Further Education: St Austell

Jim Shannon Excerpts

Monday 21st October 2019 Commons Chamber

[Steve Double (St Austell and Newquay) (Con)]

It is a joy for me to be able to bring this debate before the House this evening. I want to raise an issue that is very important to residents of St Austell: the future of further education provision in the town.

St Austell is the town where I was born and grew up. It is where I have lived and worked my whole life; I have raised my own family there and indeed was educated there. It is a town of contrasts, and it is a town with much potential.

It has an illustrious history, having been a bit of a boomtown, particularly as the heart of the Cornish china clay industry at its peak, when it was the beating powerhouse of industry in mid-Cornwall. It was an international exporter; it exported Cornish wares and, indeed, Cornish men and women around the world.

Nowadays the china clay, although still very important, does not perhaps have the impact it used to have, but we are still famous for the international attraction of the Eden Project and also as a bit of a film set. For those who watch “Poldark”, the port scenes are shot in Charlestown, the port nearest St Austell. We are quite used to seeing Ross Poldark around our area.

As well as exporting Cornish goods, St Austell and its hinterland now import hundreds of thousands of tourists every year—people who come to see our stunning bay and our beaches and our picturesque ports, and also to sample some of the amazing food and drink we now produce. We have lots to be proud of, and I am sure there is a bright future for St Austell and for Cornwall as a whole, thanks to the historic levels of investment that the Government are putting in. But along with the positives there are also a number of challenges. There are several wards in St Austell that are among the most deprived in the UK.

St Austell is a populous town for Cornwall; it has the biggest population of any town in Cornwall, and one thing that it has had throughout its history is a rich education provision. It has two very good secondary schools, and I think I am right in saying that one of them is the only state comprehensive school that currently has two former pupils as sitting Members of this House: Poltair school in St Austell is where I and my hon. Friend the Member for Wycombe (Mr Baker) were educated, and we are very proud of that.

Previously St Austell also had two colleges. It had a sixth-form college that served both the secondary schools and also the Mid Cornwall College of Further Education, where I studied for a diploma in business studies way back in the 1980s. Throughout that time it had further education provision that was easily accessible and on the doorstep for those who lived there and wanted to further their education in either of those colleges. Many people, like me, remember those days very fondly.

However, in recent years the two colleges—the sixth-form college and the FE college—merged into one college under the oversight of Cornwall College, having its campus in St Austell, fittingly in the building that was formerly the headquarters of English China Clays; that is one of many Cornwall College campuses across Cornwall.

It is true to say that Cornwall College has faced a number of fairly substantial challenges in recent years, largely through poor leadership and financial mismanagement. Its 2017 post-16 area review report highlighted the fact that it was not financially viable or resilient and that it had weak solvency, but recommended that it should remain a stand-alone college. I am grateful that, as a result of that review, the Government invested £30 million of Government funding in the college to restructure its finances and put it on a more secure footing. In return for receiving that funding, Cornwall College has committed to significantly changing its operating model, a process known as Fresh Start. A modern and secure IT system infrastructure will also be implemented, and there will be investment in exceptional training and learning experiences for students and for businesses.

I am afraid that some of Cornwall College’s challenges still persist, however, and some are the result of a new college, Callywith College, opening in Bodmin just a few years ago. That college is run by the Truro and Penwith College Group, and its opening has led to Cornwall College in St Austell haemorrhaging A-level students to the Bodmin campus. We were told that the reason for Callywith opening was that it would expand the choice of provision across Cornwall. At the time, I had grave reservations about the impact that the new college would have on the Cornwall College campus in St Austell and, sadly, my concerns have proved to be well founded.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for giving way. I spoke to him beforehand in relation to this. Does he recall the 2012 report of the Commission for Rural Communities, which showed the existence of a rural dimension to barriers to training, careers advice and youth services? As the representative of a market town constituency like my own, does he agree that it is essential that these barriers are broken down?

[Steve Double]

I am grateful to the hon. Gentleman for intervening—I would have been disappointed if he had not intervened on me in the Adjournment debate this evening—and he makes a good point. I must admit I am not familiar with the report that he refers to, but I agree that there are a number of barriers to young people in many of our rural market towns getting the training opportunities, education opportunities and further education opportunities that they need in order to fulfil their potential. That is precisely the point I am making tonight. I am seeking to ensure that we protect the opportunities that we currently have in the town of St Austell and, hopefully, improve them.

As I was saying, the opening of the new Callywith college campus has had a detrimental impact on Cornwall College in St Austell. We will not improve choice for students if the opening of a new college results in the college in their own town stopping the provision of A-level courses, which is precisely what happened earlier this year. In August, the day before the GCSE results were released, Cornwall College in St Austell announced that it would no longer be providing A-level courses for new starters. This was due to the falling numbers of students enrolling on the courses.

Apart from the way in which the communication of that decision was handled—being announced at a time when students were anxious enough about getting their GCSE results without having this issue dropped in their lap—the decision has left in doubt the future of long-term provision of A-level courses in St Austell. It cannot be acceptable that the town with the largest population in Cornwall does not have A-level provision locally. At a time when we are encouraging our young people to stay in further education until they are 18, this decision is unhelpful in trying to achieve that end. Moreover, many of the most deprived wards that I referred to earlier are within easy walking distance of the St Austell campus, and those students and their families will now face the challenge of having to pay hundreds of pounds a term, in some cases, for transport to get to either Bodmin or Truro. Additionally, many potential students may be put off doing A-levels if they face a commute of perhaps an hour at the beginning and end of each day. The loss of the A-level courses will be detrimental to social mobility for the young people of St Austell.

I joined colleagues across the House to welcome the Government’s recent announcement of an additional £14 billion for the education system. Many schools across Cornwall will benefit from that additional funding, which will go some way to closing the historical funding gap that schools in Cornwall have faced. I particularly noted the £400 million that will enhance and protect further education provision. It is clear that St Austell’s current and future young people need A-level provision locally in order to fulfil their potential. It is crucial for social mobility that our young people are able to achieve their aspirations and have access to A-level courses.

The provision of further education across Cornwall needs to be reviewed and looked at strategically. Part of that review needs to include a determination to maintain as wide a provision as possible in the town of St Austell. Truro and Penwith College is seeking to expand its provision in Bodmin and to change the status of Callywith College into a free school to enable that expansion. That would mean more than £30 million of DFE free-school investment being handed over to the further education sector. Will the Minister look carefully at the proposals before agreeing to anything and consider the wider impact of any further expansion of Callywith College in Bodmin on the provision of further education by Cornwall College? Having invested tens of millions of pounds in both Cornwall College and Truro and Penwith College, we must carefully consider the best way forward to ensure that the taxpayer gets value for money from that investment.

John Evans is the new principal of Cornwall College. He took up post at the start of last month, and I have spoken to him at length. He needs to be given the opportunity to improve Cornwall College’s performance without the threat of aggressive expansion by another college some 12 miles up the road. If the Minister shares my concerns, we must maintain as broad a further education provision as possible in the town for the sake of social mobility and the future aspirations of St Austell’s young people. Before any decisions are made that will change Callywith College’s status and allow it to expand, will she ensure that the wider impact on further education in mid-Cornwall is carefully considered?

Unregulated Accommodation: 16 to 17-year-olds

Jim Shannon Excerpts

Tuesday 15th October 2019 Commons Chamber

[Andrew Selous (South West Bedfordshire) (Con)]

“This cannot be right.” Those were the words of Dr Jackie Sebire, the assistant chief constable of Bedfordshire police, after her officers had spent four to five days trying to find a 16-year-old boy who had gone missing from his unregulated accommodation in Bedfordshire. Her officers had spent an enormous amount of time and effort to return the child to a provision that was inadequate, in which no local Bedfordshire authority would place one of their own children and for which there was no regulatory oversight.

The standards in the accommodation in which the 16-year-old was placed were so poor that this young man regularly went missing, and shortly afterwards he became involved in organised crime and went on to recruit other young people into organised crime. So we have, in effect a multiplier of misfortune as a result. The Local Government Association and the police are concerned that children are being drawn into organised crime, including county lines, from unregulated homes. About 2,000 16 and 17-year-olds are placed outside their home local authorities in this type of unregulated provision. That is a doubling over the last five years. Around 5,000 children in total are in this type of unregulated provision—a 70% increase in the last decade.

Let me provide some further illustrations of why regulatory oversight is needed urgently. We know from the brilliant investigation undertaken by Sally Chesworth and her team at “Newsnight” that a 16-year-old girl was brought to a room in one of these homes late at night. It was freezing cold and had no bed sheets and no curtains, even though it was a ground-floor room looking straight out on to a road. We know that staff regularly enter rooms without knocking. We know that a 17-year-old girl was hit in the face by a 6-feet male staff member who would not let her speak to the police about the incident. We know that staff members are being abusive. One child was told, “It wouldn’t matter if anyone kills you. No one cares about kids in care.” Members of opposing gangs were sent by one London borough to the same home in Bedfordshire, where one duly stabbed the other.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing this debate to the House. I sought his permission beforehand to make a comment. The Social Care Inspection blog on the gov.uk website states that unregulated care homes

“should be used as a stepping stone to independence, and only ever when it’s in a child’s best interests”.

Given what we now know from the BBC investigation, which concluded that young people were at risk of organised abuse, is it not time for the Government to at least examine the ways in which the regulatory regime governing such accommodation is structured?

[Andrew Selous]

The hon. Gentleman is absolutely right, and I will go on to call for exactly what he has just highlighted to the House.

Many of these homes also have adults up to the age of 25 in them, and we know that drug taking is prevalent in many of them. We know that a young man on bail for knifepoint robbery was placed in a home with 16-year-old girls. We know that two girls were placed alongside a male sex offender, and that one 17-year-old boy was murdered by another resident. The home had not told either sending local authority about an earlier fight between the two boys.

The impact on police forces of the number of missing person incidents from unregulated homes is significant. Police officer availability is an extremely precious resource to local communities. Quite rightly, a missing child is always a high priority for any police force. If there is a significant increase in the episodes of missing children in a police force area, that means that other vulnerable children and adults in the population area of that police force are left much more unprotected than they should be.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 1st October 2019 Commons Chamber

[Mr Clarke]

My right hon. Friend is of course absolutely right that broadband connectivity lies at the heart of a modern economy. It was so welcome to hear my right hon. Friend the Chancellor of the Exchequer yesterday set out how £5 billion of investment is going to be devoted to making sure that we can deliver on the Prime Minister’s pledge to ensure full fibre broadband access by 2025.

[Jim Shannon (Strangford) (DUP)]

Will the Minister outline whether he has considered tax incentives for businesses to take on apprentice staff in administrative roles, with special reference to young people from learning-difficulty backgrounds, who take more time and patience to train? There are simply not enough places available; will the Minister undertake to make places available?

[Mr Clarke]

Again, that is a unifying principle to bring to the House. The Government have done an awful lot to try to promote the uptake of apprentices—we have seen action on things such as national insurance to try to make it more affordable for businesses to employ young people. The Department for Business, Energy and Industrial Strategy is very interested in all the work that goes on around supporting access into work for disabled people and people with learning disabilities, and would be interested to hear more from the hon. Gentleman about those ideas.

High-income Child Benefit Charge

Jim Shannon Excerpts

Tuesday 3rd September 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

Thank you, Mr Hollobone. It is always a pleasure to serve under your chairmanship.

I thank the hon. Member for South Thanet (Craig Mackinlay) for setting the scene with such detail, informationally and correctly. I am here not because I feature in Westminster Hall so regularly but because the issue is important to me and my constituents. I deal with it regularly in my office.

The hon. Gentleman set the scene well with examples of what has happened to his constituents. I would mirror those examples, and I will express similar concerns. It is unfortunate that more Members are not present for the debate, but obviously there are enticements elsewhere and reasons for people’s attention to be committed to the main Chamber. That does not detract in any way from the importance of this issue. I am pleased, as always, to see the Minister in his place. We look forward to hearing his comprehensive response.

The child benefit payments issue is of great concern to many of my constituents. Although many might not qualify for good reason, I will give examples of those who probably should qualify but for the paperwork, the potential penalties for getting it wrong and then having to catch up. That applies not just to child benefit but to tax credits—people fill in a form, their circumstances change in the year and they find themselves owing money back. Tax credits are not the subject of this debate, of course, but I make that comment about what puts people off. When a system is going well, it is marvellous, but when it goes wrong, it can be a real stinker.

Child benefit makes a difference to many families in my constituency. From the outset, I must say that I am an advocate of the current threshold and the importance of having that system. I know of many women who gave up their jobs or went part-time to mind their child and therefore rely almost entirely on the wage of their partner. The weekly child benefit supplement helps with the day-to-day bills that need to be paid. Without that, households would simply not function. The Government might argue that that is not the purpose of the child benefit system, but I think that its purpose is to enable parents to look after their children in whatever way they feel is right.

I am concerned about some cases in which one partner is just over the threshold and has to start to do self-assessments. I know of a few cases in which couples earn well below the £99,000 that they could earn when taken together—for example, one partner on £50,000 and the other on £15,000—but decide to forfeit their child benefit. Over-cautious, and in fear and trepidation, they would rather that than face the hassle and possibly do the paperwork incorrectly. That is wrong—people losing the benefit rather than have the hassle. I am therefore keen to endorse what the hon. Member for South Thanet said and to seek ministerial guidance on how we can help such people.

Something is wrong with a system that sets out to help people genuinely, sincerely and honestly, but fails those who could qualify. How do we enable those people to fit into the system? Some might say that they can afford to live on what they have, but as they put it to me, “We are firmly middle class.” Over the past few years in this House, I have often said that one of the categories of people to suffer greatly in society, because of everything that has happened during recent times, is the lower middle class—the ones not far enough up to qualify. For that squeezed bunch of people, the child benefit system is there to help, but unfortunately it does not. One constituent said:

“we are firmly middle class. We will never be able to afford to pay all our bills and also help our children with buying a car, or tools for their trade, or books for university”—

or student grants—

“so we attempt to save from child benefit so there is money for the child when they need it.”

They use that system with the clear and singular purpose of benefiting their children. That is an example from my office; the hon. Gentleman referred to similar examples, and I suspect that once I sit down, other hon. Members will do too. I fear that the self-assessment mechanism precludes their getting that money and, in the long term, that that disadvantages the child and the family. But that is not its purpose, so the system must improve.

HMRC issued around 97,500 penalty assessments to around 37,500 customers, amounting to almost £15 million. When people consider the penalties, the self-assessment and the amount of money, they must think, “I’m not going through that. I don’t want to get it wrong inadvertently.” People do not set out to get it wrong, but they start the process, get it wrong through no fault of their own and end up with a large bill. Those figures show that some people are paying very large bills. Although it is not the Government’s intention, people decide not to pursue their claim.

I believe there is a different way of ensuring that high earners can have access to what they are entitled to. People whom the Government say are entitled should apply. How do we help those who are entitled? Every year, the Government tell us that so much money is returned to the Treasury because it is not taken up. It could be all kinds of benefits, not just child benefit: attendance allowance, personal independence payments, employment and support allowance, community care grants or pension credit—all the things that people may qualify for. If the money is not used, it goes back. I always say to the person, “You know something? You’ve worked hard all your days. You’ve paid your national insurance stamp; you’ve paid your tax every year; you’re a contributor to society. If you qualify for something, for goodness’ sake, apply for it.” It is important that we encourage people to do that.

Some people feel that they need to see an accountant. That is fine for those who have an accountant for their business. For those who are employed with a set wage and cautious of the penalty notices, if they make overtures to an accountant to see what they can do for them, there is a cost factor that can be off-putting. People are looking at whether they can be better off; they do not want to pay a cost for something that may lead to nothing. What has been done to enable those who would qualify to receive their money?

I will conclude, and well in advance of the end of the speaking time that you indicated, Mr Hollobone. Will the Minister indicate how we can streamline the process, bearing in mind that families are entitled to this benefit? I see families who are entitled to something but do not pursue it because they are uncertain, cautious or worried that it may disadvantage them somewhere down the line. While the money may not necessarily go on nappies or similar, it does go to providing for children, which is what the Government are determined to do.

The Minister has committed to ensuring that everyone who wants the benefit can apply for it, but in my constituency, that of the hon. Member for South Thanet and the constituencies of other hon. Members, there are many examples of people who do not pursue it because of the uncertainty. The current system is overly onerous and off-putting. I believe we can and must do better.

Summer Adjournment

Jim Shannon Excerpts

Thursday 25th July 2019 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to speak in this debate before the forthcoming adjournment or in any Adjournment debate, but that is just by the way. I thank Mr Speaker for setting time aside for this debate, which means that I can discuss an issue that is very close to my heart: the worth of the land and its value to society.

I live on a farm, and rent out acreage to neighbours and working farmers. I am proud of the land that I inherited from my father and will pass on to my sons and grandchildren. I am also an Ulster Scot and I am very fond of the Ulster Scots language, culture and history, so I want to quote four lines of an Ulster Scots poem entitled “On Slaimish”:

“Whar nicht-wantherin Orr dreamed yit, for a’

The bitter wakkenin o ninety-echt:

This lan that cried the dreamers bak, for

This is hame.”

No matter how far in the world we may go, or wherever our talents and abilities may take us, for those of us who hail from Ulster one thing will always remain: our hame—our home—is the land.

I have been a member of the Ulster Farmers’ Union for approximately 35 years, and I agree with its assessment of agriculture in Northern Ireland. It has said:

“Agriculture is one of Northern Ireland’s most important industries. As a whole, the agri-food industry turns over more than £4.5 billion every year and supports one in eight jobs in the UK, making it a cornerstone of Northern Ireland’s economy and farmers play a key role in this. Currently, there are over 25,000 farm businesses in Northern Ireland producing the wide variety of raw materials needed by processors and retailers to meet the demands of consumers. Farming in Northern Ireland is not just a job but it is a way of life and we are extremely proud of our family farming structure. Rural communities here are extremely close knit and farmers and farming families are at the heart of these communities. When you compare Northern Ireland to the other UK regions, and in fact the rest Europe, we are definitely a region that punches above its weight when it comes to farming.”

For young farmers, farming is in their blood. While I greatly admire this, I have concern for their future, because the research is very clear. The Farm Safety Foundation suggests that 81% of young farmers believe that mental health issues are the biggest hidden problem facing farmers today. The foundation’s research also shows that a farmer takes his or her life every week across the United Kingdom. A 2012 UK study of psychological morbidity of farmers and their partners and spouses based on 784 face-to-face interviews at agricultural shows found a higher risk of psychiatric disorder compared with non-farmers. There have been other reports across the world. There were interviews with dairy farmers in New Zealand, and in 2015 a national survey of mental health in Canada told us that it is not just a Northern Ireland or a United Kingdom issue and problem but a global one. It is a lonely life, and it is certainly a calling, to be a farmer.

We should appreciate the industry that is the foundation of agrifood, with a turnover of some £4.5 billion in Northern Ireland alone, and the impact that farming has on the wider economy. For every £1 that a farmer puts into the economy, £7.40 is gained, so farming is clearly the engine room of the economy. About 75%, or 1 million hectares, of Northern Ireland’s countryside is farmed in some way. This industry is vital for the Northern Ireland economy, employing more than 3.5% of the total workforce—well above the UK average of 1.2%.

It is my belief that we must—please excuse the pun, Madam Deputy Speaker—plant our support firmly behind the farmers and the farming community. This truly is the lifeblood that runs through my constituency and, further, through the Province as a whole. It is also what helps to sustain the UK. We must be proud of our land, provide support for those who tend our land, and ensure that we are good stewards of our land through sensible farming. I love seeing the patchwork of fields as I drive into work daily, and I see the fallow fields as a nod to the fact that there must be sensible farming as well. I love seeing the nests in the farmers’ hedges flourishing as they encourage biodiversity and plant life. I stand as a proud Ulsterman in this Chamber—proud of my culture and heritage, proud of my belief system, and proud of the land that I so gratefully call “hame”. It is ours in trust for the next generations, and we must be good stewards of it. The decisions in this place must impact on that stewardship. I trust that it will be wise stewardship from here right down to the very soil in my constituency.

I thank you, Madam Deputy Speaker, and your fellow Deputy Speakers, for your kindness, patience and understanding for me in this House—

[Mr Lord]

Will the hon. Gentleman give way?

[Jim Shannon]

Yes, okay.

[Mr Lord]

I think the hon. Gentleman will find that it might buy him an extra minute. He is a great spokesman for the farmers of Northern Ireland and his constituency. We have enjoyed Westminster Hall debates together, including on this topic. Would he like to take this opportunity to thank the outgoing Secretary of State for Environment, Food and Rural Affairs for all his fantastic work over the past couple of years and to wish our new Secretary of State well in that very important role for all our farming communities?

[Jim Shannon]

I thank the hon. Gentleman for his intervention and for giving me that wee bit of extra time, but I am very conscious that I want to be fair to everybody else as well. Yes, I would endorse that. I thank the outgoing Minister for all his work and commitment and wish the new one coming in every success and happiness.

I thank the security staff, those in the Tea Room, and all those who are committed to making our jobs and lives here just that wee bit better. I greatly appreciate the opportunity as a Back Bencher to be active in this place. I thank you, Madam Deputy Speaker. I give a big thank you to the people of Strangford for the privilege of being their MP and serving them energetically and consistently in this wonderful seat of democracy, the House of Commons.

Economic Growth and Environmental Limits

Jim Shannon Excerpts

Wednesday 10th July 2019 Westminster Hall

[Caroline Lucas (Brighton, Pavilion) (Green)]

I beg to move,

That this House has considered economic growth and environmental limits.

It is a pleasure to serve with you in the Chair, Mr Hosie. I am grateful for the opportunity to debate economic growth and environmental limits. It is, of course, a huge subject, covering why and how our current economic model, which puts GDP growth above everything else, must change fundamentally, fast. I will focus on the environmental imperatives for that, especially the climate and biodiversity crises, and set out practical steps that I hope the Treasury will adopt.

It is crucial to note, however, before going into the environmental detail, that the Treasury’s obsession with GDP growth is also undermining social and economic progress for the vast majority of UK citizens. GDP is an incredibly poor metric for measuring wellbeing or social cohesion. For example, people becoming unhealthy can actually have a positive effect overall on GDP, as revenue from associated healthcare boosts growth. Similarly, the extraction of oil and gas pushes GDP up, while pushing us closer to the precipice of climate breakdown.

I, of course, acknowledge that Government Departments have goals other than economic output. The Office for National Statistics in particular is doing some important work on wellbeing statistics as part of their “Beyond GDP” programme. There is also the ONS/Department for Environment, Food and Rural Affairs project that seeks to incorporate UK natural capital into the UK environmental accounts by 2020. All of that is welcome, but it is all at the margins. The ONS website is unequivocal about the priority. It says quite clearly:

“Gross domestic product (GDP) growth is the main indicator of economic performance.”

GDP therefore still trumps everything, remaining the primary objective across Government, especially for the Treasury.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on introducing the debate, and on her hard work in this House on the environment and climate change. Although I certainly like to check on GDP and other financial aims, does she agree that the measure of success cannot be GDP alone? It must equally be based on the happiness and health of our constituents.

[Caroline Lucas]

I thank the hon. Gentleman for his intervention and kind words. As he says, the purpose of Government should surely be to promote happiness and health, yet we have a perverse obsession with GDP growth, which can often go up even when happiness and health are going down. That obsession must end if we are to secure a safe space for humanity, and if we are to live within environmental limits, or planetary boundaries, to use an alternative term.

I will not be surprised if the Minister takes issue with me on that, arguing that the UK has embraced so-called green growth, perhaps citing the clean growth strategy. Leaving aside the fact that there is nothing clean or green about the Government’s support for rampant airport expansion, road building or fossil fuel subsidies, the essential point is that even so-called green growth rests on the assumption that economic growth can be decoupled from environmental harm fully and fast enough. I will make the case this afternoon that that is a false assumption.

Just yesterday, a new report from the European Environmental Bureau exploded the myth of absolute decoupling. The study looked at a range of factors—materials, energy, water, greenhouse gases and so on—and found that there is no empirical evidence for an absolute, permanent, global, substantial or sufficiently rapid decoupling of economic growth from environmental pressures, either now or in the future. In other words, it is time to move from efficiency to sufficiency. As the report concludes,

“Although decoupling is useful and necessary, and has occurred at certain times and places, ‘green growth’ cannot reduce resource use on anywhere near the scale required to deal with global environmental breakdown and to keep global warming below the target of 1.5°C”.

The transgression of environmental limits has dangerous consequences for all humanity. That was pushed into the spotlight by the UN global assessment of nature—the so-called Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services. If ever there was a mouthful that was designed to make it hard to know what anyone was talking about, that is it; we should call it a report on nature.

Regardless, it found that 75% of all land and almost half of all marine and water ecosystems have been seriously altered by human activity. It found that 1 million animal and plant species are now threatened with extinction. That is a horrendous number—significantly greater than at any other time in human history—and poses a severe and direct threat to not only those species but human wellbeing in all regions of the world, especially those least responsible for the damage that is causing it.

The report identifies the growth of the global economy, and specifically the growth of material consumption in affluent nations, as one of the major driving forces behind those trends. It is unambiguous about the need to move away from endless consumption and GDP as a key measure of economic success, stating that we must steer

“away from the current limited paradigm of economic growth”

and

“shift beyond standard economic indicators such as gross domestic product”.

I am keen to emphasise that, although Greens have long been leading the political debate on the environmental and social case for ditching GDP growth as a measure of progress, that argument is finally moving into the mainstream. Cross-party collaboration is incredibly important too, and I am delighted that 20 MPs have signed my early-day motion on the report from the intergovernmental panel. My early-day motion calls on the Government to

“urgently show global leadership in developing and advocating alternatives to GDP and in the transition to economies that, rather than being divisive and degenerative by default, are distributive and regenerative by design.”

Precious Metal Markets

Jim Shannon Excerpts

Monday 8th July 2019 Commons Chamber

[Jeremy Lefroy (Stafford) (Con)]

It is a pleasure and an honour to speak about this subject. In fact, my good friend the Minister may be a bit surprised that I wish to speak about it, because I think that he would, like me, agree with the biblical verse which states:

“Lay not up for yourselves treasures upon earth, where moth and rust”

can damage them. However, I think he would also agree that trust in all things is incredibly important, and it is on that aspect that I wish to concentrate tonight, rather than the treasure that precious metals represent.

I am raising this subject for a number of reasons, which I shall go into in a moment. First, however, I must declare an interest, in that I have invested an extremely limited amount in precious metals as part of my pension provision.

My first reason for raising the subject is the importance of gold and silver as a store of value internationally. There are those who say that gold in particular is a relic of the past with little relevance to the modern financial system, but many countries do not seem to agree. Russia is steadily building up its gold reserves, which, 20 years ago, were well below those of the UK; now they are seven times as high. China rapidly increased its gold reserves in 2015. Several European countries, notably Germany and France, hold more than 60% of their reserves in gold. The United States—the owner of the world’s main reserve currency, which would perhaps have the least reason to hold gold reserves—still believes in gold, which comprises some 73% of its official reserves. And what of the UK? With just 310 tonnes—pretty much the same quantity for more than 15 years—we hold 8.5% of our official reserves in gold. However, this debate is not about the merits of the UK’s policy on official reserves, although I will refer to that briefly at the end of my speech.

If gold plays such an important role in nations’ reserves, it is vital that the means of trading it and establishing its price on the exchanges be fair and transparent.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing this debate. I sought his permission to make an intervention beforehand. Does he agree that there is a real need to safeguard investors and that the present procedures do not go far enough to protect them? They appear to be weighted on the side of the market, and this truly is not equitable or just.

[Jeremy Lefroy]

The hon. Gentleman makes a good point, and that is what I want to talk about: trust in the markets—and I am asking questions, not giving answers, because I do not have them.

We should note that gold and silver both act as currency crosses, trading as components of the $5-trillion-a-day foreign exchange marketplace. That is an astonishing figure. Clearly gold and silver are a very small part of the crosses market, but nevertheless they form part of it, and I have to say personally that I get increasingly worried by the huge volumes of daily trades on international markets and the vast amounts of derivatives that are outstanding at any one time. The last report I saw from the United States, I think from the last quarter, showed that something like $200 trillion-worth of derivatives were open at that time.

My second reason for raising the subject is that considerable quantities of gold and silver—and indeed the other precious metals, palladium and platinum—are mined in low and middle-income countries. As with other commodities—such as coffee and cocoa, with which I worked for many years, and still do a little bit—the price has a major impact on the economies of the producers; it has an impact on those who work in the mining industry and on the taxation revenues of the countries.

The third reason is that London is at the heart of the global trade in precious metals and has been since the late 17th century. At a time when institutions and businesses are under intense scrutiny, it is vital that we in this country uphold the highest standards, and I am sure my hon. Friend the Minister entirely agrees with that.

Just last year, a former vice-president of a major US bank pleaded guilty in the US to spoofing precious metals markets

“hundreds of times with the knowledge and consent of his immediate supervisors.”

Sentencing has been delayed; the implication is that the person is assisting the US Department of Justice’s investigation into others, possibly both within and outside the bank. Spoofing is a technical term, defined in the USA’s Dodd-Frank Act 2010 as

“the illegal practice of bidding or offering with intent to cancel before execution”,

or, in other words, to deceive the market. In another case, in January 2018, Deutsche Bank, UBS and HSBC paid $46.6 million in the US to settle Commodity Futures Trading Commission charges relating to spoofing in the precious metals markets.

I was first alerted to this subject by a constituent who had bought limited quantities of silver as an investment from Deutsche Bank while he was resident in Germany. Over the period in which he purchased the silver, the price peaked at $48 an ounce in 2011, and declined to below $20 by the end of 2014. It is always very difficult to determine the precise causes of a market’s movement; this was at a time of global uncertainty, financial stress in Europe and North America, and increasing demand for physical silver in electronics and other industrial purposes. My constituent stated in courts in both Germany and Birmingham in the UK that the bank had been manipulating the precious metals market. His cases were dismissed; nevertheless, shortly afterwards, in 2016, Deutsche Bank and others confirmed that market manipulation had indeed been taking place, and they paid penalties in the USA.

My constituent’s contention, with which I have considerable sympathy, is that it is the small retail investor who pays the price for such illegal behaviour of traders and the banks for which they work. The regulators, and hence the Governments, receive the fines, but investors find it almost impossible to prove a loss directly, because a number of factors affect market prices, not simply the illegal activity.

My intention in calling for this debate is not to seek any conclusions at this stage, or to go into the details of precious metals trading—still less of the complexities of derivatives contracts that piggyback on the metals—but rather to ask the Minister and the Government some questions and to call for action. My reasoning is that our country depends, more than any other major economy, on the stability of and trust in our financial services sector. The sector provides much well-paid employment, not just in London. Here I should express my regret at the job losses announced today in Deutsche Bank. At least 2 million people are employed in financial services throughout the UK, not just in London, and the sector contributes up to 10% of Government revenue. It also includes our heavy responsibility for and stewardship of the precious metals that we store and trade on behalf of most of the countries in the world.

I wish to ask the Minister a number of questions. First, have the Treasury, the Financial Conduct Authority or the Bank of England made an assessment of the result of the recent J.P. Morgan case involving the rigging of precious metals markets and its potential impact on the UK? After all, we are talking about financial institutions with a global reach. Secondly, do the UK authorities believe that any similar activity could take place, or has already taken place, in the UK, or by a bank domiciled here? Thirdly, if there is evidence that the manipulation of bullion markets by banks over a period has resulted in lower prices than would otherwise have been the case—that is clearly something to be proven—what recourse do producers and retail investors have against banks for that manipulation?

Fourthly, it is estimated that the quantity of so-called paper gold—that is, delivery contracts for gold—is approximately 100 times the quantity of available physical gold. That is not peculiar to the precious metals market; it happens with other commodities as well, but it is nevertheless a noteworthy situation. I accept that it is unlikely that most such contracts will end up requiring the delivery of physical gold, but what assessment have the authorities made of the risk that if delivery is required, those requirements might not be met? We have to take into account the steady increase in demand for gold—and, indeed, all precious metals—by states as well as by industry.

I suggest that, in addition to answering these questions, the Government commission an independent inquiry or review into the bullion market, particularly in the UK. Gold and silver are not simply commodities like coffee, cocoa, sugar or copper, vital as those are; they are a bulwark of the global financial system, the importance of which is possibly increasing. The UK is a relatively minor holder of gold as part of our reserves, but gold constitutes the majority of the reserves of many other countries. We have a significant role in the stewardship of the reserves of others, both physically and in their valuation. The trust that others place in our country and our institutions in this area matters enormously. An independent inquiry or review at this time would underline the fact that we value that trust greatly, and that we will strengthen controls wherever necessary. Indeed, I believe that some controls have already been strengthened in the recent past. Such a review or inquiry would also flag up risky or illegal activity and ensure that those responsible were brought to book, including by being required to compensate those who have suffered from it.

As I said at the beginning, my aim in this debate is to see whether there has been any activity in these markets in the United Kingdom that we should be taking a closer look at on behalf of investors, particularly the small retail investors who put some of their savings into these commodities; but it is also about the trust in our system in the United Kingdom. There is a huge amount of trust in the UK and its institutions. I believe that that trust is almost always well placed, but it can only continue to be well placed if we constantly scrutinise the system and check instances where we have an indication that things have not always gone well, or perhaps are not going well now, and take action quickly.

NHS Pensions: Taxation

Jim Shannon Excerpts

Monday 8th July 2019 Commons Chamber

[Elizabeth Truss]

This is a matter that took place before I was a Minister in the Treasury, but I commit to find the relevant paperwork and send it to the hon. Gentleman.

[Jim Shannon (Strangford) (DUP)]

Will the Chief Secretary accept that such changes to the pensions process make it seem not worth while for consultants to do overtime, as they are taxed at a high rate multiple times? Furthermore, this will have a detrimental effect on waiting lists and, more importantly, on people’s lives. Will she be prepared to rethink the changes to ensure that those whom we need to work overtime and go the extra mile are not horrifically penalised for doing so?

[Elizabeth Truss]

A number of issues have been raised in respect of the complexity of the tax system and the need for further tax reform. I am sure the Treasury will take that seriously.

Religious Slaughter of Farm Animals

Jim Shannon Excerpts

Tuesday 2nd July 2019 Westminster Hall

[George Eustice (Camborne and Redruth) (Con)]

I beg to move,

That this House has considered the religious slaughter of farm animals.

Before I get to the issue in the motion, I must say that free votes in the House are wonderful. Those moments when the party structures and the Whips withdraw from the debate—when there are no Whips to point to which Lobby to go through—allow each individual to engage with an issue using their own reason and judgment and can be incredibly refreshing for our politics. Some of the best-quality debates in Parliament take place under free-vote conditions. Cross-party alliances form and, in the end, the House tends to arrive at a sensible and proportionate consensus.

Of course, the party system developed because, if there were free votes on everything, the Government would not be able to get anything done or deliver any of their manifesto commitments, but issues of ethics and religious conviction have always been universally accepted as free-vote issues. For instance, we have free votes on same-sex marriages and on contentious issues such as abortion. My key contention is that religious slaughter should be made a free-vote issue by every party in the House.

Whitehall feels awkward about dealing with this complex issue and it is not sure what to recommend to Ministers. Governments of all shades have tended to leave the issue in the “Too difficult to address” box and have talked themselves into a stance that says, “Now is not the time to deal with it.” If we made it a free-vote issue for the House, we would liberate the Government of that burden of responsibility and, more importantly, liberate Parliament to address the issue.

[Jim Shannon (Strangford) (DUP)]

I spoke to the hon. Gentleman beforehand to get his thoughts about what he was going to say. In my council area of Ards, there was an abattoir that carried out some of the ritual killings and stunned and so on. It created jobs and stability and there was a system in place, which seemed to be acceptable. Is he looking for changes in the methodology of killing or does he want to stop it entirely?

[George Eustice]

I will go on to advocate a package of measures to improve our law, having looked at the issue in some depth. I would stop short of banning it altogether, but we could make major improvements, which I will come to.

The history of our current derogation is long. The first regulations governing abattoirs and the humane treatment of animals in them were introduced through the Public Health Act 1875, which said that all animals should be “effectually stunned”. In 1904, a committee of the Admiralty considered in some depth the right methods of slaughter to deliver humane outcomes for animals and recommended that, without exception, all animals should be stunned. Subsequently, however, the Local Government Board issued a circular that drew on the advice in the 1904 report. It recommended that, as a general rule, all animals should be stunned prior to slaughter, but it created what has become a long-standing religious derogation for Jewish and Muslim communities.

Co-operative and Mutual Businesses

Jim Shannon Excerpts

Thursday 27th June 2019 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in support of the motion standing in the names of the hon. Members for Harrow West (Gareth Thomas) and for Wycombe (Mr Baker). I thank the hon. Member for Harrow West, in particular, for the massive contribution he has made, over the time I have been here but also long before that, to support co-operatives and mutuals. We all appreciate that greatly. I concur completely with the sentiments set out in the motion, especially those relating to the contribution that co-operatives and mutuals play in the economy of the United Kingdom, which I believe is much under-appreciated. I therefore want to add my support to co-operatives and mutuals, with a particular focus on credit unions, which I know best, as they feature greatly in my constituency.

Recent years have witnessed an increase in the number of co-operative and mutual businesses being set up in Northern Ireland, after many years when none was established. Analysis by Co-operatives UK in the early part of this decade found that co-operative enterprises in Northern Ireland contributed £35.6 billion to the UK economy—that is over a period of time, but it is still a massive amount of money.

I want to highlight a couple of examples to showcase the growing strength and vibrancy of the co-operative and mutual sector in Northern Ireland, because sometimes society does not appreciate what co-operatives do. The hon. Member for Stroud (Dr Drew) referred to agriculture. As a Member who represents a largely rural constituency, I know how crucial co-operatives have been to the size and success of our local dairy industry. One example is Lakeland Dairies, which has a factory in Newtownards, the main town in my constituency, and employs more than 220 people there. It is part of a cross-border co-operative business that processes 1.8 billion litres of milk a year. It has two factories in Northern Ireland and two in southern Ireland. The co-operative model has served the farmers, who are its members, well down through the years—they contribute to its policy and vision—providing them with an outlet for their production and, importantly, a say in the overall direction of the business. All that experience and knowledge points to the direction we need to go in.

Perhaps the single best example of the increasingly strong and vibrant co-operative and mutual sector in Northern Ireland is our credit union movement, which is massive. I will give some figures because I am not sure that all Members realise just how important credit unions are in Northern Ireland or the massive contribution they make. Credit unions are, of course, common to all parts of our United Kingdom, but they have woven themselves into the fabric of society in Northern Ireland in a way that has not happened elsewhere across our nation. Credit unions are a feature of my constituency, as we now have three or four of them. When one of the branches closed down in Greyabbey, a village just down the road from where I live—I opened accounts there for my three boys many years ago—it integrated with the branch in Newtownards.

People such as my old running mate Tommy Jeffers in Dundonald have given a lifetime of hard work to establish, run and expand credit unions across Northern Ireland. He was the instigation and strength behind that credit union, and although he is now in his mid-70s and no longer a councillor—that is how I first got to know him, as well as through party connections—he is still involved in it. The movement has been built by hundreds and hundreds of hours of work by volunteers. They have made a massive contribution.

[Gareth Thomas]

One credit union that spoke to me ahead of the debate wants to open more branches on the high street, to help plug the gap left by mainstream bank branch closures, and it wonders aloud whether the Government might be sympathetic to the idea of extending business rates relief to credit unions seeking to open business branches. Does the hon. Gentleman think that could also help facilitate the greater spread of the credit union movement in Northern Ireland?

[Jim Shannon]

I thank my honourable colleague for that intervention. I am sure that the Minister is listening and hope that he will take on board that suggestion, which could be very helpful. I wholeheartedly support that suggestion. This is not the Minister’s responsibility, but I have had discussions with other Ministers about help with high street rates.

It should be borne in mind that credit unions are for their members. The members invest their money to lend their money. It is a fantastic opportunity, and a fantastic example of how lending should be looked upon. The big banks should note that example. It should not be all about dividends for shareholders; it should be about the customers—those who are involved.

The Northern Ireland movement is massive in comparison with its counterparts in Great Britain. Statistics collated by the Bank of England in each quarter show the scale of credit unions in Northern Ireland in comparison with that of their counterparts in the rest of the United Kingdom. Of the 437 registered credit unions in the UK, 145 are located in Northern Ireland. A third of all adult credit union members in the UK are in Northern Ireland, and four in 10 juvenile members are from Northern Ireland. We are encouraging our young people to open accounts early—although, to be fair, that will probably be done by their parents or, perhaps, by their grandparents, who open accounts for them to start them off. It is good to encourage young people to be part of a bank, to save money, and thereby to see the benefits of credit unions. As I have said, it is a fantastic opportunity. If Members have not had an opportunity to investigate or gain knowledge of what is happening in Northern Ireland, I suggest that they should.

[Jim McMahon]

I had the pleasure of being in Belfast over the weekend for a Co-operative party event organised by Tony McMullen, a fantastic advocate for co-operatives. The party has published a manifesto for co-operatives in Northern Ireland. Perhaps the hon. Gentleman will read it and convey to the UK Government what we might take from Northern Ireland’s leadership in this regard.

[Jim Shannon]

I should be more than happy to do that. I read in the paper that the hon. Gentleman was the guest speaker at that event.

Our credit unions are clearly punching well above their weight, as so often happens in Northern Ireland. This is yet another example of what we do well there. I know from experience in virtually every corner of my constituency how vital credit unions are in helping some of the most marginalised in our society to save their money and borrow at very competitive rates. As was pointed out by the hon. Member for Harrow West, they have often filled the gap left by bank closures. They filled that gap when banks closed in Newtownards, and they filled it by opening a brand-new office in Kircubbin on the Ards peninsula—where there had previously been a branch of the Danske Bank—to supplement the branch in Portaferry.

Credit unions fill the gap on many occasions, and have a great interest in the community. A recent article in the Financial Times recognised the role that they play in our community beyond simply lending money and providing facilities for saving, explaining how they can and do help to squeeze out loan sharks, who cause a great many problems in Northern Ireland. They lend money and then take exorbitant interest rates from the backs of people. They are a scourge on society, including my Strangford constituency. They prey on the most vulnerable among us, and have ruined countless lives. I want to place on record my thanks to the credit unions throughout the United Kingdom of Great Britain and Northern Ireland whose service is helping many to break away from the grip of criminal moneylenders.

Despite the apparent strength of loan sharks, however, there are still significant opportunities in credit unions in Northern Ireland. Again, I agree with the motion: we must look to Her Majesty’s Government to work with the credit union movement, and the co-operative and mutual sector as a whole, to fulfil that untapped potential. More can be done with a little help. We have heard two suggestions in interventions, and other ideas are being presented.

The regulation of Northern Ireland’s credit unions moved from Stormont to the Financial Conduct Authority in 2016. I ask the Minister to engage with the credit unions in Northern Ireland—and, indeed, throughout the United Kingdom—and to help them to, in turn, work with the FCA to help them to grow further, and, furthermore, to help us to deal with problems such as financial exclusion.

Let me say in conclusion—and I realise, Madam Deputy Speaker, when I hear that cough I must take note of it—that there is an increasing desire across our nation for a different growth model for our economy. The hon. Member for Stroud referred to an alternative. We need a good alternative that can be successful, and this is the one: one in which the interests of workers and people are not overlooked, but rather are to the fore; one in which there is a greater sense of partnership between all the actors in our economy. Co-operatives and mutuals are already an incredibly important part of our economy, and they can be greater still. Northern Ireland is an example of their importance. I join Members in all parts of the House in recognising their existing contribution, and calling on the Government—and the Minister in particular—to work with the sector and help it to grow even more and benefit more people.

--- Later in debate ---

[John Glen]

As ever, the hon. Gentleman has anticipated my future remarks. I have met representatives from those institutions on several occasions recently.

The examples given today show that regulation and innovation are not mutually exclusive, and that building societies are able to adapt to serve the changing needs in our society. Members have highlighted the need for a proportional regulatory approach, so that building societies can effectively compete with the big banks. The Government are committed to ensuring that capital requirements are implemented proportionately in order to support smaller lenders, such as building societies. The recent updates to the Basel international standards are a clear positive step towards more proportional capital requirements.

The Government have a clear commitment to implementing those standards and refining capital requirements in the UK. That is demonstrated by the inclusion of the capital requirements regulation II in the Financial Services (Implementation of Legislation) Bill. Where we identify other barriers holding building societies back, we have acted to remove them. For example, one of the first pieces of legislation that I brought forward as Economic Secretary was to enable building societies to join central clearing houses.

I know how vital credit unions are for the people and communities they serve, and I am pleased to see the strength of support across the House today. Building up savings with a credit union, or having the opportunity to take out a reasonably priced loan, is one way that we can prevent people from having to turn to high-cost credit or loan sharks. The Government have acted to support credit unions by legislating to increase the common bond from 2 million to 3 million potential members and raising the cap on the interest rate credit unions can charge from 2% to 3%.

The hon. Member for Harrow West asked about insurance mediation and the provision of hire purchase, and my hon. Friend the Member for Stafford referred to the impact of regulation on credit unions. ABCUL, the largest credit union trade body, is currently carrying out a sector-wide consultation on the future of credit unions and will complete its work in September. The consultation will consider the legislative framework and opportunities for further change. I will consider the outcome of that consultation with interest. I visited ABCUL’s conference in March and have had an active dialogue with the organisation while in office. The co-ordination of its requests has been somewhat fragmented over multiple trade organisations, but it has been helpful in conducting the consultation, and I look forward to taking things forward.

In last year’s Budget, we announced an affordable credit package to support social and community lenders. The package included a £2 million affordable credit challenge fund designed to generate innovative FinTech solutions to address challenges faced by social and community lenders, including credit unions, as they try to match the broader innovations in financial services. It also included a measure to make it easier for registered social landlords to refer tenants to credit unions, and a two-year pilot of a new prize-linked savings scheme offered through credit unions. The package is designed to support the credit union sector through increased membership, awareness and deposits, as well as encouraging participants to build up savings to help them cope with financial shocks. We used examples from other jurisdictions —the US in this case—to inform that policy.

I am pleased to announce today that we have selected 15 credit unions from across Great Britain to take part in the prize-linked savings pilot. They are East Sussex, Lewisham Plus, London Capital, Clockwise in Leicester, Nottingham, 1st Alliance, Merthyr Tydfil Borough, Riverside in Liverpool, South Manchester, Central Liverpool, Bradford District, Westcountry in Portishead, Commsave, Police, and Plane Savers. I congratulate the successful credit unions and look forward to seeing the pilot up and running as quickly as possible.

[Jim Shannon]

I am sure that I must have missed it—I hope I have—but did the Minister mention whether Northern Ireland is in the pilot scheme?

[John Glen]

I did not mention Northern Ireland in that list, but Northern Ireland obviously has a strong tradition in this area. There was a competitive process, and I would be happy to talk to the hon. Gentleman about a specific credit union.

Members from across the House have spoken of the benefits of the co-operative model and its potential to improve our public services and strengthen our communities. This Government have a strong track record of support for co-operatives. We passed the Co-operative and Community Benefit Societies Act 2014 to reduce legal complexity for co-operative and community benefit societies. My hon. Friend the Member for Wycombe spoke about the apparent inadequacy of that legislation, but we have introduced a range of legislative measures in addition to the consolidation Bill since 2014, including making it easier to register digitally as a co-operative.

We have also reduced red tape by equalising the audit treatment between small co-operatives and small companies. I am pleased that the Financial Conduct Authority, which runs the UK mutuals register, recently made several practical changes to support mutuals, including simplifying the forms, creating an online portal and removing the fees to access documents. Members also raised the challenges that co-operatives face when raising capital. We recognise that that can be an issue, which is why in 2014 we increased the amount of share capital that an individual member can put into a co-operative society from £20,000 to £100,000, and I am happy to consider further proposals. We have looked at some proposals before, but I am happy to re-examine them.

Some Members called for changes to social investment tax relief, which is designed to incentivise investment in social enterprises that are constituted to provide a social or community benefit. Community benefit societies, a form of mutual, may therefore be eligible, as their purpose is to benefit the wider community. Although other forms of co-operatives and mutuals may have a wider community benefit, it is not central or essential, and their primary purpose is to benefit their members.

The Government are currently conducting a comprehensive review of social investment tax relief to better understand what impact it has had on access to finance for social enterprises. The public call for evidence is currently open, and it closes on 17 July. We will publish a summary of responses later this year.

I recently met representatives from across the mutual sector at a session hosted by Co-operatives UK and Nationwide. We discussed some of the opportunities and challenges facing mutuals, many of which have been raised by Members today. Following the session, Treasury officials will host a mutuals workshop with Co-operatives UK in July to investigate in more detail some of the barriers faced by mutuals. This will be a good opportunity to explore how the sector and the Government can work more closely together and, importantly, how mutuals can build closer links across the sector.

The latest estimates show that public service mutuals in healthcare and other sectors are delivering more than £2 billion-worth of services across England. They are driving innovation, too, with two thirds saying that they have created new products or services over the past year. Over the last three years, the Office for Civil Society has been delivering a £3.5 million programme to help new mutuals to emerge and existing ones to thrive. It has run several roundtables to create a proposal on the future definition of public service mutuals, which is planned for launch this summer.

I thank all Members for their contributions today and for their ongoing support for the co-operative and mutual sector. I am pleased to see that the sector continues to thrive, from the building societies that can trace their origins back hundreds of years to the newest entrants to the market. I recently met the executive director of South West Mutual, who is from Plymouth and is working with the Royal Society for the encouragement of Arts, Manufactures and Commerce to develop proposals for regional co-operative banks across the UK.

The demand for a new form of co-operative finance is a good sign, and the public appetite for co-operative and mutual services remains strong. This Government will continue to be a strong supporter of the mutual sector. Like hon. Members present today, I will continue to advocate for the sector’s considerable contribution to ensuring that our economy serves the needs of everyone in society.