VAT on Defibrillators

Ruth Edwards Excerpts

Wednesday 22nd June 2022 Commons Chamber

[Ruth Edwards (Rushcliffe) (Con)]

It must be every parent’s worst nightmare. Last September, Dylan Rich—a talented 17-year-old footballer from Rushcliffe—was playing in a FA youth cup game between his club, West Bridgford Colts, and Boston United at the Colts’ ground in Regatta Way. Out of nowhere a couple of minutes into the match, he suffered a cardiac arrest and collapsed. His brave mother Anna performed CPR on her own son. Dylan was treated with a defibrillator at the scene and an ambulance arrived within 10 minutes. He regained cardiac output and was stabilised in intensive care, but tragically he died three days later in hospital.

Words cannot express the depth of sorrow that his death has caused—to his family, his friends, and the community at West Bridgford Colts. In their tribute to him, the Colts said:

“Dylan was one of those players that team mates love for his commitment, coaches for his attitude and adaptability, and supporters for his reliability. A fantastic club player.”

Tributes followed from Nottingham Forest and Notts County. Ahead of their World cup qualifier against Poland, the England players held up a shirt with “For Dylan” printed on it.

But the tribute that his family and his club most want is to increase the number of defibrillators across the UK, to make them cheaper for communities to buy, and to increase people’s awareness and confidence in using them. Until Dylan’s death, I had never looked at the figures for the scale of cardiac arrests. Sudden cardiac arrest is one of the leading causes of death in young people, and almost never has any prior symptoms. Officially, about 32,000 sudden cardiac arrests occur in England every year. When combined with figures from across the UK, it is estimated that the true number is as high as 60,000. There is an important caveat to this figure: it only includes incidents where resuscitation was attempted. In the UK, only 8% of people survive an out-of-hospital cardiac arrest.

Cardiac arrest can happen to anyone. This was brought home to us again in Nottinghamshire last month, when 13-year-old Samuel Akwasi collapsed from a cardiac arrest during a Young Elizabethan football league game and tragically later died in Queen’s Medical Centre. In fact, only yesterday, as I was writing this speech, I read of an assistant referee, Andrew Jarvis, who suffered a cardiac arrest while officiating at a game in Mansfield last August. Mercifully, he survived. He says he was saved by good-quality CPR, the football club’s defibrillator, and the quick arrival of the air ambulance team.

On average, as I said, a person in the UK has an 8% chance of surviving a cardiac arrest if it happens out of hospital, but this is vastly increased to as high as 70% if a defibrillator is used within the first three to five minutes of the cardiac arrest occurring. Conversely, survival rates drop by 10% for every minute of delay after this time. This further highlights why it is essential to have a defibrillator on every sports pitch and street corner possible—because these machines save lives. Average survival rates for out-of-hospital cardiac arrests vary across the country, ranging from 0.6% to 25%. The Government are doing so much to address regional inequality across the country, but we must also address regional inequality in defibrillator access and survival rates.

The main barriers to accessing defibrillators have been shown to be cost and awareness. In a survey by Vitreous World, 42% of people said that cost was the main barrier to owning a defibrillator, while 62% of people do not know how to use one and 27% are worried about how to do so. Defibrillators vary in cost, but the average unit is about £1,250. This is a considerable expense to many community groups, charities and sports clubs, especially considering that a sizeable portion of it, 20%, is VAT. Clearly, £1,250 is a lot of money for organisations raising funds through cake sales, individual donations and raffles. Some charities are exempt from paying VAT on defibrillators: not-for-profit hospitals, charitable institutions that provide care or medical or surgical treatment for disabled people, and rescue or first aid services. However, most sports clubs and community groups do not qualify.

There are several options for reducing the cost of defibrillators. The first is to apply a zero rate of VAT to all defibrillators in line with that already applied to a range of medicines and medical products, including prescription medicines and drugs. A blanket rate would be a simple and straightforward solution to cover anyone and any organisation wanting to buy a defibrillator.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Lady for securing this debate. I declare an interest, as I presented the Automated External Defibrillators (Public Access) Bill on Monday, when you were in the Chair, Madam Deputy Speaker, and it will be heard on 9 September. I encourage the hon. Member for Rushcliffe (Ruth Edwards) to come along to support the Bill, if at all possible.

I understand that children’s car seats, children’s travel systems and other safety protections have a reduced 5% rate of VAT. Should not this reduction, at least, be replicated for lifesaving defibrillators? As I know from my constituency, this would save lives.

[Ruth Edwards]

I congratulate the hon. Gentleman on his Bill, and I would be delighted to join him on 9 September. He has come up with an excellent option that is not on my list.

I accept there are many good candidates for zero-rate or reduced-rate VAT, one of which the hon. Gentleman has just outlined, and I am sure the Minister will say that the Government have received £50 billion-worth of requests for VAT relief since the EU referendum, which is a valid point. Our tax base funds the public services on which we all rely, including NHS treatment for victims of cardiac arrest, but surely these lifesaving devices should be a higher priority than, say, e-books, of which I am a great fan but they cannot save a life in the event of cardiac arrest.

There is a good argument that, as paper books already have a zero rate of VAT, extending it to e-books is a necessary tidying up of the system to avoid any legal challenges. That is not 100 miles away from the situation with defibrillators, where some charities benefit from zero-rate VAT but others do not. Surely, whatever the purpose of the charity, the purpose of using a defibrillator is the same.

Another option is to widen the scope of organisations that can purchase a defibrillator without paying VAT. Instead of just covering charities with care, medical, rescue or first-aid missions, could not all charities, not-for-profits and community groups be allowed to purchase a defibrillator without paying VAT? After all, businesses can currently claim back VAT on defibrillators as part of their VAT return forms. Such an approach would direct savings to the people who need them most, while not setting a precedent for the blanket removal of VAT on a specific item. It also simplifies what is currently a confusing landscape in which people are not sure whether they are eligible for this VAT exemption.

Or perhaps we can set up a fund for charities and community groups, either to claim back their VAT or to aid them in buying defibrillators. Maybe a pot of money could be announced in the Budget—I am getting my bid in early. I am sure the creative and clever minds at the Treasury can come up with all sorts of options, and I place on record my huge thanks to the Minister, who I know has asked her team to do just that.

Whatever model we go for, the end we need to achieve is making community defibrillators more affordable, especially at a time when people’s finances are increasingly stretched. Whatever route we choose, we need to publicise it and use the opportunity to address the lack of knowledge and confidence in defibrillator use. I identify with this, as I did not know how to use one until Trent District Community First Responders and Nottinghamshire Fire and Rescue Service kindly offered to train me and my team. In fact they are training all sorts of groups across Rushcliffe, and it would be great if we could offer defibrillator and CPR training to Members and staff here in Parliament. When I asked, I was told there was no course I could do.

Parliament provides many other courses. We have media training, diversity and inclusion training and courses on how to use the Library, and I am told I can be tutored in any foreign language that might be useful for my work. All these are important, but none would teach me how to resuscitate a constituent at my surgery whose life is hanging in the balance.

Any of the proposed options I have discussed would be most effective alongside a big push to increase defibrillator training and a publicity campaign to raise awareness. Many people want to learn how to use a defibrillator and save a life, and many more can already use one and want to share this knowledge with others, so why do we not help to bring them together?

I have one final thought on how to maximise the impact of such a campaign. At present, it is a legal requirement to have firefighting equipment in places of work, residences and public buildings—everywhere really. What people need to have depends on the type of premises, but fire alarms, extinguishers and exit signs are all pretty universal. However, there is no legal requirement to have a defibrillator kept at a place of work. Why not? Some 80% of people believe that defibrillators should be mandated in workplaces, but only 30% of people have a defibrillator in their workplace.

Increasing access to defibrillators is not just the right thing to do; it also makes financial sense. Patients who have had early defibrillation have a significantly reduced stay in hospital and are far less likely to need treatment in intensive care. The average hospital stay is significantly less for survivors when a defibrillator is applied within the three-to-five-minute window and they spend less, if any, time in intensive care. Figures may differ from hospital to hospital, but on average an intensive care unit bed is about £2,300 more expensive per night.

In addition, patients who have a defibrillator used on them quickly have fewer ongoing health problems due to lack of blood and oxygen circulation to vital organs such as the brain. This means they require far less ongoing treatment. In short, we estimate that reducing the cost of defibrillators and increasing the number available for people to use in the community will save the NHS tens of millions of pounds, which is much needed to reinvest as it deals with the elective backlogs brought on by the pandemic.

In conclusion, I first raised this issue in Parliament at Prime Minister’s questions back in March, and I would like to thank both the Minister and the Prime Minister for the priority they have given to this issue since. They both met my constituents Peter Stanbury and Paul Wilson, who are respectively the chairman and the coach of West Bridgford Colts, and I know the Treasury has been working on a number of options to take this forward. I would also like to thank Peter and Paul for coming to see me in my surgery and making me aware of this issue, and for the incredible work the Colts have done to raise money to buy more defibrillators for their training ground.

I would also like to thank Dylan’s family—his mum Anna, his dad Mike and his sister Lucy—for allowing us to tell Dylan’s story and for backing the Colts’ campaign at what must be the darkest time of their lives. Sudden cardiac arrest can tear through the life of any family with devastating results. I am delighted by the energy and commitment the Government have shown to working on this issue, and I hope we can now agree on the best way forward and give it the green light, so that we can get on with delivering these life-saving changes.

I would just like to leave the House with a message from Dylan’s mum Anna, who wrote to me this morning to say:

“I think it helps to emphasise the importance of community defibrillators, in the sense that we did get an output back on Dylan. Sadly, it was ultimately the time he was without adequately oxygenated blood to his brain that led to his death. Without the defibrillator, I don’t think we would have left the football pitch.”

[Jill Mortimer (Hartlepool) (Con)]

rose—

--- Later in debate ---

[The Financial Secretary to the Treasury (Lucy Frazer)]

indicated assent.

[Ruth Edwards]

indicated assent.

[Madam Deputy Speaker]

Then the hon. Lady may make a short speech.

National Insurance Contributions (Increase of Thresholds) Bill

Ruth Edwards Excerpts

2nd reading
Thursday 24th March 2022 Commons Chamber

[Mr Clarke]

We are determined to help people on universal credit to keep more of what they earn. I have not seen the assessment to which the right hon. Gentleman alludes, but I will look at it. It is certainly our ambition to keep bringing down the taper rate so that people get to keep more of what they earn. In that regard, I will certainly look at the analysis to which he directs me.

[Ruth Edwards (Rushcliffe) (Con)]

Can the Minister confirm what the Institute for Fiscal Studies has said—that, contrary to claims from Opposition Members, the poorest 10% of households have benefited most from this Government’s tax and spend decisions since 2019?

[Mr Clarke]

I thank my hon. Friend for her question. There is no doubt at all that we have targeted the action that we have taken at the people who need it the most. That is why this Bill is so important, as I will explain, but it is also why we have taken the action on fuel duty, universal credit, the household support fund and TV licences—all things that are designed to help people whose incomes are most stretched at what is a difficult time for families up and down the country.

--- Later in debate ---

[Ruth Edwards]

Can the Minister confirm that, as a result of the changes we are making today, 70% of workers will have their taxes cut by more than they will pay through the levy?

[Mr Clarke]

My hon. Friend is absolutely right, and we cannot emphasise that enough. We are determined to address the underlying challenges we face not only with the public finances, but crucially with the backlog of care. Let us not forget that 6 million people are on NHS waiting lists as a direct result of the covid pandemic. While we do that, we will always focus on supporting families and, crucially, on making sure that, when we do have to increase taxes, the burden is borne by those with the broadest shoulders. That is what the combination of this measure with the levy will deliver.

The Bill’s first measure will increase the NIC primary threshold and the NIC lower profits limit to £12,570 from 6 July. By way of explanation, these are the thresholds at which the employed and the self-employed, respectively, start to pay NICs. The increases in these thresholds of about £3,000 will equalise the NIC and income tax thresholds, and in so doing create a fairer and simpler tax system, something to which we ought all to aspire. That means that people will be able to earn £12,570 without paying a single penny of income tax or national insurance.

As we heard a moment ago, that is the largest increase in a starting threshold ever, it is the largest single personal tax cut in a decade, and it reduces the tax burden by £6 billion for 30 million people across the United Kingdom. On an individual level, a typical employee will see their tax bill reduced by £330 in the year from July, while the equivalent saving for a self-employed worker will be worth over £250.

Financial Statement

Ruth Edwards Excerpts

Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

The hon. Lady is describing the impact of inflation on people’s incomes. Of course that will have an impact; we have been very clear and honest about that. That is not just happening here; it is happening everywhere across the world as we grapple with higher inflation, but the measures we are taking today will make a significant difference to support working families in weathering some of the challenges ahead. Again, for those who are most vulnerable, we started this journey in autumn with a tax cut to universal credit, and we are doubling the household support fund today to £1 billion.

[Ruth Edwards (Rushcliffe) (Con)]

I welcome the Chancellor’s statement today. It will do a lot to help many of my constituents in Rushcliffe. Can he reassure me and my constituents that the tax-cutting measures announced today will continue to be the focus of this Conservative Government and that they are just the start of what is possible if we continue to build a stronger, greener economy?

[Rishi Sunak]

My hon. Friend is absolutely right. We started in October, and we have made progress today. The tax plan published today shows that we will continue to make progress, cutting taxes for businesses and people over the remainder of this Parliament.

Economic Update

Ruth Edwards Excerpts

Thursday 3rd February 2022 Commons Chamber

[Rishi Sunak]

Those of us on the Government Benches believe that it is also right that we support those on middle incomes; those families are also working hard and they deserve our support. It is important that they know that the Government are on their side at times like this, and that is why we have taken the approach that we have. But of course we are cognisant of those on lower incomes. As I said, this is a progressive package. Flat-rate payments are a greater percentage of income for people on lower incomes, and indeed with smaller energy bills. As I have outlined, we have a range of other interventions specifically targeted at those people.

[Ruth Edwards (Rushcliffe) (Con)]

I welcome this generous plan, especially the inclusion of families on middle incomes, which will do a lot to help many of my constituents in Rushcliffe. Does my right hon. Friend the Chancellor agree that now is the time for us to be investing in our domestic energy industry and energy security—in turbo charging our move to clean energy, as we are doing in the east midlands freeport, rather than risk driving investment from the UK with a counterproductive windfall tax as the Labour party would?

[Rishi Sunak]

I agree with my hon. Friend. She puts the point excellently. Government Members are in favour of more investment in domestic energy, more jobs for the British economy and greater energy security for our nation.

Health and Social Care Levy Bill

Ruth Edwards Excerpts

2nd reading
Tuesday 14th September 2021 Commons Chamber

[Ruth Edwards (Rushcliffe) (Con)]

It started with a series of bizarre reports from my grandmother. My grandfather had started to put on his coat in the middle of the night and insist on going for a walk. She found plates of cheese in the airing cupboard, instead of the fridge. It was not long before he needed constant residential care for the last four years of his life. I have always thought that dementia is one of life’s cruellest diseases, both for the sufferer and their family. The reality is that you lose your loved one long before they actually die.

Sufferers of dementia and their families have their lives turned on end, sometimes in quite short spaces of time. The last thing they need is uncertainty and financial worries to add to that. Here in the UK, we have an ageing population—and with that come complex, long-term physical and mental health conditions—which means that the length of time people may require care if they are hit by dementia or similar conditions later in life is increasing, as are the numbers of people needing that care.

It is an urgent problem, yet for decades, Governments of all parties have pushed the issue down the road or to one side. Our health service and councils across the country have started to see the impacts of this increase in demand without an increase in ring-fenced resources. I am therefore glad to see the Government tackling this head on, both with the social care levy set out in this Bill and the planned White Paper in the autumn. Only through a system that encourages long-term planning for social care will we achieve a sustainable care sector.

Like with pensions, we should be thinking about care provision, planning and taking responsibility for that provision from the start of our working lives. We need to change the culture around how we talk and think about care, and this Bill is the first plank of that new platform. It has been written in a way that means that people on higher salaries will pay more. It is also the first part of a broader new care settlement that, as my hon. Friend the Member for Peterborough (Paul Bristow) said, must see reform and innovation throughout the NHS and our social care system, and proper integration between the two, if it is to have public support.

Raising taxes is not something I take lightly, but the public know we have just been through the most unprecedented 18 months in more than half a century. Those on the Opposition Front Bench have criticised the Government for taking two years to put forward a plan. They have taken 24 years, and they still have no plan, unless we are counting the broad shoulders tax, which I am sure we all look forward to hearing more details on. Will it be a tax on income, on assets or on literal shoulders? I wait to see.

Words are easy; decisions are hard. That is why the public voted this Government into office: to make those tough decisions and plan for the long term. That is what we are doing today.

Finance (No. 2) Bill

Ruth Edwards Excerpts

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

[Richard Thomson]

I thank the hon. Gentleman for that intervention, but I think my point still stands. No matter what the spirit of truth might be in his remarks about how constraints were placed on the Shannon free zone, there are freeports in the European Union. Freeports are not something that intrinsically require Brexit of itself in order to be able to be pursued. But certainly I hope there are benefits for Scotland from this. I think those benefits can be manifested best perhaps through the greenports approach, which I would like to expand upon.

As I say, the Scottish Government have developed their own version, the greenports, which seeks to embrace all the potential benefits that could come through freeports, while aligning that with ensuring the principles of fair work are enshrined, ensuring that workers within the greenports are paid a real living wage and that the reduction of carbon emissions is embedded at the heart of those developments. A re-elected Scottish National party Government will seek to implement those greenports, making public sector support contingent on businesses complying with that fair work first agenda, paying that real living wage and implementing the Scottish business pledge: our values-led partnership between Government and business based on boosting productivity competitiveness through fairness, equality and sustainable employment, and on delivering on concrete plans to reduce carbon emissions in line with supporting the Scottish Government’s ambition to reach net zero by 2045.

The Scottish Government proposals for these economic development zones already have widespread buy-in from stakeholders, who are desperate to start bidding to run the greenports. It was heartening to hear from the Minister his commitment to seeing freeports in all parts of the UK. Nevertheless, if the people of Scotland choose to re-elect a Scottish National party Government, the Government need to accept the mandate that comes from that and, if there has been an element of heel dragging, to hasten the process of coming to an agreement on the rules around these proposed greenports so that the bidding can begin immediately.

Having taken positive steps to end the race to the bottom on corporate taxation, as we heard in an earlier debate, I think it is important that the UK Government do not allow those who take advantage of freeport status to neglect or otherwise elude their obligations to the workforce, to the environment and to the building of long-term, sustainable value in the regions where they are located and the wider economy.

In the year that the world is coming to Scotland to plan our future at the COP summit, I think it is absolutely fitting that we should be able to develop greenports to demonstrate our ambitions on sustainable, inclusive economic growth as we transition to a net zero economy. A fair, sustainable greenport model can be an exemplar of those values, while adding value to Scottish goods, services and the country’s brand. The UK Government, once the Scottish elections are over, need to get on board with this and back the innovative approach of the Scottish Government model so that we can get the bidding process under way.

[Ruth Edwards (Rushcliffe) (Con) [V]]

The east midlands is one of the regions that was fortunate to benefit from a new freeport in this Budget. Spread across three sites in Leicestershire, Derbyshire and my own constituency of Rushcliffe, we hope to establish a green technology park on the site of one of the UK’s last coal-fired power stations, at Ratcliffe-on-Soar.

Hearing contributions from the Labour party in recent weeks, and from the shadow Minister just now, we would be forgiven for thinking that, with the arrival of a freeport, Rushcliffe will become some sort of wild west, with disputes over stolen art, organised crime activity and tax avoidance settled with a shoot-out in the drinking establishments of Ratcliffe-on-Soar. Quite a picture, but one that ignores the extensive steps the Government have taken to prevent illicit activity, such as background checks for businesses that want to locate in a freeport, including their beneficial owners, and a register of businesses operating in each freeport site, to which HMRC, the National Crime Agency and Border Force will all have access. Successful freeport bids also had to demonstrate their approach to inventory systems, physical security, personnel security, cyber-threats and international regulations.

Co-operative and Community Benefit Societies (Environmentally Sustainable Investment) Bill

Ruth Edwards Excerpts

2nd reading & 2nd reading: House of Commons
Friday 11th September 2020 Commons Chamber

[Ruth Edwards (Rushcliffe) (Con)]

It is a pleasure to follow my hon. Friend the Member for Christchurch (Sir Christopher Chope)—a veteran, as he says, of sitting Fridays—on this, my first sitting Friday. I congratulate the hon. Member for Cardiff North (Anna McMorrin) on securing this Bill and on choosing this issue. Her clear concern for the environment and for strengthening the UK’s economy after the coronavirus pandemic is truly commendable.

As I have mentioned to the House before, now is the time for promoting green investments. Their performance, quality and potential are widely documented. The environment is an issue that the whole House and indeed both Houses stand firmly behind, and I am grateful to be a part of the debate on the Bill. As colleagues have said, Members will be aware of the benefits that co-operatives bring to productivity, innovation and entrepreneurialism across the economy. The Government are in no doubt about the added value they bring. Indeed, I know that previous Governments have legislated to make the setting up and running of our co-operatives simpler, cutting red tape and promoting parity between co-operatives and companies when it comes to areas such as registration and audit.

Across the UK, membership of co-operatives has remained firm in recent years, with more than 7,000 independent co-operatives employing nearly a quarter of a million people and serving more than 14 million members. Clearly, co-operative values are popular among a significant cross-section of society: values of democratic ownership; autonomy; independence; promoting common economic, social and cultural interests of their members; and concern for the community. Without this shared ownership, many people may feel that they have less of a stake in society, in their community and in the economy.

Co-operatives have historically proven their mettle. This year’s annual assessment of the sector by the industry network, Co-operatives UK, indicates that a staggering 76% of co-operative start-ups are still running after the first five years, compared with less than half of all new companies. At a time when we are embracing innovation and entrepreneurship, co-operatives have demonstrated that they remain a productive part of the UK’s competitive spirit going forward.

[Ben Everitt]

Perhaps my hon. Friend will agree with me—I think she will, given what she might be implying here—that co-operatives are an absolutely fantastic addition to the corporate landscape of the UK, but that is so because they are part of a diverse landscape of corporate structures. We must recognise that it is within the system that they are most precious to us and that we cannot push things too far.

[Ruth Edwards]

I completely agree with my hon. Friend. In fact, protecting the integrity of the co-operative model is one of the issues that I have with this Bill.

Returning to my opening remarks about the strength of green investments, I have made the case in the past that such investments should lead the way in helping us to recover from this pandemic. There is no point in building back to what we had before. Studies have shown the strength and resilience of these sorts of investments following from times of crisis and uncertainty, such as after the 2008 financial crisis.

The Bill outlines that the capital gained from green bonds is to be invested in a way that can maintain and enhance a biodiverse natural environment with healthy functioning ecosystems that support social, economic and ecological resilience. This entails the invested capital being centred around the green economy and climate action, including in new and emerging technologies, renewable energy, transport, housing and waste management. I remind the House that those are areas of considerable Government attention and investment in recent spending rounds, contrary to some of the opinions that we have heard today from those on the Opposition Benches. There are too many achievements to list today, but I am going to name a few relevant examples.

We have reduced emissions faster than any other G7 nation, while also leading the G7 countries in economic growth and providing £3 billion for contracts to help develop less established renewable technologies by 2022 to 2023. We have put funding into hydrogen fuel research and established the Hydrogen Advisory Council. The Chancellor recently announced a £2 billion green homes grant, which is going live this month, to support the retrofitting of houses across the country, benefiting communities and reducing fuel poverty. For electric vehicle markets, a round of private capital was raised in 2018, backed by the Treasury, bringing the private sector on board and directing significant and meaningful investment to the electric vehicle supply chain. Many of these plans will bring the added bonus of generating sustainable, high-quality jobs for the green economy. Our landmark reforms in agriculture, the first of their kind in 30 years, will promote sustainable and productive livelihoods for UK farmers.

Data show that co-operatives do great work in many areas of the country. The Government are doing a lot to remedy geographical imbalances in our economy, and I join them in supporting the UK-wide levelling up agenda. Although we seek to support the continued growth of co-operatives, we should remain mindful of the core and foundation principles by which co-operatives operate. I acknowledge the intention of the Bill to protect the mutual status of co-operatives while allowing access to new routes of capital, with environmental parameters as to how that capital is used; however, the autonomy and democracy contained within a co-operative is one of its core strengths and appeals, and I feel that much more detail is required to explain how, in practice, many of the Bill’s ideals will function without undermining those values. To me, there remain questions of compatibility between the ability of members to vote and the demands of investors parting with their money.

First, I believe that co-operatives would need to state in the clearest of terms how they intend to use the capital to attract the right mission-minded investors in the first place. That is especially important when considering that the Government have already increased the capital limit that can be raised from members from £20,000 to £100,000, as several hon. Members mentioned earlier. If we are talking about an ambition to attract investments greater than £100,000, investors will almost certainly demand a high level of detail in advance. In practice, it could be difficult for co-operatives to reach a democratic consensus on that detail. I worry that the uncertainty might be off-putting for some types of investors, and indeed the amount of money that the Bill intends to attract.

I also wonder about the autonomy of a co-operative after receiving such substantial levels of investment. One reason for the £100,000 limit on individual membership capital is so that no single member can command undue influence as a result of their financial contribution. I think it is naive to believe that investors will have no demands or will not lobby the membership to vote in certain directions, and would be satisfied paying into a co-operative—even a community benefit society—that they were otherwise not previously a member of, even with the other benefits that membership brings. That last point is especially true when shareholders only entitlement is, to quote the Bill,

“the general level of compensation”

otherwise afforded to members.

I also fail to see how investors will be enticed by the ability to redeem their shares for only the nominal value of the investment, as set out in the Bill. If individual retail investors or existing co-operative members seek to buy green shares, there is the potential that the risk of the instruments could be underestimated or understated. It appears from the Bill that there is no ability to withdraw their capital, counter to the usual way membership capital is treated in a co-operative.

That sort of risk, even generated from a well-intended scheme, resonates strongly with me because in Nottinghamshire we have recently had a huge eye-opener to how schemes set up with the greatest of intentions can go horribly wrong if the right risk management and governance is not put in place. I am referring to the, now failed, Robin Hood Energy company, which was set up by Nottingham City Council as a not-for-profit company to deliver affordable energy in a sustainable way to people living in fuel poverty.

That is a highly commendable aim, but the company’s structure meant that it did not have to pay dividends to shareholders, and it could use its savings to universally reduce the cost of energy to its customers. It promised average annual savings of £237— all very good aims, but throughout its operation the firm was reported to have admitted that the scheme did not provide value for money, and that dozens of cheaper tariffs existed elsewhere in the private sector.

[Tom Randall (Gedling) (Con)]

My hon. Friend is completely right to highlight the failure of Robin Hood Energy. She might be aware that it did not just have customers in Nottingham and Nottinghamshire; it had customers beyond that. I believe it was quite popular in Islington, particular in northern Islington, including with the local Member of Parliament. Does she agree that it was wholly unfair that the working-class taxpayers of St Ann’s, Sneinton or the Meadows in the city of Nottingham should subsidise the fuel bills of leafy Islingtonians?

[Ruth Edwards]

I certainly agree with my hon. Friend on that point, but they are subsidising those bills no more because, as he knows, the company has collapsed and is having to be rescued by British Gas. It has collapsed in financial ruin, and the result has been a huge economic and human toll, with tens of millions of taxpayers’ pounds lost—the current estimate is about £38 million—and 230 people will lose their jobs.

[Anthony Browne (South Cambridgeshire) (Con)]

Another example, which hon. Members might not be aware of, is the Co-operative Bank, which was one of my members when I ran the British Bankers Association. It collapsed amid huge financial and governance problems and ended up being bought by hedge funds. In fact, the Co-operative Bank is no longer a co-operative at all, and its debt is issued on the London stock exchange. That is another example of where good intentions do not lead to good results if there is bad governance.

[Ruth Edwards]

I thank my hon. Friend for that example, which highlights why good intentions have to be underpinned by practical and well-thought-through proposals.

Finally, in January the Financial Conduct Authority put in place regulations prohibiting the promotion of functionally similar financial instruments—speculative versions of so-called mini-bonds—to public consumers. The reason for that was the collapse of several providers of such mini-bonds, in particular London Capital and Finance, for example, which ended up leaving 11,600 members of the public at risk of losing nearly £240 million in total.

In conclusion, although I completely back the concept of green investments and have backed strengthening the co-operative sector, I cannot back this Bill today because there are too many fundamental problems and uncertainties within it. The green and sustainable elements of it are not defined, and there are massive areas of risk for investors that have not been properly guarded against. As hon. Friend the Member for Milton Keynes North (Ben Everitt) pointed out, the Bill also risks undermining the integrity of the co-operative model. These are not details that I feel can be ironed out in Committee, but fundamental problems, which is why I cannot support the Bill today.

Protection of Jobs and Businesses

Ruth Edwards Excerpts

Wednesday 9th September 2020 Commons Chamber

[Ruth Edwards (Rushcliffe) (Con)]

I want to start by paying tribute to the businesses up and down the country who have done so much to protect us at this time, businesses such as: Quotient Sciences in Rushcliffe, working day and night to develop coronavirus treatments; Ruddy Fine Gin in Ruddington, which converted its production line to make sanitiser and donated hundreds of bottles to vulnerable people; or Cheff— Clean Healthy Energising Fresh Food—in Lady Bay, which produces a range of fresh, healthy meals and has donated them to frontline NHS workers and the most vulnerable. I have always believed in supporting business, because business supports our communities. That is why I am so grateful to the Chancellor for the comprehensive response to the financial jeopardy many businesses found themselves in under lockdown.

[Suzanne Webb (Stourbridge) (Con)]

The furlough scheme is effectively credit to business. My grandparents used to call credit never, neverland. Does my hon. Friend agree that unlike the Opposition, who live in never, neverland and thrive on the delights of hindsight, this Government take their responsibilities seriously and want to support people back to work?

[Ruth Edwards]

The furlough scheme has done so much over the past few months for people in my constituency. In Rushcliffe, over 12,500 jobs have been protected by the coronavirus job retention scheme, over 3,000 self-employed people have been claiming support through the self-employed income support, and over £18 million in grants has been distributed to businesses in Rushcliffe. However, my hon. Friend is right that we must have sound public finances and that we cannot just carry on with support in this way forever.

Contrary to the claims of the parties on the Opposition Benches, support for business and jobs is not ending in October. It is changing. We must be honest with ourselves and the public about the future. Our economy is going to change. Coronavirus did not just press pause on businesses, but accelerated the big changes we will see in our economy and were always going to see in our economy in the medium term through the adoption of new technologies such as AI, data analytics and robotics, the fusion of our digital and physical worlds, changing the world of work as we know it and changing the mix of skills in the economy.

Change is unsettling. It makes us anxious and fearful. However, it also provides huge opportunities and we must make sure that those opportunities are there for everyone. The measures the Government are now taking as part of their plans for jobs will help to make sure that that is the case: over £100 million to triple the scale of traineeships; £32 million to recruit careers advisers for 250,000 people; double the number of work coaches to help people find jobs where they may have been lost; triple the number of sector work-based placements; and investing in apprenticeship creation for people of all ages. That is what the Government are, and should be, focused on: training people for the new economy and the new opportunities it will bring.