Communities: Charities and Volunteers

Stephanie Peacock Excerpts

Wednesday 13th February 2019 Commons Chamber

[Stephanie Peacock (Barnsley East) (Lab)]

It is a pleasure to follow the hon. Member for Banbury (Victoria Prentis), who spoke so passionately.

There is much that makes me proud of the communities I represent across Barnsley East, especially our local charities and community groups, many of which I have had the privilege to visit in recent weeks.

Everyone who cares for a loved one with dementia knows of the immense emotional strain the condition imposes on those who live with it and those who care for them. I know that I speak for many people across Barnsley when I thank BIADS—Barnsley Independent Alzheimer’s and Dementia Support—and Butterflies, two fantastic community groups that provide outstanding support, help and comfort for those living with dementia in our community.

I cannot deny the sense of shame I feel in telling the House that today, in 21st century Britain, after years of austerity, there are children going hungry and families—many of them in employment—who are unable to put food on the table without resorting to a local food bank. Our community came together 30 years ago to feed the families of men who had no option but to go on strike to defend their industry and their way of life. Again, our community is coming together to feed families who face the most desperate conditions because of universal credit, the low-wage insecure economy and wider austerity. I have nothing but praise for our food banks—for the volunteers who give their time and their heart to run them, and for the generosity of all those who donate.

[Nick Smith (Blaenau Gwent) (Lab)]

My hon. Friend is making a fantastic speech. Does she agree that the Trussell Trust provides fantastic leadership with its food banks across the country, and that very often it is people from faith groups, particularly churches and chapels, who do so much to support this really important work?

[Stephanie Peacock]

My hon. Friend makes an incredibly important point, and one that I was about to touch on.

In the coming school holidays, food banks will again be busy. I cannot help but ask: surely it must be possible to create a society where children do not go hungry.

Just as our food banks battle want, our churches battle the scandal of homelessness. A man died sleeping on our streets last year, simply because he had nowhere to live. The homelessness he experienced is a situation that far too many people face. I praise the Barnsley Churches Drop-In, which provides support to those who are sadly homeless. But again I say: it does not have to be like this.

Every time I visit charities and community groups, I see the amazing work they do and the real difference they make in our community, but there is another side to the story. Many of our brilliant local charities and community groups in Barnsley have been affected by this Government’s austerity since 2010. Cuts to public services have forced them to take on extra work and have put them under increasing pressure. Cuts amounting to 40% make Barnsley Council the worst affected in the country and have left it struggling to support those local charities and community groups.

What the Government do not seem to understand is that cuts have consequences. Luminar, a Barnsley charity where volunteers helped children and families affected by domestic violence, has been forced to close. The Barnsley Bereavement Support Service, which supports those struggling with the shock of losing someone close to them, is short of funding and faces closure. That is shameful.

Despite the many difficulties, so many fantastic groups—far more than I can mention here today—continue to support local people. They do so thanks to the efforts of the brilliant volunteers who work for them. They are passionate, determined and dedicated to helping others. They give so much of themselves in supporting our community. It is time that the Government supported them and gave them the proper funding that they need and deserve.

On one visit to a local community group, I saw a sign that, more than anything else, sums up the local volunteers in my constituency. It simply said, “Volunteers are not paid, not because they are worthless, but because they are priceless.” I could not have put it better myself.

[Several hon. Members rose—]

Cat Welfare

Stephanie Peacock Excerpts

Tuesday 11th December 2018 Westminster Hall

[Rehman Chishti]

I, too, pay tribute to the work of that cattery and congratulate the hon. Lady on the new member of her family. I am sure that her cat will be treated like a member of the family, as cats are throughout the country.

I could look at several cat welfare issues, including the public education campaign, cat breeding legislation, the control and regulation of airguns, which was raised earlier, and fireworks.

[Stephanie Peacock (Barnsley East) (Lab)]

I congratulate the hon. Gentleman on securing the debate. As a cat lover, I am very lucky that Trixie the cat came to me as a stray, and that, growing up, we had Tippy the cat, who came from the Cats Protection League. The Cats Protection League’s 2022 agenda encapsulates a lot of the issues that he has talked about, from microchipping to reducing violence against cats. It is really important that we get behind that campaign.

[Rehman Chishti]

I am so glad that I gave way, because the hon. Lady talked about Cats Protection, which I have met with and which has written to other Members and me. I was delighted to attend its Christmas parliamentary reception, along with other colleagues here. It does amazing work, and it is important that we work with it to ensure that we get the right kind of framework.

I was making the point that we could look at several cat welfare issues, but I will focus on two: the compulsory microchipping of all cats and reporting after an accident.

Affordable Credit for People on Low Incomes

Stephanie Peacock Excerpts

Wednesday 5th December 2018 Westminster Hall

[Frank Field (Birkenhead) (Ind)]

I beg to move,

That this House has considered the provision of affordable credit for people on low incomes.

It is a pleasure to serve under your chairmanship, Sir David, although I hope it will be not just a pleasant time, but a very productive one. We are anxious to leave plenty of time for the Minister to reply because we want, and hope, to make progress with the debate. I address him as an hon. Friend, because in this debate I am drawing information from Feeding Britain, a charity that he, I and other MPs from different parties set up. This debate on the provision of affordable credit for people on low incomes draws on the experiences of groups around the country that are part of the Feeding Britain network. I thank those involved in the network, whose information I draw upon, but particularly the parents and grandparents who have provided information for this debate.

As I gave him much of the information beforehand, the Minister knows that there is far too much to cite in this debate from people in the Feeding Britain network who want to have their say. I will instead focus on an everyday story of Provident. I do not know whether it worries about Salisbury, but Provident is putting out these leaflets in the Wirral, personally addressed, and on the front are pictures of a little girl and the words, “The look on her face”, “Decorating grandad” and “Visiting loved ones”, all playing on the feeling of exclusion that many poor people feel all the time, but especially at Christmas.

Behind those leaflets there is a carefully targeted business plan, because certainly Provident stepped up its activities with the beginnings of the roll-out of universal credit. Officers of Provident were knocking on doors with application forms in one hand and fistfuls of money in the other, asking whether people wanted to sign up or needed a loan, knowing that while we still have difficulties with universal credit today, we certainly had mega-difficulties when it was first rolled out in Birkenhead.

[Stephanie Peacock (Barnsley East) (Lab)]

I congratulate the right hon. Gentleman on securing this important debate. Particularly with people facing problems such as universal credit, does he share my concern that a growing number of people—I think it has gone up by 300,000 in the last year—rely on credit to pay for everyday essentials? That is hugely unsustainable, and we need to look at mixed alternatives.

[Frank Field]

Indeed; we will try to draw the Minister on that. Part of the leaflet concerns short-term loans, saying that the APR is 535.3%; I hope Members of Parliament know what APR—annual percentage rate—is. I will not press the question, but the Minister has one degree from Oxford and one from Cambridge, so I wonder, if we were looking at a £300 loan and had to pay it back within three months, what the loan would cost and what the rate of interest would be. I am not going to pause; I will give the answers. It is one of those very easy quiz games, but a horror quiz game, because if the repayment is over three months, Provident wants £429 back at an annual interest rate equivalent to 1,557.7%. That is just one example. Constituents borrowing £350 and paying it back over 12 months have to pay back £655.20.

Finance (No. 3) Bill

Stephanie Peacock Excerpts

Committee: 1st sitting: House of Commons
Monday 19th November 2018 Commons Chamber

[Julian Knight]

That is exactly right. The point may not be specifically germane to the amendments we are debating, but my hon. Friend is absolutely correct about the context. This is just part of one strand of the strategy that we have to bring about an increase not only in home ownership but in the number of properties available to rent and basically for housing throughout the country. We know from the number of households that are forming that we need to build much more than we are building. This measure is part of considering the issues in the round, so I congratulate the Government in that respect.

We are now seeing the effects of things such as Help to Buy and of measures that—pardon the pun—build on Help to Buy, such as the abolition of stamp duty for shared ownership properties worth more than £300,000. According to the Financial Times—such an august newspaper that it never actually employed me—the rate of home ownership among first-time buyers is now at its highest in a decade. There is a long way to go before we get anywhere near where we were in the 1980s, for instance, but it has been a remarkable turnaround compared with where we were in 2010. The abolition of stamp duty for these properties sends a strong message, not only to people in shared ownership homes but to people more generally, that opportunities are out there and that we will help them by not imposing stamp duty.

Let me turn to tax fairness for individuals, which, I think, overarches the clauses and amendments to the Bill. We would not know this from hearing some of the arguments in this place, but the tax gap in the UK is one of the lowest in the developed world. That does not mean that there is not more to be done. Although we took some first steps in this Budget with internet companies and with organisations such as Amazon, everyone recognises that we need to go further, and we hope to move together in an international context to ensure tax fairness.

Since 2010, we have seen a cracking down on evasion—for example, in film investment schemes and schemes that collectively invest in property to avoid stamp duty. There has been a real concentration by Her Majesty’s Revenue and Customs and Treasury Ministers to ensure that people are aware that everyone should be paying their fair share in society. The hon. Member for Aberdeen North (Kirsty Blackman) mentioned tax equality and how much people are paying at the top end. I find it very telling that the top 1% in our society currently pay 28% of the tax, whereas the top 10% pay 60% of the tax. People would not believe that given the discussions that go on so often. However, this Government have done more towards closing that tax gap and towards ensuring equality in the tax system than anyone else in my lifetime. They have been very laser-like in their focus, and they should be congratulated on that.

[Stephanie Peacock (Barnsley East) (Lab)]

Does the hon. Gentleman agree that that gap will get wider if answers to my written questions are correct? In answer to a parliamentary question that I tabled, the Government admitted that the majority of their tax cuts would go to upper-rate taxpayers. Is that not exactly why we need the Government to publish the distributional impact of the tax cuts they are making?

[Julian Knight]

I am afraid that I really do not see the hon. Lady’s point. What I do see is the fact that we are giving tax cuts to 32 million people across the board, and, instead of being so churlish, the Labour party should welcome that.

--- Later in debate ---

[Peter Dowd]

Out of courtesy I will respond to the hon. Gentleman. What we want is a fair taxation system, which is completely and utterly alien to the Government. It is as simple as that.

[Stephanie Peacock]

My hon. Friend pointed out that the Government are in denial on child poverty. That is absolutely clear in my constituency in Barnsley, where 6,000 children live in poverty. Does he agree that poverty is a political choice caused by the Conservative party?

Social Mobility and the Economy

Stephanie Peacock Excerpts

Wednesday 28th March 2018 Westminster Hall

[Stephanie Peacock (Barnsley East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies, and to follow the right hon. Member for Bexleyheath and Crayford (David Evennett), who made a powerful speech. I congratulate the right hon. Member for Putney (Justine Greening) on securing this important debate on social mobility and the economy. She made a passionate and practical speech.

People in my community too often feel like social mobility no longer applies to them. I am told time and again by my constituents during my surgeries and on the doorsteps of Barnsley East that the economy is not working for them, and that they are being held back. It is difficult to disagree or to reassure them because they are not entirely wrong. In my constituency and across Barnsley, someone’s postcode still to this day determines their life chances and what they can, or rather cannot, become.

The Social Mobility Foundation has identified that Barnsley sits in the bottom 10% of local authorities in the country on the social mobility index. I am sure that, through her experience of growing up in nearby Rotherham, the right hon. Member for Putney knows the area well, and is at least familiar with the challenges it faces. She will also know that she remains in the minority for those born and raised in south Yorkshire. To put it simply, starting from childhood, life chances in Barnsley are far below those provided elsewhere. As many hon. Members have said, that must change.

A huge percentage of children in Barnsley’s classrooms are eligible for free school meals and come from disadvantaged backgrounds, but fewer than 10% of those children will go on to study at university—one of the lowest rates in the country. That is put into perspective, as my hon. Friend the Member for Rotherham (Sarah Champion) outlined, when compared with, for instance, the 50% of disadvantaged children in Kensington and Chelsea who will go on to higher education. Despite those struggles, Barnsley’s schools have fewer resources to progress.

Once past those struggles in childhood, the economy lags in providing the opportunities for people to get on in life. The mining industry, which helped to shape our community, once provided employment for more than 30,000 people. Although the work was hard and often dangerous, it was secure and well paid. The economic landscape is different now. The largest private sector employers in my constituency are in distribution. Both unemployment and youth unemployment are substantially higher than the national average. The average weekly wage in Barnsley East is a full 10% lower than the UK average. Across the area, many people are trapped in insecure and precarious employment, on short-term or flexible contracts. There is less certainty of work, no guaranteed income, no planning past the next week’s rota, which may change at the last minute, and no economic security to provide food or pay the bills. Such an economy is not conducive to social mobility.

For social mobility in Barnsley, and my constituency of Barnsley East, we desperately need an inclusive economy that provides the security of wages, and the opportunities that people have missed out on for too long. We need secure, long-term employment with a guaranteed income that allows people to plan, save and look further than the next pay packet. Most of all, we need an economy that works for people in Barnsley, that allows workers to advance and progress; that allows children to aspire and achieve; and that provides the opportunities and conditions for genuine social mobility, which has evaded our community for too long.

--- Later in debate ---

[David Linden (Glasgow East) (SNP)]

It is a pleasure, as always, to serve under your chairmanship, Mr Davies. I warmly congratulate the right hon. Member for Putney (Justine Greening) on an excellent speech. It is clear from her time as Secretary of State for Education that she had a desire to advance social mobility, and it is shame that she is no longer in that position.

When I saw this debate on the Order Paper, I welcomed the opportunity to take part in it. I am conscious that, as somebody who was born to a single parent, and who grew up on a council estate in Glasgow and left school at 16, I am probably the exception to the rule in terms of having got to the House of Commons, given my class and the people I went to school with. I grew up in the shadow of the Cranhill water tower, and I now work in the shadow of Big Ben. It is important that we have come to speak in this debate, and that we do not pull the ladder up behind us.

I do not want to get into an egg-throwing match on education with my colleagues from Scotland in the Conservative party, because I think it has been a constructive debate. We can do more on education. My wife is a primary schoolteacher, so it is not an alien concept to me. I am disappointed that the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) did not mention that the Scottish Government are investing in the pupil equity fund. I see that in my constituency, with organisations such as Beacon Warriors and Licketyspit doing work in schools. As I say, I do not want to make that a party political point.

One area that I will focus on today is internships, but before I do, I will address the issue of apprenticeships. I am grateful to the hon. Member for Chichester (Gillian Keegan), who is a fellow former modern apprentice. It is important that we put more emphasis in this place on modern apprenticeships. I am glad that we have invested in apprenticeships north of the border. Politicians are beginning to understand that we cannot just have a factory churning out people who go through primary and secondary education, go to university, and then get their masters. In order to have a diverse economy, it is important that we invest in apprenticeships. I make the plea that I always make, which is for pay equality for young people. Unfortunately, at the moment under-25s are excluded from the national living wage, and apprentices under UK law can still be paid as little as £3.50 per hour. If we are serious about building a country that works for everyone, we have to pay people appropriately.

The main thing I want to speak about is internships. I had the fortune to undertake a political internship a number of years ago. It was unpaid, and there is a wider debate that we could have about such internships. However, at this time of year when we, as MPs, are looking at our staffing budgets, this debate challenged me to think about what I am doing as a Member of Parliament to bring through the next generation of politicians—not people who studied Philosophy, Politics and Economics at university, but people from different backgrounds. That is why I am very pleased to be advertising a paid internship. It is called the John Wheatley internship in recognition of a Labour MP for east Glasgow in the 1920s who came to Parliament and did an immense amount of good on housing.

There is a challenge to us as politicians to ensure that, when we take people on in our offices, we pay them appropriately. If we are serious about getting people into politics and serious about our offices representing our communities, we cannot just take people from the local university societies.

[Stephanie Peacock]

Working with the local college, Barnsley College, I have a living wage apprentice in my office. My apprentice, Adam, works in my office and then spends some of his time studying. Does the hon. Gentleman agree that it would be good to encourage Members across the House to have political internships and apprenticeships both in Westminster and in the constituency?

[David Linden]

Absolutely. I genuinely and warmly commend the hon. Lady for having an apprentice who she pays the national living wage. This is a subject very close to my heart, and the leadership she is showing is to be commended—others in the House should certainly be doing so. The issue of internships is something we have to grapple with. We know that a number of offices have unpaid internships—I am sure some of my colleagues have people on unpaid internships—but if we are serious about getting people from different backgrounds involved in politics, we need to show leadership.

On social tourism, I get quite annoyed at The Guardian for continuing to use the same photograph of run-down flats that were demolished about 10 years ago, but it is fairly well known that Glasgow East is not exactly the richest part of the world. In my constituency, the headteacher at Sandaig Primary is open about the fact that some of the children who go there have never seen sand. One of the ways we can take people from different backgrounds and show them different things is through the concept of social tourism. I commend the Family Holiday Association. Getting people into different environments and out of their comfort zone is hugely important.

This has been a very good debate, although it is a shame that it was only 90 minutes. There is definitely the appetite from Members for a Backbench Business Committee debate. I urge the right hon. Member for Putney to continue. I think she will find cross-party support.

Business of the House

Stephanie Peacock Excerpts

Thursday 11th January 2018 Commons Chamber

[Paul Maynard]

My right hon. Friend has been a doughty and long-term campaigner on the issue of hospital car parking, and I pay tribute to him. He raises an important matter that I am sure will be discussed in more detail at the next Health questions, but he is of course always welcome to seek a Westminster Hall debate to raise what is an important issue for many Members on both sides of the Chamber.

[Stephanie Peacock (Barnsley East) (Lab)]

While conducting a survey on bus services in my constituency of Barnsley East, I heard time and again that the needs of residents are being ignored by bus companies that prioritise profit over passengers. Can we have a debate in Government time on allowing local authorities to operate bus companies to ensure they are run in the interests of local people so that bus services remain just that—a service?

[Paul Maynard]

The hon. Lady will be aware that we recently passed the Bus Services Act 2017, which gives much greater opportunities to local councils to choose how best to deploy their bus services. She will also know that next Thursday’s Transport questions is a perfect opportunity for her to raise that question in the Chamber with a Minister who knows a better answer than I do.

Banks and Communities

Stephanie Peacock Excerpts

Thursday 11th January 2018 Westminster Hall

[Martin Whitfield]

Indeed, I will come on to the statistics about the existence of branches in the United Kingdom.

My hon. Friend the Member for Ogmore (Chris Elmore) tells me that when the branches close in his constituency towns, one town will be left with no bank and the other town with just one. That one bank will serve 58,000 people. This debate is more encompassing than just a recent set of closures. It seeks to ask a very pertinent question about the responsibility and the relationship between retail banking and the communities they should be so proud to serve.

[Stephanie Peacock (Barnsley East) (Lab)]

I congratulate my hon. Friend on securing this important debate. The banking sector has been promoting research into issues that often result from branch closures, such as financial exclusion and isolation. Does he agree that it would be useful for banks to have the results of such studies before they commence local branch closures, such as the closure in Hoyland in my constituency?

Terror Attacks: Government Financial Support

Stephanie Peacock Excerpts

Wednesday 6th December 2017 Westminster Hall

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

I beg to move,

That this House has considered Government financial support for victims of terror attacks.

I believe this is the first time I have spoken with you in the Chair, Mr Davies. It is nice to see you. We do not have long this afternoon, so I want to focus on recent attacks within the UK and especially in my constituency, the immediate financial support available from the Government and the Government-backed Pool Reinsurance Company system.

Six months ago, on 3 June, my community was attacked by murderous cowards. Three men killed eight innocent people and injured many more before being shot by the police. The response of all our emergency services was absolutely phenomenal. It was a genuine honour to attend the tri-forces commendation service earlier this week, which acknowledged the valour and bravery of many of the police officers from the three forces and from members of the public. The wider public response was equally overwhelming. It included offers of somewhere safe to hide, somewhere to charge a mobile phone to keep in touch with loved ones, and free rides to safety from local cabbies.

There was also a huge effort to reclaim the area as quickly as possible and make it once again the most vibrant and dynamic food and drink venue in London. The whole team at Southwark cathedral and other local organisations deserve praise for their efforts to bring the community back together as quickly as possible after the attack. The Prime Minister talked about the attack on the night. She chaired Cobra the next day, but it took 26 days before the attack was officially certified as a terror incident. That had important ramifications for local businesses. The certification process must be updated. Given modern communications, that kind of delay is simply unacceptable.

In contrast, the police cordon was necessary for their investigation, but it meant that local businesses lost access to their premises for 10 days. The latest estimate is that their losses reach almost £2 million. That is due to direct loss of stock and produce, lost orders and at least one firm that lost a contract to supply restaurants and hotels across London. The cordon and the attack itself meant the loss of bookings and reservations at local restaurants and at the London Bridge Experience, for example.

The Borough Market Trust has done a huge amount. It has been a vast, incredible effort. It is running incredible events and has raised £50,000 from other member businesses to support those affected. A similar sum has been raised from public donations and £16,000 has been raised from #LoveBorough merchandise. The trust directly supports new and small start-up businesses and has been pivotal in keeping some of those microbusinesses afloat after the attack, with at least one person’s personal mortgage being covered through trust funding due to a lack of compensation available from central Government. The trust also suspended rents and worked with other local employers to drive up trade.

It will not be often that you hear Labour MPs praising News UK, Mr Davies, but its head office is at London Bridge, and some of its staff were affected on the evening of the attack and were locked in the building overnight. Since the attack, it has provided £25,000 through lunch vouchers for its staff to directly support Borough market. That has been incredibly well received by market traders, who are directly affected. My local Labour council has provided rates relief of £104,000, and the Mayor of London, Labour’s Sadiq Khan, has provided close to £200,000 in help.

The response from the public, businesses, councils and City Hall is very welcome, but is in stark contrast to our national Government. In the six months since the attack, I have met Department for Business, Energy and Industrial Strategy and Treasury Ministers, local traders and other representatives—I am grateful to the Minister for his time in those meetings—and the Prime Minister visited the area with me and the Australian Prime Minister, but sadly to date the Government have still not provided a penny of support to those directly affected.

[Stephanie Peacock (Barnsley East) (Lab)]

Businesses are not currently covered for the consequent losses that my hon. Friend is talking about. There have been calls for that insurance gap to be closed. Given that the situation could be so substantially changed by such a small change to the Reinsurance (Acts of Terrorism) Act 1993, does he think that the Government should act? Are insurance companies doing enough to help the situation?

[Neil Coyle]

I will come on to talk about that point directly. The short answer is that yes, the Government should act and no, some insurers have not done all they could and should do to rectify the issue.

There has been an absence of immediate financial support and compensation for those affected. Were it not for business-to-business support and public donations, some of the businesses would simply have gone under and people would have lost their jobs. The lack of support has dismayed and distressed local employers. After terror attacks on British tourists abroad, compensation systems were updated in 2012. If we can update systems to ensure that innocent British civilians attacked abroad are better protected, we must be able to better protect British businesses and employers from terror attacks here. Terrorists should not be able to put British jobs at risk or force companies under owing to inaction on compensation. I hope the Minister will confirm today how the Government will compensate businesses still affected by June’s attack and those involved in any future incident.

Future incidents are relevant. On the many screens in this building, we are told every day that the threat level remains severe. We are told that another attack remains very likely, yet no effort has been made to ensure that businesses are protected in the event of a future attack. The Government have yet to act to prevent delays to the certification process. In relation to the point my hon. Friend raised, some insurers used the 26-day delay in certification to avoid making payments initially. That was unacceptable. Some refused to make payments initially due to the way legislation and associated insurance clauses are drafted. Most insurers have now paid out, following interventions from me and the Borough Market Trust acting as a broker. AXA and RSA and others have made payments to some of those affected. The only insurer I am aware of that has failed to pay out is Aviva. It has let my community down, and that has left a nasty, negative stain on its corporate conscience. I hope it will re-examine that.

My hon. Friend is absolutely right that the UK’s current insurance framework dates back to the Reinsurance (Acts of Terrorism) Act 1993, which established the Pool Re system. That system was built following Provisional IRA attacks on infrastructure that were designed to hit the UK economically. The Act was deliberately drafted to cover physical damage to property and buildings following such incidents as the Manchester Arndale and Canary Wharf attacks. Today’s risks are very different. The kind of terrorism we have seen more recently is designed to target how we live and who we are, and specifically targets innocent civilians and uses vehicles and knives. We know this—sadly, we have seen it—and the Met, the Home Office and wider Government know this, yet for two years Ministers have apparently ignored requests to update the system. Government action is required. Where Pool Re can act on its own, it has. It has extended terror insurance to cover cyber-attacks from next year. It can do that within the powers it has, but to change the definition of physical damage requires legislation and Government action.

Physical damage is not the only thing that needs to be covered. Knife attacks must be incorporated. When introducing legislation, I hope that the Government will look at defining what represents terror and what represents business interruption more tightly to distinguish between payments. The Government could also oblige large employers or those with higher turnover to have better or more extensive coverage, and look at why many small and medium-sized enterprises do not have terror insurance coverage, even in high-risk areas. However, none of those issues can be addressed if legislation is not introduced. I should add that introducing legislation and making those changes will not result in new costs to taxpayers, who would be covered by the pooled system.

For my part, I commit to helping to close this loophole in any way I can. Sadly, I have seen the impact on local businesses of the current inadequate system. I am really grateful to the Association of British Insurers, the British Insurance Brokers’ Association and all others who have worked with me on this issue since June. There is widespread acknowledgment of the need to close the loophole. However, just as public and other financial support for the area should be matched by Government compensation, recognition of the outdated insurance model should now be matched with the political will for modernisation from the Government.

As things stand, if another attack occurred today, six months after London Bridge and Borough market were so brutally attacked, employers would face exactly the same problems. In failing to act, we have a Government that risks undermining their rhetoric about not letting terrorists win. If terrorists truly are not to win, action is needed. I hope the Minister will be able to tell us today that the Government will introduce measures to deliver belated compensation to those affected in my constituency. I hope he can also tell us how the Government will administer future compensation, improve the certification process to prevent future delays, and improve the Pool Reinsurance system. I look forward to the Minister’s response.

Taxation: Beer and Pubs

Stephanie Peacock Excerpts

Tuesday 31st October 2017 Westminster Hall

[Mike Wood]

The hon. Gentleman is absolutely right. It is particularly troubling that those pubs that close in our towns and city centres are often housed in large buildings that are very difficult to fill and that remain as decaying monuments to the changing nature of consumer behaviour.

[Stephanie Peacock (Barnsley East) (Lab)]

Pubs and breweries in Barnsley East contribute more than £12 million to the local economy, but on the particular issue of pub closures, does the hon. Gentleman agree that we need to consider updating the compulsory purchase powers and the planning system, which would give more powers to local communities?

[Mike Wood]

I think that is exactly what the Government have done over the past 12 months in changing the rules on permitted development in particular. Obviously, now we have to go through planning processes before pubs can be converted.

The licensees and customers at many of our pubs contribute in both a financial and practical manner to their communities, by funding and running sporting and other activities, such as football, darts, dominoes and cribbage, but also through community activities, a large number of which are run through our pubs. Of course, because pub customers are extremely generous people, initiatives such as PubAid are able to generate about £100 million each and every year for good causes in communities in all of our constituencies.

For all these pubs to flourish and remain at the beating heart of their communities, they need a transfusion of investment and custom that will come with a freeze in beer duty and a reduction in their business rate burden. I have set out why our beer and pub industry is so important economically and socially, but it faces the twin threats that I referred to earlier: the increases in business rates and in beer duty. The three duty cuts, last year’s freeze and the ending of the escalator secured about 20,000 jobs, boosted confidence in our brewing and pub businesses and meant that more beer was sold than would otherwise have been the case, boosting the Treasury’s total tax take, if we include both direct and indirect taxation. On business rates, the Chancellor has already recognised the pain caused to pubs by the disproportionate burden caused by valuation based on turnover; about half of that turnover may be beer duty and VAT that the pub is collecting on behalf of the Government.

The £1,000 pub relief announced in the March Budget is extremely welcome, particularly for smaller and medium-sized pubs. However, it is particularly important that that relief is now expanded and extended, because our pub sector pays nearly 3% of all business rates despite making up just under 0.5% of business turnover. It is hugely, disproportionately overtaxed through business rates.