Seema Malhotra
MP for Feltham and Heston · Labour (Co-op) · United Kingdom
“Public sector productivity is improving, with the latest Office for National Statistics figures showing output continuing to grow faster than inputs, and Departments being challenged to improve efficiency and modernise outdated processes.”
“I was proud to support the Feltham Convening Partnership’s young leaders summer programme last month. What struck me was their ambition for themselves and their community, as well as their call for more work experience opportunities.”
“We will be working to commence the socioeconomic duty on public bodies in section 1 of the Equality Act to require public authorities to put addressing socioeconomic disadvantage at the heart of their strategic decision making. There will be more on that to follow. Let me again thank my hon.”
“For generations, the message to those who want to enter public life or elite professions has been that if they want to get on, they must sound like everybody else. When Margaret Thatcher became leader of her party in the 1970s, she famously underwent intensive elocution lessons with a tutor from the National Theatre.”
“Whether a young person chooses a degree or a trade, their journey must be determined by merit and their potential—never by whether they have to change their voice or pretend to be someone else to fit in.”
“Interestingly, studies also regularly show that regional accents such as Welsh or Yorkshire are rated by the public as trustworthy, warm and honest. Yet when those same studies measure perceived intelligence or employability, standard southern English and received pronunciation invariably top the metrics.”
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“Businesses need help with their rent debt, but they will not be able to access it if the cost of arbitration in the Bill is too high. It is vital that the Government continue to listen to the views of Members of this House, and Ministers should ensure that arbitration fees are capped. It is also vital that all viable businesses can access the arbitration process, including those that no longer occupy their premises. I heard what the Minister said in relation to how the courts might interpret that in the context of the intentions behind the Bill, but that issue may well be raised further in the other place. The Government must ensure that there are enough arbitrators, as we have raised, to deal with all cases, and that the arbitration system works consistently and fairly.”
“Businesses up and down the country have had a very tough Christmas period, despite the period of October to the new year being called the golden quarter for many hospitality and retail businesses, in which they hope enough revenue can be made, particularly in December, to make up for and steer through the fallow months of January and February. That period has been incredibly difficult this time around. UKHospitality found that the average hospitality venue lost over £10,000 in the weeks leading up to Christmas, with Christmas day takings down 60% compared with those in 2019. A December survey—the period between some of the stages of the Bill—by the Night Time Industries Association found that the outstanding business debt from their members was, on average, around over £200,000 per unit.”
“In that time, the covid pandemic continued to hit businesses hard, in sometimes predictable and sometimes unpredictable ways as new waves were coming through, particularly those on the frontline of our high streets and communities. Rent debt remains a heavy burden for those businesses and their commercial landlords. Indeed, the Bill’s impact assessment notes that, according to the Treasury analysis, the total amount of deferred rent liabilities may be at around £9 billion by March 2022. It is likely that businesses and landlords could have been helped by the legislation being introduced a little earlier, but we move forward, and as the Bill moves forward the issues around affordability and accessibility should be further tested. The Minister alluded to that in his speech on Third Reading.”
“By ensuring that the arbitration process must aim to preserve viable businesses and do so fairly, while also preserving landlords’ solvency, the Bill offers a balanced arbitration process. As such we support it. The timing of the Bill, however, was somewhat disappointing, because we called for action over rent debt and wider business costs earlier last summer, ahead of the end of restrictions; indeed, I met UKHospitality, the British Beauty Council, the Federation of Small Businesses, the Night Time Industries Association and many others. The Minister will have had such meetings too, and heard of the huge ongoing burden that businesses were facing over rent payments; yet it seemed to take the Government months after we, and other stakeholders, made that call to produce the Bill and to set out the arbitration process for rent arrears.”
“No otherwise viable business should face an overwhelming burden from rent arrears incurred as a result of a very difficult time during lockdown and through no fault of their own. Neither should those businesses feel that they are on their own without due arbitration, without a burden-sharing process and without a Government and a Parliament on their side. At the same time, we recognise that commercial landlords also need a clear and predictable mechanism through which to seek to recoup levels of rent arrears fairly, recognising the ability to pay as viable businesses navigate the ups and downs of our economic recovery. Crucially, the guiding mechanism of any arbitration system must ultimately be fairness and must be in the long-term interests of British businesses and jobs.”
“As we move on to Third Reading I would like to thank the Minister for his engagement with us and for meeting us outside the formal Committee and other stages of the Bill. I also thank the Whips on both sides, the civil servants, the Clerks of the House, all those who gave evidence, Parliamentary Private Secretaries and all colleagues who contributed to proceedings on the Bill. Labour supports the Bill. Where we believe that it could be further improved we have laid out our arguments, and I hope that such debate will be helpful as the Bill is taken forward in the other place. Labour recognises the need for a fair arbitration system to deal with these difficult rent arrears.”
“Tory failures on the economy now show all too clearly that the Tories are no longer the party of business. Business taxes and costs are rising, revenues and profits are falling, and businesses face a cliff edge in March as support is withdrawn. Yet when hospitality businesses were losing, on average, £10,000 a week, the Chancellor was in California, with the Business Secretary nowhere to be seen. Does the Minister agree that hospitality businesses, hit hard by covid and Government chaos, need more than the one-off grants finally announced, and will he now back Labour’s calls for the Government to consider extending the VAT discount for hospitality?”
“It is now the Labour party that is the party of business and the Conservatives who have led to life for British businesses being harder than it is for businesses abroad.”
“We will support businesses now with their energy bills, extend the VAT discount for hospitality, and invest in skills and training to tackle skills shortages to help businesses to build those new capabilities. Every economic indicator, every commentator and every ounce of common sense tells us that we have the perfect storm of rising costs, rising skills shortages and rising taxation. This is catastrophic for businesses. So Ministers have a choice. What will they do to support businesses, large and small, with the next set of challenges that faces them? Businesses across the country are watching and waiting for a plan. They cannot keep shouldering the burden. Today is the Minister’s opportunity to tell businesses what the Government will do now.”
“To achieve those goals, we need a proper industrial strategy, with a plan for how we buy, make and sell more in Britain, a strategy with leadership and direction that guides serious investment, not an incoherent plan with slogans and soundbites. The more I hear the phrase “levelling up”, the less faith I have that the Conservative party has a clue about what it is doing. Today’s Labour party is the party of business. We will freeze business rates until the next revaluation. We will increase the threshold for small business rates relief, ahead of more fundamental reform— [ Interruption. ] Government Members may chuckle, but that is because they know that we are right.”
“Covid is not over, however, and businesses need clarity on how to plan for the future. We believe in a strong private sector where investors and entrepreneurs are rewarded fairly. We believe in an economy where companies are good corporate citizens, sharing wealth, engaging communities, paying their fair share of tax and treating their employees with dignity and respect; in a national economy that is anchored in every part of the UK, every region and nation, with no locations left behind; in prosperity that is shared evenly, bringing security, dignity and respect to families across our country; and, most of all, in an economy that moves smoothly towards a low-carbon economy, with a plan for how businesses move to net zero and, as part of that journey, our businesses doing well as they do good.”
“In many respects, they failed that test. On top of that, the Conservatives are bringing in a new jobs tax, just as support measures come to an end. That is not a plan. It is evidence of a lack of one. Clearly, the Conservative party has become the high-tax party because it is the low-growth party. All the indications are of future years of low growth, on top of the low growth going into the pandemic. When it comes to the economy, Labour puts the national interest first. We called for furlough-style employment support in early 2020 and it was right to have such support. We called for and supported help for the self-employed, business loans and urgent support on commercial rent debt. However, so much came so late, with businesses paying the price. Many are still excluded from the support that they need.”
“and learned Member for Edinburgh South West (Joanna Cherry), and many others. The reality is that business support from this Government has been haphazard or, for some, non-existent. One thing that business needs above all else is stability and the ability to plan ahead with confidence. That has been as absent as the Chancellor was before Christmas, with his trip abroad delaying much needed action for businesses in that period. The Government were also absent during last summer’s HGV crisis, the steel crisis, the supply chain crisis, the CO 2 crisis and the fuel crisis that saw forecourts close across the country, with small businesses reliant on their vehicle for trade unable to visit their customers. This Government had one test—were they making life easier for businesses to get through the covid crisis, or were they making life harder?”
“One thing that stands out from this debate is that British business is calling for a Government who are on its side. We have just seen the third consecutive quarter with more than 100,000 business deaths reported. From across the House, we have heard stories about struggling businesses, jobs at risk, businesses facing hardship and closure, and sectors of our economy left to fend for themselves as crises are worsened by Government inaction. I thank colleagues for speaking in this debate, including my hon. Friends the Members for Llanelli (Nia Griffith), for Halifax (Holly Lynch), for St Helens South and Whiston (Ms Rimmer), for Bradford West (Naz Shah) and for City of Durham (Mary Kelly Foy), the hon. Members for Thirsk and Malton (Kevin Hollinrake) and for Richmond Park (Sarah Olney), the hon.”
“Small and medium-sized enterprises make up a significant proportion of the UK hospitality sector, and in recent days they have seen their footfall decline by as much as 40%, with one business I know of having had 79 cancellations in three hours. This comes at a time when businesses also continue to face high energy costs, supply chain disruptions and dropping consumer confidence. If we know this, it beggars belief that it is not clear to the Government. We have been meeting hospitality businesses since last week. Why is this meeting happening only today, and are the Government going to commit to come forward with a package of support that will give confidence for Christmas and the months ahead by the end of today?”
“Further to that point of order, Madam Deputy Speaker. May I add my thanks? I particularly wanted to mention the Clerks, to whom you have referred, and the work that they know will be coming to them as a result of today’s Second Reading debate. I thank them for the support they continue to give in making sure that we can bring forward the best possible amendments to legislation. May I also thank Mr Speaker, yourself and the other Deputy Speakers, who deal with all sorts of situations in the House? Every day seems to create a new unique situation to deal with. I can see that all the tools and tricks in the box have been brought out to help manage this Chamber in the best possible way so that we can continue to have the best possible informed debate and deal with the challenges that face us.”
“It is pleasure to serve under your chairship, Mr Hosie. Subsection (3) requires an arbitrator to dismiss a reference if they find that the tenant’s business “is not viable” and “would not be viable even if the tenant were to be given relief from payment”. Will the Minister say more about what constitute viable and unviable businesses? Groups representing the hospitality sector, for example, have made it clear that the seasonal nature of their businesses should be reflected in the viability test. As well as being provided with guidance, arbitrators should also have the right level of flexibility.”
“I have a couple of questions about the clause. First, will the Minister clarify why the Government have chosen to make the repayment time under subsection (7) 24 months? Has he concluded that that will be sufficient time for businesses to repay what they owe, even if further covid restrictions are put in place? The current circumstances are a cause for concern to businesses that have seen revenues drop while costs continue. Secondly, reflecting the concerns of stakeholders including the Pubs Advisory Service, will the Minister clarify whether subsection (2) implies that the arbitrator will consider only the final proposal when making the award, or will they consider all proposals made by both parties in the round?”
“I would be grateful for the Minister’s comments on what feedback process he is expecting to see otherwise, so that we can make sure there is learning through the system and that it works effectively.”
“New clause 1 is a probing amendment. It would require the Secretary of State to conduct a review of awards to assess whether sections 15 and 16 of the Act have been interpreted consistently and to publish or amend guidance as necessary. We have heard issues raised about the interpretation of viability of businesses and making sure there is enough experience with arbitrators to ensure a consistent approach to resolving rent debt. In tabling the new clause we are seeking a review. It is helpful to know if the Secretary of State is seeking feedback on how the system is working and whether there are inconsistencies identified, which may require further guidance to be given to arbitrators about the exercise of their functions under the Bill. That is in the interest of strengthening the regime and trust in it among tenants and landlords alike.”
“On the basis that there are other mechanisms that the Minister will—I use the word will—be using to ensure that there is feedback from the system, we will not push the new clause to a vote today. However, I do think it will be important to keep this under review. I expect that on Report in the new year, when circumstances might be different, we may want to look again at some of these amendments. Question put and agreed to. Clause 15 accordingly ordered to stand part of the Bill. Clause 16 Arbitrator: assessment of “viability” and “solvency” Question proposed, That the clause stand part of the Bill.”
“Subsection (2) lists factors to which an arbitrator may have to have regard when assessing landlord solvency, so far as the information is known. Could the Minister confirm whether further details about this evidence will be released by the Government? Again, I am just asking about consistency in the arbitration process. Subsection 3 states that the arbitrator must disregard the possibility of either party borrowing money or restructuring their business. We support this measure and think it will contribute to ensuring that the arbitration process is fair. However, if would be helpful to hear some clarification on the regulations outlined in clause 16, and what further guidance will be forthcoming.”
“We recognise that both businesses and landlords will benefit from prompt solutions to rent debt. Can the Minister explain why a different time frame is appropriate for the making of the award depending on whether an oral hearing is held or not? It would also be helpful if he could explain what “as soon as reasonably practicable” means in this context. What would be a reasonable period of time for the award to be made? Stakeholders have suggested to us that under the pubs code, awards and adjudications can take up to a year to be published. Presumably the Minister can confirm that this would certainly not be reasonable. He has talked in general terms about time limits before, but given that there is no stipulated time limit under clause 17(1), what recourse would the parties have where no award is forthcoming in a timely manner?”
“We support the clause and the exclusion of confidential or personal information that may cause harm or concern. Labour believes that the arbitration process established under the Bill should be subject to appropriate transparency, with appropriate safeguards for commercially sensitive or other confidential information. The publication of awards should also support a consistent approach being taken across cases heard under the regime. Question put and agreed to. Clause 18 accordingly ordered to stand part of the Bill. Clause 19 Arbitration fees and expenses”
“I beg to move amendment 4, in clause 19, page 12, line 6, leave out “may” and insert “must”. This amendment would require the Secretary of State to make regulations specifying limits on arbitration fees.”
“For that, businesses must be able to afford to enter the process. I would be grateful if the Minister could respond to a concern raised by a stakeholder about the fees and costs that the arbitration bodies may apply. I understand that there is a £750 fee associated with a complaint under the rules of certain arbitration bodies. Would such a cost be included within the cap? I thank the Minister in advance for his response.”
“We believe the Secretary of State should make such regulations to provide a cap, which would be the effect of amendment 4. We have also tabled amendment 5, which “would require the Secretary of State to consider the accessibility and affordability of the arbitration process when specifying limits on arbitration fees.” That is to ensure that, when setting new limits, the Secretary of State explicitly takes into account how the limits will affect the ability of business tenants and landlords to enter the arbitration process. I hope the Minister recognises the importance of ensuring that arbitration is not too costly for either landlords or tenants, particularly as businesses are again seeing falls in revenues at this stage. There is a cross-party desire to tackle rent debt, but we want the arbitration process to work.”
“I am pleased to move amendment 4, which relates to limits on arbitration fees, and speak to amendment 5, which relates to the accessibility and affordability of the process. We recognise that parties have to meet their legal and other costs, but we believe that arbitration fees and expenses should be proportionate to the arrears that are the subject of the dispute, and that they should not create a significant cost for the parties. I am sure the Minister recognises the harmful effect that a high arbitration cost would have on businesses that are already struggling, and it is only those in very difficult circumstances that are going into the process in the first place. Clause 19 gives the Secretary of State the discretion to specify ceilings for arbitration fees in secondary legislation.”
“I thank the Minister for his remarks, but I do not think that they approach the heart of the debate. I would like to push amendment 4 to a vote, because this is an important issue. Question put, That the amendment be made.”
“Notwithstanding the concerns we have just raised, which we will continue to pursue, we support clause 19. Question put and agreed to. Clause 19 accordingly ordered to stand part of the Bill. Clause 20 Oral hearings Question proposed, That the clause stand part of the Bill.”
“Labour generally supports these measures, but it would be helpful to understand whether the Minister expects oral hearings to be the exception rather than the rule. As the Chartered Institute of Arbitrators made clear in evidence about the business arbitration scheme, there was an assumption against oral hearings, with a document-only approach, which keeps costs and time low and, as it would say, allows for a more efficient process. Will guidance set out when oral hearings might be necessary or appropriate? We would like to understand more about the cost of oral hearings. Can the Minister say what he might expect the cost of oral hearings to be? Would he explain what action the Government will take to ensure that all hearings are affordable?”
“I beg to move amendment 6, in clause 21, page 13, line 3, leave out “may” and insert “must”. This amendment would require the Secretary of State to publish guidance on the exercise of arbitrators’ functions and the making of references to arbitration.”
“I will speak briefly to these amendments, which relate to viability. As we have outlined several times, we are asking how arbitrators would assess viability, and what skills and experience they would have to do that. We have tabled these probing amendments to seek guidance with information on the interpretation of viability. There is benefit in having some flexibility, while still commanding the confidence of both sides, so that judgements can be made with the information available, but there is also a question of trust. We need confidence that the definition around viability will be interpreted consistently across arbitrators and arbitration bodies. Amendment 7 would reflect the concerns of stakeholders that guidance must address the meaning of viability and the timeframe over which it would be assessed.”
“I beg to ask leave to withdraw the amendment. Amendment, by leave, withdrawn. Question proposed, That the clause stand part of the Bill.”
“I thank the Minister for his remarks. That was a very helpful set of comments, in light of what he has also outlined in relation to the ongoing discussions, which we are pleased to hear of—indeed, we have had discussions as well—as that is important. Looking particularly at the pubs and hospitality sector, and other businesses with great variation in income, their repayments may need to happen over a more reasonable period of time. It is helpful to know that the Minister is considering where there may be differences between sectors, and recognises a system that takes into account the circumstances of individual businesses, because they can differ in how they are affected by slowdowns and so on. I thank the Minister for his comments. It is certainly an area that we will keep under review. We will not press our amendment to a vote today.”
“We support the clause standing part of the Bill. Question put and agreed to . Clause 21 accordingly ordered to stand part of the Bill . Clause 22 Modification of Part 1 of the Arbitration Act 1996 Question proposed, That the clause stand part of the Bill.”
“The Minister outlined the clause and how it introduces schedule 1. We support the measures and will vote for the clause and the schedule to stand part of the Bill. Question put and agreed to . Clause 22 accordingly ordered to stand part of the Bill . Schedule 1 agreed to . Clause 23 Temporary moratorium on enforcement of protected rent debts Question proposed, That the clause stand part of the Bill.”
“My hon. Friend is making a very important point: we need to make decisions on the evidence that is available. Does he agree that having the debate today and passing these measures tonight is urgent? We have heard that the doubling rate of omicron is shortening. If we are to protect the public, our families, our communities, and the NHS in the run-up to Christmas and beyond, these measures need to pass today.”
“We are speaking to our amendments today on two main strategic areas: the purpose of subsidies; and the way in which the new regime will operate. I will deal first with the purpose and the use of subsidies. Subsidies and their controls should be an integral part of a strong, long-term industrial strategy, promoting growth and supporting industry, jobs and prosperity across the country. We want to see our foundation industries such as steel supported, and we want to see a plan for how we can buy, make and sell more in Britain.”
“We had a considerable debate on that, including in respect of the CMA reporting on where it had identified non-compliance with the principles and examining the geographical spread of subsidies that had been notified to it. Labour recognises the need for this legislation, which establishes the framework for the UK’s post-Brexit subsidy control regime. It indeed allows for quicker subsidies to be granted to businesses, which we support. We recognise that a system of subsidy control is important to ensure that public funds are made available to businesses, but with appropriate safeguards in place. We departed from the Scottish National party in Committee because we also believe that the Bill is necessary to protect the UK’s internal market.”
“We are not actively supporting two amendments—we are more neutral on them: amendment 11, which has similar intentions and principles but is slightly weaker than our amendment 16 and which runs the risk of being unclear for local authorities to implement; and amendment 9, where we understand the intention to broaden what the Competition and Markets Authority reports on. However, arguably it would not have the information on all subsidies, as most would not be notified to it, so this provision could be impractical and create a significant burden. However, in Committee we also provided suggestions on how the CMA’s annual report could be strengthened and what areas it could report on.”
“I refer in particular to amendments 1 to 8, which were tabled by the hon. Members for Weston-super-Mare and for Thirsk and Malton, and amendments 10 and 12, which were tabled by the hon. Member for Aberdeen North. There are only slight differences from our position in Committee, and I am sure that today’s debate will also help consideration of the Bill in the other place. Amendments 13 and 14 are similar to amendments 2 and 7, and are consistent with our significant concerns on transparency and accountability, which we raised in Committee. New clause 2, tabled by the hon. Member for Richmond Park (Sarah Olney), is also consistent with the position on net zero leadership that we set out on Second Reading and in Committee.”
“I hear the concerns raised by the hon. Members for Aberdeen North and for Edinburgh North and Leith (Deidre Brock), and the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts), because they are important, particularly in relation to legacy subsidies in agriculture, as well as future subsidies. The Minister will need to make sure that he can respond clearly to the concerns that have been raised, and we will certainly be listening closely on that. It is a pleasure to speak to our amendments—new clause 3, on post-award referrals, and amendments 15 to 27. I will also speak in support of similar and, in some cases, identical amendments to those tabled by Labour in Committee, which I was pleased to see have been influential in colleagues’ consideration of the Bill.”
“It is a pleasure to follow some powerful speeches on Report tonight. I share the frustration of the hon. Member for Aberdeen North (Kirsty Blackman) that we could well have moved forward with some of the issues we debated in Committee with some amendments brought forward by the Government. Some of the robust debate we had in Committee led to looking at how we could address those issues more quickly. I acknowledge the contributions from the hon. Members for Weston-super-Mare (John Penrose) and for Thirsk and Malton (Kevin Hollinrake). I will be talking about their amendments later in my speech, but we have discussed at length transparency and the ways in which we need to reform this regime in order for it to be the most effective it can be. I wish to make a brief remark about new clause 1 before carrying on further.”
“I thank my hon. Friend for his contributions in Committee and for that very important point, which I will come on to. We know that the assisted areas map is not part of the UK’s regime, but there has to be a way to deal with the principle of that, which is how to ensure resources are targeted to the areas where they are most needed.”
“On improving the way the new regime will operate, there is a serious lack of transparency in the Bill on how public money is spent and how value for money can be assessed.”
“I do not think it is about our picking losers or winners at all. This is about our using the data, understanding where there are areas of greatest need and having that as part of a data-led levelling-up agenda. Given that the Government have created a specific Department for levelling up, Labour is surprised that that mandate is not clear and that the hon. Gentleman does not have the answers he needs to have a framework that gives confidence that we are applying resources to areas of greatest need. To be frank, the Government’s record on that is not very strong. The Bill should be explicit that supporting areas of deprivation should fall squarely within the subsidy control principles.”
“The harm of extending the call-in power to the devolved nations is not clear to us. Why is the Secretary of State empowered to call in Scottish, Welsh and Northern Irish subsidies that may damage economic interests in England but the Scottish, Welsh and Northern Irish leaders cannot call in subsidies that they believe can cause economic harm in their nations?”
“Their presence is important because we need a system that commands the confidence of all four nations. The devolved Administrations should be given a genuine voice in developing and implementing the new regime. The Minister’s response in Committee to our concerns and those of the devolved Administrations was that he had had a number of meetings with the devolved Administrations and would keep talking to them. I would be grateful if he could provide an update on those discussions. Amendments 23 to 25 would provide Scottish, Welsh and Northern Irish Ministers with the power to call in subsidies or schemes under clause 55. Currently, only the Secretary of State has the power to issue a call-in direction, triggering a report to the CMA. On that basis, the CMA’s reports are not binding on a public authority.”
“If the database is not subject to any oversight or control, and if inaccurate or incomplete information entered on to it is not checked, poor-quality information is likely to lead to misguided legal challenges or to harmful subsidies failing to be addressed. We want to be constructive on this point, which is why the amendment is drafted in a way that permits the Secretary of State to decide who should undertake the audits and how they can be done most effectively. On devolution, this is not a fair four-nations Bill. As it stands, regulations and guidance can be developed without seeking the consent of the devolved Administrations; only the Secretary of State can call for subsidies to be assessed by the CMA; and there are no requirements for the devolved Administrations to be represented on the CMA’s new subsidy advice unit.”