Social Housing Standards

Navendu Mishra Excerpts

Wednesday 16th November 2022 Commons Chamber

[Michael Gove]

The hon. Lady has made an important point, which gives me the opportunity to say two things. First, we do need professionalism within the sector overall, and that is one of the matters that will be considered in the Social Housing (Regulation) Bill. Secondly, as the hon. Lady rightly said and as so many other Members have pointed out, this individual tragedy is reflective of a broader set of problems in the housing sector. Those problems, as we have discussed, have been exacerbated by the nature of the housing stock that we have in this country—its age and its condition—but that is no excuse for not taking action.

I think—and I hope this reflects the mood of the House—that we have reached a point at which we all recognise that, thanks to this tragedy and thanks to the campaigning of Members on both sides of the House, as well as the campaigning of individuals outside such as Kwajo Tweneboa, Daniel Hewitt and Vicky Spratt, we now know that we need to tackle these questions with a greater degree of urgency than ever before.

[Navendu Mishra (Stockport) (Lab)]

I send my deepest condolences to Awaab’s family. I also pay tribute to my hon. Friend the Member for Rochdale (Tony Lloyd), who has been campaigning on the issue of decent homes for many years and is a powerful voice for his constituents.

I want to raise an issue raised earlier by my right hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott). Awaab’s family believe that racism played a significant part in the way they were treated and the way their complaint was handled. May I ask the Secretary of State whether he is taking that point seriously, and whether he will commit himself to an investigation?

[Michael Gove]

As I mentioned briefly earlier, it does seem to me on the basis of the facts as they stand—and this has certainly been articulated very effectively by Awaab’s family’s solicitor—that the family were on the receiving end of prejudice. Whether it was unwitting or not, I cannot judge. Linked to that, as the right hon. Member for Hackney North and Stoke Newington mentioned, there is a significant problem with people from black and minority ethnic backgrounds not being treated, as they should be, with respect, and we do need to take that issue seriously. I am reassured that those who lead the social housing sector completely understand the need for the highest professional standards in this area.

Private Rented Sector White Paper

Navendu Mishra Excerpts

Thursday 3rd November 2022 Commons Chamber

[Navendu Mishra (Stockport) (Lab)]

Thank you for calling me so early in the debate, Madam Deputy Speaker. This is a very important issue in my constituency and across England. More than 7,000 households—households, not people—are on the waiting list at Stockport Homes, which is one of the main providers of housing in my constituency, and 11 million people rent privately in England. That underlines the importance of this debate, and I am grateful to my hon. and good Friend the Member for Brighton, Kemptown (Lloyd Russell-Moyle) for securing it.

We heard about reforms the Government were going to bring in some three years ago; unfortunately, in the three long, hard years since, we have seen very little progress. I will describe two separate cases that have recently come into my inbox. The first involves a family of three—a single mother with two teenage children, one of whom has severe autism. They were served with a section 21 notice of no-fault eviction. The mother had always paid her rent and kept the house spotless, and the family had lived in the property for 12 years. When they were served the section 21 notice, the landlord said they wanted to sell, but my constituent suspects that the landlord was seeking a higher rent in the market.

Sadly, the family were evicted. They were rehoused in a hotel outside the borough of Stockport, which caused massive problems for the family, including the 16-year-old son with a medical condition. The three of them were accommodated in a small hotel room, and Stockport Homes has had to extend the six-week period for hotel costs because the son is unable to cope with the trauma of moving into temporary accommodation before being rehomed. Stockport Homes is also paying the storage costs, which the family will have to reimburse, increasing the pressure on the family. The mother is flexible about where the family can be rehoused; she is just desperate for a permanent home. There has been a mental impact on the entire family, but particularly on the son who has autism. It is a serious case and I wanted to highlight it in the Chamber.

The other case is also quite tragic. I was contacted by a recently bereaved constituent who was on a protected tenancy. Her private landlord’s agent had asked for her rent to be increased from £350 a month to £800 a month. She had been living in that one-bedroom flat with her late partner for 44 years on a protected tenancy, with very little upkeep and maintenance of the property undertaken. The valuation office was approached and the formal rent valuation process was gone through. The rent for the property was determined to be £450 a month, not £800 a month as the agent was demanding. This tenant was fortunate to have protected tenancy status at a time when she was most vulnerable, after the loss of her partner of 44 years. Sadly, most people are not so fortunate. Those are two serious cases, but I could go on. My inbox is filled with similar cases of people who are desperate to get housing.

I am grateful to several organisations, but particularly Shelter, which provided an important briefing for the debate. Research from Shelter conducted in April 2022—three years after the Government first committed to scrapping section 21 no-fault evictions—shows us that every seven minutes a private renter is served with a section 21 notice and that more than 200,000 renters have been evicted in the three years since the Government first said they would scrap no-fault evictions. These figures are staggering and very worrying. Other colleagues have mentioned Generation Rent and other organisations, including Shelter, which conduct important research and act as a lifeline for many people in that desperate situation.

While we are debating housing, I want to mention Mrs Sheila Bailey, a local councillor in my constituency who very sadly passed away recently, and highlight early-day motion 428, which I tabled in this House to pay tribute to her work. She was a champion for housing in particular, and played an important role in creating Viaduct Housing Partnership, a local housebuilder, when she was cabinet member for that portfolio.

I know there are several other speakers, so I will not take much more time. I want to mention the inadequacy of local housing allowance. I have raised this matter on several occasions via both oral and written questions. According to the Office for National Statistics, the median rent for a one-bedroom flat in the private rented sector in Stockport borough is £600, yet, by the Government’s own admission in answers to written parliamentary questions I have tabled, in the two broad rental market areas that fall under that local authority, 71% and 52% of households respectively have a gap between local housing allowance rates and their rent. That needs to be looked at.

I could say a lot more; a vast amount of casework comes through my office via letters, emails and telephone calls from people desperate to find housing in my borough. Stockport, I would say, is the best place to live out of the 10 boroughs in Greater Manchester—in fact, I would say it is the best place to live in England—but that means that the housing market is very competitive. People are facing hardship as it is because of the failed economic policies of this Government, but in addition, in Stockport, we have a problem where housing is in a dire state. We must ensure that people are not left behind.

Lastly, I must mention Stockport Tenants Union, which was set up just over two years ago and provides support to people across the borough; Jonathan Billings, who is a long-standing campaigner against homelessness and has set up a charity named EGG, or Engage Grow Go; and the Wellspring in Stockport, which has been serving the local community for decades. My hon. Friend the shadow Minister will speak later on, but I want to congratulate my hon. Friend the Member for Liverpool, Wavertree (Paula Barker), who has just been appointed to the role of shadow Minister for homelessness and rough sleeping.

The Opposition are taking this issue very seriously. We cannot wait three more years for action, or even three more months—we must ensure that it is delivered quickly.

Levelling-up Agenda in the North

Navendu Mishra Excerpts

Monday 13th September 2021 Commons Chamber

[Ian Lavery]

I thank my hon. Friend for that intervention and I will be coming on to the Marmot report later in my contribution, because it is extremely important.

Life expectancy is unbelievably different in various parts of this country and levelling up should be about tackling the likes of life expectancy. Between 2014-15 and 2019-20, the north-east saw child poverty increase from 25% to 37%, with figures in my constituency mirroring the regional average. The Minister might wish to venture an answer as to why children have fewer opportunities and child poverty is on the rise under this Conservative Government. Almost two thirds of the children in my constituency living in poverty come from a working family. Never mind the rhetoric about people not working and about how the only way to get out of poverty is by working—almost two thirds of the kids in my constituency living in poverty come from working families. But the Government are still pushing ahead with their cuts to universal credit that will take money out of these families’ pockets, and more than £7 million a year out of the local economy. They are pursuing a double whammy that will see low-paid families in work taxed to fix childcare, rather than the millionaires and the Tory donors. The Minister has to tell us: does he think that this is fair? How does he think it is fair?

I now come to Michael Marmot’s report, a decade after the 2010 publication. It lays bare the neglect our communities have faced over a decade. As my hon. Friend the Member for Jarrow (Kate Osborne) mentioned, life expectancy has stalled, something not seen since the early 1900s, and it remains lowest in the north and the midlands. The regions with industrial pasts and entrenched poverty have become hotspots for low healthy life expectancy. As the Marmot report put it, people in more deprived areas spend

“more of their shorter lives in ill health”

than those in less deprived areas. I am sure the Minister will wish to address the fact that people in constituencies that have been purposely held back have lower life expectancies and lower healthy life expectancies than those in other parts of the country.

It is perhaps a sign of the Government’s cruelty that they are now looking into feedback on plans to align prescription charge exemptions to pensionable age. What a retrograde step that would be. In real terms, they are looking to push the charge of being poorly after a lifetime of hard work on to people who will be ill for longer and live shorter lives.

Given a decade of Tory underfunding in the guise of austerity, it is no surprise that the covid impact has been felt more greatly in poorer communities. Marmot’s most recent report, which focused on Greater Manchester, showed a covid mortality rate 25% higher than England’s average.

NHS waiting lists have exploded over the past decade and have now grown to a record 5.45 million. The Institute for Fiscal Studies has shown that the backlog could reach 14 million if urgent action is not taken soon. At the same time, A&E waiting times have grown and the number of people not seen within the four-hour target has been increasing for more than a decade. People in our communities are in poorer health, stuck on waiting lists and being charged for medication. Perhaps the Minister would like to explain to the people in our constituencies why that is the case.

Depression is much more prevalent in northern constituencies. The 10 seats with the highest levels of the disease are mostly in the north-west or the wider north. The 10 seats with the lowest levels of depression are all in London. Deprivation plays a huge part in depression and mental health more generally. Suicide rates for men and women are the highest in Yorkshire and the Humber, while the lowest rates for men are in London. For men living in more deprived communities, the risk of suicide increases, particularly for middle-aged men. How does the Minister plan to use levelling up to tackle these huge issues in our communities?

At one time, having a job was seen as a route out of poverty; sadly, for too many this is not the case. Communities in the north and the midlands have the lowest levels of earnings, higher temporary employment and higher levels of zero-hours contracts, and suffer the scourge of bogus self-employment. All those things have rocketed in the past decade. Minister, how will the Government use levelling up to ban zero-hours contracts and bogus self-employment?

In the past year, workers in held-back communities have been disproportionately hit by covid. The north-east had by far the lowest percentage of workers who were able to work from home in the past year and a half. Only a few weeks ago, the north-east chamber of commerce was urging the Government to intervene as unemployment remains among the highest in the UK. With furlough set to be removed at the end of this month, the picture right across the UK is likely to get much worse.

More than a third of all workers in the north-east are classified as key workers. They have carried this country on their backs during this unprecedented pandemic. Care workers, supermarket staff and cleaners are paid less than the real living wage. What are the Government going to do to raise their pay—to level up in the true sense of the term?

In education, a decade of Tory rule has seen per-pupil spending dwindle by nearly 10%. The Institute of Fiscal Studies is clear that pupils in more disadvantaged areas have been hit the hardest—surprise, surprise.

The current plans go nowhere near redressing what has been cut and are disproportionally weighted to more affluent areas. Earlier this year, a Department for Education study revealed that pupils in the north-east fell further behind than those in any other region. Changes to the way pupil premium funding is allocated by amending the date at which free school meals are counted has left one school in my constituency £88,700 worse off. I say to the Minister that, when schools in the most deprived areas are getting fewer funds allocated than those in the more affluent areas, how on earth can that be classed as levelling up? What will he do about it?

The scourge of pensioner poverty is once again on the rise across the UK. It is entirely possible that, given the Government’s drive to increase the state pension age in the relatively near future, average life expectancy in large parts of the UK will be lower than the state pension age. That would hammer people in constituencies such as mine where male life expectancy in good areas hovers around 65 to 70 years of age. What will the Government do to stop those with the lowest healthy life expectancy and the lowest life expectancy from being taken out of a pension system that they have paid into all their lives—week in, week out—from their employment? They might not even get a halfpenny because of the level of life expectancy in their area. They might not get a halfpenny back from what they have put in. Is that levelling up? I do not think that that is really what is meant by levelling up.

The much trumpeted social care plans not only fail workers, but do nothing to protect the assets of people in constituencies such as mine. In many parts, average house prices are much lower than the £100,000 set by the Government. How can levelling up mean that people in held-back constituencies such as mine lose their modest assets that they have worked their whole lives for to pay for care, while those in richer parts of the country pass on their wealth to their children? We could go on and on.

Bus services have been slashed in the north, but the cost of travel has increased massively. In London, bus fares are capped at £1.55, and a day of bus travel in the capital is capped at a total of £4.65 a day. Travelling in my constituency between Morpeth and Ashington, which is roughly 6 miles, costs £6.40.

[Navendu Mishra (Stockport) (Lab)]

I thank my good friend for giving way and congratulate him on securing this important debate. In my first Prime Minister’s questions, the Prime Minister assured me that he would look into the details of plans to extend the Metrolink tram system into my constituency of Stockport. I have not heard a word since. Does he agree that we need action and investment from the Government rather than empty promises and warm words?

[Ian Lavery]

Absolutely. I thank my friend for that intervention. I think I mentioned early on in my contribution that levelling should not be rhetorical. Levelling up is a serious issue and we need to know how the Government will actually level up.

On climate change, the costs are being passed on to working families, while those who continue to pollute are getting away scot free. As I say, I could go on and on. The phrase “levelling up” is not going away, but it means little in the mouths of Conservatives more interested in pointing at shiny infrastructure projects than in the prosperous futures of people in communities that have, for so long, been held back. The funding being considered is simply not enough; it is a sticking plaster over a severed limb. By almost all measures, those areas of our country that have been held back by the Government trail those from more prosperous parts of the country. This has been further exacerbated by the coronavirus crisis and its dismal handling by the Tory Government. We simply cannot afford for levelling up to be abused in the same manner, with cosy contracts for infrastructure investment handed to the same people while at the same time poverty, education, health outcomes and opportunities continue to suffer.

I do not think anyone would argue that billionaires should be profiting from a crisis like a pandemic, but during the course of the last 18 months the global wealth of billionaires rose by more than £5 trillion. So when Labour wins the next election, let us have a backdated super tax on the spivs and Tory donors who have enriched themselves with Government cash, pocketed through the last year of hell while ordinary people have paid the price.

As Frances O’Grady said today at the TUC,

“levelling up means nothing if they freeze key workers’ pay, slash Universal Credit, and the number of kids in poverty soars.”

I echo her challenge to the Government: if levelling up is more than rhetoric, it must mean a levelling up in the workplace, in our communities and ending the scourge of child poverty.

--- Later in debate ---

[Luke Hall]

My hon. Friend is a champion for his constituents. I am grateful to him for putting that point on the record. We are trying to achieve improvement in living standards and to grow the private sector, especially in those parts of the country where it is weak, such as the former industrial areas that have been left behind by Governments of all colours for far too long.

The Prime Minister spoke in July about the Government’s central mission, which is to level up and unite our country. The hon. Member for Wansbeck is quite right to speak about the issue so passionately, in the way that we also have. We have made levelling up a central part of our work and our economic strategy, and will publish a White Paper later this year, setting out bold, new, substantive policy interventions to tackle some of the key challenges.

Wherever people are born or grow up, they should have the opportunity to succeed in life without having to leave their home town to do it. But we cannot achieve that goal without recognising the significant economic, social and regional disparities that currently exist. Some 50% of the population of London have graduate-level qualifications, compared with 33% in the north of England. The hon. Member for Jarrow (Kate Osborne) was right to point out that healthy life expectancy in Blackpool, in Middlesbrough and in her constituency can be up to 10 years shorter than in some parts of the south-east of England. Those are just a few examples of the inequalities that we want to address, and which are a central focus for my Department and the Government as a whole.

We are continuing significant investment to this cause, with a once-in-a-generation wave of funding into areas that have been historically underserved for far too long—not just in England, but also in Scotland, Wales and Northern Ireland. Our £4.8 billion levelling-up fund and £220 million community renewal fund are both UK-wide, ensuring that all parts of the United Kingdom benefit from this investment. The levelling up fund will be investing in that infrastructure, which we believe is so important in different parts of the country. It makes a real difference to town centres and to high streets in bringing jobs and opportunity to different parts of our country, whether that is about upgrading local transport or investing in cultural and heritage assets. In the north of England, 38 places, including Northumberland, have been identified as top priority areas for the fund, and each of those areas will be receiving capacity funding as well.

The community renewal fund, meanwhile, is supporting communities and people in need of support, piloting programmes and new approaches to target investment in skills, communities, places and local businesses, and supporting people into employment—many of the things that the hon. Gentleman talked about. We have signed heads of terms on all our 101 town deals, bringing £2.5 billion of investment into towns across the country. Of those, 43 are in the north of England, with over £1 billion of investment combined. Take the work that we are doing in Barrow. The £25 million towns deal in Barrow includes a new learning quarter that will transform the local educational offer in the town. Almost one in four adults in that town have no qualifications at all, but this project will equip a new generation with the skills that they need to compete in a truly global economy. This is levelling up in action and what we want to see replicated right across the country.

However, it is not just about the investment. It is about ensuring that we have strong, local leadership that helps to deliver—that powers productivity and growth in different parts of the country, backed up by strong leaders fighting for their areas on the national stage. That is why we are committed to levelling up powers across the north too, building on the biggest transfer of powers to local areas since the second world war. Following the elections in May in West Yorkshire, over 63% of the north’s population is now represented by combined authority mayors. That is what we are trying to achieve—empowering local communities and devolving skills, money and power to local leaders to address these local blackspots to support and drive the regeneration of town centres and high streets and permanently rebalance some of the regional imbalances in our country. Local leaders have shown what is possible in that regard.

The levelling-up agenda spreads right across the different parts of the work we are doing. In Blyth, we invested over £20 million as part of the towns fund to help to foster regeneration, stimulate investment and deliver vital infrastructure that is so needed. That is in addition to the £11 million through the future high streets fund that we are delivering there too. Through the getting building fund, we are supporting offshore renewable projects in Blyth, while the borderlands growth deal aims to bring fresh investment to the borderlands area. As part of that deal, Northumberland will receive over £12 million to support growth and investment, and a further £17 million has been committed to support the green energy sector in the borderlands too, subject to the final business case sign-off. On the connectivity the hon. Gentleman talked about, we can see the £4 million of investment to upgrade to superfast broadband delivery to homes and businesses, while the deal is also supporting projects that focus on heritage.

Of course the hon. Gentleman is right that creating an equitable future for children, regardless of where they grew up, is a key part of levelling up that requires a holistic approach from right across Government. That is why some of the funds that I have been talking about are so important. We are delivering in skills, communities, places and businesses, supporting people into employment. Both getting people into work and progressing them in work is a key part of what we are doing, working with the Department for Work and Pensions in delivering its plan for jobs. The DWP has local teams that specialise in partnership working, supporting people just as he talked about, creating links to communities to understand their needs and provide specific—

[Navendu Mishra]

rose—

[Luke Hall]

I cannot give way because the hon. Member for Wansbeck (Ian Lavery) took too much of the time—I do apologise.

Our supporting families programme through the Ministry of Housing, Communities and Local Government is just one example of how we are working together, bringing agencies together to deliver for families who need that extra support. We are boosting jobs and investing in communities, including by establishing freeports right across the country, with eight in England and three in the north of England—in Teesside, Humber and Liverpool city region. That will create jobs and address some of the imbalances right across the country.

The north is at the forefront of our work to drive net zero, as the hon. Member for Wansbeck talked about, as the home of innovation work in carbon, capture and storage and so many other areas, too. Whether it is the work we are doing with the Department for Education on the “Skills for Jobs” White Paper and the lifetime skills guarantee, our devolution of the adult education budget—more than £308 million this year—or the money we are redistributing for the local government finance settlement, with £240 million of equalisation this year, we are straining every sinew to support the north of England and level up right across the country.

I am grateful to hon. Members for their contributions today. I will reflect on the important points that have been made and which I realise have been raised in the right spirit, and I am always happy to discuss them further. We believe that all parts of the UK should have the means to positively shape their own future. That is more important now than ever, as we look forward to the road to recovery.

Question put and agreed to.

Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill (Second sitting)

Navendu Mishra Excerpts

Committee stage
Tuesday 6th July 2021 Public Bill Committees

[Navendu Mishra (Stockport) (Lab)]

Q Can you comment about how these provisions will affect local government’s income from business rates? We hear a lot about cuts to local government in the last 11 years, but how will this impact finances?

Sarah Pickup: These provisions mitigate against the need for having to make provisions against the material change of circumstances. In that sense, they are beneficial to local government, because it takes away that uncertainty, albeit we need the clarifications around timing and discretion as part of this.

If we stand back and think about business rates as a source of finance for local government and the Treasury’s fundamental review of business rates, they form 25% of local government income and are really important. Alongside council tax, business rates are one of the two main sources of funding, but where we stand now is that there is a whole patchwork of reliefs and new provisions for relief to businesses against their core business rates commitment. It means that the future is very uncertain. The way in which the next revaluation will go is uncertain and, arguably, while business rates have a role going forward, some significant reforms are needed to make them a stable source of finance for local government going forward.

[Luke Hall]

Q Thank you for your evidence: I know the LGA conference is happening today. Can you think back and tell us when the LGA first heard about the potential scale of losses through MCC challenges and appeals? What was the reaction of local government at that time? What issues were they raising with you and how widespread was the concern? What time did it start to build up?

Sarah Pickup: Gosh, it is really hard to recollect precisely; so much has gone on in the last year. It was probably about a year ago; it may be slightly less. There was a lot of discussion at the point when the Valuation Office Agency started to discuss how it might address these appeals. I think there might have been some leaks in the press. That is when the discussion started to come to the fore a bit more, because there were some quite substantial proposals around the adjustments to valuations that might go forward. I think there was an attempt to address this on a uniform basis, rather than deal with every appeal and address it individually. We have gone from there to this scheme which approaches the issue differently, probably more straightforwardly and in a more timely way, certainly in the short term.

The anxieties around appeals are ever present and this was just an addition to the pre-existing issue about businesses’ ability to put in appeals right up through a rating list with no time limit on it. The check, challenge, appeal process has made a difference to that, but we have not yet seen the end result of the number of appeals from the 2017 list, because the time window has not closed yet.

--- Later in debate ---

[Peter Grant]

Q One final question, if I may, that ties together two of your previous answers. You said that you had certain knowledge of the type of scams that you just described, perpetrated by company directors who were doing the same thing many years ago. It is up to you if you want to name names in answer to this question, but are you aware of people conducting these scams now who could be disqualified from office as directors if the Insolvency Service went back and looked at the conduct of directors of companies that were dissolved earlier than the time limit of three years set out in this Bill? Does the three-year rule actually prevent the Insolvency Service from investigating directors currently conducting scams who, without that time limit, could be held to account and disqualified from holding office?

Andrew Agathangelou: Yes, that is absolutely the case. I will elaborate on my answer, if I may. Last year, the Work and Pensions Committee led by Stephen Timms MP opened an inquiry on pension scams. Many of our members are victims of pension scams, so as a consequence it is a topic we know rather a lot about. I will share a document with the Committee produced by the Transparency Task Force as part of our response to that inquiry, and that document will evidence without any doubt why it is absolutely necessary that the three-year limit is extended to five, six, seven, 10 years, however far back you can go.

I say this because I am working on the basis that if the regulators, the enforcement agencies and the Insolvency Service can prosecute criminals and have them pay fines or be locked up, or whatever it might be, they would want to do that. Why would they not want to prosecute the baddies? To my mind it is simple, and I absolutely assure you that in the document I will provide to the Committee, as well as other supporting documents and evidence, you will see named individuals who have been dancing around prosecution over many, many years—I think one is 11 years. This Bill, if extended to a proper duration of time, would become a problem for them.

I would take great satisfaction if this Bill helped to finally lock up individuals who are currently in very expensive villas in Florida, with properties all over the world, with all kinds of fancy cars and fancy homes, all paid for by the life savings of British pension savers and investors. That would be very rewarding to know.

[Navendu Mishra]

Q I believe that all 650 MPs will have constituents who have been victims of the practice of phoenixing. I believe you made reference to law enforcement agencies, Action Fraud and the National Crime Agency. Could you tell us a bit more about how big the problem of phoenixing is—directors using legislation to dissolve companies to avoid liabilities and further investigation?

Andrew Agathangelou: I cannot answer your question directly, forgive me—I do not have that data and have not done that research. Let us think of it like this: roughly four or five years ago, a man called Roberto Saviano, an investigative journalist, became quite famous for a period because he did some investigative journalism on the mafia, and as a consequence of that investigative journalism, he now lives, I believe, under police guard 24 hours a day because he lifted the lid on a whole load of really bad, really heavy stuff.

I am mentioning Roberto Saviano because about five years ago, at something called the Hay Festival, he made the point that London is the heart of global financial corruption. That is a pretty powerful thing for somebody to say, especially if they have been investigating the mafia for years and years. You can google it and find it yourself. This is a very serious heavy-duty investigative journalist.

I mention that because it is reasonable to assume that a lot of that corruption involves entities and companies set up for special purposes. If the UK is the worst country in the world when it comes to global financial corruption—or if it is not the worst, let us say it is in the top quarter of really bad countries when it comes to financial and economic crime and corruption—it is reasonable to assume that the artful dodge of phoenixing is part of the modus operandi of the “community” that does this kind of stuff. I cannot give you any facts or figures, but a little deduction suggests that it is a massive problem.

I will make one further point, if I may. One of the reasons why it is a problem is Companies House. It is still shocking to me that, despite about nine years of Parliament having an interest in Companies House, finally getting its act together and asking even really basic questions about the people behind a new company that is being set up, Companies House has been allowed to carry on behaving in the nonchalant way that it does, with its casual, risky and dangerous way of granting companies the chance to come into existence when no proper due diligence has been done.

Similarly, in the pensions world, there was a period of about three years when Her Majesty’s Revenue and Customs was happy to authorise the setting up of new pension schemes with the lightest-touch due diligence you can imagine. Basically, people were allowed to go online, fill in a form and create a new pension scheme, which would then be the perfect vehicle for scammers to use. That has happened so much.

While I am on this little rant, allow me to stay there with one more point. When the pension freedoms legislation was being introduced, many people said, “Woah, woah, woah, woah, woah! Before you go allowing people to transfer their entire pension savings in a lump sum, why don’t we stop and think what the risks of this are? Why don’t we have a conversation about whether this might lead to some kind of fraudster’s paradise?” But no, pension freedoms legislation was rushed through, and now, many years later, even the regulators, such as the Financial Conduct Authority, are making the point that not enough thought was given to the risks associated with that kind of casual, fast policy-making.

So there we go. Companies House is effectively advertising to criminals, “Come and set up a company in the UK. Don’t worry, we’ll turn a blind eye to pretty much anything that happens because, frankly, we won’t know what you’re doing or what you’re about because we won’t bother asking you.” That is one example of these sorts of issues. The second example I have given you is in relation to HMRC, and it goes on.

I honestly think that if anybody was to do some kind of independent, objective, evidence-based evaluation or analysis of the work of City of London police, the Insolvency Service, Companies House and the financial regulators—that very long list that I mentioned—around how effective they are at preventing crime from happening in the UK, I am pretty sure that report would be rather scathing.

[Navendu Mishra]

Your contribution is quite depressing, but thank you for making it.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

Q I am here with my corporate governance hat on, but I am also Minister for Consumers. The issues that you raise about scams are really important, and it is really important that we continue to address that. We just had Scams Awareness Week; we have been raising awareness so that people do not get involved, but it is also important that we make sure that institutions and networks are addressed in these sort of ways.

It is interesting: you talked about the amendment, which actually asks for a single report in a year. Clearly, we want to be managing the situation and making sure that it is effective. In terms of the time that you are looking at, obviously that does not negate the ability for criminal action to be taken; it is to restore directors.

I really want to focus on the Bill itself, and the focus within that and what we are doing positively to try to tackle some of these issues—including on phoenixing, which you started off talking about. I know you talked about lots of other things, and other things that we can be doing and are doing, but do you agree that the Bill adds an extra weapon to tackle phoenixing itself?

Andrew Agathangelou: I certainly do. As I said earlier, it is a significant, valuable, worthwhile step in the right direction. My plea—forgive me; I guess I am repeating myself here—is that we look at the whole ecosystem. For example, why on earth are we not including fraud and so on in the online safety Bill? I know that is another topic, but can you see how, from my point of view, these are all interconnected issues—this is all the ecosystem?

I guess I am saying that Parliament can take one of two views here. You can either deal with this tactical, ad hoc Bill, which is of course worthwhile, in isolation of everything else. However, for goodness’ sake, please do not do that; actually look at the bigger picture here—the interconnected matrices of other issues that Parliament ought to be grabbing by the scruff of the neck and finally sorting out.

Fire and Rehire

Navendu Mishra Excerpts

Tuesday 27th April 2021 Westminster Hall

[Navendu Mishra (Stockport) (Lab) [V]]

I refer Members of the House to my entry in the Register of Members’ Financial Interests, in particular my membership of Unite. I start by thanking my hon. Friend the Member for Jarrow (Kate Osborne), who is a good friend, for securing the debate.

The pandemic has changed the world of work for almost all workers. We have seen some employers go above and beyond in supporting their employees, but, sadly, we have also seen some employers using it to attack wages and terms and conditions for their own workforce. I am proud to be a Labour MP, so it should not come as a surprise that I am a socialist and trade unionist. Trade unions offer workers a voice in the workplace, and data tells us that unionised workplaces are not only safer, but benefit from better terms and conditions. I am grateful to all trade unions for standing up for their members against employers who are taking advantage of the pandemic to increase profit margin at the cost of their own workers.

One such employer is British Gas. The parent company, Centrica, has been in a long-standing dispute with the GMB union. I have had a GMB picket at the British Gas office in my own constituency, in Brinnington ward. A few days ago, the media reported that almost 500 engineers had lost their jobs after refusing to be forced into new contracts—a truly shameful day for a household brand such as British Gas. Rightly, the public will not forget how British Gas Centrica treated its workforce.

Unfortunately, there is another dispute in Greater Manchester at Go North West buses. Unite members at this bus operator had been on the picket line for more than 60 days. They have been blackmailed into a taking a significant pay cut. Drivers at Go North West earn on average £24,000 per year, but changes mean they will have to work much longer hours for the same pay. In real terms, that means a £2,500 pay cut. I have visited the picket line on three occasions to show my solidarity with Go North West employees.

Fire and rehire has been used as an aggressive negotiation tactic by household brands. That is completely unacceptable, and we need urgent action, not warm words from the Government. Several Members have already asked when we can we expect the ACAS report to be made public. As constituency MPs, we need to see the report to hold the Government to account.

Urgent Government action is needed to end fire and rehire bullyboy tactics. It is all well and good to clap on the doorstep for our amazing key workers, but what they need is clear Government legislation against fire and rehire tactics, rather than vague platitudes from Ministers. Will the Minister call out bad employers such as British Gas, Goodlord, Brush Electrical Machines and Go North West? We need real action from the Government, not warm words.

[Mrs Sheryll Murray (in the Chair)]

Thank you for carrying on during the Division bell.

Greensill Capital

Navendu Mishra Excerpts

Tuesday 13th April 2021 Commons Chamber

[Paul Scully]

I admire my hon. Friend’s work on anti-corruption. It is important to keep raising the issue, but it is also important to keep a sense of perspective and to tackle actual corruption rather than speculate on other issues for political purposes. As I say, it is important to remember that in these circumstances the process has worked well: it was right to push for as much capital as possible to flow to small and large businesses, but it is important to remember that the Chancellor did reject the suggestion put forward by Greensill.

[Navendu Mishra (Stockport) (Lab) [V]]

I would like to wish all celebrating the Hindu new year a happy Navratri and the Sikh community a happy Vaisakhi today.

The Bank of England is rightly independent of the Government. Can the Minister confirm whether or not Bank of England officials were requested by the Treasury to make amendments to its covid corporate financing facility to suit Greensill Capital after the former Prime Minister had texted the Chancellor?

[Paul Scully]

As I have said, the Chancellor rejected any notion that the CCFF scheme should be rewritten.

Oral Answers to Questions

Navendu Mishra Excerpts

Monday 11th January 2021 Commons Chamber

[Robert Jenrick]

The Chancellor announced earlier in the year an unprecedented business rates holiday, which is benefiting thousands of businesses the length and breadth of the country, and he will be considering what further steps are necessary. I know that he is making a statement later today, and we will bring forward a Budget in March. We all want to support small independent businesses on our high streets, which is precisely why I encourage the hon. Gentleman and his colleagues to support the planning reforms that we have already introduced, such as the ability to build upwards, to bring more homes on to the high street and to turn a derelict or empty property in a town centre into something more useful for the future. Those are the ways that we attract private sector investment and enable small builders and entrepreneurs in Croydon, in Newark and in all parts of the country to face the future with confidence.

[Navendu Mishra (Stockport) (Lab)]

What steps he is taking to improve security of tenure in the private rented sector.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Kelly Tolhurst)]

The Government are committed to enhancing renters’ security by abolishing no-fault evictions. During the covid-19 pandemic, our collective efforts have been focused on protecting people during the outbreak. This has included introducing longer notice periods and preventing evictions at the height of the pandemic on public health grounds. We will introduce a renters’ reform Bill very soon.

[Navendu Mishra]

I thank the Minister for her response. Hundreds of thousands of people are at risk of being evicted when the ban is lifted. The covid crisis has highlighted underlying problems in the private rented sector, including families being forced into expensive and insecure housing. Local organisations in my constituency, including Stockport Tenants Union and ACORN, have long campaigned to end section 21 evictions, but when will the Minister deliver her manifesto commitment to do the same?

[Kelly Tolhurst]

I thank the hon. Gentleman for his question. We are committed to abolishing no-fault evictions under section 21. Obviously, we have already taken some action. Last week, for example, my right hon. Friend the Secretary of State increased the ban on evictions for a further six weeks. We have also introduced six months’ notice, which means that people who receive an order now will find that it will not go through the courts until July. We are committed to making sure that we protect anybody who is suffering homelessness. That has been borne out by the level of investment that we have put into the sector during the pandemic. We will keep all these measures under review.

Hospitality Industry: Government Support

Navendu Mishra Excerpts

Monday 11th January 2021 Westminster Hall

[Navendu Mishra (Stockport) (Lab)]

It is a pleasure to serve under your chairship, Mr Stringer. I, too, hope that we can return to virtual proceedings in Westminster Hall, so that all Members and staff can contribute safely amid rising infection rates. I pay tribute to my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) for securing this important debate. I also thank the Mayor of Greater Manchester, Andy Burnham, and his night-time economy adviser, Sacha Lord, who have done so much in recent months to push the Government to provide a fair financial support package and who have set out the scale of the challenge facing my region.

The hospitality industry is a vital part of our economy and a growth industry. It is the fourth-biggest employer in the UK and contributed £133.5 billion to the economy in 2019. My constituency of Stockport is no different from many others in that a significant number of people are employed in the sector, many of whom have written to me to express their concerns about the lack of meaningful support provided by the Government. It is clear that the current measures, such as furlough payments, are little more than a drop in the ocean for many businesses struggling to keep their heads above water almost a year on from the start of the crisis. Far more needs to be done if we are to avoid the industry nosediving and hundreds of thousands across the UK ending up unemployed.

In Greater Manchester, more than two thirds of hospitality operators expect to make or have already made redundancies, 80% of which are in the restaurant sector. The failure of the Government to provide more meaningful support is perhaps why more than a third of businesses believe that they will never return to pre-covid levels, and why the hospitality sector expects to lose about 600,000 jobs by next month.

My constituents want the Government urgently to introduce more supportive measures during this period. For example, in the beer and pub sector, many businesses have called for the beer duty to be cut, for more pubs to be allowed to offer a takeaway service, and for wider financial support measures. That is even more pressing given the precarious nature of the pub industry, which in Stockport alone shrank by 25% in the decade prior to the pandemic. Publicans across my constituency, including Veronica Bell of the Sun and Castle, Pamela Clews of The Grey Horse and Ellen Davies of the Gardeners Arms have continued to go above and beyond to ensure that their businesses survive the crisis.

There is also an important point about supply chain businesses, such as Stephensons in my constituency, which supplies the catering trade across the north-west. Without their efforts, many more local jobs would have been lost and pubs would have disappeared for good from our high streets and communities. However, their hard work alone is not enough. Stockport Council recently made a successful bid for future high streets fund investment. Although that is welcome, it will do little to bring a halt to the significant decline in trade.

I therefore call on the Minister to provide assurances that the furlough scheme will be extended beyond its current deadline of the end of April and that other measures will be taken, such as the extension of business rates relief, until the hospitality sector is fully open again, as well as significant safety net measures such as Government-backed covid indemnity insurance policies like those we have seen in many European countries, including Germany.

The Future of the High Street

Navendu Mishra Excerpts

Thursday 10th December 2020 Commons Chamber

[Navendu Mishra (Stockport) (Lab)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests, and I thank my union, the Union of Shop, Distributive and Allied Workers, for campaigning so powerfully to support our high streets, particularly the retail workers, who are all too often among the lowest paid and employed on precarious contracts. As a former retail worker on the shop floor, I take a great deal of interest in the future of Britain’s high streets and the health and prosperity of our town and city centres.

This is a crucial debate, at a time when our high streets have been stretched to breaking point by the latest lockdown and by the failure of this Government to provide meaningful financial support, resulting in the closure of tens of thousands of businesses, millions being forced into unemployment and the deepest recession in our history. The unique character of the high street is important to our communities, and its survival is vital for our local and regional economies.

Let us take Stockport market in my constituency, where people have been trading for more than 750 years, and which can trace its history back to the middle ages. It is part of the fabric of our town; if hon. Members are ever in Stockport, it is well worth visiting the beautiful Market Hall when it is in full flow on trading days, and taking time to speak to the traders who make the town tick. I often stop by O’Mara’s café to speak to the owner, John, when I am out and about in the constituency, as well as those working so hard in Stockport’s Market Hall.

Indoor markets such as the one in Stockport are full of small, independent traders, who make our communities unique and offer a diverse alternative to the clone towns that we have seen spring up across the UK in recent years. Stockport Council has an exciting vision for our town centre, with a £1 billion investment programme that will see new homes, new forms of transport, leisure outlets and jobs. I pay tribute to the council staff who have worked so hard to make that a reality. If hon. Members are not aware of the Stockport Mayoral Development Corporation, they should look it up; it is a blueprint for the future of town centres, with mixed retail and housing.

Unfortunately, the reality is that without meaningful support, the efforts of council staff will only delay the inevitable. The lack of support for these traders from this Government since the start of the covid pandemic is nothing short of scandalous. The grants and furlough scheme have proved to be little more than a drop in the ocean, leaving the vast majority of small businesses and traders struggling with rent payments and fixed costs. It should come as little surprise, then, that USDAW researchers revealed that there have been more than 200,000 job losses and 20,000 store closures this year alone in the retail sector.

The sad demise of the high street is the result of an unlevel playing field rigged in favour of online retailers, who have little in the way of overhead costs such as shop rents and are able to undercut high street retailers. The recent collapse of Arcadia Group put 12,000 jobs at risk and further hollowed out our high street. That followed the closure of Sainsbury’s on Warren Street in my constituency, which saw a further 87 hard-working staff put at risk just days before Christmas and the new year, despite Sainsburys’ having announced record profits in recent months. I am pleased to hear other hon. Members suggest an online sales levy, which could be set at 1% of online sales and would raise around £1.5 billion. The money generated by that could help to offset a cut in retail business rates of around 20%.

Covid-19: Funding for Local Authorities

Navendu Mishra Excerpts

Tuesday 24th November 2020 Westminster Hall

[Navendu Mishra (Stockport) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank my hon. Friend the Member for Bethnal Green and Bow (Rushanara Ali) for securing this important debate.

As far back as May, I wrote to the Secretary of State for Housing, Communities and Local Government asking for a cast-iron guarantee that the Government would deliver on their promise to cover the costs of local authorities’ response to the pandemic. At the time, Stockport Metropolitan Borough Council in my constituency was facing a shortfall of £41 million, like other councils, and that shortfall has now increased considerably. Six months on, we are still awaiting an assurance from the Government, while local authorities continue to be pushed into the red as they struggle to stump up funds to safeguard the lives of their citizens during the latest wave. Faced with economic ruin, the council was pushed into the dark, as we saw most recently when the London Borough of Croydon was forced to file for bankruptcy after being unable to address a £66 million black hole.

Our councils continue to do the job of ensuring that everyone receives the support they need during this incredibly troubling period. I have enormous respect for them and am incredibly grateful for the work that they have continued to do in challenging circumstances. The deputy leader of my council in Stockport, Councillor Tom McGee, is a fine public servant and I thank him for ensuring that our local public office holders are updated at every stage of the pandemic and are aware of the challenges faced by our local administration.

Nobody expects the Government to have foreseen a global pandemic, but it is clear that a decade of austerity—an ideological choice, not an economic necessity—has ravaged local authority finances and left them weakened, forcing councils to delve into their reserves to redress the central Government shortfall. To put that in context, Stockport council went into the crisis with over £100 million already slashed from the town hall budget since 2010. The council has now been forced to step in to compensate for the Government’s insufficient funding, and local authority budgets are stretched even further. During the first wave alone, the funding black hole for Stockport council was £25 million. Failure to underwrite council expenditure will have dire consequences for my council and leave it with little alternative but to consider dramatic measures such as issuing section 114 notices to curtail all but essential spending, leading to wholesale reductions in services for all those living and working in Stockport.

The Government must urgently intervene to ensure that all councils are in a position to protect their citizens and prevent other services from going to the wall, including libraries, parks, museums and leisure services. Adult social care is one area that cannot be overlooked, and it is already under enormous pressure, as was mentioned by my hon. Friend the Member for Bethnal Green and Bow. The Government need to resolve the funding crisis in the adult social care sector. The Local Government Association recently estimated that social care services face an additional cost of over £6.5 billion to cover costs. The main three areas are PPE, increased staff costs, and increased cleaning and overheads.

In addition to the vast expenditure that local authorities are forced to cover during this period, many have seen their incomes cut dramatically. Every council in Greater Manchester, for example, has been hit by the drop in the dividends from Manchester airport on which it relies. For Stockport council, that means that more than £6 million has been lost, placing further strain on services and jobs—and that is even before we factor in the significant number of jobs lost in the aviation sector more widely, where many of my constituents work in the UK’s third-largest airport.