Finance Bill (Seventh sitting)

Felicity Buchan Excerpts

Committee stage & Committee Debate: 7th sitting: House of Commons
Tuesday 16th June 2020 Public Bill Committees

[Kemi Badenoch]

The Government are monitoring the emerging evidence from the introduction of minimum unit pricing in Scotland and, recently, Wales, and we have addressed public health concerns in the duty system. For example, in February 2019, duty rates on white ciders were increased to tackle consumption. We must remember that the UK operates a single excise regime, so it is not possible to devolve duty rates. It is worth noting that many of the problems that have been raised are actually caused by EU rules, according to officials. I can write to the hon. Gentleman and other Members who want further clarification on that point.

[Felicity Buchan (Kensington) (Con)]

Does my hon. Friend agree that, although this is a very interesting debate, we are here to talk about taxation, not public health policy on alcohol?

[Kemi Badenoch]

I completely agree. I hope I have given enough answers to address the point raised by the amendment. We have already carried out an assessment on public health grounds, but this is tax legislation. I therefore ask that amendment 10 be withdrawn.

Clause 79 introduces a new sanction to prevent a practice that is currently available only in the wine and made-wine sectors and is used by only a small number of producers. Prevention of the practice by the use of prohibitive sanctions will address inequity of treatment across the alcohol industry and will create a level playing field so that alcohol products can compete more fairly in the marketplace. I therefore commend the clause to the Committee.

Question put, That the amendment be made.

--- Later in debate ---

[Kemi Badenoch]

Clause 81 makes changes to uprate the RPI vehicle excise duty rates for cars, vans and motorcycles with effect from 1 April 2020. VED is paid on vehicle ownership, and rates depend on the vehicle type and first registration date. The Government have uprated vehicle excise duty for cars, vans and motorcycles with inflation every year since 2010, which means rates have remained unchanged in real terms during this time. As announced in the 2018 Budget, all vehicle excise duty revenues will be used specifically for the national roads fund from this year, to provide certainty for road investment.

The changes made by clause 81 will uprate vehicle excise duty for cars, vans and motorcycles by RPI for the 10th successive year. As a result, the rates are unchanged in real terms since 2010, and that comes on top of the Government’s decision to freeze fuel duty rates for the ninth successive year. By April 2021, this will have saved the average car driver £1,200 in comparison with the pre-2010 escalator.

From April 2017, a reformed VED system was introduced that strengthened the environmental incentive when cars are first purchased, with all cars paying a standard rate in subsequent years. The standard rate will increase by only £5, the flat rate for vans will increase by £5 and the rate for motorcyclists will increase by no more than £2. These changes will ensure that the Government continue to support motorists with the cost of living, and that the vehicle excise duty system continues to incentivise the purchase of lower emission vehicles.

[Felicity Buchan]

Does my hon. Friend agree that as the economy comes out of the dislocation of coronavirus, we need to build a greener and cleaner economy? Incentivising the use of low-carbon cars is part of that, and clearly we cannot do so just through the tax system; we also need a structure of electric charging points. I am glad to say that my borough is one of the top boroughs in the country in that regard. As we look to build a greener economy, I commend this clause and the related clauses.

[Kemi Badenoch]

I thank my hon. Friend for her intervention, and I agree with her.

Future Relationship with the EU

Felicity Buchan Excerpts

Tuesday 9th June 2020 Commons Chamber

[Penny Mordaunt]

We are very aware of the asks of every sector in Scotland. I have been working with all the devolved Administrations to ensure that they are able to feed in. Indeed, those discussions have materially changed the shape of the negotiations. We will continue to do that. They know that I am committed to doing that. Many of the things we are asking for are in everyone’s interests. They are mutually beneficial things, so I remain optimistic.

[Felicity Buchan (Kensington) (Con)]

Financial services are very important to my constituency, and indeed to the country as a whole, given their huge contribution to the Exchequer and the number of people they employ, not only in London but in Scotland and in the north of England. Will my right hon. Friend assure me that the interests of financial services will be protected as part of the negotiations?

[Penny Mordaunt]

I can give my hon. Friend those assurances. We are obviously working very hard to deliver for that sector. It is a sector that was not well served—the whole of services were not well served—by our previous relationship with the EU. The asks that we are making with regard to financial services are in other agreements that the EU has, notably that with Japan, so we think it perfectly reasonable that they be extended to us.

Public Health England Review: Covid-19 Disparities

Felicity Buchan Excerpts

Thursday 4th June 2020 Commons Chamber

[Kemi Badenoch]

I thank the hon. Gentleman for his question. As he will know, the review was by Public Health England. I have not seen the Welsh figures that he talks about, but if he writes to me separately, I think I might be able to provide some more information after speaking to officials.

[Felicity Buchan (Kensington) (Con)]

We talk a lot about levelling up, but normally in the context of the north versus the south. As my hon. Friend knows, in our cities—in particular in London—we have huge inequalities. Will she assure me that we will look out for all those left behind?

[Kemi Badenoch]

My hon. Friend is right. Levelling up is not just about north and south; it is going to cut across lots of different areas. Responding to the challenges of covid-19 specifically does not mean that the Government have forgotten that. We remain committed to a levelling up of every region and nation, and even within regions and nations of the UK, and that can still be a critical part of how we get back to normal.

Covid-19: Economic Package

Felicity Buchan Excerpts

Tuesday 12th May 2020 Commons Chamber

[Rishi Sunak]

People have ups and downs and variations in their earnings for all sorts of reasons, whether because of maternity, ill health or something else. To deal with that, we have provided an average of income over up to three years on a look-back basis, to smooth out all the ups and downs in all people’s incomes. That was something that stakeholder groups were keen to see at the beginning, it is something that we delivered, and I believe it provides the fairest way to treat everybody, on a level playing field, whatever their circumstances. A three-years averaging of earnings seems to me to be a reasonable approach to take.

[Felicity Buchan (Kensington) (Con)]

Does my right hon. Friend agree that we need an economic strategy that balances getting some businesses support when they cannot reopen with encouraging others to go back to work, and that today we have got that balance right?

[Rishi Sunak]

My hon. Friend is absolutely right: the plan that the Government and the Prime Minister have outlined does exactly what she says. For those who can go back to work now, they should do so in a safe way, as the Secretary of State for Business, Energy and Industrial Strategy will talk about later. As the rest of our economy reopens, people will have the benefit of a furlough scheme that extends all the way to October and provides for part-time flexibility. The combination of all those things means that my hon. Friend’s local businesses and many others can take the time that they need to get firing on all cylinders again.

The Economy

Felicity Buchan Excerpts

Monday 27th April 2020 Commons Chamber

[Rishi Sunak]

What I would say to the hon. Member is that the new bounce-back loan scheme announced today does come with a 100% guarantee for loans of 25% of turnover up to £50,000. Given the structure of the Northern Irish economy that he knows so well, which is full of microbusinesses, I believe that that in particular will be a very significant intervention that will help the Northern Ireland economy.

[Felicity Buchan (Kensington) (Con)]

I congratulate my right hon. Friend on the scale, breadth and speed of the various packages, and thank him for them. Does he agree that what is important at the moment is getting cash and liquidity to businesses and individuals, hence why the micro-loans scheme is so important? Does he also agree that over time a lot of companies are taking on additional debt, so we may have to think about debt equity recapitalisation?

[Rishi Sunak]

My hon. Friend is absolutely right. I know she has spent a lot of time with businesses in her constituency to understand what is on their minds. Cash and liquidity is king, which is why the VAT deferral in particular that we put in place and which took effect some time ago—worth over £30 billion or 1.5% of GDP—is so vital in providing that breathing room. The new bounce-back loans will be available to businesses hopefully within a day or two of applying, which will also speed up cash. The furlough scheme is now up and running, and people are getting that cash in their bank accounts as we speak.

Economic Update

Felicity Buchan Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

Again, the measures that we took last week to strengthen our security net will benefit those who are self-employed and sole traders. Those with properties that qualify for business rate relief will benefit from that and cash grants will also flow to those people.

[Felicity Buchan (Kensington) (Con)]

This morning in the Treasury Committee, we asked the Chancellor to throw the kitchen sink at the economy and I thank him because he has certainly done that. However, small businesses in my constituency of Kensington have an issue, because most of the business rate relief is funnelled only if the rateable value is under £51,000. But they are suffering in the same way as other businesses. Will the Chancellor look into that?

[Rishi Sunak]

I am pleased to tell my hon. Friend that, as a result of the measures I have taken today, any business in the retail, hospitality and leisure sector, regardless of its rateable value, will now qualify for 100% business rates relief for these next 12 months.

Economy and Jobs

Felicity Buchan Excerpts

Monday 20th January 2020 Commons Chamber

[Felicity Buchan (Kensington) (Con)]

It gives me great delight to address this House as the new Member of Parliament for Kensington. Kensington is a remarkable constituency, with its history, cultural heritage and diversity, but we do have issues. We have substantial inequalities, and in 2017 we suffered the Grenfell tragedy—the worst fire in London since the blitz. I want to bring my community together, represent each and every constituent and help to unleash everyone’s full potential.

I want to start by paying tribute to my predecessor, Emma Dent Coad. Six days after the previous election, the Grenfell tragedy happened. It was an appalling loss of life and it must have been tough for Emma to be the new MP in Parliament and to have to deal with those appalling circumstances. Emma worked hard for the north Kensington community, and I must say that she is never shy in holding public bodies to account.

I also want to pay tribute to my Conservative predecessors, Victoria Borwick, Malcolm Rifkind and, under slightly different boundaries, Michael Portillo and Alan Clark. I clearly have a wide range of role models to choose from.

Kensington has a huge wealth of cultural sites. We have Kensington Palace, where Queen Victoria was born and where she lived until her accession to the throne. Our museums are truly remarkable—we have the Natural History Museum, the V&A and the Science Museum, to name but a few. We have many embassies in Kensington, including those of Russia and Israel.

Kensington is not just grand institutions and beautiful conservation areas. We benefit from a truly vibrant and diverse community. Notting Hill has the carnival— the largest street festival in Europe. North Kensington has one of the most diverse populations in the entire country. Earl’s Court has always had a thriving LGBTQ+ community.

In Kensington, we have many European residents; indeed, South Kensington is sometimes referred to as Paris’s 21st arrondissement. That is why I am so delighted that this Conservative Government have unequivocally protected the rights of EU citizens living in the UK.

In Kensington, we have many wonderful parks—Kensington Gardens and Holland Park—and we value those vital and serene green spaces. However, several of our streets suffer from the worst air quality almost in the entire country. I welcome what this Conservative Government have done to help the environment, reducing greenhouse gas emissions by almost a quarter since 2010—the most of any developed country—but, clearly, there is a lot more to be done.

In Kensington, many of our residents work in professional services—in banking, law, accounting, insurance and consulting. I will therefore work hard to ensure that the interests of the City of London and our professional services sector as a whole are protected in our upcoming free trade negotiations. Let us not forget that financial services alone produces a whopping 11% of our total UK tax revenue.

My constituency is often thought of as a powerhouse of the UK economy, and that is undoubtedly the case. However, we do have deprivation, and it is not only economic inequalities—it is also health disparities. If you look at the life expectancy difference between my richest ward and my poorest ward, it is more than a decade for men. That is why I am such a passionate believer in equality of opportunity. That means giving everyone amazing opportunities, whether that be to access education, healthcare or high-quality housing.

It is only with a strong and vibrant community that we can afford those excellent public services. That is why I am so proud of this Conservative Government’s record on the economy. We have produced 3.8 million more jobs, we have taken 32 million people out of taxes and we have increased the minimum wage to £10.50 by 2024. It is a record to be proud of.

I want to conclude my remarks by talking about Grenfell. If there is any meaning to come of that appalling loss of life, it must be that a tragedy of that kind can never be allowed to happen again. We must ensure that every single house in this country is safe and truly fit for purpose. I want Kensington to be a beacon of modern urban conservatism, where what matters is not where you came from but where you are going, and where Kensington is the best place to live, work and learn for all its residents.