British Industrial Competitiveness Scheme
Order.
Showing every spoken contribution, including 5,731 under 12 words. Hide short remarks
Order.
I call the shadow Minister.
I call the Liberal Democrat spokesperson.
Before I call the Leader of the House to move the motion, I point out that live British Sign Language interpretation of the debate is available to watch on parliamentlive.tv.
Order. I gently point out to the shadow Leader of the House, and to anybody else planning on contributing, that this is not a debate on restoration and renewal. Although reference to it is of course acceptable, perhaps the substance of Members comments’ should not focus on that.
I call the Liberal Democrat spokesperson.
Bring back Middlesex, I say. On behalf of the Backbench Business Committee, I remind the Leader of the House that we await the promised motion to change the Standing Orders for the election of the Backbench Business Committee for the new Session. In addition to the business announced by the Leader of the House, next Thursday in the Chamber there will be Select Committee statements from the Environmental Audit Committee and the Housing, Communities and Local Government Committee. Turning to the business in Westminster Hall. on Tuesday 21 April there will be a debate on the need for an independent national review body overseeing wheelchair provision. On Thursday 23 April there will be a debate on access to education and training for young adult carers, followed by a debate on gambling advertising. On Tuesday 28 April there will be a debate on Government support for park home owners. I managed to get a private Member’s Bill through this place, which became the Supported Housing (Regulatory Oversight) Act 2023. We are still awaiting the implementation of that Act, which means that vulnerable people are being exploited by rogue landlords. I understand that the Department has completed the consultation on the regulations to implement the Act, but it is likely that we will not see it implemented until 2027. Could the Leader of the House arrange for a statement in this place next week on what exactly the Government are doing to implement the Act, which has cross-party support? If there is no statement, Mr Speaker, may I urge you to allow me an Adjournment debate on the subject?
In Wick in my constituency, over 1,000 local residents have raised with me their concerns about unfair and confusing parking charges, which are deterring shoppers and damaging local businesses. May we have a statement from the Secretary of State on the delay to the revised private parking code of practice?
It is deeply unedifying to hear the Minister and others playing political games on a matter of national security. We can all look at the past; I can tell the Minister about the body armour that I had to give to somebody else for the invasion of Iraq because we did not have enough in 2003. I can point to the underfunding of helicopters; friends of mine were killed on operations in Afghanistan because of that underfunding. That was under Governments before his, but yes, they wore the same colour tie as this Government do. The question for him is not what happened in the past, but what he will do about these things in the future. The defence investment plan, the Minister says, is not urgently needed because he is spending anyway. Well, why is he wasting his time producing the damn thing? He could spare those civil servants to actually get contracts delivered, instead of messing around with games, or put his heart into the fight with the Treasury that needs to be had right now, as his friend Lord Robertson has made clear.
I am grateful to be called to speak in this debate. Sadly, it reflects the interests of Members that so few of us are here for a debate about one of the most important elements affecting the future of our constituents, friends, neighbours and, in fact, ourselves. Pensions are rather more than just a savings scheme; they are the thread that binds generations. They are the remarkable invention of our ancestors, who found a way to make sure that the energy, innovation and force of the young could be tied to the assets, education and experience of the old. It is that bond between generations that makes pension saving so special. While I welcome much of what this Bill does, I fully align myself with the points made by my hon. Friend the Member for Faversham and Mid Kent (Helen Whately) about mandation. In that one small area, this Bill repeats an error that was made nearly 30 years ago when the Government, for very understandable reasons—it was a very tense moment in pension savings, just after the Mirror Group Newspapers scandal and the Equitable Life scandal—took upon themselves powers, which were entirely reasonable at the time, to de-risk some of the private pension market. That de-risking was about moving savings, very gently at the beginning, from equities into bonds. In the early days, that did not make much of a difference. It took the percentage of bonds in investment portfolios from 19.1% to 19.3%, and so on. However, although the intention was to de-risk very slightly, the accumulation of time means that the bond element of pensions has grown, so that in the UK the figure is now roughly 60%, whereas in Australia or Canada, which are similar economies, it is roughly 20%. That is a real problem not just because it means pensioners are getting a lower return—they are getting a return based on the debt of the country, not on the energy of young people—but because young people are not getting the energy or the lifeblood they so vitally need when they are starting their lives. Let us look at the difference between equities and bonds. The truth is that bonds are fundamentally dead money: they are money taken or held by the state in ways that pay back over five, 10, 15, 20 or more years—in fact, a couple of times, over 100 years. Equities are fundamentally different. It is true that they are not predictable and it is also true that they do have risk, but they are a bet on the energy of the young people in our community. They are that bond or ligature between generations that fundamentally makes a community strong, rather than tearing it apart. Over the past 20 to 30 years, we have seen those bonds erode. What is the result? A slower growing economy. Why? Because there are no assets to invest. There is no water for the crops, if you like; there is no fertiliser for the soil. What else have we seen? Young people have been moving away because they do not have the opportunity to start their business, or when they do start their business, they do not then have the opportunity to go to the next stage. We see an amazing start-up culture here in the UK, but immediately they hit series A and B, people go to America—they go to California or to a Delaware corp and get foreign money. Again and again, that is happening because the state, for very understandable and entirely principled reasons, made a decision to take authority off savers in order to protect them, and I am afraid that that is what the Minister is doing again today. I understand the Minister’s point. I understand why he feels he needs to take that power. He feels that the Government have a role in ensuring that pensioners get a better deal. I get that. He also feels that the best way to do that is for the state to exercise its authority over a market system. Again, I understand that. But the problem he has is a fundamental one: the only way we achieve the connection between generations and communities, and the only way we get that life flow of the living blood of an economy— the equities market—rather than the dead hand of the state through the bonds, is in a free market. By putting his hand on the tiller and his finger on the scales, he is changing that, and that incremental change over time will do much greater damage than he fully appreciates today, despite his best intentions and despite the intentions of the Bill. That is why I will not be supporting the Government today.
One of the challenges with defined contribution schemes is that so many of them are parcelled out in much smaller volumes than one would like, and when one compares them with, for example, Canada or Australia, we see superfunds in certain countries and not in the UK. While the Minister is correct that this means slightly lower bias, it also means significantly less growth in the UK market, because there is less capital flowing. This is an argument for both young and old people. I know that the Minister understand this, but it is worth making that link. Pensions are just as much about funding youth as sustaining age.
Not yet.
I am grateful to the Minister for his words; it seems that we rather agree. I agree with him that the problem with the defined-benefits system is that it is addressing—let us be frank—an ageing demographic. There is, however, a challenge: because of those changes and the influence that has had on defined benefits, there has also been some influence—I would not overstate it—in the culture that has affected defined contributions, which are therefore overly bond asset-heavy, if you see what I mean, in comparison to Australian and Canadian markets. That is not to the degree that I was talking about earlier of 60%—clearly, that is different—but it does mean that we have got a pensions economy more geared to an ageing demographic and then over-geared in other areas to follow the lead of the defined benefits. That means we see that that removing or strangling, if you like, of live money—turning live money into dead money—which is a net burden on the whole economy. I appreciate that it is not quite as black-and-white as I have painted it, but it is a challenge that is affecting the entire economy.
I am grateful to the Minister, because this is actually becoming a debate in the Chamber, which is so rare. The Minister is absolutely right, but the reason why I link the two is that the nature of defined-benefit removing assets from UK equity markets has led to much slower growth in the UK stock exchange. That means that the levels of return for UK equities are lower, so defined-contribution trustees do not invest so heavily in shares. We then have a knock-on effect: when pensions need to have UK asset allocations—they want to have their savings in pounds, for understandable reasons—they cannot get the return off the FTSE 100 or 250, so they end up being tied into Government bonds. We therefore get that draw in a slightly different way.
It is a pleasure to serve under your chairmanship, Dr Allin-Khan. I thank the hon. Member for North Norfolk (Steff Aquarone) for securing this important debate. South Shropshire is a very rural, remote area, and its beauty is unrivalled, as many Members will agree. With 53% of my constituents off grid, this is a major issue. When the war in Iran increased the heating oil prices literally overnight, many constituents got in touch with me to raise their concerns. Paul from Eardington saw his heating oil quote go up from 53p to £1.39 per litre—an increase of about 150%—in almost 24 hours. That is a huge impact, and his story resonates across my constituency. Many of my constituents have not been able to fill up because of the 500-litre minimum. A big shout out to Cambers of Harley: when I was buying my wheelbarrow at the weekend, I saw 25-litre containers, which provide fuel for people who cannot afford 500 litres. Despite many having praised it, the Government’s £53 million of energy support has penalised my constituency. Shropshire council has more than 53,000 off-grid households, of which more than half are in my constituency, yet it has been allocated only £750,000. That equates to £14.29 per house, whereas the average across the country is £35. Why is South Shropshire missing out? My constituents need support. I want the minimum order level to be addressed, and I want future provision to ensure that my constituents, particularly the hardest hit, can have heating oil without having to choose between that and food.
Further to that point of order, Dr Allin-Khan. I would also like to declare that I use heating oil.
I have served on operations under both Conservative and Labour Governments, and I can tell horror stories of how I was treated, which led to 15-plus years of complex PTSD. When I finally rebuilt my life, I wanted to ensure that nobody ever had to go through what I went through. As soon as I got here six years ago, I worked cross-party to say that anything under 3% on defence spending—this was in the last Parliament, when my Government were in charge—was unacceptable. There is not a serious professional in the defence industry who thinks the current level of spending is adequate to meet the world’s needs. Does the Minister think that it is a serious investment that we are making at the moment?
On the key recommendation of a national conversation to build support and understanding among the population, it is all very well having debates here or in Whitehall, but what conversations are the Government having with the Departments for Education and for Culture, Media and Sport, the BBC and social media providers about the issues that are faced and about communication with the public to build support for funding and increase understanding of the challenges we face?
I have every sympathy with patriotic Defence Ministers who are being sent out to try to put a brave face on the fact that they are being undermined by their own Chancellor of the Exchequer. Is it not a fact that someone as collegiate, experienced and patriotic as Lord Robertson would never have spoken out as he did if he did not recognise that his party’s Defence team was being undermined in this way? If the threat from Russia is so great that NATO has moved to 3.5% of GDP as its target, why do the Government think that waiting another nine years to achieve it is an appropriate way to deal with the killer in the Kremlin?
Those who are obliged to use heating oil are isolated by definition, and they are further disadvantaged if they happen to be old, or infirm, or disabled or poor. Surely the Government recognise that the mechanisms already exist to cut prices, as has been said. There is no need for delay. We need to help people in my constituency, the hon. Lady’s constituency and many others who are suffering from the kind of exploitation set out in this debate.
The evidence is still more profound, is it not? Screen time is now a profound problem across the board. This is not just about phones; it is about all kinds of devices. We now know not only that it affects children’s confidence in communicating, but that their cerebral capacity is being altered over time. I hope that during the consultation the Government will look more broadly at the issue of screen time, because, as we heard from my right hon. Friend the Member for East Hampshire (Damian Hinds), many parents are yet to understand this as clearly as my right hon. Friend the shadow Secretary of State most certainly does—and the Minister is gradually coming to terms with it. I hope that the Government will seize the initiative, and send the very clear message from this place that children and screen time are not happy bedfellows and we really must return to a more traditional way of bringing up the next generation.
My right hon. Friend is generous in giving way. She is making the profound point—and this should concern every Member of this House across the normal party divides—that the abnormal is becoming routine. Growing up has never been easy and moving from childhood to adulthood is always a challenge, but when someone’s sense of what is normal is altered beyond recognition, it becomes impossible to navigate the vicissitudes that are an inevitable part of maturing, and that is where we are. This House took 25 years to regulate the internet at all—far too long—over successive Governments, but now the whole House can come together to protect our children from this menace.
Lord Robertson, the former Labour Defence Secretary, said that we cannot defend Britain with an ever-expanding welfare budget, so will the Minister explain to my constituents why this Government can set out their welfare spending plans until 2031, but cannot publish their defence investment plan for 2026?
Will the Minister give way?
The Minister has said that she wishes to take swift action. Surely the swiftest action she could take is to use this Bill to ban smartphones from schools, and to ban children under 16 from using social media. What extra information does she need to take those steps?
Then why worry?
I beg to move, That this House has considered the impact of contactless roll out at railway stations on ticket prices. It is an honour to serve under your chairmanship, Dr Allin-Khan. I appreciate the Minister’s attendance, and I am grateful for the opportunity to raise an issue that is important to my constituents who rely on the rail network. I welcome the move to contactless payments at railway stations. It is a transformational innovation that makes travel much quicker and easier. It allows those of us who like to cut it fine to just tap in without having to queue for a ticket or hurriedly navigate the ticket machine. The Government’s case for the roll-out is that it should make rail travel more convenient, accessible and flexible, and I agree that those are the right ambitions. Reigate station was one of the stations brought into the latest expansion of contactless in December 2025. This was part of a wider scheme to roll out contactless ticketing across the south-east of England. Stations in neighbouring constituencies, such as Dorking, Leatherhead and Ashtead, were also included. The concern I want to put to the Minister is that, for my constituents, this roll-out has introduced not simply a new way for people to pay but a change in what they pay, when they can travel, which discounts they can access and whether long-established local arrangements still apply.
It is like the hon. Gentleman has read my mind—or even my speech. I completely agree with his point, and I will go into a number of those issues in some detail.
I hope the hon. Lady gets an answer to her question. On paper, contactless was presented to my constituents as a simple upgrade to how they pay. In practice, it is much more than that. I am not at all suggesting that operators have actively set out to conceal their price rises, but it is fair to say that they were not as clear, prominent or energetic as they should or could have been in explaining the full practical implications for passengers. Indeed, the changes were snuck through without any proper consultation or targeted communication. That is particularly galling since the Government are freezing rail fares across the country to ease cost of living pressures. Why do my constituents who rely on Reigate station not deserve the same? Contactless was presented to people simply as a way of making payments easier, so many passengers, understandably, assumed that they would not have to pay more or change the time they travelled. Clearly, that has not happened at stations like Reigate. One very brief example will illustrate the point: the first off-peak train of the day is now nearly an hour later than before. That is a ticket price hike by stealth. For many years, Reigate passengers had a settled and well-understood expectation about which morning train to London marked the start of off-peak travel. That was an important part of how they planned their day, especially those travelling into London for leisure, appointments or family trips rather than for the traditional commuting pattern. Under the new structure, because peak now runs until 9.30 am, and because Reigate’s train pattern does not line up neatly with that cut-off, the practical effect has been to push the first off-peak option later. In other words, a journey that many local passengers had long understood to be available on an off-peak basis is no longer available on the same terms. Some must now travel later, otherwise they must pay more. In that case, the roll-out of contactless has had a measurable negative impact on how some of my constituents travel by rail. Of course, it is important to acknowledge that not every fare has increased and not every passenger has found themselves losing out. Southern notes that for many people, the contactless fare will be the same as that of a ticket bought on the day, and the whole premise of the system is that, for many passengers making simple journeys, contactless will be convenient and, in some cases, better value. That, however, is only one part of the picture. The people who are most exposed to the downsides of this transition are the people least placed to absorb them. Currently, existing discounts cannot be applied to pay-as-you-go contactless, and if someone has a railcard or is eligible for other discounts, including a child discount, it may be cheaper to buy a conventional ticket rather than use the contactless system. That means that often the most affected passengers are families, older people, veterans and others whose journeys may amount to something more than the default model of a full-fare adult simply tapping in and tapping out.
I agree, and I will come on to that, but I am concerned that there is some rigidity in the roll-out. I expect that part of the challenge will be making adjustments to reflect what is required locally but, as my hon. Friend rightly says, the super off-peak impact is detrimental to many constituents, so I thank him for raising that. One of the strongest examples that has been raised with me several times is the family day out. A family in Reigate taking children into London for museums, sightseeing or simply a day in the capital may now find that the day is squeezed at both ends. Outward travel on the old familiar basis is no longer available at the same time in the morning, while return travel is also shaped by the new peak restrictions in the evening. Ministers often speak, rightly, about encouraging leisure travel, public transport use and access to our capital’s cultural institutions, but if a system makes that kind of family journey harder to plan, less flexible or more expensive, something has gone wrong. There is also a fairness issue between neighbouring stations. My constituents look at nearby stations where these issues have not arisen and ask a simple question: “Why are we being treated differently?”
I agree that we should look to roll out contactless to stations that do not have it, but I hope that the issues I am raising about pricing are taken into account. I hope it is useful for the hon. Gentleman to see the impact that the roll-out is having in Reigate. It would be good if we could iron out the difficulties before it is further expanded. We very much welcomed contactless and were excited to get it, but we did not anticipate the stealth price hikes and their impact. It was something that I really wanted to celebrate locally, but all of a sudden there were these downsides that we had not planned for because they had not been communicated properly. I hope it is helpful for the hon. Gentleman to learn from what has happened in Reigate, and hopefully the Minister will take that on board before rolling out contactless to other stations in Surrey. Sitting on top of all this, there is an unfortunate layer of confusion. I agree with the Government in their diagnosis that rail fares are too complex and that simplification is necessary. On one level, that is plainly true, so surely they did not intend that the contactless roll-out would leave informed local rail users having to spend time and energy working through the interplay between contactless singles, paper returns, travelcards, caps, discounts, peak times and station-specific exceptions. We have to ask ourselves whether the new system is actually simpler from the passenger’s point of view. Contactless undeniably offers much convenience, but I am concerned that it is not offering clarity or value for money for all. I gently say to the Minister that this roll-out appears to have been a rigid programme. The correspondence I have seen suggests that operators had only limited room to preserve sensible local arrangements, even where a clear passenger need has been identified. If that is correct, the Department should reflect on whether the roll-out has been too inflexible. National consistency has its place, but so does common sense. We were just discussing the broader roll-out in Surrey, which I hope we will see; there is lots that can be learned and improved on so that other areas in Surrey do not suffer the same surprise and detrimental impact as we have in Reigate. I would like to ask the Minister four things. First, what can be done for specific cases like Reigate where contactless has caused unexpected problems? Will he step in to help work towards restoring the long-standing off-peak position for the first morning journey, so that passengers are not simply forced on to a later train or a higher fare? Secondly, will the Minister review the impact of the contactless roll-out on passengers who depend on discounts, particularly railcard users and families travelling with children? It is difficult to argue that a system is fully fit for purpose when important categories of passenger are told that the purported benefit does not properly work for them. Thirdly, can the Department for Transport look into anomalies between geographically neighbouring stations and whether these are forcing passengers to alter their behaviour, including using cars to drive to a further away station to secure a better deal? We are seeing people drive to Redhill rather than get the train from Reigate, which they live closer to. Finally, will the Minister ensure that when these changes are rolled out in future, passengers get genuinely clear, station-specific guidance explaining what has changed, who benefits from contactless, who may be better off sticking with conventional tickets and how any new restrictions operate in practice? My constituents have very much regretted not having access to that information. As I hope I have made clear, I support simpler ticketing, modernisation and making rail travel more attractive. Contactless is a gateway to all that, but it must work for all passengers. Regrettably, at the moment we have a system that is leaving a sizeable minority disadvantaged and paying more for less flexibility than they enjoyed before. I hope the Minister will engage with these points in the practical and constructive spirit in which I have made them, and I would be delighted to work with him on finding workable solutions and taking the learnings for roll-out to other stations. Overall, it is a great thing: I very much welcome contactless coming to Reigate, but it would be really good if we could iron out some of the difficulties with ticket pricing.
7. What discussions he has had with Cabinet colleagues on the potential impact of the energy profits levy on the oil and gas sector in Scotland.
The oil and gas sector is a vital industry, not just in Scotland but for the whole UK. Does the Secretary of State share the disappointment of the Conservatives that the Chancellor deterred a reported £17.5 billion of private investment into the oil and gas sector by choosing to retain the energy profits levy last month? That money would have supported thousands of Scottish jobs, and delivered growth and energy security for the UK.
I call the Minister, if he is ready.
Order. Minister, you are making a very passionate speech, but you said “you” and I do not think I was involved in fighting with you in any trenches at any point.
Order. The Minister gave a very passionate speech, but when one mentions colleagues in the Chamber, one is meant to give prior notice. I assume that has happened.
The appropriate thing to do will be to drop him a note very quickly. Question put, That this House disagrees with Lords amendment 1.—(Torsten Bell.)
I thank the right hon. Member for notice of his point of order. The Chair is not responsible for the content of Ministers’ speeches in the Chamber—if only we were. However, the Minister is in his place and will have heard what the right hon. Member has said. If an error has been made, I am sure that the Minister will seek to correct it as quickly as possible.
We do not want to prolong the debate any further. Both the Back-Bench Member and the Minister have put their points on the record. Motion made, and Question put forthwith (Standing Order No. 83H(2)), That a Committee be appointed to draw up Reasons to be assigned to the Lords for disagreeing with certain of their amendments. That Torsten Bell, Gen Kitchen, Natalie Fleet, David Pinto-Duschinsky, John Slinger, Helen Whately and Mr Will Forster be members of the Committee; That Torsten Bell be the Chair of the Committee; That three be the quorum of the Committee; That the Committee do withdraw immediately.—(Deirdre Costigan.) Question agreed to. Committee to withdraw immediately; reasons to be reported and communicated to the Lords. Children’s Wellbeing and Schools Bill (Programme) (No. 4) Motion made, and Question put forthwith (Standing Order No. 83A(7)), That the following provision shall apply to the Children’s Wellbeing and Schools Bill for the purpose of supplementing the Order of 8 January 2025 (Children’s Wellbeing and Schools Bill: Programme), as varied by the Orders of 17 March 2025 (Children’s Wellbeing and Schools Bill: Programme (No. 2)) and 9 March 2026 (Children’s Wellbeing and Schools Bill: Programme (No. 3)): Consideration of Lords Message on 15 April 2026 The Lords Amendments and Reasons shall be considered in the following order: 17B, 38, 41B, 102, 106 and 105B. Question agreed to.
I must draw the House’s attention to the fact that Lords amendment 38 and 105 engage the Commons’ financial privilege. If either of those Lords amendments are agreed to, I will cause the customary entry waiving the Commons’ financial privilege to be entered in the Journal. After Clause 9 Sibling contact with children in care