Public Sector Pay

Rachael Maskell Excerpts

Tuesday 24th July 2018 Commons Chamber

[Elizabeth Truss]

As usual, the money for this pay will be allocated through the Barnett formula, but the money is coming from the central DFE budget.

[Rachael Maskell (York Central) (Lab/Co-op)]

How exactly will further education colleges be able to give their staff an uplift?

[Elizabeth Truss]

The hon. Lady will understand that we are conducting a review of further and higher education, and that is among the issues that we will be looking at.

A120 Dualling

Rachael Maskell Excerpts

Tuesday 19th June 2018 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under you as Chair, Mr Hollobone. I thank all hon. Members for their considered contributions to this important debate, and not least the hon. Member for Braintree (James Cleverly) for initiating it. I think we can agree that the case made by all hon. Members was very compelling. The link between the port and airport serving Essex is at the heart of the economic strategy presented today. The economic opportunity that such an enterprise corridor could deliver, in terms of real growth in the region, has been cited by some to be worth as much as £1.3 billion, I have read, and all for a cost of £555 million in its creation. It is clear that domiciliary development is occurring, and that brings an opportunity to see industrial investment to provide jobs for those communities as well as the wider economy. Clearly, where such development takes place, there has to be well developed transport infrastructure, but that certainly is not currently the case, especially at some of the pinch points on the A120 route where there is significant congestion.

[Giles Watling]

Does the hon. Lady agree that it is not only industrial development—manufacturing and so on—that would benefit from this scheme and that there is a massive tourism offer? I am thinking of the wonderful beaches of the east coast. At Parkeston Quay, we have so many cruise ships that come in every year. It is a pity that the people who arrive there have to struggle with our dreadful infrastructure to get to other parts of the country such as London and across to the central midlands.

[Rachael Maskell]

I agree that tourism is a really important consideration when we are looking at infrastructure investment. It should be at the heart of the wider discussions and seen as an economic piece all by itself.

The debate on how the A120 can be improved to alleviate much of the congestion has been a long time coming. Five options were originally presented. I appreciate that those have been whittled down to four, and option D has been favoured by Essex County Council as the preferred route for the new A120. I also note that option C, interestingly, would see approximately one third of the route bifurcating Bradwell quarry and therefore would relieve some of the environmental impact should that scheme go ahead. We must also note the importance of farmland and agribusiness. In the Government’s planning of development, whether rail or road, they should take on board the need to ensure fertile land is maintained for the purposes of growing our food. I know there is much debate on that point.

The second compelling case made by the right hon. Member for Witham (Priti Patel) was about road safety. With 53 fatalities and 325 serious injuries on this stretch, it is clear that not intervening would allow those risks to continue. That is a serious consideration.

It is worth saying, however, that we cannot look at road improvement without looking at intermodal and alternative modes of transport, and seeing the improvements that can be brought in from other schemes—particularly our rail, but also other forms of transport—in serving communities. While I understand that all hon. Members are trying to promote their local scheme for RIS2, I say to the Minister that we need to look at intermodal options before we look at road. It appears we have shifted to a road-first policy, as opposed to looking at public transport as the preferred option. Evidence from Newbury, Blackburn, Lincoln and other similar cases has shown how induced capacity is having a serious impact on their local economies, so we have to be careful as we make these decisions and look at them in an integrated-transport way.

[James Cartlidge]

Looking at alternative modes is a fair point, which I hear about all the time. The issue we have is lorries. In our modern economy, all our goods have to go through lorries, from Felixstowe or whatever port. It is coming down on HGVs. It is very hard to get that on to rail when it is at capacity, even though we have a good freight service. Does the hon. Lady agree that that is where there is a shortcoming in alternative forms of transport?

[Rachael Maskell]

I agree, there is a challenge with the use of freight. It creates an opportunity, however, to put the focus back on putting freight on to rail. We are already 45,000 lorry drivers short in our economy. How we expand rail freight, therefore, is a serious consideration, in order to see that fast through-put of freight. That is something to which we have given much thought and attention.

Where there have been road-widening schemes, after 20 years we have seen induced capacity building congestion again, with an increase as high as 45%. Out of 25 projects only five have delivered the economic benefits that were promised. We need to ensure that everything is thoroughly tested before investment is made.

[Will Quince]

I apologise for the slight delay in jumping to my feet, but I was a little surprised by what I think the hon. Lady might have said. Did she say that under a future Labour Government, the A120 development would not go ahead?

[Rachael Maskell]

I most definitely did not say that. The hon. Gentleman must have misheard me. I emphasised the focus we need to put on intermodal transport in particular, looking at issues such as increasing capacity on our rail networks, because we know other serious challenges are afoot across our freight industry. It is important we take those considerations on board.

[Vicky Ford]

I have campaigned for rail freight for many years. Is the hon. Lady aware that Chelmsford is the busiest two-platform train station in the country and there simply is not additional space to take additional freight down the great eastern main line in the timeframe involved? Digital networks may add a bit more, but we need to resolve the freight by mending this road and our road networks, not just by saying, “Let’s get it on the trains.”

--- Later in debate ---

[Rachael Maskell]

There are choices to be made. I am saying that we invest either in road or in rail. Looking at investment is part of what is called for by the freight industry.

[Several hon. Members rose—]

[Rachael Maskell]

If I may, I will finish my point. The Rail Freight Group, which I meet with regularly, has identified how those east-west connections need serious investment. If we want to develop Harwich as a port and see Felixstowe thrive as well, in order to take freight from the east into the west, it is important that we do not dismiss those opportunities and see that proper investment.

[Will Quince]

The hon. Lady is being gracious in giving way. It is not a binary choice between rail and road. We can and must have investment in both. She said that intermodal schemes should be a priority over roads. This is not an intermodal scheme. Therefore, is she saying that the Labour party would not prioritise the dualling of the A120?

[Rachael Maskell]

I have already answered the hon. Gentleman. I said that we would have an intermodal approach to all transport systems. It is crucial that we look at the opportunity that public transport can provide.

[Vicky Ford]

Will the hon. Lady give way?

[Rachael Maskell]

If I may move on a little, we will see what time there is left. It is important that our approach to strategically developing economic growth, transport planning and housing development brings all development and planning together. We have seen a piecemeal approach to planning, which has not looked at how to serve economic or residential communities and ensure that there are sufficient transport mechanisms to provide that support. We believe that truly sustainable economic and residential hubs need to work together with the integrated transport system in order to best serve communities. We know that in the developments that have taken place, 81% of people living in those areas drive to work, as opposed to having wider options and intermodal choices. That is what I am arguing today.

[Vicky Ford]

The hon. Lady said the Labour party would invest in either rail or road. This Government are committed to investing in both. Which is she planning to cut?

[Rachael Maskell]

The hon. Lady is again taking my words and not using them in the way they were said. We will look at intermodal first and at the wider options of ensuring properly integrated transport. Any Government should do that, to ensure that we have the most sustainable and usable rail, bus, active travel and road system that there is. Intermodal integration will give us the best transportation system. Talk to anyone across the transport sector: they would agree with that approach, as do many Government Ministers, who say that they want to see an intermodal shift, too. I have heard such words many times from the Government. I am sure they would agree that is also important, if they are looking at proper economic and residential investment, such as is being suggested by the scheme presented today. That is the approach Labour would take.

We need to ensure that improvements made today do not call for further improvements and widening just a few years down the road, as has happened in many of these schemes. We need long-term solutions and investment put in place, to ensure there is not chaos in the future.

[Giles Watling]

The hon. Lady is being gracious in giving way. Is she suggesting that people would give up taking their cars to their holiday destination? That is an essential part, in many cases, of a holiday in the UK, so that people can explore the countryside.

[Rachael Maskell]

I am not suggesting that at all. I am talking about intermodal choice, which is important. Going forward, people need to have real options in how they travel, whether for work or leisure. We want to see those choices expanded. Many people at the moment, as I highlighted, have such limited choices that they have no option but to use the car. If we truly are to make the intermodal shift, we need to see more options being made available for commuters and people travelling for leisure.

[James Cleverly]

Unfortunately, the hon. Lady has missed quite a fundamental point and I will reinforce it, if not for her benefit then for the ears of the Minister. This proposal is not about taking existing transport patterns and just making them happen on an improved road. What this proposal is about is unlocking residential and employment opportunities within the region, so that people are not forced to drive or take the train to London, for example, to get good-quality work. So the idea behind this proposal is to develop sustainable communities and sustainable economic activities in and around the region itself, reducing the need for long and polluting journeys, and increasing the opportunities for people to work close to where they live, where their children go to school and where they have amenities around them.

[Rachael Maskell]

I fully understand the scheme; I have read it in much detail. That is why I am making the case that it is so important that we give people real choice.

In my closing remarks—

[Sir Bernard Jenkin]

Will the hon. Lady give way very briefly?

[Rachael Maskell]

Very briefly, then.

[Sir Bernard Jenkin]

I am extremely grateful to the hon. Lady. Will she just give an assurance that the Labour party supports the dualling of the A120 all the way from Colchester to Parkeston, which is a stretch of road that is long overdue for dualling?

[Rachael Maskell]

I think I have made myself perfectly clear in today’s debate, with all due respect. What I have said is that we believe that we should have a fully integrated, intermodal approach to transportation, which, as I have—

[James Cartlidge]

Yes or no?

--- Later in debate ---

[Rachael Maskell]

I will not take the hon. Gentleman’s intervention. [Interruption.] No, it is not a no.

As I have said—

[Vicky Ford]

It is not a yes.

[Rachael Maskell]

As I have said in this debate, we need to look at that intermodal option and that has not been presented in the case that I have read. Clearly, we need to see investment across all our modes of transport, so that hon. Members’ constituents have real choice over how they travel and so they do not have to take the car if it is their preference to take a bus or train. That is what I am saying. We have got to see integrated—

[James Cartlidge]

Will the hon. Lady give way?

[Rachael Maskell]

May I finish my sentence? So that we can see an integrated approach to how we assess transport projects in the future, rather than looking at the silos of rail over here, and road over there, which is the approach taken at the moment, as we know, because the RIS process is completely segregated from the control period, and we want to see a real integrated approach. That is the point that I have made throughout the debate.

[James Cartlidge]

rose—

[Will Quince]

Will the hon. Lady give way again? She has been very kind.

[Rachael Maskell]

I see two hon. Members. If it is going to be a completely different point that will be made—[Interruption.] If it is not a completely different point, I will not give way. I will not keep repeating what I have said, so I will just bring my remarks to a close.

It is really important that we consider how we can build sustainability into the long-term future. That is why we want to put the resources and support behind a truly intermodal approach to transportation, but not just transportation in isolation. We want to integrate that across all planning, including economic and residential planning, so that all of our constituents have real choice as to how they travel to work and for leisure.

Business Rates

Rachael Maskell Excerpts

Wednesday 13th June 2018 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

I beg to move,

That this House has considered a review of the business rates system.

Thank you, Mr Gray, for being in the Chair for this important and timely debate.

Almost every day, we learn of a chain of retail stores or local businesses closing its doors, resulting in job losses, people’s lives being thrown into turmoil and empty premises along our high streets. The Centre for Retail Research has said that 10,000 stores will close this year alone, amounting to 384,000 jobs that are forecast to be lost over the next four years—unless, of course, the Government take urgent action now.

Businesses face many challenges at this time, not least the cost of property rental, and that leads into the issue of business rates. I would like those issues be addressed in today’s debate and I look forward to hearing the Minister’s response, because it is time for action to rescue businesses from the current crisis.

Front Street in Acomb once bustled with an array of independent stores serving the west of York. Those premises are now being exploited by foreign investors who are charging extortionate rents, which in turn is driving up the rentable property value, and thus business rates. Today, empty units line the street. York’s city centre is following suit, as are towns and cities up and down the country. This cannot continue to drag on.

The ever-inflation-busting rental levels have over-inflated the local property market. That is exacerbated by the empty property tax loopholes, resulting in units being left dormant, further blighting our beleaguered high streets and letting the owners of those properties off the hook.

The Valuation Office Agency has made its calculations based on this overheated market and set excruciatingly high business rates, as determined by the Government. When I hold business meetings across York, everyone feels that they have been failed by the business rates system, and as the situation gets worse, they want to know why the Government are forever providing sticking plasters when major surgery is required.

In York, where the retail sector accounts for 13% of employment, the toll is being felt. However, it is not only the retail sector that is affected. The hospitality sector employs 2.9 million people across the UK and although it pays 10% of all business rates, the sector’s share of turnover is just 3%—as the sector puts it, it has made an overpayment of £1.8 billion.

Other businesses are also being impacted. In the last couple of years, I have witnessed major employers—employers employing hundreds of people—leaving the city of York, citing excessive business rates as the root of their decision, and moving to areas with lower business rates. The 2015 valuation took a particular toll on businesses in York. We have had increases as high as 600% for pubs and retail outlets, including a bicycle shop in the city. Our city centre is changing dramatically, with the loss of national chains. High rental rates and business rates are to blame.

[Ruth George (High Peak) (Lab)]

My hon. Friend is making an excellent speech setting out the key concerns for retailers and other businesses. Does she agree that the average £3,600 increase in rates for small shops over the next five years is contributing to the demise of high streets up and down the country?

[Rachael Maskell]

My hon. Friend makes an excellent point, because it is the small retailers that are really struggling to survive, and it is an issue of survival in the current age. Of course, business rates are at the heart of the decision by businesses as to whether to remain open or close.

Other organisations have been brought to my attention that are even worse affected than those with the 600% increases I have cited. For instance, there are organisations that have had rooftop solar panels installed and then seen their business rates rise by as much as 800%, and all for doing the right thing. The Valuation Office Agency is discussing similar measures for battery storage, all at a time when green energy and microgeneration should be promoted; instead, people are being deterred from doing their bit for the environment.

Let us remind ourselves that business rates are set by multiplying the valuation rate—that valuation rate is based on the market rental value, as if the property was being placed on the open market—by a multiplier set by Government. In England, that is 49.3p, or 48p for small businesses. It cannot be raised by more than the rate of the retail prices index, or the consumer prices index from this year.

There are certain relief schemes in place, three tiers of arrangements to reduce the burden on small businesses, and an array of different arrangements for charities, rural businesses and community sports clubs. Last April, temporary relief was also introduced, with an additional relief fund of £300 million, which was to be shared between local authorities around the country over four years. Pubs with a rateable value above £100,000 were given relief at a flat rate of £1,000, which is subject to current state aid rules. I would like the Minister to examine that specific issue. There are also relief schemes for fibre infrastructure, local newspapers and empty properties.

York received £788,000, but the local council’s governance of the money provided by that fund has been extremely poor. It started with an application process in May to provide grants to businesses that were struggling and that could guarantee—that is, guarantee—they would be sustainable. However, because businesses were unable to give such an assurance, they were unable to apply. In December, the council therefore changed its mind. All businesses with premises that have a rateable value under £200,000 and that had experienced a business rates increase of over 12.5%—except for national chains and local government premises—automatically received a discount, meaning that the council did not even consider hardship issues; the discount was an automatic entitlement. The Government should have provided far better guidance for councils that were handing out taxpayers’ money; the councils really did not have the understanding of what was required of them to support businesses.

This year, York will receive £383,000; next year, it will receive £158,000 and the following year just £23,000. That tapering leaves businesses in an incredibly vulnerable position, without any long-term solutions being provided by the Government. Businesses are crying out for such solutions.

York is not unique, but it does provide the Government with an excellent case study as to why the business rates system is failing. I will provide some examples of the systematic problems that my city is facing.

Retailers in high-value rental areas pay the highest rates, whereas companies selling goods on the internet from warehouses in low-value rental areas pay the lowest. For example, Amazon is the largest retail business in the UK, with a warehouse of 65,000 square feet outside York. In York, Amazon pays £1.4 million in rates. Marks & Spencer in York city centre is seven times smaller in size, but it still pays £500,000 in business rates, or about a third of the amount that Amazon pays.

The smallest stores pay the most. For example, in York city centre small shops pay up to £950 per square metre, whereas larger companies benefit from a special larger store rate of £110 per square metre. If all companies in York paid the same as small businesses in York, Marks & Spencer would have a rateable value of £9 million and Amazon would have a rateable value of £61 million. Across the sector, the perception has grown that the Valuation Office Agency gives large companies favourable treatment to avoid lengthy and costly disputes, and clearly small businesses are suffering.

[Bill Esterson (Sefton Central) (Lab)]

The comparison between what is paid by large out-of-town and online retailers and what is paid on high streets is extremely well drawn. Does my hon. Friend agree that the problem is that unless something is done—and it can only be done by the Government—to create a fairer business taxation system to even up the situation between online and out-of-town retailers on the one hand and the high street on the other, high streets and their communities will continue to suffer, and anybody who works in those areas, and their families, will be put under pressure? This issue has to be dealt with urgently, and the Government must intervene to address the problems of unfair business taxation.

[Rachael Maskell]

The point my hon. Friend raises is the point of this debate. The reality is that we are talking often about independent business in which families have invested, maybe for generations, building it up and building a reputation, only to find that the competition from online sales and out-of-town stores is challenging. In addition, such businesses then have the weight and burden of business rates to pay on top of high rental values for their properties. The sums simply do not add up, and it is driving them out of town.

That situation is why we are seeing so many closure notices on shops. Some shops have been part of communities for decades and are sadly no longer there. That is certainly true of York. Our communities are losing their identity as a result and that is changing what happens in our town and city centres. I could relate so many stories from York of how independent shops have disappeared to be replaced by vertical drinking establishments and other such premises. That changes the whole context of our city. It is vital that we get on top of the business rates issue.

We have to recognise that businesses are penalised when they try to do the right thing, as equipment adds to the rateable value of business premises. Companies are penalised for making improvements to their businesses. Labour’s manifesto promised to exclude all new investment in plant and machinery from future business rates to encourage investment. We want to see employers investing in the future of their business, but they are deterred. If that investment would put up their rateable value, why take those steps when they are already struggling?

[Ruth George]

Businesses often have to invest in CCTV because of rising crime rates. In doing so, they can help the police by providing footage to help catch offenders, but they are then penalised for doing the right thing and helping tackle crime when their business rates increase due to that investment. Does my hon. Friend agree that that is an anomaly that must be looked at?

[Rachael Maskell]

My hon. Friend makes an excellent point. When people try to improve their community, and not just the business itself, that increases the rateable value. Business rates are built on that premise. In York, a company installed air conditioning. That might seem an obvious thing for a business to do, but doing so increased the rateable value by £275. That business now sees air conditioning as a negative, rather than a positive for itself, its staff and the public.

We have to be honest: business rates are an extremely antiquated system that is not fit for purpose in our globalised digital age. The UK now has the highest level of online shopping in the world, and it is essential that the duty that is paid catches up with that reality. We know that online shopping is increasing because when we go to our high streets, the stores that shoppers want to engage with are no longer there. There are also the wider trends we see across the world.

We need to ensure that we invest back into our city centres to revitalise them and ensure that they keep their identity. That is especially important for a city such as York, which has such a great heritage and attracts 7 million people a year. We want to ensure that people continue to come to our city not only for all the wonderful attractions, but to utilise the vibrant shopping area it once was.

Last April, following the revaluation, the average small shop was hit with an extra £3,663 in rates over the next five years, while many large online retailers saw their rates fall. Large supermarket chains saw a 5.9% reduction in their rateable value. There is huge inequality within the retail sector. Pubs are also being put at risk. They pay 2.8% of the total rates bill, yet contribute only 0.5% of the rate-paying business turnover—an overpayment relative to turnover of £500 million. That figure will increase by 17% by 2021-22.

It has been cited that the transitional relief scheme has been of detriment to some businesses. For instance, House of Fraser saw a 10% rise in business rates last year. As has just been announced, it is looking to close 31 stores, of which 28 have been negatively impacted by the relief scheme. It is clear that huge inequality has grown with the advent of large out-of-town retail centres and the online industry. The business rates system simply does not work in the modern age.

Reform has been called for, not least by the Business, Innovation and Skills Committee, as was, which in 2014 recommended changes to the business rates system. The Committee called that system

“a significant barrier to innovation.”

It recommended a Government review of the system to examine the questions

“whether retail taxes should be based on sales, rather than property; whether the retail sector should have its own form of taxation, calculated in a different way from other businesses; and how frequently the revaluation of Business Rates should take place.”

Since those recommendations were made, York Retail Forum has not been idle. It has carried out a thorough piece of work to look into the alternatives, and it has concluded that the best way forward for its businesses is to have a turnover tax. The Centre for Retail Research has come to the same conclusion. Clearly, if that formula were to be adopted, there would need to be tapering to address businesses with a high turnover but low profits, such as small convenience stores.

Local entrepreneur Phil Pinder, who chairs York Retail Forum, has looked at the figures. When just a 1% levy is placed on all online and high street businesses, the resultant revenue exceeds the current total raised by business rates. Governments gain, small businesses gain, local economies gain, high streets are revitalised, and tax-dodging multinationals such as Amazon have to pay up. While the benefits for Government would be the same, introducing a turnover tax would be like handing thousands of pounds to small businesses and would help them to invest in developing their businesses and employing more staff.

Equally, a profit-based levy would provide for a fair system: the more profit, the more a business would pay proportionately. That is favoured by many businesses, as they believe that nothing could be more equitable, and certain exemptions would not be required. With either model, there could be some tapering, so that those with the greatest returns paid more and those with the least paid less. Social interventions could be made—for instance, some relief for those who invest in microgeneration of energy. There is scope to use the system to drive forward our future economies. Either way, we need to find a new way to bring in revenue from businesses to replace the business rates system—perhaps through another non-domiciliary, property-dependent levy. Whichever system is used, it would clearly be a lot easier to operate, to collect revenue and to reinvest in communities and business growth.

One other point that I must raise in today’s debate is that the Valuation Office Agency is not fit for purpose. It has lost staff; its IT systems are creaking; its programme capability is questionable, having failed businesses; its “check, challenge, appeal” system is not thorough in responding to the grievances of businesses; and its time delays are causing more difficulty for businesses that are already struggling.

That brings me to my key point: the Government have prevaricated for far too long over business rates, and we have on our hands a serious crisis on our high streets. Last year, in the light of the business rates crisis, many of us in Parliament gathered momentum to call for change. On 8 March 2017, a business rates review was announced by the Chancellor. Since then, I have continually asked questions about when that review will begin, and have been passed from pillar to post—from the Ministry of Housing, Communities and Local Government to the Department for Business, Energy and Industrial Strategy, and from there to the Treasury. That resulted in my having to raise a point of order with the Speaker to identify who was responsible for what, and even then, discussion ensued on the Government Benches.

Businesses are saying that they cannot wait any longer, and the daily announcements of closures testify that that is the case. The Government have to get on and start their major review of a new business levy. In introducing today’s debate, I am calling time on this broken system on behalf of businesses in my city and up and down the country, and asking the Minister to carry out the following with immediate effect.

First, I ask the Minister to open a complete review of a new business levy system to report in the autumn, with recommendations being made in time to be implemented in this year’s Budget. Secondly, I ask him to open the consultation to all businesses across the economy and to commence the review before the summer. Thirdly, I ask him to identify some case studies to gain an in-depth understanding of why the current system is failing. I suggest York would be a good case study for the Minister to look at, and I am sure other colleagues would be helpful in advising why their communities would provide good examples too.

Fourthly, I ask the Minister to look at the offshore rental market and its impact on our high streets and businesses, and at the extortionate rents that people have to pay. There is often no connection between the local community and the offshore business entrepreneurs who seek to reap as much revenue as they possibly can, at the expense of the high street. We need reparation there, too, because that feeds into the business rates crisis that we see today.

There is an existential crisis on our high streets as they are drained of the vital enterprises that give life and character to our communities. There is no scope for further delay. I urge the Government to bring a laser focus to this issue, and I call on the Minister to act. I trust that he will be willing to meet me and other hon. Members to help move the issue forward for the sake of our communities. There needs to be a radical reform of the system. The Chancellor said it was his desire to move away from a bricks and mortar-based system. The review was promised in the Conservative manifesto, as well as in ours, so progress should not be delayed. Time is running out.

I trust that the Minister will respond clearly to the matters I have raised and tell us what actions he will take to secure a new business levy system that is in place in time for an announcement in the autumn Budget.

--- Later in debate ---

[Rachael Maskell]

My constituents will be very disappointed by the Minister’s response, because he did not respond to the specific questions I raised. We have a broken business rates system. The fact that the system takes only £30 billion but requires £9 billion of relief is in itself evidence that it is broken and in need of urgent repair. In the light of the many cases that hon. Members have raised, the Treasury needs to pay greater attention to this issue.

Motion lapsed (Standing Order No. 10(6)).

Laser Misuse (Vehicles) Bill [Lords]

Rachael Maskell Excerpts

3rd reading: House of Commons & Committee: 1st sitting: House of Commons
Monday 30th April 2018 Commons Chamber

[Rachael Maskell (York Central) (Lab/Co-op)]

The Bill has been much improved by the persistence of our Labour colleagues in the other place.

I am sure that the whole House would want to join me in sending condolences to my hon. Friend the Member for Kingston upon Hull East (Karl Turner). He had been leading for the Opposition on the Bill, but he has just lost his father, the distinguished Hull city councillor Ken Turner. Our thoughts and prayers are with him and his family today.

As no amendments were tabled, I shall highlight a few points in the Bill itself. It is a short Bill, consisting of two substantive and two procedural clauses. Clause 1 makes it an offence to direct or shine a laser beam towards a vehicle or a person in charge of a vehicle in such a way as to dazzle or distract the person driving, piloting, navigating or otherwise in control of the vehicle when it is moving or is ready to move. It results from an amendment tabled by Labour colleagues in the other place. There may be mitigating circumstances if it can be proved that the use of the laser was necessary in, for example, a rescue mission to attract attention of a pilot, or that the offence was committed by accident if the laser was being used professionally and all precautions had initially been taken to prevent an incident from occurring. The penalty will be imprisonment, an unlimited fine, or both. Advancing the deterrent sends a clear message that laser misuse will not be tolerated. It has also been clarified that a laser beam could be a pulsed or continuous light, and it is defined in clause 3. The definition of the modes of transport to which the Bill will apply has been extended, thanks to the work of my Labour colleagues in the other place.

The Bill is an important piece of health and safety legislation to safeguard those who operate modes of transport from the effect of laser misuse. Lasers are being used to shine lights into the eyes of drivers, causing, according to the British Airline Pilots Association, four progressive stages of seriousness—distraction, disruption, disorientation and even incapacitation—which may have a sustained impact and could result in fatal consequences for the driver, passengers, the public, or a combination of those people.

The issue of laser misuse was first drawn to the attention of authorities by the aviation industry, but the Bill also covers drivers or navigators in charge of helicopters. A number of incidents have been cited, not least by police helicopter pilots. There have also been incidents involving planes, trains, ships, hovercrafts, submarines and road vehicles. The Bill’s provisions extend to bicycles, motor scooters and horse-drawn carriages, as well as air traffic control.

Labour recognised the need for legislation that would build on the Air Navigation Order 2016, and along with the aviation industry and other transport operators, our Front Benchers have welcomed the Bill. It was our suggestion that such legislation could be introduced in the Vehicle Technology and Aviation Bill. We recognised the insufficient penalties resulting from the 2016 order and the very small number of prosecutions. The Bill will act as a far greater deterrent to laser misuse throughout the transport system. At this point I should mention the collaborative and cross-party work that has been done in both Houses—not least by the right hon. Member for South Holland and The Deepings (Mr Hayes), who is not present this evening.

The other place amended the Bill to ensure that it was comprehensive in addressing the misuse of lasers, and in particular I thank Lord Tunnicliffe of Bracknell for his contribution. We are also indebted to the UK Laser Working Group, whose expertise has informed this Bill at all stages.

The Bill, while recognising the legitimate use of lasers, will ensure that those in charge of a vehicle are not put at risk, thus putting other transport users at risk, too. In the last year, there have been more than 1,000 cases, a sharp rise over a very short period of time. While that has not led to any accidents to date, in safety-critical industries we will not allow such risks to propagate, which is why we are supporting the Bill on Third Reading today.

The BALPA membership survey stated that half its pilots reported having experienced a laser attack in the last 12 months—55% of pilots, I believe—and that 15% had experienced three or more laser attacks. It is therefore heartening that external stakeholders also support the Bill, and I thank BALPA for its work in this area and all those working in transport who have advocated such legislation.

I can testify to the intensity of light from lasers, as some young people in my constituency shone a laser at me when I was out on an estate last summer. Momentarily blinded, I sought to look away, but that brief experience brought home the dangers of such laser devices, and permanent eye damage can occur if there is exposure to such light.

May I take this opportunity to thank the Clerks for their assistance through the passage of the Bill, my hon. Friends in this place and colleagues in the other place for their participation in the various stages of the Bill, and external stakeholders who have worked with us to ensure that it receives a smooth passage through its final stages?

Clearly, we are disappointed that the Prime Minister called a general election before we had the opportunity to enact the Vehicle Technology and Aviation Bill, but, a year later, I am glad that we have been able to complete the Bill’s passage in this place today. It just goes to show what can be achieved when all parties remain laser-focused on acting in the best interests of the public.

I trust that the public will recognise the importance of the Bill and that this risk across the transport sector will be deterred. There is clearly still a debate to be had about the ownership and use of laser beams, as Public Health England advises, but that will be for another Bill on another day.

I close by thanking all those who work across the transport sector for the application of their skills in keeping the public safe and ensuring that the UK has the highest of standards in transport safety.

Customs and Borders

Rachael Maskell Excerpts

Thursday 26th April 2018 Commons Chamber

[Yvette Cooper]

They are, and it is perhaps unsurprising that they should do so, because businesses will make investments, they will take a precautionary approach, and they will look for the best way to protect their trade at a time of such huge uncertainty about what might happen to trade that we want to pass through the UK. We will see more and more of those consequences, therefore, particularly if we do not get answers and decisions soon.

[Rachael Maskell (York Central) (Lab/Co-op)]

Does my right hon. Friend agree that the biggest threat of all is the threat to jobs, as businesses are making their investments elsewhere in mainland Europe as opposed to the UK now, let alone in the future?

[Yvette Cooper]

I do, and I think this is also particularly about our manufacturing communities, and many of our towns across the country, where those jobs are so important.

Oral Answers to Questions

Rachael Maskell Excerpts

Tuesday 17th April 2018 Commons Chamber

[Mel Stride]

As I have just identified, the Government have done a huge amount to reduce the burden of business rates. We recognise the important fact that these taxes need to be paid, irrespective of whether businesses are profitable or otherwise. That is why we have gone to such lengths, providing £9 billion of relief in 2016, including transitional relief for those facing the largest potential increases in business rates, and a further £2.3 billion by way of bringing forward by two years the change in the indexation of business rates from retail prices index to consumer prices index, saving businesses £2.3 billion over the next few years.

[Rachael Maskell (York Central) (Lab/Co-op)]

Business rates are really hitting businesses in York, particularly in the retail sector. This is having a huge impact on our city. On 8 March 2017, the Chancellor promised this House a complete review of business rates, yet we have only seen sticking plasters from the Government. When will that review begin?

[Mel Stride]

The business rates review is being undertaken by the Ministry of Housing, Communities and Local Government.

Spring Statement

Rachael Maskell Excerpts

Tuesday 13th March 2018 Commons Chamber

[Mr Hammond]

I think that that would involve widening the scope of the intended consultation rather dramatically. I remind the House that, when I referred to this issue in the autumn Budget, I said that I was not minded to lower the VAT threshold because I recognise that, at its current level, it keeps a lot of small businesses out of the administrative burden of VAT. However, we are keen to ensure that the cliff-edge effect, which has a damaging impact on businesses that are trying to grow, should be addressed if it is possible to do so. The consultation will pursue those ideas.

[Rachael Maskell (York Central) (Lab/Co-op)]

There is a reason why we need to invest in our public services. In York, our schools have gone from being the seventh worst funded to the very worst funded authority, our NHS is in a capped expenditure process, and no social housing has been built. Should not the Chancellor invest in our children and in the sick, and provide homes for the homeless?

[Mr Hammond]

I am afraid that it is characteristic of the Opposition that they are able to see the world only through the lens of inputs—

[Rachael Maskell]

That is the reality!

[Mr Hammond]

The reality is that since 2010 we have increased the number of schools that are good or outstanding. That means that 90% of schools are now either good or outstanding, and that 1.9 million more children are being taught in good or outstanding schools. That is the metric that matters to parents and to children themselves in terms of their life chances. It is not always just about the money; it is also about the outcomes.

Public Sector Pay

Rachael Maskell Excerpts

Monday 4th December 2017 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

Thank you, Mr Hanson, for calling me to speak in this important debate.

We have seen the cost of living soar by 22%, with the increase in the cost of utilities, food and travel exceeding that, so at the same time the pay gap is getting bigger and inflation is on the move. At the Budget, this Government were left exposed as not having an answer for all our public sector workers who have endured pension cuts, down-banding and cuts to their allowances. As union head of health, I represented people who had seen their wages decrease by a third. That is the reality of our public sector today, and it is having an impact on recruitment and retention, as we have heard.

In York, house prices are 9.5 times higher, and that is what people need to save for, although totally unaffordable. People are leaving our NHS, which has to go to agencies to put in safe staffing levels. That has pushed our health service into debt and into the process of capping expenditure. The Secretary of State for Health says that hospitals will have to find the money, but where from? We need the Government to wake up to the reality of what is happening to our public services—not just the NHS, but right across the public sector. Our public sector workers are so professional despite the pressure they are under, that they deserve a pay increase. Today we hear from the Joseph Rowntree Foundation that 13.9 million people have been pushed into poverty in the sixth richest nation on this planet—that is a complete disgrace.

I want to highlight one or two of the issues that have not yet been raised in the debate. First, I will talk about inequality in our pay system. We know that there is vertical segregation on the grounds of race and gender. In 2013, during the pay restraint, I was completely shocked that the armed forces had an advance on their pay of 1.5%—I do not begrudge them that, but everyone else received 1%. The police and prison officers, too, have had an advance in their pay that has not been awarded elsewhere. I highlight the fact that those are male-dominated professions, while nurses, teachers and those in other women-dominated professions, as well as those not even covered by pay review bodies and also predominantly women, have had no such increases. That shows an inherent problem of gender discrimination in the Government’s pay policy. I also emphasise that those who receive the lowest pay are the worst off.

With Agenda for Change, the pay scale that covers the vast majority of NHS staff, I want to highlight the disparity of pay. Although a fair system was introduced to address real problems in the pay system, since 2004 someone in band 1, on point 2 of the pay scale, has received an increase of £3,525, while someone on point 54 has received a £21,910 increase. That shows the growing disparity in pay. We need to ensure that we do not just add percentage increases to pay, which benefit people at the top of the scale. That is why the trade unions have come together this year to put forward a pay claim that involves a linear increase to ensure that those worst off in the pay system also get a fair deal. That is such an important issue. We also need to address the growing inequality between the different nations of England, Wales, Scotland and, in particular, Northern Ireland which now has real problems in the pay system as money is not being paid out.

We must also look at redressing the situation so that a percentage increase is seen as separate from the incremental scale—that is one of the points I really want to dispel the myth on. We have heard how pay progression is being mistaken for a pay increase. Agenda for Change is absolutely clear that incremental pay progression for all pay points within each pay band will be conditional on individuals demonstrating that they have the requisite knowledge, skills and competencies for their role. Forty-six per cent. of staff are at the top of the band, which is the rate for the job, but people acquire skills and knowledge as they move to the top of the band, so that is not a pay increase—it is a mistake by the Government even to pretend that it is.

Finally, I want to say: do not mess with the terms and conditions. Those have already been played with so many times, and the kind of things that the Government have asked of staff—such as addressing unsocial hours payments—predominantly impact on women. Do not go there—staff do not want the Government to go there and will not let them take away those crucial elements of pay enhancement for people who work through the night so that they can pay for more expensive childcare. I want to say to the Government: “You have the money and the ability to raise that money—pay it!”

--- Later in debate ---

[Andrew Jones]

The hon. Gentleman asked whether the Government have done research on the size of the pay bill; I have just detailed the numbers. We are acutely aware of how public spending has an impact across the country. Any expenditure has an impact on the local economy as money recirculates, so of course that point is understood.

[Rachael Maskell]

Will the Minister give way?

[Andrew Jones]

I am being very generous, but I will give way to a fellow north Yorkshire Member.

[Rachael Maskell]

I am grateful; I am looking forward to hearing about the Government’s generosity, because I want to know how much the Treasury is expecting public sector workers to receive in the total package, or the total envelope. How much—the figure?

[Andrew Jones]

I will come on to the process ahead. Despite the difficult economic circumstances from 2010, the Government have continued to invest in our public servants. We are helping them, alongside all others, to keep more of their money by increasing the personal allowance. That is a significant change. In 2010, the personal allowance stood at £6,475, but in the Budget only a few days ago, the Chancellor announced that in April 2018, the allowance will rise to £11,850. That means that public sector workers on a basic rate of tax will be £1,075 a year better off compared with 2010.

--- Later in debate ---

[Andrew Jones]

I draw the hon. Lady’s attention to the interview given by the shadow Chancellor yesterday in which he said that public sector pay reviews were always subject to negotiation. Perhaps he needs to have a conversation internally first.

Before any decision on pay is made, there is indeed a well-established process for the consideration of pay across the public sector. For local government workers, pay awards are considered by the National Joint Council for Local Government Services. Firefighters have the corresponding National Joint Council for Local Authority Fire and Rescue Services. The vast majority of the remainder are people employed in workforces with an independent pay review body. As part of the process, Departments will shortly submit evidence to the corresponding pay review body for their workforces.

[Rachael Maskell]

I must correct the Minister on what he has just said. Pay review bodies make a recommendation to Government, and the Government then do or do not accept it. There is no negotiation process in place.

[Andrew Jones]

I accept that—I was actually quoting the shadow Chancellor. Let me press on. The pay review bodies will consider evidence from stakeholders, including employers, Governments and unions, and they will make their recommendations in spring and summer next year. Secretaries of State will use the recommendations to inform the final pay awards in the normal way. The PRBs’ recommendations will recognise the wider economic context. The need remains for continued fiscal discipline, and Departments will take that into account when making any decisions.

Many Members have mentioned the NHS, which I want to spend a bit of time discussing. First, the Government are entirely committed to the NHS. Funding for the health service is at record levels. [Interruption.] Opposition Members may mock, but funding is in fact at record levels. They should be doing what we are doing, which is backing the service.

We know that pay restraint has been challenging and we are listening to the concerns of NHS staff and their representatives. We recognise that the NHS now faces greater pressures than at any point in its history, and the reasons for that are an ageing population, which is a significant challenge for western economies, and the greater demand that we are therefore seeing for NHS services.

Budget Resolutions

Rachael Maskell Excerpts

Thursday 23rd November 2017 Commons Chamber

[Sajid Javid]

It really bewilders me that although the Opposition Benches were full yesterday for the Budget, it seems like no one was actually listening. If the hon. Lady had been listening, she would have heard some of the measures that the Chancellor announced, including the change to the delivery test and the new inquiry, which I will come on to.

The Budget provided new money for the home building fund, to get small and medium-sized house builders building again. The Chancellor also promised £630 million for small sites to unlock the delivery of 40,000 homes; £400 million for estate regeneration; a £1.1 billion fund to unlock strategic sites, including new settlements and urban regeneration schemes; and £8 billion of new financial guarantees to support private house building and the purpose-built private rented sector.

[Rachael Maskell (York Central) (Lab/Co-op)]

Can the Secretary of State explain why York’s Conservative-led council submitted a local plan that seriously undershot the number of houses he is referring to? Why such a disparity within his own party?

[Sajid Javid]

The hon. Lady will know that we are currently consulting on how councils across the country, however they are led, should assess housing need. Once the proposals go forward, it will be clear that no council will be able to avoid building the houses it needs to.

In the areas where supply and demand are most badly mismatched, where most homes are unaffordable to most people, we will increase local authority housing revenue account borrowing caps by a total of £1 billion. That will allow ambitious councils to invest in new homes where they are most needed. We will bring together public and private capital to support the delivery of five new locally led garden towns in areas of high demand. We are committed to building up to 1 million new homes in the Oxford-Milton Keynes-Cambridge corridor by 2050, and we have agreed one of our first ambitious housing deals, with Oxfordshire, to deliver 100,000 homes by 2031.

Oral Answers to Questions

Rachael Maskell Excerpts

Tuesday 24th October 2017 Commons Chamber

[Stephen Barclay]

My hon. Friend is right. The UK financial services industry pays more than £71 billion to the Exchequer in tax and employs more than 1 million people directly and 2.2 million through the sector as a whole, two thirds of whom are outside London. Because of his work as chair of the all-party parliamentary group for Gibraltar, my hon. Friend will be aware of the importance not just of financial services in the UK, but of our links with industries in territories including Gibraltar.

[Rachael Maskell (York Central) (Lab/Co-op)]

Teachers have travelled from all over the country today to lobby Parliament about severe real-terms cuts in their pay. The Chief Secretary has said that she has lifted the pay cap owing to the pressure that Labour has placed on her, but will she confirm that her Department will fund the recommendations of the pay review body rather than cash-strapped local authorities?

[Elizabeth Truss]

The fact is that teachers received, on average, a 4.6% pay rise last year, including promotions and responsibility allowances. Pay in schools involves a great deal of flexibility, and headteachers can decide how they pay teachers. However, it will be up to the Department for Education to look at the specific circumstances in schools and make those determinations.