and there has been quite a movement towards that from the industry. Some have suggested that export sales should be excluded from the brewers’ volume for duty purposes, as a way of encouraging exports. That should be considered.

The hon. Member for Dudley South was right that under the Labour Government and under the coalition, the beer duty escalator did a great deal of harm. It is good to see the hon. Member for Burton (Andrew Griffiths) in his place, because he achieved what I certainly did not, and I hope that future chairs of the all-party beer group will achieve similar things. He got rid of the beer duty escalator. This is a crucial year for the reputation of the Conservative party and its relationship to the beer industry. Will those three years be known as the Burton interregnum or will we have not just beer duty relief, but rate relief? We clearly need an extension of £1,000 to £5,000 on rate relief this year.

Turning to small breweries’ duty relief, Gordon Brown has been agonising in recent days about his lack of empathy. Whatever the truth of that, he will always be known as the friend of small brewers—it is one of his great legacies—because of that massive change to our economy. At some stage, we will have to look at whether that can be extended. Many family brewers are losing out. They feel that they do not have the advantage of the duty rate relief and do not have the economies of scale that big brewers have.

Toby Perkins Portrait Toby Perkins
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Will my hon. Friend give way?

John Grogan Portrait John Grogan
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I will, in order to gain another minute.

Toby Perkins Portrait Toby Perkins
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And because my hon. Friend wants to hear what I have to say, I am sure. On the important point about the relief for small breweries, does he agree that although the policy is excellent, its impact sometimes means that brewers cannot grow any more as they will no longer come under it? Perhaps some kind of tapering to allow brewers to go from small to big would be helpful.

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John Grogan Portrait John Grogan
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As you have assured me that your favourite brewery in Yorkshire is Black Sheep brewery, I will take only 45 seconds, Mr Owen.

I urge the brewing industry, which has a great number of good leaders—including Mike Benner at the Society of Independent Brewers, Brigid Simmonds at the British Beer and Pub Association, Kate Nicholls at the Association of Licensed Multiple Retailers and Tim Page at CAMRA—to address this issue. The industry needs a consensus to put to Government about reform of the progressive beer duty. That would be the ideal situation.

Finally, I urge the pub industry not to absent itself from the debate about minimum pricing. If the Supreme Court upholds the Scottish Government’s decision to introduce minimum pricing, this issue will be back on the political agenda. A decade ago there was a strong alliance between the health lobby and many in the pub sector. That led to the smoking ban, and I think there could be considerable scope for renewing that alliance.