Robert Jenrick
MP for Newark · Reform UK · United Kingdom
“Robert Steele was a beautiful four-year-old boy who died three weeks ago in Newark when he was thrown from an off-road bike that was being driven by a 24-year-old man. This is the culmination of a number of incidents in my town, and many others across the country, involving off-road bikes, e-bikes and e-scooters.”
“The Minister said that Governments are elected to lead. Most people would assume that means that Ministers are elected to lead, because they are accountable to Parliament and to the people.”
“There is an air of total unreality hanging over this debate. Successive Governments have run down our Royal Navy to its present enfeebled state, they have conspired to surrender other British sovereign territory and we have a Government who procrastinate about signing off a new oil field in the North sea—let alone about one in the south A…”
“I welcome the right hon. Gentleman to his position. I have known him for a long time—I wish him well. He has a huge task ahead of him. Earlier in the summer, the Prime Minister said that walking the streets of Makerfield lodged in his mind that so many working people want to see the personal allowance raised.”
“Imagine that you are a worker at JLR worried about your future, and you have the misfortune of watching the Chancellor’s speech, which contains searing economic insights like, “I want to see businesses make a profit.” There was nothing about scrapping electric vehicle mandates, bringing down energy costs by getting rid of net zero targets…”
“The sight of the Government escorting illegal migrants into Portsmouth harbour, the home of the Royal Navy, was a national humiliation. Sometimes I wonder whether Members of this House have no appreciation of the level of anger there is in the country at the rapes, the murders and the billions being wasted that should be being spent on th…”
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“In recent years we have tried to minimise the impact of APD on hard-working families to ensure that those who can afford to pay more do so. Last year we announced that rates will stay frozen for the sixth year in a row for the 80% of passengers who fly short-haul. That will help to keep down the cost of holidays for the vast majority of travellers, including those who travel throughout the United Kingdom for business or other reasons. We have exempted children from APD, which could save a family of four £26 on a short-haul flight and £156 on long-haul flights. Together those actions reduced the burden of APD by about £300 million pounds in the last financial year alone.”
“It would be foolish of the Treasury not to take that seriously and to proceed without great caution. That is why we are proceeding with the introduction of a call for evidence, which I will discuss in a moment. We appreciate the arguments that were made eloquently by the hon. Member for Belfast East—those points were also made by Democratic Unionist Members who spoke after him and by many other Members across the House, including those from the north-east, the west country, Wales and Scotland. We are alive to those concerns and I hope I can provide further detail about the steps that we are taking. We are conscious that APD is often passed on to passengers as part of their ticket fares. This is not a tax on passengers—it is a tax on airlines—but in many cases it feeds through to the cost of tickets.”
“The Treasury wants to ensure that we meet our commitments to public services and to continue to address the deficit and the debt. We also want to pursue policies that will increase economic growth, in which tax has a role. As the hon. Member for Oxford East (Anneliese Dodds) said, in line with our international treaty commitments, we do not tax commercial aviation fuel and no VAT is charged on airline tickets. It is important that that part of the economy plays its part in funding public services, which was why the Government introduced air passenger duty in 1994. Without that duty, commercial aviation would be relatively undertaxed compared with other industries. Air passenger duty raises around £3.2 billion a year, which is a significant amount of money.”
“We have the third largest aviation network in the world, and since 2010 passenger numbers at UK airports have grown by more than 20%. That strength extends across the entire UK, not just at major airports such as Heathrow. Regional airports are growing and handled approximately 113 million passengers last year. There is good news across the sector. Regional airports have been the basis of this debate. They make a valuable contribution to the growth of local economies and support connectivity across the UK. We appreciate that and want it to continue. We must also appreciate that aviation plays its part—like all industries—in contributing to the Exchequer. We heard various epithets about looking after pennies and not being penny-wiser and pound-poorer, and we appreciate that.”
“There is significant agreement across the House that we view the UK aviation sector as extremely important to our quality of life and for creating jobs, and particularly for connectivity within our United Kingdom and beyond. There is no more important time for us to consider both how we can bring the United Kingdom closer together, and how we can make ourselves more open to the outside world. This is therefore a timely debate. Let me say a few words about APD and aviation in general, and then I will turn to Northern Ireland and try to answer, assuming time allows, many of the reasonable and important points raised. If I cannot do so, I will write to the relevant Members. The UK aviation sector is a strong performer and we are a world leader in that industry.”
“I congratulate the hon. Member for Belfast East (Gavin Robinson) on securing this debate. I have known him since he and I were elected and have always been fond of him, but I was not expecting a belated Valentine’s day present. I vaguely remember that some time ago the hon. Members for Strangford (Jim Shannon) and for East Londonderry (Mr Campbell) presented a giant heart-shaped card to No. 11. I wonder whether the Chancellor’s predecessor regrets not taking the advice on it. Flattery will get you everywhere at the Treasury, so I am grateful for that. We have had a productive debate and it has been interesting to hear from all sides.”
“Under this Government, investment in infrastructure will reach the highest sustained levels since the 1970s. In respect of Oxfordshire, the Department for Transport and Chiltern Railways have jointly funded a £400 million western section, delivering a new service between Oxford and London Marylebone, and we are of course backing the new Expressway and the east-west railway linking Oxford to Cambridge.”
“I appreciate that my hon. Friend has been campaigning for such things since before his election. We have provided £35 million for the Oxford Science Transit scheme, which will enhance the A40 between Oxford and Witney. As for the A40 more generally, the Government are providing £150 million through the Oxfordshire housing deal, which he could tap into to see further improvements on that road.”
“The Government are investing in the infrastructure of the south-west. We are investing £2 billion in the strategic road network, including to transform the A303/A30/A358 into an expressway. We are delivering £146 million of investment in Cornish rail and, thanks to my hon. Friend’s efforts, we are investing £79 million in the A30 to St Austell link road.”
“We are investing significant funds, including £92 million to tackle congestion in the south-west and a portion of a £200 million fund for full fibre, and we are providing £40 million for small and medium-sized enterprises through the British Business Bank, which will go to Cornish small businesses.”
“The automotive sector is an extremely valuable part of the UK economy and we have worked very closely with it in recent years. We have established the first automotive sector deal, and we have backed research and development projects, such as the advanced propulsion centre, with £300 million of investment. Through the future of mobility grand challenge and a succession of Budget measures, we are supporting the development of and transition to low emission and autonomous vehicles.”
“As I have just described, the automotive sector is extremely important, and few of its businesses are more important than Jaguar Land Rover, which I appreciate is close to the hon. Gentleman’s constituency. Car sales in 2017 were actually 25% higher than in 2010 and the UK remains the second biggest car market in Europe after Germany, so there is a great deal to celebrate in the UK automotive sector, and we will continue to support it.”
“We are working closely with the automotive sector, and the Treasury and other Departments have met its representatives on a number of occasions. The Prime Minister has made it clear that our intention throughout the current negotiations is to ensure that EU-UK trade is as frictionless as possible. We will continue to work with the automotive sector to ensure that we deliver a good Brexit deal for it.”
“Fly-tipping and illegal waste sites are a blight in many parts of the country. The Chancellor announced additional funding in the Budget for enforcement activities. The Environment Secretary recently announced a review of waste crime, and we will follow the results of that closely.”
“My hon. Friend is absolutely right. That is why we have created the £4 billion housing infrastructure fund—it is exactly to deal with this problem—and a £600 billion pipeline of new infrastructure projects. He and I have already met to discuss the issues in his constituency, and we will be taking that forward.”
“One would have to question whether individuals should take out such loans. It is worth pointing out that the number of logbook loans has fallen substantially in recent years. They now make up a very small percentage of the wider high-cost credit market. The total value of outstanding logbook loan debt was less than £100 million in 2016, compared with £2.7 billion of debt from payday loans, doorstep lending, and rent-to-own.”
“I am grateful to the hon. Member for Makerfield (Yvonne Fovargue) for raising this issue and for the leadership she has shown on it. She has been following it for some time. The constituents and cases that she has raised are very serious. I am grateful for her involvement in the matter. Like the hon. Lady, we believe that consumer credit plays an important role in society. It helps individuals spread income and costs over time and cope with unexpected financial shocks. However, it is vital that consumers are treated fairly and that we ensure that their interests are protected, particularly in the case of high-cost products, of which logbook loans are an important example. The hon. Lady set out a number of instances where the costs incurred in some logbook loans are egregious.”
“The Government believe that at the moment that is a more proportionate approach, given the declining numbers in the logbook loan market and the concerns that were raised in the consultation about the Bill as currently drafted.”
“The Government are determined to ensure that any legislative changes lead to better outcomes for consumers and do not have unintended consequences. Having given careful thought to the concerns raised in the consultation, we decided that it was not the right moment to take forward the Bill as currently constituted, and that we wanted to give the matter further consideration. In the light of that decision, the Financial Conduct Authority has decided to look more closely at the logbook loan market, and we welcome that. The FCA will use its supervisory and policy tools to assess whether further action is required, including new rules that are necessary to protect consumers. The hon. Lady has already set out examples of some of the actions that the FCA could choose to consider, at its discretion.”
“Consultees suggested that the draft Bill did not do enough to provide clarity for courts, and expressed concern about its requirement for consumers to opt in to the court process, rather than its being the default. Some consultees also said there needed to be more clarity about the circumstances in which a lender could repossess a secured good without requiring a court order—an important issue, to which the hon. Lady alluded. Other consultees highlighted the risk of borrowers exploiting the protections in the draft Bill for fraudulent purposes. In addition, a number of consultees argued that the draft Bill could encourage lending to vulnerable consumers by making it easier for consumers to grant security over their goods. Access to credit is obviously an important issue to Members on both sides of the House.”
“Separately, in September 2017, the Government, again showing our good faith and desire to progress the matter, consulted on the aims of the Bill and published the consultation response in May 2018. Although the consultation responses undoubtedly showed a degree of concern about the logbook loan market and broad support for the proposed approach set out in the draft Bill, many stakeholders raised significant concerns, which I will discuss in a moment. Overall, there was less agreement on the detail of the draft Bill than we would normally expect following the Law Commission process, and less than we would wish to see before being ready to proceed with it. Let me set out a few of the concerns from different stakeholders.”
“As the hon. Lady set out, those Acts hark back to a long-distant era. There were concerns over stories of consumer exploitation and high levels of interest, and she has given further examples. Those stories include vehicles being seized too readily on default and unwitting third parties buying a vehicle subject to a logbook loan. All of those things are cause for concern. The Law Commission concluded that the Bills of Sale Acts were out of date and recommended that they should be replaced with a new Goods Mortgages Bill. The Government were sympathetic and agreed that the Law Commission should prepare a draft Bill, which it did, consulting on the draft clauses in the summer of 2017.”
“I hope I can give some explanation over the course of my remarks as to why we have chosen not to proceed with the Bill at the moment. My opening remarks that the market has shrunk considerably is not to diminish the concerns that the hon. Lady has raised about some of those logbook loans. It is important context to the debate, though, that the market appears to be shrinking, at least for the moment. The number of bills of sale registered at the High Court has fallen from 52,000 in 2014 to around 35,000 in 2016. That compares with 760,000 people taking out a total of 3.6 million payday loans in 2015 alone. Logbook loans remain an important, if small, part of the loan market and are worthy of attention. In September 2014, the Government asked the Law Commission to examine the Bills of Sale Acts—the legislation that underpins logbook loans.”
“We want to continue to look for measures to protect the public and to improve financial literacy and awareness. I know that the hon. Lady is disappointed by the Government’s decision at this stage. I reassure her that the decision was not taken due to pressures on parliamentary time, although that is always a consideration when introducing legislation. The Government’s primary objective is to ensure that, if we legislate, we do so correctly, and bring in interventions that will protect consumers without unintended consequences. That is why we decided, following the consultation, that the Bill was not yet in the right place. Question put and agreed to.”
“We will continue to work closely with the FCA as it undertakes its review of, more generally, the high-cost credit market and, in particular, the logbook loan market. We will consider whether the Government should take any further action in the light of its findings. This is not the end of the story. We want to give the matter a great deal more thought. Alongside that, the Government are taking further action to protect borrowers. We are supporting families to build their financial literacy through the Money Advice Service, and £27 million is provided every year through MAS to co-ordinate financial education in schools and to improve the public’s financial capability. A further £49 million was spent in the previous financial year on providing more than 440,000 free-to-client debt advice sessions across the country.”
“That is one of the matters to which the FCA will need to give careful consideration. We hope that it will take that forward. It is also considering, as the hon. Lady suggested, a number of measures with respect to the high-cost credit market. It published an update on 31 May announcing a package of initial measures to tackle problems in the high-cost credit market, including a proposal to cap the cost of rent- to-own. Those measures show the seriousness with which the FCA is taking the wider issue, and I hope that it will give this issue the consideration that it deserves. The hon. Lady has raised one of a range of issues to which the FCA will need to give careful thought. This is an example of the FCA using the powers that it has been given by the Government to protect consumers.”
“The vast majority of PFI projects—86%—were signed off under the last Labour Government. Since 2010, we have reformed the approach so that PF2—private finance 2—contracts, in the selective circumstances in which they are used, now deliver better value for money for the taxpayer, so far delivering over £2 billion of savings.”
“Under the last Labour Government, the average number of PFI contracts signed per year was 55. In the last two years, the Treasury has signed off none. We will use this approach selectively when it delivers a genuine transfer of risk and provides value for money for the taxpayer, not as the last Labour Government did.”
“My hon. Friend highlights the cost and legacy of the PFI projects signed off under the last Labour Government. Hon. Members can be assured that we will use this approach wisely and selectively, in particular for the most complex infrastructure projects requiring a transfer of risk and the expertise of the private sector.”
“I think that the hon. Lady is having amnesia. These contracts—86% of the contracts and 91% by value—were signed under the last Labour Government. In respect of some of the items that she mentioned, such as cleaning and security services, we have reformed PFI contracts under PF2 so that those items are not included in the standard contract.”
“My hon. Friend is absolutely right. The initial intention of PFI was to transfer risk, when appropriate, to the private sector, and to drive up innovation and quality in a very small number of selective cases. That was perverted under the last Labour Government by Gordon Brown.”
“As I have indicated, this Government’s approach to PFI is entirely different from that of the last Labour Government. The hon. Lady says that she has learnt the lessons. Well, it is a pity for the taxpayer, and for our children and grandchildren, that they were learnt so late.”
“The Budget showed our determination to improve productivity, increasing the national productivity investment fund by £8 billion to £31 billion. With substantial investment in the regions of the UK, such as the £1.7 billion transforming cities fund, we want to help all parts of the country achieve their potential.”
“I entirely agree with my hon. Friend. Raising productivity is the only sustainable way to grow the economy, boost wages and improve living standards, which is why we have given it such a clear and determined focus. With respect to Aberdeenshire, the North sea oil and gas industry is one of those sectors that have seen the greatest productivity increases in recent years. We will continue to support that with a highly competitive tax rate.”
“It was of course this Government who one year ago created the Mayors across the UK, including in Greater Manchester, and several of them, including Andy Street, have had a great impact on their local economies. I have had conversations with the leader of the Cheshire and Warrington local enterprise partnership and the Minister responsible at the Ministry of Housing, Communities and Local Government to take such matters forward.”
“My right hon. Friend is absolutely right. It is only with sound management of the public finances that we can continue to invest in the skills required to grow productivity, and that is exactly what we are doing with increasing investment in apprenticeships, through the apprenticeship levy, and with the T-levels, which will be largest change to our secondary education system since the introduction of A-levels and which we will be seeing in the coming years.”
“We have had numerous conversations with local partners in north Wales, and with the Welsh Government. I urge the hon. Gentleman to take the message to the Welsh Government, but they also need to engage with the UK Government to secure that important deal, which, as he says, will link the economy of north Wales with the north-west and the northern powerhouse to drive productivity.”
“My hon. Friend is absolutely right. When we reduce the tax to 17%, we will see those productivity gains increase—and, contrary to what the Opposition have claimed, revenues have increased.”
“The Infrastructure and Projects Authority, which has conducted the most rigorous analysis of Government spending on infrastructure, has made clear that the north of England will receive more funds from the present Government than any other region in the United Kingdom, including London and the south-east.”
“Sadly, it is a rare day on which a Treasury call for evidence on tax stirs the enthusiasm of the general public, but this one has. We received a record 130,000 submissions from throughout the country. We are determined to take the issue seriously and to tackle the scourge of single-use plastics. The Chancellor has been clear that we want to do so in a way that both tackles the environmental issues and drives innovation to support the jobs of the future.”
“We are already engaging with that important initiative. We continue to support the Mayor of the West of England in Bristol, and we are investing over £600 million through the Swansea and Cardiff city deals.”
“I am happy to meet him to discuss these issues at a later date. We have increased our capacity in road fuel testing units, and have provided extra resource for fuel fraud investigations across the United Kingdom, particularly in Northern Ireland. I would be happy to supply further information from HMRC regarding the quantity and where the units are being deployed. I have asked HMRC officials to supply us with better data on the numbers and on the locations at which roadside testing is happening in Northern Ireland. Tests are completed throughout the supply chain. The number of tests at suppliers’ premises in Northern Ireland has increased over the course of the last two financial years.”
“Custodial sentences for fuel laundering were handed down in 2016 following a successful HMRC investigation into a £2.6 million fuel laundering scheme. However, the scarcity of custodial sentences for what is clearly a serious crime is noticeable and disappointing. My hon. Friend was right to raise that matter today. Right hon. and hon. Members from Northern Ireland know that justice and policing are devolved matters, but I will give further consideration to this issue and I am happy to engage with them on how we might move forward. I am informed that sentences for this crime in Northern Ireland are, taken together, more lenient than those in England and Wales. We should all give that further consideration. My hon. Friend mentioned points raised by the Road Haulage Association.”
“HMRC investigates all attempts to remove Accutrace. To date, HMRC advises that there is nothing to suggest that rebated fuel can successfully be laundered to remove the marker in a way that is not detectable to HMRC. Although all markers have theoretical vulnerabilities and there is no perfect marker on the market, this new marker cannot be removed profitably at any scale. It remains HMRC’s view that the marker has been, and continues to be, effective in driving down fuel fraud. Clearly, I am interested in hearing further evidence from my hon. Friend if he wishes to engage with this. Where HMRC has detected laundering plants, these have not been capable of successfully laundering the new marker. My hon. Friend raised the question of custodial sentences.”
“That should complement HMRC’s fleet of road fuel testing vehicles, all of which are equipped with gas analysers that all officers have been fully trained to use. In 2016-17 alone, HMRC took 45,000 samples in the UK, so the problem is being addressed seriously at quite a scale across the UK. Multi-agency, cross-border co-operation is clearly essential, and HMRC chairs a quarterly multi-agency cross-border fuel fraud group to share intelligence and information on operational activity, as well as co-ordinating joint operations. I have reiterated the importance of that with the Minister of State for Security and Economic Crime in advance of this debate. HMRC’s testing capability can now identify markers down to parts per million, including the new Accutrace marker that has been introduced on both sides of the border.”
“As outlined in HMRC’s evaluation of Accutrace, the new marker has led to a reduction in the number and size of fuel laundering plans discovered by HMRC, although there has been a modest uptick over the past year. That apparent success reflects our commitment to tackle fuel fraud, as evidenced by the reinvestment of over £1 billion in HMRC’s fight against evasion and fraud over the spending review period. To continue that work, the Government announced the expansion of road fuel testing unit capacity in Northern Ireland in particular, but also in mainland Great Britain, in addition to the extra resource for fuel fraud work within HMRC’s criminal investigation directorate that was announced in the autumn statement 2013.”
“In Northern Ireland, where the issue is a particular problem, the illicit market share has, according to HMRC, fallen from 26% to 8% over the same period. None the less, there is no room for complacency. Indeed, there has been a modest increase in laundering plant detections over the past year, which should give us all cause for concern. The new fuel marker that was brought in together with the Republic of Ireland in April 2015 to tackle the problem of fuel laundering is part of the significant investment made by HMRC to ensure that all businesses and individuals contribute to the tax revenues that are required to fund our public services. I appreciate that my hon. Friend has in the past raised objections to Accutrace, but I will return to those shortly.”
“As with any form of fraud, fuel fraud is a serious concern, and we recognise that it can be linked to organised crime, serious organised crime and, as my hon. Friend argued, the financing of paramilitary activity. That is a concern across the United Kingdom and, quite obviously, a particular concern in Northern Ireland. For all those reasons and those set out by my hon. Friend, the Government are and must be committed to tackling the issue and to giving it the due consideration that it deserves. HMRC’s strategy to tackle fuel duty fraud has seen the UK’s tax gap for fuels in general fall from £1.5 billion in 2002 to less than £100 million in 2015-16, but £100 million remains a significant sum of money, as we have heard.”
“It is the fifth largest source of tax revenue to the Exchequer, behind only income tax, national insurance contributions, VAT and corporation tax, so, as my hon. Friend rightly suggested, this matters. Fuel fraud is not a victimless crime. It deprives the Exchequer of funds that pay for public services, and fuel laundering—the removal of chemical dyes and covert markers from rebated fuel to give the appearance of legitimate road fuel—poses a range of further risks to the public. Criminals experimenting with the process to defeat the new marker can create, as we have seen, a high risk of explosion, fire and potential risk to life. Laundering plants also produce toxic waste, which causes environmental damage. Finally, as we have also seen, illicit fuel is often transported in vehicles that are unfit for purpose and unsafe.”
“I thank my hon. Friend the Member for North Antrim (Ian Paisley) for raising an important issue, which I know that he, his constituents, and the effective quartet of Members from Northern Ireland who are here this evening— [Interruption.] Quintet, I do apologise. Who could forget? I know that this is an issue that many people feel strongly about. I know that the Chancellor of the Exchequer will be delighted to hear that the Democratic Unionist party now wants to be cost neutral, and I will make sure that that is taken into consideration in future conversations. Fuel duty makes an important contribution to the public finances. In 2016-17, it generated £28 billion, or nearly 5% of total tax revenue.”