Coronavirus: Employment Support

Matt Western Excerpts

Thursday 19th March 2020 Commons Chamber

[John Glen]

The hon. Lady will know that a large number of the grants and loans schemes will be accessible to all sectors, as well as grants from the local authority. Comprehensive advice went out to all hon. Members last night setting out all that information, and there will be further announcements. Sector-specific issues are best addressed through the Department for Environment, Food and Rural Affairs, but I hope the announcements that we have made will give some interim comfort to her constituents at this difficult time.

[Matt Western (Warwick and Leamington) (Lab)]

I am afraid that it is quite evident that the Government have lost support and confidence across the Chamber, and that is echoed by the markets. We have seen a 5% drop in sterling, which will translate into higher food and energy prices for already hard-pressed households. In Warwick and Leamington, we are losing jobs and good businesses. Will the Minister support the comments of the right hon. Members for Chingford and Woodford Green (Sir Iain Duncan Smith) and for Tunbridge Wells (Greg Clark) and introduce some form of universal income support to restore both the supply and demand side?

[Mr Speaker]

We are going to have to speed up.

Economic Update

Matt Western Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

My right hon. Friend the Home Secretary is doing an excellent job, making sure that our borders are secure and that we enforce our laws as required, but in a way that is humane and compatible with all human rights. I am sure that she will do exactly that as we go through the challenging next few months.

[Matt Western (Warwick and Leamington) (Lab)]

The Chancellor will be aware that in certain business sectors, the loss of just one or two people in specialised roles from an organisation can bring down a business. France and Italy are reviving the approach adopted in a global financial crash of supporting workers with a proportion of their wages. Will the Chancellor do the same here?

[Rishi Sunak]

As I have said, we are considering employment support packages and what can be designed and implemented at pace. As for other countries, let me again put it on record that the fiscal interventions we have undertaken are comparable in size with those of any other major developed economy.

Tax Avoidance and Evasion

Matt Western Excerpts

Tuesday 25th February 2020 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

May I start by congratulating the two new Members on their maiden speeches—the hon. Members for Stourbridge (Suzanne Webb) and for West Bromwich East (Nicola Richards)?

The business of tax avoidance, as has been discussed this afternoon, is a serious issue. We show extraordinary world leadership in this, but for all the wrong reasons. Since 2010, a permissive attitude to tax avoidance has been allowed to develop. Let us think back to Chancellor George Osborne and how he advised people on TV just to think, “Well, you know, all you need is clever financial products to help reduce your tax costs”. It really sent out the wrong signal—“Why pay tax at all? Pay the least you possibly can”—as opposed to being responsible and recognising the benefits of tax.

That has been facilitated by the growth of professional enablers. We saw that with the Panama papers, which laid bare the industrial-scale activity in tax havens such as the British overseas territories and Crown dependencies. We think of the Cayman Islands, which is the most secretive territory of all, and the British Virgin Islands, Guernsey and Jersey, which are in the top 20. Just last week, the EU blacklisted the Cayman Islands as the first UK territory on the non-co-operative list due to its tax haven status.

Do not get me wrong—I understand that this is a global problem and it needs international action—but we actually have to go to Davos to talk about these things, and of course the Prime Minister was a no-show there as well. It needs international action, and the UK should be looking to lead on this to restore its reputation. We need leadership, not just simply to be tax lackeys. The Government need to exercise control, not cede control. Let us look at the big accountancy firms. I appreciate the points made by the hon. Member for Thirsk and Malton (Kevin Hollinrake), and I agree with him that on the one hand they are advising the Government, but on the other hand they are advising businesses, and I do not see how we can quite square that particular circle.

[Mr Kevan Jones]

Does my hon. Friend agree that it is long overdue that some of the big accountancy firms should be broken up? There is not really competition among these firms; there are cartels in some situations.

[Matt Western]

My right hon. Friend makes a very good point. With just those four businesses, they absolutely dominate the sector. I do fear that there is a cartel operating, and the sector should be broken up. I think that would be in everyone’s interests. Those firms—or certainly their UK arms—account, according to an HMRC report, for half of all known avoidance schemes. That is the scale of the problem.

This is coming at a massive cost—a loss to UK plc —that is estimated at between £35 billion and £90 billion. There is understandable public anger out there, because that money could be buying significant investments in our communities, whatever people may want to invest it in. That could be 40 new hospitals, two new aircraft carriers or 40 Typhoon jets—all for £35 billion, with some cash to spare. If the £90 billion takes their fancy, we could electrify the Chiltern line serving Warwick and Leamington, and then put money into free school meals for all. Instead, we have an attitude where we increasingly see flat regressive taxes, such as the rise in VAT in 2010 from 17.5% to 20% and the growing expansion of council tax, again hurting hard-pressed households.

[Matt Rodda (Reading East) (Lab)]

My hon. Friend is making some excellent points about the inequities in the system. I feel that is particularly relevant given that only recently did average incomes catch up with those before the great crash of 2008. Does he agree that there has been a total and utter lack of leadership from the Government on this matter?

[Matt Western]

Yes, there has. As I have said, the former Chancellor showed the wrong sort of leadership when he basically said about taxes, “It is almost entirely down to you whether you choose to pay it or not.” Tax really is the responsibility of us all: it is a corporate responsibility and it is a personal responsibility.

Decades ago, when I was working in the corporate world, I remember the introduction of a thing called corporate social responsibility. It was a real buzz term, and we started making donations to charities, volunteering and so on. Of course, that is important and it is wonderful that big business does that, but we are seeing this almost replace tax responsibility. Rather than paying their way and supporting education, infrastructure and healthcare for society, we are seeing organisations perhaps decorate a community centre or go out on litter picks and the like.

Turning to personal tax avoidance, I have mentioned the former Chancellor, and there are schemes such as the film production scheme. Businesses have increasingly paid out dividends, substituting them for actual salary, because of course there is lower tax to be paid on dividends and it is advantageous to employees or directors to get a much larger proportion of their income through dividends. All we need to do is go to some of the ports around Europe, and see that the yachts in the berths there are all flying flags of convenience—and they are all UK flags or those of UK overseas territories and Crown dependencies. There are no German flags, dare I say it, or Dutch flags or French flags. Either we are renowned for our sailing, or a lot of Germans or those of other nationalities like flying the British flag because— I do not know—they sail better or something like that. The same could be said about personal jets and where they are domiciled.

Let me just say that tax is good: it is a contribution to a better society, and we must think about what that society looks like. We should look at the words of Elizabeth Warren. Let me just paraphrase her; I will not do her justice. She basically said, “Why is it that people should simply want to avoid paying tax and then be able to afford to buy a Ferrari? There is no point in owning a Ferrari, if they have not got a good road to drive it on.” People should pay their tax and get a Jaguar Land Rover or Aston Martin—obviously, because they are much better products anyway—and drive on a beautiful smooth road that has been paid for out of their taxes. That is the sort of society we should be looking for, not people avoiding tax, living behind gated communities, owning Lamborghinis, Ferraris or it whatever may be, and having roads full of potholes.

The Government need to turn up on this issue: they need to go Davos and places like that, and make the case for why international intervention and regulation need to be introduced. I agree with what the hon. Member for Amber Valley (Nigel Mills) said earlier about full disclosure. We need to see that across the entire business sector, whether for small businesses or large businesses. When we talk about consumers being given an informed choice, I think the consumer should know whether Caffè Nero is not paying any tax at all, or whether Costa or one of the others is paying tax, and they can then make an informed decision. They can choose, saying, “Well, maybe I want to buy my coffee from that place”, or whatever the product or service may be.

I want to close on the issue of the tech titans. I say this to them: Amazon, you have your warehouses, and your warehouses need security. They need protection from fire; who is going to show up? Warwickshire fire and rescue service has had significant cuts, and it needs the money out of taxation to pay and provide for the fire and rescue services.

[Nick Smith (Blaenau Gwent) (Lab)]

It is estimated that five of the big tech companies paid an effective UK tax rate of just 2.9% in 2018. They avoided paying £1.3 billion in taxes. Does my hon. Friend agree that the Government need to get that money back?

[Matt Western]

Indeed they do, and I was just about to say in respect of companies such as Facebook that services impact on mental health. We need those services; they need to be paid for for our young people. I say to Apple and Google: your product upgrade and replacement cycles lead to huge waste in recycling. You have to pay your taxes; it is a responsibility that we deserve from you, to pay for our society.

Oral Answers to Questions

Matt Western Excerpts

Tuesday 11th February 2020 Commons Chamber

The Chancellor of the Exchequer was asked—

[Matt Western (Warwick and Leamington) (Lab)]

1. What assessment the Government have made of the potential effect on the (a) manufacturing sector and (b) economy of the UK not having access to the EU single market.

[The Chancellor of the Exchequer (Sajid Javid)]

We want a relationship with the EU that is based on friendly co-operation between sovereign equals and is centred on free trade. The economy has grown every year since 2010. Employment is at a record high and wage growth has outpaced inflation for 17 consecutive months. The upcoming Budget will set out ambitious plans to level up across the UK and usher in a decade of renewal.

[Matt Western]

The Chancellor will be aware that the CBI has spoken out and claimed that business is not ready for Brexit, which has already cost businesses billions of pounds in planning. But the advice is unclear. I spoke to the Federation of Small Businesses and to several small businesses last night, and they are extremely concerned that neither the infrastructure nor the advice is in place.

[Sajid Javid]

I can assure the hon. Gentleman that we are working very closely with individual businesses and their representative groups. The one thing they have certainly welcomed in the past few weeks is that we have ended the uncertainty around Brexit by actually leaving the European Union, as we said we would. We will be working very closely with business as we forge that new free trade agreement, which I know we will do.

--- Later in debate ---

[Sajid Javid]

My hon. Friend is right to raise this matter. The Government have already put in place the gigabit broadband voucher scheme and the rural gigabit connectivity scheme, which is available to small and medium-sized enterprises and gives support of up to £3,500 per company. She will also be pleased to know that the Government have committed £5 billion to invest in new infrastructure to ensure that every part of our country has the best possible broadband.

[Matt Western (Warwick and Leamington) (Lab)]

T8. Will the Chancellor ensure, in the Budget in March, that the automotive manufacturing sector gets the support it requires? He will know that there was a decline of 14% in our manufacturing production last year, which represents a big hit to the Treasury. Will he put in place the support to ensure a transition from fossil fuels, so that we can still produce vehicles such as diesel-powered units in good numbers while supporting the switch to electric vehicles?

[Mr Simon Clarke]

I thank the hon. Gentleman for his question. Tomorrow I am attending a roundtable at 11 Downing Street with representatives of the advanced manufacturing industry, and we are determined to take their views into account as we make this transition. We are supporting the industry through initiatives such as the Advanced Propulsion Centre and the Faraday battery challenge, and we are determined to ensure that the sector evolves in a way that boosts our growth prospects as we decarbonise.

Economy and Jobs

Matt Western Excerpts

Monday 20th January 2020 Commons Chamber

[John McDonnell]

Again, Labour undertook work to look at exactly that. We looked at the regional impacts and at how tax breaks are distributed unequally around the country. There is an important and exciting piece of work to be done, and some of those issues were considered by the Kerslake review in 2017. There will be some element of consensus on how we can direct future investment, and we can build upon that in the long term, because if anything comes out of the lessons of the past 10 years, it is that we need a longer schedule than just a five-year parliamentary process for capital investment of that scale.

Returning to fiscal rules, the Government have now advocated a fiscal rule that largely follows Labour’s advice, but it is this Government’s third or fourth fiscal rule—I have lost count. Some of them have been adhered to—no, actually, looking back at it, none of them have actually been adhered to, which largely defeats the object of having fiscal rules. It will be interesting to see how long this one lasts and how far it is achieved. The problem is that, even if they use all the headroom that their new fiscal rule allows, they are only paying lip service to the need to invest at scale and for the long term. If we are to tackle the issues of poverty, regional inequality and, yes, climate change, the amount of new investment mooted so far by the Chancellor is nowhere near the scale needed to address the dilapidation of our infrastructure outside London, and it is certainly not at the scale needed if we are to tackle climate change. From what we have heard so far, the maximum amount of increased investment talked about by the Chancellor is less than today’s estimate of the cost of High Speed 2.

The Chancellor’s idea in his Financial Times interview, of splitting the Treasury and sending some of its officials to work in satellite offices outside London, is a pale imitation of Labour’s plans not just for regional offices but to move whole sections of the Treasury to the north, to move the Bank of England to Birmingham and, similarly, to locate a national investment bank outside London. If the Government are going to plagiarise Labour’s policies, they at least have a duty to do so competently.

What all these things have in common is a failure to tackle the root causes of the problems to which the Government pay lip service: the grotesque levels of inequality in income and wealth in our society; the concentration of wealth and power in the hands of a few; the ownership of the economy by an elite, with the vast majority of people locked out of decision making and having no say on how the economy works or on who it works for; and an economy increasingly serving the few, not the many. There is no sign that the Government recognise the root causes of the crisis we face, whether social or environmental—at least, there is no sign of them doing anything about it.

Of course, all these investment proposals will count for very little if the Government fail to secure a post-Brexit trade deal with our EU partners that protects jobs. On that score, it is hardly surprising that businesses’ fears rose when the Chancellor, in his weekend interview, cavalierly threatened to throw our manufacturing sector under a bus, as he rejected the calls from business for alignment with the EU to ensure his own Government’s long-standing promise of frictionless trade. He casually said:

“There will be an impact on business one way or the other, some will benefit, some won’t.”

Let us be clear that if frictionless trade is not achieved in a future trade deal or, worse, if there is no deal, the bulk of our manufacturing sector, including cars, aerospace, pharmaceuticals and food and drink, will be in the “some won’t” category. One recent estimate identified that, in the past decade, we have already lost 600,000 manufacturing jobs.

Today, business leaders and unions have combined to warn the Chancellor that his promise to split from the EU will cost billions and damage UK manufacturing. Bizarrely, he blames the manufacturing companies for not having already prepared for any regulatory divergence coming out of any future trade deal, when no one knows what the deal or the rules will be. There is an element of Samuel Beckett or Kafka here, I am not sure which.

We hear that the Chancellor is the only Minister to be secure in his job ahead of the possible “night of the long knives” reshuffle in February.

[Matt Western (Warwick and Leamington) (Lab)]

Following the Chancellor’s interview in the Financial Times, the response from the likes of the CBI, the Engineering Employers Federation, the Society of Motor Manufacturers and Traders, and the Food and Drink Federation is extremely alarming. They have said in unison just how concerned they are about the Government’s ambivalence, as my right hon. Friend says, about the real cost both to jobs and to industry.

The Economy

Matt Western Excerpts

Thursday 24th October 2019 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

Having sat through much of the debate over the past five days, I am reminded of Shakespeare’s “Much Ado About Nothing”. This debate seems to have been entirely fatuous, other than to highlight the failings of this Government, and the previous coalition Government, of which I am afraid there are many. Even Her Majesty looked understandably disinterested as she delivered her Gracious Speech—a lot of pomp and much circumspect. It all seemed farcical, and so it proved—the debate was pulled after three days to make way for a Brexit debate. A suspension after a suspension: anyone would think the Government were playing for time and actively seeking to undermine our parliamentary democracy.

The Gracious Speech was full of warm words, but they bear little correlation to the reality on our streets, especially in Warwick and Leamington. When I talk to people on the streets or in my surgeries, or visit businesses and schools, those people—the teachers, the business leaders, the nurses—tell me that they are frustrated and angered by this Government. They see a Government who do not truly care about homelessness and rough sleeping, and who have no vision for the future. The Government’s ambition is to eliminate rough sleeping by 2027—that is eight years away—and the good people of Warwick and Leamington find that unacceptable. We want that issue to be addressed urgently.

People see an economy stacked against them. They are working longer hours, and driven to zero-hours or flexible contracts. People such as those working at Asda, down the road from where I live, have to accept what they view as a Martini contract: they have to work anytime, anyplace, anywhere. It is totally unacceptable. Many women work in retail, so they are the ones who are affected. They are the ones who are so hard hit.

I therefore take issue with people I hear talk about a great jobs miracle. It is not a miracle; it is an utter jobs mirage and we have to understand what is really behind it. A few decades ago, people had 40-hour-a-week contracts. Now, perhaps two people may fill that role, but they are on zero hours and are deemed to be employed. The reality, of course, is quite different. It is the uncertainty of those contracts, the underemployment in our society and the penalising process of universal credit that hurts so much and has led to a rise in homelessness and child poverty.

In Warwick and Leamington, 16% of all children live in poverty, while 10% of all households live in energy poverty. In 2018, 2,500 people had three-day emergency food supplies handed to them. Our homelessness is a scandal. The big six housebuilders are making billions, despite the supposed viability issues of delivering housing. They are building the wrong homes in the wrong places. We need social rent homes, and I will campaign hard to deliver the ones that we need. They should also be zero carbon. What a great opportunity. That is the great vision that Labour has: to deliver real, good-quality housing under its green new deal. That is what we will be pushing for when in government.

Businesses are not impressed by what the Government are doing. They are frustrated and angered. They want greater ambition on the transition to a cleaner future. They want investment in infrastructure. They want to see the vision. They want to know that they should be investing now. But they are not prepared to, because they see what France does. France has invested so much more in electric vehicle charging points—four times as much as the UK—so, of course, more investment and more development goes into France from our automotive sector. Education has been frustrated, and likewise healthcare, by a lack of investment. These are the things that the economy should be delivering. That is what I will be pushing for.

No-deal Brexit: Short Positions against the Pound

Matt Western Excerpts

Monday 30th September 2019 Commons Chamber

[Mr Clarke]

The hon. Gentleman needs to recognise that our country is absolutely determined to leave the European Union on 31 October. Rather than trying to prevent that, and, in so doing, making no deal more likely, he should get behind the Government’s efforts to secure a good deal.

[Matt Western (Warwick and Leamington) (Lab)]

Let me give the figures some context. Correct me if I am wrong, but I believe that back in 2016 Odey fund management made £300 million on shorting sterling. By contrast, the UK automotive industry has spent £350 million ensuring that it is protected against a no-deal Brexit. Does the Minister not recognise that we are vulnerable in our manufacturing sector—in our heartland communities—to losing jobs and businesses because of the practices of these short sellers? Lord Macpherson, the former permanent secretary to the Treasury, has tweeted:

“Mr Hammond is right to question the political connections of some of the hedge funds with a financial interest in no deal. They are shorting the £ and the country, with the British people the main loser”.

What does the Minister say?

[Mr Clarke]

I point to the wise words of the Opposition Deputy Chief Whip in the House of Lords last November, who said that short selling

“is not necessarily the evil practice that the popular press held it to be…It had a role.”—[Official Report, House of Lords, 28 November 2018; Vol. 794, c. 706.]

HS2: Buckinghamshire

Matt Western Excerpts

Monday 29th April 2019 Commons Chamber

[Ms Ghani]

If my hon. Friend was indeed enraged, all I can say is it will have been a very good meeting. I am sure HS2 will be listening to our exchanges. I know that a meeting took place on 1 April. I had hoped it would be productive. If it has not been, I will hold a meeting with her and work out what we can do to take this matter forward. She has some challenging cases to deal with and has made really good representations to me and HS2 Ltd. It is because this project will have an impact on the environment that we are doing everything we can to mitigate it, from planting over 7 million trees to ensuring no net loss in biodiversity, which are all things she is passionate about.

[Matt Western (Warwick and Leamington) (Lab)]

I thank the right hon. Member for Chesham and Amersham (Dame Cheryl Gillan) for securing this urgent question. I have had a conversation with her and the right hon. and learned Member for Beaconsfield (Mr Grieve) about this project. We have seen significant cost overruns with Crossrail, so there isn’t one budget, is there? There is a significant over-budget. If the Chief Secretary to the Treasury, who I would say is the finance director of the project, says we should probably cancel it, perhaps we should be listening—unless, of course, that is about her ambitions in the forthcoming Conservative party leadership contest. Tomorrow, I have a meeting with the managing director of Chiltern Railways, who suggests we should consider increasing capacity on existing track and additional track on the existing line. Would that not be a better use of the budget?

[Ms Ghani]

I am not sure who in the Treasury the hon. Gentleman was referring to, but I remind him that HS2 is a key priority of the Government and a manifesto commitment of the Conservative party, as it is of the Labour party. We are in peculiar political times, and I do not want to see one of the most important infrastructure projects of our lifetime being kicked around like a football. It is a long-term project, and it is important that we stay committed to it and ensure it remains on budget and on track. He mentioned a meeting with Chiltern Railways. I have just been reminded by my hon. Friend the Rail Minister that over £48 billion will be spent in control period 6.

Spring Statement

Matt Western Excerpts

Wednesday 13th March 2019 Commons Chamber

[Mr Hammond]

No, that is not correct. The £3 billion is part of the £44 billion total package for housing that we have announced. I announced an overall framework, and in a series of announcements will say how we will spend that money.

[Matt Western (Warwick and Leamington) (Lab)]

The Chancellor’s statement ignores the position of Shelter, which claims that we need to build 155,000 social homes a year. Why the lack of ambition?

Transport for Towns

Matt Western Excerpts

Tuesday 19th February 2019 Westminster Hall

[Caroline Flint]

I absolutely agree. I actually speak from personal experience, second hand though it may be, because my husband, Phil, lived in Stockton and travelled to Hartlepool every day to go to secondary school. In many respects, the service was probably better then than today for many of our schoolkids.

[Matt Western (Warwick and Leamington) (Lab)]

My right hon. Friend is making an important speech. In accessing further education, schools, and also employment to help to pay for that education, young people in villages such as Barford and Bishop’s Tachbrook in my constituency are being alienated.

[Caroline Flint]

That is an important point about young people. I will talk later about the fatalities in my constituency of young drivers, who are often forced into getting a car as it is the only means of getting around. These young people are not drinking or anything else but are just inexperienced drivers on our country and rural roads. That is a big problem.