Coronavirus Bill

Jim Shannon Excerpts

Committee stage & 3rd reading & 3rd reading: House of Commons & Committee: 1st sitting & Committee: 1st sitting: House of Commons
Monday 23rd March 2020 Commons Chamber

[Munira Wilson (Twickenham) (LD)]

I rise to speak in support of the amendment and new clauses that my Liberal Democrat colleagues and I have tabled. We are not seeking to divide the House, but we are keen to put our concerns on the record. In the interests of time, I want to focus on two areas—social care and the self-employed.

There is unanimity in the Chamber about the fact that exceptional times call for exceptional measures. It is strange to find myself in violent agreement with the hon. Member for Wycombe (Mr Baker) and, indeed, the right hon. Member for Haltemprice and Howden (Mr Davis). In these difficult, challenging times, the measures must be proportionate, strictly time-limited and with appropriate safeguards in place. I therefore welcome the Government’s concession that the Bill will be reviewed every six months, although our amendment seeks a review every three months, with a full review by both Houses. I note the concerns about whether we can amend or discard parts of the Bill in each review, and I hope that that will be taken on board by Ministers.

The Bill gives the Government sweeping powers over our civil liberties, and impacts on how we look after the most vulnerable in our society, which is dealt with in our amendment 14 and new clause 14. Social care provision is inextricably linked to NHS provision—they are two sides of the same coin. Fast and safe discharge into the community is essential to free up hospital capacity for those who are critically ill.

The system is already stretched to breaking point, and many people think that care standards are on the border line. The Bill seeks potentially to lower standards, which could be dangerously reduced, putting many elderly and disabled people of all ages at risk. Although the Secretary of State told me that the provisions seek to do the opposite by enabling local authorities to prioritise, I fear that the only safeguard is the European convention on human rights, resulting in many vulnerable people being harmed. They must not be cast by the wayside in this crisis.

The Bill has been introduced to tackle a serious threat, but it potentially raises another threat for the most vulnerable people in society. The Chancellor made it clear that he would give the NHS whatever resource it needed to deal with coronavirus. The same commitment must be given to social care, as the sister service to the NHS. Amendment 14 seeks to address that very point.

I turn to new clause 13, on statutory self-employment pay. The Chancellor has rightly stepped in with a far-reaching set of economic measures to support the millions of people across the country whose livelihoods and incomes have been decimated by the pandemic. As many Members from all parts of the House have said, the 5 million self-employed and freelancers feel that they have been completely overlooked. With over 11,000 self-employed people in my constituency I, like many others, have been inundated with hundreds of emails, from childminders to event organisers, to tradesmen and women, to musicians and those who work in the TV industry, begging for action. Many have seen their incomes dry up overnight, with no prospect of knowing when they might be able to work again.

New clause 13 seeks to provide for the self-employed on the same terms as the wage guarantee scheme for employees. I fully understand that the mechanism for delivering such a provision is not straightforward for Government, but let us not let the best be the enemy of the good. The situation is urgent for millions of people across the country who are struggling to put food on the table for their families and keep a roof over their heads right now.

In 2008, the Government stepped in to bail out the banks. Now it is time to do the same for everyone whose livelihood is under threat, whether employed or self-employed. At this time of national crisis, of course we support the Bill with an extremely heavy heart, but I implore Ministers to take on board our grave concerns, particularly on care of the vulnerable and providing for the self-employed. Let us make sure that not one single provision in the Bill is in place for a minute longer than it has to be.

[Jim Shannon (Strangford) (DUP)]

First, let me thank the Government for their contribution and highlight the plight of the NHS staff who do not have enough protection gear. Will the Minister ascertain whether any factories can be used to assist in the interim? I have also been approached by someone about whether, in relation to new clauses 3 and 4, those with an HGV licence could step in to drive supplies—due to a DVLA technicality, they are precluded from doing so. Can we lift that restriction legally, as it is only a technicality, and allow him and others to step in?

The shadow Minister referred to the 80% of wages being available by 1 April, but may I implore her to make that money available from March?

On new clause 4 and factories producing the food and medication we need, I am thinking of TG Eakin in Comber, producing colostomy bags. They cannot go home; what help is in place for them?

On new clauses 9 and 11, what about the self-employed? I have electricians with no premises because their jobs consist of fixing electrics in homes and businesses; can they access the business grant? I have self-employed café owners who have been asked to close their businesses—their staff are getting a wage, but they are not. What is being done to help them? What about a constituent who has a shop stocking cleaning products and basic groceries who is delivering cleaning products, potatoes, milk and other things free of charge? What help is there for him and his staff in new clauses 9 and 11? The business grant will only pay his rent for a few months, so how does he feed his five children?

Lastly, self-employed people should get a basic wage when we are telling them to close and when they cannot reasonably stay open. Again, I would ask what has been done for those who are self-employed. New clause 8 is about education: what about self-employed coaches who are essential in day-to-day life to the mental health and physical wellbeing of our children? What about agency staff working in colleges and the civil service? Do they qualify for the 80% wages that they should under new clauses 9 and 11?

[Helen Hayes]

Time is very limited this evening, but I want briefly to return to an issue that I did not have time properly to probe on Second Reading: the question of people with learning disabilities and autistic people whose rights are at risk as a consequence of the Bill. As someone who has campaigned on the “Transforming Care” agenda and the Government’s failure to implement it over many years, I know that there are people the autism community and among those who support people with learning disabilities who are very worried that the Bill could result in further unnecessary admissions to hospital. This could happen both indirectly, through the withdrawal of support for autistic people and people with learning disabilities, resulting in a higher incidence of crisis, and directly, through provisions in the Bill that make it easier for people to be detained.

Any institutional setting where large numbers of people live together has increased risk of covid-19 spreading. Families who have battled for years to get their loved ones out of hospital are very frightened that the Bill could mean that their loved ones end up being detained once again, and that if this happens they might also fall victim to covid-19. Once again, I want to seek assurance from the Secretary of State for those families that their loved ones will not end up once again in settings that have been traumatising in the past and where abuse has taken place, as a consequence of the Bill.

Coronavirus: Employment Support

Jim Shannon Excerpts

Thursday 19th March 2020 Commons Chamber

[Mr Speaker]

Last, but certainly never least, I call Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

The first coronavirus death has been confirmed in Northern Ireland, and I wish, through the House, to convey our commiserations to the family.

I have been contacted by a school bus driver on a zero-hours contract who normally works 45 hours a week but has now been told that there is no work for him until further notice. Does his employer not have an obligation to pay his wages, and the wages of others in the same boat? What is the Minister’s message to help this employee?

[John Glen]

I am very happy to look at that individual’s circumstance. We have made interventions to provide advances of ESA and to remove the minimum income floor. It is clear that we will need to do more to support employees who have been specifically affected by the tough decisions we have taken. I am very sorry to hear of the first death in Northern Ireland.

Bank Branch Closures

Jim Shannon Excerpts

Wednesday 18th March 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

First, I congratulate the hon. Member for Midlothian (Owen Thompson) on bringing forward the debate—I think there has hardly been a banking debate that I have not been at. The Minister is always in his place to respond, and I am sure he knows what we will say before we say it and that he shares our frustration over bank closures. As I mentioned earlier, my constituency has seen one of the largest numbers of bank closures in the whole of the United Kingdom of Great Britain and Northern Ireland. There has been some attempt to fill the gap with credit unions and post offices, which have done so to a certain extent, but not in totality. That is where my concern lies.

I joined in the debate last June—we had another one a few weeks ago—to express my frustration with the banks that were closing branches because they say there is another one just 15 minutes up the road, or 50 minutes up the road, as the hon. Member for East Renfrewshire (Kirsten Oswald) explained. That is not very helpful for people who are on their lunch break or reliant on public transport, which is not always available at the time that they need it to get them back to work, as she also suggested, especially in a rural constituency.

Physical branches are important to the consumer, but not to the bottom line, and it would seem that that is the only consideration for some of those at the top of the banks. How annoyed was I, last month, to find that yet another bank closure is planned for Newtownards, the main town in my constituency? This time it was Barclays. I got the obligatory email of intent, as we all do, and an offer to meet, going through the format of a visually arranged meeting. I have arranged it in my diary, by the way, and I will meet them, but the fact is that although the meeting might relieve some of my frustration, it will not make one button of a difference to Barclays.

I mean no disrespect—I try to be respectful to everyone as best I can—but I have no hope at all of persuading them to keep the Barclays bank in Newtownards open. I have sat in too many of those meetings, which is why I have become a bit cynical about meeting the banks. I think I have had some nine bank closures in total in my constituency. I have had a meeting with the banks on every one of those occasions, and with all the persuasion of stats and letters from customers that we had, we were not successful in turning things around.

As those branches have closed one by one, I have sat in too many of those meetings and been shown increases in online activity, as the hon. Lady mentioned. If we take the logic that she referred to, it is true that, if we close all the banks, more people will go online. But it does not suit everybody to go online—that is the point we are making, but it seems to fall on deaf ears. What is not explained is that the increase is because staff members have been pushing this, which they have. There is nothing wrong with pushing the online deal if it suits people, but it does not suit everybody, and the bank customers on whose behalf I went to all those meetings were not able to bank by logging on to the system. It is not always easy, either, when people do not have the broadband access to enable that to happen.

Over the years the bank closures in my constituency have been Kircubbin, Portaferry, Killyleagh and Ballynahinch—all Ulster Bank—Danske Bank in Kircubbin and Portaferry, Barclays bank now imminent, Bank of Ireland and Allied Irish. Those banks have all moved to other towns or moved out of the area completely. I remember when we used to have at least four banks on the Ards peninsula, but they have all been closed. There were some sub-banks, which would have been there on certain days a week, but they are away as well.

The hon. Member for Midlothian referred to credit unions, and we have been fortunate that credit unions have grown in my constituency, as they probably have in all our constituencies. They have tried to fill the gap, and they have done so to some extent, but they cannot provide what the banks offer to customers. We have a new credit union in Kircubbin; I am very pleased to see it, and it is very active and very able. The credit union in Portaferry has grown as the banks have closed, as has the credit union in Newtownards. I had the Minister over about a year and a half ago to visit the one in Newtownards, which is doing extremely well. The credit unions are filling the gap.

Then there are post offices. The Minister might say that post offices are able to fill the gap, and in some ways they are, but they cannot provide all the range of support and services that can be given in the banks. Post offices can only fill those in a small way. We need to have all the opportunities that the banks offer. I am becoming increasingly frustrated with the banks. I say that not as a socialist—

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

There is nothing wrong with that.

[Jim Shannon]

There is nothing wrong with being a socialist, by the way—I am letting you know that right now. I am not against the banks, but I get immensely frustrated when it seems that they make decisions in order to bring bigger dividends for their shareholders. I suspect that everyone who spoke and the shadow Minister will say the same thing, but to me it is simple: the wee man and wee woman need help, and they deserve to have their banks, yet it is all about the profit at the end of the year. Whenever banks are making a massive profit, in a way it is about getting more profit. Was it Jean Paul Getty who said that the only thing better than having £1 million is having another £1 million? Speaking about Jean Paul Getty probably ages me, but I am just making the point that banks focus only on their profit margin and how much they can make, not on delivering.

The hon. Members for Midlothian and for East Renfrewshire referred to online banking—I know that others will refer to it as well—but it does not suit everybody. I tried to help a number of customers of those banks to do online banking, but it was lost on them. I hope those people took their savings to the post office or the credit union, but I suspect that some did not, and I therefore fear money being stored under the blanket, the pillow or the mattress, or in some tin box somewhere, because those people want to be in control.

My wife’s auntie was in that situation. She had some money in the house, which we did not know about. One day she was out for only half an hour, but the thieves obviously knew, and they came in and stole her life savings—£8,500—which were probably to pay for her funeral. It is soul-destroying. The community came together to help as best they could. That happened to a couple of others in my constituency as well, and again the community reached deep into their pockets and made some of that money available.

I realise that time is flying. I was sitting here almost loth to speak, to again use the same words and rhetoric, because it is not stopping the closures. Then I realised that this is the place where changes need to take place. I have the utmost respect for the Minister, as he knows, but I urge him and his Department to give serious consideration to supporting those banks that support their local community. For Newtownards, that is the Danske Bank, the Ulster Bank—the one that is left—the Santander bank, which has filled some of the gap for some customers, and the Nationwide building society. Those are the last four banks in Newtownards. All pay rates and council tax, provide local employment and are all available for the vulnerable—for me, this debate is about the vulnerable; those who do not have access to banks—to open their first bank account or for those who want face-to-face advice, because we need that from the banks as well.

I ask the Minister what we can do to reward those banks that do right by local communities and keep an online thrust as well. I understand that some people want to go online. I am an old traditionalist; I will probably still write cheques for all my things every week, as I always do, and I will probably still carry cash in my wallet, because that is how I did it when I opened my first bank account at age 18. How can we encourage more banks to be part of local communities, instead of being removed and literally counting their pounds rolling in? I look to the Minister for guidance, because asking, reasoning and pleading with the banks is not working. Maybe rewarding community-minded banks is the way forward.

Budget Resolutions

Jim Shannon Excerpts

Monday 16th March 2020 Commons Chamber

[Robert Courts (Witney) (Con)]

I am very grateful to have been squeezed in at the end of this debate. It is quite clear that this Budget and all of us are very much under the shadow of the coronavirus update, and that we will have many stern days ahead of us. We must all pull together, and it is very good to see the House doing that today.

If I were able to, I would have liked to welcome a number of things in the Budget. I would have liked to have spoken about the environmental measures, and about the measures for veterans and on health in greater detail, as well as about the measures for education and even for potholes, all of which I welcome. If I may, in the brief time available to me, I will just make two points, which are about research and development and education.

For many years, this country has lagged behind others in the amount of GDP it puts into research and development. This has meant that we have problems with productivity, and that in many of the areas in which we excel, such as the high-tech areas of the economy, we are not doing as well as we could. I very much welcome the £22 billion going into that, and particularly the blue skies, ARPA-style agency that will be considering some of the high-risk businesses it will be possible to put money into in the future. I very much welcome that, along with some of the education steps that have also been taken, with the T-levels that are coming in. I also greatly welcome the money that has been put into mathematics, and also skills. One of the things that all businesses say in my constituency—I am sure it is the same for other Members—is that they simply do not have enough people with the right skills. The skills shortage is really something that we have to address, and I am very glad that this Budget does so.

The reason why I make those points and why I am so pleased to welcome these measures in the Budget is that, while we all pull together and deal with the dark days lying ahead of us with the coronavirus epidemic or pandemic, we should look forward to the future because we will have to rebuild the economy, help people to invest and help people to get on with and to rebuild their lives economically as well as personally. It is critical that we do that, because ultimately that is how we will build the excellent public services for the future that we all want to see.

[Jim Shannon (Strangford) (DUP)]

rose—

[Stephen Farry (North Down) (Alliance)]

rose—

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

That is most kind of you, Madam Deputy Speaker; thank you for making that happen. I thank everyone who has made a contribution.

I wish to thank the Chancellor and his team for the tremendous efforts that have been made in producing this Budget, especially in the light of the current events that are overtaking all else. I welcome some of the measures taken. The planned increase in spirits duty will be cancelled, with no duties for cider or wine drinkers as well, although a packet of cigarettes will cost 27p more, which I have to say is good news. I welcome the abolition of the so-called tampon tax, and I would welcome further initiatives to combat period poverty. I am delighted to see the pledge to double the spending on research and development. I thank the Chancellor for all these things and congratulate him on them.

I express some concern about the fact that there was no mention at all of air passenger duty and its importance for us in Northern Ireland and, indeed, for the whole of the United Kingdom. Again, I understand the seriousness of the Budget in relation to coronavirus, particularly for small and medium-sized businesses. The Chancellor outlined measures to ensure that small businesses in England receive rates relief, but the same processes are not in place in Northern Ireland. Our disappointment is that although the Chancellor said those things, unfortunately we do not see any benefit coming through to us at the moment.

The Health Secretary said that we will know “shortly”—perhaps in the next few minutes—how much money there will be to tackle coronavirus in Northern Ireland, and I hope we get the opportunity to hear that. Will the Minister confirm what money will be available for Northern Ireland, based on the Budget and Government information?

I welcome the fact that the Government will cover 14 days of statutory sick pay for companies with 250 employees, and the suspension of rates to pay sick leave, and so many other things that have been brought in for England. But are we in Northern Ireland any less British? Are our businesses any less deserving of help? Can we say that we have got what is needed from coronavirus aid? The answer is no, we have not, and I am very disappointed about that.

I have heard mothers say that if they have no school or paid day care for their children they will not be able to work, so if they have coronavirus and need to self-isolate, there will be real problems with childcare providers. I welcome the £210 million in the Budget to establish Treasury officials in Northern Ireland. The tax threshold has dropped, and there is no additional tax on red diesel—assistance that makes a difference for many things. I sincerely appreciate the Chancellor’s efforts in this uncertain time, but we need a whole UK approach. Just as in other times of national crisis the regions pulled together, so must we also do that. The Government intend to ensure that someone’s postcode does not dictate the help and assistance given, and neither should it dictate their income tax. Let us get this right.

Social Mobility

Jim Shannon Excerpts

Wednesday 12th February 2020 Westminster Hall

[Sir David Evennett]

I welcome my hon. Friend’s intervention. I, too, am a product of social mobility: education and social mobility have characterised my life. I was born into a family whose origins were in the east end of London, but, through family, education and opportunity, my grandparents and parents were able to develop and get on in life. I am therefore always grateful for the opportunities I had from schoolteachers, from the LSE, where I went to university, and from others who helped me to move up, be involved and have a career.

There are also business leaders, entrepreneurs, innovators, actors and singers from humble backgrounds who have had the opportunity to move up the social scale and make something for themselves. However, despite some successes, for far too long the UK has not done as well on the social mobility front as I would have liked. Where someone starts in life should not determine where they finish in life. There is a strong link between adults’ income and those of their parents, and people’s educational attainment is closely linked to that of their parents too. That significantly affects opportunities later in life.

[Jim Shannon (Strangford) (DUP)]

I congratulate the right hon. Gentleman on securing the debate. This is an important issue, which we have discussed recently in Westminster Hall. Does he agree—I think he does—that it is important that being born into a family of sales assistants should not mean that someone can only be a sales assistant, in the same way that being born into a family of doctors does not mean that someone can only secure a position as a doctor? There must be a better structure to ensure that people can determine their own path, based on their hard work and passion rather than their background and birthplace.

[Sir David Evennett]

I totally agree—and, of course, the opportunities have to be there for people to do it. That is what this debate is about.

Last month, the World Economic Forum highlighted the problem of poor social mobility around the world. It concluded that where someone is born still pretty much determines the opportunities they get in life. It also published a new global social mobility index, on which Denmark is ranked No. 1. The forum found that just a handful of Governments—specifically those in Scandinavian countries—have succeeded in laying the foundations for greater social mobility and more prosperous futures for their citizens. Rather disappointingly, of the 82 countries in the index, the United Kingdom is ranked 21st, behind Germany, France, Belgium, the Netherlands and Ireland.

A lack of social mobility not only has a negative impact on an individual but affects the society in which they live. Now we have left the EU, it is more important than ever that we look seriously at how to improve social mobility further to harness talent across the country. I strongly believe that talent and hard work should determine how far people can go in life, whoever they are and wherever they come from. Opportunity should be available to all sections of our society.

--- Later in debate ---

[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Bone. I congratulate the right hon. Member for Bexleyheath and Crayford (Sir David Evennett) on his excellent introduction. I begin by declaring that I am co-chair of the all-party parliamentary group on social mobility. This is an issue I feel passionately about, and I am afraid that each time I speak on it I see little sign of progress. We need an overarching cross-departmental Government strategy, which is sadly lacking at the moment.

I have long held the view that many of the frustrations and factors that led to the Brexit vote are connected to declining social mobility. That was reinforced by findings published a few weeks ago by the Social Mobility Commission, whose survey showed that 78% of people in London thought they had good opportunities to progress, whereas only 31% of people in the north-east did. Those figures ought to make us all sit up and take notice, because they show just how disconnected we are from voters and how little confidence the public have in our being able to address their concerns.

A number of recent reports tell us about the scale of challenge we face. One is from the Sutton Trust and even its title, “Elites in the UK: Pulling Away?”, pulls no punches. It said that one in five men in professional occupations born between 1955 and 1961 became socially mobile, but the figure for those born between 1975 and 1981 was only one in eight. In other words, we are a country where opportunity is declining. The pull of London was prominent, with the report finding that two thirds of the most socially mobile people built their careers close to home, rather than by moving away, but people in that group were more likely to come from London. Of course, London is the political, economic and cultural centre of this country, and it has much to offer, but that report and others show that it is over-dominant to the detriment of other places. It is no wonder that three and a half years ago so many people sent us a message in the ballot box that they wanted something fundamentally different in the way the country works.

As the right hon. Member said in his introduction, there is an international comparison of social mobility from the World Economic Forum, which ranks the UK 21st in the world. Unfortunately, as was mentioned, the majority of countries above us are our western European neighbours. We see that the top performers combine

“access, quality and equity in education, while also providing work opportunities and good working conditions, alongside quality social protection and inclusive institutions”.

I do not think we can begin to understand the scale of the problem until we see words like that, which show how social mobility is about far more than just education.

[Jim Shannon]

It is very much more than education. There is also a need to have education at an early stage. The schools in my constituency, and probably in the hon. Gentleman’s constituency, try to focus on career opportunities, and it is important that teachers involved in careers give the full picture of opportunities and what may need to be done. Pupils may see some other options for work and they need to know that opportunities are there.

[Justin Madders]

I thank the hon. Member. We have talked many times about the need to raise levels of aspiration. One of the sad things we have seen in recent times is how quality careers advice has slowly drained out of the education system. It is not just about 14 and 15-year-olds; it is about getting five and six-year-olds to think about what they can achieve. The evidence shows that the countries that tend to be more socially mobile are those where the gap between the bottom and the top is smaller, demonstrating that social mobility and inequality are closely linked. In 2019, it is a scandal that where you were born and who you are born to are still the biggest influences on your prospects. If we are ever going to move forward as a nation, everyone should have the same opportunity to achieve their potential. I think everyone in the room agrees with that.

When he resigned as the chair of the Social Mobility Commission, Alan Milburn said he was doing so because the Government were

“unable to devote the necessary energy and focus to the social mobility agenda.”

When he gave evidence to the Education Committee, he said:

“After the change of Prime Minister, following the European referendum, that whole conversation frankly went into the void. There was no conversation. There was no response.”

Those are damning word that were barely met with a shrug.

The new chair—not so new, now—Dame Martina Milburn is bringing real focus and drive to the commission which only yesterday produced a fine set of recommendations for the workplace, including internships being openly advertised— something that the all-party group on social mobility has called for for a long time. It recognises, as we do, that informal networks, which do much to stifle social mobility, creep into recruitment, even at the internship stage, for which money is a vital in order to make the first step through the door. While we are on that subject, why do we still allow internships to be unpaid? That is an invitation for exploitation.

We rightly focus on education, but addressing inequalities beyond the education system, including factors such as access to work, tax, welfare, housing, transport and health, is vital. We need to look at the world of work, particularly. For how much longer will the most likely experience for young people be casual work, low pay and insecurity in the workplace?

The Government need to stop treating social mobility as a niche issue that is the role of just one Minister. They need to make it a mission across all Government departments, with a focused and consistent approach that transcends the day-to-day world of politics and reshuffles. That is an issue to which I hope the commission can add value.

Apprenticeship Levy

Jim Shannon Excerpts

Tuesday 11th February 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Gloucester (Richard Graham) for setting the scene. It is a pleasure to follow the right hon. Member for Harlow (Robert Halfon) and to participate in this debate.

I have always been a great believer in education in its many equally important forms. Some people excel in academic subjects, such as science, mathematics, literary subjects, medicine and languages. We need people who excel in all those things, but we equally need people who excel with their hands and understand how a car works, how to make electrics safe, how to build and how to create. Society cannot function without all sorts. That is what the debate is about, as apprenticeships cover many different aspects of life, and that is why I was thankful that the Government recognised the need to push apprenticeships.

One of my constituents, a mother, came to see me about a different issue and told me an interesting story. She said that she tried to save half her daughter’s child benefit each month in an individual savings account. Her reason for doing so was simple. She and her husband both worked, so their children would never be entitled to grant aid, but their wages were not high enough to allow them to put aside much money. Her endgame has stuck with me for the five years since she came to see me: “I need to save as much of my daughter’s child benefit as I can to help her with university or to buy her the tools of whatever trade she goes into. Whatever job she gets, she will have help to be the best at it.” That mother understood the importance not just of academia, but of ensuring that her child would have help to get into a trade if academia was not her calling. Today everyone, male or female, has or should have equal opportunity for an apprenticeship. If mothers are making sacrifices so that they can invest in their sons’ and daughters’ futures in trades, should we likewise invest more? I look to the Minister to address that.

On 6 April 2017 the apprenticeship levy came into effect, with all UK employers with a pay bill of more than £3 million per year paying the levy. The levy is set at 0.5% of the value of the employer’s pay bill, minus an apprenticeship levy allowance of £15,000 per financial year. The levy is paid into an apprenticeship service account, and funds in the account have to be spent on apprenticeship training and assessment. The Library briefing states that since the changes in 2017

“there has been a large fall in the number of apprenticeship starts, leading to criticism of the levy and other reforms that have been put in place.”

The hon. Member for Gloucester referred to that. In 2016-17, before the changes, there were 900,000 new starts. That system worked. Perhaps the Minister will outline why we cannot revert to a system that seemed to work.

I have read statements that indicate that the quality of training is better under the new system, and I understand the logic behind that. In Northern Ireland, where big companies are scarce, it is imperative that apprenticeships are available in SMEs as well. The hon. Member for Gloucester referred to apprenticeships and SMEs in his introduction. He understands the issue clearly, and I hope we will come to a better understanding.

Apprenticeships are vital for the construction sector in my constituency. I met someone there a few weeks ago and was impressed by what they were doing. The apprenticeship levy that they pay enables them to make a long-term commitment to those they bring on board. Bombardier, part of which was recently bought by Spirit, is committed to apprenticeships. It had some events here at the House of Commons, and its commitment to giving boys and girls opportunities in engineering was great. I was encouraged to meet some of the apprentices.

We now have a Northern Ireland Assembly that is up and running. It is good to see it working, and we look forward to what it can deliver. Whether the responsibility for this matter lies with the Department for the Economy or with the Department of Education, my hon. Friend the Member for South Antrim (Paul Girvan) and I will be in touch with the Minister responsible to push for apprenticeships in Northern Ireland.

In Northern Ireland, 16 to 24-year-olds made up some 89% of participants starting in the academic year 2018-19, and level 3 apprenticeships accounted for some 47% of all participants starting in that academic year. Electrotechnical, engineering and food manufacturing were the most popular frameworks. Males accounted for 71% of all participants, and the proportion of male participants was highest in the level 2 and 3 apprenticeship group at 91%. More than three fifths—62%—of those who left level 2 apprenticeships in 2018-19, up to April 2019, achieved a level 2 framework. More than three fifths—61%—of those who left level 3 apprenticeships achieved a level 3 framework.

I understand that others wish to speak, so I will finish up now. I am convinced that apprenticeships work, but we must make them accessible and attractive to providers. Complicated frameworks and buy-ins are not the way to do it. Sufficient time has passed to make such a judgment, and we must review the funding mechanism. Although this is a devolved matter—the Minister does not have responsibility for Northern Ireland—the ball must start rolling on the review in this place for the sake of those who are labelled as underachieving males, but who in reality need to be given a chance to find their niche and their chance to excel. I hope the Minister will take the opportunity to talk it over with the Minister in the Department for the Economy or the Department of Education in Northern Ireland. It is important that we have uniform rules and regulations in a system that takes in all the devolved Governments in Scotland, Wales and Northern Ireland.

Beer and Pub Taxation

Jim Shannon Excerpts

Wednesday 5th February 2020 Westminster Hall

[Stephen Flynn]

It is an important discussion and I will come on to that point. I have been an elected Member in Scotland for a considerable period of time, and what I hear from Conservatives there is that the business rates in Scotland are a complete and utter mess. Having listened to this debate, it appears that they are an even bigger mess in England, if the contributions from Conservative Members are anything to go by.

The important point in the Scottish context, as my hon. Friend the Member for Angus (Dave Doogan) noted, is that Scotland has the most competitive business rates in the entire Isles. Indeed, more than 100,000 businesses, many of them local pubs, are in receipt of the small business bonus, without which they would not survive. In the Scottish Parliament the Conservatives have put that at risk in the last few days. It was only after a dramatic U-turn that they decided to side with the Scottish Government to ensure that the small business bonus was kept in place. That was right, but it should never have been in doubt. With regard to business rates, we in Scotland are well placed to say that we support local pubs and local industry, but there is certainly more that can be done.

One aspect that has not been touched on in enough detail when it comes to taxation is the public health impact.

[Jim Shannon (Strangford) (DUP)]

The cost to the NHS of excessive drinking is clear. Does the hon. Member agree with the sentiments put forward by me and other hon. Members that pubs offer a secure method of drinking? The key is moderation. A landlord can give drivers free soft drinks all night or remove keys from someone who is still standing and talking yet unable to drive. When it comes to the message of drinking sensibly, that is the way to do it.

[Stephen Flynn]

The hon. Member makes an important point, which many hon. Members have also made. That is why we have to take a holistic view. We cannot simply say that taxes need to be cut without looking at the public health impact. Notwithstanding that, a pub is a much safer place to drink than the pre-loading we heard about earlier.

It is important to note that about 22 individuals die every week in Scotland due to alcohol abuse. That is a shocking figure that none of us can be happy about. There has been action on that in Scotland, through the introduction of minimum unit pricing, which is expected to save 392 lives over just five years. We certainly support the reform of beer excise duty, but we need to look at taxation holistically and in terms of public health.

The elephant in the room is the fact that great swathes of our hospitality sector rely primarily on the work of EU nationals. In Scotland, roughly 11% of EU nationals work in the hospitality sector. They are crucial to the success of our pubs, hotels and the entire hospitality industry. That is why Scotland needs freedom of movement, and why it is incumbent on Conservative Members to ensure that when the Brexit deal goes through, free movement of people from the European nations to Scotland continues.

--- Later in debate ---

[Mr Clarke]

I could not agree more, and that is the spirit of Brexit. We need to take advantage of opportunities to drive exports. It is something that we want to do across the piece to ensure that we deliver a successful economy, have a competitive business tax regime and support businesses large and small. That is what the Government have been intent on doing. Our employment allowance changes reduced national insurance contributions by up to £3,000 for over 1 million employers. We have cut corporation tax and frozen or cut beer duty in six of the last seven Budgets, which means that beer duty is now at its lowest level in real terms for over 30 years, and we have repeatedly given support to pubs through the business rates system.

[Jim Shannon]

UKHospitality has said that these businesses represent 10% of UK employment and generate £39 billion of tax for the Exchequer. Does the Minister agree that engaging with the sector would help businesses to survive and to grow?

[Mr Clarke]

The hon. Member is an assiduous attender of Westminster Hall debates, and I am absolutely delighted to say that his persistence will be rewarded. My officials and I will always be glad to engage with the sector.

One of the most important issues that came up in the debate was raised by the hon. Member for St Albans (Daisy Cooper) and my hon. Friends the Members for Devizes (Danny Kruger) and for North West Durham (Mr Holden): the impact of business rates and the associated challenges. Since 1 April 2019, eligible pubs with a rateable value below £51,000 have received a one-third discount on their business rates bills. As my hon. Friend the Member for Totnes (Anthony Mangnall) rightly pointed out in his excellent speech, they will receive even greater support from 1 April as we increase the discount from one third to 50% and introduce a new £1,000-worth of relief for pubs with a rateable value below £100,000. Eligible pubs will be able to claim both reliefs.

Lloyds, HBOS and the Cranston Review

Jim Shannon Excerpts

Tuesday 4th February 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I apologise for not being on time, Mr Hollobone; I had a short-notice meeting with the Under-Secretary of State for Northern Ireland, the hon. Member for Worcester (Mr Walker) on Northern Ireland issues, and we had to go to meet him. I talk very fast, Mr Hollobone, as you know, but in the next few minutes I am going to get more words to the minute than any other person ever got, if that is possible. I hope I do not talk so fast that Hansard cannot follow it—I will certainly do my best.

On 18 December 2018, 13 months ago, we gathered here in Westminster Hall for a debate on the same subject of Lloyds HBOS, some nine years after the matter was first raised in the House in June 2009 by Sir James Paice MP. My substantive support for a proper and independent review of the Griggs HBOS bank-led remediation scheme is a matter of record in that debate. Less well-known is what has happened since, so let me put some of that on the record from my perspective today.

I begin by drawing the House’s attention to a few paragraphs of an excellent article that I read, by Helen Cahill in The Mail on Sunday on 25 January. Helen wrote:

“Sources said Horta-Osorio, who has been at the helm of Britain's biggest retail bank since 2011, is keen to salvage his reputation before departing as chief executive.

He has also halted three legal battles with victims in an effort to repair relations between the bank and its small business customers.

Victims have been fighting for fair compensation for more than a decade. Nikki Turner, director of victims’ group SME Alliance, said: ‘We have struggled with this for years. We hope this will encourage other chief executives to be more hands-on. How do you know what’s going on in the bank, if you don’t know about it personally?’”

Then, in what in my view will prove to be a seminal article, for Reuters last Wednesday, under a section entitled:

“Chief executives at a conduct crossroads”,

Rachel Wolcott wrote:

“Bank chief executives face a choice in 2020. They could take actions to resolve fairly disputes and claims stemming from past misconduct. That then would set the tone for how such problems are solved in future and reinforce cultural transformation messaging.”

There are a lot of things that can be done.

“Alternatively, they could continue approaches that resulted in unfair customer redress schemes, customer claims being wrongly denied, and vulnerable customers hauled through the courts.”

The article quotes Ruth Steinholtz as saying:

“They can’t have it both ways.”

They think they can, but they cannot. Ruth Steinholtz is further quoted as saying:

“They say they want to increase trust, but they can’t do that if they don't take responsibility for their actions and admit they got it wrong. I do think there has to be some sympathy for the reason they have difficulty admitting getting it wrong, which is they get slammed by the regulators every time they do”—

but if it is wrong, it is wrong and they should say that.

The article continues:

“The Cranston Review, which saw Lloyds Banking Group’s handling of HBOS Reading victims criticised, may have been a catalyst for that very change in approach required to take Lloyds’ cultural transformation work forward. Lloyds has invested in efforts to improve culture, making key hires and revamping its purpose, values and behaviour statement. Recent decisions by Antonio Horta-Osorio, chief executive to increase HBOS Reading fraud victims’ compensation, pre-empting further unflattering investigation results expected in the Dobbs Review, was deemed as a step in the right direction.”

It is, and it should be seen as such. The article goes on to say:

“If this approach continues to influence Lloyds’ engagement with mortgage prisoners, cases that come through the Business Banking Resolution Scheme (BBRS), PPI claimants and yet to be uncovered conduct problems, its chances of achieving meaningful cultural improvements may increase.

Barclays, RBS, Virgin Money and other UK banks have not made public any change in attitude towards legacy conduct issues, however.”

It is disappointing that they have not.

“Banks, via UK Finance, contested the eligibility criteria for the BBRS, which is aimed at putting SME mistreatment in the past.”

Regrettably,

“Most banks have made few meaningful actions to help mortgage prisoners or customers whose loans were sold to debt collectors and vulture funds.”

That includes Lloyds as one of the culprits.

“David Duffy, chief executive at Virgin Money Holdings, in contrast to Lloyds’ recent approach, has rebuffed the FCA’s Bailey’s specific requests to ‘deal with’ some of its most troublesome and longstanding SME customer disputes.”

Mr Duffy is noticeably where his Lloyds CEO counterpart was a few weeks ago, pre-Cranston, and in my view he needs to move his position to remove the shackles strangling this bank.

The Minister will be well aware of the case of John Guidi, the CYBG, now Virgin Money, hunger striker, and his recent correspondence, now publicised on Twitter and elsewhere, detailing the implications of both his case and many others. It is insightful to read the Reuters article by Lindsey Rogerson on 24 January, headlined:

“Outgoing FCA chief advocates for bank victims inclusion in new resolution scheme”.

That is good news.

The article addressed Andrew Bailey’s public and private view on both Mr Guidi’s case—I have probably pronounced his name wrong there—and those of the other victims of banks that are not yet participating in the BBRS, such as Zurich Dunbar. I ask the Minister, in his concluding remarks, to respond by giving his view and that of Government on the following observation by Mr Guidi:

“Meanwhile, the Vulture funds appear to be untouchable by the law yet they use their distorted version of law for their own benefit to destroy the honest and hardworking, tax paying SMEs and individual people of this country and leave them destitute as a burden on the state while they themselves pay no taxes in the UK, Ireland or anywhere else.”

I turn now to an instance that I witnessed, together with our voluntary adviser, Brian Little at Westminster for Banking, who has assisted with auditing and whistleblowing since that December 2018 debate. I was approached by Lloyds Banking Group’s public affairs director, Mr Benedict Brogan, who asked to speak with us about the content of various parts of my speech, which Brian and I were very willing to do. Our first meeting took place immediately on the resumption of Parliament after Christmas 2018.

A number of matters were discussed, including—specifically relevant to the debate—the importance of a meaningful and competent review of the Griggs scheme, together with the crucial involvement of victims’ representatives in the recently announced dispute resolution scheme, now called the Business Banking Resolution Service. From our experience in Northern Ireland, we believe that all the people cannot really move on until the victims’ aspects are properly considered and a closure and reconciliation process undertaken, as the hon. Member for Thirsk and Malton (Kevin Hollinrake) mentioned; I only caught the tail end of his speech, but I have spoken to him about this. He and I both requested this debate, and I am pleased that we got it.

As a result, over the next couple of months, Mr Brogan engaged with other banks, and centrally Mr Horta-Osório suggested that Nikki Turner of the SME Alliance be invited to join the independent steering group, or ISG. Bearing in mind that Paul and Nikki Turner had been the subject of 22 applications for eviction by Lloyds, and that the Lloyds CEO was subjected to calls for his resignation in Parliament in that December debate, this was an enormous ask, and impossible in many people’s eyes; in effect, a few of us were thought of as mad. We understand that, when António was approached on the subject, after several seconds of reflection and following his interview by CNBC in Davos in January 2019, he looked up and said words to the effect that “it was the only way forward”, and so it is.

Shortly afterwards, on 12 March 2019, Nikki and the SME Alliance released to the press that they had been invited and were joining the ISG of the DRS. That press release also referenced Mr Ian Lightbody from the CYBG Remediation Support Group. Unfortunately, the DRS chairman, Mr Lewis Shand Smith, did not follow Ian’s involvement through, despite another small business representative board member from Make UK being unable to attend. That was, and remains, a huge disappointment to Financial Conduct Authority CEO Andrew Bailey, the SME Alliance and the all-party parliamentary group on fair business banking.

Despite the time pressures across many fronts on Andrew Bailey, who is soon to be Governor of the Bank of England, we witnessed his personally taking charge of the interviews for the chair of that review with an unwavering commitment to the values and intent of that process, which we welcomed. After a couple of challenges in securing other candidates, Sir Ross Cranston was selected. He has proven to be exactly what was required—independent, evidence-led, competent, fair and robust. I put on the record our thanks and gratitude to both Andrew Bailey and Sir Ross Cranston for their work on this in 2019. I must also add thanks to the Lloyds CEO, Mr António Horta-Osório, who devoted some of his time to overseeing not only the HBOS aspect of this but the treatment of other victims, such as victims of Lloyds business support unit. I wrote to António to thank him personally on Monday 20 January.

Yes, Rachel Wolcott is right: bank chief executives are at a conduct crossroads in 2020. How true that is. This is the year that their actions, including active support for the BBRS, will communicate to their staff, the victims and the public at large whether cultures are really changing.

My final point relates to a victims’ conference I attended and spoke at on 17 September last year in London, where I heard Brian Little tell a story to victims that got everyone’s attention. It is on YouTube; most things seem to be nowadays. Back in 2011, Brian was a constituent of mine, and he still is. He had a mental breakdown for some 17 months, during which time I, as a new MP, and with my parliamentary aide, assisted in keeping his whistleblowing case alive during his diagnosis and recovery.

During that time, we met the now-Lord Andrew Tyrie, in his role as Chairman of the Treasury Committee, in relation to independent reports and assessors. By coincidence, António was the subject of stories on the front page of The Daily Telegraph on 4 May 2011. While only just in the CEO role, António had taken the brave step away from the UK Finance position on PPI and stated that Lloyds must address the compensation issue. Back then, that was perhaps £5 billion to £10 billion across the banks; it is now more than £50 billion, but it was the right thing to do. Brian’s story was about cover-ups in reports; the court eventually found that he had made 12 protected disclosures.

On Saturday, I read an article in The Times in which Katherine Griffiths wrote that António was now the longest-serving CEO in the FTSE 100, and that the search for his successor is imminent. Whether accurate or not, I ask through this House that Mr Horta-Osório continues what a number of us have witnessed in the last few months: personal involvement and oversight of the Cranston compensation review and active support for the BBRS, and perhaps even the involvement in a closure and reconciliation process at Lloyds, which we would be more than happy to discuss with him prior to any departure or retirement.

I am conscious of the time, so I will scoot forward to near the end of my speech. In relation to third-party debt, can I ask that the Minister takes similar action immediately? Most of this will not be about individual cases, but I am concerned that the BBRS will not be ready in time to hear the case of Nigel Henderson, as he is terminally ill. While the Minister consistently states that he is unable to address individual cases, which I understand, I should think that he would wish to publicly endorse the emergency cases policy of the BBRS that James Hurley reflected in his recent article in The Times, in which he wrote:

“Bosses of the service have been asked to prioritise cases where business owners are terminally ill and where there are imminent repossession or bankruptcy issues.”

It is morally right to do that, so why should we not?

An open letter to the Prime Minister last Wednesday from the Banking Victims for a Future groups stated:

“The objective is to have Banks put things right, redress customers, where they should be redressed, and continue to reinforce our work that Banks really need to earn people’s trust. Without this redress through a credible Business Banking Resolution Service (BBRS) followed by an appropriate closure and reconciliation process, within each bank, for the last 20 years we will not help this nation and its people, through many small businesses, PROSPER in a post-Brexit United Kingdom.”

Everybody will want that, whether they are in favour of Brexit or not.

I will conclude with this comment from UK Mortgage Prisoners:

“We do not want to be left behind within our Prime Minister’s hope for our nation. We didn’t deserve this and should not continue to suffer. We insist that our ‘People’s Government’ provide a solution and reflect it in the chancellor’s budget speech on 11th March 2020, to the nation”.

I look forward to hearing the Minister’s response to my two key points and to whether he endorses these aspirations of the Prime Minister. I thank you, Mr Hollobone, and hon. Members for enduring my speaking at 60 words to the second, or thereabouts.

--- Later in debate ---

[John Glen]

My hon. Friend makes a powerful point, which goes to the core of this matter. The Cranston review points to the fact that we now have a higher bar of expectations in terms of how these redress schemes should be operated in a transparent way. He has spoken in this debate and previously about the distress that has been caused to his constituents, and many other Members have also made points during this debate.

The wider banking industry has a responsibility to reflect on the review’s findings and act accordingly, so I welcome the banking industry’s commitment to creating a new scheme to address unresolved historic complaints from small and medium-sized enterprises that have not been through a formal independent process, and to address future complaints made by slightly larger SMEs that are just outside the remit of the Financial Ombudsman Service.

[Jim Shannon]

Will the Minister give way?

[John Glen]

I will in a moment.

The aforementioned Business Banking Resolution Service opened to expressions of interest last November, ahead of its full launch later this year. Meanwhile, the expansion of the FOS last April means that over 99% of all SMEs now have access to fair, free and fast dispute resolution.

The hon. Member for Strangford (Jim Shannon) asked me to give way; I am happy to do so, but I want to refer to the points that he made. He referred to the eligibility of the BBRS. It is not for me to determine the eligibility of the BBRS, but his points about the prioritisation of cases will have been heard very clearly by those who have set up that service, and I urge the BBRS to reflect on his contribution to this debate.

The BBRS and the expansion of the FOS build on several initiatives that the Government have introduced, including the senior managers certification regime, which will hold key individuals at banks to account for the decisions that they make, including decisions that could impact on their SME customers. The industry has also made changes. For example, all major lenders are signatories of the standards of lending practice, ensuring that banks treat their customers in a fair and reasonable way. I hope that these steps, together with the work carried out this year to address historic SME disputes, will bring unresolved disputes to a close and prevent the same circumstances from occurring again.

I will conclude by saying that over the past year Sir Ross has taken considerable time to discuss sensitive and often distressing matters with customers; he has had 49 meetings with 62 customers, alongside his adopting a detailed and forensic approach to the cases he has reviewed, so I thank him for his efforts.

I welcome the commitment of Lloyds to implementing the recommendations of the Cranston review, and I will follow progress closely. I note the points made by the hon. Member for Glasgow Central (Alison Thewliss) and others, and I will reflect on them carefully.

The establishment of the Business Banking Resolution Service provides a further means of redress, and I look forward to seeing it bring closure to many long-running disputes. I am confident that we can continue to build on the good work that industry, small business representatives, regulators and Government have begun to rebuild trust, so that small businesses can access the finance they need to prosper and grow.

Netflix: Tax Affairs

Jim Shannon Excerpts

Monday 3rd February 2020 Commons Chamber

[Dame Margaret Hodge (Barking) (Lab)]

Thank you for selecting the debate, Mr Speaker, and I give my heartfelt thanks to George Turner and the investigative think-tank, Tax Watch, for providing me with so much information.

For many years, global digital companies have been avoiding tax. I have spent the last decade campaigning for more corporate transparency and arguing for stronger action at both the national and international level to stamp out this abuse. Indeed, the Minister, when he was a member of the Treasury Committee, was extremely helpful in exposing some of the unacceptable tax behaviour in one of our major banks—HSBC—and he effectively held the bank’s chief executive to account. In the light of his previous interest and commitment to ensuring that everybody acts responsibly and pays their fair share of tax, I hope that he will respond positively to the suggestions I am making tonight. These suggestions will go some way to tackling the shocking example of corporate tax avoidance that we have uncovered.

I have secured this Adjournment debate because until now one major tax avoider has remained under the radar: Netflix. Netflix demands our attention for a number of reasons. Not only does it deliberately dodge its corporation tax bills, but it, in fact, receives moneys from the public coffers through the high-end television tax relief.

[Jim Shannon (Strangford) (DUP)]

This is a very important issue and I thank the right hon. Lady for securing the Adjournment debate. Bearing in mind that last year Netflix UK subscribers paid some £700 million, does she not agree that the fact that it uses loopholes to avoid tax is simply disgraceful? Government really must close these loopholes and ensure that big business has to pay a reasonable rate of tax.

[Dame Margaret Hodge]

I entirely support the hon. Member on that.

Netflix takes out of the public purse more than it contributes in corporation tax. While Her Majesty’s Revenue and Customs fails to collect money from it in corporation tax, the US Government is extracting tax from the same profits that it earns here and then hides in unknown tax havens.

Special Educational Needs and Disability Funding

Jim Shannon Excerpts

Wednesday 29th January 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Twickenham (Munira Wilson) for bringing the issue to the fore. It is replicated across the United Kingdom of Great Britain and Northern Ireland. There will not be any region where it is not an issue. Regions including my own fail on this, and improvement is absolutely necessary.

Children are simply falling through the cracks as budgets are stretched beyond belief. Special needs services clearly do not have the resourcing needed to make the difference. In the previous Parliament, the Northern Ireland Affairs Committee made it its business to carry out a study on education and health. The education study mirrored all the issues that have been referred to. One of the main findings was that Northern Ireland has faced the highest school spending cuts per pupil in the UK over the past decade—11% in real terms, compared with 8% in England, 6% in Wales and 2% in Scotland. The money set aside per pupil in Northern Ireland, at £5,500, is less than in Wales, where it is £5,800; England, where it is £6,000; and Scotland, where it is £6,600.

Today I had the opportunity to meet some people from Disability Action. They were people at secondary school or in further education. The issues for them are clear. Transport to school is important, as well as the assessment that other Members have referred to, which can take four to six weeks. In Northern Ireland it can take from four to six months, so we are worse off. Even then, there is no guarantee of getting the cash that is needed.

We have had a failure in the Assembly for the past three years. It is important now to move on. There is a Minister in place in the Assembly, who happens to be my colleague. We need sustained, enhanced funding UK-wide, for all schools, and particularly for children with special needs. I know that the Minister is here to respond on her portfolio and not on Northern Ireland, but we want to have some input on Northern Ireland in this process, and to discuss where we are.

I pay tribute to every teacher who gives up even more of their home life to consider the child who is not statemented but needs extra help, and to every classroom assistant who makes the difference for that child. I also pay tribute to every volunteer who takes training in Campaigners or the Girls Brigade and Boys Brigade, to learn how better to connect and deal with the special needs child who needs to know, as we do in those organisations, the Bible story that Jesus loves them and they have a place within every youth organisation. It is important that there is funding so that the people we charge with the education of our vulnerable and needy children can have the tools that they desperately need to enable them to achieve what they know they can, given the chance, which is that children can fulfil their potential.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Education (Michelle Donelan)]

I congratulate the hon. Member for Twickenham (Munira Wilson) on securing today’s really important debate. I know that she has been working particularly hard to highlight the concerns of some of her constituents regarding SEND provision and funding. I put on the record the fact that I share her concerns, and stress that the Government are taking action and will continue to do so. Our ambition is for every child, no matter what challenges they face, to have access to a world-class education that sets them up for life, enabling them to reach their full potential. We need to ensure that that is happening across the entire UK.

Funding has been raised by several Members, and is extremely important. It is part of our commitment to level up across the country, but I also stress that the issue is about so much more than just funding, as my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) mentioned. We should accept that there are large amounts of money in the SEN system, but it is important that that money is spent efficiently and effectively to really raise outcomes for these children, and to ensure that the system is child focused. We also recognise the value of the role that mainstream education plays in providing a wonderful education for children with specific challenges, as my hon. Friend the Member for Totnes (Anthony Mangnall) referenced.

We are undertaking a cross-Government review of our SEND provision, and we must ensure that every penny that we spend helps to achieve better outcomes, so that parents and teachers have confidence in the system to deliver for these children. The review will look at how the SEND system has evolved since major reforms were introduced in 2014, and will consider how the system can be made to work better for all families, ensuring that the quality of provision and the support available to children and young people is sustainable in future.

The review will also look at the supply and delivery of support at the moment. The hon. Members for Croydon North (Steve Reed) and for Barnsley East (Stephanie Peacock) touched on supply, which is a particular concern of mine, and of the Government. We want to ensure that support in different local areas is consistent and joined up across health, care and education services, and that high-quality health and education support is available across the country. We must ensure that all funds are spent efficiently and effectively, so that children’s needs are adequately catered for. My hon. Friend the Member for Chichester (Gillian Keegan) mentioned that the EHCP process is too burdensome and long, and that people can struggle throughout it. That will also form part of the review.

[Siobhain McDonagh in the Chair]

The SEND review will look at how the future system for supporting children and young people should operate, and later this year we are planning to begin a review of the formula that calculates funding allocations for individual local authorities. The hon. Member for Twickenham called for a strategy, but it is really important that we hear what the review has to say before we make our long-term plans, because they must be evidence based, and focused on delivering for these children and young people. I recognise this is not a sufficient answer for those areas that are struggling now to provide the support that parents expect and their children need.

We are, however, consulting on changes that would reduce the adverse impacts of carrying forward cumulative deficits, which the hon. Member for Twickenham mentioned, and will be responding to that consultation very shortly. We recognise the urgency of doing so, and have been developing a response in conjunction with the Ministry of Housing, Communities and Local Government and with the Treasury. I can assure the hon. Lady that we will publish that response shortly, and I am more than happy to meet her in the forthcoming days.

[Jim Shannon]

One delicate and important issue is that of children with complex health needs, who do not have just one single health need but maybe three or four, which then impact on their education. Is the Minister prepared to set some funding and resources aside to deal with those children with complex health needs related to education, as well?

[Michelle Donelan]

The review is encompassing the EHCPs, and is going to look at exactly those challenges in the system, including the point that was raised by my hon. Friend the Member for Cheltenham (Alex Chalk), who said that we should look at the threshold. That is something that we will look at, and it will address whether we are giving enough support to those children who have complex and compounded problems. We will also examine the £6,000 contribution that mainstream schools have to put in; that issue was raised by a number of Members, and I know from my own constituency that it can be a challenge for school provision.

The SEND review is looking at how future systems for supporting children and young people should operate, but it is important to recognise that it is not a sufficient answer for those areas that are struggling now, as I have pointed out. I am more than happy to meet any hon. Member who has a challenge locally and go through this with them.