Oral Answers to Questions

Rachael Maskell Excerpts
Tuesday 1st July 2025

(5 days, 23 hours ago)

Commons Chamber
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James Murray Portrait James Murray
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I am not really sure whether there was a policy suggestion in that comment or not. As the shadow Minister will know, the fiscal black hole that we had to address when we won the general election was the £22 billion black hole that the Conservatives left after their mismanagement of the economy. As I said, the Office for Budget Responsibility has confirmed that our reforms to the non-dom regime, with our removal of non-dom tax status, will raise £33.8 billion over the five years of the forecast. It is the OBR’s figures that we will trust in that regard.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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3. What fiscal steps she plans to take to help reduce the number of disabled and sick people in poverty.

Rachel Reeves Portrait The Chancellor of the Exchequer (Rachel Reeves)
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The Government are committed to ensuring that there are fewer sick and disabled people in poverty by helping them into work and getting them off NHS waiting lists. That is why at the spring statement we announced the largest investment in employment support in at least a generation. The Government have already taken action to tackle poverty, including with the fair repayment rate, which lowers the cap on deductions in universal credit, and we have increased the national living wage by 6.7%. Beyond that, we are investing to reduce poverty by expanding free school meals and investing in a £1 billion settlement for crisis support. We will set out our child poverty strategy in the autumn. We have invested £29 billion in reducing NHS waiting lists, and since we took office there are 385,000 more people in work.

Rachael Maskell Portrait Rachael Maskell
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Many disabled people are really struggling right now. We know that three in 10 are living in poverty, as I can see in my York constituency, but I was particularly taken aback by the Women’s Budget Group report, which highlighted that three quarters of the people who will lose their personal independence payment and carer’s allowance are women. How will the Chancellor ensure that when fiscal decisions are made, we look in particular at the intersectionality between women, disabled people and other protected characteristics to ensure that they are not pushed further into poverty?

Rachel Reeves Portrait Rachel Reeves
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My hon. Friend will know that nobody currently receiving personal independence payments will see any reduction in the support they get. In terms of supporting women into work, recognising some of the intersectionalities she mentioned, the Government have increased the national living wage by 6.7%—sadly, it is still too often women who are paid the lowest wages—and our Employment Rights Bill will offer more security and dignity in work. We are also rolling out more childcare, including new nurseries at primary schools, and my right hon. Friend the Business and Trade Secretary will today make a statement announcing the launch of a review of parental leave, which could benefit all working parents, but particularly mums.

Spending Review 2025

Rachael Maskell Excerpts
Wednesday 11th June 2025

(3 weeks, 4 days ago)

Commons Chamber
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Rachel Reeves Portrait Rachel Reeves
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The hon. Gentleman makes a really important point. What we did today was not just set out money for next year; we have set out money for day-to-day spending for the next three years, and for capital spending for the next five years. Wherever people are in the UK, it is vital that local councils, the devolved Administrations and community groups can plan for the future with confidence. That is what we have done with this spending review, and I urge the devolved Administrations to do similar and make multi-year settlements in order to give certainty for the future.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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Despite being the lowest-funded unitary authority in the country, we are doing everything possible to drive down inequality in the city of York, but the differential has stayed at 13 years. Today’s announcement of investment in health, investment in social housing and investment in education will make a real difference for my constituents. However, I worry about the inequality for disabled people in our country. I have looked through the statement. Will the Chancellor give assurances that if disabled people are unable to work, they will not be left behind, and that we will ensure that we have the social security they need, so that they, too, can gain from today’s statement?

Rachel Reeves Portrait Rachel Reeves
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Part of the investment in the north of England is for the trans-Pennine route upgrade, which my hon. Friend and I both welcome. The investments in health and education are important, but so too is supporting disabled people, which is why £1 billion has been set aside in the spending review to help get people back to work. Many disabled people are desperate to work, if the right support is available. Of course, the social security system and the welfare state must always be there for people who cannot work, and under this Labour Government they will be.

Regional Growth

Rachael Maskell Excerpts
Wednesday 4th June 2025

(1 month ago)

Commons Chamber
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Darren Jones Portrait Darren Jones
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I thank the hon. Member for, I think, welcoming the nearly £1 billion of investment in transport for the west of England, which we know is a thriving part of the country. With the right investment in affordable housing, clean, renewable transport that works on time and is affordable to use will be great for people living in her constituency and mine, and great for the country.

One point to note is that the funding announced today is capital investment, not day-to-day spending. There will be further announcements in the coming weeks from the Department for Transport about issues such as bus subsidy and rail subsidy, but we are absolutely committed to supporting funding within regional combined authorities. This is not about particular places; that is why we have given this money to mayors, who will work with Members of Parliament like me and the hon. Member to ensure that we are delivering for the west of England and for the country.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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I note that York did not feature in the Chief Secretary’s statement. However, I recognise the outstanding connectivity in York. Today is about creating jobs, and adjacent to York station, the York Central development—the gateway of the economy of the north—will create 12,000 jobs. Will he ensure that there is proper investment in York Central to unlock those jobs and give people in my city and the region the opportunities they deserve?

Darren Jones Portrait Darren Jones
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I thank my hon. Friend for welcoming the historic level of funding in transport infrastructure. As she will know, this is a devolved pot of money and regional mayors will decide how to spend it, so I cannot answer her question. I encourage her to talk to the mayor about the opportunities in her constituency.

Oral Answers to Questions

Rachael Maskell Excerpts
Tuesday 20th May 2025

(1 month, 2 weeks ago)

Commons Chamber
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James Murray Portrait James Murray
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I very much recognise, both as a constituency MP and as a Minister, the importance of making sure that adoptive parents can build a strong family unit with their adoptive children. If I may make a broader point, the only reason we can invest in public services is because of difficult decisions we have taken around taxation. The problem with the Liberal Democrats and other parties on the Opposition Benches is that they are happy to support the extra funding for public spending, but not the tax rises necessary to pay for it.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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This is not an issue on which to make a party political point. The reality is that a 40% cut to the adoption and special guardianship support fund will be deeply impactful for young people who have experienced significant trauma—abuse, neglect and so much more. Given that our mental health services are not fit for purpose at the moment, it is imperative that we make the right investment so that those young people are not denied a life course opportunity if that fund is cut. Will the Minister review the decision and ensure that we have the proper funding that young people need?

James Murray Portrait James Murray
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As my hon. Friend will know, spending decisions are for the Chief Secretary of the Treasury to discuss with Departments. I make the general point that investment in mental health, for instance, which she mentioned, is possible only because of the decisions we have taken on taxation to ensure that we can support public spending on mental health services and on support for young people.

Spring Statement

Rachael Maskell Excerpts
Wednesday 26th March 2025

(3 months, 1 week ago)

Commons Chamber
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Rachel Reeves Portrait Rachel Reeves
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The OBR has not taken into account any of the package of measures to get people back into work or looked at any behavioural effects of people making that switch into work. It said in that document that it will spend the summer looking at the entirety of the package, including the efforts we are making with a huge package to get people back into work. I am confident that that personalised, targeted support will get more people into work and lift them out of poverty, so that they can support their families and so that the economy can benefit from their contribution.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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Fiscal responsibility under this Government, unlike the previous Administration, ensures that people are paying less and keeps the cost of living down. However, as the Labour party, we have an additional social responsibility, so can we look at those DWP changes again? Of course we have to protect the most vulnerable, but we are really worried about the people just above that band who are set to lose out.

Rachel Reeves Portrait Rachel Reeves
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I thank my hon. Friend for that question, and I share the deep concern felt by everyone on the Government Benches—in fact, everyone in this Chamber—about the most sick and disabled, who need support. That is why we have set out in the Green Paper that we are consulting on an additional premium payment to the most severely disabled. It is also why, instead of writing people off and not providing the support that they need to do a job that matches their abilities and needs, we are providing that personalised, targeted support. I was at a jobcentre last week in Pudsey, in my constituency, where I heard amazing stories of work coaches helping people into work who are far from the labour market. We want to see more of that. We want to lift people out of poverty and help them to achieve their potential.

Independent Schools: VAT and Business Rates Exemptions

Rachael Maskell Excerpts
Tuesday 8th October 2024

(8 months, 4 weeks ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

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Bradley Thomas Portrait Bradley Thomas
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Thank you, Dame Caroline. Education is an investment in our future. It is in everyone’s best interests that children are well educated so that they can make an engaged and positive contribution to our society. We do not charge VAT on many types of private healthcare, as that is beneficial when people use their own money to pay for a service that the state would otherwise provide. We do not charge VAT on university or nursery fees, so why should schooling be any different?

There are approximately 2,500 independent schools in the UK educating more than half a million children. They are often small schools: more than 40% of independent schools have fewer than 100 pupils according to Department for Education data. The reality is that the policy will not fulfil its aims and will displace children mid-education. State education must be funded by the state, supported by taxpayers. The VAT exemption encourages greater use of independent education, reducing the number of state school pupils, meaning more money available per pupil in the state sector.

The Times recently stated that 71% of parents felt that rising school fees would influence their future decision about independent schooling. Additionally, 26% of parents said they would have to withdraw their children from independent schools if VAT is introduced.

An Adam Smith Institute report provides a detailed examination of the potential economic impacts. If 10% to 15% of students transfer, the net revenue could be negligible. Alarmingly, in a scenario where 25% of students switch from the independent sector to state schools, the tax could cost the Government £1.6 billion.

Currently, independent schools’ significant economic benefits include supporting 328,000 jobs, saving £4.4 billion from the education budget, and supporting £5.1 billion in additional tax revenue. They do this while saving the state £4.5 billion by removing the requirement to fund the education of 7% of children as the result of parents exercising this choice. Furthermore, independent and state boarding schools are a unique subset of the schools system, with the additional feature of attracting overseas students to the UK. Some 62,700 pupils are international students in independent schools, making up 11% of the population. This is a key export for the country, adding £2.1 billion to our economy annually.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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Will the hon. Member give way?

Bradley Thomas Portrait Bradley Thomas
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I will not give way. Independent schools should be seen as a British success story, both culturally and economically, instead of being discouraged and punished with the imposition of an education tax for socialist ideological principles. Most importantly, the human impact of the policy is stark. The failure of this education tax will not just be academic or financial; it will have a serious impact on families.

One parent wrote to me:

“As a widowed single mother who works full-time, I make enormous financial sacrifices to ensure my child can attend the same school from age 3 to 18. This stability is not only essential for my child’s development but also enables me to work and contribute to society. This proposed VAT would be devastating for families like mine.”

Another mother wrote to me and said,

“We also have a daughter who will need to start secondary school in two years. We had hoped for her to attend the same school as her brother but, with no scholarship likely and the addition of VAT, it is simply impossible. This is a painful realisation, and I worry that she will resent the opportunities that we couldn’t give her (but we could give her older sibling).”

We have yet to talk about the impact on special educational needs and disabilities education. This measure will cause particular problems for children who are in receipt of such bespoke education. Nationally, at least 130,000 pupils in independent schools receive SEND support in mainstream and specialist settings. That is 20% of the pupils in UK independent schools, which is slightly higher than the state school average. Independent schools help to provide additional value-adding capacity to SEND education.

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Bradley Thomas Portrait Bradley Thomas
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My right hon. Friend echoes the point that I made earlier that this is about not just a service that is provided but a key segment of the UK economy that bolsters the value of UK plc and UK GDP.

Rachael Maskell Portrait Rachael Maskell
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Will the hon. Member give way?

Bradley Thomas Portrait Bradley Thomas
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I will not; I will make progress. Labour committed in the House of Commons in 2023 that armed forces families need not be concerned about proposals to charge VAT. With the current retention crisis in the armed forces, and the current volatile state of world affairs, the Government need to confirm what impact analysis has been carried out on the effect of taxing education on military personnel.

We then get into issues around the implementation of the policy. Implementation in January will put pressure on local authorities to find rare and academically disruptive in-year placements. Those will be difficult, as state schools will be full and many will be oversubscribed, with areas that have a high number of pupils attending independent schools having some of the busiest state schools.

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Jerome Mayhew Portrait Jerome Mayhew (Broadland and Fakenham) (Con)
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We have been told by the Government that the rationale for this policy is not class hatred or class warfare; it is a revenue-generation mechanism for state schools. It is a sort of novel, hypothecated tax: education has always been tax free in this country and, in fact, around the world. Even going back to the last flowering of Labour’s socialism in the 1970s, when there was beer and sandwiches in No. 10, there was no suggestion that we should take socialism into the classroom in the way that this Government are.

If tax take is in fact the rationale, where is the impact assessment? How much will actually be raised by this policy, and what costs will be associated with its implementation? We have already heard that some 10,000 students have left the private sector and are going into the state sector just this September. What impact will there be on the education of those children?

On Friday I went to see a local headmaster at a private school in my constituency—the only one that I am aware of. At this stage, I should register my interest: I have one child at a fee-paying school. The headmaster said that there are primary schools locally that are totally full and there is no space for those children leaving the private sector to go into local primary education. Where is the impact assessment on SEND children? Some 34% of the intake of that private school are pupils with special educational needs. Partly because of the delay in the EHCP process, will they be penalised? What happens when they get taken out of their educational setting and put into a new school with new friends, or a lack of them? What will be the impact on their personal education? What will be the impact on SEND provision in the county of Norfolk?

Rachael Maskell Portrait Rachael Maskell
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I am grateful to the hon. Member for giving way. I have always had great concern about segregation in our education system, but parents in York say that due to the different pedagogy environment and culture, certain independent schools provide the only way that their children with SEN, anxiety or care experience can currently access education. It is through necessity, not choice. Does he agree that the Government should publish an impact assessment not only for this, but for the Budget, so that we can assess the full analysis of this policy?

Jerome Mayhew Portrait Jerome Mayhew
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I am grateful to the hon. Lady, and I am sorry that she waited so long to intervene. I quite agree with the point that she makes. We need to have an impact assessment on another issue, which is the provision of boarding facilities for children in care, which again are provided in my constituency. The school provides full boarding for not just children in care, but the boarding pathway programme put forward by Norfolk county council for children on the edge of care. Their education is the single point of continuity in their lives, and this policy has a real risk of reducing that support and removing them from their school and their friends halfway through an educational year.

What assessment have the Government undertaken before the Budget on these policies and their costs, and what mitigation will they put in place? We have already heard about the impact on military families. Is it right to target the children of our servicemen for this hypothecated tax? Was targeting poor pensioners not enough for this Government?

Oral Answers to Questions

Rachael Maskell Excerpts
Tuesday 3rd September 2024

(10 months ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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Can I remind everybody that this is topical questions? I have a big list to get through. Rachael Maskell will give us a good example.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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T4. In York, the average rent rise of 11.9% exceeded the state pension rise by £380 this year. With the loss of the cost of living payments and winter fuel payments, and the increase in the energy price cap and cost of living, pensioners are frightened about how they are going to keep warm this winter, as am I. In changing the eligibility for the winter fuel payment, how will my right hon. Friend protect pensioners above the pension credit threshold to prevent cold, ill health or worse this winter?

Rachel Reeves Portrait Rachel Reeves
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The basic state pension is worth £900 more than it was a year ago, and will go up again in April next year because of the triple lock, which we have committed to for the duration of this Parliament. We have already written to York council and are working with local authorities across the country to boost take-up of pension credit, because this Government, unlike the last Government, are determined to ensure that 800,000 people entitled to pension credit actually receive it.

Public Spending: Inheritance

Rachael Maskell Excerpts
Monday 29th July 2024

(11 months, 1 week ago)

Commons Chamber
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Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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Thank you, Madam Deputy Speaker, and welcome to your place.

I thank my right hon. Friend for her forensic approach to the nation’s finances. As she digs deeper, she will see that York, the city I represent, is at the bottom of many of the matrices for the funding formulas. Will she look at the funding formulas before the Budget so that we can see the distribution of funding? The last Government handed out, for pet projects, much of the money that she is trying to get control of now, but will she look at how that is distributed across the country?

Rachel Reeves Portrait Rachel Reeves
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I know, particularly around flood defences, that there are many great needs in the York constituency that my hon. Friend represents. These decisions will all be made at the time of the spending review.

Hospitality Sector: Fiscal Support

Rachael Maskell Excerpts
Wednesday 31st January 2024

(1 year, 5 months ago)

Westminster Hall
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Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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It is a pleasure to serve under your chairmanship, Ms Bardell. The hospitality sector is at the sharp end of all market sensitivities and feels every economic challenge acutely. Although it is used to seasonal highs and lows, when covid hit, the sector’s resilience became dependent on intervention. Whether businesses were supplying food, drink or accommodation or operating as a wider part of the tourism sector, the covid and post-covid shocks served their blows on hospitality. There are also the issues of the cost of living—whether that is seen through reduced customer disposable income or increased energy costs—and diversion of shipping in the middle east; each part has a story to tell about the sector.

Indeed, Brexit produced serious challenges in labour supply, and the new visa rules are also creating pressure. Last year, 8,500 visas were provided for the sector, and that is not to mention the dependants who come with health workers and so on, and the students; that also takes its toll. I ask the Government to think again. Although I welcome higher income and a rise in the minimum wage to address the wage disparity in this sector, we must recognise that it needs cushioning and that the sector needs support.

In York, we face the additional challenge of flooding. The floods have an impact. There is usually poor reporting describing York as being like Venice, but I can assure everyone that York is open and functioning. Today, because of the resilience measures that have been put in place, only a small cluster of hospitality outlets are impacted by flooding. However, they have received no business rate suspension—they must receive that, and I ask the Minister to look at that issue—and the Bellwin scheme cannot be triggered for a small area. Those businesses have costs associated with flooding, so that needs to be addressed.

Turning to other fiscal challenges and solutions, we would welcome a reform of business rates. I have long debated in this place how disadvantage and disincentives impact on the sector. Frankly, the Government have demonstrated a sticking-plaster approach during my time here. I am glad that Labour is listening and that it will bring in reform of business rates, but I plead that it puts those reforms in its manifesto so that everyone can be clear about that.

The hospitality sector and other businesses in York have talked about a profit-related tax to make it a fairer system in the long term; I urge the Minister to look at that.

The sector’s turnover in York is worth £1.16 billion annually and is ranked 16th highest in the country. For a relatively small, concentrated area it employs 16,500 people across 1,283 venues to date. However, there is a 5.4% vacancy rate—484 jobs—so we need to consider the impact that is having on the sector’s ability to stay open full time and welcome people into their establishments. I recognise how York has weathered this stormy time and I recognise its resilience. People enjoy coming to the incredible city of York and taking advantage of the offer that we have, but that should not be taken for granted. Ensuring that resilience measures and fiscal reforms are put in place is important for the long term for the hospitality sector in York.

I note that the overseas sponsorship programme has offset some of the vacancy issues, not least for chefs, and we need to ensure that the labour shortages are tackled. I ask the Government to look again at the impact that withdrawing from such schemes will have.

A focus of my work looks at how we can increase the family offer in York. We really need to broaden the base of people wanting to come and use our city for a broader interest. I certainly welcome those interested in talking about the family coming to York because that will also build greater resilience for the longer term.

I know that the Minister understands the sector well, given his previous roles. Indeed, he could come on a whistlestop tour round the city with me. I urge him, as we come up to the next fiscal event, to allow an extension, a quick win, on the covid loans. Businesses could make further investment to grow their businesses if they could pay their loans back over a longer period. That would be a quick and easy win for the Government.

On VAT, I concur with the remarks made earlier. Hospitality Association York has also made the case to me that a drop in VAT would very much assist the sector and provide an economic stimulus. We all want to see that benefit passed on to consumers and customers who use the sector. I want the work that Hospitality Association York is doing in growing the skills and talents in the sector and building for the long term to be recognised and supported.

Finally, as York becomes a world heritage site and York Central is developed for the future, we have great opportunities for investment beyond the walls as well. Up in Acomb we see many independent businesses now providing great opportunities. Right now we are in the heart of the most challenging season for our sector. Despite the ice trail coming up this weekend, the Viking festival over the half-term period and the residents’ festival that we have just had, we need action from the Treasury to ensure that the hospitality sector is sustainable now and in future.

Hannah Bardell Portrait Hannah Bardell (in the Chair)
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Before I call the next speaker, I ask Members to stick to five-minute speeches because I want to try to call everybody and give equality to all.

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Nigel Huddleston Portrait Nigel Huddleston
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All I can say to the hon. Gentleman is that we are listening. Some measures are being put in place that local authorities will have powers to implement, but I understand that a lot of people are not happy with the situation. I completely understand the challenges at a local level, particularly when it comes to employment and the unaffordable cost of housing in many parts of the country, as many Members have mentioned.

Rachael Maskell Portrait Rachael Maskell
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In my speech I mentioned the extension of covid loans for businesses that have those loans. What is the Treasury’s view on extending them so that investment can be made in those businesses elsewhere?

Nigel Huddleston Portrait Nigel Huddleston
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I cannot comment on any further changes, but there has been some flexibility with covid loans, as we have announced. This is important. Of course, we want those covid loans to be paid back, but that needs to be done over a period of time that is sustainable for businesses. This is in the context of the overall support, including the comments that I made about business rates relief and other things for the retail, hospitality and leisure sector. We are aware that the sector was hit so hard by the pandemic and is still in the process of recovering—it is recovering remarkably strongly, but it is not out of the danger zone yet.

Oral Answers to Questions

Rachael Maskell Excerpts
Tuesday 19th December 2023

(1 year, 6 months ago)

Commons Chamber
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Jeremy Hunt Portrait Jeremy Hunt
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As I go to carol services over the festive period, I will make sure that I am suitably inspired by what the three wise men brought to the crib. I can tell my hon. Friend that I am actually visiting our gold reserves this week, so I will see at first hand just how important they are.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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Right now, council leaders up and down the country are having to make very difficult decisions on cutting vital services—not because of profligacy, but because of Government cuts to their funding. What steps is the Chancellor taking to ensure that local authorities—such as that in York, which is the lowest-funded area—are adequately funded?

Laura Trott Portrait Laura Trott
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The hon. Lady will have heard my answer to a previous question where I stated that we have put billions of pounds of extra money into local government this year to cover pressures. We recognise that those pressures are real, which is why the provisional settlement proposes an above-inflation rise for next year.