Better Jobs and a Fair Deal at Work

Rachel Hopkins Excerpts

Wednesday 12th May 2021 Commons Chamber

[Rachel Hopkins (Luton South) (Lab)]

Over the past year, workers across the country have risked their lives to keep us safe and our country moving, but workers’ rights and the long overdue employment Bill were not mentioned once in the Queen’s Speech. It shows that workers’ rights are nothing but an afterthought for this Conservative Government when they have to quickly put out a statement saying:

“We will introduce the Employment Bill when the time is right”.

However, the employment Bill could not be more urgent.

The pandemic has exposed appalling working conditions in the UK, which have left workers unprotected. Zero-hours contracts and the exploitative working practice of fire and rehire must be banned through legislation. The TUC has found that nearly one in 10 workers have been told to reapply for their jobs on worse terms and conditions or face the sack. We need proper rights for every worker from day one, an increase to statutory sick pay and the living wage to be raised to at least £10 an hour—something that would have increased pay for 8.6 million workers.

The Government’s commitment to investing in access to education and training throughout people’s lives rings hollow when the same Government are cutting the union learning fund, which supported more than 200,000 learners in workplaces across England in 2019-20. It is a complete fallacy for the Government to state, on the one hand, that they want to level up the country but, on the other hand, to fail to legislate to support the one in eight workers trapped in in-work poverty. The Joseph Rowntree Foundation has said that it is

“deeply concerned that providing security for low-paid workers was not a priority”

in the Queen’s Speech, and this exposes the central point. The Conservative party is not acting to fix the system, as for the past 11 years it has enacted the policies that have exacerbated the inequalities and insecurities at the heart of our economic system.

There is no new deal for workers, as there was no pay increase for public sector workers in the Budget. Instead, as workers continue to suffer from exploitative practices, the Government have prioritised the introduction of completely unnecessary voter ID plans, which will lock millions of people—predominantly elderly, low-income, and black, Asian and ethnic minority voters—out of our democracy. In 2019, a year with a high-turnout general election, the UK saw just one conviction for impersonation out of over 59 million votes. It is a total waste of money that will cost the taxpayer £20 million every single election. Voting is a right, not a privilege.

However the Government choose to spin it, fundamentally, their programme plans on levelling down our democracy and the living standards of workers. “Levelling up” is nothing more than a marketing slogan, and it is certainly no call to action. My constituents in Luton South and communities across the UK deserve much better than empty platitudes. We deserve a transformative, interventionist strategy that prioritises improving living standards through well-paid, secure, unionised jobs and strong public services.

Covid-19: Government Transparency and Accountability

Rachel Hopkins Excerpts

Thursday 22nd April 2021 Commons Chamber

[Rachel Hopkins (Luton South) (Lab) [V]]

It is a pleasure to follow the hon. Member for Thurrock (Jackie Doyle-Price), who gave a very passionate speech. It was an honour to serve on the Public Administration and Constitutional Affairs Committee during this inquiry and to contribute to the production of such an excellent report, and I thank the Committee staff for all their hard work.

The Nolan principles of public life speak of objectivity, accountability, openness, honesty and leadership as being core to public office and good governance. However, given the report’s conclusions, the Government’s stewardship of each of these principles has been brought into serious question. I want to speak specifically to recommendations relating to the Government needing to improve transparency by publishing data and information that underpin decision making.

Throughout the pandemic, when people have died, freedoms have been curtailed, families have been separated and living standards have suffered, the Government should have been more open and transparent about the data and information that have informed the decisions that have asked the public to make such huge sacrifices. There is a moral imperative to justify and evidence these decisions and to clearly show that they are working. When necessary, it is about the Government being honest about the uncertainties in the data, which would help to encourage trust, rather than scepticism. As the report states:

“Transparency builds trust, and trust aids compliance with rules.”

However, the communication has not always been transparent, which has damaged trust in sectors and communities across the UK.

The Committee heard from hospitality business organisations about the impact of the pandemic and I have discussed this with hospitality businesses in Luton South. Employers and employees understand the need for public health restrictions but are frustrated that they were left in the dark by not being provided with the information that underpinned the restrictions that impacted on their business operations. Pubs specifically required further information on the 10 pm curfew and the restrictions on wet-led pubs.

Lessons must be learned, as the Government are still failing to communicate the restrictions effectively with businesses. I have spoken to a number of businesses in the aviation sector that are stuck in limbo. They fully recognise the critical importance of the health restrictions to prevent the importing of cases and variants, but throughout this last year, they have consistently requested clarity on the information informing the restrictions in their sector in order to plan, particularly for the future and the opening up of our economy.

The traffic-light system is welcome, but there are still so many questions left unanswered. What information informs the criteria that places countries in the green, orange or red categories? What information underpins the operation of the green watch list? How will Foreign, Commonwealth and Development Office travel advice work alongside the new framework? It is still unclear when further information will be provided. If it is possibly some time in May, business and airports will have such limited time—a week or so—to prepare for the potential introduction of the system on 17 May.

The sector needs certainty. This is not just about people going on holiday; the aviation sector is critical to our economy, supporting local economies and thousands of jobs. I fully support the report’s recommendation that the Government should publish, as a matter of urgency, the data that underpins the restrictions on businesses that will remain in place at each step of the road map, along with data thresholds for the road map, which would avoid confusion when decisions are made to move between the steps. I hope the Government will put those recommendations, and others in the report, into action to improve trust and compliance with the regulations.

Although the report focuses on the data, its conclusions reaffirm the Committee’s previous call for a public inquiry into the Government’s handling of the covid-19 pandemic. I emphasise that the Committee worked collectively on the report, but the Labour party will continue to call for an inquiry to start as soon as possible so that crucial, life-saving lessons can be learned.

Commission on Race and Ethnic Disparities

Rachel Hopkins Excerpts

Tuesday 20th April 2021 Commons Chamber

[Kemi Badenoch]

Yes, that is absolutely right: I do agree. We need to focus on what works and why, as well as what does not and why, so that we can target our resources where they will be most effective. The report looks at why certain groups that are very similar end up with completely different outcomes, which is why institutional racism cannot be the defining reason. When black African and black Caribbean groups, and Indians and Pakistanis, have diverging outcomes, it is clear that something else is going on. I hope that my hon. Friend will work with Government to try to find out what measures we can put in place to address these disparities.

[Rachel Hopkins (Luton South) (Lab) [V]]

The report talks about creating agency so that individuals can take greater control of decisions that impact their lives. In response, will the Minister recommend that English for speakers of other languages funding, which has been cut by more than 50% since the Conservatives came to power in 2010, be reinstated?

[Kemi Badenoch]

If the hon. Lady has a comprehensive proposal about that, she can write to me and we will consider it in the light of the Government response.

Finance (No. 2) Bill

Rachel Hopkins Excerpts

Committee stage & Committee of the Whole House (Day 1)
Monday 19th April 2021 Commons Chamber

[Rebecca Long Bailey [V]]

I will limit my comments to the super deduction which, as we have already heard today, will be one of the largest single-year tax giveaways ever enacted in the UK. Arguably, some companies’ corporation tax bills will be wiped out entirely for a couple of years.

My right hon. Friend the Member for Hayes and Harlington (John McDonnell) has already said that the Public Accounts Committee found that tax reliefs cost more than £100 billion a year in forgone tax, but HMRC does not know how many reliefs exist; nor does it monitor the efficacy of such reliefs. That is staggering. Can we be confident that HMRC will know what effect the super deduction will have, and who will actually benefit from it? Many of my small and medium-sized enterprises in Salford would love a super deduction, but sadly it will not benefit them. The Financial Secretary to the Treasury told the House last year that the enhanced annual investment allowance of £1 million already covers the capital expenses of 99% of businesses in the UK, so it seems that this super-relief will overwhelmingly benefit only 1% of extremely large businesses.

I would have no problem if such businesses desperately required the relief in order to protect jobs or to invest in our local economies, but let us look at some of the potential beneficiaries. Amazon has benefited from the pandemic, seeing its sales jump by 50%. According to TaxWatch, the company’s latest accounts show that they spent £66.8 million on plant and machinery, £80.4 million on office equipment and £15.3 million on computer equipment in the same year, so the 130% super deduction could entirely account for the pre-tax profits of the company even before any deductions of staff pay awards.

Similarly, many energy and water companies find themselves also able to wipe out their tax bill. United Utilities spent £1.275 billion on property, plant and equipment in the past two years, compared with a current tax liability of just under £89 million. Electricity North West stated that covid has had a limited impact, and it had a tax bill of £45 million for 2019-20 while investing £449 million in property, plant and equipment. For both companies, it would only take a small proportion of the capital investment to be spent on plant and equipment to use the super deduction to eradicate their tax bill, too.

Do these buoyant companies really need a super deduction? The answer is no. In the absence of any clear conditions specifying the use of such savings or providing a wider social benefit, such as increasing salaries for workers, investing in decarbonisation or reducing costs for end consumers, I struggle to see the benefits being passed on to anyone other than shareholders.

I hope that the Government support amendment 11 and new clauses 1, 2 and 6 in the name of my right hon. Friend the Member for Hayes and Harlington and others, as well as the Labour Front-Bench amendments, because there are companies that do need support to help them recover from the pandemic. There is a real need to support long-term, patient investment by industry, but the untargeted nature of this relief, without conditions, is not the best use of public money. In fact, it borders on the obscene.

[Rachel Hopkins (Luton South) (Lab) [V]]

I shall speak in support of the amendments in the name of the Leader of the Opposition and those in the name of my right hon. Friend the Member for Hayes and Harlington (John McDonnell). The Budget and Finance Bill represent the Government taking steps towards further structuring our economy on insecure, precarious work and deregulation, which will widen income and wealth inequality.

The Government’s unambitious plan provides neither a foundation for rebuilding our economy nor a plan to tackle the climate emergency that my constituents have called for. They have announced a future cut to social security and a real-terms pay cut for public sector workers at the same time as introducing a super deduction tax cut for big businesses, allowing firms to write off 130% of the value of qualifying capital investment against their taxes.

When we look across the Atlantic to the US, we see a stark contrast. The Biden Administration have committed to fast-tracking a $1.9 trillion Government-led stimulus package, which is about 10% of the annual output of the US economy and which contained no promises of future deficit reduction. That is alongside a forward-looking plan to spend a further $2 trillion on infrastructure. Biden’s spending plan, in proportion to GDP, is three times the size of the UK’s.

Contingencies Fund (No. 2) Bill

Rachel Hopkins Excerpts

Committee of the whole House & Committee stage
Thursday 11th March 2021 Commons Chamber

The simple story is this: the Government had millions to hand wastefully to their friends, but for those who worked day and night on hospital wards a pay cut and a clap are all they get. This must never happen again. Labour has tabled an amendment and will press it to a vote later today so that we can improve transparency of emergency spending from the contingency fund. Never again can we let such Tory waste, negligence and cronyism take place.

[Rachel Hopkins (Luton South) (Lab) [V]]

I refer to my entry in the Register of Members’ Financial Interests as a member of the Public and Commercial Services Union.

Parliamentary authorisation of public expenditure is critical, but we all recognise the need for this Bill to ensure that the Government can act quickly to support the economy. That said, the Government should not be able to act without accountability and transparency. I support the comments made earlier by my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier) with regard to transparency and scrutiny. Indeed, just this morning, as part of business questions, the Leader of the House reiterated the point that Members have a right and a duty to hold the Government to account. He also said that scrutiny leads to better government, and that it is in the interests of Government that scrutiny takes place.

It is with those principles in mind that I want to speak in favour of the amendment in the name of the Leader of the Opposition, which seeks to improve Government accountability to Parliament for as long as the increased flexibility of the contingency fund is in place. I want to speak specifically with regard to the checks on the regularity, propriety and value for money of any Government procurement decisions, particularly the importance of the reporting of any written ministerial directions given, so that Parliament can be clear when Ministers have decided to override objections made by senior civil servants.

Throughout the pandemic, the Government’s record on transparent procurement processes and securing value for money on public spending has been, sadly, too often completely inexcusable. Despite NHS Test and Trace being allocated a total of £37 billion and a Conservative peer being handed the top job, the Public Accounts Committee’s report on test, track and trace made this finding. In terms of tackling the pandemic, it said:

“There is still no clear evidence to judge NHST&T’s overall effectiveness.”

I also ask the Minister whether he has reflected on yesterday’s report by the National Audit Office on Test and Trace and whether it contained any lessons to be learned by the Government as well.

The theme of incompetence and cronyism does not end there. In a Westminster Hall debate back in December, I joined many other MPs in highlighting the fact that the National Audit Office report on the Government’s procurement during the pandemic had found that contracts had been awarded without due diligence, with a lack of documentation, and no clear audit trail or transparency. Just a few weeks ago, the High Court ruled that the Government had acted unlawfully by not publishing details on the contracts awarded within 30 days, including many awarded through the Government’s VIP lane. The judge ruled that the Government’s inaction breached a vital public function of transparency regarding how vast quantities of taxpayers’ money was spent. The passage of the Bill should not allow the Government to act without accountability and transparency. There are too many instances of the Government’s poor procurement policy representing poor value for money.

In conclusion, I wish to press the point that Ministers must be accountable and civil servants must not be scapegoated for the Government’s poor decision making. The legally binding protection of written ministerial directions ensure that they are not implicated in the Government’s incompetent decision making and cronyism. This is not unnecessary bureaucracy, as referred to by the hon. Member for Thirsk and Malton (Kevin Hollinrake); it is right for Parliament to be able to scrutinise them in a timely manner in the public interest.

[Richard Thomson (Gordon) (SNP) [V]]

I will be brief. The concerns of Scottish National party MPs over certain covid-related Government procurements are well known and on the record, and we will continue to hold the UK Government to account for them. Nevertheless, whether the new clause is viewed through that particular lens or not, the fact remains that taken on its own terms it would greatly improve scrutiny, oversight and accountability, without creating any disproportionate impact on the Government or the overall efficiency of the spending process. Trying to equate the improvement in process that would result with an attack on business, as we have heard today, is frankly nonsense. It smacks of desperation, and I am certain that that is exactly how it will be seen.

The SNP will be supporting this amendment. If the Government have any care at all for transparency on these matters, and for being able to demonstrate that there is proper stewardship of public funds, there is frankly no good reason for them not to support it as well.

Government's Management of the Economy

Rachel Hopkins Excerpts

Tuesday 23rd February 2021 Commons Chamber

[Rachel Hopkins (Luton South) (Lab) [V]]

The covid-19 pandemic has exposed the roots of a broken economic system that fails to serve the public. Our frail economic system did not emerge overnight; it is a result of the Conservative party’s economic dogma, which sees the state purely as a market fixer and rejects a role for an active state in shaping the market’s direction. It is committed to outsourcing the state’s capacity and services to private companies. That failure of the Government’s industrial strategy has led to the UK’s labour market having an over-reliance on the insecure, low-paid gig economy, where people struggle to make ends meet, while at the same time allowing huge, reckless levels of corporate debt due to dividend payments, share buy-backs and growing executive pay, leaving businesses with little in reserve to weather the crisis.

In 10 years as a local councillor, I have seen how the Government’s austerity programme, rather than driving growth and productivity through an innovative industrial strategy, has caused the slowest economic recovery since the 1930s. It has devastated living standards and meant that more children in my constituency of Luton South live in poverty.

We have seen £138 million stripped from our local council’s budget, The public health grant for 2020-21 is £600,000 lower than it was four years ago. NHS hospitals, mental health services and community providers have a shortage of around 84,000 staff; 38,000 of them nurses. Bedfordshire fire and rescue service’s budget has been cut by 19% since 2016-17. Everyone has seen homelessness increase at the same time as the housing crisis has worsened. Food bank use in the east has risen by 74% since 2015-16 and there has been substantial wage stagnation. Throughout the pandemic, the Government’s “whatever it takes” rhetoric has rung hollow as for the past decade they have downgraded the public sector’s ability to respond to a crisis.

The past shows us that the market is incapable of finding solutions to climate change, to widening inequality and to the continuation of the public health emergency. We need an empowered public sector at the wheel, driving a green economic recovery that redistributes economic prosperity and creates well-paid, secure, unionised jobs. To help with the economic recovery, the Government should value our local councils, which are on the frontline, supporting our communities, and scrap the council tax hike that is being forced on them.

Future Relationship with the EU

Rachel Hopkins Excerpts

Thursday 10th December 2020 Commons Chamber

[Penny Mordaunt]

I can give my hon. Friend those assurances. Services were one area where we were very poorly served by our membership of the EU. As well as the negotiations, the Department for International Trade has been doing fantastic work in signing roll-over trade agreements and new agreements with many nations. There are fantastic opportunities for our service economy in those nations.

[Rachel Hopkins (Luton South) (Lab)]

Investing in green industries and our transport infrastructure will be key to building back better after the pandemic and transitioning to net zero. With Government support, the automotive sector, including Vauxhall in my constituency, could move more quickly to producing more electric vehicles and councils could move to implementing the required green infrastructure to support them. Will the Minister outline whether a position on what is considered state aid has been reached, and whether any agreement will enable Government to invest in and subsidise green sectors?

[Penny Mordaunt]

There were certainly elements of the Chancellor of the Duchy of Lancaster’s statement earlier in the week that touched on that, but the hon. Lady is absolutely right to say that we want to be able to secure opportunities to set the conditions for our economy to thrive. Clearly, we have very challenging environmental goals that we wish to reach. Those are the freedoms we are working and fighting for.

Oral Answers to Questions

Rachel Hopkins Excerpts

Tuesday 1st December 2020 Commons Chamber

[Afzal Khan (Manchester, Gorton) (Lab)]

What representations he has received from organisations representing people who are ineligible for covid-19 financial support schemes; and if he will make a statement.

[Rachel Hopkins (Luton South) (Lab)]

What representations he has received from organisations representing people who are ineligible for covid-19 financial support schemes; and if he will make a statement.

[The Chancellor of the Exchequer (Rishi Sunak)]

Before I start, I know that Members from around the House will join me in commemorating World AIDS Day and the many organisations that make this day happen. As we remember those we have lost to HIV and AIDS, we also remind ourselves of the need for further action. I am proud that this Conservative Government’s policy is to end new HIV transmission by 2030—a commitment reaffirmed today at the launch of the HIV commission.

Throughout this crisis, the Government’s economic priority has been to protect jobs, livelihoods, businesses and public services, and we have spent more than £280 billion in doing so.

--- Later in debate ---

[Rishi Sunak]

I feel very bad for David and Alice with the difficult situation that they are facing. However, I am sure that their small business, like a million other small companies across the country, has been able to benefit, I hope, from the bounce back loan programme, one of the most successful small business loan programmes that we have seen throughout this crisis. It has provided tens of billions of pounds to a million small and medium-sized businesses—up to £50,000—to help exactly those companies to get through this difficult time.

[Rachel Hopkins]

While the Government have provided support for creative institutions through the culture recovery fund, they are running the risk of losing our world-renowned elite west end musicians who are excluded from financial support due to being freelancers or limited companies. We risk losing these elite skills altogether and damage to the industry would have a negative impact on the ability of young musicians from working-class towns such as Luton being able to pursue a career in music.

Considering the sector provides more than £5 billion to our economy, can the Chancellor update the House on what barriers remain to getting support to musicians?

[Rishi Sunak]

There is no barrier to support for anyone to access any of the various things that we have put in place. I am glad that the hon. Lady mentioned the culture recovery fund. At £1.5 billion, it is something that I do not believe any other country has done at such a scale, coupled to which is our further support for the creative arts and the film and TV production industry, which my right hon. Friend the Financial Secretary to the Treasury will be talking about later. We agree that this is an important sector and we want to ensure that it can get back to work.

Spending Review 2020 and OBR Forecast

Rachel Hopkins Excerpts

Wednesday 25th November 2020 Commons Chamber

[Rishi Sunak]

I thank my hon. Friend for his support. He is right about my need to make difficult decisions and tough choices so that we can prioritise the things that he talked about. I believe that his local area has received some seed funding to examine proposals for the south Humber line, which I hope will make a difference to his constituents. I hope that he and I can have a productive conversation about our levelling-up fund, as we figure out how best to support the wonderful town of Grimsby with its future ambitions.

[Rachel Hopkins (Luton South) (Lab)]

It is irresponsible to pit public sector and private sector workers against one another in the race to the bottom on wages, especially when key workers across both sectors kept us going through the pandemic. Notwithstanding the small amount given to low-paid workers, who frankly deserve better, this pay freeze for civil servants will also freeze any meaningful action on tackling the gender pay gap in the civil service, which is 12%. Will the Chancellor outline what discussions he has had with the Cabinet Office about eradicating the gender pay gap in Departments?

[Rishi Sunak]

For the record, no one is trying to pit anyone against anyone else. This is simply about doing what is fair for the country. It is the right decision to make. It is a difficult decision, but we have taken a targeted approach to protect those on lower incomes and those in the NHS, ensuring that a majority of public servants will receive an increase in their pay next year. I would be happy to go away and look at the gender pay gap in the civil service and ensure that we are making good progress on eliminating it.

Black History Month

Rachel Hopkins Excerpts

Tuesday 20th October 2020 Commons Chamber

[Rachel Hopkins (Luton South) (Lab)]

I congratulate my hon. Friend the Member for Erith and Thamesmead (Abena Oppong-Asare) on securing this important debate and on the passion and eloquence of her opening speech. I echo her call to everyone who wants to make change happen to register to vote in next year’s elections. I am pleased to be speaking in the Black History Month debate today, particularly given the fact that many Luton South constituents have signed the parliamentary petitions on teaching black history as part of a more inclusive curriculum.

I have heard many others speak about their experiences at school, and I want to pay tribute to the fantastic education I got at a diverse, working-class comprehensive and the experiences that have enabled me to stand here in this debate as an ally with my black and brown friends from school. I also want to pay tribute to my former teacher, Mr Taylor, who did his bit for black history education over 30 years ago. But he was not a history teacher; he was our drama teacher. He recognised not only the importance of teaching black history but the fact that education comes in many forms. He recognised the power of drama and creativity to engage young people of all races with knowledge and ideas. This is not politicising education, as the hon. Member for North Norfolk (Duncan Baker) said; it is, importantly, enabling young people to better understand the world around them. That was how a diverse bunch of working-class kids from a comprehensive in Luton in the ’80s learned about the life and actions of Martin Luther King and the wider civil rights movement in America. We did it through creating a play of his life in the form of a Greek tragedy, with the chorus reiterating: “Martin Luther King—he was black”. When we performed it at the end-of-term show, my mum said that you could have heard a pin drop.

I take that with me now, as I speak in this debate, because I have now been given the opportunity to stand up once again for my friends. People have referenced a shared history, and we must all own that shared history, but the racism experienced by my friends at school, and sometimes by me alongside them for being their friend, makes the sharing of that history really painful. We cannot just say, “It’s a shared history. Let’s explore it.” My experience of that history is very different from the experience of my black and brown friends.

I want to reflect on how we recognise and celebrate black history and the important black role models in my home town of Luton, and I shall do that by taking a moment to celebrate Luton’s first black woman mayor, Councillor Desline Stewart. She was mayor in the mid-1990s, and she served our town as a local councillor for over 30 years. I was pleased to serve alongside her as a local councillor for a number of years. Desline was one of the key founders of the Mary Seacole Housing Association in my constituency. In the 1980s, Desline responded to direct pleas from young people who were running away from home. They sought her out, as she had built a reputation for her philanthropic work accommodating people from a wide range of backgrounds. She welcomed everyone into her kitchen if they needed help. Over time, more and more people went to her for help, until it became clear that she would need to increase her outreach. With the support of local politicians, grants from Urban Aid and support from Luton Council and Luton churches, a recommendation to the Housing Corporation resulted in the purchase of the first two houses on Brantwood Road to support her work.

Here is another example of how educating about black history comes in all forms. Desline chose to name the housing trust because she wanted to recognise Mary Seacole, a pioneering British Jamaican nurse and heroine of the Crimean war who overcame racism and injustice to nurse soldiers during that war 200-odd years ago. Desline felt a strong kinship with Mary Seacole and wanted to recognise her humanitarian work and altruism. She believed that there was an affinity between her own rescuing of homeless young people and Seacole’s nursing of wounded soldiers on the battlefield. In celebrating black history, which is British history, we must remember that much of that history is recent and much of that history is local.

[Madam Deputy Speaker (Dame Eleanor Laing)]

After the next Member, I will have to reduce the time limit to four minutes, but on five minutes, I call Paul Bristow.