UK Gross Domestic Product

Jim Shannon Excerpts

Monday 13th June 2022 Commons Chamber

[John Glen]

I do not think Stoke-on-Trent could have a better advocate than my hon. Friend, with his passionate desire to highlight the successes going on in his constituency. I absolutely agree that it is that positivity, and focusing on interventions that make a real difference to people who live in his community, that people will remember as we move forward.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his answers. In Strangford, small and medium-sized businesses are the backbone of our society. Some of them are crumbling at present due to high transport costs, which are heightened in Northern Ireland due to the Northern Ireland protocol. Can he confirm whether the Chancellor and the Treasury will follow other nations in substantially reducing fuel duty to aid transport costs as well as disposable incomes for families, so that money can go back into the local economy and everyone will gain?

[John Glen]

The hon. Gentleman makes a reasonable point about the challenges facing the rural economy, of which I know that he has great personal experience and experience in his constituency. That is why, as we made clear, there will be an additional £500 million to supplement the household support fund and bring it to a total of £1.5 billion, so that local authorities can give additional money to those most affected where existing measures have not been helpful.

Economy Update

Jim Shannon Excerpts

Thursday 26th May 2022 Commons Chamber

[Rishi Sunak]

As I have said, the Energy Secretary is extensively engaged with both Ofcom and the industry to make sure that we can support people in the best way.

[Jim Shannon (Strangford) (DUP)]

I thank the Chancellor very much for his statement and for the substantial financial help, which is most welcome. Northern Ireland will directly benefit, as he has said, and I thank him for that. Will the Chancellor confirm that there is a mechanism that ensures the funding goes to the working poor who are on the threshold of universal credit, but do not quite make it? Will he consider realigning the threshold for universal credit with the inflation rate, which would enable those on the border of poverty to stay on their feet and not be knocked over?

[Rishi Sunak]

That is why, as well as the very generous support for those on means-tested benefits, we have put in place universal support to ensure that all households receive an extra £200 on top of the £200 we have announced. That will help those people, as will the discretionary fund that we have established.

Cost of Living: Fiscal Approach

Jim Shannon Excerpts

Wednesday 25th May 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

Thank you for calling me, Mr Twigg. I am very pleased to speak in the debate, and I congratulate the hon. Member for Barnsley Central (Dan Jarvis) on leading it and setting the scene.

I will give some examples of how the cost of living crisis is affecting my constituents. There are people in my constituency who have to choose between putting on their heating and feeding their children. Increasingly, they have to decide whether they can help their widowed, elderly parent to heat their home as well. These decisions are happening in my constituency each and every day, and I have no doubt whatever that they are the same everywhere else.

Inflation has reached its highest rate since 1982, and gas prices have increased by 95%. Consumer prices are up by 9%, electricity prices are up by 54%, and 11% of the working-age population of Northern Ireland live in absolute poverty, so I look to the Minister for help. A constituent has informed me that she pays her gas bill by direct debit, which means that if she does not put the money in, she does not get gas. She has gone from paying £54 a month to £178 a month, and her electricity bill has risen three times in the past year. She and her husband both work full time, and even with her husband’s second job it is impossible to make ends meet. I would probably refer to them as the middle-class poor. She has a seven-year-old, who is a talented young musician. Even if the violin is rented, there is still money to be spent on the girl. My constituent is on the threshold for aid, but the Government have refused to lift the threshold in line with inflation, and she simply does not have the money.

At a time when costs are skyrocketing, people in employment are paying more national insurance than ever before and it cannot be sustained. After the luxury of a music lesson, there is a school visit, the school play or other essential extracurricular activities. The middle-class working poor have been under incredible pressure for the last few months, but they are even more so now. Those currently earning above £25,000 will pay more national insurance contributions and income tax after 2022-23. The Government keep on telling us that they are helping, but would they consider delaying the increased payments for now, given that it would have a significant impact on workers who are already struggling? The Ofgem chief has referred to the energy price cap, which is expected to rise by £830 and reach £2,800 in October. Again, we need reassurances about the long-term strategy to enable us to get beyond the next six months.

No longer are working families saving to go on a foreign holiday or putting in new kitchen cupboards. They are living from hand to mouth. As that is the case, I believe that the Government can and must intercede in a constructive and practical way. I have asked about delaying the increase in national insurance contributions, and I have asked for a six-month strategy to enable people to have some idea of what the costs will be. In the next six months, prices will rise by £600.

Tackling Short-term and Long-term Cost of Living Increases

Jim Shannon Excerpts

Tuesday 17th May 2022 Commons Chamber

[Edward Miliband]

I completely agree with the hon. Lady. At every step of the way, the Government have had the chance to act, and they have not done so.

[Jim Shannon (Strangford) (DUP)]

The figures for Northern Ireland are very interesting: 241,000 people—13% of people—in Northern Ireland are in poverty. Some 17% of all children, 14% of all pensioners and 11% of the whole working-age population are in poverty. Those figures scare me; do they scare the right hon. Gentleman?

[Edward Miliband]

The hon. Gentleman is absolutely right. I have been around politics for a long time, as the House knows, but I cannot remember—nobody in the House can remember—facing the kind of emergency that we do currently.

The spring statement was the most recent chance for the Chancellor to redeem himself; it was just days before the April energy price rise came into effect. It was apparent to everyone across this House and in the country that what he had offered was woefully inadequate. People were literally pleading with him to do more on energy bills, but he just doubled down on his failure. He has had three chances in the past seven months, and none of his responses has been equal to the emergency. The truth about this Chancellor is that at every step of the way he has been in denial, slow to act and wholly out of touch in his response.

National Insurance Contributions (Increase of Thresholds) Bill

Jim Shannon Excerpts

2nd reading
Thursday 24th March 2022 Commons Chamber

[Mr Clarke]

I thank my hon. Friend for her question. There is no doubt at all that we have targeted the action that we have taken at the people who need it the most. That is why this Bill is so important, as I will explain, but it is also why we have taken the action on fuel duty, universal credit, the household support fund and TV licences—all things that are designed to help people whose incomes are most stretched at what is a difficult time for families up and down the country.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for the answers that he is giving. While I absolutely welcome the increase in the threshold for national insurance contributions to help those on the periphery, I say to him gently: does he not see that this should equally apply to child benefit and universal credit, and since it makes perfect sense for one, it must make perfect sense for all working families so as to take them away from the absolute poverty I have spoken about in the Chamber before that is so close to so many hard-working families?

[Mr Clarke]

The hon. Gentleman is a fantastic contributor to this place and he takes a keen interest in looking after people, including the most vulnerable people, in his constituency. I absolutely recognise that we want to make sure that families right across the income spectrum are supported. That is why, as I say, we have put in place a package of measures that has at its heart a desire to make sure that we have a strong safety net in place. We have to consider all the decisions we take in the round. To put it in some context, the United Kingdom spends £243 billion a year on our wider welfare spend, including pensions. This is a country where we do a huge amount to make sure that everyone is supported. We have to consider all our decisions in the context of both wider affordability and how the system operates. The welfare system always operates on the basis of an uprating in September for changes in the ensuing April. If there is high inflation during the course of 2022, as is forecast, that will be reflected in the uprating figures for April 2023, and the triple lock will be in place to protect families.

Financial Statement

Jim Shannon Excerpts

Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

We are grateful to carers everywhere for the fantastic job that they do. I am confident that they and their families will benefit from the policies that we have announced today.

[Jim Shannon (Strangford) (DUP)]

I thank the Chancellor for the help that he has given to my constituents. However, a constituent of mine has recently been in touch to say that the removal of red diesel would see her business experiencing an unsustainable increase in the cost of sales by some £400,000 annually. I am not being churlish, but does the Chancellor agree that this increase has come at a breaking point for businesses, and will he make allowances for the continuation of red diesel until the economy gets back on its feet?

[Rishi Sunak]

These changes were announced two years ago. They were consulted on and there are various exemptions in place, particularly to protect agriculture, which I know will be important to the hon. Gentleman. None the less, it is right that we go ahead with the changes as legislated.

Midas Financial Solutions Collapse

Jim Shannon Excerpts

Tuesday 22nd March 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

Thank you, Mr Stringer, for allowing me to speak on this issue. I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on bringing it forward. As always, he set the scene very well for his constituents, who have lost out, and he was passionate in asking for answers to the questions he put forward. It is pleasing to see the Minister in his place. He always comes with a positive attitude to these issues. He understands them well and we look forward to his response. Hopefully, he can address some of the issues we have.

It is also a pleasure to see the shadow Minister, the hon. Member for Hampstead and Kilburn (Tulip Siddiq), in her place. Like others, I want to put on record my thanks to her for her hard work and endeavours to bring home her constituent, Nazanin Zaghari-Ratcliffe, and others. That campaign has been marvellous. We all admire the hon. Lady very much, and we see her perseverance. If she is adding her weight to this debate, I am sure that will be enough to push it over the line— no pressure on the Minister. Again, I thank her so much.

The case of Midas Financial Solutions is disturbing to the extreme. My heart goes out to all those hard-working people who trusted a financial adviser and have lost their money. That was very well illustrated by the right hon. Member for Orkney and Shetland. From a 22-year-old to two people who have died, there appear to be almost 200 victims. Some of them lost a few thousand, but that was all they had. Those people invested thinking that it would make their money last for their old age. Unfortunately, it did not. Others lost almost £500,000. I have a number of questions for the Minister, but one is whether the families of those who died get compensation?

The sheer scale of the Ponzi scheme is mind-boggling, yet the shortcomings and the evidential base are well documented. People are out of pocket. In debates on other issues, the Minister has tried hard to respond, but we need to ensure that the investors who are most out of pocket—I think 95 is the final figure—can be reimbursed. What can be done to ensure that lessons are learned from what we are bringing to the attention of the Minister and the Government?

When I read the background to the case, one thing became glaringly obvious: the FCA managed to wash its hands of the entire scheme until a judge in the civil case underlined the fact that this was truly an investment scheme and therefore should be accepted into the Financial Services Compensation Scheme. Why did it take a civil case to bring this within the FCA scheme remit? What steps do we need to take to ensure that this does not happen to anyone else and that people can access the scheme, which is designed to help, without having to fund a civil case? It is not always possible for ordinary folk who have already lost the bulk or all of their moneys to pursue a legal case. They must feel frustration; they look to the Government and the system to protect them and to ensure that their investments are okay, ever mindful that there are some in this world who would take advantage of people trying to build something for their future.

My next point runs on from that. It is grossly unfair that those 95 people must pay from their limited recoup to cover legal fees of £1.5 million—or perhaps £2 million, as the right hon. Gentleman said.

[Mr Carmichael]

I can actually give the hon. Gentleman the figure now: it is £1,903,619.92.

[Jim Shannon]

There we have it. The hon. Member for Hampstead and Kilburn and I now know that the figure is £1.9-odd million in legal fees. They will pay that out of the same amount as those who did not pay into the court case will receive. We can understand the frustration of those who paid for these things to be chased up, given that others have the advantage of not having paid. There is an anomaly. Some lost out, but the legal fees then follow. Surely, the public purse should have paid, rather than people who have already lost every penny of their savings.

The head of a regulated company unscrupulously and fraudulently stole millions of pounds to furnish his lavish lifestyle. His own wife has been instrumental in helping the victims, and that is one of the good things that has come out of this, but her husband stole from his customers. Why has the body set up specifically to look into these things been so behind the door in fulfilling its role? How can we ensure that this loophole is removed so that people have full help and assistance in future? There are lessons to be learned that we can use for the future. We need to ensure that people who invest in these pension schemes do not find themselves out of pocket when the time comes.

The background article I read in The Courier highlighted the fact that the warning signals regarding this man were ignored or overlooked by the FCA. If they had not been, that may have prevented more people from being duped. What is being done to prevent these things from ever being overlooked again? People want the assurance and the confidence when they invest that the company they are dealing with is safe and secure. What has been learned by the Government and the Minister? What legal measures will be put in place to ensure this does not happen again?

I conclude by thanking the right hon. Member for Orkney and Shetland for bringing the debate forward. It is important that these issues are debated in Westminster Hall or the main Chamber. The right hon. Gentleman has been involved in these issues on behalf of others in the past, and we have spoken in many debates together. Our job is always to illustrate examples where, unfortunately, things have gone wrong, but I respectfully say to the Minister that his job and that of the Government is to ensure that these things do not happen again.

Through the debate, we are seeking not only to get justice for the right hon. Gentleman’s constituents and hundreds of others who have lost out, but to ensure the Government close the gaps in support for victims and in the regulation of the system. What has been done legislatively to ensure this does not happen again? This failing has ruined the lives of hundreds of people, when it could have been prevented. It is turning some people’s comfortable retirement into purgatory, and we must address that now.

Cost of Living Increases

Jim Shannon Excerpts

Wednesday 16th March 2022 Commons Chamber

[Helen Whately]

If my right hon. Friend will give me a little time, I will come on to the importance of growth to our economy, which is the right answer for the longer term in ensuring that we improve people’s standard of living.

Pressures on household finances are not generally the consequence of one single price rise; they are typically affected by an amalgam of different factors. Remedying the pressure on households therefore requires taking action on a range of fronts, not just on energy bills. Again and again, that is what this Government have done and are doing. We are acting in dozens of ways to support working families. For instance, over the winter, the £500 million household support fund has helped vulnerable households with the cost of essentials such as food, clothing and utilities. Local authorities in England have allocated the lion’s share of that funding to ensuring that it reached those who needed it most, with 50% ring-fenced for households with children. Additional funding was allocated to the devolved Administrations, including the Scottish Government, in the usual way.

We have also reduced the universal credit taper rate and increased universal credit work allowances by £500 to ensure that work pays. This is essentially a £2 billion tax cut for the lowest paid in society. It is helping around 2 million households to keep an average of an extra £1,000 per annum in their pocket. Next month, the national living wage is increasing by 6.6% to £9.50 an hour, again benefiting more than 2 million workers and meaning an increase of over £1,000 in the annual earnings of a full-time worker on the national living wage. And we are committed to going further, so the national living wage will reach two thirds of median earnings for those over 21 by 2024, provided that economic conditions allow. We have supported working families in other ways too: doubling free childcare for eligible parents, which is worth around £5,000 per child every year, and introducing tax-free childcare, which will provide working parents with 20% support on childcare costs up to £10,000.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for what she is saying, and I welcome the £400 million that is going to Northern Ireland under the Barnett consequentials. The Republic of Ireland has suspended VAT on fuel in the short term to try to address the issue now. Can I ask the Minister whether any discussions have taken place with the Chancellor to see whether that could be done for us here in this great United Kingdom?

[Helen Whately]

I am not sure I heard exactly the specifics of the hon. Gentleman’s question, but in general there is already a lower VAT rate on fuel. Overall, however, if the question is whether we should have no VAT on fuel, the Chancellor has spoken about how that would in fact disproportionately benefit wealthier households, so it simply cannot be the right thing to do when it is the less wealthy households who face the greatest challenges in paying their energy bills.

The list of what we are doing in many different ways to help households goes on and on. Increasing fuel prices are indeed a global issue, not unique to the UK. The price of crude oil has increased sharply over the past year, increasing the price consumers pay at the pump. That is why we have taken action by freezing fuel duty; drivers are being protected by the 12th consecutive year of fuel duty freezes, with the average car driver paying around £15 less fuel duty per tank, saving them a cumulative £1,900 since 2011 compared with the pre-2010 fuel escalator.

On housing, the Government are maintaining the increase to local housing allowance rates for private renters on universal credit and housing benefit in cash terms. That increase was worth an extra £600 on average in 2020-21 for more than 1.5 million households. An additional £140 million has been provided this year for discretionary housing payments for those eligible for housing support who need extra help. All that is on top of existing support for families through the welfare system, which this year will add up to £240 billion of support, including £41 billion on universal credit and £105 billion through the state pension.

Turning specifically to Scotland, on top of our energy bill support scheme, which applies there, the council tax measure in England means the Scottish Government are receiving almost £300 million more than would otherwise be the case, which they can use towards cost of living interventions.

This Government will always do what we can to help those in need, and our actions speak for themselves, but we are also determined to help people to help themselves. The Government’s plan for jobs is helping people into work and giving them the skills they need to progress and earn more, which is the best approach to raising living standards. The Government are building on the success of the plan for jobs with a total of £6 billion on labour market support for the three years to 2024-25, providing targeted additional support to help at-risk groups find work, including younger and older age groups, the long-term unemployed and people with disabilities.

Why are we doing that? Because we know that work is the best way for people to get on, to improve their lives and support their families, and because households on universal credit are at least £6,000 a year better off in full-time work than out of work.

Bank Branch Closures

Jim Shannon Excerpts

Wednesday 16th March 2022 Commons Chamber

[Ms Anum Qaisar (Airdrie and Shotts) (SNP)]

Thank you, Mr Deputy Speaker. I am aware that it is not necessarily a requirement to thank the Chair in an Adjournment debate, but this is my very first Adjournment debate and it really is a pleasure to serve under your chairship.

The subject that I am raising today is so important and so topical: just today, HSBC has announced that it is closing 69 stores across the four nations. My constituency of Airdrie and Shotts is centrally located; in fact, the wee town of Harthill is pretty much halfway between Glasgow and Edinburgh. There is therefore an assumption that my constituents can travel around easily, so if a local service such as a bank closes, they can simply hop on a bus. That is not the case.

In September last year, Virgin Money announced that it was closing three of its Lanarkshire stores: Airdrie, Cumbernauld and East Kilbride. The Airdrie store closed its doors in January this year. My constituents were told that they could travel from Airdrie town centre to the nearest branch in Baillieston. That is either 20 minutes by car or a bus journey of an hour, and for that to work, we would have to assume that people do not live in places such as Greengairs, Petersburn or Chapelhall. Essentially, my constituents who do not live in Airdrie town centre have considerable journeys to make. That poses additional barriers to those who are either financially vulnerable or struggling with mobility.

When I spoke last year to officials from Virgin Money, which is the rebranded former Clydesdale branch, they told me that the closures were in response to changing customer demand and a reduction in footfall. That did not really make sense to me, because every single bank branch in the country saw a change in customer demand and a reduction in footfall. Why? Because we were in the midst of a global pandemic and in lockdown.

When we think of banking hubs, we also think of London, the big city. However, my constituency has a proud 181-year history as a banking hub, and Airdrie Savings Bank, founded in 1835, had its own long and proud history in north Lanarkshire and, indeed, throughout Scotland. It was a small commercial bank which operated on mutual principles and had no shareholders, being governed instead by a board of trustees.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on securing the debate. We have discussed banks here on many occasions. These closures affect the most vulnerable in society, the elderly and others who have no access to modern technology. They cannot simply jump online to do their banking. The banks make massive profits every year, and they have an obligation to look after the customers who have, in fact, built them up.

[Ms Qaisar]

Those are important matters, and I will come to them later in my speech.

I vividly remember being dragged to the high street when I was a wee girl growing up in Motherwell. Adult Anum does not necessarily have to be dragged to the high street, but as a child I hated it. My mum had her routine: she would go to Asda and get her messages, and then she would pop into Airdrie Savings Bank. Popping into the bank meant that she could get all her banking issues sorted out, but bank branch staff tend to become known to locals, so Mum would often stand and have a wee blether with them. However, this small commercial bank ceased trading entirely and closed its doors in 2017. Royal Bank of Scotland in Graham Street closed its doors in 2018, and Barclays shut six years ago. As of today, Airdrie is serviced by only one bank, Bank of Scotland, and one building society, Nationwide. It is the same story in Shotts. In 2016 Royal Bank of Scotland shut down, and Airdrie Savings Bank closed its Shotts branch back in 2015. RBS does send a van to the Co-op car park once a week for an hour, but outwith those times people have to head for a nearby town such as Wishaw.

National Insurance Contributions Increase

Jim Shannon Excerpts

Tuesday 8th March 2022 Commons Chamber

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

rose—

[Jim Shannon (Strangford) (DUP)]

rose—

[Rachel Reeves]

I will give way to the hon. Lady, and then to the hon. Gentleman.

--- Later in debate ---

[Rachel Reeves]

Sorry, I said I would give way to the hon. Member for Strangford (Jim Shannon). I will do that and then I will make a little more progress.

[Jim Shannon]

I thank the hon. Lady for putting forward her point of view. My party and I supported her party on a previous Opposition day in relation to a tax on oil and gas. Today the hon. Lady is, on behalf of the Opposition, putting forward something that is equally important. In my constituency of Strangford, fuel prices are up 50% and grocery prices are up between 25% and 30%. Does she agree that while for some the national insurance contributions increase will be a weightless straw, it could well be the straw that breaks the camel’s back?

[Rachel Reeves]

The hon. Gentleman speaks powerfully on behalf of his constituents, who are struggling with the double whammy of prices increasing, particularly gas and electricity bills, at the same time as this Government are piling on pressure after pressure with higher taxes on the same people who are paying those higher bills. He is absolutely right that people can only take so much, and the national insurance contribution tax hike is, as he says, potentially the straw that breaks the camel’s back.

Politics is about priorities, and it is about choices. So who has the Chancellor chosen to protect—not to tax more? Those who earn huge incomes from a large portfolio of buy-to-let properties or those making large sums from selling stocks and shares will not pay a penny more tax on that income. The super-rich will not be paying more. Roman Abramovich and billionaire oligarchs are not being made to pay more tax. In fact, some of those trying to relinquish their assets now appear to be using offshore vehicles to avoid paying tax. Lubov Chernukhin, wife of Putin’s former finance Minister, and mega-donor to the Tory party, has reportedly lobbied Ministers against higher taxes for the wealthy. As luck would have it, she will not be paying any more tax, unlike people across Britain who work for a living and keep our economy going.