Oral Answers to Questions
Kemi Badenoch Excerpts(3 years, 2 months ago)
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Mr John Baron (Basildon and Billericay) (Con)
The Exchequer Secretary to the Treasury (Kemi Badenoch)
As the Chancellor reaffirmed at the Budget, the Government are increasing the national living wage by 2.2% from £8.72 to £8.91, an above-inflation pay rise. The Government remain committed to their ambitious target for the national living wage to reach two thirds of median earnings by 2024 provided that economic conditions allow. The Treasury will continue to work closely with Cabinet colleagues to ensure that we reach this target.
Mr Baron [V]
In welcoming the Government’s generous economic support packages and the increase in the national living wage, may I just ask the Minister to consider further increasing it ahead of inflation in the years ahead to help achieve our one nation agenda and ensure that work pays? I suggest that, combined with an effective and controlled immigration policy, that will also encourage businesses to invest in their workforce and in research and development generally, which will help to improve productivity.
Kemi Badenoch
I thank my hon. Friend for his question. He should know that the Government remain committed to ensuring that work pays and to helping to end low pay. As he knows, investment to raise productivity is vital for long-term sustainable growth in wages. I am sure that his request is one that we will consider, as always, in future Budgets. Taxes and minimum wages are always under review, but this Government are absolutely focused on levelling up. We have set out our plan to build back better, which will drive economic growth that levels up the whole of the UK through significant investment in infrastructure as well as skills and innovation.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
Kenny MacAskill (East Lothian) (SNP) [V]
The Exchequer Secretary to the Treasury (Kemi Badenoch)
The hon. Gentleman will know we are carrying out an alcohol duty review that will look at all these decisions in the round, and I am very happy to speak to him in more detail specifically about any particular schemes or requests that he has.
Stuart Anderson (Wolverhampton South West) (Con) [V]
Kemi Badenoch
The Government are supporting these businesses through new restart grants—a one-off cash grant of up to £6,000 per business premises for non-essential retailers in England—and up to £18,000 for hospitality and leisure businesses. They will also benefit from a five-month extension of the coronavirus job retention scheme, a further 12 months’ relief from business rates and a new UK-wide recovery loan scheme. Tony’s Deli, which my hon. Friend mentioned, and other businesses serving hot food can also enjoy a 12-month VAT cut at 5% until the end of September, and at 12.5% until the end of March.
Ian Lavery (Wansbeck) (Lab) [V]
Ben Everitt (Milton Keynes North) (Con)
Kemi Badenoch
We are committed to improving skills in the economy and levelling up productivity across England. That will be achieved through our lifetime skills guarantee and further reforms, which will create jobs and opportunity across the country, supporting us to build back better from the coronavirus pandemic. We will provide further detail and a full conclusion to the review of post-18 education and funding at the next comprehensive spending review. I thank my hon. Friend and the Open University for their engagement on this so far.
Zarah Sultana (Coventry South) (Lab) [V]
Ian Levy (Blyth Valley) (Con)
Kemi Badenoch
Freeports will be national hubs for international trade, innovation and commerce and they will regenerate communities across the UK. The Ministry for Housing, Communities and Local Government led a fair, open and transparent selection process to determine successful freeport locations in England. Unfortunately, as with any competitive process, there will always be those that are unsuccessful, and I am afraid there are no plans to designate other freeports in England. Freeports are part of a wider package of UK Government support, which invests in skills, infrastructure and innovation at local, regional and national levels. As part of that package, Blyth was awarded £11 million through the future high streets fund in December and is also one of 101 towns eligible for up to £25 million funding from the towns fund.
Nick Fletcher (Don Valley) (Con) [V]
LGBT Conversion Therapy
Kemi Badenoch Excerpts(3 years, 2 months ago)
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The Minister for Equalities (Kemi Badenoch) [V]
It is a pleasure to speak under your chairmanship, Mr Gray. May I start by thanking those who signed the petition for raising the important issue of conversion therapy, and my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) for introducing the debate? I also thank all colleagues for speaking so passionately about this issue. I know how important it is to so many parliamentarians, and it is right that we should have this time to debate it. I will endeavour to answer the various questions put this evening.
I am pleased to be able to respond not just to acknowledge the importance of the topic but to say more about the Government’s approach to ending conversion therapy. We have a proud record of championing equal opportunity, and it is of great importance to me and the Government that everyone has the freedom to live their life as they see fit without fear or intimidation.
I assure hon. Members that we are committed to ending conversion therapy in the UK and we take the issue very seriously. The Prime Minister reiterated recently that we want to end conversion therapy and underlined that the practice has
“no place in a civilised society”.
It is indeed shocking to think that conversion therapy practices still take place in modern Britain, yet the 2017 national LGBT survey found that 5% of respondents—people in the UK—had been offered conversion therapy and 2% had undergone it. The national LGBT survey was launched in 2017 and received more than 108,000 responses, making it the largest survey of its kind in the UK. The aim was to gather more information about the life experiences of LGBT people in the UK and the biggest difficulties they face, including conversion therapy.
Acknowledging that conversion therapy is wrong and should end is only the first step in tackling such behaviours. The Government want to ensure that we correctly identify and capture these harmful practices. To do that, we have been working hard to establish a clear view of what constitutes conversion therapy. “Conversion therapy” is often used as an umbrella term for a number of acts. On the most egregious end of the spectrum are acts of violence. Around the world, sexual violence, including rape, is used in sinister attempts supposedly to cure someone of an innate aspect of their person. People may also be beaten, or forced to fast or to take snake-oil medicines, all because of who they are and who they love. We are fortunate that in this country we have cultivated a robust criminal law framework for dealing with those types of conversion therapy.
I would like to take this opportunity to be clear that if someone commits an existing offence in the course of conversion therapy, they will be prosecuted to the full extent of the law, no matter what their reason for doing so is. At the extreme end of such practices, someone could face charges of rape or grievous bodily harm. At the other end of the spectrum are acts that are primarily delivered through the spoken word or through the guise of healthcare support, such as advertising and selling products, or charging a fee to undergo conversion therapy practices.
The Government have been clear that we do not intend to stop those who wish to seek spiritual counselling as they explore their sexual orientation, but there will be cases when a line is crossed, where someone is actively seeking to change another’s sexual orientation—an innate aspect of their personal identity—via coercion under the guise of spiritual support. The Government will exercise great care when considering what does and does not constitute conversion therapy, and how to intervene. Just because greater care is required, however, it does not mean that we should shy from protecting our most vulnerable from those practices.
It is clear that conversion therapy is associated with significant mental health problems and isolation from a support network. That, in turn, can lead to homelessness and abuse. We are also alive to the need to ensure that the action we take does not push those practices underground, which could ultimately cause more harm to those who are victim to them. Our response to the issue will ensure that we end those practices, not hide them.
It may help to explain the work that the Government are doing to tackle conversion therapy. Officials are undertaking a review of the current legislative framework to see how conversion therapy can be stopped by making use of existing laws and offences. As I have mentioned previously, many acts of conversion therapy are already illegal, including sexual violence and kidnapping, as well as inciting violence. People who engage in those criminal activities can and will be prosecuted for doing so. Where dangerous practices are not already unlawful, we are examining the best ways to stop them without sending them underground.
The Government believe that a comprehensive approach is needed to end the suffering that those practices inflict. We need to explore all measures to combat those abhorrent practices, ensuring that survivors have access to the help and care that they need. In addition to the work on legislative and non-legislative measures to end conversion therapy, we have commissioned research into the scope of practices and the experiences of those subjected to conversion therapy, so that we can fully consider the needs of all those whom it affects. That is important in our approach to establishing the most effective way to stop it happening. Once the findings have been reviewed, we will continue to engage with key stakeholders to ensure that we progress an effective approach as quickly as we can.
I know that there may be questions around what a legal ban could include, and we have heard a number of views on that. We are actively considering that issue, on which we have been consulting widely to seek a broad range of views. We will continue that engagement to ensure that any action that we take is proportionate and effective. As I said earlier, I want to make it absolutely clear that we do not want to prevent LGBT people from seeking support on their own terms. People will always have the right to seek support from anyone and have conversations to rationalise and understand their own identity. We will not restrict the right to seek counsel when needed, but that does not mean that we will tolerate the use of conversion therapy described in the debate. We are working to understand the impacts on wider rights and freedoms of any Government action to tackle conversion therapy. The legal landscape is complex, and we want to ensure that we get our proposals absolutely right.
We will continue to engage with religious organisations and groups to understand how best support to LGBT people of faith. It is not the place of Government to dictate what is legitimate spiritual guidance, but it is the Government’s place to protect all their citizens, and we will not tolerate the use of harmful coercive practices under the guise of spiritual support. I am also pleased that all major counselling and psychotherapy bodies in the UK have agreed to tackle conversion therapy in healthcare settings. We will engage with experts to understand the best way of ending conversion therapy in these contexts in a targeted and proportionate way.
It is also encouraging to see jurisdictions around the world starting to take notice of the issue, and join us with their own commitments to ending conversion therapy. We are in conversations with international counterparts, both those who have introduced a variety of legislative and non-legislative actions and those who plan to. Although it is important to figure out what will work in a UK context, we may also look to our friends around the world to understand the effectiveness of different approaches. Hon. Members have mentioned, for example, that Germany has implemented a ban on conversion therapy for minors only, or when an adult has been coerced, and I understand that other countries such as Malta have also taken this route. However, we understand that different countries will take different approaches that best suit their needs. This is not a one-size-fits-all approach.
The safety of LGBT people in the UK in every aspect of their life is of the utmost importance to me, including in our work on conversion therapy. However, this is only part of the work we are doing to promote equality for everyone. The Government understand that colleagues across the House who have taken the time to attend the debate are passionate about the work that my officials and I are doing, so I wish to update them on all the broader LGBT work we are undertaking. In April 2019, we appointed Dr Michael Brady of King’s College Hospital to be the first national adviser on LGBT healthcare. This appointment shows the Government’s commitment to improving healthcare for all. I am very proud that in December 2020, the Department of Health and Social Care announced that men who have sex with men in a long-term relationship will be able to donate blood in England, following changes to blood donation criteria that will be implemented in the summer.
I am also aware that waiting times for gender identity services are currently very long. We are taking meaningful actions to address the historical problems that have resulted in long waiting times, and I am pleased that we will establish at least three new gender identity clinics over 2021, with the first of these opened by the Chelsea and Westminster NHS Foundation Trust in July. This is the first service of its kind established in the NHS in England for around 20 years.[Official Report, 15 March 2021, Vol. 691, c. 2MC.]
There is so much more that I would say about the work that the Government are doing, but I am afraid that we are out of time. Our goal now is to end these harmful practices, and we are going to engage widely and listen carefully so that we can develop measures that end them for good. I know that all Members are keen to know the timetable. We continue to work to ensure that the actions we take are proportionate and effective, and will set out our next steps soon. We have heard a range of views and voices, and it is imperative that we continue a constructive dialogue to ensure that we get our proposals right. To answer the question asked by the hon. Member for Arfon (Hywel Williams), officials from the Government Equalities Office have been in liaison with Welsh Government officials, and the Welsh Government have not requested devolved competence.
Put simply, being LGBT is not an illness to be treated or cured. This is an issue that has cross-party support, and the call to end conversion therapy is backed by those in the health, counselling and psychotherapy industry. I am absolutely committed to ensuring that LGBT people can be truly safe and free to live their life as they wish, and this will be the next important step in ending conversion therapy for good.
I take this opportunity to thank all colleagues who have spoken in today’s debate in support of ending conversion therapy. It is wonderful to see so many people united against this abhorrent practice, and I look forward to many more debates on the issue. I am happy to continue individual engagement, as I have already done, where there are further questions.
Covid-19: Ethnic Minority Disparities
Kemi Badenoch Excerpts(3 years, 2 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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Marsha De Cordova (Battersea) (Lab) [V]
(Urgent Question): To ask the Minister for Equalities if she will make a statement on her second quarterly report to the Prime Minister and Health Secretary on progress to understand and tackle covid-19 disparities experienced by individuals from an ethnic minority background.
The Minister for Equalities (Kemi Badenoch)
On Friday, I published my second quarterly report summarising the progress the Government have made in understanding and tackling covid-19 disparities experienced by ethnic minority groups. In my first report of 22 October, I concluded that ethnicity in its own right did not appear to be a factor in the disproportionately higher infection and mortality rates among ethnic minority groups. Rather, the evidence showed that a range of socioeconomic and geographical factors were responsible. The evidence base continues to grow.
The early second-wave data shows very different outcomes for different ethnic groups. In the first wave, for instance, black African men were four and a half times more likely to die from covid-19 than white British men of the same age, but in the early part of the second wave the risk of death was the same for both groups. The second wave has, however, had a much greater impact on some south Asian groups, driven primarily by differences in exposure and infection. This strengthens the argument that ethnic minorities should not be viewed as a single group in relation to covid-19 and means that our response to the pandemic and to the disproportionate impact that it has had on certain groups will continue to be shaped by the latest evidence.
The other major development since my first report is the approval of three covid-19 vaccines and the subsequent roll-out of the vaccination programme, with more than 20 million of those most at risk vaccinated so far. Confidence in the vaccine among ethnic minority groups is key, and my latest report summarises our efforts over the last quarter to tackle misinformation and promote uptake.
The report also sets out the extensive measures taken across central and local government to tackle covid-19 disparities, including the release in January of £23.75 million in funding to local authorities under the community champions scheme and a further £4.5 million in funding for four new research projects looking at the health, social, cultural and economic impacts of covid-19 on ethnic minority groups.
To conclude, my report outlines a number of next steps with this work and I will update the Prime Minister on progress at the end of the next quarter.
Marsha De Cordova [V]
Thank you, Mr Speaker, for granting this urgent question. We know that covid-19 has had a devastating and disproportionate impact on our black, Asian and ethnic minority communities. In the second wave, Bangladeshi and Pakistani people have been three times more likely to die, so my first question is to ask the Minister what steps the Government are taking to protect these groups.
I agree with the Minister that the term “BAME” has been unhelpful in assessing the impact of the virus. However, I do not agree with her conclusion that ethnicity is not a risk factor for covid-19, as in reality ethnicity risk factors cannot be separated from the socioeconomic risk factors. For example, ethnic minorities are more likely to live in overcrowded and intergenerational homes where they are unable to self-isolate effectively. What action is being taken to address this issue, especially as schools are set to return next week?
The vaccine roll-out offers hope, but take-up remains low among our ethnic minorities. The Minister’s report rightly lists misinformation and disinformation as contributing factors, but fails to address the mistrust and long-standing health inequalities faced by some ethnic minority communities. What actions are being taken to tackle issues of historical mistrust? We need localised data from those who choose not to take the vaccine so that we can effectively target those people, so when will that data finally be published?
Funding for community champions is welcome, but why have only two of the five most diverse local authorities in the UK received funding? Will she work with her Cabinet colleagues to ensure that the most diverse areas receive funding to increase take-up? The Minister rightly states that a one-size-fits-all approach cannot be used. What changes can we expect to see from this Government? Will she publish equality impact assessments on pandemic responses, including vaccine uptake? Finally, when can we expect to see the delayed report from the Commission on Race and Ethnic Disparities so that we can help to create the more equal society that we all desire?
Kemi Badenoch
I thank the hon. Lady for her questions, and I will try to address each of them. She mentioned what the Government are doing to assist south Asian groups, where the numbers and the impact appear to be increasing. We have taken a number of steps to mitigate the impact of covid-19 on these groups, including targeting those occupations with larger Pakistani and Bangladeshi workforces. For example, we issued new guidance to private hire vehicle and taxi drivers in November—updated in January—about how to protect themselves from covid-19. Working with religious leaders and others, we have taken steps to promote vaccine uptake among these groups, including housing vaccination centres in mosques and other places of worship. The race disparity unit and No. 10 recently held roundtables with representatives from south Asian groups on how to promote vaccine uptake.
The data is changing every day, so we try to make sure that we have a clearer picture before we base any actions and recommendations on what is coming out. This is likely to be a dynamic situation, but I will continue to update the House as we know more.
I can tell the hon. Lady that the Commission on Race and Ethnic Disparities is due to report imminently. It is an independent commission, so I cannot control exactly when it submits its findings, but I have had regular updates from the chair, and I know it is finalising recommendations and I expect the report shortly.
The hon. Lady also mentioned the recording of ethnicity. I am pleased to tell her that data on ethnicity is now being published. It was first published on 28 January, based on the availability and quality of data. On the point of equality impact assessments, she does know that they are based on the information provided to Departments, and it is up to them to decide what they do, but we do not routinely publish equality impact assessments.
The hon. Lady asked specifically about vaccine uptake, and I can tell her that I wrote to the Joint Committee on Vaccination and Immunisation, which is determining the prioritisation with the findings from our report. I know that this issue is being taken into account, along with the covid prioritisation tool, so the information is in the public domain and does not require an equality impact assessment to know.
Caroline Nokes (Romsey and Southampton North) (Con) [V]
My hon. Friend is right to point out that we need to have trusted voices and community champions promoting the roll-out of the vaccine and vaccine uptake. We know that there is a higher excess mortality risk for south Asian women, so can I ask my hon. Friend whether she is making sure that we also reach out to female voices in communities, including organisations such as the Muslim Women’s Network UK, to make sure that they are playing a part in increasing the uptake of vaccines?
Kemi Badenoch
My right hon. Friend is right to point out that we should not assume that community organisations, which might be male-dominated, are reaching female members of ethnic minority groups, and I will ensure that we continue to work on that. I will check with officials to ensure that the groups she has mentioned are included in the ones we are providing advice and guidance to and are liaising with.
Kirsten Oswald (East Renfrewshire) (SNP) [V]
There is clear evidence of both higher covid-19 infection and higher mortality rates among people from ethnic minority backgrounds, as well as greater pandemic-related economic damage affecting these diverse groups. I also know from my own constituency that the no recourse to public funds policy locks many people, including children, out of vital support. Will the Minister urge her colleagues in the UK Government to review this damaging and discriminatory policy, which has such a disproportionate impact on BAME families?
Debate on economic inequality is often undermined by a lack of reliable data. Will the Minister follow the recommendations of the Women and Equalities Committee and publish proposals for the introduction of ethnicity and disability pay gap reporting? Will she also back calls for equality impact assessments to be published for the coronavirus job retention scheme and the self-employment income support scheme, as well as the introduction of redundancy pay gap reporting by protected characteristics?
Kemi Badenoch
With regard to the support that the Government are providing to those who have no recourse to public funds, many of the wide-ranging covid-19 measures that the Government have put in place are available to migrants with no recourse to public funds, such as the coronavirus job retention scheme, the self-employment income support scheme and support allowances that are not classed as public funds. In addition, we temporarily extended free school meals to include some groups who have no recourse to public funds. As I have said to the hon. Lady’s Scottish National party colleagues, and probably to her as well, it is really important that we do not conflate ethnic minorities with recent migrants; they are two completely distinct groups and it is wrong to mix them up in this way. We are ensuring that we are providing support to those who are most vulnerable and who need it most.
Mrs Maria Miller (Basingstoke) (Con) [V]
I welcome my hon. Friend’s recent report and all that she is doing. Will she join me in recognising the role of local community leadership in addressing these differences in vaccine take-up? For instance, in my own community, Grace Powell from Basingstoke Caribbean Society, Kishor Patel from Basingstoke Hindu Society and Poonam Gurung from Basingstoke Nepalese Community are all publicly advocating vaccination as the best way to keep the whole community safe.
Kemi Badenoch
My right hon. Friend raises a very good point. I congratulate all of her constituents who are doing important work in the community by raising awareness of what is happening with covid-19, and ensuring that people have access to the best advice and guidance. It is critical that we continue to support those community champions. That is one of the reasons that we are funding the community champions scheme, which ensures that we improve the reach of official public health guidance and other messaging or communications about the virus into those hard-to-reach areas.
Wera Hobhouse (Bath) (LD) [V]
In the year to September 2020, the drop in employment for people from ethnic minorities was 26 times higher than for white workers. Unless the Government take meaningful action to address workforce inequalities, including the ethnicity pay gap, the fall-out from covid will make these glaring inequalities even worse. May I ask again: will the Government finally commit to bringing forward the long-awaited ethnicity pay gap reporting?
Kemi Badenoch
I believe that we have answered this question before; if memory serves me correctly, I think I have written to the hon. Lady on this subject. It is something that the Commission on Race and Ethnic Disparities is looking at. The commission will be reporting shortly and will be able to give a statement on ethnicity pay reporting. I would like the hon. Lady to send me her statistics about workforce inequality; they are not statistics with which I am familiar, and it would be very interesting to look at the evidence base on that.
Robbie Moore (Keighley) (Con)
The vaccine roll-out is the best tool in our fight against covid-19, and we must do all we can to ensure that there are no racial disparities in its uptake. This Saturday, I was lucky enough to visit Keighley central mosque, where 525 vaccinations were delivered on that day alone. Will my hon. Friend join me in congratulating all those involved, particularly Mohammed Nazam from Keighley Muslim Association, and the Modality Partnership, for all their efforts to ensure that everyone is protected against covid-19?
Kemi Badenoch
I agree with my hon. Friend, and add my congratulations to Keighley Muslim Association on its success, and particularly to Mohammed Nazam. Working with religious leaders and others to promote vaccine uptake among ethnic minorities, including housing vaccination centres in mosques and other places of worship, is important to ensure that we achieve good vaccine coverage within these groups. The NHS has now opened 47 vaccination sites in places of worship and community centres, as this boosts perceptions of vaccine safety and improves access. High-profile visits to these sites have a huge impact on the faith community being visited.
Navendu Mishra (Stockport) (Lab) [V]
Polling by HOPE not hate found that black people were more likely than any other group to blame a previous bad experience with the health system as justification for not wanting the vaccine. What steps will the Minister take to build trust in black communities who have experienced structural racism in the health system?
Kemi Badenoch
The Government are doing everything they can to improve vaccine confidence and reduce vaccine hesitancy. Vaccines are the best way to protect people from coronavirus and save thousands of lives, and we want every eligible person to benefit from the offer of a free vaccine, no matter their ethnicity or religious beliefs.
The Department of Health and Social Care and the NHS are working closely with black, Asian and minority ethnic communities to support those receiving a vaccine. As part of that, we are working with faith and community leaders to give them advice and information about the universal benefits of vaccination and how their communities can get a vaccine. That has incorporated many activities. Most recently, as the hon. Gentleman will probably be aware, the Minister for Covid Vaccine Deployment requested a cross-party video for black MPs, so that we can show that we as parliamentarians believe that this is important, and I have promoted that in my role as Minister for Equalities.
Dr Kieran Mullan (Crewe and Nantwich) (Con) [V]
Does the Minister agree that vaccines are the best way for people from ethnic minority backgrounds to protect themselves from the harmful effects of covid? Can she update us on the latest work that her Department is doing to support that?
Kemi Badenoch
I can. We must stress that there is light at the end of the tunnel, and as the vaccine roll-out continues, I urge everyone who is offered one to take the opportunity to protect themselves, their family and their community. It is important that we tackle misinformation in particular. Across Government, we are spending tens of millions of pounds on public health communications, and my hon. Friend will have seen a significant increase in public vaccine communications. The NHS website remains the most trusted health website, and the counter-disinformation unit is rebutting false information, especially where the intent is malicious or dangerous to public health. I thank him for raising this issue.
Ms Diane Abbott (Hackney North and Stoke Newington) (Lab) [V]
The Minister is insistent that the wildly disproportionate rate of infection and death among black, Asian and minority ethnic communities has nothing to do with the fact that they are black, Asian or from a minority ethnic group. Has it occurred to her that the fact that they are more likely to be in overcrowded, poor housing conditions and in the types of job that leave them liable to infection is not random, but is to do with race and ethnicity?
Will the Minister do more in the area of data? First, will she speak to colleagues about having ethnicity routinely put on death certificates? Can we have more information on the Haredi and ultra-orthodox Jewish communities, who have had disproportionate levels of deaths from covid in America? Will she speak to Public Health England to make sure that local directors of public health make constituency-level data, particularly on ethnicity, available to constituency stakeholders, including Members of Parliament?
Kemi Badenoch
I thank the right hon. Lady for her question. I wish that she had actually read my reports, because she would have seen that I addressed that not just in the October report, but in the one that came out last week. Recording ethnicity data on death certificates was one of the recommendations in my previous report. It is not something that can be done overnight—it will probably require legislation—but we are on our way to getting it, so that is some good news.
The right hon. Lady also mentioned the orthodox Jewish community—finally someone from the Labour Benches has talked about this community, and I am very pleased that she has. Research from the London School of Hygiene and Tropical Medicine estimated that 64% of the orthodox Jewish community may have had covid-19 in 2020. The researchers said that the reasons behind this high rate of infection are not yet known.
Strictly orthodox families have significantly larger households than the UK average. They also live in areas of increased population density and, in pre-pandemic times, had regular attendance at communal events and gatherings. I use them as an example because this is why it is wrong for us to mix together lots of different groups. The orthodox Jewish community has been more impacted than many of the ethnic minority groups that get a lot of attention in the press, but we do not say that that is due to structural antisemitism. We look at the underlying factors. Where there are multi-generational households, for instance, that is not due to racism, but is often due to cultural factors. We are not going to take grandparents away from their families because of covid. We are going to provide them with guidance to ensure that they can look after themselves safely; that is this Government’s priority.
Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con) [V]
I commend my hon. Friend on the outstanding job that she is doing in encouraging the whole population take the vaccine when they are offered it, because that is so important. In an article on LabourList on 19 February reflecting on covid-19, Labour’s shadow Equalities Minister, the hon. Member for Battersea (Marsha De Cordova), claimed that Government Ministers continue to dismiss and deny “the realities of racism”, and went on to state that “structural racism” was the cause of those disparities. What is the Government’s view on this question?
Kemi Badenoch
I thank my hon. Friend for the question, and for the opportunity to reiterate what I said to the hon. Member for Battersea (Marsha De Cordova). Of course racism exists; no one in this Government has ever denied the existence of racism. In fact, I have spoken about my personal experience, as did the Home Secretary at this very Dispatch Box—and 30 Labour MPs, including the hon. Lady, dismissed the Home Secretary’s experiences as gaslighting. However, we will not assume that every issue experienced by ethnic minorities is caused by racism without looking at the evidence. We develop solutions based on where the evidence leads, unlike Labour, whose report in October recommended that we decolonise the curriculum to address covid-19.
There is a legitimate debate to be had on how we tackle racism and address ethnic disparities, but although our means of achieving these goals may differ, that should in no way undermine our shared commitment to building a fairer and more cohesive society. Let me be clear to those who have either misunderstood or deliberately choose to misrepresent what the Government have said: this Government condemn racism, an evil which has no place in a civilised society.
Rob Butler (Aylesbury) (Con) [V]
Aylesbury mosque is working extremely hard to spread accurate messages and dispel fake news about the vaccine, both at Friday prayers and on its Facebook page. Will my hon. Friend join me in thanking the Aylesbury mosque committee for these efforts and for showing this leadership, and does she agree that faith groups have a crucial role to play in telling the truth and encouraging take-up of the vaccine across all parts of our community?
Kemi Badenoch
My hon. Friend is absolutely right, and I add my thanks to the Aylesbury mosque for its vital work in promoting vaccine uptake. Working with religious leaders and other respected local voices to promote vaccine uptake among ethnic minorities is key to ensuring that we reach all parts of the community. As I mentioned, the NHS has now opened 47 vaccination sites in places of worship and community centres across the country, and it is fantastic to get feedback from local MPs on how this is going.
Joanna Cherry (Edinburgh South West) (SNP) [V]
The Joint Committee on Human Rights has heard evidence that BAME communities, as well as being under-protected from covid, have been over-policed. This is evidenced by a considerable disparity in the number of fixed-penalty notices issued to BAME people over white people in England and Wales. Will the Minister consider including inequality of policing outcomes as well as health outcomes in her quarterly reports?
Kemi Badenoch
I thank the hon. and learned Lady for her question. Inequality of policing outcomes, I am afraid, is outside the remit of this report. We are looking purely from a health perspective at the disproportionate impact of covid-19, but I take the point that she made, and I think she will find that we will talk about this shortly, when the Commission on Race and Ethnic Disparities reports, because it has been looking at these specific issues.
Imran Ahmad Khan (Wakefield) (Con) [V]
Unlike some detractors, I have read the latest covid disparities report, which has been endorsed by clinicians and epidemiologists and is testament to my hon. Friend’s efforts in leading and driving the agenda forward, but naturally there is still more to do. Will she ensure that, as we unlock with our road map, we retain a focus on the groups who have been most disproportionately impacted by the second wave?
Kemi Badenoch
Yes, I can confirm that to my hon. Friend. The Government are looking at the most vulnerable and those who need our protection, not just in the context of covid-19, but more widely. To tackle unfairness in our society, we are looking at how we can open up opportunities to everyone, no matter their class, ethnicity or background. It is not a case of choosing one group over another. We want equality for everyone, everywhere. The work that we will do in the Government Equalities Office following the report from the Commission on Race and Ethnic Disparities will continue to address the structural issues that I know many Members are concerned about.
Kate Osamor (Edmonton) (Lab/Co-op) [V]
Given the greater risk factors that mean that black women are four times more likely to die in childbirth than white women, what accountability mechanisms has the Minister put in place to monitor and evaluate the success of the pilot schemes to address the inequalities mentioned in the report? How will she guarantee that these pilots can be rolled out across the country, so that maternal mortality does not become a postcode lottery for black women?
Kemi Badenoch
I thank the hon. Lady for her question. I know that Health Ministers are taking this issue seriously; it is something that cuts across our briefs. I have taken a particular interest because of my own experience of having three children within the maternal health sector. Following a joint ministerial roundtable in September 2020, the race disparity unit, which reports to me, has been supporting the Department of Health and Social Care in driving positive actions in maternity services to improve outcomes for ethnic minority women. That includes the recently launched NHS campaign “Help us help you”, which informs pregnant women about the importance of attending check-ups, and provides reassurance that the NHS is there to see them safely, because covid has affected the way that maternity works in the NHS. We are hoping that as we continue to unlock and come out of this, things will go back to normal.
Kate Griffiths (Burton) (Con) [V]
We all know that vaccination is imperative for protecting lives and for economic recovery. I am therefore concerned about the low vaccination take-up among the BAME community. In Burton, there is a campaign targeted at reaching anyone from the BAME community who should have been vaccinated but has not, and a pop-up vaccination clinic has been arranged for this Friday at a local mosque. May I urge my hon. Friend to ensure that resources are available for further work to reach out to those communities and ensure more clinics in communities where take-up is low?
Kemi Badenoch
We are ensuring that public health messages are accessible, and are published in a large number of media that ethnic minorities read, watch and listen to. That will be critical in ensuring that the message gets to all communities, especially those that are harder to reach. I am pleased to hear about the vaccination efforts in Burton, and that local mosques are being used. This is a good time to re-emphasise that local efforts will be key in driving vaccine uptake. It cannot all be done from Whitehall and Westminster. We are delivering communication on the channels that we believe people from ethnic minorities use, and are communicating through individuals such as religious and community leaders, as I have mentioned. The DHSC has also set up regular interviews with clinicians for more than 20 ethnic minority newspapers and programmes, including The Voice, BBC Asian Network, Al Jazeera, British Muslim TV, Zee TV, Hamodia and the Jewish Chronicle.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
The Minister in her report highlights that there is £4.5 million of Government money to invest in research, including on the economic impacts on ethnic minority groups. With so many frontline workers having been removed from their posts for their own protection—that is the right move—is any of that money being spent on looking at the impact on their career paths of their having lost out on opportunities?
Kemi Badenoch
I thank the hon. Lady for that question. I recall having this discussion just before October, in relation to my previous report. I specifically raised with DHSC colleagues the point that people who are being removed from the frontline because of their risk should not have any career impacts. I can write to her with the full details. I cannot recollect off the top of my head where we ended up, but I know that I have an answer for her.
Elliot Colburn (Carshalton and Wallington) (Con) [V]
I recently held a virtual vaccine roundtable in Carshalton and Wallington with NHS leaders such as Dr Anu Jacob, Arlene Wellman and Nadine Wyatt, and community leaders such as Councillor Lily Bande, Councillor Param Nandha and Mukesh Rao, to encourage everyone, including ethnic minority groups, to get the vaccine, and it was a great success. I welcome the Government’s work to communicate the benefits of getting a covid vaccine to hard-to-reach groups, but could my hon. Friend assure me that we will continue to support community leaders to ensure that the message gets through to every single part of our communities?
Kemi Badenoch
Yes, I can assure my hon. Friend of that. It is what I responded to my hon. Friend the Member for Burton (Kate Griffiths), and I can reiterate it again now. What I would also say is that we want to assess the effectiveness of the scheme, so it is not just about letting people know that it has happened, but about checking that what we are doing and what we think is happening is working. Participating local authorities will provide regular progress reports over the course of the community champions programme, for example, so that we can evaluate exactly what is going on. One of the next steps in my report is to share the learning from the programme and to maximise the benefits from the funding we have given so that everyone, including those who have not participated in the scheme, can benefit.
Zarah Sultana (Coventry South) (Lab) [V]
When I challenged the Minister on the disproportionate impact of covid-19 on black and minority ethnic groups after the first wave of the virus, the Minister denied that systemic injustice was to blame. This new report shows that, in the second wave, Bangladeshi and Pakistani people were three times more likely to die from covid, and that black and minority ethnic communities as a whole are still significantly disproportionately in critical care with it. Does the Minister now acknowledge that it is systemic injustice that black and minority ethnic communities face from higher rates of poverty and overcrowded housing to higher rates of frontline work and barriers to accessing healthcare?
Kemi Badenoch
I think it is a really interesting question that the hon. Lady has asked. She says that I dismissed the claim that systemic injustice was to blame, but the fact is that we did not know what was to blame at that time. That was in June, three months before my report.
What we need to understand is what exactly we mean by systemic and structural. We have seen that the data show that, at some point, ethnic minority gaps in terms of disproportionate impact completely disappeared. If these were structural issues, that is not what we would expect to see. For example, at the beginning of the second wave, we saw the disparity between black groups completely close. It is not credible to say that people were being structurally racist and stopped being so during the summer, and then over Christmas these structural issues re-emerged. That does not explain what is happening.
We need to look at what the data tells us. We cannot start from the conclusion that we want this to be systemic injustice so that we can continue to move from a political ideological perspective. We are using a scientific perspective —what does the data tell us?—and the data is telling us that this is a very complex situation. There are multiple factors, and that is why the recommendations, which the Government have, are addressing those underlying factors. It is not a genetic disease, and being an ethnic minority is not the risk factor specifically.
Marco Longhi (Dudley North) (Con) [V]
Does my hon. Friend share my regret that some Members opposite have unfortunately promoted some disinformation about the effectiveness of covid-19 vaccines, which may have contributed to lower take-up in some communities, and does she agree that elected members, whether in local or national Government, all have a responsibility to not undermine the vaccine roll-out, which has already protected over 20 million of our most vulnerable people?
Kemi Badenoch
My hon. Friend is absolutely right. We in this House must recognise that we have positions of responsibility. I think I have said before at this Dispatch Box that while it might be fun to get lots of retweets for promoting messages targeting the confidence that people have in the vaccine, it is definitely not something that we should see elected parliamentarians doing. We have seen Members in this House make comments either disparaging the vaccine or claiming that the Government are using ethnic minorities as cannon fodder. It is really irresponsible, and it does directly contribute to vaccine hesitancy. If we are going to get out of this pandemic and if we are going to continue down the road map and unlock our economy, we need everyone to be responsible and to stick to the public health messaging that is approved by the NHS.
Hywel Williams (Arfon) (PC) [V]
Thirty thousand black, Asian and minority ethnic people live across the northern and western counties of Wales. Dispersed rural communities such as these are harder for health authorities to reach and may not have the same density of support networks as communities in urban areas. What discussions has the Department had with colleagues and the Welsh Government to ensure that in particular black, Asian and minority ethnic people in rural Wales and indeed across rural UK have access to the information and support they need to get their vaccination?
Kemi Badenoch
I thank the hon. Gentleman for raising that matter. It is important. A lot of what we do is focused on NHS England, but I can assure him that we work with partners across all the devolved Administrations. For example, I have been at Covid-O meetings at which we spoke to representatives of the Welsh Government who were aware of these issues. We share our information widely, but if there is anything specific that he would like to know he should write to me and I will make sure that I obtain the answer that may be most appropriate for his constituency.
Mr Philip Hollobone (Kettering) (Con)
I warmly commend and support my hon. Friend for the work that she has done on covid disparities. She is right to say that we must go where the data tells us. Can she confirm that across all age groups and all ethnicities men are far more likely to be hospitalised and killed by the virus than women? In the 40 to 49 age group, men are twice as likely to suffer critical illness. Why is that, and what are the implications for the Government response to the pandemic?
Kemi Badenoch
My hon. Friend asks a very important question, and he is absolutely right. We know that the virus targets different groups differently, but we do not necessarily have all the answers. Some of the issues around the disproportionate impact on men are to do with occupational risk, which is not something we can control for very easily. That is why we are making sure that we address the pandemic holistically. We do not stigmatise any specific groups, but we make sure that we target information and assistance on those who are most vulnerable, particularly the elderly, who are 70 to 80 times more likely to contract the disease and die from it than other age groups.
Barbara Keeley (Worsley and Eccles South) (Lab) [V]
We know that one of the drivers of the spread of covid-19 is people being unable to self-isolate, because they cannot afford to miss work. That is a particular problem for people in insecure or zero-hours contract jobs. Black, Asian and minority-ethnic people are more likely to be on those contracts, so are less likely to qualify for sick pay. If we want to drive down covid-19 rates everyone needs to be able to self-isolate, so will the Minister work with her colleagues to expand eligibility for the self-isolation support payment to everyone who needs it?
Kemi Badenoch
What I can tell the hon. Lady is that, certainly in the Treasury, we look at how different groups are being impacted to make sure that we target help on those who are most vulnerable. All the various schemes—not just the ones that I have mentioned such as the self-employment income support scheme or the CJRS but others such as kickstarter—are targeted at the groups that are most vulnerable, which includes ethnic minority people in particular.
Peter Gibson (Darlington) (Con) [V]
I thank my hon. Friend for all that she is doing to help the message to reach our ethnic minorities. While the Government follow the science the Opposition have called for 10 different employment groups to move up the priority list, which the JCVI has said would slow vaccine roll-out. Does she agree that that would risk needlessly exposing vulnerable people to harm for longer, and that it shows that the Labour party is more interested in chasing headlines than following the science?
Kemi Badenoch
My hon. Friend is absolutely right. We need to prioritise those who are most vulnerable, and if every single group believes that it deserves priority, that means we are not carrying out any prioritisation at all. The JCVI is independent, and we feed information into it. I wrote to it in December with the findings of my work, and it takes all of that into account. It looks at all the various factors, but we need to trust that that independent committee is doing the right thing, and I believe that it is.
Tulip Siddiq (Hampstead and Kilburn) (Lab) [V]
In a speech last year, I pointed out that, despite being at higher risk from covid-19, people from black African and Caribbean backgrounds made up only 0.5% of those taking part in vaccine trials. I warned that that trend might be seen in a vaccine roll-out without a proper plan to tackle disinformation and boost confidence. The data and my own experience of volunteering at my local vaccination centre suggest that my worst fears have been realised. Bearing that in mind, can the Minister explain why it was only last month that a vaccine take-up plan was published and MPs were contacted to help?
Kemi Badenoch
I am afraid the hon. Lady is confusing one initiative for helping to improve vaccine take-up with the vaccine take-up plan. I wrote to her in October, asking her to take part in the vaccine trials. I sent that message to the Opposition Whips Office as well as to the Government Whips Office. I took part in vaccine trials in October, and there is a big difference between taking part in vaccine trials, and being vaccine-confident. One key thing about disinformation is that people believe the Government are testing vaccines on ethnic minorities, and the messaging we need to use for vaccine trials, which the hon. Lady mentioned earlier, is completely different from that needed for a vaccine-confidence campaign. She can rest assured that those of us in government know what we are doing, even if she does not.
Felicity Buchan (Kensington) (Con)
I recently visited the vaccination centre at St Charles’ Hospital in North Kensington, and while I was there I was delighted to see that the majority of patients getting the jabs were from ethnic minorities. We have also seen a pop-up centre at the mosque, Al-Minaar, in North Kensington. Does my hon. Friend agree that we need to focus on discrete individual communities to ensure that vaccine take-up is as high as possible?
Kemi Badenoch
I agree with my hon. Friend, and that is one of the reasons we are discouraging the use of the term “BAME” when talking about these issues, as this conflates lots of different communities. We must be very specific about who we are talking about, and what their individual needs are. Various different initiatives will be tackled, based on the specific needs of community groups, and I am pleased that it looks as if there is successful vaccine take-up in her constituency.
Ruth Cadbury (Brentford and Isleworth) (Lab) [V]
Will the Minister outline the application process for, and the distribution of, community champion funding? How will highly diverse boroughs like Hounslow which did not receive funding benefit from that investment in the future?
Kemi Badenoch
Our methodology drew on a wide range of data sources, including long-term data from the DHSC and Public Health England on covid-19 incidence, data on social integration, and evidence on the prevalence and specific support needs of, for example, disabled people in an area. The methodology was tested across the Government, and with many colleagues in the local government sector, before the funding was announced. To reach disproportionately impacted communities beyond those 60 areas, the Ministry of Housing, Communities and Local Government has funded two voluntary community and social enterprises to carry out national communication and engagement activities, including health promotion and encouraging vaccine uptake.
We are trying to ensure that best practice is shared across local community areas. It is not just the presence of ethnic minority communities that means they are at risk—indeed, I spoke earlier about what places a specific individual at risk. We consider multiple factors, and those are what end up determining which communities get the funding. I assure the hon. Lady that her community will benefit, even if it does not get specific money under this scheme.
Jacob Young (Redcar) (Con)
I commend the Minister and her Department for their efforts in encouraging the vaccine take-up for all. For my constituents in Redcar and Cleveland, one of the biggest hurdles is the distance to the local mass vaccine centre, which in some cases is more than 25 miles. Will she join me in calling on the Government to roll out a mass vaccine centre in Teesside, so that we can encourage take-up for all?
Kemi Badenoch
I am sorry to hear that some people are finding the distance difficult when it comes to getting their vaccine, and I will take up that issue on my hon. Friend’s behalf to find out what is going on.
Layla Moran (Oxford West and Abingdon) (LD) [V]
The Minister will know that the key to protecting all communities from this virus is an effective test, trace and—especially—isolate system, which is difficult for someone in an overcrowded household where others rely on them. The all-party group on coronavirus, which I chair, has heard compelling evidence that countries that have best protected their most vulnerable communities tend to offer a menu of support services to help them quarantine, which often includes free hotel accommodation should they need it. Given the worry that the virus may now be persistently stubborn, and in fact endemic in some communities, why have we not introduced free hotel accommodation for those who need it, as standard here in the UK?
Kemi Badenoch
I thank the hon. Lady for her question. I am sure that Department of Health and Social Care Ministers will be able to provide a more extensive answer specifically on free hotels. From my perspective, the vaccine is the route out of the pandemic, which is why we are making sure that those who are most vulnerable are getting the vaccine and that any hesitancy is reduced. We are also making sure that there are isolation payments for those who are unable to work to ensure they are not financially impacted.
Mike Wood (Dudley South) (Con) [V]
I welcome the Government’s decision to ensure that all adults on the learning and disability register are to be prioritised for a covid-19 vaccine, after the efforts of broadcaster Jo Whiley and disabilities charities. Can my hon. Friend confirm that everyone who is on their GP’s learning and disability register will now be invited for their jab, providing protection to a group who we know are at a higher risk from the virus?
Kemi Badenoch
Yes. The Government are following the recommendations of the independent experts at the JCVI on which groups to prioritise for covid-19 vaccines. Following its updated advice, to make the process simpler and faster we will be inviting everyone for vaccination who is on their GP’s learning and disability register. This will mean that those who are at a higher risk from the virus can get the protection they need. It is not a change in the priority list from the JCVI, but an operational clarification to ensure that those with a severe and profound learning disability receive their offer as part of cohort 6. Adults with Down’s syndrome face an evidenced high risk of severe outcomes and have therefore already been added to the list of clinically extremely vulnerable conditions. People with Down’s syndrome were prioritised for the vaccine in group 4 accordingly. As my hon. Friend can see, and I thank him for his question, this is something we are very much alive to. We continue to look at the data to make the best recommendations for vulnerable disabled people.
Marion Fellows (Motherwell and Wishaw) (SNP) [V]
The no recourse to public funds policy is locking thousands of people out of vital support and has a disproportionate impact on black and minority ethnic families, evidenced by the fact that 82% of Citizens Advice clients looking for advice about NRPF and non-EU migrant access to benefits were people of colour. Does the Minister intend to urge the UK Government to review their NRPF policy?
Kemi Badenoch
Madam Deputy Speaker, I refer the hon. Lady to the answer I gave to the hon. Member for East Renfrewshire (Kirsten Oswald), who asked an identical question.
Madam Deputy Speaker (Dame Eleanor Laing)
That concludes the urgent question proceedings. I will now suspend the House for three minutes in order to allow arrangements to be made for the next item of business.
Van benefit and Car and Van Fuel Benefit Order 2021
Kemi Badenoch Excerpts(3 years, 3 months ago)
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The Exchequer Secretary to the Treasury (Kemi Badenoch)
The van benefit charge and fuel benefit charges for cars and vans will be uprated by the consumer price index from 6 April 2021. The uprate will take effect as follows:
Van Benefit Charge will uprate from £3,490 to £3,500
Car Fuel Benefit Charge multiplier will uprate from £24,500 to £24,600
Van Fuel Benefit Charge will uprate from £666 to £669
This measure is being announced outside of the normal fiscal process to ensure employers and HMRC are given enough time to prepare for the uprate, ahead of the 2021-22 tax year.
The Government will lay the statutory instrument to uprate these charges before the House on 9 March 2021. A tax information and impact note (TIIN) will be published at Budget 2021 and will be available at www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.
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Exiting the European Union (Excise)
Kemi Badenoch Excerpts(3 years, 3 months ago)
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The Exchequer Secretary to the Treasury (Kemi Badenoch)
Britain’s departure from the European Union brings with it the freedom to reintroduce duty-free sales and make other tax changes that will deliver Brexit benefits to British tourists. Such gains have been enacted by the Travellers’ Allowances and Miscellaneous Provisions (EU Exit) Regulations 2020, which also introduced crucial changes to the VAT and excise rules for passengers following the transition period.
The new rules form a carefully considered package of measures that was introduced following a wide-ranging consultation. The changes take into consideration the Government’s aim of minimising disruption at the border, along with World Trade Organisation commitments that require the Government to align the treatment of passengers travelling to and from the EU and non-EU countries.
The provisions in the SI ensure the smooth flow of passengers entering Great Britain by reducing the need for them to stop at the border to declare goods that they have purchased. My hon. Friend the Member for North Norfolk (Duncan Baker) elaborated on how, from his personal experience, the measure removes bureaucracy. Without the instrument, EU and non-EU passengers would be treated differently, traveller flow at the border would be disrupted and the UK would breach its international obligations under World Trade Organisation law.
The measures I shall outline will have a hugely positive impact on UK travellers for a number of reasons. As my hon. Friend the Member for South Ribble (Katherine Fletcher) said, for the first time in more than two decades, the tens of millions of UK passengers who visit the EU every year—in non-pandemic times—will be able to enjoy duty-free sales. For example, with UK excise duty no longer due, a 1 litre bottle of Scotch could be around £11.50 cheaper.
In addition, we have quadrupled the alcohol allowance for passengers arriving in Great Britain, making it one of the most generous in the world. Under the new rules, passengers will be allowed to bring into Great Britain three crates of beer, two cases of wine and one case of champagne for personal use without having to pay the relevant taxes. This represents an excise duty saving of up to £120. My hon. Friend the Member for Dover (Mrs Elphicke) praised of the significance of such measures to her constituency, which has a port for travel straight to the EU.
I recognise the concerns expressed by the hon. Members for Paisley and Renfrewshire North (Gavin Newlands) and for Gordon (Richard Thomson), along with others, about the ending of the VAT retail export scheme and the removal of tax-free airside sales. Although the latter policy change on tax-free airside sales is not actually part of this instrument, let me explain our thinking behind the decisions.
In simple terms, the maintenance of the VAT RES and tax-free airside sales after the end of the transition period was never an option for the Government. In reality, the choice we faced was between extending the schemes to all EU travellers or removing them both completely, because the World Trade Organisation rules specify that goods bound for different destinations must be treated the same. However, because EU visitors have never benefited from the VAT RES and still spend in UK shops without it, to extend it now would present a large dead-weight loss, and in effect the Government would be subsidising the shopping of EU visitors. I am sure hon. Members would agree that this would be an unwise use of taxpayers’ hard-earned cash.
My hon. Friend the Member for South Cambridgeshire (Anthony Browne) set out clearly and concisely why this was not a fair and efficient use of taxpayers’ money, and I thank him for making such a well-argued case. In addition, data and evidence submitted as part of the Government’s consultation demonstrated that the VAT RES disproportionately benefited London and the south-east of England. In fact, around 90% of sales were made in London and Bicester Village in Oxfordshire. My hon. Friend the Member for Penistone and Stocksbridge (Miriam Cates) made the excellent point that other regions and, in particular, smaller high streets did not appear to gain as much, if at all.
I take the point made by my hon. Friend the Member for Kensington (Felicity Buchan). She and I have had several discussions on this issue and I have also had extensive representations from my hon. Friend the Member for Moray (Douglas Ross). However, they will both know that the Treasury disagrees with their assessments. The Office for Budget Responsibility estimates that the withdrawal of the VAT RES will result in a significant direct Exchequer saving of £1.84 billion in just over five years. In addition, the OBR estimates that the withdrawal of tax-free airside sales will result in a saving of £780 million over the same period.
David Linden
With all those forecasts in place, can the Minister tell the House how many jobs—such as that of my constituent, Sharon, whom I represent—will be lost when the Government proceed with this?
Kemi Badenoch
I thank the hon. Member for his representation. That information can be found in the tax impact information note.
I assure hon. Members that the Treasury will continue to keep these measures and their impacts under review. Let me turn more specifically to the prayer motion tabled against this instrument. I fully recognise the desire of hon. Members to champion Britain’s retail and tourism sectors. I share the same desire to see those important industries prosper. This package of measures will boost all airports, including those such as Edinburgh, Cardiff and Newcastle. These hubs primarily deal in travel to the EU, and so could make only limited use of airside tax-free sales anyway. They will now stand to gain significantly from duty-free sales.
As I have demonstrated, the measures contained in this legislation constitute a more equitable distribution of benefits to both consumers and airports across Great Britain. To remove this legislation would spell an end to these significant gains. Such a move could also cause disruption at the UK border by preventing the smooth flow of passengers, as those coming in from the EU and non-EU countries would be treated differently. Let me also remind hon. Members that the introduction of duty-free and the extension of personal allowances are estimated to cost the Exchequer £890 million over five years. That money needs to be found from somewhere. I am sure hon. Members will agree that it is only correct that the savings generated from the withdrawal of both the VAT RES and airside tax-free shopping should be used to support a greater number of consumers and airports across Great Britain.
The hon. Members for Kirkcaldy and Cowdenbeath (Neale Hanvey) and for Ealing North (James Murray) raised the impact of these schemes on airport jobs specifically. The hon. Member for Ealing North also raised the late enactment of the legislation. I would say to him that he was not in this House when Labour Members wasted precious time during the transition period trying to frustrate and stop Brexit. Had they not done that, perhaps we would have been able to enact this sooner. I emphasise that the main impact on these businesses is the large drop in passenger numbers due to the pandemic—not to these schemes—which is why we have supported the aviation industry in the following ways. The airport and ground operation support scheme, announced on 24 November, will provide support for eligible businesses up to the equivalent of their business rate liabilities in the 2021 financial year. This is subject to certain conditions and a cap for claimants of £8 million. This is intended to help to reduce cash burn and put on lock shareholder and lender support. While this applies only to airports in England, it constitutes new spend for the Department for Transport, so Barnett consequentials will apply as standard. The Government also recognise the challenges the aviation sector is facing as it recovers from the impacts of covid-19. We have supported the sector throughout the pandemic and continue to do so.
The hon. Member for Edinburgh West (Christine Jardine) was right to ask about the potential impacts of this measure. HMRC research shows that in 2019, fewer than one in 10 non-EU visitors to the UK used the VAT RES. That is 1.2 million out of 60 million visitors. However, the claims in the Centre for Economics and Business Research report, where her figure of 138,000 jobs comes from, are based on the implausible assumption that the end of the scheme will cut non-EU visitor numbers by 4.96 million. That is simply not credible; it is four times as many people as currently use the scheme. Even the report’s more conservative analysis is underpinned by an assumption that non-EU visitors will reduce by 7.3% or 1.17 million, which is almost the total number of current users of the VAT RES scheme. It is unrealistic to assume that all current VAT RES users will cease to visit the UK.
I hope that I have been able to answer hon. Members’ many questions. I am delighted that we can use our new freedoms outside the EU as my hon. Friend the Member for Redcar (Jacob Young) comprehensively set out—that is, to achieve gains for local economies and passengers. As I mentioned, there is a significant cost to the Exchequer. However, this has been weighed against the revenue from the other changes that we are making. Together, these measures support our airports, benefit consumers and protect the taxpayer. For those reasons, I ask the House to reject the motion and support the Government’s approach.
Publication of “The Economics of Biodiversity: The Dasgupta Review”
Kemi Badenoch Excerpts(3 years, 3 months ago)
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The Exchequer Secretary to the Treasury (Kemi Badenoch)
At spring statement 2019, the Government commissioned an independent, global review on the economics of biodiversity. Today, “The Economics of Biodiversity: The Dasgupta Review” has been published.
At the start of an important year for global action to tackle biodiversity loss and climate change, the Government thanks Professor Sir Partha Dasgupta for his independent review and welcomes its publication as a strong example of UK thought leadership on an important environmental issue with clear—but often overlooked—economic consequences. The Government will examine the review’s findings and respond formally in due course.
The review is published on https://www.gov.uk/government/publications/final-report-the-economics-of-biodiversity-the-dasgupta-review, and a copy will be placed in the Libraries of both Houses.
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Oral Answers to Questions
Kemi Badenoch Excerpts(3 years, 3 months ago)
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Gavin Newlands (Paisley and Renfrewshire North) (SNP)
The Exchequer Secretary to the Treasury (Kemi Badenoch)
During the consultation on duty free and tax-free goods carried by passengers in 2020, the Government engaged extensively with various stakeholders and carefully considered 73 consultation responses. I have continued to meet stakeholders, including retail and aviation representatives, following our announcement.
Gavin Newlands [V]
Given the deep trouble within retail and aviation, with Debenhams one of many chains disappearing from high streets with the loss of tens of thousands of jobs and, as the Minister will be aware with Stansted and its importance for employment in her constituency, aviation by and large grounded, does she not accept it was a mistake to scrap the VAT retail export scheme and the extra-statutory concessions, both of which brought much needed revenue to the retail sector at airports, which is now lost from the economy, possibly for good?
Kemi Badenoch
We do not accept that. The independent Office for Budget Responsibility set out its assessment of the fiscal impact of the withdrawal of the VAT RES scheme, factoring in a higher than usual elasticity to account for spending on luxury goods. Its estimate is that this will result in a significant Exchequer saving of about £400 million per year. On airports, we recognise the challenges the aviation sector is facing as it recovers from the impacts of covid-19. We have supported the sector throughout the pandemic and continue to do so. This includes the recently announced airport and ground operator support scheme, which will provide eligible firms with support of up to £8 million per claimant.
Henry Smith (Crawley) (Con)
The Exchequer Secretary to the Treasury (Kemi Badenoch)
The consultation on aviation tax reform has been delayed in recognition of the unprecedented circumstances that the aviation industry is currently facing. However, I will update hon. Members on the timing of the consultation in due course.
Henry Smith [V]
The United Kingdom charges the highest air passenger duty of any country in the developed world. Now that we have left the EU, domestic air passenger duty is something that we can alter. As we seek to recover from the covid-19 pandemic and take the advantages of a global Britain, can we have an early review of this tax, which is a pressure on our industry?
Kemi Badenoch
The Government recognise the important role that the aviation sector plays in the UK economy. The sector can draw on the wide range of support measures available, including the recently announced airport and ground operations support scheme, which will provide eligible firms with support of up to £8 million per claimant. However, I reassure my hon. Friend that we remain committed to delivering the consultation, and will look to proceed once the challenging circumstances that the sector is currently facing have eased.
Mr David Jones (Clwyd West) (Con)
The Exchequer Secretary to the Treasury (Kemi Badenoch)
The Government recognise the significant impact of covid-19 on every region and nation of the UK. I can assure hon. Members across the House that levelling up remains a key priority for the Government. That is why the spending review also announced longer-term measures to support every region and nation, including a new £4 billion levelling-up fund to invest in local infrastructure priorities.
Graham Stringer
It is good to hear that the Government are still committed to levelling up, but all the academic studies that have been done have shown that covid has disproportionately affected the regional economies, with Greater Manchester the third most badly affected region in the country. Those regions need more support, but Transport for the North and Northern Powerhouse Rail are being cut; is that not going in exactly the opposite direction?
Kemi Badenoch
I would dispute the hon. Gentleman’s claims. We have taken unprecedented steps to support people and businesses around the country. We have supported 19,100 jobs in his constituency through the coronavirus job retention scheme. Greater Manchester Combined Authority has been allocated £54.2 million from the Getting Building fund for a wide-ranging package of projects. We have also provided over £170 million for the Greater Manchester-Preston city region and Liverpool city region to improve public transport. We have also supported the regeneration of 33 towns in the north-west through the towns fund. There is a lot that is happening on levelling up. If he would like me to write to him to explain everything that we have done in his region, I am happy to do so.
Mrs Maria Miller (Basingstoke) (Con)
The Exchequer Secretary to the Treasury (Kemi Badenoch)
The impact of tax and welfare policy is best analysed at the whole-household level. As the Institute for Fiscal Studies has said, because most people live in households with others and we do not know how incomes are shared, it is very hard to look at effects separately for many men and women. That is why the Government support has been targeted at the most vulnerable. Our distributional analysis published last year shows that the Government’s covid-19 financial support protected the poorest households’ incomes the most as a proportion of their income.
Mrs Miller [V]
The pandemic has been a difficult time for pregnant women in work, and one in four have faced discrimination, including being unlawfully singled out for redundancy—a problem not confined to the pandemic. Will my hon. Friend look again at how other countries tackle this problem and consider adopting Germany’s approach of protecting pregnant women from redundancy, which would also give families much-needed financial stability at what can be a very challenging time?
Kemi Badenoch
We are aware of the difficulties that families are experiencing during the pandemic and we have put many measures in place to look at this, but if my right hon. Friend has examples of specific schemes happening across the world that she would like me to look at, I am happy to do so within my other role as Minister for Equalities.
Craig Tracey (North Warwickshire) (Con)
Matt Vickers (Stockton South) (Con)
The Exchequer Secretary to the Treasury (Kemi Badenoch)
I thank my hon. Friend for his question. He is a doughty champion for his region and he should know that we remain focused on the commitment we made at Budget 2020 to have 750 roles across the economic campus by the end of the Parliament. The Treasury is still considering a range of location options for the new campus. We want to ensure that the chosen location supports our wider levelling up agenda, but we will certainly take his comments and representations into account.
Lilian Greenwood (Nottingham South) (Lab) [V]
Sarah Atherton (Wrexham) (Con)
Kemi Badenoch
The Government understand that this is a very challenging time for the UK hospitality sector, and we are constantly reviewing the package of covid-19 support. In order to ensure that decisions are made to meet these challenges, we will outline plans for 2021-22 business rates relief early this year, but my hon. Friend should let her constituents know that for existing tax liabilities the VAT deferral new payments scheme will allow businesses with deferred VAT to spread their payments over up to 11 equal payments to 31 March 2022 interest-free.
Patricia Gibson (North Ayrshire and Arran) (SNP)
Mark Pawsey (Rugby) (Con) [V]
Kemi Badenoch
My hon. Friend raises a point mentioned by several Members about the difficulties businesses in the hospitality sector and their supply chain have faced during the pandemic. He can tell his constituents that £1.6 billion is being made available for local authorities to support businesses that are ineligible for closed business grants but that may still be impacted by restrictions, and local authorities have discretion to determine how much funding to provide to businesses and the flexibility to target local businesses that are important to their local economies, which could include businesses in the supply chains for retail, hospitality and leisure.
Mr Virendra Sharma (Ealing, Southall) (Lab) [V]
Small Business Support: Covid-19
Kemi Badenoch Excerpts(3 years, 3 months ago)
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The Exchequer Secretary to the Treasury (Kemi Badenoch)
I will just take my mask off—I am afraid that I am still not used to the mask compliance in the House.
I want to start by congratulating the hon. Member for Edinburgh West (Christine Jardine) on securing a debate on this important subject. Coronavirus has deeply affected the lives of millions of people throughout the country, including those whose livelihoods depend on the small and medium-sized businesses that are the backbone of our economy. I would like to assure the hon. Lady, who spoke passionately about what has been happening in our country, that this Government care deeply about the SME sector, and I know that this strength of feeling is shared by Members across the House.
The hon. Lady mentioned her pay for postage campaign, and I listened with interest. The Treasury is always very keen on new ideas on how to support businesses as we want to see them grow, thrive and compete. I understand that she has already been in conversation with the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Sutton and Cheam (Paul Scully), on this issue, and I will leave it to BEIS to respond to her proposals in detail. More broadly, the Government have put in place a broad package of support to help as many small and medium-sized enterprises as possible.
I will now turn to some of the main elements of that support, which, at every stage of this crisis, we have really pushed to every part of the economy, targeting a significant proportion of our £280 billion economic support package. Almost 10 million jobs have been furloughed under the coronavirus job retention scheme. This has given business owners the certainty that they can pay their workers’ wages. The self-employment income support scheme has so far provided grants to almost 3 million people, including small business owners, while more than 1.4 million small and medium-sized businesses have received over £68 billion of loans. In addition, we have provided tens of millions of pounds of cash grants to businesses as well as tax cuts and deferrals.
Jim Shannon (Strangford) (DUP)
I thank the Minister for giving way and the hon. Member for Edinburgh West (Christine Jardine) for her contribution. I think that this is the first full virtual Adjournment debate that I can recall being a participant in.
I spoke to the Minister beforehand on this matter, but first I would like to put on record my thanks to her and to the Government for all that they have done—we could not have survived this without all their help. May I just make a small plea for egg producers? They continue to sell, but have lost their market in hospitality, and need support. Others such as artisan food producers, whose product is of such a high standard, no longer have footfall and their small business is on the brink of collapse without substantial help to pay off their equipment that cannot be used. What help can we give those people?
Kemi Badenoch
I thank the hon. Gentleman for his intervention. He asks a really good question. The Government recognise that businesses within the hospitality supply chain have been disrupted by the recent necessary restrictions to hospitality businesses since the start of the pandemic. The Government have acted to deliver support to those businesses and ease cash flow problems for them through business support schemes, but businesses that have not been eligible for grants may be able to benefit from the additional restrictions grants. We recently increased the funding available under that scheme to £1.6 billion across England, and I know that similar schemes will be happening across the various devolved Administrations. It is up to each local authority to determine eligibility for the scheme, based on its assessment of local economic need. However, we encourage local authorities to support businesses that have been impacted by covid-19 restrictions, but which are ineligible for those other grant schemes. So there will be support—that is the point that I want to make to the hon. Gentleman.
On the support that we have provided to small business owners, I believe that I said that we had provided 1.4 million SMEs with more than £68 billion of loans. We have also included a temporary reduction in the VAT rate and the business rates holiday, both of which will run until 31 March. Financially distressed businesses and individuals have also been able to benefit from more flexible deadlines through the Time to Pay scheme. Furthermore, we are providing extra help through our welfare system for those who need it most, as well as other support such as payments for those asked to self-isolate. Quite simply, this is a support package that is unprecedented in its scale, and we know that it is working. In fact, the International Monetary Fund describes our economic plan as one of the best examples of co-ordinated action globally and successful in holding down unemployment and business failures.
The hon. Member for Edinburgh West made a very good point about how private sector businesses have been able to adapt and we should be able to follow suit, and we are doing that. We have not stopped there with the things that we have done. We have faced the evolving nature of the crisis. We have redoubled our efforts to protect businesses, jobs and incomes in response to the huge challenge presented by the virus. As the situation changes, we assess and we adapt. As a result, we have extended the CJRS until April. We are supporting self-employed people with a fourth income grant, which, combined with the up to £14,070 of individual support from the first and second grants, places our scheme among the most generous for self-employed workers in the world.
Furthermore, last week we issued £4.6 billion of additional support that will protect jobs and benefit 600,000 businesses around the UK. Under this change, business premises in England that are required to close, including those in the retail, hospitality and leisure sectors, can now claim a one-off grant of up to £9,000, and that is on top of existing support of up to £3,000 a month. We have also made available £500 million in discretionary funding for local authorities in England to support local businesses in their areas—money that is in addition to the £1.1 billion we had earlier provided on this front. As I said to the hon. Member for Strangford (Jim Shannon), this extraordinary package of economic help extends to every region and nation of the United Kingdom. As hon. Members will recall, in December we further increased our up-front guarantee of funding for the devolved Administrations this year from £14 billion to over £16 billion. At every stage of this crisis, we have strived to help as many people and businesses as we can, and as rapidly as possible.
We acknowledge that we have not been able to support everyone in the way that they would want. However, individuals who find that they are ineligible for one support scheme may still be able to claim from one of the many other sources I mentioned earlier.
The Government are immensely grateful for the contribution of small business owners and their workers in every part of the UK throughout the crisis. As I hope I have illustrated, the Government have sought to protect and support this vital sector at every turn, and we will continue with this approach until the battle against coronavirus is won.
Question put and agreed to.
Financial Reward for Government Workers and Key Workers
Kemi Badenoch Excerpts(3 years, 4 months ago)
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The Exchequer Secretary to the Treasury (Kemi Badenoch)
Thank you, Mr Stringer. It is a tradition on occasions such as this to congratulate the hon. Member for Gower (Tonia Antoniazzi) on securing a debate on the issue of the day. Today, however, we should also congratulate the thousands of people who secured the debate by taking the time to express their support for key workers. On hundreds of occasions, Government Ministers have, in public and in private, expressed their gratitude and respect for what our millions of key workers have done, and I would like to do so again.
I would also like to express my condolences to the hon. Member for Bootle (Peter Dowd) and his family on the death of his daughter. As a mother of three, I cannot even begin to imagine such as loss. We are divided by politics but united in our passion for public service, and I pay tribute both to him and to her for all her service.
We tend to think of key workers as nurses, teachers and police officers, whose efforts, as ever, have been invaluable. In the context of the pandemic, however, our understanding of who is key has rightly stretched far more widely, which is pertinent for the subject of the debate. Understanding who is key extends to local government, national Government, transport, utilities and communications. Importantly, many of the people on whom we have relied are in the public sector. The right hon. Member for Hayes and Harlington (John McDonnell) said they are the people who kept the country going, but it is not just the public sector. Food retail workers, train conductors, farmers and lorry drivers—every one of them is a crucial link in the chain and deserves our thanks.
The substance of today’s debate is asking why we choose restraint when it comes to the way in which some of those in the public sector are financially rewarded. Hon. Members will know the answer. Many, in fact, have referenced fiscal policy since 2010. They should all know—if not, I am happy to remind them—that it was the difficult decisions we made during that period that have enabled us to borrow to fund such a significant package of support. Members have repeatedly said today, “We should borrow.” We are borrowing. A year ago, who would have believed that we would have spent £43 billion on people to be furloughed, £13.7 billion on the self-employed, and over £280 billion in total, in the space of eight months, on an unexpected pandemic?
Kemi Badenoch
No, I am afraid I am not giving way.
I am also happy to remind hon. Members that almost exactly a year ago, after nine years of Conservatives in Government and the very same fiscal policies that hon. Members have criticised today, the public chose to renew their faith and trust in this Government—not just with an increased share of the vote, but with a much increased majority. Since 2010, they had heard these arguments about what we were doing on fiscal policy over and over again, from many colleagues on the Opposition Benches who are not in the House today. We all believe in fair pay, but we disagree on where it is sent. However, I remind hon. Members that the public also want fiscal responsibility.
Good government is about making the right choices. To paraphrase the Chancellor, our health emergency is not yet over, while our economic emergency has only just begun. At a time like this, it is the responsibility—in fact, the duty—of Government to prioritise and target support where it is most needed, in a way that is fair and sustainable, that protects jobs and businesses, and that limits long-term damage to the economy. The hon. Member for Gower referenced many previous responses the Government have given on this topic. She may not like the answer, but the facts have not changed, and I am happy to repeat them here. Fairness has been a guiding principle.
Kemi Badenoch
I am not giving way. I have already said I am not; please stop asking.
As the Chancellor pointed out in his statement on the spending review, in the six months to September, private sector wages fell by nearly 1% compared with last year. Over the same period, public sector wages rose by nearly 4%. Workers in the private sector have lost jobs, been furloughed, and seen their wages cut and their hours reduced, while those in the public sector have not. [Interruption.]
Kemi Badenoch
Thank you, Mr Stringer. For that reason, the Chancellor announced a temporary pause to pay awards for some public sector workers for the year 2021-22. Disappointing though I know this will be, this approach allows us to protect public sector jobs at this time of crisis and ensure fairness between the private and public sectors. Crucially, as I have said, we are targeting our resources at those who need them most. First, taking account of the NHS Pay Review Body’s advice, we are providing a pay rise to over 1 million nurses, doctors and others working in the NHS. Secondly, we are protecting those on lower incomes. The 2.1 million public sector workers who earn below the median wage of £24,000 will be guaranteed a pay rise of at least—and I emphasise “at least”—£250.
In the spending review, we also accepted in full the recommendations of the Low Pay Commission—to increase the national living wage by 2.2% to £8.91 an hour, to extend that rate to those aged 23 and over, and to increase the national minimum wage. According to the commission, those rates will give low-paid workers a real-terms pay rise and protect their standards of living without significant risks to their job prospects. A full-time worker on the national living wage will also see their annual earnings increase by £345 next year. That is a pay rise of over £4,000 compared with 2016, the year in which the policy was first introduced. Taken together, these minimum wage increases will likely benefit around 2 million people and help make real progress towards ending low pay in the UK.
The risk with broader-brush measures, including income tax or national insurance policies—this particular point was not made today, but it is an important one to reiterate—is that it is difficult to define and limit who should benefit. The result could merely be to reward the better paid, at a time when the Government have already been forecast to be borrowing at record peacetime levels.
As a Government, we are committed to keeping taxes low in order that working people, including key workers, are able to keep more of what they earn. In April 2019, the Government increased the personal tax allowance to £12,500, meaning that the personal allowance is up by more than 90% in less than a decade, ensuring that more of the lowest earners do not pay any income tax at all. In April this year, we also increased the national insurance contributions primary threshold and lower profits limit to £9,500—a move that will benefit 31 million people. Add all that together, and changes to income tax and national insurance contributions between 2010-11 and 2020-21 mean that a typical basic rate employee in England, Wales or Northern Ireland is more than £1,600 better off a year.
Kemi Badenoch
I will conclude by saying that this Government and all the people of this country are grateful for everything that our key workers in both the public and the private sector have done and continue to do, but in the choices we make, we must chart a way ahead that is fair and sustainable and that gives us the best chance of a strong economic recovery. That is the thinking behind what we have done and it will remain the thinking behind what we do in the challenging months and years ahead, as I believe it should.
Chris Stephens
On a point of order, Mr Stringer. If I heard the Minister correctly, it was suggested that there were to be no job losses in the public sector, yet a number of us in the debate mentioned that there were 2,000 redundancies in HMRC. Mr Stringer, can you tell me how the record can be corrected—or has the Minister just cancelled the redundancy notices of 2,000 workers in HMRC?
Taxation (Post-transition Period) Bill
Kemi Badenoch ExcerptsWednesday 9th December 2020
(3 years, 5 months ago)
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The Exchequer Secretary to the Treasury (Kemi Badenoch)
It is a privilege to close this debate on behalf of the Government, and I thank Members from all parts of the House for their thoughtful and varied contributions.
At the end of this month, the transition period will end. As my right hon. Friend the Financial Secretary pointed out at the beginning of today’s debate, we have a great responsibility to be ready for this event. The measures contained in the Taxation (Post-transition Period) Bill will play an important part in the preparations.
Let me take this opportunity to thank Opposition Members for their constructive and collegiate approach throughout the passage of this Bill, despite their evident reservations, and in that same spirit I will address some of the points raised in today’s debate.
The Bill is an essential part of our preparations for the end of the transition period. It takes forward important changes to our tax system to support the smooth continuation of business across the UK. It contains six measures. Three relate to the implementation of the Northern Ireland protocol and three implement wider changes to the tax system, which are needed before 1 January. Most importantly, it will ensure that we meet our commitments to Northern Ireland, including on unfettered access and those commitments as set out in the Northern Ireland protocol. Taken together, the measures form an important part of our preparations as we resume our place as a fully sovereign trading nation.
Now that we have further clarity on the outcome of the Joint Committee negotiations, it is vital that the provisions are in place before the end of the transition period to provide that certainty. The Bill’s passage is necessarily rapid, but it will allow for these important changes to be implemented on time. The right hon. Member for Wolverhampton South East (Mr McFadden) asked if we believed it can be done, and my answer is yes, of course. The UK Government will take forward a pragmatic approach that draws upon available flexibilities to implement the protocol without causing undue disruption to lives and livelihoods.
The Government are committed to supporting business. At the centre of the package is the free-to-use trader support service, which will support business when moving goods into Northern Ireland, educating traders on what the protocol means for them and completing customs safety and security declarations on their behalf. That is working. Since the launch of the registration portal in September, more than 18,000 businesses have signed up for support from the trader support service.
Turning to Members’ comments, the hon. Member for North Down (Stephen Farry) requested confirmation that the UK meets its obligations. The powers in the Bill allow us to implement the Northern Ireland protocol in a way that is consistent with our obligations, and I appreciate his broader supportive statements. My hon. Friends the Members for South Ribble (Katherine Fletcher) and for Harrogate and Knaresborough (Andrew Jones), among others, rightly referred to our closing of the VAT loophole in clause 7 and schedule 3. Low-value consignment relief is subject to widespread abuse and contributes to trade distortion. It disadvantages UK high street businesses that are required to charge VAT where overseas businesses are not, either for legitimate reasons or through abuse, and removing the relief will bring overseas sellers on to an equal footing with UK businesses.
My hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) asked why the clause applied just to low-value goods and whether there was an opportunity for it to apply to high-value goods as well. The reason is that the £135 threshold aligns with the threshold for customs duty liability. Imports of goods greater than £135 in value are subject to enhanced customs requirements, which would negate the benefit of moving VAT away from the border. Therefore, imports of goods greater than that amount will remain subject to the current model for goods arriving from non-EU countries, where VAT is collected at the point of importation.
My hon. Friend also asked what revenue we expected from this change. The Office for Budget Responsibility has forecast that these changes will raise over £300 million a year over the next five years, and £1.6 billion over the scorecard period. Approximately two thirds of that will come from improving collection and tackling non-compliance through the new VAT treatment of cross-border goods, and the final third of the revenue will come from the removal of low-value consignment relief, which will end widespread abuse of this relief.
My right hon. Friend the Member for Wokingham (John Redwood) asked whether the ECJ would be the ultimate arbiter for VAT and excise. The ECJ will continue to have a role where EU directives apply in Northern Ireland—for example, where there are disputes on how the EU rules should be interpreted. However, the rules will continue to be policed by HMRC, which will continue to be the tax authority for the whole of the UK. He also mentioned Northern Ireland being subject to two regulatory systems. Northern Ireland is and will remain part of the UK and its VAT system. It is correct that the Northern Ireland protocol means that NI will continue to align with the EU VAT rules in respect of goods, but not services. That is to ensure that trade is not disrupted on the island of Ireland, and to allow us to meet our commitments under the Belfast/Good Friday agreement. But, as I said, HMRC will continue to be the tax authority for the whole of the UK. Businesses will continue to have a single UK VAT number, issued by HMRC, and they will submit only one UK VAT return to account for VAT on all supplies of goods and services.
My hon. Friend the Member for Stone (Sir William Cash) asked about the current negotiations. Just to remind him and reiterate to the House, the UK Government set out on 17 September that Parliament would be asked to support the use of provisions such as clause 45 of the United Kingdom Internal Market Bill and any similar subsequent provisions in a Finance Bill. These clauses were introduced as reasonable steps to create a safety net, so that the Government would always be able to deliver on their commitments to the people of Northern Ireland in the event that a negotiated outcome could not be reached in the Joint Committee. However, as we all now know, following intensive and constructive work over the past weeks by the UK and EU, we now have an agreement in principle on all issues in relation to the protocol on Ireland and Northern Ireland. As we have mutually agreed solutions, the UK can now withdraw clauses 44, 45 and 47 of the UKIM Bill and not introduce any similar provisions in this taxation Bill.
Mr McFadden
On that point about the “notwithstanding” clauses, can the Minister guarantee, given that neither the United Kingdom Internal Market Bill nor this Bill has finished its passage in the House, that the Government will not reintroduce them at any further stage?
Kemi Badenoch
As I have just said, I am not in a position to be talking about what is happening in the future. We have been negotiating in good faith and we have an agreement in principle. I do not believe that those clauses will be coming back, but as the right hon. Gentleman knows very well, the negotiations are still ongoing and we need to wait and see what the outcomes of those negotiations are. It would be quite wrong for me or him to pre-empt anything else that will be taking place, and we must not bind the hands of our negotiators. It is absolutely right that we all speak with one voice in this House.
The hon. Member for Glasgow Central (Alison Thewliss) mentioned GB and NI parcels and asked how consumers would know whether there was a customs charge. The movement of parcels into Northern Ireland is another important part of how the protocol will work in practice for people in Northern Ireland. That is why the UK Government will take forward a pragmatic approach, just as we have elsewhere, that draws on available flexibilities to implement the protocol without causing undue disruption. In terms of schedule 3, she gave the example of the earrings from Slovenia that she had ordered. It is worth stressing that schedule 3 deals with imports to the UK and not exports. It will ensure that UK customers see the amount of VAT that needs to be paid at the point of sale on goods below £135. For goods between Northern Ireland and GB, VAT is already charged on supplies sold by a GB business to an NI customer. When the Northern Ireland protocol comes into effect, Northern Ireland businesses or consumers purchasing goods from VAT-registered businesses will see no significant difference in costs from a VAT perspective.
Let me conclude by saying that tonight, this House has the opportunity to give businesses in Northern Ireland and throughout the rest of the UK certainty about the arrangements that will apply from 1 January next year, to strengthen the precious bonds of union that tie this country together, and to prepare this country for an even brighter future as an independent sovereign trading nation. For all those reasons, I urge all Members to support the Bill.
Question put and agreed to.
Bill accordingly read a Second time; to stand committed to a Committee of the whole House (Order, this day).
Mr Deputy Speaker (Mr Nigel Evans)
I will now suspend the sitting for a brief period in order for both Dispatch Boxes to be sanitised.