Oral Answers to Questions

Wendy Morton Excerpts

Tuesday 19th December 2023 Commons Chamber

[Wendy Morton (Aldridge-Brownhills) (Con)]

19. What steps his Department is taking to reduce taxes.

[The Chancellor of the Exchequer (Jeremy Hunt)]

Thanks to the difficult decisions the Government have taken on inflation and debt, the autumn statement this year was able to deliver the biggest package of tax cuts to be scored since 1988.

--- Later in debate ---

[Jeremy Hunt]

I thank my hon. Friend for her question. As she knows, the marriage allowance is currently £1,260 per year, and it has been fixed at 10% of the personal allowance since it was introduced in 2015. On this side of the House, we believe it should be a woman’s choice, and we want to make that choice as real as possible for every family. For that reason, we think the best thing we can do is to bring down the taxes paid by working people to put more money into the family budget, and we were happy to make a start on that in the autumn statement.

[Wendy Morton]

Like many of us in this place, I am a big supporter of Small Business Saturday, and it is important to remember that small businesses are the backbone of local communities all year round. Many are unlikely to be able to take advantage of the Chancellor’s very generous and welcome expensing package, so what additional measures will he continue to consider to support all businesses great and small, including perhaps even corporation tax reductions?

[Jeremy Hunt]

I thank my right hon. Friend for her question. She will know that 70% of trading businesses only pay the lower corporation tax rate of 19%. That covers the vast majority of small businesses. I used to run my own business; I ran it for 14 years before I came into Parliament. I could not agree with her more: small businesses are the backbone of the British economy, which is why we are tackling the scourge of low payments and we rolled over the 75% discount on retail, hospitality and leisure business rates in the autumn statement.

High Street Bank Closures and Banking Hubs

Wendy Morton Excerpts

Thursday 11th May 2023 Westminster Hall

[Wendy Morton (Aldridge-Brownhills) (Con)]

I beg to move,

That this House has considered the matter of high street bank closures and banking hubs.

I thank you for being in the Chair, Mr Davies, and Members from both sides of the House for joining us in this debate. The numbers may be low, but I think that is because it is a Thursday, and we have just had the coronation. I know that this is an important matter, as it has been raised across the House for some time.

Banks are an important part of the fabric of our high streets and communities, providing access to cash, a vast range of banking services and, importantly, advice. At a time when we are all concerned about cyber-security, scams and fraud, this is particularly relevant. I appreciate that, like many businesses and commercial entities, banks are understandably facing changes in customer transaction patterns, requirements and behaviour. Some of these started before the covid-19 pandemic, but much has changed since that time, when the pandemic necessitated us all to live our lives very differently, not least in terms of technology.

Despite that, banks still provide an essential service—one that I believe neither a call centre nor a phone app will ever be able to fully replicate for all customers. When I heard in March this year that NatWest in Aldridge was due to close at the end of July, I was quite alarmed and disappointed. That will leave not only Aldridge but the entire constituency with just one bank—the HSBC. Surely that cannot be right. The issue does not just affect the Aldridge-Brownhills constituency or the west midlands; we are seeing a worrying pattern and up and down the country. The stats for 2023 alone show that 114 HSBC branches, 95 Barclays branches, 52 NatWest branches and 23 Lloyds branches have closed or are scheduled to close. That is 352 closures altogether. I know there are other bank branches closing on top of that, including TSB and more.

This topic is of interest to colleagues on both sides of the House, as I have said. That is clear from the number of parliamentary questions about it that have been submitted to the Treasury, which I am sure the Minister is aware of. On the day I raised this matter in the Chamber with the Leader of the House and requested a debate, I was not alone. I maintain that MPs should be champions of their communities, which is why I am standing here today bringing this matter to the attention of Ministers. Why am I doing it? Because every time a bank closes, our constituents—often the most vulnerable in our communities, who need a little bit of extra help —lose a service.

Our high streets, the very streets we seek to regenerate, risk seeing a reduction in footfall. Our businesses, charities and local organisations find it all so much harder to do business and transactions. I want to share a couple of examples. A local charity explained to me at the weekend how they always had an informal arrangement with their local bank so that when they did major fundraising collections in the village, they could go early to that branch and the staff would take the collection buckets and count out the change for them—hopefully there were some notes in there too, not just loose change. That is a service we cannot always expect a small local post office to offer.

A local business, Taylors Auto on Northgate, set the scene very well when on the closure of Lloyds last year they said that they have been running the business for 12 years, trading there for years and been customers for all that time. Without the bank in Aldridge they would have to go to Lichfield or Walsall. So many businesses in my constituency are family-run small and medium-sized enterprises. They are part of the community as well as the business network. My local residents are also affected. The number of elderly people in my constituency is above the national average: 26.7% of people are over 65 in the Aldridge Central ward, compared with the UK average of 18%. Although IT is familiar to many, it is by no means accessible to all. That can be because of a lack of tech skills, or a lack of access to a smartphone, a laptop, a computer or even the internet.

I will make two further points. First, if IT must be the only option, access to IT must be affordable and available. As many know, the cost of an internet connection has increased because of inflationary pressure. Secondly, personal independence must be maintained. Not everyone wants, or is able, to ask their children or their partner to help them every time they want to pay a bill. This is about dignity. Unless Members generate greater awareness of these issues, I fear that we will simply see these invaluable services continue to disappear quietly from our streets. When they are gone, they are gone.

Experts warn that in-person banking will not exist in a matter of years. While researching this topic, I discovered that 5,391 branches were lost between January 2015 and January 2023—an average of 54 branches a month. Do the maths: at that rate, there will no longer be in-person banking anywhere by 2027.

The recent announcement of the closure of NatWest’s Aldridge branch, which came so soon after the closure of Barclays and Lloyds branches, will be our fourth loss in just three years. That highlights the speed of loss. In-person banking offers clarity on payments and trustworthy advice, as well as convenience and accessibility to people’s own money. Surely that is a freedom that we should all have.

Alongside the end of in-person banking on the high street, we are also witnessing the decline of ATMs, especially those that are free to use. Before the pandemic, the magazine Which? produced a worrying report setting out that one in 10 free cashpoints across the country closed or switched to a fee-paying machine during a 17-month period. The rate in poorer communities was higher than in the least deprived areas of the country. Some 979 free-to-use machines in the poorest communities were lost. That will inevitably force those most reliant on cash, who can least afford to pay for withdrawals, facing charges or being forced to travel to access their money for free; surely, that cannot be right. By its very nature, cash is transactional. We must ensure that people and businesses of all sizes that depend on their ability to freely deposit and withdraw cash at a time of their convenience can continue to do so.

Businesses such as Pat Collins Funfairs, which is a long-standing family business from my constituency, have raised this issue of access to cash with me. It is by no means the exception. In 2021, a Treasury consultation proposed ensuring “reasonable access” for withdrawal and deposit facilities for personal customers, and deposit facilities for small and medium-sized enterprise customers. I ask my good friend, the Minister—I know that he has not been in post long—whether that commitment remains. If so, how is it that we are allowing such a decline in access to cash and banking to happen?

It is time to incentivise and attract people back to the high street, so that we can continue to support local businesses and communities and ensure that our town centres survive and thrive throughout the 21st century. We hear that shared banking hubs and post offices must play a greater role. I agree, but we must put this into some sort of perspective and be proactive. Banking hubs offer a counter service where customers of all major banks and building societies can carry out regular transactions throughout the working week. The hubs also provide dedicated rooms where customers can see community bankers from their own banks to discuss more complicated banking issues. That seems like a sensible and straight- forward approach.

However, according to Link, even with the closures in my constituency, which I have already addressed, Aldridge-Brownhills requires no additional services and certainly has not been recommended for a hub. In fact, the vast majority of Link’s investigations when banks are due to close conclude with “no additional services recommended”. Will my hon. Friend the Minister tell us why we have to wait until a community has lost everything before we take action? Surely that is too late and we need to get ahead of the game. I think that NatWest is still part of the Royal Bank of Scotland, in which I think the Government may still have a stake. If they do, I gently urge the Government to take another look at the issue of hubs for communities.

I turn to the role of post offices. We have some good post offices across Aldridge-Brownhills. Banking framework 3, announced in February, is to be welcomed. It will allow the customers of 30 branches across the country to carry on making cash payments and withdrawals in a post office, and it will allow small businesses to deposit cash until 2026. But the question is, what happens then? Again, the framework relies on access to post offices. In Aldridge, the post office sits outwith the main shopping centre. It is not on the high street or in the precinct; it requires the crossing of a two-lane carriageway, and there is no dedicated car park. That is not a good enough alternative to the bank. Citizens Advice reports that we are losing two post offices a week on average—we lost one in Walsall Wood, in my constituency, just this year.

It is important that we support both post offices and banking hubs as part of the solution when discussing the future of in-person banking on the high street and access to banking services and cash. In his response to a written question earlier this year, the Economic Secretary to the Treasury stated:

“the government believes that everyone, wherever they live, should have appropriate access to banking services.”

I agree. Can we ensure that that happens? It is also important to recognise that what might be an appropriate situation or solution in one place is not necessarily the right solution everywhere. There needs to be a much more tailored and localised approach. Perhaps that is something that the Government can work on with local councils, but they must not just pass the burden on to local councils—they must give them the resource to do it.

I appreciate that decisions on opening and closing branches and the provision of in-person services are a commercial matter for banks and building societies—absolutely, I do. But I press the Minister to take a more holistic, future-proofing approach that acknowledges the bigger role that our banks have always played at the heart of our communities. It is time to work in particular with the Department for Levelling Up, Housing and Communities, which holds the policy pen on high streets and regeneration, and to look at the social and not just the economic impact of bank closures. Driving footfall into our town centres and local high streets is the key to the ongoing rejuvenation of commercial and retail areas and to the regeneration and success of thriving communities. As I said, we must also consider working with local authorities on where we can provide hub services.

I met with NatWest this morning, and I will continue to work with it. NatWest is reaching out to customers across Aldridge-Brownhills. I impress upon the bank the importance of the needs of my constituents, businesses, organisations and charities. We had an incredibly productive meeting, but the bank is still closing. I welcome the fact that NatWest is holding a community outreach event next week for local residents. The announcement of the closure of Aldridge NatWest within a matter of months highlights exactly why we need to look at the bigger picture now, before it is too late.

--- Later in debate ---

[Marion Fellows (Motherwell and Wishaw) (SNP)]

It is a real pleasure to serve under your chairmanship, Mr Davies. I think that I am about to reiterate a lot of what has already been said, but I think it is worth saying again. I congratulate the right hon. Member for Aldridge-Brownhills (Wendy Morton) on securing this really important debate. Before I start, I should declare an interest: I am the chair of the all-party parliamentary group on post offices. I do not think that I technically have to declare that, but I do know a fair bit about post offices as a result.

Scotland has been hit harder by bank closures than anywhere else in the UK. Scotland is geographically bigger than any region of England or any other nation in the UK, and consequently it has a very spread-out population. Because of that spread, bank closures can be more damaging to us, which is why it is shocking that last year’s Scottish Affairs Committee report found that Scotland has also lost a greater share of bank branches than any other country in the UK. That is diminishing the ability of people to access cash and other banking services. Since 2015, 53% of Scotland’s bank branches have closed, which is the highest percentage loss of all the nations in the UK. In 2009, 56% of transactions were in cash, but today’s cash payments represent only 17% of transactions. Despite that drop, cash remains the second most frequently used form of payment, second only to debit cards.

[Wendy Morton]

We talk a lot about services and access to cash. Does the hon. Lady agree that for people who are on a fixed budget and for whom managing money is difficult, having cash makes that very tricky job just that little bit easier? They can see what they have in their purse, wallet or pocket in front of them. That is why I think—and I hope she agrees—that that is another reason why the banking service and access to cash and advice, particularly at a time of cost of living challenges, are even more important.

[Marion Fellows]

I absolutely agree with the right hon. Member. If someone is poor, they cannot afford to run up bank charges. They cannot afford to be overdrawn. I am old enough to remember my mother having pots of money—some was used for this, and some was used for that, but if it was not there, we could not spend it. It is a better way to keep oneself in the black altogether.

Before 2021, about six branches a month were closing in Scotland, but since 2021 that has increased to about eight a month. Post offices are also now closing: between 2011 and 2021, we lost 112 post offices to closure in Scotland alone.

--- Later in debate ---

[The Exchequer Secretary to the Treasury (Gareth Davies)]

It is a particular pleasure to see you in the Chair, Mr Davies, because I know that if you were not in the Chair, you would be making an impassioned speech. I thank my right hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) for bringing forward this debate. There is strong feeling on this subject across communities and constituencies, including mine. She spoke with great passion and knowledge on behalf of her constituents, whom she serves very well.

My hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) quite rightly said that banking is changing. In recent years, innovation has led to an increase in online banking, which many people find quicker and more convenient than banking in branch. We know this from our experience, as well as seeing it in the data. In 2021, the industry body, UK Finance, found that 86% of UK adults made contactless payments; 72% banked online; and 57% banked using their mobile phone. That is not just young people. The latest data shows that more than 70% of people aged over 65 use online banking.

As the hon. Member for Barnsley East (Stephanie Peacock) pointed out, given the rise of online banking, we have to ensure that digital connectivity and mobile phone coverage are strong. In 2020, the Government announced a £1 billion deal with mobile operators to deliver the shared rural network, which will see operators collectively increase mobile phone coverage across our country. As for speed, in 2021 the Government launched Project Gigabit, which commits £5 billion to expanding gigabit coverage to 85% of households in the country.

The basic fact is that local bank branches receive fewer and fewer visitors because, frankly, many customers’ needs can be met digitally through video calls, banking apps or on the phone. In that environment, banks and building societies have a decision to make about how to provide in-person services to those who need them in the communities in which they operate. Those decisions are nuanced, local and, most importantly, commercial. The Government rightly cannot and do not intervene in them.

That being said, we recognise the real concerns expressed more widely about losing access to bank branches, which, as has been said, are important to many communities. For a variety of reasons, some members of our communities, such as those who are vulnerable, may need to do their banking in person. All firms should follow the FCA’s guidance to ensure that they carefully consider the impact of planned closures on their customers. That guidance sets the expectation that if a branch closes, firms will put in place reasonable alternatives in order to meet customer needs. Where firms fall short of that expectation, the FCA has the power to ask for closures to be paused, or for other options to be put in place.

[Wendy Morton]

I am interested to know the number of occasions on which an intervention has been made after a closure. I hope the Minister agrees that this is important. Banks should not close a branch and then review the engagement and so on, because then it is too late. Too much is happening on the back foot.

[Gareth Davies]

My right hon. Friend makes a good point. I will have the Economic Secretary to the Treasury write to her with any figures that we have on the pauses that have taken place as a result of FCA guidance. LINK carries out reviews in order to suggest and recommend the services that can be put in place. If there are no bank branches left in a community, a banking hub can be suggested. However, if my right hon. Friend will allow me, I will ask my colleague to write to her with more detail on that point.

The industry is innovating and finding new ways to respond to customers who want and need to access in-person services. I am pleased that we have heard a lot of discussion today about post offices, because they play a vital part in this issue. It is right to point out the statistics, which I was quite shocked to learn when preparing for this debate. Some 99% of personal banking customers, and 95% of business banking customers, can do their everyday banking—can do such things as withdraw cash or check their balance—at one of 11,500 post office branches across the country. I was also shocked to learn that 93% of people in this country live within just 1 mile of a post office, so almost everyone can access their everyday banking services locally.

--- Later in debate ---

[Gareth Davies]

What services banks provide is a commercial decision for them, but they provide a lot of different ways to interact with them these days, including several online options. As I pointed out right at the start, the majority of the British public access banking in those ways, whether online through a website, web chat or a mobile banking app, or via the telephone. Customers of commercial banks have a variety of ways to interact and get advice, and I would encourage them to do so. It is not the Government’s place to intervene in the commercial decisions of banks on what services they provide and where.

In addition to what I have just laid out on the variety of online services, many banks and building societies have programmes in place involving community centres, libraries, mobile banking vans or semi-permanent banking pods. The pods are structures that provide a dedicated private space to support customers with banking services. They can be moved around to different locations, depending on demand—the hon. Member for Hampstead and Kilburn (Tulip Siddiq) may wish to engage the banks on those for her area. For people who need to speak to their bank face to face, such places can make a vital difference.

Alongside those programmes, there is the high-profile innovation of shared banking hubs, which many Members have referred to in the debate. The hubs provide a dedicated space where customers can meet community bankers, who support them with more complex services. The hubs also offer a range of everyday banking facilities, allowing customers to deposit cheques, check their balance, and withdraw and deposit cash. More than 50 shared banking hubs have been announced for communities across the country, as has been said. Four have opened their doors already and two more are expected in the coming weeks.

[Wendy Morton]

Does the Minister agree that 52 hubs are due to open, which is great, but only four have opened? What more can he or his Department do to encourage, or gently push or prod, the organisers of the hubs to get them in place? The point made by Members across the Chamber today comes down to banks closing and hubs not opening.

[Gareth Davies]

I am grateful to my right hon. Friend. The Government recognise and share the frustrations that she has voiced about the pace of the roll-out of the hubs. Those are commercial arrangements and the industry is working to deliver the hubs quickly. We expect the delivery to accelerate over the coming months, but I share the frustration. The Government have laid out very clearly, as I have today, our expectation: we want the delivery to speed up. We welcome these initiatives, which clearly demonstrate how innovation is supporting access to banking in the longer term. We believe that the impact of branch closures should be mitigated where possible, so that all customers, wherever they live, continue to have access to appropriate banking services.

We are also taking strong steps to protect access to cash, as has been asked of me today. It is true that electronic payments are being used more and more, and cash less and less. Over the last decade, the use of cash to pay for goods and services has declined by almost three quarters. However, cash continues to be important for millions of people across the UK, including businesses and people who may be in vulnerable groups. There is, as ever, a balance to be struck. As more and more people and businesses embrace the benefits of new payment methods, the Government should not stand in the way, particularly when those innovations can make it easier to start and grow a business or to manage family finances, but we must offer reassurance and protection for those who do need cash.

My right hon. Friend the Member for Aldridge-Brownhills asked me to make a commitment on this, and I will say that the Financial Services and Markets Bill, which is going through Parliament right now, does just that. It will enshrine access to cash in legislation. In doing that, we are helping to ensure that everyone, whoever they are and wherever they live, is able to manage their finances in a way that works for them. I hope that that commitment has been heard today by not just my right hon. Friend but many of her constituents, who I know will be concerned about that.

Like many of the speakers in today’s debate, the Government understand the challenges that these changes have brought, and the nervousness that can accompany any change, but supporting customers, communities, businesses and people across the country remains our key duty. Of course, we will always welcome innovation, especially in financial services, to support competition and grow our economy. We will continue to work with the sector, the public and all Members across the House to ensure that we have a modern, flexible banking system that caters to the needs of every person and business in our country.

[Wendy Morton]

I am grateful to the Minister for his response and to all colleagues, from across the House, who have made contributions today. None of us here is anti-innovation at all, but what we are seeking from the Minister is continued reassurance that the Government are on the side of customers, be they residents, constituents, businesses, charities, organisations or the most vulnerable in our society. I think we will continue to watch this issue; I certainly will. It would be really helpful to have greater clarity on hubs. I appreciate that that is a commercial matter, but I will continue to look to the Government to see what they can do to ensure that the people whom we all seek to represent have access not just to banking, but to banking services, information, advice and, most importantly, cash. I am grateful to the Minister for his time and contribution this afternoon.

Question put and agreed to.

Resolved,

That this House has considered the matter of high street bank closures and banking hubs.

Oral Answers to Questions

Wendy Morton Excerpts

Tuesday 21st March 2023 Commons Chamber

[John Glen]

I agree with the hon. Lady that Bolton has great opportunities. Its brownfield register shows that it has more than 100 brownfield sites. Of course, the Government have given the Greater Manchester Combined Authority £150 million—£27 million just last year—to deliver local brownfield remediation. The breadth of the existing funds means that specific land remediation funding is not required, but there is provision in the Greater Manchester area, and I think that she should speak to the metro Mayor about it.

[Wendy Morton (Aldridge-Brownhills) (Con)]

The west midlands trailblazer devolution deal, launched yesterday, brings further support for regeneration and infrastructure along with £100 million of brownfield funding, which is good news for areas such as mine. Does my right hon. Friend agree that this issue is key to delivering homes and jobs while protecting our precious greenbelt and will he consider that in any impact assessment study that he undertakes?

[John Glen]

My right hon. Friend makes a very sensible point. This is about finding appropriate development in different communities, and a range of factors will obviously be involved. We have worked closely with local authorities to ensure that we get the right package of measures and legislative changes to enable the development she and her constituents aspire to.

Non-domestic Energy Support

Wendy Morton Excerpts

Monday 9th January 2023 Commons Chamber

[James Cartlidge]

All I can say is that I suspect pubs did get a boost from the World cup. I wish it had run for longer, but I am afraid that is beyond my control. We very much enjoyed the tournament none the less. I understand the challenges facing hospitality. In my statement on our last but one sitting day of 2022, I announced the six-month extension of the freeze on alcohol duty. This has been a particularly challenging time for pubs. As the hon. Lady knows, we are in the middle of the £18 billion EBRS support, which has helped pubs in particular. We have been clear that we have continued what is effectively a universal scheme, notwithstanding the specific extra support for the energy and trade-intensive sectors. UKHospitality has been included in that consultation. That has happened at an official level, but also through the Chancellor and me, with the voluntary sector and others. We continue to engage very closely with UKHospitality through our Department, the Department for Business, Energy and Industrial Strategy and others on those matters.

[Wendy Morton (Aldridge-Brownhills) (Con)]

I, too, welcome the Government’s announcement. It is really important that we avoid the cliff edge. Speaking to businesses across Aldridge-Brownhills, whether they are part of the energy-intensive sector, retailers, hospitality or even funeral directors, they are all deeply impacted by the energy costs. Can the Minister provide any more clarity or confirmation on whether all business sectors will be covered by today’s policy announcement?

[James Cartlidge]

My right hon. Friend makes a very good point about how broad the impact is of rising energy bills. She used the phrase “cliff edge”. That is precisely why we have continued with a universal scheme. Yes, I am happy to confirm that there will be support for every single business, charity and institute in our public sector, but there will be additional support if they are in the energy and trade-intensive sector. The reason for that is the exposure to internationally competitive pressures and how much harder it is for them to pass on those prices. We recognise the energy challenges for small and medium-sized enterprises in every single sector. We are doing what we can, but balancing that against the need for fiscal prudence.

Energy (oil and gas) profits levy

Wendy Morton Excerpts

Tuesday 22nd November 2022 Commons Chamber

[Wendy Morton (Aldridge-Brownhills) (Con)]

It is a privilege to be able to speak in this important debate. After a number of years of not being able to speak from what was my favoured position on the Back Benches, I have chosen to do so because it is the Budget, which impacts on all my constituents and those many businesses and organisations across Aldridge-Brownhills that, for many years, I have not been able to name-check. I hope you will allow me a little indulgence, Madam Deputy Speaker, if I name-check one or two of them.

I appreciate and understand that, as a Government, we have to make tough decisions and we face some of the same deep challenges as many other countries around the world. It was right to support people and businesses during the pandemic, and the Government did a fantastic job of that, rolling out furlough, business support and benefits so quickly to help people at a time when many of us—in fact, probably all of us—felt a degree of uncertainty about what was happening. It was also right to develop our fantastic vaccination programme and roll that out. I pay credit to Walsall Borough Council for the work that it did and all the team at the Oak Park leisure centre. Today, it is absolutely right that we stand in solidarity with Ukraine against Putin’s illegal invasion. I have just returned from the NATO Parliamentary Assembly, where it was incredible to see the support from the UK and other NATO members. Putin cannot be allowed to continue with this illegal invasion. It must be stopped.

I turn to the Budget. I mentioned those factors because they set the scene for where we are and why we face a tough autumn statement. I welcome the confirmation from the Government that we will protect the triple lock for pensioners and increase benefits by inflation, which I recently raised in the Chamber with a Minister from the Department for Work and Pensions, as it was of deep concern to my constituents. The raising of the national living wage, the commitments to health and the support for household energy bills are welcome and most needed.

I turn to education. I joined Conservative Members in writing to the Chancellor as, having spoken to my local headteachers about school budgets, I was really worried. Energy prices pale into insignificance against the many other challenges and pressures that they face. I therefore really welcome the Chancellor’s decision to allocate £4 billion of extra funding to schools over the next two years. The importance of a good education cannot—and should not—be ignored, nor underestimated, wherever someone lives and comes from and whichever school they go to. I am a proud daughter who went to a comprehensive school and later studied with the Open University to get my master’s degree.

We have some fantastic schools in Aldridge-Brownhills. I recently visited Ryders Hayes Primary School in Pelsall, which has an excellent training facility. Just last week, I was at Brownhills Ormiston Academy, where I was honoured to be part of its act of remembrance. In this place, we know that from school and education flow skills, universities, apprenticeships and employment. It is through skills, employability and jobs that we will grow our economy. It is through growing our economy that ultimately we generate the money to invest back in our great country and our people. It is through manufacturing and production that we can trade and export goods as well as services and knowledge. What I really seek from the Government and the Chancellor is more detail on the plan for growth; that is critical.

Research, innovation and silicon valleys are all to be welcomed, but what about manufacturing and the myriad small and medium-sized businesses that form the backbone of local economies—for example, Brownhills Glass, GJF Fabrication, JC Payne and Imperial Bathrooms in my constituency—and the nation of shopkeepers? We also have fantastic companies that support young people, providing training and skills for the future. The drive, ambition and personal commitment of some of those companies are enabling us to grow our local economy and jobs. That has to be applauded.

Returning to business and growth, taxes on fuel, freezing the NICs threshold, the changes to dividend tax, and indeed raiding the R&D tax credit scheme do not do much to encourage businesses and the many hardworking owners of small companies who work hard just to keep their businesses going and to keep them growing. Changes to business rates, which my hon. Friend the Exchequer Secretary mentioned, are absolutely to be welcomed, as is the targeted support for businesses’ energy bills in April, but may I gently urge the Government to provide as much detail as possible? We need greater clarity sooner rather than later, because that is what will give small entrepreneurs not just stability but confidence.

Small Business Saturday is coming up very soon—at the beginning of December—giving all of us the opportunity to celebrate small businesses in our constituencies. I invite my hon. Friend the Exchequer Secretary and his team to visit Aldridge-Brownhills and the fantastic businesses we have there—perhaps we could even find a female entrepreneur, given that we as the Government are encouraging female entrepreneurs. They would be welcome.

I could make many other points, on council tax and some of the band tax benefits. I know they will cause some difficulty to some of my constituents—the people who are juggling paying their bills with filling their car with fuel and paying the mortgage. I am conscious of the time, however, and perhaps I should not push my luck in my first outing back on the Floor of the House. It is important that we remain compassionate and that we remain on the side of these people. As you would expect, Madam Deputy Speaker, I shall support the Government in the Lobby tonight, but I am grateful to have had the opportunity to put on the record some of my constituents’ concerns.

Duties of Customs

Wendy Morton Excerpts

Ways and Means resolution: House of Commons
Monday 20th November 2017 Commons Chamber

[Mr Fysh]

I do not accept that at all, but I thank the hon. Lady for her intervention. We have a major opportunity to think about what tariffs are best for all of our economy, rather than always having to think about just the EU. This is a really big opportunity to shape many of our industries, when we have just had to cope with a one-size-fits-all solution for many years now.

Our ability to cope on day one is dependent on the measures in the Bill being effective. I have to thank my right hon. Friend the Minister for listening so intently when I have slightly harangued him about trying to ensure that we have enough resource and application on these detailed matters. It is absolutely right that leaving the European Union is a complex business; it is not something we can just assume will be fine. We really need to devote resource, time and application, and to get as much as we can out of the private sector advising and helping us, to make sure we have the necessary technological solutions as part of these processes.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Does my hon. Friend agree that the Bill is very much about preparing the way for when we leave the EU? When we talk about going forward with a global Britain, that is about seeking every opportunity we can to take our country forward.

[Mr Fysh]

My hon. Friend makes an important point, and I completely agree.

It is massively important that we look at the data systems, and I have talked a lot with Ministers about the customs declaration service that we are putting in place by January 2019. I have met industry representatives, and I have to thank my hon. Friend the Member for Dover (Charlie Elphicke) for organising some of those meetings in a very efficient fashion. They have been incredibly useful in bringing key civil servants and key stakeholders up to date with exactly what is required.

I do not think we need to reinvent the wheel. We do not need to go for full, all-singing, all-dancing, new solutions overnight; there are some practical steps we can take in the interim. We heard from one panel about a system called Intrastat, whereby economic flows around the European Union, based on actual transactions, are recorded. It was suggested that it is possible to, effectively, bolt the tracing of different liabilities on to that system, with the customs system operating in parallel with it.

What our partners in the EU, or in any other part of the world, want to know when goods are moving across one of their borders is what is in those consignments and whether they need to think about a tariff or take into account some other regulatory provision. It is massively important that we can talk to our counterparts on the other side. I implore Ministers to try to persuade the EU, even though so far it has been very reluctant, to allow member states’ national customs authorities to talk properly to us about what data interfaces are going to be required for what will probably be quite a lot of extra transactions and considerations that will have to be made. I certainly stand ready to help with my contacts, if I can, to enable some of those conversations to happen. Whether it is a ramped-up trade facilitation exercise—the “option 1” that the Minister described—or a partnership based on a new type of tracing of the way in which goods move around our economy and across our external borders and those of the EU, at the moment, we will need to make and record lots of declarations of one kind or another, and the other side will have to be confident that what we say is the status of these goods is in fact the case.

VAT processing has been the Cinderella of this conversation over the past few months. Everyone has been focused on the duty side, and not enough focus and attention has been given to the VAT side. The manner of the processing of VAT really makes a difference to very many businesses, and it is a major cash-flow issue for most businesses. If we want to stay open to ideas, as we do, with our EU friends and allies, and if we want to have good facilitation of cross-border trade, we need to address, for example, the ability of a vendor to attend a trade show and take a load of samples with them, because if there is a VAT issue, that could really be a problem. It is also a problem in the art world where very high-value objects are moving around. We need to think about that.

Finance Bill

Wendy Morton Excerpts

Tuesday 12th September 2017 Commons Chamber

[Mel Stride]

I believe that that is due to an element of convention, but I am happy to speak to the hon. Gentleman after the debate. We have already clamped down on those who generate such schemes, and we are clearly clamping down on those who use and seek to benefit from them. The third thing is that we will now be actively clamping down on those who enable those schemes through their advice along the way, and they will face penalties of up to the entire amount that they have charged for their services. That is just another example of this Government’s determination to leave absolutely no stone unturned when it comes to clamping down on tax avoidance, evasion and non-compliance.

[Wendy Morton (Aldridge-Brownhills) (Con)]

While the Opposition squeal about tax evasion, does my right hon. Friend agree that it is the Conservatives who have done more in government to tackle tax evasion than Labour did in 13 years?

[Mel Stride]

My hon. Friend is right. Some Opposition Members claimed in last week’s debate that HMRC does not have the resources to clamp down on tax evaders, but that is demonstrably untrue. First, we have provided £1.8 billion since 2010 for exactly that purpose. Secondly, as I have already said, we have brought in £160 billion since 2010 by clamping down on such activities. The truth is that we are succeeding.

Parking Places (Variation of Charges) Bill

Wendy Morton Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Friday 3rd February 2017 Commons Chamber

[Kevin Foster]

I beg to move, That the clause be now read a Second time.

I welcome the broad thrust of the Bill, not least in the context of my time in local government. When we wanted to do something to support retailers at Christmas or some other event, we found that altering parking charges in a local authority car park or other location required a formal consultation, although the likelihood of someone writing to us to say “I would like to pay more to park my car” was virtually nil. When I was both the cabinet member for economic regeneration and the deputy leader of a council, we were spending thousands of pounds to achieve next to nothing. In some cases, we would find that we were not able to do what we wanted to do.

My new clause is intended to probe the views of the Bill’s promoter, my hon. Friend the Member for Bosworth (David Tredinnick), and those of my hon. Friend the Minister, with whom, when we occupied our respective posts in adjoining local authorities, I had exchanges for many years on everything from regeneration plans to council tax. It is a pleasure to see him in the Chamber today, and I look forward to hearing his comments later.

The current consultation procedures are intended to protect motorists and town centres from higher charges, but I wanted to make it clear beyond doubt that the Bill’s aim was to make it easier to reduce parking charges rather than making it easier to increase them. The Bill will certainly be helpful to Torbay. Each year, we have winter charges and standard charges. Standard charges apply throughout the summer and are slightly higher than the discounted winter rates, because in winter large car parks near a beach are unlikely to be particularly full. We do have some hardy swimmers, though, and there is usually a large event every Boxing day in both Torquay and Paignton. I see the Minister nodding: he is welcome to join us for a nice refreshing dip on a Boxing day morning. The requirement is to get one’s hair wet, to show that one has really gone into the water.

[Wendy Morton (Aldridge-Brownhills) (Con)]

As always, my hon. Friend has brought to the House a wealth of experience of the council in his constituency. May I ask him how the new clause would work in practice?

[Kevin Foster]

In practice, it would work in the same way as the Bill, but it makes it absolutely clear that the Bill deals only with circumstances in which car parking charges are being lowered temporarily, and that there is no prospect of orders, for instance, to increase them. Local newspapers have strongly defended the requirement for formal notifications and consultations, and rightly so, but the new clause is intended to make clear that that will apply only when parking charges are not being increased.

[Wendy Morton]

Is my hon. Friend saying that he does not think councils should be able to raise parking charges if they need to do so?

[Kevin Foster]

No. I think it is clear that if a local authority decided that raising charges was appropriate, it would be able to do so under the existing procedures, although consultation would be necessary, and, obviously, the authority would be answerable to its electors. Any authority considering increasing car parking charges must carefully consider the overall impact, not just whether it will get a couple of thousand pounds extra from a car park. The Local Government Finance Bill Committee this week heard evidence—the Minister was present—from the Federation of Small Businesses about the impact that increasing car park charges can have on town centres and on businesses. Local authorities will in future have 100% retention of business rates, and if a town centre is not regenerating and does not have people shopping in it, that will hit the bottom line as much as not getting an extra 10p from each car that parks in the car park.

[Kevin Foster]

I do not think my hon. Friend’s intervention is heavy-handed at all; it is right that we discuss probing amendments to Bills robustly on the Floor of the House. There is already some provision in this regard. My own authority, Torbay, held the Torbay airshow last year. It was clear that one of its car parks would be very congested, so to avoid undue congestion it closed the car park for the day of the airshow but arranged for to be booked via a separate means. The solution met the need on the day, but if it was put in place more widely and challenged there would be a question about whether it was the right way to proceed. It was just a fix for the day.

If a council is going to look to take money out of large events in the manner suggested—for a market day-style event—it should go through a proper consultation process. One way of ensuring that large crowds do not come to events is for people to attend, park in a car park and feel they have been ripped off for parking; traffic congestion reduces the following year, because no one comes back. There is clearly a balance to be struck. It is great to have events that draw people into town centres. I am the Member for Torquay and Paignton, and most days of the week my town centre has problems with lots people wanting to park and shop, causing congestion; that is quite a pleasant problem to deal with, compared with the issues of the decline of the town centre that we have seen over the last 30 to 40 years.

I believe in local democracy. Councils do need to have the ability to decide to increase parking charges, and ultimately be accountable to voters for that. We can all think of instances of a council controlled by our party deciding to make a quick buck out of car parking, but paying the price for it at the ballot box shortly afterwards.

[Wendy Morton]

On raising car parking charges and car parking charges in general, must not revenue from car parking charges—the Minister might confirm this later—go into improving parking facilities and not go to other parts of council funding?

[Kevin Foster]

No, councils can make a reasonable surplus from their car parking and contribute it to their bottom line. It is a shame that my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi) is not present, as I think he would confirm that the town council in Stratford-on-Avon owns the car parks, rather than the district council, and, given the popularity of Stratford as a visitor destination, almost funds its operations—legitimately—through its car park ownership.

--- Later in debate ---

[Kevin Foster]

I thank my hon. Friend for her intervention. To be clear, I absolutely welcome the thrust of the Bill, as I have said on a couple of occasions, and making it easier to reduce car parking charges by having two separate systems. The Bill removes the need for formal adverts in local newspapers and reduces the length of consultation periods when prices are being reduced, but I tabled the new clause to probe whether that is the Bill’s definitive intention. I do not note any specific wording stating that the Bill is purely about decreasing parking charges. I accept that that is absolutely the intention of my hon. Friend the Member for Bosworth, and I look forward to the Minister confirming that that is the Government’s intention, but I felt that it was appropriate to explore the matter further. I had hoped to see specific mention made of reducing charges, and I will consider withdrawing my new clause based on the commentary I hear today, but it is right to explore whether the Bill is purely about decreasing car parking charges.

A decrease in charges could perhaps be used to encourage people to attend special events. Classic examples of when many councils may decide to use such measures are Armistice Day or Remembrance Day. Many councils have a policy of not enforcing standard parking charges on certain days of the year, but that is legally a bit messy. People should pay in theory but may see a sign saying, “We are not enforcing the rules today.” The Bill would allow that sort of thing and allow discounts on particular days or for particular events. The other classic examples are Christmas day and Boxing day. Both are easily included in orders about off-street parking, but that is more difficult with moveable feasts. I fully accept that councils should not draw up exhaustive lists of every single event or every day on which they may want to take 50p off car parking or make it free for an hour or two. As I have said, I welcome the thrust of the Bill, but I want it to be clear that it is only about creating a system to make it easier to reduce, not increase, car parking charges.

The Bill is worthwhile and I am delighted to see it making progress. It is about reducing burdens, reducing bureaucracy and ensuring that money is not spent on pointless consultations—something that I will mention in the not too distant future when discussing my Bill—but I want its intention to be clear. That is why I tabled the new clause, which I hope will provide the basis for some debate, and I look forward to hearing the Minister’s comments. Again, I stress that I absolutely welcome the Bill, making it easier to reduce car parking charges for particular events, but that is not explicit in the Bill.

Our legislation and debates should be clear. Someone sat in the Gallery or watching at home should be able to understand our exact intention from reading the Bill and when we make provisions. If I go down the Dog and Duck tonight and say, “Someone is thinking of making provisions about something under legislation,” the response would be, “What on earth are you talking about?” not, “Oh yes. They’re talking about offering a discount deal in the car park the next time there is an event.” That is why it is appropriate to explore the Bill in more depth on the Floor of the House and to suggest this new clause. I look forward to hearing the Minister’s reply and to deciding whether to press the new clause to a vote.

[Wendy Morton]

I want to say a few words about my hon. Friend’s new clause. I can see the sentiment behind it, because he is drawing attention to the Bill’s title: Car Parking (Variation of Charges). I appreciate that that is the jargon and legalese of this place, but to a member of the public, a taxpayer or a constituent, “Variation of Charges” does not make it 100% clear whether the Bill is about prices going up or down, so I now start to see why my hon. Friend tabled his new clause. That said, I read it for a while and tried to understand where it would fit in the Bill, which is why I asked at the start of the debate how it would work in practice. Quite frankly, I could not see its point—[Interruption.] I suppose I must apologise to my hon. Friend. He made a good argument, but I am not going to agree with him on this occasion.

[Kevin Foster]

I totally accept the intention of this noble and worthwhile Bill, but it is not made absolutely explicit to someone who picks up the Bill or reads it on the Parliament website that it is about variation down, not variation up. That was the point of tabling the new clause.

[Wendy Morton]

That was the point that I was endeavouring to get across. It is about the wording. My hon. Friend referred to speaking to constituents at the Dog and Duck. I do not think we have a Dog and Duck in Aldridge-Brownhills—if I am wrong, I am sure that somebody will soon tell me—but we do have many other good watering holes. When we get an opportunity as Members of Parliament to ensure that our constituents fully understand the legislation that we are taking through this place, that can only be a good thing. I hope that my hon. Friend will not press the new clause to a vote, because I know how I will be voting. I will be speaking on Third Reading because my hon. Friend the Member for Bosworth (David Tredinnick) has promoted a good, straightforward Bill that will help constituencies, constituents and local authorities right across the country. I am looking forward to listening and contributing further over the course of this morning’s debate.

--- Later in debate ---

[David Tredinnick]

The Minister is nodding his head. I am sure he will reassure Members that I have not put anything in the Bill that allows local authorities to increase charges. I am simply saying that they need to ask people before they contemplate such a move, which they are already in a position to do.

[Wendy Morton]

The A5, which passes my hon. Friend’s seat of Bosworth, is also the link through to my constituency, Aldridge-Brownhills, and to the Minister’s constituency, Nuneaton, so the three of us have something in common other than speaking on the Bill. On the point about consultation, does my hon. Friend the Member for Bosworth (David Tredinnick) agree that, for a resident, one of the most frustrating things is when they turn up in a town centre only to find that the car parking charges have gone up and they had no idea? That is why consultation is really important, because it is particularly frustrating for someone when they open their purse and find they do not have the right coins to put in the machine. I welcome the fact that the Bill emphasises consulting residents and listening to their views.

[David Tredinnick]

My hon. Friend knows how fast our area is developing. A huge business park is being developed at the Motor Industry Research Association, which is in my constituency and abuts that of my hon. Friend the Minister. He and I have been working over the years to improve the A5, and some major improvements are in the offing. It is, of course, a national road, and an important relief road when there are problems on the M6 and other roads. We will see an improvement in traffic movements generally, and if we are to have that, we need an improvement in how we manage the people who are moving around. When the Road Traffic Regulation Act 1984 was passed, nobody thought there would be the fluctuations in the patterns of shopping that we see now. We are in a whole new landscape. The world has speeded up—it is completely different since the advent of mobile phones, such as iPhones, and all the electronic media.

Together, clauses 1 and 2 offer a real opportunity for councils to take the views of their local communities into account, while giving them flexibilities where decreases to parking charges can better support the goal of having thriving town centres.

It is important that I mention the support I have received from various organisations. I had some very helpful briefing materials from an organisation that is engaged in and very concerned about parking. My hon. Friends should be aware that the value of UK retail sales in 2015 was £339 billion. That will provide jobs for 3.3 million employees by 2017 in approximately 287,000 outlets. Increasingly, though, the high street has been exposed to intense competition, including the rise of online shopping and increasing use of out-of-town retailers because of the ease with which consumers can use those options.

The point about online shopping is incredibly important. We have seen all the stories in the press about its impact on major stores and how difficult it is for them to fight back. As my hon. Friends from the midlands know, we have there these huge warehouses and distribution centres, particularly where the M1 and the M6 join, and there is also the M69. The middle of England is the ideal place for such centres. In fact, the geographical middle of England is in my constituency, and the Roman centre of England, where the Fosse Way crosses Watling Street, is just outside. That is really important.

Hon. Friends may want to expand on the important point that parking charges are a barrier to regeneration.

--- Later in debate ---

[David Tredinnick]

I am very pleased to see my hon. Friend the Minister nodding.

[Wendy Morton]

On the broad point about business and regeneration—perhaps my hon. Friend will touch on this in his speech—by giving councils the flexibility to reduce their car parking charges when they deem it necessary for a specific event or whatever, the Bill can play a vital part in regeneration. Although councils would not get the income from car parking charges, not only would they not have to cover the costs associated with advertising the reduction in charges, but they could get extra income from increasing the vibrancy of the high street, because the increased non-domestic rate collections would go back into the council.

[David Tredinnick]

My hon. Friend, ever eloquent, has struck a rich seam there. I am not going to mine it, but no doubt she can come back to that point.

For greater clarity, Mr Speaker, I should say that the statistics I just gave were for the cities, towns and villages in England.

--- Later in debate ---

[Wendy Morton]

I welcome the news that the Minister’s Department will be consulting on the matter of consultation and seeking views, and I understand that that may take a little time. Is he able at this stage to give us any indication as to the timescale for the other part of the Bill—the ability to lower car parking charges? Will that measure be in place before Christmas, given that it has been called the Santa Claus Bill?

--- Later in debate ---

[Craig Whittaker]

I am extremely pleased to be able to contribute to this debate. I thank my hon. Friend the Member for Bosworth (David Tredinnick) for bringing his private Member’s Bill to this House for what is now its Third Reading.

The Bill seeks to make provision for the procedure to be followed by local authorities when varying the charges to be paid for off-street parking and parking on designated highways. It amends provisions within the Road Traffic Regulation Act 1984. In order to consider the merits of the Bill, it is initially necessary to consider the existing powers that local authorities have with regard to parking, and how they differ from the existing regulation. Sections 41 and 42 of the Road Traffic Act 1991 awarded new powers to local authorities to vary car parking charges at designated on-street parking places and in off-street car parks. The discussions on the provisions that would become the 1991 Act were fairly limited, and the only debate came on Report in the Lords, when the then Government introduced a new clause on off-street car parks. The then Transport Minister, Lord Brabazon of Tara, said that the provision

“applies to variation of charges at off-street parking places. Local authorities making orders prescribing charges at off-street parking places will, in future, be able to vary those charges subsequently by the simpler public notice procedure—to be prescribed by 978 regulations made by the Secretary of State and subject to the negative resolution procedure—instead of having to make a new parking places order.”—[Official Report, House of Lords, 10 June 1991; Vol. 529, c. 977.]

The powers that were provided through the 1991 Act are contained in sections 35C and 46A of the Road Traffic Regulation Act 1984, as amended. The current procedures regarding the ability of local authorities to amend parking charges are stipulated also through regulation 25 of the Local Authorities Traffic Orders (Procedures) (England and Wales) Regulations 1996—specifically, SI 1996/2489. When seeking either to increase or decrease charges, these regulations require local authorities to do following. First, they have to publish a notice of variation at least once in a newspaper that circulates within the area where the charges are to be altered at least 21 days before the proposed changes are due to come into effect. The relevant notice must also specify the date when it is due to come into force. It must stipulate which parking places the notice relates to, and outline the alterations to the charges that will take effect for each parking place. Finally, the local authority must take steps to ensure that copies of the notice are displayed in the affected areas and that these remain in a legible condition until the date when the changes come into effect.

Through amending the existing powers of the Secretary of State at sections 35C and 46A of the Road Traffic Regulation Act 1984, the Bill revisits the current regulations and seeks to reduce the bureaucratic burden placed on local authorities that are seeking to reduce their parking charges. Furthermore, the Bill allows for a new condition that means that local authorities will need to consult if they are looking to increase their parking charges under an existing traffic order. The intention behind the Bill is fairly clear. It seeks to give councils more flexibility to innovate with regard to the parking strategies and to make it easier for them to reduce car parking charges in order to react to particular circumstances or events, many of which we have already heard about today.

As my hon. Friend the Member for Bosworth rightly pointed out, parking policies have the potential to enhance the economic viability of our high streets, and the benefits to town centres and communities who strike the correct balance with regard to parking charges can be considerable. Before entering this House, I worked in the retail industry for 30 years, during which time I witnessed at first hand the impact that parking strategies can have on the high street. The independent retailers, traders and small businesses that are the lifeblood of our town centres rely on a balanced parking policy that promotes the regular turnover of parking spaces, manages traffic flow successfully, and ensures that the level of charges is reasonable and proportionate in relation to the retail offer that is available to consumers. My own local authority, Calderdale, has sought to introduce a range of additional charges over recent years, and has miserably failed to strike such a balance—a point I will return to shortly.

Before I do so, it is worth exploring the link between town centre prosperity and car parking provision in more detail. Of course, a plethora of different factors influences the comparative success of a town centre. It is therefore incredibly difficult to evidence a clear link between parking policies and the success of town centres. In 2013, a number of organisations, including the Association of Town and City Management, the British Parking Association, Springboard Research Ltd and Parking Data and Research International collaboratively produced a report entitled, “Re-Think! Parking on the High Street: Guidance on Parking Provision in Town and City Centres.” The report explored what evidence could be collated and what could be learned about the relationship between car parking provision and town centre success. Through analysing a range of data using a representative sample of town centres and considering primary indicators—that is, the factors that are judged to have the largest impact on the health of a town centre—the report provides some preliminary evidence that suggests important trends and provides a solid foundation for more comprehensive research.

Due to the wide range of variable factors at play, the report was tightly drawn to focus on a number of specific influences. For example, instead of considering all durations of parking, the report expressly focuses on the first two hours. It was felt that by doing so, it would cover those who had parked to go shopping and eliminate other parking habits—such as commuter parking—from the data. The variables considered included the cost of parking and the quality of spaces. Of the many indicators of town centre performance, the report measured the two key statistics of footfall and spend. Finally, the towns included were carefully selected to provide a representative sample of the town centre landscape across the UK. The report included towns in each region, spanning the entire retail hierarchy from major city to district centre level.

Because of the precise methodology and the fact that the variables chosen reflected only part of this wide and complex picture, we must naturally be cautious about the report’s findings. However, it does suggest some interesting trends. First, parking operators are making available parking provision that equates to the levels of footfall in the location. Secondly, there is no clear relationship between the car parking charges set by owners or operators and the quality of a location’s offer. Some mid-range and smaller town centres may be overcharging. Finally, the mid-range and smaller centres that charge more than the national average in relation to their offer suffered a higher-than-average decline in footfall in 2011, the year in which the data were collected.

Although we must acknowledge that the report does not constitute conclusive evidence that the cost of parking has a tangible influence on town centre prosperity, it opens up an avenue for further research and conforms to the anecdotal or common-sense opinion about the likelihood of such a link. Although the report’s suggestion that town centres with higher-than-average parking costs experienced an average decline in footfall in 2011 will hardly come as a surprise, further research is required before it can be categorically stated that any such link exists. Furthermore, the scale of the detrimental impact that higher costs may have on high streets and consumer habits is unknown and requires further investigation. Each town centre is unique and exposed to widely differing external factors, so something that is true in one context may not be true in another, but the initial trend suggested by the report should act as a wake-up call for local authorities.

That point leads me on to the record of my local authority, Calderdale Council, which has a rather chequered history when it comes to parking charges. On Second Reading a few months ago, I challenged the notion that local authorities do not use car parking charges to generate additional revenue. Although I cannot comment on the choices that other local authorities have made in the last few years, I can say a few words about Calderdale’s unflattering record in that regard.

In 2012, the cabinet of Calderdale Council approved a raft of additional car parking charges. The title of the cabinet committee paper was “The Parking Income Generation Study”. [Hon. Members: “Disgraceful!”] Indeed. The first line of the report made explicitly clear the council’s intention to

“generate additional revenue from parking.”

The proposals included a wide range of additional charges in areas in which parking had previously been free, with the aim of generating an additional £841,000 per annum. Although some of the measures outlined in the report were a genuine attempt to manage existing parking and traffic difficulties, including long-standing problems around Calderdale Royal hospital, many related to areas in which there were no identifiable problems with parking or traffic management. Such measures included the introduction of evening parking charges in previously free car parks in small market towns in my constituency, such as Brighouse, Todmorden, Ripponden and West Vale.

As Members know, local authorities are permitted to spend parking income only on certain things. The relevant legislation is section 55 of the Road Traffic Regulation Act 1984, which states:

“A local authority shall keep an account of their income and expenditure in respect of parking places for which they are the local authority”.

Subsections (4) and (5), which set out what a surplus may be spent on, are particularly relevant. If a council has used money from the general fund to plug a deficit in parking operations, a surplus may be used to pay back that money. It may be spent on meeting all or part of the cost of the provision and maintenance by the local authority of off-street parking accommodation.

If a local authority believes that the provision of further off-street parking accommodation is unnecessary or undesirable, a surplus may be used for the following purposes: to meet costs incurred, whether by the local authority or by some other person, in the provision of public transport services; for highway or road improvement projects in the area; to meet the costs incurred by a London authority in the maintenance of roads; for environmental improvement in the local authority area; or, in the case of such local authorities as may be prescribed, for any other purposes for which the authority may lawfully incur expenditure around parking.

Of course, some of the charges implemented by local authorities fit more comfortably than others within the remit of section 55 of the1984 Act. In the examples from my local authority that I gave few moments ago, it could be argued that although the measures to address parking problems around a busy hospital fall within both the letter and the spirit of the law, the proposals for cashing in on the lucrative market of evening parking charges in a busy town centre are more questionable and rather difficult to justify.

Local authorities such as Calderdale, will, I suspect, continue to try to defend their parking charge increases, however tenuous the link with the legislative guidelines and any genuine desire to improve the traffic management and parking situation in their area. The judgement in 2013 in the case of Attfield v. London Borough of Barnet, which the hon. Member for Hammersmith (Andy Slaughter) has mentioned, clarified the position of local authorities that seek to use their powers to charge local residents for parking explicitly to raise surplus revenue for other transport purposes funded by the general fund. Mrs Justice Lang said that a council could not set out with the objective of raising parking charges in order to generate a surplus to fund other transport schemes.

David Attfield, who brought the case against Barnet, admitted that he was able to win the case because the council was open about the fact that it was increasing charges to provide additional revenue. Calderdale Council’s cabinet committee paper, to which I alluded earlier, was equally explicit about the overt intention to raise charges to provide additional revenue. I suspect that had the proposal been formally challenged in the courts, an outcome similar to the verdict in Attfield v. Barnet would have been reached. Residents and community groups, not to mention opposition councillors on local authorities across the country, may wish to pay particular attention to the ways in which local authorities attempt to justify such increases in the future, because I am sure that Barnet Council is not unique in seeking to use motorists as cash cows.

In the absence of further legal challenges to local authority practices, it is up to residents and councillors to hold local politicians to account. The additional charges approved in Calderdale in 2012 formally took effect in 2014. Within months, the discontent of local residents and businesses adversely affected by the charges prompted opposition councillors to trigger a vote of no confidence in the ruling Labour council administration. The vote was carried, and within weeks of the new parking meters being installed, they were removed again on the orders of the new Conservative-led administration; that was just one example of local democracy in action. However, such is the finely balanced political landscape of Calderdale Council that, just a few years later, the same Labour cabinet is again in control and seeking to reimpose many of the same additional parking charges.

The latest proposals for additional charges hit several towns in my constituency, including Brighouse, where the local business group, the Brighouse Business Initiative, has worked incredibly hard to reinvigorate the town centre and to increase footfall. The efforts of Brighouse traders have seen the town centre flourish, and several farmers markets are run every year that bring people in from across the country.

To the dismay of traders, residents and local councillors, the council seek to impose on-street parking charges in the town centre, despite wide acknowledgement that there are currently no problems with the flow of traffic, nor with the turnover of parking spaces for consumers. Saying that the local business community is furious would be an understatement. Traders are rightly concerned about the damaging effect that the proposals could have on their businesses and livelihoods. Despite making their feelings known to the council, local Labour politicians seem content to proceed with their plans regardless of the scale of any opposition.

The Bill provides for local authorities to consult interested parties if they are seeking to increase the cost of parking charges to ensure that the impacts on towns are fully considered. That can only be a positive step forward. Local businesses, residents and councillors understand their town centres and communities. They are able to recognise which measures will work and how their local high-street economy can be properly managed. It is only right that they are consulted on any potential increases in charges and that detailed consideration is given to the impacts of such proposals on their town centres.

I appreciate that many local authorities already engage in thorough consultation with their communities on such issues, and I applaud them for doing so. However, I assure Members that that does not happen everywhere, so I wholeheartedly welcome the provisions in the Bill to ensure that local communities are involved in the decision-making process. I am sure that local communities such as Brighouse will strongly welcome the measure and the opportunities that it presents to them to ensure that their views are considered.

On Second Reading, the Opposition spokesman, the hon. Member for Oldham West and Royton (Jim McMahon), raised questions about how the consultation process might work. He was entirely correct to say that further detail on the consultation process is required, and I trust that the Minister will elaborate on that point later.

As well as making provision for consulting local communities, the Bill seeks to make it quicker and easier for local authorities to lower their parking charges to promote the economic viability of town centres. Specifically, it provides for a reduction in charges without the need for the current 21 days’ notice. That reform will provide local authorities with the flexibility to react more quickly to changes and with the ability to innovate in providing additional support to town centres.

Many market towns in my constituency, such as Todmorden, Hebden Bridge and Elland, are still getting back on their feet following the devastating floods on Boxing day in 2015. I note that despite the flooding, Hebden Bridge won the small market town category of the Great British High Street awards last year, so well done to the town. However, many businesses the towns struggled in the months immediately after the floods when footfall on the high street was significantly reduced. The proposals would have allowed the local authority the flexibility of deciding quickly how car-parking charges in those towns could have been used as a tool to support local businesses. That could have involved free parking on certain days or a limited reduction in charges.

[Wendy Morton]

To pick up the point about flexibility and a local authority being able to reduce car-parking charges in response to a situation such as the flooding, does my hon. Friend agree that another advantage of doing so would be for volunteers who come from outside the communities to help them through a very difficult patch? One of my local councillors had a collection of materials to help in that situation. He went up there, and it would have been a great gesture for the council to be able to make.

[Craig Whittaker]

A massive point about the floods was the great outpouring of support for our communities from the whole of the UK—we had not tens, dozens or hundreds of volunteers, but thousands and thousands of people coming to the Calder Valley, as no doubt other areas did as well. People came from Cornwall and even from overseas to help. There were firemen and other people bringing food, mops, buckets and cleaning materials. People were out helping, and my hon. Friend is absolutely right that giving something back to them—for example, free car parking—would have been a gesture, though an incredibly small one compared with the huge support they gave us as communities at that awful time.

As I was saying, ideas such as parking on certain days or a limited reduction in charges could have been considered and implemented with minimal fuss under the powers awarded to local authorities through the Bill. Such measures would have provided traders in the towns with a real boost at the very time they were struggling to attract football—excuse me, footfall; we do not particularly want football, because we do not have a football pitch—back to the high street and to get back on their feet.

It is now over 12 months since flooding hit the Calder Valley, and the effects are still being felt by many businesses. Elland bridge, which is one of the main gateways to the town centre of Elland, was destroyed by the floods and remains closed to traffic, in effect cutting Elland in half, which is similar to what we have seen in such places as Tadcaster. Traders and small businesses in Elland have struggled with significantly lower levels of footfall over the past year, not least as a consequence of the closure of the bridge. Under the Bill the local authority could have sought to introduce an imaginative strategy to bring people to the town. This would have provided a huge lift to the traders and the community, and it would have been a clear signal that the town was open for business.

It is absolutely vital that councils have the flexibility to reduce or suspend charges at short notice to stimulate the high street. That may be done in relation to exceptional circumstances such as those that I alluded to, or it might be done to support a community event or festival—for example, charges could be reduced in the run-up to Christmas. Furthermore, the provisions would allow councils to experiment and innovate. In many towns there is a significant difference between the levels of occupation in different car parks and on-street parking bays in the same locality. The Bill would allow councils to develop temporary incentives to increase the awareness of under-utilised assets and to see which parking strategies best suit particular areas in a town.

Requiring 21 days’ notice and the announcement to be published in a local newspaper and posted in the appropriate area is both overly bureaucratic and totally unnecessary in this day and age. When the council is competing with the private sector, as it is in many areas, this puts them at a significant competitive disadvantage, as private firms can currently vary charges as they see fit.

--- Later in debate ---

[Wendy Morton]

I rise to support the Bill again today, and I congratulate my hon. Friend the Member for Bosworth (David Tredinnick) on all his work in getting it thus far. I am sure from the comments that we have heard today that all Members wish it a speedy passage through the House, because we understand the benefits that it will bring to our constituents and constituencies.

I believe that the Bill really will make a difference right across the country, as my hon. Friend has said. He used the phrase “we come into politics to make a difference”, and the Bill can make a difference to very many people in such a small and very simple way. Its aim is essentially to make it easier for local authorities to lower their parking charges to promote the economic vitality of town centres, by allowing local authorities to react more quickly to market changes, putting them on an even footing with the private sector and promoting parking flexibility, about which we have heard so much today, by allowing them to provide free or discounted parking at short notice to support town centre events.

The Bill is intended to make provision for local authorities to consult interested parties if they seek to increase the cost of parking charges, and to ensure that the impacts on towns are considered. It was described earlier as the Santa Claus Bill, but this Bill is not just for Christmas; I believe that it is for all year round. [Interruption.] I apologise; I needed to get that one in today.

My hon. Friend the Member for Derby North (Amanda Solloway), who is no longer in her place, asked why we have not sought to change the law before. It seems crazy that if local authorities want to offer free parking in the weeks up to Christmas or on Thursdays for late-night shopping or for special events, it will cost them to do so because of the requirement to issue all the necessary advertisements. That seems hardly an incentive for local authorities to go down that route. In fact, it is almost a barrier to their making those changes.

In today’s economic climate, we hear a lot about the rise of internet shopping and out-of-town shopping centres. They all have their roles to play, but it strikes me that the Bill offers a simple and cost-effective way to enable councils to effect change. It is not about saying that they must lower all car parking charges, although there is many a day when we would all like that. It is about giving councils the flexibility to lower car parking charges when they feel that that decision is in the interests of the local community and takes into account the community’s needs. The Bill is a tool in the toolbox of local authorities.

Councils can win from the reduction in advertising costs. Residents can win because it will save them money. Crucially, retailers and local high streets can win as well. I understand that car parking revenue is important to local authorities, and I have mentioned the need to strike a balance. Local authorities may gain extra revenue overall from reducing car parking charges—for an event, for example—and from businesses, because if a town centre is thriving, income may be gained from business rates. The Bill is about local authorities being able to react quickly and support local events, businesses and residents.

My constituency of Aldridge-Brownhills is fortunate, as we do have some free parking, particularly in Aldridge village centre. I am a firm believer that free parking encourages people to shop locally, which is something that hon. Members on both sides of the House often mention and encourage residents to do. People pop into the local shops, do their banking and pop into the post office. If they are in Aldridge, they probably have a cup of coffee at Simply Delicious or at Sweet. People spend that little bit more time in the town centre, which adds to the vibrancy of the place.

The Bill is about cutting bureaucracy, which is something that Conservative Members often talk about. Put very simply, it is a no-nonsense common sense Bill, and I will support it.

Enterprise Bill [Lords]

Wendy Morton Excerpts

Wednesday 9th March 2016 Commons Chamber

[Sajid Javid]

I shall carry on for a while. Other Members will want to speak.

Of course, the Bill is about much more than just Sunday trading. It will create an institute for apprenticeships, which will help British businesses to develop the talent that they will need to compete in the years ahead; it supports our deregulation agenda, making it simpler to do business; it addresses the issue of business rates; it will help to release pub landlords from restrictive contracts; and it will give the Green Investment Bank the freedom and flexibility that it needs to grow.

I am particularly proud of the measure that will create a small business commissioner. I have seen for myself, too many times, how hard it is for a small business or sole trader to challenge a larger firm. I have seen how late payments, unfair charges and other obstacles may not just make it harder to do business, but actually drive companies to the wall. The creation of a small business commissioner will make a real difference in tackling such problems, and I am pleased to note that it has widespread support.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Before I entered the House, I had more than 25 years of experience in a small business—in fact, a micro-business. I have previously drawn Members’ attention to my entry in the Register of Members’ Financial Interests. Does the Secretary of State agree that this is exactly the sort of thing that we should be doing for small businesses throughout the country, in order to tackle the real difficulties that they experience as a result of late payments?

[Sajid Javid]

I agree wholeheartedly with my hon. Friend. I think that the measure will make a huge difference. Small businesses are often held back from challenging larger firms, and I hope that it will give many of them the confidence that they need.

--- Later in debate ---

[Amanda Solloway]

With the House’s permission, I will continue discussing the small business commissioner. Under the current system, payment disputes too often cannot be resolved without cases going to court. That costly process is limiting to small businesses and, if pursued, can lead to further financial pressures, making it a barely viable option to small business to have any kind of legal battle.

With my background in retail, I have often seen directly how late payments, often by larger and more robust businesses, can be crippling to small businesses. There may well even be a culture of large firms dragging their heels when it comes to making payments. What those firms disregard is how serious it can be to these small businesses not to make payments on time.

A recent study in Derby found that one in five businesses in the region is a victim of late payments, and that can be crippling.

[Wendy Morton]

These late payments can cripple small businesses. Does my hon. Friend agree that, when businesses are starting up, it can mean the difference between survival or not, and creating jobs or not?

[Amanda Solloway]

Absolutely, and what we need to do to boost our economy is to encourage these small businesses to get established and to flourish.

Therefore, this is an element of our business culture that must change. We must give advice and support to smaller businesses. The role of the small business commissioner will help to facilitate that. If as a country we are to continue to encourage enterprise and the entrepreneurial spirit, we must continue to do all we can to support small businesses and address the concerns and problems that hinder their performance.

Oral Answers to Questions

Wendy Morton Excerpts

Wednesday 9th December 2015 Commons Chamber

[Mr Osborne]

It is perfectly reasonable to have a welfare system that is fair not just for those who need it but for those who pay for it. We have identified the specific cases that the hon. Lady refers to in her question, in which women have been victims of domestic abuse—or, indeed, rape—and that is why we are consulting and discussing changes to protect vulnerable women.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Q14. More than 4,000 apprenticeships have been created in my constituency since 2010, and I recently met representatives of In-Comm Training and a group of small local businesses to discuss skills and apprenticeships. What are the Government doing to help small businesses to help people into training and employment, thereby securing the economy of the midlands engine for future generations?

[Mr Osborne]

The great news is that jobs are being created in the midlands engine, including in my hon. Friend’s constituency, and we are investing in infrastructure there as well. We are also investing in the skills of the next generation through the apprenticeships she mentions, and we are backing small businesses by cutting the corporation tax they pay and by increasing employment allowance so that they can take on more people without paying the jobs tax.