North Cotswold Line

Debate between Harriett Baldwin and Mark Garnier

Wednesday 22nd January 2020 Westminster Hall

[Harriett Baldwin (West Worcestershire) (Con)]

I beg to move,

That this House has considered North Cotswold line transformation.

It is a great honour to serve under your chairmanship this afternoon, Mr Pritchard. I am delighted that the Minister of State, my hon. Friend the Member for Daventry (Chris Heaton-Harris), will respond. I will start by declaring an interest, which is that I am an unpaid vice-president of the Cotswold Line Promotion Group, a fantastic voluntary organisation that has worked relentlessly for decades to improve the North Cotswold line. I am grateful that I have secured the debate so early in the Parliament, and in time for the 2020 Budget, because we have a Worcestershire Chancellor, who truly understands the value of infrastructure improvements in unleashing our country’s potential and increasing its productivity. I believe that the case for investing in the North Cotswold line will be one of the easiest and most convincing ones he will see.

The North Cotswold line, for those who have not had the pleasure of travelling along it, runs from Oxford to Hereford and crosses many constituencies, one of which is Witney—my hon. Friend the Member for Witney (Robert Courts) has recently, and conveniently, been appointed Parliamentary Private Secretary to the Transport Secretary. The line also runs through the constituencies of The Cotswolds and Mid Worcestershire, and I believe that my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) will seek to catch your eye later in the debate, Mr Pritchard, although, sadly, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston) would have to sit here silently, as he currently serves in the Whips Office. It then runs through the constituency of the Under-Secretary of State for Northern Ireland, my hon. Friend the Member for Worcester (Mr Walker), through my own constituency, and on to North Herefordshire—my hon. Friend the Member for North Herefordshire (Bill Wiggin) is a keen supporter. It then goes through the constituency of the Financial Secretary to the Treasury, my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman).The North Cotswold line plan is to improve services to Kidderminster—I see that my hon. Friend the Member for Wyre Forest (Mark Garnier) is here—and I know it will have knock-on benefits for colleagues in the Oxford area as well. All those colleagues are supporting this debate, even if they are not all speaking in it.

I also wanted to hold this debate now because it coincides with the arrival in the Department for Transport of the strategic outline business case for the North Cotswold line, which has been written by the North Cotswold Line Taskforce. I put on record my thanks to Lord Faulkner of Worcester, for chairing the taskforce, and to all the taskforce members: Worcestershire, Oxfordshire, Gloucestershire and Warwickshire County Councils, Herefordshire Council, the Worcestershire, GFirst, Marches, Oxfordshire, Coventry and Warwickshire local enterprise partnerships, the West Midlands Rail Executive and the Cotswold Line Promotion Group. They have all done excellent work since the taskforce was set up two years ago.

[Mark Garnier (Wyre Forest) (Con)]

I congratulate my hon. Friend on securing this debate. She has read out a list of a number of those supporting the plan, but I notice that the Greater Birmingham and Solihull local enterprise partnership was not involved. Is she as surprised as I am not to see it there, given that its southern part covers those north Worcestershire constituencies that the line to Droitwich Spa and Kidderminster goes through, where this will make a difference? It is a bit remiss of the LEP not to be on that list.

[Harriett Baldwin]

The honest answer is that I do not know the background and whether that LEP was approached, or whether my hon. Friend will now be able to tell it about this exciting proposal, which benefits the Wyre Forest and allows services to Kidderminster.

The history of this 86-mile line between Oxford and Hereford represents sharp decline and, now, slow recovery. The lovely, fully doubled line of the early part of the 20th century was reduced to mainly single track in the 1960s, ’70s and ’80s—perhaps not coincidentally, a time when the whole railway network was in public hands. By the 1980s, there were only two trains a day between Paddington and Hereford.

Thanks to the campaigning of my predecessor, the late Lord Spicer, as well as Sir Peter Luff—the former MP for Mid Worcestershire—and many others, two sections of the track were redoubled between 2008 and 2011. By 2015, a broad hourly service had been achieved. The partial redoubling has also brought some improvements to journey times. Since the December timetable changes, one train per day in each direction completes the London to Worcester journey in less than two hours.

Having looked at a range of options, the North Cotswold Line Taskforce has given unanimous backing for what it calls option 5, a redoubling of four miles of track from Wolvercote Junction, Oxford, to Hanborough station, and the redoubling of five miles of track from Evesham to Pershore. In addition, option 5 includes second platforms at Pershore and Hanborough.

The combination of those elements in option 5 would allow two trains an hour from Worcester to London, additional services beyond Worcester to Malvern, Hereford and Kidderminster, a regular Worcester to London service in less than two hours, and faster services from Malvern and Herefordshire to London, as well as improved performance and reliability.

Bank of England and Financial Services Bill [Lords]

Debate between Harriett Baldwin and Mark Garnier

Monday 1st February 2016 Commons Chamber

[Harriett Baldwin]

The hon. Gentleman is right to highlight the fact that the FCA is set up completely differently. However, I stress that the similarity lies in the operational independence. When it comes to the FCA, the Treasury is obviously able to appoint the chief executive and the board, but the operational decisions are for the FCA board, as we have made clear in recent weeks.

Let me move on to the second element of the Bill, which will make changes to the senior managers and certification regime. As hon. Members will know, the Government are committed to driving up standards of conduct across the financial sector, and to tackling the abuses and unacceptable behaviour of the past. That is why the Government are replacing the discredited approved persons regime with a much more robust new system, the senior managers regime, legislated for by the previous Government in the Financial Services (Banking Reform) Act 2013.

I find it quite extraordinary that, in the amendment they have tabled, Opposition Members have seen fit to claim that

“the Bill reduces regulation of financial services”.

This Bill is a vital opportunity to remove what the Parliamentary Commission on Banking Standards described as the “complex and confused mess” of the approved persons regime for 60,000 financial services firms, all insurers, FCA-regulated investment firms and all consumer credit firms, and to replace it with the more targeted and robust senior managers and certification regime.

Let me set out the benefits of the new regime; perhaps the Opposition will then reconsider their position. The approved persons regime is a relatively broad, unfocused regime in which all individuals who were considered to hold significant influence functions in the firm, or who dealt with customers would be subject to the regulators’ pre-approval in a tick-box exercise. Crucially, clarity of responsibilities at the top of firms was woefully inadequate. Firms could pass the buck for ensuring the fitness and propriety of their staff to the regulators, and the regulators could take enforcement action only against the individuals they had pre-approved.

The senior managers and certification regime tackles those problems head on. First, it focuses regulatory pre-approval on senior managers, the key decision makers at the top of firms. It enhances the accountability of these individuals through statements of responsibilities, documents that give clarity on which senior manager is responsible for each area of the firm’s business, and through the proposed statutory duty of responsibility that requires senior managers to take reasonable steps to prevent breaches of regulations in their areas of responsibility.

[Mark Garnier (Wyre Forest) (Con)]

Does the Minister agree that the senior managers regime will cut through the accountability far more, as the Parliamentary Commission on Banking Standards discovered? The regulatory regime at the time had the effect of forcing senior managers to create ignorance of what was going on within their institutions. The Bill will now absolutely reverse that, so that senior managers must know what is going on within their institutions so that they can take responsibility for infringements of the rules.

[Harriett Baldwin]

My hon. Friend, who was a distinguished member of the Parliamentary Commission on Banking Standards, is right to say that the commission highlighted the fact that the approved persons regime made it very difficult to pin down responsibility. The new regime, with its duty of responsibility clearly articulated —every organisation will have that set out when managers are first appointed and on an annual basis thereafter—is a much stronger regime. It also delivers more flexibility in the regulators’ enforcement powers, enabling them to impose high standards of conduct through rules applying to individuals, including those whom they have not approved. The expansion of the new regime to all authorised financial services firms will enhance personal responsibility for senior managers, as well as providing a more effective and proportionate means of raising the standards of conduct of key staff more broadly.

Given the improvements that the senior managers and certification regime with the statutory duty of responsibility delivers in terms of senior accountability, the reverse burden of proof is simply not necessary. In extending the new regime to all authorised financial services firms, it is important to consider whether, under these new circumstances, the application of the reverse burden of proof to any or all firms is appropriate. Most of the firms to which the regime will now apply are small, and it simply would not be proportionate to apply it to those firms. By retaining it for the banking sector alone, we would raise serious questions of fairness and competition.

Oral Answers to Questions

Debate between Harriett Baldwin and Mark Garnier

Tuesday 19th January 2016 Commons Chamber

[Harriett Baldwin]

I completely agree with the hon. Lady that we need to see the highest levels of conduct from the banking sector. We also need to continue to take steps in terms of our long-term economic plan to secure access to funding for small businesses. That is why we have taken steps to back peer-to-peer lending and extended funding for lending for another two years. We continue to benefit from record low interest rates thanks to our prudent economic management.

[Mark Garnier (Wyre Forest) (Con)]

There has been speculation that the Treasury has influenced the decision by the Financial Conduct Authority. While I think that such speculation is certainly fanciful, it is important to remind the House that the FCA was set up in 2012 as an independent organisation. Does my hon. Friend agree that one way we could underpin the independence of the FCA would be to adopt a similar process to the one we have with the Office for Budget Responsibility, whereby the Treasury Committee can have power of veto over the appointment of the chief executive?

[Harriett Baldwin]

My hon. Friend, who is a very constructive and engaged member of the Treasury Committee, will have the opportunity to ask questions of the acting chief executive and the chair of the FCA on Wednesday. I agree that it is very useful for such a Committee to have pre-appointment hearings with any executive of the FCA.

Capital Markets Union

Debate between Harriett Baldwin and Mark Garnier

Thursday 3rd December 2015 General Committees

[The Chair]

Hon. Members now have until 12.34 pm at the latest to ask questions, subject to my discretion.

[Mark Garnier (Wyre Forest) (Con)]

I thank my hon. Friend the Minister for her statement and I welcome the initiatives that are coming with the capital markets union action plan, but I would like her to reassure the Committee on a number of issues. Clearly what we are discussing is a very good thing, but is there any risk that it might expose us to negative factors, such as a financial transaction tax, which we might have to levy as part of a capital markets union across the whole EU? In addition, there are issues such as the location of clearing houses. Other important factors also need to be considered, such as how this issue relates to our proposals to secure our interest outside, not inside the eurozone and what effect the initiative might have on negotiations ahead of the referendum next year.

[Harriett Baldwin]

Let me take those points in turn. As a distinguished member of the Select Committee on the Treasury, my hon. Friend knows that the UK does not object in principle to financial transaction taxes. The UK has a financial transaction tax on stocks that are bought in the UK. However, the Government are concerned about the application of a financial transaction tax on instruments that could be traded elsewhere in the world, because if it were applied to something that is easily mobile and can be moved quickly to another jurisdiction, that is what would happen. There are no proposals in the capital markets union steps outlined today to harmonise taxation in any way. The Government stand strongly on our belief that taxation is a matter for member states and we continue to argue that case.

On the more general points about renegotiation and the Prime Minister’s letter to Donald Tusk, it is clear that the European Union needs to address the fact that nine countries continue to have their own currencies and 19 have chosen to adopt the euro. There is absolutely no prospect of the UK ever joining the euro, so as part of the renegotiation we need to make it clear across the 28 EU countries that positive initiatives such as this on capital markets must reflect the fact that this is a multi-currency single market for capital. We will fight vigorously against any proposals that threaten that. That is a key part of the renegotiation.

Finance Bill (Third sitting)

Debate between Harriett Baldwin and Mark Garnier

Tuesday 13th October 2015 Public Bill Committees

[Harriett Baldwin]

Let me answer the hon. Gentleman’s question by agreeing that clause 18, given the way it is worded, applies only to banks. Clearly, it was introduced in response to the fact that the scale of bank compensation, to which I referred in my opening remarks, has been so significant. More than £25 billion has already been paid out, which has had a material and meaningful impact on the corporation tax receipts of Her Majesty’s Treasury. We have always been clear that we want banks to make a fair contribution to their historic costs and their potential impact on future risks to the economy.

The hon. Gentleman asked about compensation relating to the Volkswagen emissions scandal, which, as he is right to highlight, is a complete scandal. There is currently no intention to extend this measure. It is obviously early days in terms of the full scale of potential actions regarding Volkswagen, in particular Volkswagen in the UK and where the company pays corporation tax. However, I can assure the hon. Gentleman that the Government reserve the right to act decisively through legislation such as Finance Bills when they need to take steps to protect the public finances.

[Mark Garnier (Wyre Forest) (Con)]

On a point of clarification, the Minister mentioned that the costs of expenses incurred in addition to fines would also not be tax deductible. As she knows, under a section 166 agreement, the Financial Conduct Authority can ask a bank, at its own expense, to investigate an alleged misdemeanour. As I understand it from what she is saying, if that results in a fine, the section 166 cost is not tax deductible, but what would happen if it did not result in a fine and came off with a negative result? Would the section 166 undertaking be recoverable under tax?

[Harriett Baldwin]

My hon. Friend speaks with great insight and authority from his position on the Select Committee on the Treasury. I can explain to him that these measures are designed to tackle the material costs of compensation that are reflected, or provisioned for, in a bank’s accounts. In addition to that, a further 10% for the general costs of administration is attached. Were the costs that my hon. Friend refers to significant enough to require provision in the company’s accounts, they would be captured by this measure.

Question put and agreed to.

Clause 18 accordingly ordered to stand part of the Bill.

Clause 19

Banks established under Savings Bank (Scotland) Act 1819: loss allowance

Question proposed, That the clause stand part of the Bill.

Royal Bank of Scotland

Debate between Harriett Baldwin and Mark Garnier

Thursday 11th June 2015 Commons Chamber

[Harriett Baldwin]

What can I say? It is extraordinary. I do not suppose we heard that kind of rant when the former Member for Kirkcaldy and Cowdenbeath was intervening in the banking sector. Perhaps the hon. Gentleman has not noticed that, in the single vote on legislation on Second Reading we have had in this Parliament, the Government won by a majority of 491. [Interruption.]

[Mark Garnier (Wyre Forest) (Con)]

When the hon. Member for Bolsover (Mr Skinner) has finished, may I welcome the Minister to her place? She brings with her a great wealth of experience from the City. Part of that wealth of experience is a full knowledge of the sunk cost fallacy. Does she agree that it is completely ludicrous to say that an investment decision made in 2015 should be based solely on the information known in 2008, and that that view betrays a staggering lack of knowledge about the investment process among those opposed to selling the stake in RBS at potentially a loss?

[Harriett Baldwin]

I thank my hon. Friend and constituency neighbour for his question, which shows his depth of knowledge. He is right. In my years of managing portfolios, what I paid for investments in the first place was a fact, but managers also have to factor in the future. None of us has a crystal ball. My hon. Friend’s words are wisely taken.

Banking

Debate between Harriett Baldwin and Mark Garnier

Wednesday 15th January 2014 Commons Chamber

[Harriett Baldwin (West Worcestershire) (Con)]

It is a pleasure to follow the hon. Member for Linlithgow and East Falkirk (Michael Connarty). I, too, encourage many of my small businesses to look around and to act as customers. They do not have to stay with the bank they have been with since they were students.

I could not believe the bare-faced cheek of the Opposition motion on the Order Paper when I read it this morning. I am sure you felt the same, too, Madam Deputy Speaker, because you will recall—in your very impartial way—the state of the banking sector when this Government came to power. It is worth recalling the mess that we had to deal with when we took over. We had had the first run on a bank in this country for well over 100 years; we had had the biggest banking failure in the world; and we had had a decision, taken under conditions of panic by the former Chancellor and Prime Minister, effectively to nationalise large parts of the banking system. The Opposition motion should acknowledge that that was a deliberate decision. The natural course of events under capitalism would have been for those banks to fail, for all their employees to lose their jobs and for the branches in all our constituencies to close, followed by a restructuring process taking place outside state ownership. Instead, we have effectively perverted the course of capitalism, and that was a deliberate choice.

[Mark Garnier (Wyre Forest) (Con)]

Will my hon. Friend remind the House who the architect of the Financial Services and Markets Act 2000 was? That Act set up the Financial Services Authority, the regulator that manifestly failed to regulate the banks properly, which allowed the collapse to happen. Will she also remind us who the City Minister was at the time of the banking collapse?

[Harriett Baldwin]

I think I am right in saying that the then City Minister is now the shadow Chancellor. My hon. Friend rightly reminds us that the regulatory architecture that allowed this disaster to occur was also set up by the previous Government. Having been regulated by that regulator for many years, I know how important it is that the regulation of banks has been returned to the Bank of England. That is important because the Bank of England sees the canary in the coal mine when banks have problems with day-to-day liquidity. The Bank of England was able to see such problems in the run-up to the crash, whereas the Financial Services Authority, in its lofty headquarters in Canary Wharf, was at one remove from that, and there was no ability to join up the reaction. My hon. Friend makes an incredibly important point.

At the start of this Parliament, our Government inherited, in effect, a state-owned oligopoly in the banking system, and that is not a good place to be if we want to achieve a competitive and healthy banking system. The Government have embarked on a long-term economic plan to reform the banking system and make it more responsive to the needs of businesses and consumers up and down the land. That cannot be done overnight—it takes time. Step No. 1 was to reform the system of financial regulation. That was an extremely thorough and elaborate process, involving many people from within this House and the other place, and as of last year we had the final enactment and implementation. So we have taken some difficult and long-term decisions to reform the regulatory architecture in a way that will make it impossible for this sort of crisis to occur in the future.

Secondly, we have established a long-term economic plan for people and for businesses in this country. We have reformed the way in which the economy is working: we have lowered the cost of mortgages for home owners; we have lowered the cost of government for council tax payers; and we have lowered the cost of fuel over and above what the Opposition planned, so that people who drive to work do not have to pay that extra £11 in tax that had been planned for them.

Thirdly, I come to the final piece of this journey in passing on to future generations a banking sector that is, once again, fit for purpose: addressing this problem of the state-owned oligopoly. We cannot restructure the failed banks effectively within the Government’s ownership, and the best way to say that we have closed this terrible chapter that we inherited in the banking system will be by privatising the banks that are publicly owned and returning them to the private sector. We have started on that with the sale of the first tranche of Lloyds shares. I sincerely hope that the Minister will be able to reassure us that it is the Government’s plan to return Lloyds shares to the private sector.

I also argue that it is in the best interests of the economy and the country that we move now to return RBS, whose share price is still well below that paid by the former Prime Minister for its shares, to the private sector, even if that means recognising and crystallising a loss which is the price we pay for Labour’s banking failure. At the moment we are in the worst of all possible worlds: we have a system where we need to allow new entrants to come into the space, but a large semi-state-owned dinosaur is taking up a lot of market share. It would be better for that to be restructured effectively within the private sector.

My argument today is that the Government need to get out of the banking business as quickly as possible. It is not the role of government to be setting the compensation of every banker in this country. The Government must set the framework and the regulation, but this level of micromanagement is a function—a symptom—of the terrible inheritance that we received. By getting out, we must recognise that we will reform the banking sector for our children and our grandchildren. It will mean that those banks will then restructure within the private sector, and the socialists will never be able to get their hands back on running a large sector of our economy.

School Funding (Worcestershire)

Debate between Harriett Baldwin and Mark Garnier

Tuesday 23rd October 2012 Westminster Hall

[Harriett Baldwin (West Worcestershire) (Con)]

It is a pleasure to speak under your chairmanship, Mr Weir. I should start by placing on record my interest in this matter as a governor and associate governor of Hallow primary school in my constituency for many years.

Worcestershire is one of the lowest-funded counties in the country for education. It is 147th out of 151 for per pupil funding and a long-standing member of the f40 group. According to the National Governors Association, the guaranteed unit of funding for pupils in Birmingham is £5,689, yet in neighbouring Worcestershire it is only £4,601—a difference of 20%. That has been going on for years. Mrs Susan Warner, head teacher of Lindridge primary school, said to me in one of the many letters that I have received on the subject:

“There is very little reasoning behind this unfair distribution and it appears to be purely historic, with no-one really understanding how the allocations were made in the first place.”

Last year, my right hon. Friend the Secretary of State signalled his intention to deal with the national unfairness of the school funding formula with “Consultation on School Funding Reform: Proposals on a Fairer Funding System”. That was welcome, but in an environment in which the overall school budget is only rising with inflation, it apparently will not be implemented this side of 2015.

In the meantime, the Department has decided to simplify the allocation formula for the direct schools grant, replacing the outdated and unfair national formula with a clearer one by reducing the number of allowable factors from 40 to a maximum of 12. The principle of a single flat amount per pupil in each stage of education from primary to sixth form makes sense. It is intuitive and, given that 80% to 85% of the cost of each school place relates to the salaries of teachers whose rates are set nationally, it makes sense to have a per pupil amount of funding that is broadly the same nationally.

[Mark Garnier (Wyre Forest) (Con)]

I congratulate my hon. Friend on securing this important and useful debate for the county of Worcestershire. She talks about the ratio of staff costs being 80% to 85%, but in Wyre Forest we see that rising as high as 95% as more experienced staff go up the internal pay scale. That puts even more pressure on schools locally to try to perform with these very limited budgets.

[Harriett Baldwin]

I thank my honourable constituency neighbour for that observation. Staff costs certainly form by far the largest part of a school budget. It makes sense to have money follow the pupil, as that gives a clear signal to schools that they will do better if they can attract more pupils. The pupil premium, which has been welcomed at £600 per pupil on free school meals, will be even more welcome in Worcestershire when it is increased from 2013 by 50% and set at £900 per pupil. As the pupil premium now links to the pupil level the concept of income deprivation, it stands to reason that the main pupil funding allocation should be set more equally at national level as well. If the pupil premium is a national amount, why should not the main per pupil amount be more equal, too?

Kidderminster Enterprise Zone

Debate between Harriett Baldwin and Mark Garnier

Wednesday 15th June 2011 Commons Chamber

[Mark Garnier]

My hon. Friend makes a good point; this is about the whole of Worcestershire and it is incredibly important that we work together for this important opportunity.

[Harriett Baldwin (West Worcestershire) (Con)]

I thank my hon. Friend and neighbour for securing this extremely useful debate. Does he agree that developing the Kidderminster enterprise zone would be extremely beneficial, particularly for those in the north of my constituency, because it would be so easy for them to travel to Kidderminster for work?

[Mark Garnier]

My hon. Friend makes a very good point. The whole point about an enterprise zone is that it will not only help people in the immediate vicinity, but attract many people and a lot of economic activity from a fairly wide area—a point I will develop later in my speech. The economy of the south of the county looks to the rural and research-based drivers in her constituency, and the north of the county looks to the black country as its engine for growth. It is for this reason that strengthening the advanced manufacturing base in the north of the county will draw down the manufacturing prosperity of the black country into Worcestershire.

The issues Worcestershire faces are important and the LEP has already got to grips with the major economic priorities and challenges that the county will face in the coming years. Crucially, private sector employment shrunk over the past decade by 1%. This trend was more marked in the north of the county, with Kidderminster seeing an 8% reduction in private sector employment and Redditch seeing a 14% reduction. That said, Redditch has a greater proportion of manufacturing jobs in the region, which is encouraging.

Moreover, work by the West Midlands Regional Observatory shows that Kidderminster and, to a lesser extent, Redditch suffer from problems relating to longer-term restructuring and job losses from the contraction of their industrial base, lower employment rates and higher claimant levels, especially among young people, and a higher proportion of the working-age population having no qualifications at all. To deal with those issues, the LEP sees restructuring the local economy away from public sector jobs, supporting and growing the tourism industry, and building on the industrial assets in the north as the key priorities. It was with this in mind that the Worcestershire LEP identified Kidderminster as the unanimous option for the Worcestershire bid for an enterprise zone.

The town of Kidderminster was once the hub of the world’s carpet industry, with some 20,000 people employed in that key industry as recently as the ’70s and ’80s. Carpets declined as the preferred floor covering, although I am pleased to say that that trend is now in reverse.

Independent Financial Advisers

Debate between Harriett Baldwin and Mark Garnier

Wednesday 20th October 2010 Westminster Hall

[Harriett Baldwin (West Worcestershire) (Con)]

It is a great pleasure to serve under your chairmanship, Mr Caton. I hope the Minister will forgive me for holding this debate on a day when he probably has quite a few other things on. As he knows, however, such debates are a bit of a lottery, and I was not expecting mine to come up today.

According to the Library, this is the first time that the regulation of independent financial advisers has been debated in a Chamber of the House, and we have to ask why. Colleagues on the Treasury Committee discussed the topic yesterday, and I have put my toe in the water by asking for a 30-minute debate today. Given the interest that I have encountered in the issue—I have had a binder full of correspondence since the debate was announced last Wednesday—I anticipate that this is not the last that we will hear of it.

[Mark Garnier (Wyre Forest) (Con)]

The interest that I have encountered is certainly unprecedented, and I too have a very large binder. Will my hon. Friend work with me to secure a Back-Bench business debate in which we might have an opportunity to debate the issue for up to three hours on the Floor of the House?

[Harriett Baldwin]

Yes. I thank my hon. Friend for that suggestion and I would be delighted to support it.

IFAs are regulated by the soon-to-be-abolished Financial Services Authority, the independent statutory regulator set up by the previous Government. Banking supervision is to return to the Bank of England, while many other regulatory functions will go to a new consumer protection body. Thus, this seems an opportune time for the House to debate some of the implications of those policies and some of the functions involved.

Fewer people are benefiting from defined-benefit pension schemes. More individuals are being asked to contact an IFA to obtain advice. Many will receive lump sums from an inheritance or perhaps a redundancy payout, and they will need professional advice to make the most of them. With auto-enrolment beginning in a few years’ time, people will also have to decide whether they need to opt out. Many younger people will leave university with student loans. Many older people will need to buy annuities or to make arrangements to pay for long-term care. All those transactions require some financial advice.